<PAGE>
[GRAPHIC]
Annual Report September 30, 1999
OPPENHEIMER
GLOBAL FUND
[LOGO] OPPENHEIMERFUNDS-Registered Trademark-
The Right Way to Invest
<PAGE>
- --------------------------------------------------------------------------------
REPORT HIGHLIGHTS
- --------------------------------------------------------------------------------
CONTENTS
1 President's Letter
3 An Interview with your Fund's Manager
7 Fund Performance
12 FINANCIAL STATEMENTS
34 INDEPENDENT AUDITORS' REPORT
35 Federal Income Tax Information
36 Officers and Trustees
37 OppenheimerFunds Family
STOCKS WORLDWIDE REBOUNDED DRAMATICALLY in the wake of last year's global
currency and credit crisis, contributing to the Fund's strong performance.
THE FUND HAS CONTINUED TO FOCUS ON COMPANIES IN THE UNITED STATES AND EUROPE,
where economic conditions have been positive and corporate restructuring has
made many companies more profitable.
We trimmed positions in some of our biggest winners, and REDEPLOYED THOSE ASSETS
TO OUT-OF-FAVOR GROWTH COMPANIES THAT WE BELIEVE ARE MORE ATTRACTIVELY VALUED.
<TABLE>
<CAPTION>
- ----------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
For the 1-Year Period Ended 9/30/99*
CLASS A
Without Sales Chg. With Sales Chg.
- ----------------------------------------
<S> <C>
40.05% 32.00%
<CAPTION>
CLASS B
Without Sales Chg. With Sales Chg.
- ----------------------------------------
<S> <C>
38.99% 33.99%
<CAPTION>
CLASS C
Without Sales Chg. With Sales Chg.
- ----------------------------------------
<S> <C>
38.97% 37.97%
<CAPTION>
- ----------------------------------------
CUMULATIVE TOTAL RETURN
For the Period from 11/17/98 to 9/30/99*
CLASS Y
Without Sales Chg. With Sales Chg.
- ----------------------------------------
<S> <C>
27.11% 27.11%
- ----------------------------------------
</TABLE>
------------------
NOT FDIC INSURED
NO BANK GUARANTEE
MAY LOSE VALUE
------------------
* See page 10 for further details.
<PAGE>
- --------------------------------------------------------------------------------
PRESIDENT'S LETTER
- --------------------------------------------------------------------------------
[PHOTO]
BRIDGET A. MACASKILL
President
Oppenheimer Global Fund
DEAR SHAREHOLDER,
In many ways, the 1999 investment environment has, so far, unfolded as many
expected it would, producing both attractive opportunities and formidable
challenges for investors.
On the economic front, early worries about the effects of global weakness
in the wake of last year's credit and currency crises have abated. Instead, as
many economies around the world begin to strengthen, concerns now center around
whether the U.S. economy may be growing too quickly. Throughout the year,
consumers in the United States have continued to spend and borrow heavily, more
than offsetting any temporary slowdown in the industrial and export sectors.
The economy's strength has not gone unnoticed by the nation's monetary
policymakers. In an effort to ward off emerging inflationary pressures, the
Federal Reserve Board increased short-term interest rates this past summer.
Market reaction to robust economic growth has been mixed. The U.S. bond
market has generally declined, as fixed income investors became increasingly
concerned about the effects of rising interest rates.
In the stock market, the performance of large capitalization growth stocks,
which has driven the market's advance over the past few years, has begun to
moderate, and many previously out-of-favor value-oriented mid-cap and small-cap
stocks have rallied. At the same time, a healthy percentage of actively managed,
diversified portfolios have once again begun to outperform unmanaged stock
indices such as Standard & Poor's 500.
At OppenheimerFunds, we applaud the Fed's pre- emptive strike against
inflation. In our view, history has repeatedly demonstrated that most financial
assets do best in a low-inflation environment. What's more, we believe that the
move to higher interest rates should be temporary.
1 OPPENHEIMER GLOBAL FUND
<PAGE>
- --------------------------------------------------------------------------------
PRESIDENT'S LETTER
- --------------------------------------------------------------------------------
One recent development is quite troublesome to us however: the increasing
popularity of "day trading" among individuals seeking to make fast money in a
volatile stock market. In our opinion, day trading is not investing, it is
gambling. Experience proves that without extensive research and analysis,
attempting to time short-term price swings is a fool's errand. Instead, we
continue to encourage investors to maintain a long-term perspective that is
measured in years, not days.
Finally, while we remain alert to the potential impact of the Y2K issue, we
are encouraged by the progress made in addressing the matter. At
OppenheimerFunds, our shareholder accounting systems are already Y2K compliant,
and we have successfully participated in all required industrywide tests. We
intend to continue retesting our systems in order to help further protect
against any potential problems. After all, whether in our computer accounting
systems or the financial markets, managing risk is an important part of what
makes OppenheimerFunds THE RIGHT WAY TO INVEST.
Sincerely,
/s/ Bridget A. Macaskill
Bridget A. Macaskill
October 21, 1999
2 OPPENHEIMER GLOBAL FUND
<PAGE>
- --------------------------------------------------------------------------------
AN INTERVIEW WITH YOUR FUND'S MANAGER
- --------------------------------------------------------------------------------
[PHOTO]
PORTFOLIO MANAGEMENT TEAM (L TO R)
Frank Jennings
William Wilby
(Portfolio Manager)
George Evans
Q. HOW DID OPPENHEIMER GLOBAL FUND PERFORM DURING THE ONE-YEAR PERIOD THAT ENDED
SEPTEMBER 30, 1999?
We are very pleased with the Fund's performance over the past year. We attribute
the Fund's performance during the reporting period to our disciplined stock
selection strategy. By identifying trends--such as technological change and
restructuring--that are propelling global growth, we have been able to take
advantage of strong, individual companies that have played important roles in
enabling this growth.
WHY DID THE GLOBAL FINANCIAL MARKETS REBOUND SO QUICKLY AND DRAMATICALLY AFTER
1998'S DECLINES?
In large part, the markets' recovery was the result of actions taken by central
banks worldwide as the crisis unfolded last year. When the reporting period
began, the Federal Reserve Board had just reduced key short-term interest rates
in order to stimulate global economic growth and restore much needed liquidity
to the financial markets. That initial reduction was quickly followed by two
others. In addition, many other nations' central banks followed the Federal
Reserve Board's lead, reducing interest rates in their countries. In doing so,
the central banks made more funds available to companies seeking to raise
capital for ongoing operations and expansion.
In addition, the markets' recovery was enhanced by an increase in corporate
earnings. Certain key sectors of the global markets, including the energy and
semiconductor industries, began to recover after experiencing recession-like
conditions for several years. Higher oil prices and robust demand for microchips
helped fuel a rebound in those sectors, which positively influenced the entire
marketplace.
3 OPPENHEIMER GLOBAL FUND
<PAGE>
- --------------------------------------------------------------------------------
AN INTERVIEW WITH YOUR FUND'S MANAGER
- --------------------------------------------------------------------------------
"DESPITE THE HIGH LEVELS OF THE GLOBAL STOCK MARKETS, WE HAVE CONTINUED TO FIND
INEXPENSIVE STOCKS IN ALL OUR GLOBAL INVESTMENT THEMES."
HOW DID THE VARIOUS REGIONS OF THE WORLD FARE IN THIS ENVIRONMENT?
The Asian markets rebounded strongly in early 1999 as the fear of depression
eased and their economies stabilized. Within Asia, Japan's stock market has had
a particularly good year so far, driven by the widespread belief that the
Japanese economy has stabilized and may begin to recover from its long-standing
recession. The advance of European markets paused during the first several
months of 1999 as the region adjusted to a new currency, the euro, which has
weakened relative to the U.S. dollar. However, these markets once again began to
show signs of life during the summer. In the United States, stocks as a whole
have performed reasonably well, with the greatest returns coming from technology
and economically sensitive businesses such as oil companies and other
manufacturers of basic materials.
HOW WAS THE FUND MANAGED IN THIS INVESTMENT CLIMATE?
Throughout the reporting period, we generally maintained our focus on companies
based in Europe and the United States. It is important to note, however, that
this strategy was not so much a reaction to broad economic or market trends as
it was a result of our disciplined, bottom-up stock selection strategy. We
choose investments one company at a time by evaluating their prospects in the
context of long-term growth trends.
