<PAGE>
================================
Semiannual Report March 31, 1999
================================
OPPENHEIMER
Global Fund
[GRAPHIC]
[LOGO]
OppenheimerFunds(R)
THE RIGHT WAY TO INVEST
<PAGE>
Contents
3 President's Letter
4 An Interview with Your Fund's Manager
11 Financial Statements
33 Officers and Trustees
36 Information and Services
Report highlights
- --------------------------------------------------------------------------------
o Two of the driving forces behind the world's stock markets over the past
six months were corporate restructuring and the development of new
technologies.
o We took advantage of opportunities to acquire growth companies at prices we
regarded as attractive within our four primary investment themes: Mass
Affluence, New Technologies, Restructuring, and Aging.
<TABLE>
<CAPTION>
Cumulative Total Returns
For the 6-Month Period
Ended 3/31/99
Class A
Without With
Sales Chg.(1) Sales Chg.(2)
- --------------------------------
<S> <C>
25.02% 17.84%
- --------------------------------
<CAPTION>
Class B
Without With
Sales Chg.(1) Sales Chg.(2)
- --------------------------------
<S> <C>
24.56% 19.56%
- --------------------------------
<CAPTION>
Class C
Without With
Sales Chg.(1) Sales Chg.(2)
- --------------------------------
<S> <C>
24.53% 23.53%
- --------------------------------
<CAPTION>
For the Period from
11/17/98 to 3/31/99
Class Y
Without With
Sales Chg.(1) Sales Chg.(2)
- --------------------------------
<S> <C>
13.28% 13.28%
- --------------------------------
</TABLE>
Total returns include changes in share price and reinvestment of
dividends and capital gains distributions in a hypothetical investment for the
periods shown. Cumulative total returns are not annualized. In reviewing
performance and rankings, please remember that past performance does not
guarantee future results. Investment return and principal value of an investment
in the Fund will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than the original cost. Because the stock market can be
volatile, the Fund's performance may be subject to substantial short-term
changes. For updates on the Fund's performance, please contact your financial
advisor, call us at 1-800-525-7048 or visit our website,
www.oppenheimerfunds.com.
(1.) Includes changes in net asset value per share without deducting any sales
charges.
(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%. Class B and
C shares are subject to an annual 0.75% asset-based sales charge. Class Y shares
were first publicly offered on 11/17/98 and are available only to certain
institutional investors under special agreement with the Distributor. An
explanation of the different performance calculations is in the Fund's
prospectus.
2 Oppenheimer Global Fund
<PAGE>
[PHOTO]
Bridget A. Macaskill
President
Oppenheimer
Global Fund
Dear shareholder,
- --------------------------------------------------------------------------------
The strength of the U.S. economy continues to surprise and concern many
analysts. At a time when the majority of the world's economies are beleaguered
by financial strain, the U.S. economy has been growing at a remarkable rate.
With respect to the U.S. bond market, stronger than expected economic
growth has triggered concerns that the Federal Reserve may raise key interest
rates to forestall an acceleration of inflation. As a result, yields of longer
term taxable bonds have risen from their October 1998 lows, when investors had
bid up prices during the global "flight to quality." At the same time,
tax-exempt bond prices and yields have remained relatively stable.
In the U.S. stock market, it might appear at first glance that prices are
rising as rapidly as the economy is growing. However, a closer look reveals
that, with the exception of large-cap growth companies and the technology
industry, most stock prices remained relatively flat through March 31. What's
more, the disparity in valuations between large companies, which have led the
market's advance, and smaller ones, which have lagged, has become historically
wide.
What do these observations mean for your investments? In our view, actively
managed portfolios that are closely monitored by expert money managers may
provide better returns than passive index investing in 1999. That's because
selectivity is expected to be more critical to performance than it has been over
the past few years. In a potentially overvalued stock market and rising
interest-rate environment, the ability to identify the most promising securities
could become paramount.
Even though many equity investors may be tempted to focus their portfolio
on the technology sector, we suggest a more prudent course: broad
diversification beyond any single asset class, industry, capitalization range or
geographic region. We believe that the risks of this investment environment
require consideration of a broad range of investments and markets, including
bonds. That way, if one market experiences setbacks, one or more of the others
may help cushion the effects on your overall portfolio.
No matter what the financial markets have in store, we resolve to continue
working with your financial advisor to keep you apprised of potential risks and
opportunities. Providing you with the market information, professionally managed
investments and other resources you need to achieve your financial goals is an
important part of our enduring commitment to you as The Right Way to Invest.
Sincerely,
/s/ Bridget A. Macaskill
Bridget A. Macaskill
April 22, 1999
3 Oppenheimer Global Fund
<PAGE>
"...we continue to find attractive prices in many fundamentally strong mid- to
large-cap companies."
An interview with your Fund's manager
- --------------------------------------------------------------------------------
How did Oppenheimer Global Fund perform during the six-month period that ended
March 31, 1999?
We were pleased with the Fund's performance for the six-month period that ended
March 31, 1999. We attribute our relatively good performance to our stock
selection strategy, which was rewarded with gains in several large stock
positions in the United States and the United Kingdom.
How have the world's economies performed over the past six months?
The world's economies continued to behave disparately, showing growth in the
developed regions of Europe and North America and weakness in Japan and the
emerging nations of Asia and Latin America. In the United States, economic
growth has remained above many economists' expectations because high domestic
consumer spending continues to offset declining exports. Europe's economy has
slowed in the wake of the euro currency's launch, but growth remains positive.
While recessionary conditions persist in Japan, a few companies are
beginning to recognize the need for major corporate overhaul. Latin America's
economy is slowing sharply after the devaluation of Brazil's currency, and,
although the worst appears to be over, Asia (excluding Japan) remains in the
recession caused by last year's financial crisis.
4 Oppenheimer Global Fund
<PAGE>
[PHOTO]
Portfolio Management Team (l to r)
Frank Jennings
William Wilby
(Portfolio Manager)
George Evans
Where did you find the most compelling investment opportunities?
We have become increasingly enthusiastic about opportunities in Europe. A
restructuring boom is being driven by a pan-European business mentality in the
wake of the euro's introduction. In addition, Europe is ahead of the U.S. in the
implementation of digital TV, and therefore, we have focused on European media
companies that we believe are leading this revolution. Media companies in the
portfolio include a French pay-TV company.
In addition, we have found attractive opportunities in the European auto
industry, which has undergone a wave of restructuring resulting in reduced costs
and consolidated production facilities. Companies such as Germany's Porsche AG
and Volkswagen AG are selling at low prices relative to expected earnings.
However, please note that foreign investing entails higher expenses and
risks, such as foreign currency fluctuations, economic and political
instability, and differences in accounting standards.
5 Oppenheimer Global Fund
<PAGE>
An interview with your Fund's manager
- --------------------------------------------------------------------------------
What is your view on Japan's stock market?
We continue to seek opportunities in the Japanese market that satisfy our
investment criteria. After a recent trip to Japan, we purchased shares in
Japan's dominant international telecom carrier as well as a pharmaceutical
company. The telecom company appears to be attractively valued, and we expect
earnings to rise as Internet traffic increases.
What stocks contributed most to the Fund's performance?
Performance was helped by several large stock positions. Telecommunications
company QUALCOMM, Inc. was by far the best performer, benefiting from the U.S.
market's rally in technology-related stocks over the past six months. Computer
giant Sun Microsystems, Inc. also participated in the U.S. technology rally
while stocks in the consumer electronic retail area such as Circuit City Stores
helped the Fund's performance.
Were any investments disappointing over the past six months?
The Fund's portfolio contained a handful of disappointments, many of which were
German companies. Germany's stock market declined nearly 10% during the first
quarter of 1999, and this negatively affected the Fund's performance due to its
positions in Volkswagen AG, consumer goods manufacturer Wella AG, and Fresenius
AG.
6 Oppenheimer Global Fund
<PAGE>
What is your outlook for the future?
