<PAGE> 1
OPPENHEIMER GLOBAL EMERGING GROWTH FUND
Semiannual Report March 31, 1995
"We want to
go after
[PHOTO] high
long-term
growth."
[LOGO] OPPENHEIMERFUNDS
<PAGE> 2
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 potential
for growth, the Fund's manager uses a theme-oriented approach, such as
telecommunications expansion, emerging consumer markets, infra-structure
development, and efficiency-enhancing technology, among others, to capitalize on
key global growth trends.
- --------------------------------------------------------------------------------
PERFORMANCE
- --------------------------------------------------------------------------------
Total return at net asset value for the 6 months ended 3/31/95 was -15.09%.(1)
Global 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 short-term market fluctuations.
Your Fund's average annual total returns at maximum offering price for the
1- and 5-year periods ended 3/31/95 and since inception on 12/30/87 were
- -25.94%, 5.28% and 6.65%, respectively.(2)
- --------------------------------------------------------------------------------
OUTLOOK
- --------------------------------------------------------------------------------
"The Fund's restructuring has been completed. While this was undertaken at what
turned out to be a difficult period for the global stock markets, the portfolio
is now composed of high-potential growth stocks in promising markets across
North America, Europe, and Asia. Currently, we are finding small-cap growth
stocks at very attractive valuations. We believe the Fund is well positioned for
solid performance going forward."
Jim Ayer, Portfolio Manager
March 31, 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 3/31/95,
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 4/1/94, 3/31/90, and
12/30/87 (inception of Fund), after deducting the current maximum initial sales
charge of 5.75%.
2 Oppenheimer Global Emerging Growth Fund
<PAGE> 3
[PHOTO]
Donald W. Spiro
President
Oppenheimer Global
Emerging Growth Fund
[PHOTO]
Jon S. Fossel
Chairman and CEO
Oppenheimer
Management
Corporation
Dear OppenheimerFunds Shareholder,
As we review events in the world's stock markets over the past several months,
such as the devaluation of the Mexican peso, the political and economic
uncertainties surrounding much of Europe, and the dollar's decline against many
other major currencies, one question comes to mind: Is the bloom off the global
investing rose?
That's a good question and, at OppenheimerFunds, we believe there is a
good answer: For investors seeking the potential benefits of
diversification--improved returns and lower overall risk--global investing is
actually more important than ever before.
Given the current perception of heightened global risk, this may seem like
an unusual statement. But over the past two years, there has been an
unprecedented situation--almost universally favorable conditions in many of the
world's stock markets.
Starting in the early 1990s, investors began allocating increasing amounts
of capital offshore, causing stock prices worldwide to rise virtually in unison.
On the heels of Mexico's devaluation of the peso and following other events,
these conditions are changing. Capital inflows are diminishing and offshore
markets are no longer moving in lockstep. Instead, they are returning to their
historic pattern of differentiated performance, based on the fundamentals of
their economies, markets, and individual companies. And in our view--based on 20
years of global investing experience--this development is creating outstanding
opportunities to find value at attractive prices.
For example, stock prices in most markets across Latin America have been
affected by the devaluation of the Mexican peso. In many of these countries, we
believe the downturn simply isn't justified. Chile and Argentina, for instance,
have well-managed economies with strong currencies. As that becomes clear to
investors, we expect these markets to rebound strongly.
The same is true of Asia. While Japan continues to face significant issues
that will take time to work out, other Asian markets seem undervalued to us
relative to their growth potential. Increasingly, these markets should move on
their own merits, and those merits are substantial.
Europe also appears to have under-recognized strengths. In our view,
economic recovery is gaining steam across the continent, and the restructuring
of European industry for global competitiveness has proceeded at a remarkable
pace. While many companies are dealing with the pressures of a declining U.S.
dollar, which makes U.S. goods cheaper abroad, they are dealing with those
pressures well. And as the dollar rises--as we believe it will as the U.S. trade
deficit lessens and the need to support the Mexican peso abates--the strength of
European industry should be reflected in solid gains in sales, earnings, and
stock prices.
Your portfolio manager discusses the outlook for your Fund on the
following pages. We appreciate your trust in OppenheimerFunds, and we'll
continue to do our best to help meet your investment objectives in the future.
/s/ Donald W. Spiro /s/ Jon S. Fossel
- ------------------- -----------------
Donald W. Spiro Jon S. Fossel
April 24, 1995
3 Oppenheimer Global Emerging Growth Fund
<PAGE> 4
Q+A [PHOTO]
Q Will the Fund's performance improve?
An interview with your Fund's manager.
THE FUND'S PERFORMANCE WAS DOWN OVER THE PAST 12 MONTHS. WHAT FACTORS AFFECTED
PERFORMANCE?
The most significant factor was that we were restructuring our former biotech
and environmental fund portfolios into the Global Emerging Growth Fund during
one of the worst periods for biotech stocks--and a difficult time for the
world's stock markets.
The good news is that this restructuring is now behind us. We hold the
stocks of companies with strong growth pros-pects in specific investment themes
such as: healthcare, efficiency-enhancing technology, infrastructure,
telecommunications, and emerging consumer markets.
The portfolio is fairly evenly divided among North America, Europe, and
Asia. We remain cautious on Latin America but valuations there are starting to
look attractive.(1)
We believe our major challenge is in the past, and we're looking forward
to much improved performance ahead.
WHAT MAKES YOU SO CONFIDENT THE FUND'S PERFORMANCE WILL IMPROVE?