Despite the remarkable gains in many global stock markets over the past
several years, we have continued to find attractively valued stocks in a number
of different industries. As a result, we have trimmed positions in some of our
biggest winners that we no longer considered attractively valued, and we have
redeployed those assets to new and existing holdings that we consider
inexpensive relative to their future earnings prospects. For example, we have
maintained investments in the
4 OPPENHEIMER GLOBAL FUND
<PAGE>
automobile industry where sales have been rising because of rising consumer
wealth. Our positions in the automobile industry include German companies
Porsche AG and Volkswagen AG(1). As always, please keep in mind that
investing in foreign securities entails additional expenses and risks
including foreign currency fluctuations.
WHAT INVESTMENTS CONTRIBUTED MOST TO THE FUND'S PERFORMANCE?
The Fund's largest position, QUALCOMM, Inc., provided outstanding returns. This
U.S. telecommunications company recently set a new standard for software that
runs cellular telephone communications. This new--and, in our opinion,
superior--standard was adopted by many competing cellular telephone equipment
manufacturers.
United States technology company National Semiconductor Corp. also provided
very good returns over the past year as the entire semiconductors sector
recovered from a period of relatively lackluster growth. Driven by greater
demand for microprocessors, National Semiconductor Corp. was a prime beneficiary
of this recovery. In addition, the company's stock price rallied when it sold an
underperforming division in order to focus on its more profitable niche
businesses.
WHAT IS YOUR OUTLOOK FOR THE FORESEEABLE FUTURE?
We currently see little reason that global stock markets need to either rise or
fall substantially from current levels. On one hand, many global economies are
either stable or growing, and we see little likelihood of an economic collapse
in any major markets. On the other hand, valuations of many growth companies
remain quite high. As a result, we continue to believe that the greatest returns
are likely to be achieved by focusing on individual companies rather than
overall markets.
AVERAGE ANNUAL TOTAL RETURNS
FOR THE PERIODS ENDED 9/30/99(2)
<TABLE>
<CAPTION>
CLASS A
1-YEAR 5-YEAR 10-YEAR
- --------------------------
<S> <C> <C>
32.00% 14.31% 12.57%
<CAPTION>
CLASS B SINCE
1-YEAR 5-YEAR INCEPTION
- --------------------------
<S> <C> <C>
33.99% 14.51% 15.67%
<CAPTION>
CLASS C SINCE
1-YEAR 5-YEAR INCEPTION
- --------------------------
<S> <C> <C>
37.97% N/A 16.49%
</TABLE>
- --------------------------
CUMULATIVE
TOTAL RETURN
FOR THE PERIOD FROM 11/17/98 TO 9/30/99(2)
<TABLE>
<CAPTION>
SINCE
INCEPTION
- -------------------------
<S> <C>
Class Y 27.11%
</TABLE>
1. Portfolio is subject to change.
2. See page 10 for further details.
5 OPPENHEIMER GLOBAL FUND
<PAGE>
Fortunately, we have had no trouble identifying growth companies that we believe
will benefit from our long-term global growth themes: Mass Affluence, New
Technologies, Restructuring and Aging. Adhering to these long-term investment
themes and focusing on the companies that we believe will benefit are what makes
Oppenheimer Global Fund an important part of THE RIGHT WAY TO INVEST.
<TABLE>
<CAPTION>
TOP 10 COUNTRY HOLDINGS(3)
- ----------------------------------------------------------
<S> <C>
United States 43.8%
France 11.0
Germany 10.7
Great Britain 9.3
Japan 5.3
The Netherlands 5.0
Italy 1.7
India 1.3
Ireland 1.2
Singapore 1.2
<CAPTION>
TOP 10 COMMON STOCK HOLDINGS(3)
- ----------------------------------------------------------
<S> <C>
QUALCOMM, Inc. 6.6%
Porsche AG, Preference 3.5
Sun Microsystems, Inc. 3.0
National Semiconductor Corp. 2.8
Volkswagen AG 2.3
Getronics NV 2.2
Wella AG, Preference 2.0
Fresenius AG, Preference 2.0
STMicroelectronics NV, NY Shares 2.0
WPP Group plc 2.0
</TABLE>
3. Portfolio is subject to change. Percentages are as of September 30, 1999, and
are based on total market value of investments.
- -----------------------------------
REGIONAL ALLOCATION(3)
PERCENTAGE OF INVESTED ASSETS
[CHART]
<TABLE>
<S> <C>
- - United States/Canada 44.8%
- - Europe 41.8
- - Asia 9.1
- - Latin America 2.7
- - Emerging Europe 1.5
- - Middle East/Africa 0.1
- -----------------------------------
</TABLE>
6 OPPENHEIMER GLOBAL FUND
<PAGE>
FUND PERFORMANCE
- --------------------------------------------------------------------------------
HOW HAS THE FUND PERFORMED? BELOW IS A DISCUSSION, BY THE MANAGER, OF THE FUND'S
PERFORMANCE DURING ITS FISCAL YEAR ENDED SEPTEMBER 30, 1999, FOLLOWED BY A
GRAPHICAL COMPARISON OF THE FUND'S PERFORMANCE TO AN APPROPRIATE BROAD-BASED
MARKET INDEX.
MANAGEMENT'S DISCUSSION OF PERFORMANCE. During the Fund's fiscal year ended
September 30, 1999, Oppenheimer Global Fund provided very good performance.
Returns were generally attractive over the past year as stocks worldwide
recovered from last year's global credit and currency crisis. The Fund benefited
from its stock selection strategy, including a number of investments in the
technology, telecommunications and consumer durables market sectors. However,
the Fund's performance was constrained by its asset allocation strategy, which
focused on U.S. and European markets instead of the better performing markets in
Japan and other Asian countries. Overall, the Manager continued to adhere to the
long-standing strategy of identifying out-of-favor growth companies most likely
to benefit from four distinct long-term investment themes. The Fund's portfolio
holdings, allocations and strategies are subject to change.
COMPARING THE FUND'S PERFORMANCE TO THE MARKET. The graphs that follow show the
performance of a hypothetical $10,000 investment in Classes A, B, C and Y shares
of the Fund held until September 30, 1999. In the case of Class A shares,
performance is measured over a 10-year period. In the case of Class B shares,
performance is measured since the inception of the class on August 17, 1993. In
the case of Class C shares, performance is measured since the inception of the
class on October 2, 1995; in the case of Class Y shares, since the inception of
the class on November 17, 1998. The Fund's performance reflects the deduction of
the maximum initial sales charge on Class A shares, the applicable contingent
deferred sales charge on Class B and Class C shares, and reinvestments of all
dividends and capital gains distributions.
The Fund's performance is compared to the performance of the Morgan Stanley
Capital International (MSCI) World Index, an unmanaged index of issuers listed
on the stock exchanges of 20 foreign countries and the United States. It is
widely recognized as a measure of global stock market performance. Index
performance reflects the reinvestment of dividends but does not consider the
effect of capital gains or transaction costs, and none of the data in the
following graphs shows the effect of taxes. The Fund's performance reflects the
effects of Fund business and operating expenses. While index comparisons may be
useful to provide a benchmark for the Fund's performance, it must be noted that
the Fund's investments are not limited to the securities or countries in the
Index.
7 OPPENHEIMER GLOBAL FUND
<PAGE>
FUND PERFORMANCE
CLASS A SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Global Fund (Class A)
and Morgan Stanley Capital International (MSCI) World Index
[GRAPH]
<TABLE>
<S> <C>
Oppenheimer Global Fund Class A $32,668
MSCI World Index $27,470
</TABLE>
AVERAGE ANNUAL TOTAL RETURN OF CLASS A SHARES OF THE FUND AT 9/30/99(1)
1-YEAR 32.00% 5-YEAR 14.31% 10-YEAR 12.57%
CLASS B SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Global Fund (Class B)
and Morgan Stanley Capital International (MSCI) World Index
[GRAPH]
<TABLE>
<S> <C>
Oppenheimer Global Fund (Class B) $24,346
MSCI World Index $22,668
</TABLE>
AVERAGE ANNUAL TOTAL RETURN OF CLASS B SHARES OF THE FUND AT 9/30/99(1)
1-YEAR 33.99% 5-YEAR 14.51% LIFE 15.67%
The performance information for MSCI World Index in the graphs begins on 9/30/89
for Class A, 8/31/93 for Class B, 9/30/95 for Class C and 11/30/98 for Class Y.