Despite the extreme valuations in many areas of the market, we continue to find
attractive prices in many mid- to large-cap stocks, and we are quite happy to
purchase or add to existing positions. Going forward, we intend to continue to
look for out-of-favor growth stocks within our four primary investment themes:
Mass Affluence. The spread of capitalism worldwide is expected to drive global
demand for consumer products and financial services.
New Technologies. Rapid technological advances have revolutionized business
communications, product distribution, healthcare and food production worldwide.
Restructuring. By streamlining operations, reducing costs and enhancing
profitability, certain companies are striving to become more competitive.
Aging. Changing demographics are expected to spur demand for products and
services designed for an aging population.
7 Oppenheimer Global Fund
<PAGE>
<TABLE>
<CAPTION>
Avg Annual Total Returns
For the Periods Ended 3/31/99(1)
Class A
1 year 5 year 10 year
- ------------------------------
<S> <C> <C>
- -0.93% 12.84% 12.97%
- ------------------------------
<CAPTION>
Class B
Since
1 year 5 year Inception
- ------------------------------
<S> <C> <C>
- -0.49% 13.00% 14.79%
- ------------------------------
<CAPTION>
Class C
Since
1 year 5 year Inception
- ------------------------------
<S> <C> <C>
3.36% N/A 15.38%
- ------------------------------
<CAPTION>
Cumulative Total Return
For the Period from
11/17/98 to 3/31/99(1)
Since
Inception
- ------------------------------
<S> <C>
Class Y 13.28%
- ------------------------------
</TABLE>
An interview with your Fund's manager
- --------------------------------------------------------------------------------
We also remain optimistic regarding Europe, where we believe growth will
continue to be driven by productivity improvements. We are also cautiously
optimistic that Japan may finally be coming to terms with the financial problems
that caused their prolonged recession. In the emerging markets, we believe that
Latin America still offers some attractive investment opportunities. We consider
the recent currency devaluation in Brazil to be only a short-term setback that
should not compromise the positive long-term outlook. In our opinion, Chile and
Argentina may also present opportunities if interest rates there fall.
(1.) Total returns include changes in share price and reinvestment of dividends
and capital gains distributions in a hypothetical investment for the periods
shown. Class A returns include the current maximum initial sales charge of
5.75%. Class A shares were first publicly offered on 12/22/69. The Fund's
maximum sales charge for Class A shares was higher prior to 4/1/91, so actual
performance may have been lower. Class B returns include the applicable
contingent deferred sales charge of 5% (1-year) and 1% (since inception on
8/17/93). Class C returns for the one-year result include the contingent
deferred sales charge of 1%. Class C shares have an inception date of 10/2/95.
Class Y shares were first publicly offered on 11/17/98 and are available only to
certain institutional investors under special agreement with the Distributor. 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.) Portfolio is subject to change. Percentages are as of March 31, 1999, and
are based on total market value of investments.
8 Oppenheimer Global Fund
<PAGE>
Regional Allocation
Percentage of invested assets(2)
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
<TABLE>
<S> <C>
o Europe 47.4%
o United States/
Canada 38.8
o Asia 8.0
o Latin America 4.2
o Emerging Europe 1.5
o Middle East/Africa 0.1
</TABLE>
Regardless of where we find tomorrow's growth opportunities, we intend to
continue to focus on the analysis of individual companies. Our longstanding
approach is to identify the stocks of growing companies that are in sound
businesses selling at attractive prices. In our view, adhering to this
long-term, disciplined approach is an important part of being The Right Way to
Invest.
<TABLE>
<CAPTION>
Top 10 Country Holdings(2)
- --------------------------------------------------
<S> <C>
United States 38.1%
- --------------------------------------------------
Great Britain 13.9
- --------------------------------------------------
Germany 11.5
- --------------------------------------------------
France 9.2
- --------------------------------------------------
Italy 4.9
- --------------------------------------------------
Japan 4.4
- --------------------------------------------------
Switzerland 3.7
- --------------------------------------------------
Netherlands 1.8
- --------------------------------------------------
Argentina 1.5
- --------------------------------------------------
Singapore 1.4
- --------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Top 10 Stock Holdings(2)
- --------------------------------------------------
<S> <C>
QUALCOMM, Inc. 4.4%
- --------------------------------------------------
Canal Plus 3.8
- --------------------------------------------------
Porsche AG 3.6
- --------------------------------------------------
Sun Microsystems, Inc. 2.7
- --------------------------------------------------
MCI WorldCom, Inc. 2.5
- --------------------------------------------------
Volkswagen AG 2.4
- --------------------------------------------------
Roche Holding AG 2.1
- --------------------------------------------------
WPP Group plc 1.9
- --------------------------------------------------
Royal Philips Electronics NV 1.8
- --------------------------------------------------
Fresenius AG 1.7
- --------------------------------------------------
</TABLE>
9 Oppenheimer Global Fund
<PAGE>
Financials
- --------------------------------------------------------------------------------
10 Oppenheimer Global Fund
<PAGE>
<TABLE>
<CAPTION>
==================================================================================
Statement of Investments March 31, 1999 (Unaudited)
==================================================================================
Market Value
Shares See Note 1
==================================================================================
<S> <C> <C>
Common Stocks--95.2%
- ----------------------------------------------------------------------------------
Basic Materials--1.4%
- ----------------------------------------------------------------------------------
Chemicals--1.2%
International Flavors & Fragrances, Inc.(1) 773,400 $ 29,050,837
- ----------------------------------------------------------------------------------
Minerals Technologies, Inc. 585,000 28,080,000
-----------
57,130,837
- ----------------------------------------------------------------------------------
Metals--0.2%
Cia de Minas Buenaventura SA, Sponsored ADR, B Shares 701,500 9,294,875
- ----------------------------------------------------------------------------------
Capital Goods--7.3%
- ----------------------------------------------------------------------------------
Aerospace/Defense--0.7%
Rolls-Royce plc 7,829,246 33,113,559
- ----------------------------------------------------------------------------------
Industrial Services--4.8%
Adecco SA 61,818 31,365,364
- ----------------------------------------------------------------------------------
Coflexip SA, Sponsored ADR(1) 171,200 5,906,400
- ----------------------------------------------------------------------------------
McDermott International, Inc. 1,000,000 25,312,500
- ----------------------------------------------------------------------------------
Rentokil Initial plc 10,200,000 63,228,958
- ----------------------------------------------------------------------------------
Service Corp. International(1) 782,500 11,150,625
- ----------------------------------------------------------------------------------
WPP Group plc 10,000,000 86,687,986
-----------
223,651,833
- ----------------------------------------------------------------------------------
Manufacturing--1.8%
Bombardier, Inc., Cl. B 2,307,800 30,281,665
- ----------------------------------------------------------------------------------
Societe BIC SA 1,049,038 55,210,559
-----------
85,492,224
- ----------------------------------------------------------------------------------
Communication Services--10.9%
- ----------------------------------------------------------------------------------
Telecommunications: Long Distance--5.7%
AT&T Corp. 800,000 63,850,000
- ----------------------------------------------------------------------------------
MCI WorldCom, Inc.(2) 1,332,600 118,018,387
- ----------------------------------------------------------------------------------
Nippon Telegraph & Telephone Corp. 6,000 58,768,878
- ----------------------------------------------------------------------------------
SK Telecom Co. Ltd., ADR(1) 2,185,560 26,636,512
-----------
267,273,777
- ----------------------------------------------------------------------------------
Telephone Utilities--5.2%
Cable & Wireless Communications plc(2) 1,600,000 18,093,090
- ----------------------------------------------------------------------------------
Hellenic Telecommunication Organization SA 2,000,000 48,499,061
- ----------------------------------------------------------------------------------
Olivetti SpA(1) 20,000,000 62,615,853
- ----------------------------------------------------------------------------------
SK Telecom Co. Ltd. 25,741 22,242,463
- ----------------------------------------------------------------------------------
Telecom Italia Mobile SpA(1) 10,000,000 67,258,063
- ----------------------------------------------------------------------------------
Telecomunicacoes de Sao Paulo SA, Preference 200,000,000 24,605,754
-----------
243,314,284