There's a flip side to selling into down markets; the broad declines in
small-cap stock prices we've seen over the past several months also allowed us
to buy growth at attractive prices. We've been able to buy many stocks at low
valuations relative to their growth potential.
At the same time, the market setbacks we experienced last year should
prove temporary. Inflation in the U.S. and worldwide remains very low,
economies and business earnings are growing at attractive rates, and interest
rates remain low by historical standards.
These factors should set the stage for renewed outperformance by growth
stocks, and we believe the Fund is positioned to participate fully in any gains.
1. The Fund's portfolio is subject to change.
4 Oppenheimer Global Emerging Growth Fund
<PAGE> 5
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.
A The market
setbacks
we experienced
last year
should prove
temporary.
DON'T MANY EMERGING MARKETS FACE STRUCTURAL PROBLEMS THAT WILL TAKE TIME TO
RESOLVE?
Some do, but this isn't an emerging markets fund; it's an emerging growth
company fund. I can't stress that strongly enough. While we're interested in
emerging markets, most of the companies we own today are in established markets
in the U.S., Europe, and Asia. For example, we currently have less than two
percent of the Fund's assets in Latin America, and nothing in Mexico. In other
words, we're not "betting" on "emerging markets" as an asset class. We're buying
carefully selected growth companies in both mature and emerging markets.
Of course, any foreign investment is subject to adverse market changes due
to currency fluctuations, and sometimes the shifts can be sharp. By diversifying
the portfolio, by country and industry, we're able to help mitigate those risks.
WHAT KINDS OF STOCKS ARE YOU FOCUSING ON TODAY?
As I mentioned earlier, we take a thematic approach to investing, and the Fund's
portfolio reflects that.
As might be expected, our selling over the past several months has been
biotech related. We invested some of the proceeds from those sales in companies
positioned to benefit at this stage of the capital-investment cycle, specialized
equipment manufacturers such as Traub in Germany, Valmet in Finland, and
Measurex in the U.S.
WHAT'S YOUR OUTLOOK FOR THE FUND?
There are only a dozen or so global small-company funds today, and this number
is likely to grow. As that trend develops, the prices of the kinds of stocks in
which we invest should benefit. The outlook for individual markets or industry
groups is important, of course, but the portfolio reflects above all the
prospects for specific companies' performance.
In assessing those prospects, we benefit from the insight and experience
of Oppenheimer Management Corporation's global team and our small-company
investment specialists. We're confident that the stocks we're holding today have
the potential to perform very well as growth stocks resume their market
leadership. / /
5 Oppenheimer Global Emerging Growth Fund
<PAGE> 6
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS March 31, 1995 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
==================================================================================================================================
<S> <C> <C>
COMMON STOCKS--80.8%
- ----------------------------------------------------------------------------------------------------------------------------------
BASIC MATERIALS--10.5%
- ----------------------------------------------------------------------------------------------------------------------------------
CHEMICALS--1.1%
Dyno Industrier AS 35,000 $ 876,142
- ----------------------------------------------------------------------------------------------------------------------------------
PT Argha Karya Prima Ind. 800,000 679,177
------------
1,555,319
- ----------------------------------------------------------------------------------------------------------------------------------
GOLD--1.7%
- ----------------------------------------------------------------------------------------------------------------------------------
GOLD MINING: CANADA--0.8%
Dayton Mining Corp.(1) 400,000 1,169,132
- ----------------------------------------------------------------------------------------------------------------------------------
PLATINUM MINING--0.9%
Stillwater Mining Co.(1) 75,000 1,331,250
------------
2,500,382
- ----------------------------------------------------------------------------------------------------------------------------------
METALS--4.9%
- ----------------------------------------------------------------------------------------------------------------------------------
ALUMINUM--0.8%
Alcan Australia Ltd.(1) 600,000 1,122,248
- ----------------------------------------------------------------------------------------------------------------------------------
METALS--2.5%
Inchon Iron & Steel Co. 50,000 2,305,401
- ----------------------------------------------------------------------------------------------------------------------------------
Ugine SA 20,000 1,355,300
------------
3,660,701
- ----------------------------------------------------------------------------------------------------------------------------------
METALS: DIVERSIFIED--0.6%
Elkem AS(1) 75,000 905,088
- ----------------------------------------------------------------------------------------------------------------------------------
METALS: MISCELLANEOUS--1.0%
Suedelektra Holdings(1) 2,000 1,545,233
------------
7,233,270
- ----------------------------------------------------------------------------------------------------------------------------------
PAPER--2.8%
Attisholz Holding AG 2,500 1,753,928
- ----------------------------------------------------------------------------------------------------------------------------------
Corticeira Amorim, SA 70,000 1,115,344
- ----------------------------------------------------------------------------------------------------------------------------------
PT Pabrik Kertas Tjiwi Kimia 650,000 1,161,751
------------
4,031,023
- ----------------------------------------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS--11.1%
- ----------------------------------------------------------------------------------------------------------------------------------
AUTOS AND HOUSING--1.1%
Thai Stanley Electric Co., Ltd. 400,000 1,622,719
- ----------------------------------------------------------------------------------------------------------------------------------
LEISURE AND ENTERTAINMENT--1.7%
Filmes Lusomundo SA 70,000 848,631
- ----------------------------------------------------------------------------------------------------------------------------------
Golden Harvest Entertainment Ltd.(1) 5,000,000 795,376
- ----------------------------------------------------------------------------------------------------------------------------------
King World Productions, Inc.(1) 22,300 878,063
------------
2,522,070
- ----------------------------------------------------------------------------------------------------------------------------------
MEDIA--3.3%
News Corp. Ltd., ADR 9,900 189,338