8 OPPENHEIMER GLOBAL FUND
<PAGE>
CLASS C SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Global Fund (Class C)
and Morgan Stanley Capital International (MSCI) World Index
[GRAPH]
<TABLE>
<S> <C>
Oppenheimer Global Fund (Class C) $18,585
MSCI World Index $18,401
</TABLE>
AVERAGE ANNUAL TOTAL RETURN OF CLASS C SHARES OF THE FUND AT 9/30/99(1)
1-YEAR 37.97% LIFE 16.49%
CLASS Y SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Global Fund (Class Y)
and Morgan Stanley Capital International (MSCI) World Index
[GRAPH]
<TABLE>
<S> <C>
Oppenheimer Global Fund (Class Y) $12,710
MSCI World Index $10,103
</TABLE>
CUMULATIVE TOTAL RETURN OF CLASS Y SHARES OF THE FUND AT 9/30/99(1)
LIFE 27.11%
1. See page 10 for further details.
Past performance is not predictive of future performance. Graphs are not drawn
to the same scale.
9 OPPENHEIMER GLOBAL FUND
<PAGE>
NOTES
- --------------------------------------------------------------------------------
IN REVIEWING PERFORMANCE AND RANKINGS, PLEASE REMEMBER THAT PAST PERFORMANCE
DOES NOT GUARANTEE FUTURE RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. BECAUSE OF ONGOING
MARKET VOLATILITY, THE FUND'S PERFORMANCE MAY BE SUBJECT TO SUBSTANTIAL
SHORT-TERM CHANGES. FOR UPDATES ON THE FUND'S PERFORMANCE, PLEASE CONTACT YOUR
FINANCIAL ADVISOR, CALL US AT 1.800.525.7048 OR VISIT OUR WEBSITE,
www.oppenheimerfunds.com.
Total returns and the ending account values in the graphs include changes in
share price and reinvestment of dividends and capital gains distributions in a
hypothetical investment for the periods shown. Cumulative returns are not
annualized.
CLASS A. The inception date of the Fund was 12/22/69. Class A returns include
the current maximum initial sales charge of 5.75%.
CLASS B shares of the Fund were first publicly offered on 8/17/93. Class B
returns include the applicable contingent deferred sales charge of 5% (1-year)
and 2% (5-year). Because Class B shares convert to Class A shares 72 months
after purchase, the "life-of-class" return for Class B uses Class A performance
for the period after conversion. Class B shares are subject to an annual 0.75%
asset-based sales charge.
CLASS C shares of the Fund were first publicly offered on 10/2/95. Class C
returns include the contingent deferred sales charge of 1% for the 1-year
period. Class C shares are subject to an annual 0.75% asset-based sales charge.
CLASS Y shares of the Fund were first publicly offered on 11/17/98.
Class Y shares are offered only to certain institutional investors under special
agreement with the Distributor.
An explanation of the different performance calculations is in the Fund's
prospectus.
10 OPPENHEIMER GLOBAL FUND
<PAGE>
FINANCIALS
11 OPPENHEIMER GLOBAL FUND
<PAGE>
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS--92.1%
- --------------------------------------------------------------------------------
BASIC MATERIALS--1.1%
- --------------------------------------------------------------------------------
CHEMICALS--1.1%
International Flavors & Fragrances, Inc. 1,668,300 $ 57,556,350
- --------------------------------------------------------------------------------
CAPITAL GOODS--6.4%
- --------------------------------------------------------------------------------
INDUSTRIAL SERVICES--3.7%
Adecco SA 27,098 15,150,754
- --------------------------------------------------------------------------------
Manpower, Inc. 987,900 28,772,587
- --------------------------------------------------------------------------------
Rentokil Initial plc 13,537,000 47,932,284
- --------------------------------------------------------------------------------
WPP Group plc 11,052,000 102,838,696
-------------
194,694,321
- --------------------------------------------------------------------------------
MANUFACTURING--2.7%
Bombardier, Inc., Cl. B 3,303,300 54,736,546
- --------------------------------------------------------------------------------
Sidel SA(1) 250,600 25,514,589
- --------------------------------------------------------------------------------
Societe BIC SA 1,200,438 58,579,334
-------------
138,830,469
- --------------------------------------------------------------------------------
COMMUNICATION SERVICES--6.3%
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS: LONG DISTANCE--1.7%
MCI WorldCom, Inc.(2) 549,300 39,480,937
- --------------------------------------------------------------------------------
Telstra Corp. Ltd. 9,709,200 50,322,291
-------------
89,803,228
- --------------------------------------------------------------------------------
TELEPHONE UTILITIES--2.3%
Hellenic Telecommunication Organization SA 2,000,000 46,674,446
- --------------------------------------------------------------------------------
Portugal Telecom SA 606,300 25,234,327
- --------------------------------------------------------------------------------
Tele Norte Leste Participacoes SA (Telemar),
Preference 3,079,867,000 49,245,790
-------------
121,154,563
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS: WIRELESS--2.3%
NTT Mobile Communications Network, Inc.(1) 2,958 58,343,195
- --------------------------------------------------------------------------------
Telecom Italia Mobile SpA 9,617,900 59,819,491
-------------
118,162,686
</TABLE>
12 OPPENHEIMER GLOBAL FUND
<PAGE>
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER CYCLICALS--13.2%
- --------------------------------------------------------------------------------
AUTOS & HOUSING--8.2%
Autoliv, Inc., SDR 1,246,000 $ 46,964,382
- --------------------------------------------------------------------------------
Hanson plc 6,542,366 50,425,234
- --------------------------------------------------------------------------------
IRSA-Inversiones y Representaciones SA 7,426,052 20,871,380
- --------------------------------------------------------------------------------
Porsche AG, Preference 68,036 184,044,185
- --------------------------------------------------------------------------------
Solidere, GDR(2,3) 540,000 4,279,500
- --------------------------------------------------------------------------------
Volkswagen AG 2,170,200 122,034,687
--------------
428,619,368
- --------------------------------------------------------------------------------
LEISURE & ENTERTAINMENT--2.1%
Hasbro, Inc. 1,675,600 35,920,675
- --------------------------------------------------------------------------------
International Game Technology(1) 2,164,900 38,968,200
- --------------------------------------------------------------------------------
Nintendo Co. Ltd. 222,000 35,404,903
--------------
110,293,778
- --------------------------------------------------------------------------------
MEDIA--1.2%
Reed International plc 6,712,500 40,405,354
- --------------------------------------------------------------------------------
Singapore Press Holdings Ltd. 1,511,000 23,813,467
--------------
64,218,821
- --------------------------------------------------------------------------------
RETAIL: SPECIALTY--1.7%
Circuit City Stores-Circuit City Group 1,125,800 47,494,687
- --------------------------------------------------------------------------------
Dixons Group plc 2,189,779 39,020,675
--------------
86,515,362
- --------------------------------------------------------------------------------
CONSUMER STAPLES--9.5%
- --------------------------------------------------------------------------------
BEVERAGES--1.2%
Cadbury Schweppes plc 8,371,700 58,148,161
- --------------------------------------------------------------------------------
Cia Cervejaria Brahma, Preference 9,075,000 5,459,227
--------------
63,607,388
- --------------------------------------------------------------------------------
BROADCASTING--5.1%
Canal Plus 1,481,565 88,518,324
- --------------------------------------------------------------------------------
Grupo Televisa SA, Sponsored GDR(1,2) 1,112,600 44,434,462
- --------------------------------------------------------------------------------
ProSieben Media AG, Preference 986,065 42,058,877
- --------------------------------------------------------------------------------
Television Broadcasts Ltd. 4,000,000 17,096,218
- --------------------------------------------------------------------------------
Television Francaise 1 200,000 55,955,100
- --------------------------------------------------------------------------------
Telewest Communications plc(2) 4,870,400 17,846,863
--------------
265,909,844
</TABLE>
13 OPPENHEIMER GLOBAL FUND
<PAGE>
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- -------------------------------------------------------------------------------
<S> <C> <C>
ENTERTAINMENT--0.5%
Disney (Walt) Co. 922,300 $ 23,864,513
- -------------------------------------------------------------------------------
FOOD & DRUG RETAILERS--0.7%
Dairy Farm International Holdings Ltd. 36,683,456 36,500,039
- -------------------------------------------------------------------------------
HOUSEHOLD GOODS--2.0%
Wella AG, Preference1 3,545,710 105,733,073
- -------------------------------------------------------------------------------
ENERGY--0.4%
- -------------------------------------------------------------------------------
OIL: INTERNATIONAL--0.4%
BP Amoco plc, ADR 201,717 22,352,765
- -------------------------------------------------------------------------------
FINANCIAL--10.6%
- -------------------------------------------------------------------------------
BANKS--1.1%
UniCredito Italiano SpA 5,454,900 26,665,461
- -------------------------------------------------------------------------------