</TABLE>
11 Oppenheimer Global Fund
<PAGE>
<TABLE>
<CAPTION>
==================================================================================
Statement of Investments (Unaudited) (Continued)
==================================================================================
Market Value
Shares See Note 1
- ----------------------------------------------------------------------------------
<S> <C> <C>
Consumer Cyclicals--16.1%
- ----------------------------------------------------------------------------------
Autos & Housing--8.8%
- ----------------------------------------------------------------------------------
Autoliv, Inc., SDR 1,246,000 $ 47,427,668
- ----------------------------------------------------------------------------------
Hanson plc 6,542,366 58,668,303
- ----------------------------------------------------------------------------------
IRSA Inversiones y Representaciones SA 7,426,052 19,457,463
- ----------------------------------------------------------------------------------
Porsche AG, Preference 67,836 167,341,147
- ----------------------------------------------------------------------------------
Solidere, GDR(3) 540,000 4,414,500
- ----------------------------------------------------------------------------------
Volkswagen AG(1) 1,700,000 113,054,002
-----------
410,363,083
- ----------------------------------------------------------------------------------
Leisure & Entertainment--2.6%
Granada Group plc 1,975,200 40,016,530
- ----------------------------------------------------------------------------------
Hasbro, Inc. 2,100,000 60,768,750
- ----------------------------------------------------------------------------------
International Game Technology 1,411,900 20,560,794
-----------
121,346,074
- ----------------------------------------------------------------------------------
Media--0.7%
Reed International plc 1,000,000 8,910,944
- ----------------------------------------------------------------------------------
Singapore Press Holdings Ltd.(1) 2,200,000 24,310,250
-----------
33,221,194
- ----------------------------------------------------------------------------------
Retail: General--0.5%
Sonae Investimentos 591,100 23,024,160
- ----------------------------------------------------------------------------------
Retail: Specialty--3.5%
Best Buy Co., Inc.(2) 601,800 31,293,600
- ----------------------------------------------------------------------------------
Circuit City Stores-Circuit City Group 906,100 69,429,913
- ----------------------------------------------------------------------------------
Dixons Group plc 2,931,100 62,126,944
-----------
162,850,457
- ----------------------------------------------------------------------------------
Consumer Staples--13.2%
- ----------------------------------------------------------------------------------
Beverages--1.6%
Cadbury Schweppes plc 3,807,400 55,255,158
- ----------------------------------------------------------------------------------
Cia Cervejaria Brahma, Preference 36,978,000 17,356,555
-----------
72,611,713
- ----------------------------------------------------------------------------------
Broadcasting--8.8%
Canal Plus(2) 600,000 175,864,180
- ----------------------------------------------------------------------------------
Carlton Communications plc 4,696,100 46,357,331
- ----------------------------------------------------------------------------------
Grupo Televisa SA, Sponsored GDR(1)(3) 1,623,300 50,931,038
- ----------------------------------------------------------------------------------
Prosieben Media AG, Preferred(4) 986,065 47,372,015
</TABLE>
12 Oppenheimer Global Fund
<PAGE>
<TABLE>
<CAPTION>
==================================================================================
==================================================================================
Market Value
Shares See Note 1
- ----------------------------------------------------------------------------------
<S> <C> <C>
Broadcasting (continued)
Television Broadcasts Ltd. 4,000,000 $ 14,581,492
- ----------------------------------------------------------------------------------
Television Francaise 1 200,000 37,547,920
- ----------------------------------------------------------------------------------
TeleWest Communications plc(2) 9,221,800 40,008,180
-----------
412,662,156
- ----------------------------------------------------------------------------------
Entertainment--0.1%
Resorts World Berhad(5) 2,804,000 2,762,678
- ----------------------------------------------------------------------------------
Food & Drug Retailers--1.6%
Carrefour Supermarche SA 39,200 30,216,251
- ----------------------------------------------------------------------------------
Dairy Farm International Holdings Ltd.(1) 36,683,456 42,552,809
-----------
72,769,060
- ----------------------------------------------------------------------------------
Household Goods--1.1%
Wella AG, Preference 70,218 50,032,096
- ----------------------------------------------------------------------------------
Energy--0.7%
- ----------------------------------------------------------------------------------
Energy Services--0.3%
Transocean Offshore, Inc. 503,198 14,498,392
- ----------------------------------------------------------------------------------
Oil: International--0.4%
BP Amoco plc, ADR 201,717 20,360,810
- ----------------------------------------------------------------------------------
Financial--12.8%
- ----------------------------------------------------------------------------------
Banks--5.1%
Banco Bradesco SA, Preference 4,163,216,351 22,454,063
- ----------------------------------------------------------------------------------
Banco Frances del Rio de la Plata SA, Sponsored ADR(1) 1,562,055 27,726,476
- ----------------------------------------------------------------------------------
Credito Italiano SpA(1)(2) 9,167,600 49,485,956
- ----------------------------------------------------------------------------------
Industrial Finance Corp. of Thailand (The) 3,693,249 1,155,215
- ----------------------------------------------------------------------------------
Istituto Mobiliare Italiano(1) 3,000,000 48,743,203
- ----------------------------------------------------------------------------------
National Westminster Bank plc 443,948 10,233,989
- ----------------------------------------------------------------------------------
Royal Bank of Scotland Group plc 1,400,000 30,532,897
- ----------------------------------------------------------------------------------
Societe Generale 19,200 3,689,585
- ----------------------------------------------------------------------------------
UBS AG(2) 141,900 44,579,048
-----------
238,600,432
- ----------------------------------------------------------------------------------
Diversified Financial--5.0%
American Express Co. 400,000 47,000,000
- ----------------------------------------------------------------------------------
Associates First Capital Corp., Cl. A 573,200 25,794,000
- ----------------------------------------------------------------------------------
Credit Saison Co. Ltd.(1) 1,500,000 32,930,837
- ----------------------------------------------------------------------------------
Fannie Mae 800,000 55,400,000
- ----------------------------------------------------------------------------------
Housing Development Finance Corp. Ltd. 118,910 6,389,691
- ----------------------------------------------------------------------------------
ICICI Ltd. 50 54
</TABLE>
13 Oppenheimer Global Fund
<PAGE>
<TABLE>
<CAPTION>
==================================================================================
Statement of Investments (Unaudited) (Continued)
==================================================================================
Market Value
Shares See Note 1
- ----------------------------------------------------------------------------------
<S> <C> <C>
Diversified Financial (continued)
ICICI Ltd., GDR(1)(3) 4,171,700 $ 25,968,833
- ----------------------------------------------------------------------------------
Morgan Stanley Dean Witter & Co. 76,100 7,605,244
- ----------------------------------------------------------------------------------
Nichiei Co. Ltd.(1) 387,600 34,724,605
- ----------------------------------------------------------------------------------
Unit Trust of India-Masterplus 91(2) 10,800 5,040
-----------
235,818,304
- ----------------------------------------------------------------------------------
Insurance--2.7%
Allianz AG 100,000 30,411,872
- ----------------------------------------------------------------------------------
Allied Zurich plc(2) 3,000,000 40,438,251
- ----------------------------------------------------------------------------------
American International Group, Inc. 195,300 23,558,063
- ----------------------------------------------------------------------------------
Chubb Corp. 500,000 29,281,250
-----------
123,689,436
- ----------------------------------------------------------------------------------
Healthcare--13.3%
- ----------------------------------------------------------------------------------
Healthcare/Drugs--11.2%
Amgen, Inc.(2) 700,000 52,412,500
- ----------------------------------------------------------------------------------
BioChem Pharma, Inc.(1)(2) 168,000 3,580,500
- ----------------------------------------------------------------------------------
Eisai Co. Ltd. 2,367,000 49,466,550
- ----------------------------------------------------------------------------------
Elan Corp. plc, ADR(1)(2) 435,000 30,341,250
- ----------------------------------------------------------------------------------
Fresenius AG, Preference 400,000 79,025,525
