<PAGE>
Oppenheimer Global Emerging Growth Fund
Annual Report September 30, 1995
[PHOTO]
"We want
to go after
high
long-term
growth."
[LOGO]
<PAGE>
This Fund is for people who want to take part
in the tremendous potential for growth offered
by EMERGING businesses throughout the world.
HOW YOUR FUND IS MANAGED
Oppenheimer Global Emerging Growth Fund seeks high growth by investing in
emerging businesses throughout the world. These companies tend to be smaller in
size and are expected to be active in developing new products and services or
expanding into new markets. In searching for companies with the best poten-tial
for growth, the Fund's manager uses a theme-oriented approach, such as telecom-
munications expansion, emerging consumer markets, infrastructure development,
and efficiency-enhancing technology, among others, to capitalize on key global
growth trends.
PERFORMANCE
Total return at net asset value for the 12 months ended 9/30/95 was -6.82%.(1)
Many of the world's financial markets have been volatile recently and, like
many mutual funds, your Fund felt the effects. While difficult periods are hard
to accept, they're an inevitable part of investing. That's why keeping a long-
term perspective is crucial to getting the most from your investment and helping
you through market fluctuations.
Your Fund's average annual total returns at maximum offering price for the
1- and 5-year periods ended 9/30/95 and since incep-tion on 12/30/87 were -
12.18%, 7.90% and 7.49%, respectively.(2)
OUTLOOK
" We're very excited about the next twelve months, confident that emerging
growth companies, especially in the international markets, are undervalued
relative to their growth prospects."
Jim Ayer, Portfolio Manager
September 30, 1995
All figures assume reinvestment of dividends and capital gains distributions.
Past performance is not indicative of future results. Investment and principal
value on an investment in the Fund will fluctuate so that an investor's shares,
when redeemed, may be worth more or less than the original cost.
1. Based on the change in net asset value per share from 9/30/94 to 9/30/95,
without deducting any sales charges. Such performance would have been lower if
sales charges were taken into account.
2. Returns show results of hypothetical investments on 9/30/94, 9/30/90 and
12/30/87 (inception of Fund), after deducting the current maximum initial sales
charge.
2 Oppenheimer Global Emerging Growth Fund
<PAGE>
[PHOTO]
Donald W. Spiro
President
Oppenheimer Global
Emerging Growth Fund
[PHOTO]
Jon S. Fossel
Chairman
Oppenheimer Management Corporation
Dear OppenheimerFunds Shareholder,
This has been a year of significant differences in the performance of world
stock markets--highlighting the advantages of global funds.
As you may know, global funds have flexibility to invest in both U.S. and
foreign securities, and can change portfolio weightings depending on the outlook
for specific areas or sectors. This is a major advantage because most stock
markets around the world generally move independently of one another--and this
year has been no different--so having the flexibility to own a portfolio of
stocks throughout the world is an especially powerful diversification tool to
lower risk.
Specifically, 1995 is turning out to be an outstanding year for the domestic
stock market while performance overseas has lagged. Driven by moderate growth
with low inflation, falling interest rates, and surging corporate profitability,
the U.S. stock market is well ahead of the international stock market indices.
Moreover, by engineering a "soft landing" for the U.S. economy, the Federal
Reserve created an excellent environment for stock performance, the main reason
our global funds have allocated a relatively large percentage of their
portfolios to the U.S. stock market until overseas market performance improves.
One of the reasons foreign markets have continued to fall behind the U.S.
market is that earnings of non-U.S. companies have been, until recently,
negatively affected by a weak dollar, especially in Europe and Japan.
Additionally, the devaluation of the Mexican peso late last year jolted investor
confidence in Latin America, which undermined confidence in emerging markets
throughout the world. Thus, many of the markets that performed well in the early
1990s have performed relatively poorly year-to-date.
As time goes by, the investment values around the world will be recognized
by investors, and we expect many overseas markets to rebound. And our portfolio
managers are preparing for this occurrence. Indeed, as is typical, there are
already early signs of rotation away from U.S. companies toward international
companies, particularly those that focus on exporting. The primary reason is
that the U.S. dollar has finally begun to strengthen significantly against other
major foreign currencies, most notably the Japanese yen. When the dollar is
strong, overseas exporters benefit because their goods are more competitively
priced in world markets, so major exporters across Europe and Japan should
benefit from this development.
In 1995, the U.S. stock market was the clear winner. Next year, it could be
Europe or Asia. Or even Latin America. We're confident that by being able to
diversify investments throughout the world, we will be ready to participate in
any environment.
Your portfolio manager discusses the outlook for your Fund on the following
pages. Thank you for your confidence in OppenheimerFunds, and we look forward to
helping you reach your investment goals in the future.
Jon S. Fossel
Chairman
Oppenheimer
Management
Corporation
/s/ Donald W. Spiro /s/ Jon S. Fossel
Donald W. Spiro Jon S. Fossel
October 23, 1995
3 Oppenheimer Global Emerging Growth Fund
<PAGE>
Q + A
Q. What contributed
to the Fund's IMPROVED performance over the last six months?
AN INTERVIEW WITH YOUR FUND'S MANAGER.
THE FUND'S PERFORMANCE OVER THE PAST SIX MONTHS IMPROVED RELATIVE TO ITS
PERFORMANCE DURING THE FIRST HALF OF THE YEAR. WHAT FACTORS CONTRIBUTED TO THIS
CHANGE?
In the first half of the year, domestic small-cap stocks underperformed their
larger counterparts--with approximately 30% of the portfolio in these smaller
growth stocks, this hurt the Fund's performance earlier in the year. However,
going into the second quarter, as we began to see smaller domestic growth stocks
pick up, the Fund's performance also began to improve.
Our expectation is for small-cap stocks to continue their rise both here and
abroad and we are positioned to take advantage of these trends. WHAT INVESTMENT
THEMES ARE YOU CURRENTLY EMPHASIZING?
Currently, our four major investment themes are efficiency-enhancing technology,
telecommunications, emerging consumer markets, and infrastructure development.
Some examples of recent purchases in Japan, which is emerging from a long
recession, are Nippon Densan, .93% of net assets, which has a dominant share in
micromotors for disk drives, and Square, 1.01% of net assets, a company that
makes video game software for Nintendo.
In North America, we've had some great performers in our efficiency-
enhancing technology theme, and in the area of telecommunication equipment. Two
companies we like are Glenayre Technologies and Teltrend, 1.54% and 1.18%,
respectively, of net assets.
We also like Structural Dynamics Research, 1.33% of net assets, whose
software helps companies bring their products to market faster, and Pairgain
Technologies, 1.73% of net assets, a provider of software that improves
information transmission speed for coaxial cable. Both companies are good
examples of what we look for in our efficiency-enhancing technology theme.(1)
We are interested in buying companies whose stocks are undervalued relative
to
4 Oppenheimer Global Emerging Growth Fund
<PAGE>
FACING PAGE
Top left: Jim Ayer, Portfolio Manager
Top right: Bill Wilby, Senior VP, Director of Global Investments
Bottom: The equity trading desk
THIS PAGE
Jim Ayer speaks with George Evans, a member of the Global Investments team.
their growth rates. We look for emerging growth companies--those with new
products or services, or specialized market niches. Of course, any foreign
investment is subject to adverse market changes due to currency fluctuations,
and sometimes those shifts can be sharp. By diversifying the portfolio by
country and industry, we aim to mitigate those risks.