Royal Bank of Scotland Group (The) plc 1,400,000 30,065,807
--------------
56,731,268
- -------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL--6.2%
American Express Co. 400,000 53,850,000
- -------------------------------------------------------------------------------
Associates First Capital Corp., Cl. A 573,200 20,635,200
- -------------------------------------------------------------------------------
Credit Saison Co. Ltd.(1) 1,500,000 34,939,420
- -------------------------------------------------------------------------------
Fannie Mae 800,000 50,150,000
- -------------------------------------------------------------------------------
Goldman Sachs Group, Inc. (The)(1) 62,600 3,818,600
- -------------------------------------------------------------------------------
Housing Development Finance Corp. Ltd. 1,189,100 7,248,614
- -------------------------------------------------------------------------------
ICICI Ltd. 50 100
- -------------------------------------------------------------------------------
ICICI Ltd., GDR(1,3) 5,224,900 62,045,688
- -------------------------------------------------------------------------------
Lehman Brothers Holdings, Inc.(2) 946,500 55,192,781
- -------------------------------------------------------------------------------
Morgan Stanley Dean Witter & Co. 76,100 6,787,169
- -------------------------------------------------------------------------------
Nichiei Co. Ltd.(1) 387,600 29,669,766
--------------
324,337,338
- -------------------------------------------------------------------------------
INSURANCE--3.3%
AEGON NV 602,300 51,829,120
- -------------------------------------------------------------------------------
Allied Zurich plc 4,402,900 51,700,600
- -------------------------------------------------------------------------------
American International Group, Inc.(4) 244,125 21,223,617
- -------------------------------------------------------------------------------
AXA SA 366,600 46,382,966
--------------
171,136,303
- -------------------------------------------------------------------------------
REAL ESTATE INVESTMENT TRUSTS--0.0%
Unit Trust of India-Masterplus 91(2) 1,900 1,042
</TABLE>
14 OPPENHEIMER GLOBAL FUND
<PAGE>
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- ------------------------------------------------------------------------------
<S> <C> <C>
HEALTHCARE--12.9%
- ------------------------------------------------------------------------------
HEALTHCARE/DRUGS--9.3%
Amgen, Inc.(2) 605,000 $ 49,307,500
- ------------------------------------------------------------------------------
Eisai Co. Ltd. 2,367,000 60,025,359
- ------------------------------------------------------------------------------
Elan Corp. plc, ADR(1,2) 1,889,000 63,399,563
- ------------------------------------------------------------------------------
Fresenius AG, Preference 603,496 105,342,340
- ------------------------------------------------------------------------------
Genzyme Corp. (General Division)(2) 736,100 33,170,506
- ------------------------------------------------------------------------------
Gilead Sciences, Inc.(1,2) 798,700 51,266,556
- ------------------------------------------------------------------------------
Glaxo Wellcome plc, Sponsored ADR(1) 500,000 26,000,000
- ------------------------------------------------------------------------------
Millennium Pharmaceuticals, Inc.(1,2) 839,200 54,548,000
- ------------------------------------------------------------------------------
Pliva d.d., Sponsored GDR(1,3) 658,550 6,684,283
- ------------------------------------------------------------------------------
Taisho Pharmaceutical Co. 865,000 36,397,107
-------------
486,141,214
- ------------------------------------------------------------------------------
HEALTHCARE/SUPPLIES & SERVICES--3.6%
Affymetrix, Inc.(1,2) 567,700 55,882,969
- ------------------------------------------------------------------------------
Bard (C.R.), Inc. 595,100 28,006,894
- ------------------------------------------------------------------------------
Cardinal Health, Inc. 381,400 20,786,300
- ------------------------------------------------------------------------------
Hoya Corp. 342,000 20,686,391
- ------------------------------------------------------------------------------
Quintiles Transnational Corp.(1,2) 1,924,800 36,631,350
- ------------------------------------------------------------------------------
Swiss Medical SA(2,5,6) 300,000 25,398,000
-------------
187,391,904
- ------------------------------------------------------------------------------
TECHNOLOGY--30.8%
- ------------------------------------------------------------------------------
COMPUTER HARDWARE--4.6%
International Business Machines Corp. 700,000 84,962,500
- ------------------------------------------------------------------------------
Sun Microsystems, Inc.(2) 1,661,000 154,473,000
-------------
239,435,500
- ------------------------------------------------------------------------------
COMPUTER SERVICES--1.4%
Cap Gemini SA(1) 479,200 75,531,504
- ------------------------------------------------------------------------------
COMPUTER SOFTWARE--6.1%
Cadence Design Systems, Inc.(1,2) 5,565,100 73,737,575
- ------------------------------------------------------------------------------
Getronics NV 2,157,775 116,395,239
- ------------------------------------------------------------------------------
Lernout & Hauspie Speech Products NV(1,2) 1,215,800 42,401,025
- ------------------------------------------------------------------------------
Oracle Corp.(2) 1,415,000 64,382,500
- ------------------------------------------------------------------------------
Synopsys, Inc.(2) 397,300 22,310,878
-------------
319,227,217
</TABLE>
15 OPPENHEIMER GLOBAL FUND
<PAGE>
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMUNICATIONS EQUIPMENT--12.1%
Alcatel 557,900 $76,884,757
- --------------------------------------------------------------------------------
Cisco Systems, Inc.(2) 1,116,000 76,515,750
- --------------------------------------------------------------------------------
Nokia Corp., A Shares, Sponsored ADR(1) 519,850 46,689,028
- --------------------------------------------------------------------------------
QUALCOMM, Inc.(1,2) 1,810,000 342,429,375
- --------------------------------------------------------------------------------
Scientific-Atlanta, Inc. 1,806,600 89,539,613
-------------
632,058,523
- --------------------------------------------------------------------------------
ELECTRONICS--6.6%
Koninklijke (Royal) Philips Electronics NV 920,000 92,591,101
- --------------------------------------------------------------------------------
National Semiconductor Corp.(2) 4,836,500 147,513,250
- --------------------------------------------------------------------------------
STMicroelectronics NV, NY Shares(1) 1,401,400 103,703,600
-------------
343,807,951
- --------------------------------------------------------------------------------
UTILITIES--0.9%
- --------------------------------------------------------------------------------
ELECTRIC UTILITIES--0.9%
Vivendi (Ex-Generale des Eaux) 654,545 45,973,114
-------------
Total Common Stocks (Cost $3,484,256,751) 4,809,589,446
</TABLE>
<TABLE>
<CAPTION>
FACE
AMOUNT
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<S> <C> <C>
SHORT-TERM NOTES--6.5%7
CIESCO LP, 5.26%, 10/6/99 $ 50,000,000 49,963,472
- --------------------------------------------------------------------------------
Countrywide Home Loans, 5.45%, 10/1/99 5,000,000 5,000,000
- --------------------------------------------------------------------------------
Ford Motor Credit Co., 5.29%, 10/13/99 50,000,000 49,911,833
- --------------------------------------------------------------------------------
GE Capital International Funding, Inc., 5.31%, 11/5/99 50,000,000 49,741,875
- --------------------------------------------------------------------------------
General Motors Acceptance Corp., 5.23%, 10/1/99 50,000,000 50,000,000
- --------------------------------------------------------------------------------
GTE Corp., 5.41%, 10/22/99 25,000,000 24,921,104
- --------------------------------------------------------------------------------
Merrill Lynch & Co., Inc., 5.30%, 11/9/99 50,000,000 49,712,917
- --------------------------------------------------------------------------------
Motiva Enterprises LLC, 5.28%, 10/8/99 30,000,000 29,969,200
- --------------------------------------------------------------------------------
Xerox Capital (Europe) plc, 5.29%, 11/9/99 30,000,000 29,828,075
------------
Total Short-Term Notes (Cost $339,048,476) 339,048,476
</TABLE>
16 OPPENHEIMER GLOBAL FUND
<PAGE>
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENTS--1.6%
Repurchase agreement with PaineWebber, Inc., 5.29%,
dated 9/30/99, to be repurchased at $83,412,255 on
10/1/99, collateralized by U.S. Treasury Bills, 12/23/99-
7/20/00, with a value of $76,561,056, U.S. Treasury Nts.,
7.875%, 11/15/04, with a value of $8,560,771 (Cost $83,400,000) $ 83,400,000 $ 83,400,000
- ----------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $3,906,705,227) 100.2% 5,232,037,922
- ----------------------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS (0.2) (12,411,314)
-----------------------------------
NET ASSETS 100.0% $5,219,626,608
-----------------------------------
-----------------------------------
</TABLE>
FOOTNOTES TO STATEMENT OF INVESTMENTS
1. 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 $73,009,471 or 1.40% of the Fund's net
assets as of September 30, 1999.