- ----------------------------------------------------------------------------------------------------------------------------------
Roto Smeets de Boer 74,000 1,620,433
- ----------------------------------------------------------------------------------------------------------------------------------
Sistem Televisyen Malaysia Berhad 150,000 313,922
- ----------------------------------------------------------------------------------------------------------------------------------
TV 4 AB 100,000 1,858,880
- ----------------------------------------------------------------------------------------------------------------------------------
United International Holdings, Inc., Cl. A(1) 50,000 812,500
------------
4,795,073
- ----------------------------------------------------------------------------------------------------------------------------------
RETAIL: GENERAL--1.4%
PT Matahari Putra Prima 500,000 759,607
- ----------------------------------------------------------------------------------------------------------------------------------
Sonae Industria E. Investimentos(1) 50,000 1,210,598
------------
1,970,205
- ----------------------------------------------------------------------------------------------------------------------------------
RETAIL: SPECIALTY--3.6%
Giordano Holdings Ltd. 379,300 252,631
- ----------------------------------------------------------------------------------------------------------------------------------
Lindex AB 145,000 2,070,718
- ----------------------------------------------------------------------------------------------------------------------------------
Lotte Confectionery Co. 5,000 715,581
- ----------------------------------------------------------------------------------------------------------------------------------
Vereinigte Baubeschlag 7,000 2,271,114
------------
5,310,044
</TABLE>
6 Oppenheimer Global Emerging Growth Fund
<PAGE> 7
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS March 31, 1995 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
==================================================================================================================================
<S> <C> <C>
CONSUMER NON-CYCLICALS--19.1%
- ----------------------------------------------------------------------------------------------------------------------------------
BEVERAGES--1.9%
Jinro Ltd. 40,000 $ 1,233,001
- ----------------------------------------------------------------------------------------------------------------------------------
Noble China, Inc.(1)(2) 300,000 1,603,992
------------
2,836,993
- ----------------------------------------------------------------------------------------------------------------------------------
FOOD--3.0%
Cafe de Coral Holdings Ltd. 5,000,000 1,215,696
- ----------------------------------------------------------------------------------------------------------------------------------
Mavesa ADR(5) 133,333 525,359
- ----------------------------------------------------------------------------------------------------------------------------------
Molinos Rio de la Plata SA, Cl. B(1) 100,000 505,124
- ----------------------------------------------------------------------------------------------------------------------------------
PT Fast Food Indonesia 755,000 809,652
- ----------------------------------------------------------------------------------------------------------------------------------
United Foods Co. Ltd. 651,500 462,526
- ----------------------------------------------------------------------------------------------------------------------------------
Universal Robina Corp. 1,500,000 854,245
------------
4,372,602
- ----------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE/DRUGS--12.0%
- ----------------------------------------------------------------------------------------------------------------------------------
ANIMAL HEALTHCARE--0.7%
Idexx Laboratories, Inc.(1) 25,000 1,037,500
- ----------------------------------------------------------------------------------------------------------------------------------
DRUGS/BIO-PHARMACEUTICALS--1.7%
Biota Holdings Ltd.(1) 1,000,000 975,549
- ----------------------------------------------------------------------------------------------------------------------------------
Tiger Medicals Ltd. 142,000 165,968
- ----------------------------------------------------------------------------------------------------------------------------------
Vertex Pharmaceuticals, Inc. 50,000 675,000
- ----------------------------------------------------------------------------------------------------------------------------------
Watson Pharmaceuticals, Inc.(1) 25,000 737,500
------------
2,554,017
- ----------------------------------------------------------------------------------------------------------------------------------
HUMAN HEALTHCARE--8.1%
Advanced Tissue Sciences, Inc., Cl. A(1) 150,000 1,050,000
- ----------------------------------------------------------------------------------------------------------------------------------
Cephalon, Inc.(1) 150,000 1,050,000
- ----------------------------------------------------------------------------------------------------------------------------------
COR Therapeutics, Inc.(1) 150,000 1,950,000
- ----------------------------------------------------------------------------------------------------------------------------------
Gilead Sciences, Inc.(1) 110,000 1,430,000
- ----------------------------------------------------------------------------------------------------------------------------------
IG Laboratories, Inc.(1) 325,000 1,543,750
- ----------------------------------------------------------------------------------------------------------------------------------
Magainin Pharmaceuticals, Inc.(1) 250,000 1,125,000
- ----------------------------------------------------------------------------------------------------------------------------------
Martek Biosciences Corp.(1) 100,000 925,000
- ----------------------------------------------------------------------------------------------------------------------------------
Matrix Pharmaceutical, Inc.(1) 80,000 1,100,000
- ----------------------------------------------------------------------------------------------------------------------------------
Penederm, Inc.(1) 100,000 687,500
- ----------------------------------------------------------------------------------------------------------------------------------
Quintiles Transnational Corp.(1)(6) 28,950 944,494
------------
11,805,744
- ----------------------------------------------------------------------------------------------------------------------------------
AGRICULTURE BIOTECHNOLOGY--1.5%
DNA Plant Technology Corp.(1) 300,000 825,000
- ----------------------------------------------------------------------------------------------------------------------------------
Plant Genetics Systems International NV(1)(6) 213,944 1,320,732
------------
2,145,732
------------
17,542,993
- ----------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE/SUPPLIES
AND SERVICES--1.4%
Arjo AB 50,000 820,893
- ----------------------------------------------------------------------------------------------------------------------------------
PerSeptive Biosystems, Inc.(1) 65,920 444,960