WHAT MOVES HAVE YOU MADE GEOGRAPHICALLY?
At this time, the Fund is roughly one-third in North America, one-third in
Europe and one-third in Japan and Southeast Asia. We think Japan offers some
exciting opportunities right now as the economy recovers from a prolonged
recession. The U.S. and Japan are really the only large liquid markets for
small-cap emerging growth stocks. The Japanese market is made up of a great
number of companies. In many cases, their earnings momentum is accelerating
rapidly, and Japanese interest rates are extremely low.
In the U.S., we've done well in technology, but since the sector has seen so
much price appreciation already, we're not inclined to add there. Following the
U.S. and Japan, we're heavily invested in Germany, which we view as the best way
to take advantage of growth in Eastern Europe.(1)
WHAT AREAS ARE YOU AVOIDING?
We reduced our Southeast Asian holdings to move into Japan. Throughout Southeast
Asia, tremendously high economic growth rates are accompanied by rising inter-
est rates and high inflation. In addition, to maintain such development, most of
the money that might normally be available for securities investment is being
absorbed by infrastructure building and other basic requirements. Thus, there is
little excess liquidity to drive up stock prices.
WHAT IS YOUR OUTLOOK FOR THE FUND?
We're very excited about the next twelve months, confident that emerging growth
companies, especially in the international markets, are undervalued relative to
their growth prospects. Foreign markets, and foreign small-cap stocks in
particular, have lagged the U.S., so we've been able to buy stocks at prices we
consider cheap. Within the U.S. market, we believe the shift toward the smaller-
company growth stocks we favor will continue. And finally, the dollar's renewed
strength is good for small-caps. It should keep interest rates low, and bolster
investor con-fidence, which should translate into more foreign and small-company
investment. / /
A The market shift toward small-cap GROWTH stocks.
1. The Fund's portfolio is subject to change.
5 Oppenheimer Global Emerging Growth Fund
<PAGE>
STATEMENT OF INVESTMENTS SEPTEMBER 30, 1995
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS--94.2%
- --------------------------------------------------------------------------------------------
BASIC MATERIALS--0.5%
- --------------------------------------------------------------------------------------------
METALS--0.5% Kurimoto Ltd. 60,000 $ 644,703
------------------------------------------------------------
Ugine SA 700 45,192
----------
689,895
- --------------------------------------------------------------------------------------------
CONSUMER CYCLICALS--11.5%
- --------------------------------------------------------------------------------------------
AUTOS & HOUSING--1.3% C & P Homes, Inc.(1) 1,563,600 975,186
------------------------------------------------------------
Thai Stanley Electric Co., Ltd. 300,000 825,357
----------
1,800,543
- --------------------------------------------------------------------------------------------
LEISURE & ENTERTAINMENT--1.6% Cinar Films, Inc., Cl. B(1) 107,200 1,326,600
------------------------------------------------------------
Filmes Lusomundo SA 70,000 861,625
----------
2,188,225
- --------------------------------------------------------------------------------------------
MEDIA--2.3% Benpres Holdings Corp., GDR(1)(3) 33,300 224,775
------------------------------------------------------------
Television Broadcasts Ltd. 270,000 1,086,072
------------------------------------------------------------
TV 4 AB 50,000 1,046,597
------------------------------------------------------------
Wattachak Co. Ltd. 500,000 941,984
----------
3,299,428
- --------------------------------------------------------------------------------------------
RETAIL: GENERAL--1.6% Singer Co. NV (The) 40,000 1,065,000
------------------------------------------------------------
Sonae Industria E. Investimentos 50,000 1,174,030
----------
2,239,030
- --------------------------------------------------------------------------------------------
RETAIL: SPECIALTY--4.7% Giordano International Ltd. 1,000,000 918,317
- --------------------------------------------------------------------------------------------
Moebel Walther AG, Preference 3,000 1,517,975
------------------------------------------------------------
Prodega AG 1,350 1,997,304
- --------------------------------------------------------------------------------------------
VBH Verein Baubesch Handel 7,000 2,144,843
----------
6,578,439
- --------------------------------------------------------------------------------------------
CONSUMER NON-CYCLICALS--8.8%
- --------------------------------------------------------------------------------------------
FOOD--2.1% Molinos Rio de la Plata SA, Cl. B 150,000 907,614
------------------------------------------------------------
PT Fast Food Indonesia 505,000 579,435
------------------------------------------------------------
Universal Robina Corp. 2,900,000 1,391,286
----------
2,878,335
- --------------------------------------------------------------------------------------------
HEALTHCARE/DRUGS--3.6% Biota Holdings Ltd.(1) 600,000 697,417
------------------------------------------------------------
Gilead Sciences, Inc.(1) 50,000 1,100,000
------------------------------------------------------------
Matrix Pharmaceutical, Inc.(1) 60,000 840,000
------------------------------------------------------------
Tiger Medicals Ltd. 493,000 721,638
------------------------------------------------------------
Watson Pharmaceuticals, Inc.(1) 40,000 1,640,000
---------
4,999,055
</TABLE>
6 Oppenheimer Global Emerging Growth Fund
<PAGE>
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
HEALTHCARE/SUPPLIES Circon Corp.(1) 60,000 $1,207,500
& SERVICES--2.2% ---------------------------------------------------------------
Oxford GlycoSystems Group PLC(1)(2) 515,132 407,650
---------------------------------------------------------------
Quintiles Transnational Corp.(1)(2) 28,950 1,537,245
----------
3,152,395
- -----------------------------------------------------------------------------------------------
HOUSEHOLD GOODS--0.9% Srithai Superware Co. Ltd. 175,000 1,318,777
- -----------------------------------------------------------------------------------------------
ENERGY--2.8%
- -----------------------------------------------------------------------------------------------
ENERGY SERVICES & Compagnie Generale de Geophysique SA(1) 15,000 635,418
- -----------------------------------------------------------------------------------------------
PRODUCERS--2.7% Transocean AS(1) 195,000 3,163,817
----------
3,799,235
- -----------------------------------------------------------------------------------------------
OIL-INTEGRATED--0.1% Elf Gabon SA 1,100 156,594
- -----------------------------------------------------------------------------------------------
FINANCIAL--10.0%
- -----------------------------------------------------------------------------------------------
BANKS--3.5% Banco de Galicia Y Buenos Aires,
Series B(1) 200,000 900,113
---------------------------------------------------------------
Industrial Finance Corp. 400,000 1,228,068
---------------------------------------------------------------
Philippine National Bank(1) 100,000 1,045,863
---------------------------------------------------------------
PT Bank Danamon 500,000 849,515
---------------------------------------------------------------
Shinhan Bank Ltd.(1) 41,000 907,316
----------
4,930,875
- -----------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL--2.0% Inversiones Y Representacion(1) 250,000 595,075