4. A sufficient amount of securities has been designated to cover outstanding
foreign currency exchange contracts. See Note 5 of Notes to Financial
Statements.
5. Identifies issues considered to be illiquid or restricted--See Note 6 of
Notes to Financial Statements.
6. Affiliated company. Represents ownership of at least 5% of the voting
securities of the issuer, and is or was an affiliate, as defined in the
Investment Company Act of 1940, at or during the period ended September 30,
1999. The aggregate fair value of securities of affiliated companies held by the
Fund as of September 30, 1999, amounts to $25,398,000. 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 SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Swiss Medical SA 300,000 -- -- 300,000
</TABLE>
7. 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.
17 OPPENHEIMER GLOBAL FUND
<PAGE>
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS CONTINUED
- --------------------------------------------------------------------------------
FOOTNOTES TO STATEMENT OF INVESTMENTS CONTINUED
DISTRIBUTION OF INVESTMENTS REPRESENTING GEOGRAPHIC DIVERSIFICATION, AS A
PERCENTAGE OF TOTAL INVESTMENTS AT VALUE, IS AS FOLLOWS:
<TABLE>
<CAPTION>
GEOGRAPHIC DIVERSIFICATION MARKET VALUE PERCENT
- --------------------------------------------------------------------------------
<S> <C> <C>
United States $2,291,628,308 43.8%
France 577,043,288 11.0
Germany 559,213,162 10.7
Great Britain 486,736,440 9.3
Japan 275,466,141 5.3
The Netherlands 260,815,460 5.0
Italy 86,484,952 1.7
India 69,295,443 1.3
Ireland 63,399,563 1.2
Singapore 60,313,505 1.2
Canada 54,736,546 1.0
Brazil 54,705,017 1.0
Australia 50,322,291 1.0
Sweden 46,964,382 0.9
Finland 46,689,028 0.9
Greece 46,674,446 0.9
Argentina 46,269,380 0.9
Mexico 44,434,463 0.8
Belgium 42,401,025 0.8
Portugal 25,234,327 0.5
Hong Kong 17,096,218 0.3
Switzerland 15,150,754 0.3
Croatia 6,684,283 0.1
Lebanon 4,279,500 0.1
------------------------------------
Total $5,232,037,922 100.0%
------------------------------------
------------------------------------
</TABLE>
See accompanying Notes to Financial Statements.
18 OPPENHEIMER GLOBAL FUND
<PAGE>
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<S> <C>
ASSETS
Investments, at value--see accompanying statement:
Unaffiliated companies (cost $3,893,415,227) $5,206,639,922
Affiliated companies (cost $13,290,000) 25,398,000
- --------------------------------------------------------------------------------
Collateral for securities loaned--Note 8 457,274,301
- --------------------------------------------------------------------------------
Receivables and other assets:
Shares of beneficial interest sold 17,791,861
Interest and dividends 10,869,491
Investments sold 1,756,353
Closed foreign currency exchange contracts 16,501
Other 104,695
--------------
Total assets 5,719,851,124
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
LIABILITIES
Bank overdraft 646,175
- --------------------------------------------------------------------------------
Return of collateral for securities loaned--Note 8 457,274,301
- --------------------------------------------------------------------------------
Unrealized depreciation on foreign currency
exchange contracts--Note 5 6,917,930
- --------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 19,954,406
Shares of beneficial interest redeemed 9,424,248
Distribution and service plan fees 2,824,758
Transfer and shareholder servicing agent fees 1,903,666
Trustees' compensation--Note 1 417,284
Other 861,748
--------------
Total liabilities 500,224,516
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NET ASSETS $5,219,626,608
--------------
--------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
Paid-in capital $3,463,388,155
- --------------------------------------------------------------------------------
Undistributed net investment income 9,192,241
- --------------------------------------------------------------------------------
Accumulated net realized gain on investments and
foreign currency transactions 427,190,764
- --------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of
assets and liabilities denominated in foreign currencies 1,319,855,448
--------------
Net assets $5,219,626,608
--------------
--------------
</TABLE>
19 OPPENHEIMER GLOBAL FUND
<PAGE>
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES CONTINUED
- --------------------------------------------------------------------------------
<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
$3,780,167,987 and 76,361,297 shares of beneficial interest outstanding) $49.50
Maximum offering price per share (net asset value plus sales charge
of 5.75% of offering price) $52.52
- -----------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $1,250,244,723
and 26,021,638 shares of beneficial interest outstanding) $48.05
- -----------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $152,620,422
and 3,138,417 shares of beneficial interest outstanding) $48.63
- -----------------------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based on
net assets of $36,593,476 and 738,597 shares of beneficial interest outstanding) $49.54
</TABLE>
See accompanying Notes to Financial Statements
20 OPPENHEIMER GLOBAL FUND
<PAGE>
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS FOR THE YEAR ENDED SEPTEMBER 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME
Dividends (net of foreign withholding taxes of $2,670,730) $ 53,847,941
- --------------------------------------------------------------------------------
Interest 16,173,109
- --------------------------------------------------------------------------------
Lending fees--Note 8 2,609,135
--------------
Total income 72,630,185
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
EXPENSES
Management fees--Note 4 32,640,013
- --------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 7,429,983
Class B 11,206,707
Class C 1,251,660
- --------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4:
Class A 6,077,985
Class B 1,963,250
Class C 219,537
Class Y 3,478
- --------------------------------------------------------------------------------
Custodian fees and expenses 1,569,773
- --------------------------------------------------------------------------------
Shareholder reports 1,462,076
- --------------------------------------------------------------------------------
Trustees' compensation--Note 1 210,531
- --------------------------------------------------------------------------------
Legal, auditing and other professional fees 104,560
- --------------------------------------------------------------------------------
Other 416,677
--------------
Total expenses 64,556,230
Less expenses paid indirectly--Note 1 (14,144)
--------------
Net expenses 64,542,086
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NET INVESTMENT INCOME 8,088,099
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments 534,479,821
Foreign currency transactions (95,160,436)
--------------
Net realized gain 439,319,385
- --------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments 1,112,497,848
Translation of assets and liabilities denominated in foreign
currencies (48,260,449)
--------------
Net change 1,064,237,399
--------------
Net realized and unrealized gain 1,503,556,784
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $1,511,644,883
--------------
--------------
</TABLE>
See accompanying Notes to Financial Statements.
21 OPPENHEIMER GLOBAL FUND
<PAGE>
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30, 1999 1998
- --------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
Net investment income $ 8,088,099 $ 34,622,509
- --------------------------------------------------------------------------------------------------------
Net realized gain 439,319,385 409,137,307
- --------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation 1,064,237,399 (882,273,171)
--------------------------------------
Net increase (decrease) in net assets resulting from operations 1,511,644,883 (438,513,355)
- --------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income:
Class A (29,230,334) (56,873,734)
Class B (2,646,395) (9,622,535)
Class C (395,293) (754,610)
Class Y (48,417) --
- --------------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (224,656,064) (393,765,656)
Class B (72,313,989) (109,218,961)
Class C (7,421,523) (7,621,412)
Class Y (298,614) --
- --------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
Net increase in net assets resulting from beneficial
interest transactions--Note 2:
Class A 7,032,546 262,647,406
Class B 78,987,065 230,002,915
Class C 31,852,258 51,057,171
Class Y 34,177,957 --
- --------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------
NET ASSETS
Total increase (decrease) 1,326,684,080 (472,662,771)
- --------------------------------------------------------------------------------------------------------
Beginning of period 3,892,942,528 4,365,605,299
--------------------------------------
End of period (including undistributed net investment
income of $9,192,241 and $31,649,782, respectively) $ 5,219,626,608 $ 3,892,942,528
--------------------------------------
--------------------------------------
</TABLE>
See accompanying Notes to Financial Statements.