- ----------------------------------------------------------------------------------------------------------------------------------
PerSeptive Biosystems, Inc.(1) 34,080 218,538
- ----------------------------------------------------------------------------------------------------------------------------------
PerSeptive Technology II Corp., Units(1) 100,000 500,000
------------
1,984,391
- ----------------------------------------------------------------------------------------------------------------------------------
HOUSEHOLD GOODS--0.8%
Srithai Superware Co. Ltd. 200,000 1,208,926
- ----------------------------------------------------------------------------------------------------------------------------------
ENERGY--3.9%
- ----------------------------------------------------------------------------------------------------------------------------------
ENERGY SERVICES
AND PRODUCERS--3.0%
Petroleum Geo-Services AS(1) 80,000 1,793,869
- ----------------------------------------------------------------------------------------------------------------------------------
Transocean Drilling AS(1) 243,700 2,583,252
------------
4,377,121
</TABLE>
7 Oppenheimer Global Emerging Growth Fund
<PAGE> 8
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS March 31, 1995 (Unaudited) (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
==================================================================================================================================
<S> <C> <C>
OIL--INTEGRATED--0.9%
Elf Gabon SA 7,000 $ 1,401,172
- ----------------------------------------------------------------------------------------------------------------------------------
FINANCIAL--3.7%
- ----------------------------------------------------------------------------------------------------------------------------------
BANKS--0.5%
PT Bank Dagang Nasional 500,000 748,436
- ----------------------------------------------------------------------------------------------------------------------------------
Diversified Financial--0.6%
Manhattan Card Co. Ltd. 2,120,000 856,807
- ----------------------------------------------------------------------------------------------------------------------------------
INSURANCE--2.6%
Marschollek, Lautenschlaeger und Partner AG 3,000 1,791,023
- ----------------------------------------------------------------------------------------------------------------------------------
Reinsurance Australia Corp.(1) 1,250,000 2,017,112
------------
3,808,135
- ----------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL--21.4%
- ----------------------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--1.1%
PT Kabelmetal Indonesia 648,500 1,028,675
- ----------------------------------------------------------------------------------------------------------------------------------
Sheldahl, Inc.(1) 45,000 540,000
------------
1,568,675
- ----------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL MATERIALS--1.5%
India Cements Ltd., GDR(5) 60,000 570,000
- ----------------------------------------------------------------------------------------------------------------------------------
PT Mulia Industrindo 500,000 871,314
- ----------------------------------------------------------------------------------------------------------------------------------
Sung Shin Cement Industrial Co. Ltd.(1) 20,000 813,366
------------
2,254,680
- ----------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL SERVICES--6.4%
Adia SA 7,000 1,286,806
- ----------------------------------------------------------------------------------------------------------------------------------
BIS SA(1) 10,000 746,666
- ----------------------------------------------------------------------------------------------------------------------------------
Hong Kong Aircraft Engineering Co. Ltd. 300,000 793,436
- ----------------------------------------------------------------------------------------------------------------------------------
Ionics, Inc. 30,000 900,000
- ----------------------------------------------------------------------------------------------------------------------------------
ISS International Service System AS, Series B 30,000 818,279
- ----------------------------------------------------------------------------------------------------------------------------------
PT Intraco Penta 337,500 273,961
- ----------------------------------------------------------------------------------------------------------------------------------
Samsung Construction Co.(1) 15,000 444,891
- ----------------------------------------------------------------------------------------------------------------------------------
Samsung Construction Co.(1) 5,774 171,253
- ----------------------------------------------------------------------------------------------------------------------------------
Samsung Engineering & Construction GDR(1) 60,000 450,000
- ----------------------------------------------------------------------------------------------------------------------------------
Samsung Engineering & Construction GDR(1) 30,797 230,978
- ----------------------------------------------------------------------------------------------------------------------------------
Sanifill, Inc.(1) 25,000 615,625
- ----------------------------------------------------------------------------------------------------------------------------------
Tetra Tech, Inc.(1) 40,000 780,000
- ----------------------------------------------------------------------------------------------------------------------------------
Tetra Technologies, Inc.(1) 60,000 720,000
- ----------------------------------------------------------------------------------------------------------------------------------
United Waste Systems, Inc.(1) 40,000 1,130,000
------------
9,361,895
- ----------------------------------------------------------------------------------------------------------------------------------
MANUFACTURING--8.1%
Buderus AG 1,500 789,190
- ----------------------------------------------------------------------------------------------------------------------------------
Catena AB Free, Series A(1) 200,000 1,492,532
- ----------------------------------------------------------------------------------------------------------------------------------
Gildemeister AG 10,000 803,804
- ----------------------------------------------------------------------------------------------------------------------------------
Measurex Corp. 85,000 2,114,375
- ----------------------------------------------------------------------------------------------------------------------------------
Plettac AG 1,500 838,514
- ----------------------------------------------------------------------------------------------------------------------------------
Powerscreen International PLC 200,000 814,400
- ----------------------------------------------------------------------------------------------------------------------------------
Schweizerische Industrie GmbH 700 1,367,620
- ----------------------------------------------------------------------------------------------------------------------------------
Traub AG(1) 14,000 1,677,759