---------------------------------------------------------------
Manhattan Card Co. Ltd. 2,500,000 1,067,058
---------------------------------------------------------------
Ssangyong Investment & Securities
Co., Ltd.(1) 50,000 1,119,500
-----------
2,781,633
- -----------------------------------------------------------------------------------------------
INSURANCE--4.5% Mapfre Vida Seguros 15,000 813,377
---------------------------------------------------------------
Marschollek, Lautenschlaeger und
Partner AG 3,000 1,937,527
---------------------------------------------------------------
National Mutual Asia Ltd. 1,500,000 1,154,363
---------------------------------------------------------------
Reinsurance Australia Corp. Ltd. 1,250,000 2,311,516
-----------
6,216,783
- -----------------------------------------------------------------------------------------------
INDUSTRIAL--31.5%
- -----------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--7.6% Kokusai Electric Co. 60,000 1,374,556
---------------------------------------------------------------
LEM Holdings SA 4,300 1,646,579
---------------------------------------------------------------
Nippon Densan Corp. 40,000 1,297,516
---------------------------------------------------------------
Sanyo Engineering & Construction, Inc. 100,000 1,064,369
---------------------------------------------------------------
Sheldahl, Inc.(1) 45,000 866,250
---------------------------------------------------------------
Tabai Espec Corp. 65,000 981,753
---------------------------------------------------------------
Ushio, Inc. 100,000 1,115,053
---------------------------------------------------------------
Yamatake-Honeywell Co., Ltd. 70,000 979,219
---------------------------------------------------------------
Yokogawa Electric Corp. 150,000 1,345,666
-----------
10,670,961
</TABLE>
7 Oppenheimer Global Emerging Growth Fund
<PAGE>
STATEMENT OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INDUSTRIAL SERVICES--11.6% Adia SA(1) 7,000 $1,279,319
---------------------------------------------------------------
BIS SA(1) 35,000 3,549,787
---------------------------------------------------------------
IHC Caland NV 60,000 1,706,310
---------------------------------------------------------------
Ionics, Inc.(1) 50,000 2,081,250
---------------------------------------------------------------
Raito Kogyo Co. Ltd. 60,000 1,252,914
---------------------------------------------------------------
Samsung Engineering & Construction (New),
GDR(1)(3) 1,849 25,523
---------------------------------------------------------------
Samsung Engineering & Construction,
GDR(1) 60,000 476,517
---------------------------------------------------------------
Samsung Engineering & Construction,
GDR(1) 30,797 364,056
---------------------------------------------------------------
Sanifill, Inc.(1) 30,000 982,500
---------------------------------------------------------------
Tae Young Corp.(1) 15,000 1,025,124
---------------------------------------------------------------
Tetra Tech, Inc.(1) 50,000 1,162,500
---------------------------------------------------------------
Tetra Technologies, Inc.(1) 45,000 618,750
---------------------------------------------------------------
United Waste Systems, Inc.(1) 40,000 1,670,000
-----------
16,194,550
- -----------------------------------------------------------------------------------------------
MANUFACTURING--10.3% Bobst Bearers AG 500 774,554
---------------------------------------------------------------
Gildemeister AG(1) 20,000 2,358,484
---------------------------------------------------------------
GP Batteries International Ltd. 300,000 840,000
---------------------------------------------------------------
Lumonics, Inc.(1) 105,000 1,130,341
---------------------------------------------------------------
Measurex Corp. 33,200 1,137,100
---------------------------------------------------------------
Plettac AG 5,000 1,331,742
---------------------------------------------------------------
Powerscreen International PLC 300,000 1,709,315
---------------------------------------------------------------
SIG Schweizerische Industrie-Gesellschaft
Holding AG 500 1,057,396
---------------------------------------------------------------
Traub AG(1) 16,000 2,063,322
---------------------------------------------------------------
Valmet Corp., Cl. A 60,000 1,957,602
-----------
14,359,856
- -----------------------------------------------------------------------------------------------
TRANSPORTATION--2.0% International Container Terminal
Services, Inc.(1) 1,500,000 949,912
---------------------------------------------------------------
Lisnave-Estaleiros Navais de
Lisbona SA(1) 200,000 868,314
---------------------------------------------------------------
Mayne Nickless Ltd. 200,000 946,495
-----------
2,764,721
- -----------------------------------------------------------------------------------------------
TECHNOLOGY--25.3%
- -----------------------------------------------------------------------------------------------
COMPUTER SOFTWARE--9.6% Baan Co. NV(1) 20,000 900,000
---------------------------------------------------------------
CSK Corp. 75,000 2,257,982
---------------------------------------------------------------
Enix Corp. 50,000 1,920,932
---------------------------------------------------------------
Pairgain Technologies, Inc.(1) 70,000 2,415,000
---------------------------------------------------------------
Read-Rite Corp.(1) 35,000 1,277,500
---------------------------------------------------------------
Square Co. Ltd. 35,000 1,419,158
---------------------------------------------------------------
Structural Dynamics Research Corp.(1) 100,000 1,856,250
---------------------------------------------------------------
Transaction Systems Architects,
Inc., Cl. A(1) 30,000 802,500
---------------------------------------------------------------
Wind River Systems(1) 25,000 587,500
----------
13,436,822
</TABLE>
8 Oppenheimer Global Emerging Growth Fund
<PAGE>
STATEMENT OF INVESTMENTS
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ELECTRONICS--7.4% Advantest Corp. 25,000 $ 1,485,048
---------------------------------------------------------------------------------------------
Alphatec Electronics Co. Ltd. 50,000 685,804
---------------------------------------------------------------------------------------------
ASM Pacific Technology 500,000 478,560
---------------------------------------------------------------------------------------------
Austria Mikro Systeme International AG 3,000 524,374
---------------------------------------------------------------------------------------------
Aval Data Corp. 40,000 892,042
---------------------------------------------------------------------------------------------
Enplas Corp. 50,000 1,094,779
---------------------------------------------------------------------------------------------
OKI Electric Industry Co.(1) 200,000 1,861,125
---------------------------------------------------------------------------------------------
SDL, Inc.(1) 25,000 706,250
---------------------------------------------------------------------------------------------
Shinkawa Ltd. 35,000 1,415,610
---------------------------------------------------------------------------------------------
Siliconware Precision Industries Co., GDR(1) 75,000 1,275,000
-----------
10,418,592
- --------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS- Glenayre Technologies, Inc.(1) 30,000 2,160,000
TECHNOLOGY--8.3%
---------------------------------------------------------------------------------------------
Korea Mobile Telecommunications Corp. 3,000 2,757,241