22 OPPENHEIMER GLOBAL FUND
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS A YEAR ENDED SEPTEMBER 30, 1999 1998 1997 1996 1995
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA
Net asset value, beginning of period $38.34 $49.32 $39.00 $36.84 $37.69
- ---------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .17 1.08 .32 .23 .31
Net realized and unrealized gain (loss) 14.37 (5.49) 11.91 4.22 2.59
--------------------------------------------------------------
Total income (loss) from
investment operations 14.54 (4.41) 12.23 4.45 2.90
- ---------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.39) (.83) (.53) (.24) -
Distributions from net realized gain (2.99) (5.74) (1.38) (2.05) (3.75)
--------------------------------------------------------------
Total dividends and distributions
to shareholders (3.38) (6.57) (1.91) (2.29) (3.75)
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $49.50 $38.34 $49.32 $39.00 $36.84
--------------------------------------------------------------
--------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(1) 40.05% (9.85)% 32.85% 12.98% 9.26%
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $3,780 $2,905 $3,408 $2,499 $2,186
- ---------------------------------------------------------------------------------------------------------------------------
Average net assets (in millions) $3,475 $3,381 $2,869 $2,309 $1,979
- ---------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(2)
Net investment income (loss) 0.37% 0.96% 0.74% 0.62% 0.90%
Expenses 1.16% 1.14%(3) 1.13%(3) 1.17%(3) 1.20%(3)
- ---------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(4) 68% 65% 66% 103% 84%
</TABLE>
1. 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.
2. Annualized for periods of less than one full year.
3. Expense ratio reflects the effect of expenses paid indirectly by the Fund.
4. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities owned
during the period. Securities with a maturity or expiration date at the time of
acquisition of one year or less are excluded from the calculation. Purchases and
sales of investment securities (excluding short-term securities) for the period
ended September 30, 1999, were $3,022,561,699 and $3,301,050,770, respectively.
See accompanying Notes to Financial Statements.
23 OPPENHEIMER GLOBAL FUND
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS B YEAR ENDED SEPTEMBER 30, 1999 1998 1997 1996 1995
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA
Net asset value, beginning of period $37.32 $48.19 $38.19 $36.16 $37.36
- ---------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.16) .69 (.04) (.05) .06
Net realized and unrealized gain (loss) 13.99 (5.31) 11.68 4.13 2.49
-------------------------------------------------------------
Total income (loss) from
investment operations 13.83 (4.62) 11.64 4.08 2.55
- ---------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.11) (.51) (.26)
Distributions from net realized gain (2.99) (5.74) (1.38) (2.05) (3.75)
-------------------------------------------------------------
Total dividends and distributions
to shareholders (3.10) (6.25) (1.64) (2.05) (3.75)
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $48.05 $37.32 $48.19 $38.19 $36.16
-------------------------------------------------------------
-------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(1) 38.99% (10.56)% 31.77% 12.07% 8.34%
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $1,250 $897 $897 $541 $340
- ---------------------------------------------------------------------------------------------------------------------------
Average net assets (in millions) $1,122 $966 $692 $438 $258
- ---------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(2)
Net investment income (loss) (0.40)% 0.20% (0.23)% (0.17)% 0.09%
Expenses 1.94% 1.91%(3) 1.94%(3) 2.00%(3) 2.03%(3)
- ---------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(4) 68% 65% 66% 103% 84%
</TABLE>
1. 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.
2. Annualized for periods of less than one full year.
3. Expense ratio reflects the effect of expenses paid indirectly by the Fund.
4. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities owned
during the period. Securities with a maturity or expiration date at the time of
acquisition of one year or less are excluded from the calculation. Purchases and
sales of investment securities (excluding short-term securities) for the period
ended September 30, 1999, were $3,022,561,699 and $3,301,050,770, respectively.
See accompanying Notes to Financial Statements.
24 OPPENHEIMER GLOBAL FUND
<PAGE>
<TABLE>
<CAPTION>
CLASS C CLASS Y
YEAR PERIOD
ENDED ENDED
SEPT. 30, SEPT. 30,
1999 1998 1997 1996(5) 1999(7)
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
<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) (.08) .75 (.08) .09 .63
Net realized and unrealized gain (loss) 14.07 (5.42) 11.86 4.13 10.00
---------------------------------------------------------------
Total income (loss) from
investment operations 13.99 (4.67) 11.78 4.22 10.63
- ---------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.16) (.57) (.36) (.11) (.48)
Distributions from net realized gain (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 $48.63 $37.79 $48.77 $38.73 $49.54
---------------------------------------------------------------
---------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(1) 38.97% (10.53)% 31.76% 12.34% 27.11%
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $153 $91 $60 $18 $37
- ---------------------------------------------------------------------------------------------------------------------------
Average net assets (in millions) $125 $79 $35 $8 $17
- ---------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(2)
Net investment income (loss) (0.38)% 0.23% (0.86)%(6) 0.04% 1.07%
Expenses 1.94% 1.91%(3) 1.94%(3) 1.99%(3) 0.78%
- ---------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(4) 68% 65% 66% 103% 68%
</TABLE>
1. 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.
2. Annualized for periods of less than one full year.
3. Expense ratio reflects the effect of expenses paid indirectly by the Fund.
4. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities owned
during the period. Securities with a maturity or expiration date at the time of
acquisition of one year or less are excluded from the calculation. Purchases and
sales of investment securities (excluding short-term securities) for the period
ended September 30, 1999, were $3,022,561,699 and $3,301,050,770, respectively.
5. For the period from October 2, 1995 (inception of offering) to September 30,
1996.
6. 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.
7. For the period from November 17, 1998 (inception of offering) to
September 30, 1999.
See accompanying Notes to Financial Statements.
25 OPPENHEIMER GLOBAL FUND
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Global Fund (the Fund) is registered under the Investment Company
Act of 1940, as amended, as a diversified, open-end management investment
company. The Fund's investment objective is to seek 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, except for purchases greater than $1 million.
Class B and Class C shares may be subject to a contingent deferred sales charge
(CDSC). Class Y shares are sold to certain institutional investors without
either a front-end sales charge or a CDSC. All classes of shares have identical
rights to earnings, assets and voting privileges, except that each class has its
own expenses directly attributable to that class and exclusive voting rights
with respect to matters affecting that class. Classes A, B and C have separate
distribution and/or service plans. No such plan has been adopted for Class Y
shares. 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.
- --------------------------------------------------------------------------------
SECURITIES 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.
Options are valued based upon the last sale price on the principal exchange on
which the option is traded or, in the absence of any transactions that day, the
value is based upon the last sale price on the prior trading date if it is
within the spread between the closing bid and asked prices. If the last sale
price is outside the spread, the closing bid is used.
- --------------------------------------------------------------------------------
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.
26 OPPENHEIMER GLOBAL FUND
<PAGE>
The effect of changes in foreign currency exchange rates on investments is
separately identified from the fluctuations arising from changes in market
values of securities held and reported with all other foreign currency gains and
losses in the Fund's Statement of Operations.
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS. The Fund requires the custodian to take possession, to
have legally segregated in the Federal Reserve Book Entry System or to have
segregated within the custodian's vault, all securities held as collateral for
repurchase agreements. The market value of the underlying securities is required
to be at least 102% of the resale price at the time of purchase. If the seller
of the agreement defaults and the value of the collateral declines, or if the
seller enters an insolvency proceeding, realization of the value of the
collateral by the Fund may be delayed or limited.
- --------------------------------------------------------------------------------
ALLOCATION OF INCOME, EXPENSES, 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. As of September 30,
1999, the Fund had available for federal income tax purposes an unused capital
loss carryover of approximately $9,652,000, which expires between 2000 and 2004.
The capital loss carryover was acquired in connection with the Oppenheimer
Global Emerging Growth Fund merger. There are certain limitations to the amount
that may be used each year.
- --------------------------------------------------------------------------------
TRUSTEES' 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 year ended
September 30, 1999, a provision of $77,719 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 $354,150 as of September 30, 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 compensation 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 Trustees 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.
27 OPPENHEIMER GLOBAL FUND
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS CONTINUED
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES CONTINUED
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations,
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 distributions made
during the year from net investment income or net realized gains may differ from
its ultimate characterization for federal income tax purposes. Also, due to
timing of dividend distributions, the fiscal year in which amounts are
distributed may differ from the fiscal year in which the income or realized gain
was recorded by the Fund.
The Fund adjusts the classification of distributions to shareholders to
reflect the differences between financial statement amounts and distributions
determined in accordance with income tax regulations. Accordingly, during the
year ended September 30, 1999, amounts have been reclassified to reflect an
increase in paid-in capital of $9,071,277, an increase in undistributed net
investment income of $1,774,799, and a decrease in accumulated net realized gain
on investments of $10,846,076.