- ----------------------------------------------------------------------------------
Genzyme Corp. (General Division)(1) 1,000,000 50,437,500
- ----------------------------------------------------------------------------------
Gilead Sciences, Inc.(1) 922,200 41,960,100
- ----------------------------------------------------------------------------------
Glaxo Wellcome plc, Sponsored ADR(1) 500,000 33,468,750
- ----------------------------------------------------------------------------------
Millennium Pharmaceuticals, Inc.(2) 600,000 18,750,000
- ----------------------------------------------------------------------------------
Pfizer, Inc. 300,000 41,625,000
- ----------------------------------------------------------------------------------
Roche Holding AG 7,900 96,338,469
- ----------------------------------------------------------------------------------
Taisho Pharmaceutical Co.(2) 865,000 27,024,396
-----------
524,430,540
- ----------------------------------------------------------------------------------
Healthcare/Supplies & Services--2.1%
Fresenius Medical Care AG 730,170 45,483,733
- ----------------------------------------------------------------------------------
Quintiles Transnational Corp.(1)(2) 700,000 26,425,000
- ----------------------------------------------------------------------------------
Swiss Medical SA(4)(5) 300,000 24,312,000
-----------
96,220,733
- ----------------------------------------------------------------------------------
Technology--18.4%
- ----------------------------------------------------------------------------------
Computer Hardware--5.3%
Cisco Systems, Inc.(2) 558,000 61,135,875
- ----------------------------------------------------------------------------------
International Business Machines Corp. 350,000 62,037,500
- ----------------------------------------------------------------------------------
Sun Microsystems, Inc.(2) 1,000,000 125,062,500
-----------
248,235,875
</TABLE>
14 Oppenheimer Global Fund
<PAGE>
<TABLE>
<CAPTION>
==================================================================================
==================================================================================
Market Value
Shares See Note 1
- ----------------------------------------------------------------------------------
<S> <C> <C>
Computer Services--1.1%
Cap Gemini SA(1) 300,000 $ 50,233,028
- ----------------------------------------------------------------------------------
Computer Software--1.3%
Cadence Design Systems, Inc.(2) 1,153,700 29,707,775
- ----------------------------------------------------------------------------------
Lernout & Hauspie Speech Products NV(1) 1,100,000 33,000,000
-------------
62,707,775
- ----------------------------------------------------------------------------------
Communications Equipment--6.9%
General Instrument Corp.(2) 2,000,000 60,625,000
- ----------------------------------------------------------------------------------
Lucent Technologies, Inc.(1) 100,000 10,775,000
- ----------------------------------------------------------------------------------
QUALCOMM, Inc.(1)(2) 1,625,600 202,184,000
- ----------------------------------------------------------------------------------
Scientific-Atlanta, Inc. 1,868,400 50,913,900
-------------
324,497,900
- ----------------------------------------------------------------------------------
Electronics--3.8%
Advanced Micro Devices, Inc.(1)(2) 2,000,000 31,000,000
- ----------------------------------------------------------------------------------
National Semiconductor Corp.(2) 4,836,500 45,039,906
- ----------------------------------------------------------------------------------
Royal Philips Electronics NV(1) 1,000,000 81,454,588
- ----------------------------------------------------------------------------------
STMicroelectronics NV, NY Shares(1)(2) 214,000 20,784,750
-------------
178,279,244
- ----------------------------------------------------------------------------------
Utilities--1.1%
- ----------------------------------------------------------------------------------
Electric Utilities--1.1%
Vivendi (Ex-Generale des Eaux) 200,000 49,207,424
-------------
Total Common Stocks (Cost $3,359,096,185) 4,447,693,953
<CAPTION>
Units
==================================================================================
<S> <C> <C>
Rights, Warrants and Certificates--0.0%
- ----------------------------------------------------------------------------------
American Satellite Network, Inc. Wts., Exp. 6/99 (Cost $0) 51,750 --
<CAPTION>
Face
Amount
==================================================================================
<S> <C> <C>
Short-Term Notes--1.6%(6)
- ----------------------------------------------------------------------------------
GE Capital Corp., 4.87%, 4/21/99 $25,000,000 24,932,361
- ----------------------------------------------------------------------------------
Household Finance Corp., 4.84%, 5/7/99 50,000,000 49,758,000
-------------
Total Short-Term Notes (Cost $74,690,361) 74,690,361
</TABLE>
15 Oppenheimer Global Fund
<PAGE>
<TABLE>
<CAPTION>
==================================================================================
Statement of Investments (Unaudited) (Continued)
==================================================================================
Face Market Value
Amount See Note 1
==================================================================================
<S> <C> <C>
Repurchase Agreements--2.6%
- ----------------------------------------------------------------------------------
Repurchase agreement with First Chicago Capital Markets,
4.85%, dated 3/31/99, to be repurchased at $120,916,288 on
4/1/99, collateralized by U.S. Treasury Nts., 4%-7.875%,
11/30/99-2/15/07, with a value of $111,745,481, U.S.
Treasury Bonds, 8%-10.75%, 2/15/03-11/15/21, with a value of
$7,199,614 and U.S. Treasury Bills, 4/8/99-4/22/99, with a
value of $4,470,117 (Cost $120,900,000)
$120,900,000 $120,900,000
- ----------------------------------------------------------------------------------
Total Investments, at Value (Cost $3,554,686,546) 99.4% 4,643,284,314
- ----------------------------------------------------------------------------------
Other Assets Net of Liabilities 0.6 29,165,079
------------ --------------
Net Assets 100.0% $4,672,449,393
============ ==============
<CAPTION>
Distribution of investments representing geographic
diversification, as a percentage of total investments
at value, is as follows:
Geographic Diversification Market Value Percent
- -----------------------------------------------------------------------------------
<S> <C> <C>
United States $1,766,334,272 38.1%
- -----------------------------------------------------------------------------------
Great Britain 647,501,681 13.9
- -----------------------------------------------------------------------------------
Germany 532,720,391 11.5
- -----------------------------------------------------------------------------------
France 428,660,097 9.2
- -----------------------------------------------------------------------------------
Italy 228,103,074 4.9
- -----------------------------------------------------------------------------------
Japan 202,915,264 4.4
- -----------------------------------------------------------------------------------
Switzerland 172,282,882 3.7
- -----------------------------------------------------------------------------------
Netherlands 81,454,588 1.8
- -----------------------------------------------------------------------------------
Argentina 71,495,939 1.5
- -----------------------------------------------------------------------------------
Singapore 66,863,059 1.4
- -----------------------------------------------------------------------------------
Brazil 64,416,372 1.4
- -----------------------------------------------------------------------------------
Mexico 50,931,038 1.1
- -----------------------------------------------------------------------------------
Korea, Republic of (South) 48,878,976 1.1
- -----------------------------------------------------------------------------------
Greece 48,499,061 1.0
- -----------------------------------------------------------------------------------
Sweden 47,427,668 1.0
- -----------------------------------------------------------------------------------
Canada 33,862,165 0.7
- -----------------------------------------------------------------------------------
Belgium 33,000,000 0.7
- -----------------------------------------------------------------------------------
India 32,363,618 0.7
- -----------------------------------------------------------------------------------
Ireland 30,341,250 0.7
- -----------------------------------------------------------------------------------
Portugal 23,024,160 0.5
- -----------------------------------------------------------------------------------
Hong Kong 14,581,492 0.3
- -----------------------------------------------------------------------------------
Peru 9,294,875 0.2
- -----------------------------------------------------------------------------------
Lebanon 4,414,500 0.1
- -----------------------------------------------------------------------------------
Malaysia 2,762,678 0.1
- -----------------------------------------------------------------------------------
Thailand 1,155,214 0.0
-------------- -----
Total $4,643,284,314 100.0%
============== =====
</TABLE>
16 Oppenheimer Global Fund
<PAGE>
================================================================================
================================================================================
- --------------------------------------------------------------------------------
(1.) Partial or fully-loaned security--See Note 8 of Notes to Financial
Statements.