---------------------------------------------------------------------------------------------
MobileMedia Corp., Cl. A(1) 60,000 1,620,000
---------------------------------------------------------------------------------------------
Nippon Comsys Corp. 100,000 1,307,653
---------------------------------------------------------------------------------------------
SR Telecom, Inc. 120,000 1,302,954
---------------------------------------------------------------------------------------------
Technology Resources Industries Berhad(1) 300,000 782,706
---------------------------------------------------------------------------------------------
Teltrend, Inc.(1) 50,000 1,650,000
------------
11,580,554
- --------------------------------------------------------------------------------------------------------------------------
UTILITIES--3.8%
- --------------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES--0.7% Central Costanera SA, Cl. B 400,000 1,040,131
- --------------------------------------------------------------------------------------------------------------------------
TELEPHONE UTILITIES--3.1% Pakistan Telecommunications, GDR(1)(3) 10,000 1,050,000
---------------------------------------------------------------------------------------------
Telecomunicacoes Brasileiras SA, ADR 40,000 1,880,268
---------------------------------------------------------------------------------------------
Telefonica del Peru SA, Cl. B 700,020 1,339,575
------------
4,269,843
------------
Total Common Stocks (Cost $112,468,315) 131,765,272
- --------------------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS--2.7%
- --------------------------------------------------------------------------------------------------------------------------
Cambridge Antibody Technology Ltd., Cv. (Cost $3,300,000)(1)(4) 100,000 3,720,681
UNITS
- --------------------------------------------------------------------------------------------------------------------------
RIGHTS, WARRANTS AND CERTIFICATES--0.0%
- --------------------------------------------------------------------------------------------------------------------------
PerSeptive Biosystems, Inc. Cl. A. Wts., Exp. 12/97 40,110 --
---------------------------------------------------------------------------------------------
Protein Polymer Technologies, Inc. Wts., Exp. 1/97 100,000 9,376
------------
Total Rights, Warrants and Certificates (Cost $383,662) 9,376
FACE
AMOUNT
- --------------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS--4.8% Repurchase agreement with First Chicago Capital Markets,
6.35%, dated 9/29/95, to be repurchased at $6,673,530
on 10/2/95, collateralized by U.S. Treasury Nts., 4.25%-8.75%,
11/30/95-8/15/00, with a value of $4,547,490, U.S. Treasury
Bills maturing 12/28/95-3/28/96, with a value of $1,032,415,
and U.S. Treasury Bonds, 8.50%-13.25%, 5/15/14-2/15/20,
with a value of $1,236,190 (Cost $6,670,000) $6,670,000 6,670,000
9 Oppenheimer Global Emerging Growth Fund
</TABLE>
<PAGE>
STATEMENT OF INVESTMENTS (Continued)
<TABLE>
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
TOTAL INVESTMENTS, AT VALUE (COST $122,821,977) 101.7% $142,165,329
- --------------------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS (1.7) (2,342,343)
------ ------------
NET ASSETS 100.0% $139,822,986
------ ------------
------ ------------
1. Non-income producing security.
2. Identifies issues considered to be illiquid--See Note 7 of
Notes to Financial Statements.
3. Represents a security sold under Rule 144A, which is exempt
from registration under the Securities Act of 1933, as amended. This
security has been determined to be liquid under guidelines established
by the Board of Trustees. These securities amount to $1,300,298 or
0.93% of the Fund's net assets, at September 30, 1995.
4. Affiliated company. Represents ownership of at least 5% of the voting
securities of the issuer and is or was an affiliate, as defined in the
Investment Company Act of 1940, at or during the period ended
September 30, 1995. The aggregate fair value of all securities of
affiliated companies as of September 30, 1995 amounted to $3,720,681.
Transactions during the period in which the issuer was an affiliate are
as follows:
</TABLE>
<TABLE>
<CAPTION>
BALANCE SEPTEMBER 30, 1994 GROSS ADDITIONS GROSS REDUCTIONS BALANCE SEPTEMBER 30, 1995
-------------------------- --------------- ---------------- --------------------------
SHARES COST SHARES COST SHARES COST SHARES COST
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Cambridge Antibody Technology
Ltd., Cv. 100,000 $3,300,000 -- $ -- -- $ -- 100,000 $3,300,000
- --------------------------------------------------------------------------------------------------------------------------------
Noble China, Inc.(5) 146,600 660,529 153,400 743,091 300,000 1,403,620 -- --
- --------------------------------------------------------------------------------------------------------------------------------
Synaptic Pharmaceutical Corp.,
Cv. Series 3 500,000 2,000,000 -- -- 500,000 2,000,000 -- --
---------- -------- ---------- ----------
$5,960,529 $743,091 $3,403,620 $3,300,000
---------- -------- ---------- ----------
---------- -------- ---------- ----------
</TABLE>
5. Not an affiliate as of September 30,
1994, but was an affiliate during the
period.
Distribution of investments by country of
issue, as a percentage of total investments
at value, is as follows:
<TABLE>
<CAPTION>
COUNTRY MARKET VALUE PERCENT
----------------------------------------------------------
<S> <C> <C>
United States $ 43,490,021 30.6%
----------------------------------------------------------
Japan 23,710,079 16.7
----------------------------------------------------------
Germany 11,353,893 8.0
----------------------------------------------------------
Switzerland 6,755,151 4.8
----------------------------------------------------------
Korea, Republic of (South) 6,675,275 4.7
----------------------------------------------------------
Thailand 4,999,989 3.5
----------------------------------------------------------
Hong Kong 4,704,370 3.3
----------------------------------------------------------
Philippines 4,587,022 3.2
----------------------------------------------------------
France 4,386,991 3.1
----------------------------------------------------------
Australia 3,955,429 2.8
----------------------------------------------------------
Argentina 3,442,934 2.4
----------------------------------------------------------
Norway 3,163,817 2.2
----------------------------------------------------------
Portugal 2,903,969 2.0
----------------------------------------------------------
Canada 2,433,295 1.7
----------------------------------------------------------
Great Britain 2,116,965 1.5
----------------------------------------------------------
Finland 1,957,602 1.4
----------------------------------------------------------
Netherlands 1,706,310 1.2
----------------------------------------------------------
Singapore 1,561,638 1.1
----------------------------------------------------------
Indonesia 1,428,950 1.0
----------------------------------------------------------
Peru 1,339,575 0.9
----------------------------------------------------------
Taiwan 1,275,000 0.9
----------------------------------------------------------
Pakistan 1,050,000 0.7
----------------------------------------------------------
Sweden 1,046,597 0.7
----------------------------------------------------------
Spain 813,377 0.6
----------------------------------------------------------
Malaysia 782,706 0.6
----------------------------------------------------------
Austria 524,374 0.4
------------ ------
Total $142,165,329 100.0%
------------ ------
------------ ------
</TABLE>
See accompanying Notes to Financial Statements.