- --------------------------------------------------------------------------------
EXPENSE OFFSET ARRANGEMENTS. Expenses paid indirectly represent a reduction of
custodian fees for earnings on cash balances maintained by the Fund.
- --------------------------------------------------------------------------------
Other. Investment transactions are accounted for as of trade date and dividend
income is recorded on the ex-dividend date. Foreign dividend income is often
recorded on the payable 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.
28 OPPENHEIMER GLOBAL FUND
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
2. SHARES OF BENEFICIAL INTEREST
The Fund has authorized an unlimited number of no par value shares of beneficial
interest of each class. Transactions in shares of beneficial interest were as
follows:
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30, 1999 YEAR ENDED SEPTEMBER 30, 1998
SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CLASS A
Sold 21,868,208 $ 985,462,142 14,196,415 $ 630,090,478
Dividends and/or
distributions reinvested 6,076,163 242,196,637 10,509,965 432,695,731
Redeemed (27,344,921) (1,220,626,233) (18,038,607) (800,138,803)
--------------------------------------------------------------------
Net increase 599,450 $ 7,032,546 6,667,773 $ 262,647,406
--------------------------------------------------------------------
--------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------
CLASS B
Sold 5,423,184 $ 237,546,597 6,370,879 $ 277,884,257
Dividends and/or
distributions reinvested 1,838,492 71,590,602 2,816,048 113,599,323
Redeemed (5,285,928) (230,150,134) (3,761,661) (161,480,665)
--------------------------------------------------------------------
Net increase 1,975,748 $ 78,987,065 5,425,266 $ 230,002,915
--------------------------------------------------------------------
--------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------
CLASS C
Sold 2,142,998 $ 95,584,924 1,722,952 $ 75,968,436
Dividends and/or
distributions reinvested 188,857 7,442,891 196,350 8,016,932
Redeemed (1,593,990) (71,175,557) (756,877) (32,928,197)
--------------------------------------------------------------------
Net increase 737,865 $ 31,852,258 1,162,425 $ 51,057,171
--------------------------------------------------------------------
--------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------
CLASS Y
Sold 855,756 $ 39,826,282 -- $ --
Dividends and/or
distributions reinvested 8,723 346,949 -- --
Redeemed (125,882) (5,995,274) -- --
--------------------------------------------------------------------
Net increase 738,597 $ 34,177,957 -- $ --
--------------------------------------------------------------------
--------------------------------------------------------------------
</TABLE>
29 OPPENHEIMER GLOBAL FUND
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS CONTINUED
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
3. UNREALIZED GAINS AND LOSSES ON SECURITIES
As of September 30, 1999, net unrealized appreciation on securities of
$1,325,332,695 was composed of gross appreciation of $1,545,202,157, and gross
depreciation of $219,869,462.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
4. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
MANAGEMENT FEES. 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
year ended September 30, 1999, was 0.69% of average annual net assets for each
class of shares.
- --------------------------------------------------------------------------------
TRANSFER AGENT FEES. 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.
- --------------------------------------------------------------------------------
DISTRIBUTION AND SERVICE PLAN FEES. Under its General Distributor's Agreement
with the Manager, the Distributor acts as the Fund's principal underwriter in
the continuous public offering of the different classes of shares of the Fund.
The compensation paid to (or retained by) the Distributor from the sale of
shares or on the redemption of shares is shown in the table below for the period
indicated.
<TABLE>
<CAPTION>
AGGREGATE CLASS A COMMISSIONS COMMISSIONS COMMISSIONS
FRONT-END FRONT-END ON CLASS A ON CLASS B ON CLASS C
SALES CHARGES SALES CHARGES SHARES SHARES SHARES
ON CLASS A RETAINED BY ADVANCED BY ADVANCED BY ADVANCED BY
YEAR ENDED SHARES DISTRIBUTOR DISTRIBUTOR(1) DISTRIBUTOR(1) DISTRIBUTOR(1)
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
September 30, 1999 $4,813,415 $1,429,704 $737,421 $6,375,406 $485,546
</TABLE>
1. The Distributor advances commission payments to dealers for certain sales of
Class A shares and for sales of Class B and Class C shares from its own
resources at the time of sale.
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C
CONTINGENT DEFERRED CONTINGENT DEFERRED CONTINGENT DEFERRED
SALES CHARGES SALES CHARGES SALES CHARGES
YEAR ENDED RETAINED BY DISTRIBUTOR RETAINED BY DISTRIBUTOR RETAINED BY DISTRIBUTOR
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
September 30, 1999 $17,856 $1,941,000 $41,489
</TABLE>
The Fund has adopted a Service Plan for Class A shares and Distribution and
Service Plans for Class B and Class C shares under Rule 12b-1 of the Investment
Company Act. Under those plans the Fund pays the Distributor for all or a
portion of its costs incurred in connection with the distribution and/or
servicing of the shares of the particular class.
30 OPPENHEIMER GLOBAL FUND
<PAGE>
- --------------------------------------------------------------------------------
CLASS A SERVICE PLAN FEES. Under the Class A service plan, the Distributor
currently uses the fees it receives from the Fund to pay brokers, dealers and
other financial institutions. The Class A service plan permits reimbursements to
the Distributor at a rate of up to 0.25% of average annual net assets of Class A
shares. The Distributor makes payments to plan recipients quarterly at an annual
rate not to exceed 0.25% of the average annual net assets consisting of Class A
shares of the Fund. For the fiscal year ended September 30, 1999, payments under
the Class A Plan totaled $7,429,983, all of which was paid by the Distributor to
recipients. That included $468,338 paid to an affiliate of the Distributor's
parent company. Any unreimbursed expenses the Distributor incurs with respect to
Class A shares in any fiscal year cannot be recovered in subsequent years.
- --------------------------------------------------------------------------------
CLASS B AND CLASS C DISTRIBUTION AND SERVICE PLAN FEES. Under each plan, service
fees and distribution fees are computed on the average of the net asset value of
shares in the respective class, determined as of the close of each regular
business day during the period. The Class B and Class C plans provide for the
Distributor to be compensated at a flat rate, whether the Distributor's
distribution expenses are more or less than the amounts paid by the Fund under
the plan during the period for which the fee is paid.
The Distributor retains the asset-based sales charge on Class B shares. The
Distributor retains the asset-based sales charge on Class C shares during the
first year the shares are outstanding. The asset-based sales charges on Class B
and Class C shares allow investors to buy shares without a front-end sales
charge while allowing the Distributor to compensate dealers that sell those
shares.
The Distributor's actual expenses in selling Class B and Class C shares may
be more than the payments it receives from the contingent deferred sales charges
collected on redeemed shares and from the Fund under the plans. If either the
Class B or the Class C plan is terminated by the Fund, the Board of Trustees may
allow the Fund to continue payments of the asset-based sales charge to the
Distributor for distributing shares before the plan was terminated. The plans
allow for the carry-forward of distribution expenses, to be recovered from
asset-based sales charges in subsequent fiscal periods.
Distribution fees paid to the Distributor for the year ended September 30, 1999,
were as follows:
<TABLE>
<CAPTION>
DISTRIBUTOR'S DISTRIBUTOR'S
AGGREGATE UNREIMBURSED
UNREIMBURSED EXPENSES AS %
TOTAL PAYMENTS AMOUNT RETAINED EXPENSES OF NET ASSETS
UNDER PLAN BY DISTRIBUTOR UNDER PLAN OF CLASS
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class B Plan $11,206,707 $8,918,172 $18,984,884 1.52%
Class C Plan 1,251,660 687,521 1,336,154 0.88
</TABLE>
31 OPPENHEIMER GLOBAL FUND
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 fluctuations. 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 transactions. 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.
As of September 30, 1999, the Fund had outstanding foreign currency contracts as
follows:
<TABLE>
<CAPTION>
CONTRACT VALUATION AS OF UNREALIZED
CONTRACT DESCRIPTION EXPIRATION DATE AMOUNT (000S) SEPT. 30, 1999 DEPRECIATION
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Japanese Yen (JPY) 12/8/99 JPY17,794,500 $168,980,772 $6,917,930
</TABLE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
6. ILLIQUID OR RESTRICTED SECURITIES
As of September 30, 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 also 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 limitation. The aggregate value of illiquid or restricted
securities subject to this limitation as of September 30, 1999, was $25,398,000,
which represents 0.49% of the Fund's net assets, all of which is considered
restricted. Information concerning restricted securities is as follows:
<TABLE>
<CAPTION>
VALUATION
PER UNIT AS OF
SECURITY ACQUISITION DATE COST PER UNIT SEPT. 30, 1999
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
STOCKS AND WARRANTS
Swiss Medical SA 10/28/97 $44.30 $84.66
</TABLE>
32 OPPENHEIMER GLOBAL FUND
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
7. BANK BORROWINGS
The Fund may borrow from a bank for temporary or emergency purposes including,
without limitation, funding of shareholder redemptions provided asset coverage
for borrowings exceeds 300%. The Fund has entered into an agreement which
enables it to participate with other Oppenheimer funds in an unsecured line of
credit with a bank, which permits borrowings up to $400 million, collectively.