(2.) Non-income producing security.
(3.) 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 $81,314,371 or 1.74% of the Fund's net
assets as of March 31, 1999.
(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, 1999.
The aggregate fair value of securities of affiliated companies held by the Fund
as of March 31, 1999, amounts to $24,312,000. Transactions during the period in
which the issuer was an affiliate are as follows:
<TABLE>
<CAPTION>
Shares Gross Gross Shares
September 30, 1998 Additions Reductions March 31, 1999
======================================================================================
<S> <C> <C> <C> <C>
Swiss Medical SA 300,000 -- -- 300,000
</TABLE>
(5.) Identifies issues considered to be illiquid or restricted--See Note 6 of
Notes to Financial Statements.
(6.) 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>
<TABLE>
<CAPTION>
================================================================================
Statement of Assets and Liabilities March 31, 1999 (Unaudited)
================================================================================
================================================================================
<S> <C>
Assets
Investments, at value--see accompanying statement:
Unaffiliated companies (cost $3,541,396,546) $ 4,618,972,314
Affiliated companies (cost $13,290,000) 24,312,000
- --------------------------------------------------------------------------------
Cash 33,781
- --------------------------------------------------------------------------------
Collateral for securities loaned--Note 8 504,532,059
- --------------------------------------------------------------------------------
Unrealized appreciation on foreign currency
exchange contracts--Note 5 1,530
- --------------------------------------------------------------------------------
Receivables and other assets:
Investments sold 39,525,954
Interest and dividends 10,979,007
Shares of beneficial interest sold 3,753,131
Other 256,681
---------------
Total assets 5,202,366,457
================================================================================
Liabilities
Return of collateral for securities loaned--Note 8 504,532,059
- --------------------------------------------------------------------------------
Unrealized depreciation on foreign currency
exchange contracts--Note 5 1,494,475
- --------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 9,994,409
Shares of beneficial interest redeemed 9,124,655
Distribution and service plan fees 2,499,777
Transfer and shareholder servicing agent fees 832,781
Custodian fees 700,333
Shareholder reports 409,034
Trustees' compensation--Note 1 320,697
Other 8,844
---------------
Total liabilities 529,917,064
================================================================================
Net Assets $ 4,672,449,393
===============
================================================================================
Composition of Net Assets
Paid-in capital $ 3,463,075,232
- --------------------------------------------------------------------------------
Overdistributed net investment income (4,577,338)
- --------------------------------------------------------------------------------
Accumulated net realized gain on investment
and foreign currency transactions 126,205,045
- --------------------------------------------------------------------------------
Net unrealized appreciation on investments and
translation of assets and liabilities
denominated in foreign currencies 1,087,746,454
---------------
Net assets $ 4,672,449,393
===============
</TABLE>
18 Oppenheimer Global Fund
<PAGE>
<TABLE>
<CAPTION>
================================================================================
================================================================================
================================================================================
Net Asset Value Per Share
<S> <C>
Class A Shares:
Net asset value and redemption price per share (based on
net assets of $3,423,504,942 and 77,466,412 shares of
beneficial interest outstanding) $44.19
Maximum offering price per share (net asset value plus
sales charge of 5.75% of offering price) $46.89
- --------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable
contingent deferred sales charge) and offering price per
share (based on net assets of $1,113,030,424 and 25,848,124
shares of beneficial interest outstanding) $43.06
- --------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable
contingent deferred sales charge) and offering price per
share (based on net assets of $124,586,279 and 2,858,640
shares of beneficial interest outstanding) $43.58
- --------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share
(based on net assets of $11,327,748 and 256,573 shares of beneficial
interest outstanding) $44.15
</TABLE>
See accompanying Notes to Financial Statements.
19 Oppenheimer Global Fund
<PAGE>
<TABLE>
<CAPTION>
==========================================================================================
Statement of Operations For the Six Months Ended March 31, 1999 (Unaudited)
==========================================================================================
==========================================================================================
<S> <C>
Investment Income
Dividends (net of foreign withholding taxes of $1,618,593) $ 19,331,251
- ------------------------------------------------------------------------------------------
Interest 6,548,861
- ------------------------------------------------------------------------------------------
Lending fees--Note 8 1,088,212
-------------
Total income 26,968,324
==========================================================================================
Expenses
Management fees--Note 4 15,233,718
- ------------------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 3,564,201
Class B 5,145,981
Class C 544,323
- ------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4:
Class A 3,060,962
Class B 971,096
Class C 102,942
Class Y 551
- ------------------------------------------------------------------------------------------
Custodian fees and expenses 1,033,808
- ------------------------------------------------------------------------------------------
Shareholder reports 785,709
- ------------------------------------------------------------------------------------------
Trustees' compensation--Note 1 69,331
- ------------------------------------------------------------------------------------------
Legal, auditing and other professional fees 55,011
- ------------------------------------------------------------------------------------------
Registration and filing fees 46,176
- ------------------------------------------------------------------------------------------
Insurance expenses 14,492
- ------------------------------------------------------------------------------------------
Other 247,768
-------------
Total expenses 30,876,069
==========================================================================================
Net Investment Loss (3,907,745)
==========================================================================================
Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments 129,059,518
Foreign currency transactions (1,583,401)
-------------
Net realized gain 127,476,117
- ------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments 968,340,669
Translation of assets and liabilities denominated in foreign currencies (136,212,264)
-------------
Net change 832,128,405
-------------
Net realized and unrealized gain 959,604,522
==========================================================================================
Net Increase in Net Assets Resulting from Operations $ 955,696,777
=============
</TABLE>
See accompanying Notes to Financial Statements.
20 Oppenheimer Global Fund
<PAGE>
<TABLE>
<CAPTION>
=====================================================================================================================
Statements of Changes in Net Assets
=====================================================================================================================
Six Months Ended Year Ended
March 31, 1999 September 30,
(Unaudited) 1998
=====================================================================================================================
<S> <C> <C>
Operations
Net investment income (loss) $ (3,907,745) $ 34,622,509
- ---------------------------------------------------------------------------------------------------------------------
Net realized gain 127,476,117 409,137,307
- ---------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation 832,128,405 (882,273,171)
--------------- ---------------
Net increase (decrease) in net assets resulting from operations 955,696,777 (438,513,355)
=====================================================================================================================
Dividends and Distributions to Shareholders
Dividends from net investment
income:
Class A (29,229,731) (56,873,734)
Class B (2,645,936) (9,622,535)
Class C (395,291) (754,610)
Class Y (48,417) --
- ---------------------------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (224,651,658) (393,765,656)
Class B (72,306,961) (109,218,961)
Class C (7,421,486) (7,621,412)
Class Y (298,614) --
=====================================================================================================================
Beneficial Interest Transactions
Net increase in net assets resulting from
beneficial interest transactions--Note 2:
Class A 60,620,166 262,647,406
Class B 70,678,249 230,002,915
Class C 18,604,104 51,057,171
Class Y 10,905,663 --
=====================================================================================================================
Net Assets
Total increase (decrease) 779,506,865 (472,662,771)
- ---------------------------------------------------------------------------------------------------------------------
Beginning of period 3,892,942,528 4,365,605,299
--------------- ---------------
End of period [including undistributed (overdistributed)
net investment income of $(4,577,338) and $31,649,782,
respectively] $ 4,672,449,393 $ 3,892,942,528
=============== ===============
</TABLE>
See accompanying Notes to Financial Statements.