10 Oppenheimer Global Emerging Growth Fund
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES SEPTEMBER 30, 1995
<TABLE>
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS Investments, at value--see accompanying statement:
Unaffiliated companies (cost $119,521,977) $138,444,648
Affiliated companies (cost $3,300,000) 3,720,681
------------------------------------------------------------------------------------------------
Cash 4,507
------------------------------------------------------------------------------------------------
Receivables:
Investments sold 3,121,277
Dividends and interest 133,266
Shares of beneficial interest sold 112,171
------------------------------------------------------------------------------------------------
Other 55,189
------------
Total Assets 145,591,739
- ----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES Net unrealized depreciation on forward foreign currency exchange contracts--Note 5 613,180
------------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 4,273,276
Shares of beneficial interest redeemed 553,253
Service plan fees--Note 6 84,226
Shareholder reports 78,634
Trustees' fees--Note 1 74,253
Transfer and shareholder servicing agent fees 54,314
Other 37,617
------------
Total liabilities 5,768,753
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $139,822,986
------------
------------
- ---------------------------------------------------------------------------------------------------------------------------------
COMPOSITION OF Paid-in capital $162,692,626
NET ASSETS
------------------------------------------------------------------------------------------------
Accumulated net investment loss (130,131)
------------------------------------------------------------------------------------------------
Accumulated net realized loss from investments, written options and foreign
currency transactions (41,479,582)
------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation
of assets and liabilities denominated in foreign currencies 18,740,073
------------
Net assets--applicable to 7,756,141 shares of beneficial interest outstanding $139,822,986
------------
------------
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE $18.03
- ---------------------------------------------------------------------------------------------------------------------------------
MAXIMUM OFFERING PRICE PER SHARE (net asset value plus sales charge of 5.75% of offering price) $19.13
</TABLE>
See accompanying Notes to Financial Statements.
11 Oppenheimer Global Emerging Growth Fund
<PAGE>
STATEMENT OF OPERATIONS FOR THE YEAR ENDED SEPTEMBER 30, 1995
<TABLE>
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME Interest $ 1,177,285
---------------------------------------------------------------------------------------
Dividends (net of foreign withholding taxes of $137,189) 1,536,944
------------
Total income 2,714,229
- -----------------------------------------------------------------------------------------------------------------------
EXPENSES Management fees--Note 6 1,238,423
---------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 6 403,425
---------------------------------------------------------------------------------------
Service plan fees--Note 6 357,190
---------------------------------------------------------------------------------------
Shareholder reports 223,152
---------------------------------------------------------------------------------------
Custodian fees and expenses 203,733
---------------------------------------------------------------------------------------
Legal and auditing fees 53,095
---------------------------------------------------------------------------------------
Trustees' fees and expenses 35,615
---------------------------------------------------------------------------------------
Insurance expense 18,724
---------------------------------------------------------------------------------------
Registration and filing fees 2,150
---------------------------------------------------------------------------------------
Other 71,491
------------
Total expenses 2,606,998
- -----------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 107,231
- -----------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED Net realized gain (loss) from:
GAIN (LOSS) ON INVESTMENTS, Investments:
OPTIONS WRITTEN AND Unaffiliated companies (41,972,759)
FOREIGN CURRENCY Affiliated companies (509,171)
Closing of option contracts written--Note 4 43,393
Foreign currency transactions 1,507,754
------------
Net realized loss (40,930,783)
---------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments 27,845,796
Translation of assets and liabilities denominated in foreign currencies (400,334)
------------
Net change 27,445,462
Net realized and unrealized loss on investments, options written
and foreign currency (13,485,321)
- -----------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $(13,378,090)
------------
------------
</TABLE>
See accompanying Notes to Financial Statements.
12 Oppenheimer Global Emerging Growth Fund
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30,
1995 1994
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS Net investment income (loss) $ 107,231 $ (2,001,550)
-----------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments, options written and foreign
currency transactions (40,930,783) 3,525,707
-----------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments
and translation of assets and liabilities denominated in foreign currencies 27,445,462 (21,014,383)
------------ ------------
Net decrease in net assets resulting from operations (13,378,090) (19,490,226)
- ----------------------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND Distributions from net realized gain on investments, options
DISTRIBUTIONS TO written and foreign currency transactions ($.169 per share) -- (1,561,312)
SHAREHOLDERS
- ----------------------------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST Net decrease in net assets resulting from beneficial interest
TRANSACTIONS transactions--Note 2 (10,093,708) (15,350,295)
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS Total decrease (23,471,798) (36,401,833)
-----------------------------------------------------------------------------------------------------------
Beginning of period 163,294,784 199,696,617
------------ ------------
End of period (including accumulated net investment loss
of $130,131 and $172,940, respectively) $139,822,986 $163,294,784
------------ ------------
------------ ------------
</TABLE>
See accompanying Notes to Financial Statements.
13 Oppenheimer Global Emerging Growth Fund
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30,
1995 1994 1993 1992 1991(2) 1990 1989 1988(1)
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning
of period $ 19.35 $ 21.64 $ 20.25 $ 26.90 $ 11.81 $ 12.09 $10.63 $10.00
- -----------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .01 (.01) (.10) (.17) (.03) (.02) (.10) .14
Net realized and unrealized
gain (loss) on investments,
options written and
foreign currency (1.33) (2.11) 1.69 (6.47) 15.12 (.26) 1.69 .49
-------- -------- -------- -------- -------- ------- ------ ------
Total income (loss) from
investment operations (1.32) (2.12) 1.59 (6.64) 15.09 (.28) 1.59 .63
- -----------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment
income -- -- -- (.01) -- -- (.10) --
Distributions from net
realized gain on investments,
options written and foreign
currency transactions -- (.17) (.20) -- -- -- (.03) --
-------- -------- -------- -------- -------- ------- ------ ------
Total dividends and distributions
to shareholders -- (.17) (.20) (.01) -- -- (.13) --
- -----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 18.03 $ 19.35 $ 21.64 $ 20.25 $ 26.90 $ 11.81 $12.09 $10.63
-------- -------- -------- -------- -------- ------- ------ ------
-------- -------- -------- -------- -------- ------- ------ ------
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(3) (6.82)% (9.91)% 7.79% (24.70)% 127.78% (2.32)% 15.21% 6.30%
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $139,823 $163,295 $199,697 $129,634 $103,352 $16,217 $3,872 $1,921
- -----------------------------------------------------------------------------------------------------------------------------
Average net assets
(in thousands) $148,378 $190,984 $194,184 $166,144 $ 50,989 $ 8,716 $2,343 $1,394
- -----------------------------------------------------------------------------------------------------------------------------
Number of shares outstanding
at end of period (in thousands) 7,756 8,437 9,226 6,400 3,841 1,373 320 181
- -----------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) .07% (1.05)% (.80)% (.71)% (.18)% (.37)% (.70)% 1.41%(4)
Expenses 1.76% 1.77% 1.59% 1.39% 1.50% 1.78% 2.40% 2.06%(4)
- -----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 160.3% 54.7% 41.0% 2.6% 11.2% 16.6% 17.1% 1.7%
</TABLE>
1. For the period from December 30, 1987 (commencement of operations) to
September 30, 1988. Per share amounts calculated based on the weighted
average number of shares outstanding during the period.
2. Per share amounts calculated based on the weighted average number of
shares outstanding during the period.
3. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period, with all dividends and distributions
reinvested in additional shares on the reinvestment date, and redemption at
the net asset value calculated on the last business day of the fiscal period.
Sales charges are not reflected in the total returns. Total returns are not
annualized for periods of less than one full year.
4. Annualized.
5. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities
owned during the period. Securities with a maturity or expiration date at the
time of acquisition of one year or less are excluded from the calculation.