Interest is charged to each fund, based on its borrowings, at a rate equal to
the Federal Funds Rate plus 0.35%. Borrowings are payable 30 days after such
loan is executed. The Fund also pays a commitment fee equal to its pro rata
share of the average unutilized amount of the credit facility at a rate of
0.0575% per annum.
The Fund had no borrowings outstanding during the year ended September 30,
1999.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 September 30, 1999, the Fund had on loan securities valued at
$449,235,415. Cash of $457,274,301 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.
33 OPPENHEIMER GLOBAL FUND
<PAGE>
- --------------------------------------------------------------------------------
INDEPENDENT AUDITORS' REPORT
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TO THE BOARD OF TRUSTEES AND SHAREHOLDERS OF OPPENHEIMER GLOBAL FUND:
We have audited the accompanying statement of assets and liabilities, including
the statement of investments, of Oppenheimer Global Fund as of September 30,
1999, and the related statement of operations for the year then ended, the
statements of changes in net assets for each of the years in the two-year period
then ended and the financial highlights for each of the years in the five-year
period then ended. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
September 30, 1999, by correspondence with the custodian and brokers; and where
confirmations were not received from brokers, we performed other auditing
procedures. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Oppenheimer Global Fund as of September 30, 1999, the results of its operations
for the year then ended, the changes in its net assets for each of the years in
the two-year period then ended, and the financial highlights for each of the
years in the five-year period then ended, in conformity with generally accepted
accounting principles.
KPMG LLP
Denver, Colorado
October 21, 1999
34 OPPENHEIMER GLOBAL FUND
<PAGE>
- --------------------------------------------------------------------------------
FEDERAL INCOME TAX INFORMATION Unaudited
- --------------------------------------------------------------------------------
In early 2000 shareholders will receive information regarding all dividends and
distributions paid to them by the Fund during calendar year 1999. Regulations of
the U.S. Treasury Department require the Fund to report this information to the
Internal Revenue Service.
Distributions of $3.3773, $3.0983, $3.1481 and $3.4736 per share were paid
to Class A, Class B, Class C and Class Y shareholders, respectively, on December
4, 1998, of which $2.3962 was designated as a "capital gain distribution" for
federal income tax purposes. Whether received in stock or in cash, the capital
gain distribution should be treated by shareholders as a gain from the sale of
capital assets held for more than one year (long-term capital gains).
Dividends paid by the Fund during the fiscal year ended September 30, 1999,
which are not designated as capital gain distributions should be multiplied by
8.39% to arrive at the net amount eligible for the corporate dividend-received
deduction.
The Fund has elected the application of Section 853 of the Internal Revenue
Code to permit shareholders to take a federal income tax credit or deduction, at
their option, on a per share basis for an aggregate amount of $3,855,362 of
foreign income taxes paid by the Fund during the fiscal year ended September 30,
1999. A separate notice will be mailed to each shareholder in January of 2000,
which will reflect the proportionate share of such foreign taxes (as well as the
dividend expected to be paid by the Fund in December of 1999) which must be
treated by shareholders as gross income for federal income tax purposes.
The foregoing information is presented to assist shareholders in reporting
distributions received from the Fund to the Internal Revenue Service. Because of
the complexity of the federal regulations which may affect your individual tax
return and the many variations in state and local tax regulations, we recommend
that you consult your tax advisor for specific guidance.
35 OPPENHEIMER GLOBAL FUND
<PAGE>
- --------------------------------------------------------------------------------
OPPENHEIMER GLOBAL FUND
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
OFFICERS AND TRUSTEES Leon Levy, Chairman of the Board of Trustees
Donald W. Spiro, Vice Chairman of the Board of Trustees
Bridget A. Macaskill, Trustee and President
Robert G. Galli, Trustee
Phillip A. Griffiths, 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
Andrew J. Donohue, Secretary
Brian W. Wixted, Treasurer
Robert G. Zack, Assistant Secretary
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
INVESTMENT ADVISOR OppenheimerFunds, Inc.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
DISTRIBUTOR OppenheimerFunds Distributor, Inc.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TRANSFER AND SHAREHOLDER OppenheimerFunds Services
SERVICING AGENT
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CUSTODIAN OF The Bank of New York
PORTFOLIO SECURITIES
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
INDEPENDENT AUDITORS KPMG LLP
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
LEGAL COUNSEL Mayer, Brown & Platt
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.
36 OPPENHEIMER GLOBAL FUND
<PAGE>
- --------------------------------------------------------------------------------
OPPENHEIMERFUNDS FAMILY
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S><C>
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
GLOBAL EQUITY
Developing Markets Fund Global Fund
International Small Company Fund Quest Global Value Fund
Europe Fund Global Growth & Income Fund
International Growth Fund
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
EQUITY
STOCK STOCK & BOND
Enterprise Fund(1) Main Street-Registered Trademark- Growth & Income Fund
Discovery Fund Quest Opportunity Value Fund
Main Street-Registered Trademark-
Small Cap Fund Total Return Fund
Quest Small Cap Value Fund Quest Balanced Value Fund
MidCap Fund Capital Income Fund(2)
Capital Appreciation Fund Multiple Strategies Fund
Growth Fund Disciplined Allocation Fund
Disciplined Value Fund Convertible Securities Fund
Quest Value Fund
Trinity Growth Fund SPECIALTY
Trinity Core Fund Real Asset Fund
Trinity Value Fund Gold & Special Minerals Fund
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
FIXED INCOME
TAXABLE MUNICIPAL
International Bond Fund California Municipal Fund(3)
World Bond Fund Main Street California Municipal Fund(3)
High Yield Fund Florida Municipal Fund(3)
Champion Income Fund New Jersey Municipal Fund(3)
Strategic Income Fund New York Municipal Fund(3)
Bond Fund Pennsylvania Municipal Fund(3)
Senior Floating Rate Fund Municipal Bond Fund
U.S. Government Trust Insured Municipal Fund
Limited-Term Government Fund Intermediate Municipal Fund
ROCHESTER DIVISION
Rochester Fund Municipals
Limited Term New York Municipal Fund
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
MONEY MARKET(4)
Money Market Fund Cash Reserves
</TABLE>
1. Effective July 1, 1999, this fund is closed to new investors. See prospectus
for details.
2. On 4/1/99, the Fund's name was changed from "Oppenheimer Equity Income Fund."
3. Available to investors only 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, NY10048-0203.
- -C- Copyright 1999 OppenheimerFunds, Inc. All rights reserved.
37 OPPENHEIMER GLOBAL FUND
<PAGE>
INFORMATION AND SERVICES
- --------------------------------------------------------------------------------
As an Oppenheimer fund shareholder, you can benefit from special services
designed to make investing simple. Whether it's automatic investment plans,
timely market updates, or immediate account access, you can count on us whenever
you need assistance. So call us today, or visit our website--we're here to help.
- --------------------------------------------------------------------------------
INTERNET
24-hr access to account information and transactions
www.oppenheimerfunds.com
GENERAL INFORMATION
Mon-Fri 8:30am-9pm ET, Sat 10am-4pm ET
1.800.525.7048
TELEPHONE 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
TELECOMMUNICATIONS DEVICE FOR THE DEAF (TDD)
Mon-Fri 8:30am-7pm ET
1.800.843.4461
OPPENHEIMERFUNDS INFORMATION HOTLINE
24 hours a day, timely and insightful messages on the
economy and issues that may affect your investments
1.800.835.3104
TRANSFER AND SHAREHOLDER SERVICING AGENT
OppenheimerFunds Services
P.O. Box 5270, Denver, CO 80217-5270
- --------------------------------------------------------------------------------
[LOGO] OPPENHEIMERFUNDS-Registered Trademark-
DISTRIBUTOR, INC.
RA0330.001.0999 November 29, 1999