21 Oppenheimer Global Fund
<PAGE>
<TABLE>
<CAPTION>
==============================================================================================
Financial Highlights
==============================================================================================
Class A
---------------------------------------------
Six Months
Ended
March 31,
1999 Year Ended September 30,
(Unaudited) 1998 1997 1996
==============================================================================================
<S> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $38.34 $49.32 $39.00 $36.84
- ----------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .01 1.08 .32 .23
Net realized and unrealized gain (loss) 9.22 (5.49) 11.91 4.22
------ ------ ------ ------
Total income (loss) from investment
operations 9.23 (4.41) 12.23 4.45
- ----------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.39) (.83) (.53) (.24)
Distributions from net realized gains (2.99) (5.74) (1.38) (2.05)
------ ------ ------ ------
Total dividends and distributions
to shareholders (3.38) (6.57) (1.91) (2.29)
- ----------------------------------------------------------------------------------------------
Net asset value, end of period $44.19 $38.34 $49.32 $39.00
====== ====== ====== ======
==============================================================================================
Total Return, at Net Asset Value(3) 25.02% (9.85)% 32.85% 12.98%
==============================================================================================
Ratios/Supplemental Data
Net assets, end of period (in millions) $3,424 $2,905 $3,408 $2,499
- ----------------------------------------------------------------------------------------------
Average net assets (in millions) $3,268 $3,381 $2,869 $2,309
- ----------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) 0.02%(4) 0.96% 0.74% 0.62%
Expenses(6) 1.20%(4) 1.14% 1.13% 1.17%
- ----------------------------------------------------------------------------------------------
Portfolio turnover rate(7) 32% 65% 66% 103%
</TABLE>
(1.) For the period from October 2, 1995 (inception of offering) to September
30, 1996.
(2.) For the period from November 17, 1998 (inception of offering) to March 31,
1999.
(3.) Assumes a $1,000 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>
<TABLE>
<CAPTION>
===========================================================================================
===========================================================================================
Class B
- -------------------------------------------------------------------------------------------
Six Months
Ended
March 31,
1999 Year Ended September 30,
1995 1994 (Unaudited) 1998 1997 1996 1995 1994
===========================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
$37.69 $35.04 $37.32 $48.19 $38.19 $36.16 $37.36 $34.99
- -------------------------------------------------------------------------------------------
.31 .17 (.14) .69 (.04) (.05) .06 .08
2.59 6.10 8.98 (5.31) 11.68 4.13 2.49 5.83
- ------ ------ ------ ------ ------ ------ ------ ------
2.90 6.27 8.84 (4.62) 11.64 4.08 2.55 5.91
- -------------------------------------------------------------------------------------------
-- (.25) (.11) (.51) (.26) -- -- (.18)
(3.75) (3.37) (2.99) (5.74) (1.38) (2.05) (3.75) (3.36)
- ------ ------ ------ ------ ------ ------ ------ ------
(3.75) (3.62) (3.10) (6.25) (1.64) (2.05) (3.75) (3.54)
- -------------------------------------------------------------------------------------------
$36.84 $37.69 $43.06 $37.32 $48.19 $38.19 $36.16 $37.36
====== ====== ====== ====== ====== ====== ====== ======
===========================================================================================
9.26% 19.19% 24.56% (10.56)% 31.77% 12.07% 8.34% 18.10%
===========================================================================================
$2,186 $1,921 $1,113 $897 $897 $541 $340 $187
- -------------------------------------------------------------------------------------------
$1,979 $1,711 $1,033 $966 $692 $438 $258 $88
- -------------------------------------------------------------------------------------------
0.90% 0.38% (0.75)%(4) 0.20% (0.23)% (0.17)% 0.09% (0.30)%
1.20% 1.15% 1.98%(4) 1.91% 1.94% 2.00% 2.03% 2.08%
- -------------------------------------------------------------------------------------------
84% 78% 32% 65% 66% 103% 84% 78%
</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.) Beginning in fiscal 1995, the expense ratio reflects the effect of gross
expenses paid indirectly by the Fund. Prior year expense ratios have not been
adjusted.
23 Oppenheimer Global Fund
<PAGE>
<TABLE>
<CAPTION>
========================================================================================================
Financial Highlights (Continued)
========================================================================================================
Class C Class Y
-------------------------------------------- ---------
Six Months Period
Ended Ended
March 31, March 31,
1999 Year Ended September 30, 1999(2)
(Unaudited) 1998 1997 1996(1) (Unaudited)
========================================================================================================
<S> <C> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $37.79 $ 48.77 $38.73 $36.67 $42.38
- --------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.10) .75 (.08) .09 .35
Net realized and unrealized gain (loss) 9.04 (5.42) 11.86 4.13 4.89
------ ------- ------ ------ ------
Total income (loss) from investment
operations 8.94 (4.67) 11.78 4.22 5.24
- --------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.16) (.57) (.36) (.11) (.48)
Distributions from net realized gains (2.99) (5.74) (1.38) (2.05) (2.99)
------ ------- ------ ------ ------
Total dividends and distributions
to shareholders (3.15) (6.31) (1.74) (2.16) (3.47)
- --------------------------------------------------------------------------------------------------------
Net asset value, end of period $43.58 $ 37.79 $48.77 $38.73 $44.15
====== ======= ====== ====== ======
========================================================================================================
Total Return, at Net Asset Value(3) 24.53% (10.53)% 31.76% 12.34% 13.28%
========================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in millions) $125 $91 $60 $18 $11
- --------------------------------------------------------------------------------------------------------
Average net assets (in millions) $109 $79 $35 $8 $8
- --------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) (0.75)%(4) 0.23% (0.86)%(5) 0.04%(4) 0.50%(4)
Expenses(6) 1.98%(4) 1.91% 1.94% 1.99%(4) 0.81%(4)
- --------------------------------------------------------------------------------------------------------
Portfolio turnover rate(7) 32% 65% 66% 103% 32%
</TABLE>
(7.) 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, 1999, were $1,347,834,179 and $1,427,257,555, respectively.
See accompanying Notes to Financial Statements.
24 Oppenheimer Global Fund
<PAGE>
================================================================================
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. The Fund's
investment advisor is OppenheimerFunds, Inc. (the Manager). The Fund offers
Class A, Class B, Class C and Class Y 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. Foreign currency exchange contracts are valued based on the
closing prices of the foreign 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>
================================================================================
Notes to Financial Statements (Unaudited) (Continued)
================================================================================
================================================================================
1. Significant Accounting Policies (continued)
Foreign Currency Translation. The accounting records of the Fund are maintained
in U.S. dollars. Prices of securities denominated in foreign currencies are
translated into U.S. dollars at the closing rates of exchange. Amounts related
to the purchase and sale of foreign securities and investment income are
translated at the rates of exchange prevailing on the respective dates of such
transactions.
The effect of changes in foreign currency exchange rates on investments is
separately identified from the fluctuations arising from changes in market
values of securities held and reported with all other foreign currency gains and
losses in the Fund's Statement of Operations.
- --------------------------------------------------------------------------------
Repurchase Agreements. The Fund requires the custodian to take possession, to
have legally segregated in the Federal Reserve Book Entry System or to have
segregated within the custodian's vault, all securities held as collateral for
repurchase agreements. The market value of the underlying securities is required
to be at least 102% of the resale price at the time of purchase. If the seller
of the agreement defaults and the value of the collateral declines, or if the
seller enters an insolvency proceeding, realization of the value of the
collateral by the Fund may be delayed or limited.
- --------------------------------------------------------------------------------
Allocation of Income, Expenses, Gains and Losses. Income, expenses (other than
those attributable to a specific class), gains and losses are allocated daily to
each class of shares based upon the relative proportion of net assets
represented by such class. Operating expenses directly attributable to a
specific class are charged against the operations of that class.