Purchases and sales of investment securities (excluding short-term
securities) for the period ended September 30, 1995 were $220,834,060 and
$209,019,328, respectively.
See accompanying Notes to Financial Statements.
14 Oppenheimer Global Emerging Growth Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Global Emerging Growth 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 advisor is Oppenheimer
Management Corpo ration (the Manager). The following is a summary of
significant accounting policies consistently followed by the Fund.
- ------------------------------------------------------------------------------
INVESTMENT VALUATION. Portfolio securities are valued at the close of the New
York Stock Exchange on each trading day. Listed and unlisted securities for
which such information is regularly reported are valued at the last sale
price of the day or, in the absence of sales, at values based on the closing
bid or asked price 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 the approved portfolio pricing service are valued using
dealer-supplied valuations provided the Manager is satisfied that the firm
rendering the quotes is reliable and that the quotes reflect current market
value, or are valued under consistently applied procedures established by the
Board of Trustees to determine fair value in good faith. Short-term "money
market type" debt securities having a remaining maturity of 60 days or less
are valued at cost (or last determined market value) adjusted for
amortization to maturity of any premium or discount. Forward contracts are
valued based on the closing prices of the forward currency contract rates in
the London foreign exchange markets on a daily basis as provided by a
reliable bank or dealer. 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
or asked price closest to the last reported sale price 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 securities and investment income
are translated at the rates of exchange prevailing on the respective dates of
such transactions.
The effect of changes in foreign currency exchange rates
on investments is separately identified from fluctuations arising from
changes in market values of securities held and reported with all other
foreign currency gains and losses in the Fund's results 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.
- ------------------------------------------------------------------------------
FEDERAL TAXES. The Fund intends to continue to comply with provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income, including any net realized gain on
investments not offset by loss carryovers, to shareholders. Therefore, no
federal income or excise tax provision is required. At September 30, 1995,
the Fund had available for federal income tax purposes an unused capital loss
carryover of approximately $14,363,000, which expires between 1999 and 2003.
- ------------------------------------------------------------------------------
TRUSTEES' FEES AND EXPENSES. The Fund has adopted a nonfunded retirement plan
for the Fund's independent trustees. Benefits are based on years of service
and fees paid to each trustee during the years of service. During the year
ended September 30, 1995, a provision of $2,732 was made for the Fund's
projected benefit obligations and a payment of $1,689 was made to a retired
trustee, resulting in an accumulated liability of $63,991 at September 30,
1995.
- ------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to shareholders
are recorded on the ex-dividend date.
- ------------------------------------------------------------------------------
CLASSIFICATION OF DISTRIBUTIONS TO SHAREHOLDERS. Net investment income (loss)
and net realized gain (loss) may differ for financial statement and tax
purposes primarily because of the recognition of certain foreign currency
gains (losses) as ordinary income (loss) for tax purposes. The character of
the distributions made during the year from net investment income or net
realized gains may differ from their 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 year that
the income or realized gain (loss) was recorded by the Fund.
15 Oppenheimer Global Emerging Growth Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- ------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
During the year ended September 30, 1995, the Fund changed the classification
of distributions to shareholders to better disclose the differences between
financial statement amounts and distributions determined in accordance with
income tax regulations. Accordingly, during the year ended September 30,
1995, amounts have been reclassified to reflect an increase in accumulated
net investment loss of $64,422, a decrease in paid-in capital of $48,346, and
a decrease in accumulated net realized loss on investments of $112,768.
- ------------------------------------------------------------------------------
OTHER. Investment transactions are accounted for on the date the investments
are purchased or sold (trade date) and dividend income is recorded on the
ex-dividend date. Discount on securities purchased is amortized over the life
of the respective securities, in accordance with federal income tax
requirements. 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.
- ------------------------------------------------------------------------------
2. SHARES OF BENEFICIAL INTEREST
The Fund has authorized an unlimited number of no par value shares of
beneficial interest. Transactions in shares of beneficial interest were as
follows:
<TABLE>
<CAPTION>
Year Ended September 30, 1995 Year Ended September 30, 1994
----------------------------- -----------------------------
Shares Amount Shares Amount
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Sold 1,148,488 $ 19,774,392 2,216,798 $ 48,631,842
Distributions reinvested -- -- 63,096 1,414,325
Issued in connection with the
acquisition of Oppenheimer Global
Environment Fund--Note 8 1,540,515 27,636,869 -- --
Redeemed (3,370,269) (57,504,969) (3,068,893) (65,396,462)
---------- ------------ ---------- ------------
Net decrease (681,266) $(10,093,708) (788,999) $(15,350,295)
---------- ------------ ---------- ------------
---------- ------------ ---------- ------------
</TABLE>
- ------------------------------------------------------------------------------
3. UNREALIZED GAINS AND LOSSES ON INVESTMENTS
At September 30, 1995, net unrealized appreciation on investments and options
written of $19,343,352 was composed of gross appreciation of $23,986,253, and
gross depreciation of $4,642,901.
- ------------------------------------------------------------------------------
4. OPTION ACTIVITY
The Fund may buy and sell put and call options, or write covered put and call
options on portfolio securities in order to produce incremental earnings or
protect against changes in the value of portfolio securities.
The Fund generally purchases put options or writes covered call options
to hedge against adverse movements in the value of portfolio holdings. When
an option is written, the Fund receives a premium and becomes obligated to
sell or purchase the underlying security at a fixed price, upon exercise of
the option.
Options are valued daily based upon the last sale price on the principal
exchange on which the option is traded and unrealized appreciation or
depreciation is recorded. The Fund will realize a gain or loss upon the
expiration or closing of the option transaction. When an option is exercised,
the proceeds on sales for a written call option, the purchase cost for a
written put option, or the cost of the security for a purchased put or call
option is adjusted by the amount of premium received or paid.
Securities designated to cover outstanding call options are noted in the
Statement of Investments where applicable. Gains and losses are reported in
the Statement of Operations.
The risk in writing a call option is that the Fund gives up the
opportunity for profit if the market price of the security increases and the
option is exercised. The risk in writing a put option is that the Fund may
incur a loss if the market price of the security decreases and the option is
exercised. The risk in buying an option is that the Fund pays a premium
whether or not the option is exercised. The Fund also has the additional risk
of not being able to enter into a closing transaction if a liquid secondary
market does not exist.
Written call option activity for the year ended September 30, 1995 was
as follows:
<TABLE>
<CAPTION>
Number Amount
of Options of Premiums
- ------------------------------------------------------------------------------
<S> <C> <C>
Options outstanding at September 30, 1994 250 $57,843
- ------------------------------------------------------------------------------
Options canceled in closing purchase transactions 250 57,843
--- -------
Options outstanding at September 30, 1995 -- $ --
--- -------
--- -------
</TABLE>
16 Oppenheimer Global Emerging Growth Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- ------------------------------------------------------------------------------
5. FORWARD CONTRACTS
A forward foreign currency exchange contract (forward contract) is a
commitment to purchase or sell a foreign currency at a future date, at a
negotiated rate.