- ----------------------------------------------------------------------------------------------------------------------------------
Valmet Corp., Cl. A(1) 100,000 1,954,197
------------
11,852,391
</TABLE>
8 Oppenheimer Global Emerging Growth Fund
<PAGE> 9
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
==================================================================================================================================
<S> <C> <C>
TRANSPORTATION--4.3%
Koninklijke Frans Maas Groep NV(1) 13,875 $ 399,062
- ----------------------------------------------------------------------------------------------------------------------------------
Lisnave-Estaleiros Navais de Lisbona SA(1) 300,000 1,469,345
- ----------------------------------------------------------------------------------------------------------------------------------
Pacific Carriers Ltd. 1,000,000 1,062,538
- ----------------------------------------------------------------------------------------------------------------------------------
Singmarine Industries Ltd. 500,000 1,246,711
- ----------------------------------------------------------------------------------------------------------------------------------
Unitor Ships Service AS 75,000 1,064,090
- ----------------------------------------------------------------------------------------------------------------------------------
Westmont Berhad Ord. 200,000 1,002,970
------------
6,244,716
- ----------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY--9.5%
- ----------------------------------------------------------------------------------------------------------------------------------
COMPUTER SOFTWARE--1.2%
Compuware Corp.(1) 50,000 1,850,000
- ----------------------------------------------------------------------------------------------------------------------------------
ELECTRONICS--2.8%
Austria Mikro Systeme International AG 10,000 939,690
- ----------------------------------------------------------------------------------------------------------------------------------
Cray Electronics Holdings 300,000 798,926
- ----------------------------------------------------------------------------------------------------------------------------------
Molecular Dynamics, Inc.(1) 200,000 1,150,000
- ----------------------------------------------------------------------------------------------------------------------------------
Oxford GlycoSystems Group PLC 515,132 1,179,727
------------
4,068,343
TELECOMMUNICATIONS-
TECHNOLOGY--5.5%
Glenayre Technologies, Inc.(1) 15,000 682,500
- ----------------------------------------------------------------------------------------------------------------------------------
Korea Mobile Telecommunications Corp. 3,000 2,257,559
- ----------------------------------------------------------------------------------------------------------------------------------
Korea Mobile Telecommunications GDR(5) 8,000 214,500
- ----------------------------------------------------------------------------------------------------------------------------------
Loxley Co. Ltd. 50,000 957,404
- ----------------------------------------------------------------------------------------------------------------------------------
Millicom International Cellular SA(1) 25,000 662,500
- ----------------------------------------------------------------------------------------------------------------------------------
SR Telecom, Inc. 141,500 1,424,835
- ----------------------------------------------------------------------------------------------------------------------------------
Star Paging (International Holding) Ltd. 3,000,000 721,658
- ----------------------------------------------------------------------------------------------------------------------------------
Technology Resources Industries Berhad 386,000 1,105,044
------------
8,026,000
- ----------------------------------------------------------------------------------------------------------------------------------
UTILITIES--1.6%
- ----------------------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES--1.6%
Central Costanera SA, Cl. B 400,000 1,180,290
- ----------------------------------------------------------------------------------------------------------------------------------
Central Puerto SA, Cl. B 200,000 676,166
- ----------------------------------------------------------------------------------------------------------------------------------
Wing Shan International Ltd. 4,000,000 486,278
------------
2,342,734
------------
Total Common Stocks (Cost $127,583,026) 118,247,115
==================================================================================================================================
PREFERRED STOCKS--3.8%
BAU Holdings AF 4,500 280,350
- ----------------------------------------------------------------------------------------------------------------------------------
Cambridge Antibody Technology Ltd., Cv.(1)(2) 100,000 2,655,228
- ----------------------------------------------------------------------------------------------------------------------------------
Moebel Walther AG(1) 2,000 971,871
- ----------------------------------------------------------------------------------------------------------------------------------
Synaptic Pharmaceutical Corp., Cv. Series 3(1)(2)(6) 500,000 1,642,895
------------
Total Preferred Stocks (Cost $6,540,572) 5,550,344
UNITS
==================================================================================================================================
RIGHTS, WARRANTS AND CERTIFICATES--0.0%
- ----------------------------------------------------------------------------------------------------------------------------------
PerSeptive Biosystems, Inc. Wts., Exp. 12/97 40,110 0
Protein Polymer Technologies, Inc. Wts., Exp. 1/97 100,000 6,251
------------
Total Rights, Warrants and Certificates (Cost $383,662) 6,251
FACE
AMOUNT
==================================================================================================================================
REPURCHASE AGREEMENTS--15.3%
Repurchase agreement with First Chicago Capital Markets, 6.25%,
dated 3/31/95, to be repurchased at $22,511,719 on 4/3/95, collateralized
by U.S. Treasury Nts., 4.75%--8.875%, 5/15/96--10/31/99 with a value
of $19,633,019 and U.S. Treasury Bonds, 8.125%--12.50%, 8/14/14--8/15/19,
with a value of $3,341,433 (Cost $22,500,000) $22,500,000 22,500,000
</TABLE>
9 Oppenheimer Global Emerging Growth Fund
<PAGE> 10
- -------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS March 31, 1995 (Unaudited) (Continued)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
===========================================================================================================================
<S> <C> <C>
TOTAL INVESTMENTS, AT VALUE (COST $157,007,260) 99.9% $146,303,710
- ---------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 0.1 94,707
----- ------------
NET ASSETS 100.0% $146,398,417
===== ============
</TABLE>
1. Non-income producing security.
2. Affiliated company. Represents ownership of at least 5% of the voting
securities of the issuer and is or was an affiliate, as defined in the
Investment Company Act of 1940, at or during the period ended March 31, 1995.