- --------------------------------------------------------------------------------
Federal Taxes. The Fund intends to continue to comply with provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income, including any net realized gain on
investments not offset by loss carryovers, to shareholders. Therefore, no
federal income or excise tax provision is required. As of September 30, 1998,
the Fund had available for federal tax purposes an unused capital loss carryover
of approximately $18,661,000, which expires between 1999 and 2004. The capital
loss carryover was acquired in connection with the Oppenheimer Global Emerging
Growth Fund merger. There are certain limitations to the amount that may be used
each year.
26 Oppenheimer Global Fund
<PAGE>
================================================================================
================================================================================
================================================================================
Trustees' Compensation. 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, 1999, a credit of $34,309 was made for the Fund's projected benefit
obligations and payments of $19,987 were made to retired trustees, resulting in
an accumulated liability of $310,740 as of March 31, 1999.
The Board of Trustees has adopted a deferred compensation plan for
independent Trustees that enables Trustees to elect to defer receipt of all or a
portion of annual fees they are entitled to receive from the Fund. Under the
plan, the compensation deferred is periodically adjusted as though an equivalent
amount had been invested for the Trustee in shares of one or more Oppenheimer
funds selected by the Trustee. The amount paid to the Trustee under the plan
will be determined based upon the performance of the selected funds. Deferral of
Trustees' fees under the plan will not affect the net assets of the Fund, and
will not materially affect the Fund's assets, liabilities or net income per
share.
- --------------------------------------------------------------------------------
Distributions to Shareholders. Dividends and distributions to shareholders are
recorded on the ex-dividend date.
- --------------------------------------------------------------------------------
Classification of Distributions to Shareholders. Net investment income (loss)
and net realized gain (loss) may differ for financial statement and tax purposes
primarily because of the recognition of certain foreign currency gains (losses)
as ordinary income (loss) for tax purposes. The character of the distributions
made during the year from net investment income or net realized gains may differ
from its ultimate characterization for federal income tax purposes. Also, due to
timing of dividend distributions, the fiscal year in which amounts are
distributed may differ from the fiscal year in which the income or realized gain
was recorded by the Fund.
- --------------------------------------------------------------------------------
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>
================================================================================
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, 1999 Year Ended September 30, 1998
------------------------------- -----------------------------
Shares Amount Shares Amount
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 10,791,056 $ 454,693,781 14,196,415 $ 630,090,478
Dividends and
distributions reinvested 6,076,043 242,191,797 10,509,965 432,695,731
Redeemed (15,162,534) (636,265,412) (18,038,607) (800,138,803)
----------- ------------ ----------- ------------
Net increase 1,704,565 $ 60,620,166 6,667,773 $ 262,647,406
=========== ============ =========== ============
- -----------------------------------------------------------------------------------------------
Class B:
Sold 2,647,189 $ 108,233,315 6,370,879 $ 277,884,257
Dividends and
distributions reinvested 1,838,313 71,583,453 2,816,048 113,599,323
Redeemed (2,683,268) (109,138,519) (3,761,661) (161,480,665)
----------- ------------ ----------- ------------
Net increase 1,802,234 $ 70,678,249 5,425,266 $ 230,002,915
=========== ============ =========== ============
- -----------------------------------------------------------------------------------------------
Class C:
Sold 985,863 $ 40,900,918 1,722,952 $ 75,968,436
Dividends and
distributions reinvested 188,857 7,442,850 196,350 8,016,932
Redeemed (716,632) (29,739,664) (756,877) (32,928,197)
----------- ------------ ----------- ------------
Net increase 458,088 $ 18,604,104 1,162,425 $ 51,057,171
=========== ============ =========== ============
- -----------------------------------------------------------------------------------------------
Class Y:
Sold 264,109 $ 11,256,818 -- $ --
Dividends and
distributions reinvested 8,724 346,949 -- --
Redeemed (16,260) (698,104) -- --
----------- ------------ ----------- ------------
Net increase 256,573 $ 10,905,663 -- $ --
=========== ============ =========== ============
</TABLE>
28 Oppenheimer Global Fund
<PAGE>
================================================================================
================================================================================
================================================================================
3. Unrealized Gains and Losses on Investments
As of March 31, 1999, net unrealized appreciation on investments of
$1,088,597,768 was composed of gross appreciation of $1,353,162,424, and gross
depreciation of $264,564,656.
================================================================================
4. Management Fees and Other Transactions with Affiliates
Management fees paid to the Manager were in accordance with the investment
advisory agreement with the Fund which provides for a fee of 0.80% of the first
$250 million of average annual net assets, 0.77% of the next $250 million, 0.75%
of the next $500 million, 0.69% of the next $1.0 billion, 0.67% of the next $1.5
billion, 0.65% of the next $2.5 billion and 0.63% of average annual net assets
in excess of $6.0 billion. The Fund's management fee for the six months ended
March 31, 1999 was 0.69% of average annual net assets for each class of shares.
For the six months ended March 31, 1999, commissions (sales charges paid by
investors) on sales of Class A shares totaled $2,383,717, of which $676,133 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 A, Class
B and Class C shares totaled $348,859, $2,925,487 and $238,317, respectively.
Amounts paid to an affiliated broker/dealer for Class B and Class C shares were
$292,907 and $3,891, respectively. During the six months ended March 31, 1999,
OFDI received contingent deferred sales charges of $1,048,564 and $21,745,
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 other Oppenheimer funds. OFS's
total costs of providing such services are allocated ratably to these funds.
Expenses paid indirectly represent a reduction of custodian fees for
earnings on cash balances maintained by the Fund.
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, 1999, OFDI paid $221,374 to an
affiliated broker/dealer as reimbursement for Class A personal service and
maintenance expenses.
29 Oppenheimer Global Fund
<PAGE>
================================================================================
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 and Class C shares for its
services rendered in distributing Class B and Class C shares. OFDI also receives
a service fee of 0.25% per year to compensate dealers for providing personal
services for accounts that hold Class B and Class C shares. Each fee is computed
on the average annual net assets of Class B or Class C shares, determined as of
the close of each regular business day. During the six months ended March 31,
1999, OFDI paid $76,171 and $7,481, respectively, to an affiliated broker/dealer
as compensation for Class B and Class C personal service and maintenance
expenses and retained $4,109,632 and $357,556, respectively, as compensation for
Class B and Class C sales commissions and service fee advances, as well as
financing costs. If either Plan is terminated by the Fund, the Board of Trustees
may allow the Fund to continue payments of the asset-based sales charge to OFDI
for distributing shares before the Plan was terminated. As of March 31, 1999,
OFDI had incurred excess distribution and servicing costs of $20,226,591 for
Class B and $1,179,024 for Class C.
================================================================================
5. Foreign Currency Contracts
A foreign currency exchange contract is a commitment to purchase or sell a
foreign currency at a future date, at a negotiated rate. The Fund may enter into
foreign currency exchange contracts for operational purposes and to seek to
protect against adverse exchange rate fluctuation. Risks to the Fund include the
potential inability of the counterparty to meet the terms of the contract.
The net U.S. dollar value of foreign currency underlying all contractual
commitments held by the Fund and the resulting unrealized appreciation or
depreciation are determined using foreign currency exchange rates as provided by
a reliable bank, dealer or pricing service. Unrealized appreciation and
depreciation on foreign currency contracts are reported in the Statement of
Assets and Liabilities.
The Fund may realize a gain or loss upon the closing or settlement of the
foreign currency transaction. Realized gains and losses are reported with all
other foreign currency gains and losses in the Statement of Operations.
Securities denominated in foreign currency to cover net exposure on
outstanding foreign currency contracts are noted in the Statement of Investments
where applicable.