The Fund uses forward contracts to seek to manage foreign currency
risks. They may also be used to tactically shift portfolio currency risk. The
Fund generally enters into forward contracts as a hedge upon the purchase or
sale of a security denominated in a foreign currency. In addition, the Fund
may enter into such contracts as a hedge against changes in foreign currency
exchange rates on portfolio positions.
Forward contracts are valued based on the closing prices of the forward
currency contract rates in the London foreign exchange markets on a daily
basis as provided by a reliable bank or dealer. The Fund will realize a gain
or loss upon the closing or settlement of the forward transaction.
In this report, securities held in segregated accounts to cover net
exposure on outstanding forward contracts are noted in the Statement of
Investments where applicable. The net amount due to or owed by the Fund on
outstanding contracts (unrealized appreciation or depreciation on forward
contracts) is reported in the Statement of Assets and Liabilities. Realized
and unrealized gains and losses are reported with all other foreign currency
gains and losses in the Fund's Statement of Operations.
Risks include the potential inability of the counterparty to meet the
terms of the contract and unanticipated movements in the value of a foreign
currency relative to the U.S. dollar.
At September 30, 1995, the Fund had outstanding forward contracts to
purchase and sell foreign currencies as follows:
<TABLE>
<CAPTION>
CONTRACT UNREALIZED
AMOUNT VALUATION AS OF APPRECIATION
CONTRACTS TO PURCHASE EXCHANGE DATE (000'S) SEPTEMBER 30, 1995 (DEPRECIATION)
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Japanese Yen (JPY) 10/2/95--10/3/95 213,609 JPY $ 2,165,841 $ 12,411
----------- ---------
----------- ---------
</TABLE>
<TABLE>
<CAPTION>
CONTRACT UNREALIZED
AMOUNT VALUATION AS OF APPRECIATION
CONTRACTS TO SELL EXCHANGE DATE (000'S) SEPTEMBER 30, 1995 (DEPRECIATION)
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
French Francs (FRF) 10/31/95 1,815 FRF $ 369,531 $ (1,799)
- ----------------------------------------------------------------------------------------------------
Indonesian Rupiah (IDR) 10/3/95 416,728 IDR 183,905 --
- ----------------------------------------------------------------------------------------------------
Japanese Yen (JPY) 10/2/95--3/28/96 1,553,327 JPY 15,972,881 (623,572)
- ----------------------------------------------------------------------------------------------------
Thailand Baht (THB) 10/3/95 277 THB 276,760 (220)
----------- ---------
$16,803,077 (625,591)
----------- ---------
----------- ---------
$(613,180)
---------
---------
</TABLE>
- ------------------------------------------------------------------------------
6. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Management fees paid to the Manager were in accordance with the investment
advisory agreement with the Fund which provides for a fee of 1% on the first
$50 million of average annual net assets, .75% on the next $150 million with
a reduction of .03% on each $200 million thereafter to $800 million, and .60%
on net assets in excess of $800 million. The Manager has agreed to reimburse
the Fund if aggregate expenses (with specified exceptions) exceed the most
stringent applicable regulatory limit on Fund expenses.
For the year ended September 30, 1995, commissions (sales charges paid by
investors) on sales of Fund shares totaled $398,139, of which $114,956 was
retained by Oppenheimer Funds Distributor, Inc. (OFDI), a subsidiary of the
Manager, as general distributor, and by an affiliated broker/dealer.
Oppenheimer Shareholder Services (OSS), a division of the Manager, is the
transfer and shareholder servicing agent for the Fund, and for other
registered investment companies. OSS's total costs of providing such services
are allocated ratably to these companies.
Under an approved service plan, the Fund may expend up to .25% of its net
assets annually to reimburse OFDI for costs incurred in connection with the
personal service and maintenance of accounts that hold shares of the Fund,
including amounts paid to brokers, dealers, banks and other financial
institutions. During the year ended September 30, 1995, OFDI paid $15,436 to
an affiliated broker/dealer as reimbursement for personal service and
maintenance expenses.
17 Oppenheimer Global Emerging Growth Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- ------------------------------------------------------------------------------
7. ILLIQUID AND RESTRICTED SECURITIES
At September 30, 1995, investments in securities included issues that are
illiquid or restricted. The 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. The Fund intends
to invest no more than 10% of its net assets (determined at the time of
purchase) in illiquid and restricted securities. The aggregate value of these
securities subject to this limitation at September 30, 1995 was $1,944,895,
which represents 1.39% of the Fund's net assets.
Information concerning these securities is as follows:
<TABLE>
<CAPTION>
VALUATION
PER UNIT AS OF
SECURITY ACQUISITION DATE COST PER UNIT SEPT. 30, 1995
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C>
Oxford GlycoSystems Group PLC 5/21/93 $ 1.94 $ .79
- ----------------------------------------------------------------------------------------
Quintiles Transnational Corp. 8/2/93 $17.27 $53.10
</TABLE>
Pursuant to guidelines adopted by the Board of Trustees, certain unregistered
securities are determined to be liquid and are not included within the 10%
limitation specified above.
- ------------------------------------------------------------------------------
8. ACQUISITION OF OPPENHEIMER GLOBAL ENVIRONMENT FUND
On November 18, 1994, the Fund acquired all of the net assets of Oppenheimer
Global Environment Fund, pursuant to an Agreement and Plan of Reorganization
approved by the Oppenheimer Global Environment Fund shareholders on November
4, 1994. The Fund issued 1,540,515 shares of beneficial interest, in exchange
for the net assets of $27,636,869 (including net unrealized appreciation of
$2,684,431), resulting in combined net assets of $174,971,153 on November 18,
1994. The exchange qualified as a tax-free reorganization for federal income
tax purposes.
18 Oppenheimer Global Emerging Growth Fund
<PAGE>
INDEPENDENT AUDITORS' REPORT
- -------------------------------------------------------------------------------
The Board of Trustees and Shareholders of Oppenheimer Global Emerging Growth
Fund:
We have audited the accompanying statements of investments and assets and
liabilities of Oppenheimer Global Emerging Growth Fund as of September 30,
1995, 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
seven-year period then ended and the period from December 30, 1987
(commencement of operations) to September 30, 1988. 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, 1995 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 Emerging Growth Fund as of September 30, 1995,
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 seven-year period then
ended and the period from December 30, 1987 (commencement of operations) to
September 30, 1988, in conformity with generally accepted accounting
principles.
KPMG PEAT MARWICK LLP
Denver, Colorado
October 20, 1995
19 Oppenheimer Global Emerging Growth Fund
<PAGE>
FEDERAL INCOME TAX INFORMATION (UNAUDITED)
- -------------------------------------------------------------------------------
In early 1996 shareholders will receive information regarding all dividends
and distributions paid to them by the Fund during calendar year 1995.
Regulations of the U.S. Treasury Department require the Fund to report this
information to the Internal Revenue Service.
None of the dividends paid by the Fund during the fiscal year ended
September 30, 1995 are eligible for the corporate dividend-received deduction.
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.