The aggregate fair value of all securities of affiliated companies as of March
31, 1995 amounted to $5,469,652. Transactions during the period in which the
issuer was an affiliate are as follows:
<TABLE>
<CAPTION>
BALANCE SEPTEMBER 30, 1994 GROSS ADDITIONS GROSS REDUCTIONS BALANCE MARCH 31, 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.(3) 146,600 660,529 153,400 743,091 -- -- 300,000 1,403,619
- ------------------------------------------------------------------------------------------------------------------------------
Synaptic Pharmaceutical Corp.,
Cv. Series 3(4) 500,000 2,000,000 -- -- -- -- 500,000 2,000,000
---------- -------- ----- ----------
$5,960,529 $743,091 $ -- $6,703,619
========== ======== ===== ==========
</TABLE>
3. Not an affiliate as of September 30, 1994.
4. Not an affiliate as of March 31, 1995.
5. 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 $1,309,859 or 0.9% of the Fund's net assets, at March 31,
1995.
6. Identifies issues considered to be illiquid--See Note 7 of Notes to Financial
Statements.
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 $ 57,215,425 39.1%
- -------------------------------------------------------------------------------------
Germany 9,143,276 6.2
- -------------------------------------------------------------------------------------
Korea, Republic of (South) 8,836,529 6.0
- -------------------------------------------------------------------------------------
Norway 7,222,441 4.9
- -------------------------------------------------------------------------------------
Indonesia 6,332,573 4.3
- -------------------------------------------------------------------------------------
Sweden 6,243,023 4.3
- -------------------------------------------------------------------------------------
Switzerland 5,953,586 4.1
- -------------------------------------------------------------------------------------
Hong Kong 5,121,883 3.5
- -------------------------------------------------------------------------------------
Portugal 4,643,919 3.2
- -------------------------------------------------------------------------------------
Australia 4,304,247 2.9
- -------------------------------------------------------------------------------------
Thailand 4,251,574 2.9
- -------------------------------------------------------------------------------------
Canada 4,197,959 2.9
- -------------------------------------------------------------------------------------
France 3,503,139 2.4
- -------------------------------------------------------------------------------------
Great Britain 2,793,054 1.9
- -------------------------------------------------------------------------------------
Singapore 2,475,218 1.7
- -------------------------------------------------------------------------------------
Malaysia 2,421,936 1.7
- -------------------------------------------------------------------------------------
Argentina 2,361,581 1.6
- -------------------------------------------------------------------------------------
Netherlands 2,019,495 1.4
- -------------------------------------------------------------------------------------
Finland 1,954,197 1.3
- -------------------------------------------------------------------------------------
Belgium 1,320,732 0.9
- -------------------------------------------------------------------------------------
Austria 1,220,040 0.8
- -------------------------------------------------------------------------------------
Philippines 854,245 0.6
- -------------------------------------------------------------------------------------
Denmark 818,279 0.6
- -------------------------------------------------------------------------------------
India 570,000 0.4
- -------------------------------------------------------------------------------------
Venezuela 525,359 0.4
------------ -----
Total $146,303,710 100.0%
============ =====
</TABLE>
See accompanying Notes to Financial Statements.
10 Oppenheimer Global Emerging Growth Fund
<PAGE> 11
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES March 31, 1995 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
===============================================================================================
<S> <C>
ASSETS
Investments, at value (including repurchase agreements of $22,500,000)
(cost $157,007,260)--see accompanying statement $146,303,710
- -----------------------------------------------------------------------------------------------
Cash 989,022
- -----------------------------------------------------------------------------------------------
Receivables:
Investments sold 2,147,132
Interest and dividends 192,434
Shares of beneficial interest sold 109,345
- -----------------------------------------------------------------------------------------------
Other 26,422
------------
Total assets 149,768,065
===============================================================================================
LIABILITIES
Unrealized depreciation on forward foreign currency exchange contracts--Note 5 42,598
- -----------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 2,131,713
Shares of beneficial interest redeemed 992,264
Service plan fees--Note 6 90,447
Transfer and shareholder servicing agent fees--Note 6 14,846
Trustees' fees 9,500
Other 88,280
------------
Total liabilities 3,369,648
===============================================================================================
NET ASSETS $146,398,417
============
===============================================================================================
COMPOSITION OF
NET ASSETS
Paid-in capital $182,281,110
- -----------------------------------------------------------------------------------------------
Overdistributed net investment income (33,443)
- -----------------------------------------------------------------------------------------------
Accumulated net realized loss from investment, written option and foreign
currency transactions (25,153,817)
- -----------------------------------------------------------------------------------------------
Net unrealized depreciation on investments, options written and translation
of assets and liabilities denominated in foreign currencies (10,695,433)
------------
Net assets--applicable to 8,910,359 shares of beneficial interest outstanding $146,398,417
============
===============================================================================================
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE $16.43
===============================================================================================
MAXIMUM OFFERING PRICE PER SHARE (net asset value plus sales charge of 5.75%
of offering price) $17.43
</TABLE>
See accompanying Notes to Financial Statements.