30 Oppenheimer Global Fund
<PAGE>
================================================================================
================================================================================
================================================================================
As of March 31, 1999, the Fund had outstanding foreign currency contracts as
follows:
<TABLE>
<CAPTION>
Expiration Contract Valuation as of Unrealized Unrealized
Contract Description Dates Amount (000s) March 31, 1999 Appreciation Depreciation
- ---------------------------------------------------------------------------------------------------------------------------
Contracts to Purchase
- ---------------------
<S> <C> <C> <C> <C> <C>
British Pound Sterling (GBP) 4/6/99- 15,089 GBP $ 24,356,591 $ -- $ 31,748
4/8/99
British Pound Sterling (GBP) 4/6/99 665 GBP 1,073,034 1,530 --
Japanese Yen (JPY) 6/3/99 17,794,500 JPY 151,462,727 -- 1,462,727
------ ----------
Total Unrealized Appreciation and Depreciation $1,530 $1,494,475
====== ==========
</TABLE>
================================================================================
6. Illiquid and Restricted Securities
As of March 31, 1999, investments in securities included issues that are
illiquid or restricted. Restricted securities are often purchased in private
placement transactions, are not registered under the Securities Act of 1933, may
have contractual restrictions on resale, and are valued under methods approved
by the Board of Trustees as reflecting fair value. A security may be considered
illiquid if it lacks a readily available market or if its valuation has not
changed for a certain period of time. The Fund intends to invest no more than
10% of its net assets (determined at the time of purchase and reviewed
periodically) in illiquid or restricted securities. Certain restricted
securities, eligible for resale to qualified institutional investors, are not
subject to that limit. The aggregate value of illiquid or restricted securities
subject to this limitation as of March 31, 1999 was $27,074,678, which
represents 0.58% of the Fund's net assets, of which $24,312,000 is considered
restricted.
<TABLE>
<CAPTION>
Valuation Per
Cost Unit as of
Security Acquisition Date Per Unit March 31, 1999
- -----------------------------------------------------------------------------------
Stocks
- ------
<S> <C> <C> <C>
Swiss Medical SA 10/28/97 $44.30 $81.04
</TABLE>
================================================================================
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, 1999.
31 Oppenheimer Global Fund
<PAGE>
================================================================================
Notes to Financial Statements (Unaudited) (Continued)
================================================================================
================================================================================
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 fee income
from lending transactions. In exchange for such fees, the custodian is
authorized to loan securities on behalf of the Fund, against receipt of
collateral at least equal in value to the value of the securities loaned. Cash
collateral is invested by the custodian in money market instruments approved by
the Manager. As of March 31, 1999, the Fund had on loan securities valued at
$490,144,262. Cash of $504,532,059 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.
32 Oppenheimer Global Fund
<PAGE>
<TABLE>
<CAPTION>
=====================================================================================
Oppenheimer Global Fund
=====================================================================================
=====================================================================================
<S> <C>
Officers and Trustees Leon Levy, Chairman of the Board of Trustees
Donald W. Spiro, Vice Chairman of the Board of Trustees
Bridget A. Macaskill, Trustee and President
Robert G. Galli, Trustee
Benjamin Lipstein, Trustee
Elizabeth B. Moynihan, Trustee
Kenneth A. Randall, Trustee
Edward V. Regan, Trustee
Russell S. Reynolds, Jr., Trustee
Pauline Trigere, Trustee
Clayton K. Yeutter, Trustee
William L. Wilby, Vice President
George C. Bowen, Treasurer
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Andrew J. Donohue, Secretary
Robert G. Zack, Assistant Secretary
=====================================================================================
Investment Advisor OppenheimerFunds, Inc.
=====================================================================================
Distributor OppenheimerFunds Distributor, Inc.
=====================================================================================
Transfer and Shareholder
Servicing Agent OppenheimerFunds Services
=====================================================================================
Custodian of
Portfolio Securities The Bank of New York
=====================================================================================
Independent Auditors KPMG 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,
are not insured by the FDIC or any other agency, and
involve investment risks, including the possible loss
of the principal amount invested.
</TABLE>
33 Oppenheimer Global Fund
<PAGE>
<TABLE>
<CAPTION>
============================================================================================
OppenheimerFunds Family
============================================================================================
<S> <C> <C>
============================================================================================
Real Asset Funds
- --------------------------------------------------------------------------------------------
Real Asset Fund Gold & Special Minerals Fund
============================================================================================
Global Stock Funds
- --------------------------------------------------------------------------------------------
Developing Markets Fund International Growth Fund Global Growth & Income Fund
International Small Global Fund Europe Fund
Company Fund Quest Global Value Fund
============================================================================================
Stock Funds
- --------------------------------------------------------------------------------------------
Enterprise Fund MidCap Fund Growth Fund
Discovery Fund Capital Appreciation Fund Large Cap Growth Fund
Quest Small Cap Value Fund Quest Capital Value Fund Disciplined Value Fund
Quest Value Fund
============================================================================================
Stock & Bond Funds
- --------------------------------------------------------------------------------------------
Main Street Growth & Total Return Fund Multiple Strategies Fund
Income Fund(1) Quest Balanced Disciplined Allocation Fund
Quest Opportunity Value Fund Convertible Securities Fund
Value Fund Capital Income Fund(2)
============================================================================================
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 12/22/98, the Fund's name was changed from "Main Street Income & Growth
Fund."
(2.) On 4/1/99, the Fund's name was changed from "Equity Income Fund."
(3.) Available only to investors in certain states.
(4.) An investment in money market funds is neither insured nor guaranteed by
the Federal Deposit Insurance Corporation or any other government agency.
Although these funds may seek to preserve the value of your investment at $1.00
per share, it is possible to lose money by investing in these funds. Oppenheimer
funds are distributed by OppenheimerFunds Distributor, Inc., Two World Trade
Center, New York, NY 10048-0203.
(C) Copyright 1999 OppenheimerFunds, Inc. All rights reserved.
34 Oppenheimer Global Fund
<PAGE>
Internet
24-hr access to account information. Online
transactions now available
- ------------------------------
www.oppenheimerfunds.com
- ------------------------------
General Information
Mon-Fri 8:30am-9pm ET
Sat 10am-4pm ET
- ------------------------------
1-800-525-7048
- ------------------------------
Account Transactions
Mon-Fri 8:30am-9pm ET
Sat 10am-4pm ET
- ------------------------------
1-800-852-8457
- ------------------------------
PhoneLink
24-hr automated information
and automated transactions
- ------------------------------
1-800-533-3310
- ------------------------------
Telecommunication Device
for the Deaf (TDD)
Mon-Fri 8:30am-6pm ET
- ------------------------------
1-800-843-4461
- ------------------------------
OppenheimerFunds
Information Hotline
24 hours a day, timely and
insightful messages on the
economy and issues that
affect your investments
- ------------------------------
1-800-835-3104
- ------------------------------
Information and services
- --------------------------------------------------------------------------------
As an Oppenheimer fund shareholder, you have some special privileges. Whether
it's automatic investment plans, informative newsletters and hotlines, or ready
account access, you can benefit from services designed to make investing simple.
And when you need help, our Customer Service Representatives are only a
toll-free phone call away. They can provide information about your account and
handle administrative requests. You can reach them at our General Information
number.
When you want to make a transaction, you can do it easily by calling our
toll-free Telephone Transactions number or by visiting our website. And, by
enrolling in AccountLink, a convenient service that "links" your Oppenheimer
funds accounts and your bank checking or savings account, you can use the
Telephone Transactions number or website to make investments.
For added convenience, you can get automated information with
OppenheimerFunds PhoneLink service, available 24 hours a day, 7 days a week.
PhoneLink gives you access to a variety of fund, account, and market
information. Of course, you can always speak with a Customer Service
Representative during the General Information hours shown at the left.
You can count on us whenever you need assistance. That's why the
International Customer Service Association, an independent, nonprofit
organization made up of over 3,200 customer service management professionals
from around the country, honored the Oppenheimer funds' transfer agent,
OppenheimerFunds Services, with their Award of Excellence in 1993.
So call us today, or visit us at our website at www.oppenheimerfunds.com--
we're here to help.
[LOGO] OppenheimerFunds(R)
Distributors, Inc.
RS0330.001.0399 May 28, 1999