20 Oppenheimer Global Emerging Growth Fund
<PAGE>
OPPENHEIMER GLOBAL EMERGING GROWTH FUND
- -------------------------------------------------------------------------------
OFFICERS AND TRUSTEES Leon Levy, Chairman of the Board of Trustees
Leo Cherne, Trustee
Robert G. Galli, Trustee
Benjamin Lipstein, Trustee
Bridget A. Macaskill, Trustee
Elizabeth B. Moynihan, Trustee
Kenneth A. Randall, Trustee
Edward V. Regan, Trustee
Russell S. Reynolds, Jr., Trustee
Sidney M. Robbins, Trustee
Donald W. Spiro, Trustee and President
Pauline Trigere, Trustee
Clayton K. Yeutter, Trustee
James Ayer, Vice President
George C. Bowen, Treasurer
Robert J. Bishop, Assistant Treasurer
Scott Farrar, Assistant Treasurer
Andrew J. Donohue, Secretary
Robert G. Zack, Assistant Secretary
- -------------------------------------------------------------------------------
INVESTMENT ADVISOR Oppenheimer Management Corporation
- -------------------------------------------------------------------------------
DISTRIBUTOR Oppenheimer Funds Distributor, Inc.
- -------------------------------------------------------------------------------
TRANSFER AND SHAREHOLDER Oppenheimer Shareholder Services
SERVICING AGENT
- -------------------------------------------------------------------------------
CUSTODIAN OF The Bank of New York
PORTFOLIO SECURITIES
- -------------------------------------------------------------------------------
INDEPENDENT AUDITORS KPMG Peat Marwick LLP
- -------------------------------------------------------------------------------
LEGAL COUNSEL Gordon Altman Butowsky Weitzen Shalov & Wein
This is a copy of a report to shareholders of
Oppenheimer Global Emerging Growth Fund. This
report must be preceded or accompanied by a
Prospectus of Oppenheimer Global Emerging
Growth Fund. For material information
concerning the Fund, see the Prospectus. Shares
of Oppenheimer funds are not deposits or
obligations of any bank, are not guaranteed by
any bank, and are not insured by the FDIC or
any other agency, and involve investment risks,
including possible loss of the principal amount
invested.
21 Oppenheimer Global Emerging Growth Fund
<PAGE>
OPPENHEIMERFUNDS FAMILY
- -------------------------------------------------------------------------------
OppenheimerFunds offers over 30 funds designed to fit
virtually every investment goal. Whether you're investing for
retirement, your children's education or tax-free income, we
have the funds to help you seek your objective.
When you invest with OppenheimerFunds, you can feel
comfortable knowing that you are investing with a respected
financial institution with over 35 years of experience in
helping people just like you reach their financial goals. And
you're investing with a leader in global, growth stock and
flexible fixed income investments--with over 2.8 million
shareholder accounts and more than $38 billion under
Oppenheimer's management and that of our affiliates.
At OppenheimerFunds, we don't charge a fee to exchange
shares. And you can exchange shares easily by mail or by
telephone(1) For more information on Oppenheimer funds, please
contact your financial advisor or call us at 1-800-525-7048
for a prospectus. You may also write us at the address shown
on the back cover. As always, please read the prospectus
carefully before you invest.
- -------------------------------------------------------------------------------
STOCK FUNDS Discovery Fund Global Fund
Global Emerging Growth Fund Oppenheimer Fund
Target Fund Value Stock Fund
Growth Fund Gold &Special Minerals
Fund
- -------------------------------------------------------------------------------
STOCK & BOND
FUNDS Main Street Income & Growth Fund Equity Income Fund
Total Return Fund Asset Allocation Fund
Global Growth &Income Fund Strategic Income & Growth
Fund
- -------------------------------------------------------------------------------
BOND FUNDS High Yield Fund Bond Fund
Champion Income Fund U.S. Government Trust
Strategic Income Fund Limited-Term Government
International Bond Fund Fund
- -------------------------------------------------------------------------------
TAX-EXEMPT FUNDS New York Tax-Exempt Fund(2) New Jersey Tax-Exempt
Fund(2)
California Tax-Exempt Fund(2) Tax-Free Bond Fund
Pennsylvania Tax-Exempt Fund(2) Insured Tax-Exempt Fund
Florida Tax-Exempt Fund(2) Intermediate Tax-Exempt
Fund
- -------------------------------------------------------------------------------
MONEY MARKET
FUNDS Money Market Fund Cash Reserves
1. Exchange privileges are subject to change or termination.
Shares may be exchanged only to the same class of eligible
funds.
2. Available only to investors in certain states.
Oppenheimer funds are distributed by Oppenheimer Funds
Distributor, Inc., Two World Trade Center,
New York, NY 10048-0203.
Copyright 1995 Oppenheimer Management Corporation. All rights
reserved.
22 Oppenheimer Global Emerging Growth Fund
<PAGE>
INFORMATION
GENERAL INFORMATION
Monday-Friday 8:30 a.m.-8 p.m. ET
Saturday 10 a.m.-2 p.m. ET
1-800-525-7048
TELEPHONE TRANSACTIONS
Monday-Friday 8:30 a.m.-8 p.m. ET
1-800-852-8457
PHONELINK
24 hours a day, automated
information and transactions
1-800-533-3310
TELECOMMUNICATIONS DEVICE
FOR THE DEAF (TDD)
Monday-Friday 8:30 a.m.-8 p.m. ET
1-800-843-4461
OPPENHEIMERFUNDS
INFORMATION HOTLINE
24 hours a day, timely and insightful
messages on the economy and
issues that affect your investments
1-800-835-3104
RAO720.001.0929 November 30, 1995
[PHOTO]
Jennifer Leonard, Customer Service Representative
Oppenheimer Shareholder Services
"How may I help you?"
As an Oppenheimer funds shareholder, you have some special privileges. Whether
it's automatic investment plans, informative newsletters and hotlines, or
ready account access, you can benefit from services designed to make
investing simple.
And when you need help, our Customer Service Representatives are only a
toll-free phone call away. They can provide information about your account
and handle administrative requests. You can reach them at our General
Information number.
When you want to make a transaction, you can do it easily by calling our
toll-free Telephone Transactions number. And, by enrolling in AccountLink, a
convenient service that "links" your Oppenheimer funds accounts and your bank
checking or savings account, you can use the Telephone Transactions number to
make investments.
For added convenience, you can get automated information with
OppenheimerFunds PhoneLink service, available 24 hours a day, 7 days a week.
PhoneLink gives you access to a variety of fund, account, and market
information. Of course, you can always speak with a Customer Service
Representative during the General Information hours shown at the left.
You can count on us whenever you need assistance. That's why the
International Customer Service Association, an independent, nonprofit
organization made up of over 3,200 customer service management professionals
from around the country, honored the Oppenheimer funds' transfer agent,
Oppenheimer Shareholder Services, with their Award of Excellence in 1993.
So call us today--we're here to help.
- -------------------------------------------------------------------------------
[LOGO] --------------
Oppenheimer Funds Distributor, Inc. Bulk Rate
P.O. Box 5270 U.S. Postage
Denver, CO 80217-5270 PAID
Permit No. 469
Denver, CO
--------------