11 Oppenheimer Global Emerging Growth Fund
<PAGE> 12
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS For the Six Months Ended March 31, 1995 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
===============================================================================================
<S> <C>
INVESTMENT INCOME
Interest $ 819,567
- -----------------------------------------------------------------------------------------------
Dividends (net of foreign withholding taxes of $27,943) 421,054
------------
Total income 1,240,621
===============================================================================================
EXPENSES
Management fees--Note 6 647,370
- -----------------------------------------------------------------------------------------------
Service plan fees--Note 6 186,728
- -----------------------------------------------------------------------------------------------
Shareholder reports 97,905
- -----------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 6 55,622
- -----------------------------------------------------------------------------------------------
Custodian fees and expenses 24,183
- -----------------------------------------------------------------------------------------------
Legal and auditing fees 18,201
- -----------------------------------------------------------------------------------------------
Trustees' fees and expenses 13,529
- -----------------------------------------------------------------------------------------------
Registration and filing fees 3,596
- -----------------------------------------------------------------------------------------------
Other 53,990
------------
Total expenses 1,101,124
===============================================================================================
NET INVESTMENT INCOME 139,497
===============================================================================================
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS,
OPTIONS WRITTEN AND FOREIGN
CURRENCY TRANSACTIONS
Net realized gain (loss) from:
Investments (24,672,363)
Closing of option contracts written--Note 4 43,393
Foreign currency transactions 136,720
------------
Net realized loss (24,492,250)
- -----------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments (5,978,904)
Translation of assets and liabilities denominated in foreign currencies 3,988,860
------------
Net change (1,990,044)
Net realized and unrealized loss on investments, options written
and foreign currency transactions (26,482,294)
===============================================================================================
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $(26,342,797)
============
</TABLE>
See accompanying Notes to Financial Statements.
12 Oppenheimer Global Emerging Growth Fund
<PAGE> 13
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 1995 SEPTEMBER 30,
(UNAUDITED) 1994
========================================================================================================================
<S> <C> <C>
OPERATIONS
Net investment income (loss) $ 139,497 $ (2,001,550)
- ------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments, options written and foreign
currency transactions (24,492,250) 3,525,707
- ------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments
and translation of assets and liabilities denominated in foreign currencies (1,990,044) (21,014,383)
------------ ------------
Net decrease in net assets resulting from operations (26,342,797) (19,490,226)
========================================================================================================================
DIVIDENDS AND
DISTRIBUTIONS TO
SHAREHOLDERS
Distributions in excess of net realized gain on investments, options
written and foreign currency transactions ($.169 per share) -- (1,561,312)
========================================================================================================================
BENEFICIAL INTEREST
TRANSACTIONS
Net increase (decrease) in net assets resulting from beneficial interest
transactions--Note 2 9,446,430 (15,350,295)
========================================================================================================================
NET ASSETS
Total decrease (16,896,367) (36,401,833)
- ------------------------------------------------------------------------------------------------------------------------
Beginning of period 163,294,784 199,696,617
------------ ------------
End of period (including overdistributed net investment income
of $33,443 and $172,940, respectively) $146,398,417 $163,294,784
============ ============
</TABLE>
See accompanying Notes to Financial Statements.
13 Oppenheimer Global Emerging Growth Fund
<PAGE> 14
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
MARCH 31, 1995 YEAR ENDED SEPTEMBER 30,
(UNAUDITED) 1994 1993 1992 1991(1) 1990
======================================================================================================================
<S> <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
- ----------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .02 (.01) (.10) (.17) (.03) (.02)
Net realized and unrealized
gain (loss) on investments,
options written and foreign
currency transactions (2.94) (2.11) 1.69 (6.47) 15.12 (.26)
------ ------ ------ ------ ------ ------
Total income (loss) from
investment operations (2.92) (2.12) 1.59 (6.64) 15.09 (.28)
- ----------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment
income -- -- -- (.01) -- --
Distributions in excess of net
realized gain on investments,
options written and foreign
currency transactions -- (.17) (.20) -- -- --
------ ------ ------ ------ ------ ------
Total dividends and distributions
to shareholders -- (.17) (.20) (.01) -- --
- ----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $16.43 $19.35 $21.64 $20.25 $26.90 $11.81
====== ====== ====== ====== ====== ======
======================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(2) (15.09)% (9.91)% 7.79% (24.70)% 127.78% (2.32)%
======================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $146,398 $163,295 $199,697 $129,634 $103,352 $16,217
- ----------------------------------------------------------------------------------------------------------------------
Average net assets
(in thousands) $156,320 $190,984 $194,184 $166,144 $50,989 $8,716
- ----------------------------------------------------------------------------------------------------------------------
Number of shares outstanding
at end of period (in thousands) 8,910 8,437 9,226 6,400 3,841 1,373
- ----------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) .18%(3) (1.05)% (.80)% (.71)% (.18)% (.37)%
Expenses 1.41%(3) 1.77% 1.59% 1.39% 1.50% 1.78%
- ----------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(4) 83.1% 54.7% 41.0% 2.6% 11.2% 16.6%
</TABLE>
1. Per share amounts calculated based on the weighted average number of
shares outstanding during the period.
2. 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.
3. Annualized.
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 six
months ended March 31, 1995 were $119,630,840 and $106,849,713, respectively.
See accompanying Notes to Financial Statements.
14 Oppenheimer Global Emerging Growth Fund
<PAGE> 15
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)
- --------------------------------------------------------------------------------
================================================================================
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Global Emerging Growth Fund (the Fund), formerly named Oppenheimer
Global Bio-Tech 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 Corporation (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 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.
- --------------------------------------------------------------------------------
TRUSTEES' FEES AND EXPENSES. The Fund has adopted a nonfunded retirement plan
for the Fund's independent trustees. Benefits are based on years of service and
fees paid to each trustee during the years of service. During the six months
ended March 31, 1995, the Fund's projected benefit obligations were reduced by
$665, and a payment of $1,689 was made to a retired trustee, resulting in an
accumulated liability of $60,594 at March 31, 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. Effective October 1, 1993, the
15 Oppenheimer Global Emerging Growth Fund
<PAGE> 16
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
- --------------------------------------------------------------------------------
================================================================================
1. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Fund adopted Statement of Position 93-2: Determination, Disclosure, and
Financial Statement Presentation of Income, Capital Gain, and Return of Capital
Distributions by Investment Companies. As a result, 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.
- --------------------------------------------------------------------------------
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>
SIX MONTHS ENDED MARCH 31, 1995 YEAR ENDED SEPTEMBER 30, 1994
------------------------------- -----------------------------
SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Sold 571,728 $ 9,837,447 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 (1,639,291) (28,027,886) (3,068,893) (65,396,462)
---------- ------------ ---------- ------------
Net increase (decrease) 472,952 $ 9,446,430 (788,999) $(15,350,295)
========== ============ ========== ============
</TABLE>
================================================================================
3. UNREALIZED GAINS AND LOSSES ON INVESTMENTS
At March 31, 1995, net unrealized depreciation on investments of $10,746,147 was
composed of gross appreciation of $8,508,490, and gross depreciation of
$19,254,637.
================================================================================
4. OPTION ACTIVITY
The Fund may buy and sell put and call options, or write covered 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.
In this report, securities designated to cover outstanding call
options are noted in the Statement of Investments. Shares subject to call,
expiration date, exercise price, premium received and market value are detailed
in a footnote to the Statement of Investments. Options written are reported as a
liability in the Statement of Assets and Liabilities. 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 six months ended March 31, 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 written -- --
- -----------------------------------------------------------------------------------
Options canceled in closing purchase transactions (250) (57,843)
---- --------
Options outstanding at March 31, 1995 -- $ --
==== ========
</TABLE>
16 Oppenheimer Global Emerging Growth Fund
<PAGE> 17
- --------------------------------------------------------------------------------
================================================================================
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. Gains and losses on outstanding contracts
(unrealized appreciation or depreciation on forward contracts) are reported in
the Statement of Assets and Liabilities. Realized gains and losses are reported
with all other foreign currency gains and losses in the Fund's Statement of
Operations.
Risks include the potential inability of the counterparty to meet
the terms of the contract and unanticipated movements in the value of a foreign
currency relative to the U.S. dollar.
At March 31, 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 EXPIRATION DATE (000'S) MARCH 31, 1995 (DEPRECIATION)
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
British Pound Sterling 4/6/95--4/13/95 1,521 $1,540,861 $(19,506)
- ------------------------------------------------------------------------------------------
Malaysian Ringgit 4/3/95--4/13/95 590 591,774 (1,609)
- ------------------------------------------------------------------------------------------
Netherlands Guilder 4/7/95 14 14,497 (7)
---------- --------
$2,147,132 $(21,122)
========== ========
</TABLE>
<TABLE>
<CAPTION>
CONTRACT UNREALIZED
AMOUNT VALUATION AS OF APPRECIATION
CONTRACTS TO SELL EXPIRATION DATE (000'S) MARCH 31, 1995 (DEPRECIATION)
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Hong Kong Dollar 4/3/95--4/4/95 86 $ 85,587 $ (7)
- ------------------------------------------------------------------------------------------
Swedish Krone 4/5/95 2,068 2,046,125 (21,469)
---------- --------
$2,131,712 (21,476)
========== --------
$(42,598)
========
</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 an annual fee of 1% on the
first $50 million of 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 state
regulatory limit on Fund expenses.
For the six months ended March 31, 1995, commissions (sales charges
paid by investors) on sales of Fund shares totaled $221,760, of which $61,931
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 institutions. During
the six months ended March 31, 1995, OFDI paid $7,837 to an affiliated
broker/dealer as reimbursement for personal service and maintenance expenses.
17 Oppenheimer Global Emerging Growth Fund
<PAGE> 18
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
- --------------------------------------------------------------------------------
================================================================================
7. ILLIQUID SECURITIES
At March 31, 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 or
restricted securities. The aggregate value of these securities subject to this
limitation at March 31, 1995 was $3,908,121 which represents 2.7% 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 MARCH 31, 1995
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Plant Genetics Systems International NV 5/27/92 $11.18 $ 6.17
- ---------------------------------------------------------------------------------------------------
Quintiles Transnational Corp. 8/2/93 $17.27 $32.63
- ---------------------------------------------------------------------------------------------------
Synaptic Pharmaceutical Corp., Cv. Series 3 1/19/93 $ 4.00 $ 3.29
</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, valued at
$27,636,869, in exchange for the net assets, resulting in combined net assets of
$174,971,153 on November 18, 1994. The exchange qualifies as a tax-free
reorganization for federal income tax purposes.
18 Oppenheimer Global Emerging Growth Fund
<PAGE> 19
- --------------------------------------------------------------------------------
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
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
SERVICING AGENT
Oppenheimer Shareholder Services
================================================================================
CUSTODIAN OF
PORTFOLIO SECURITIES
The Bank of New York
================================================================================
INDEPENDENT AUDITORS
KPMG Peat Marwick LLP
================================================================================
LEGAL COUNSEL
Gordon Altman Butowsky Weitzen Shalov & Wein
The financial statements included herein have been taken from the records of the
Fund without examination by the independent auditors. 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.
19 Oppenheimer Global Emerging Growth Fund
<PAGE> 20
INFORMATION
GENERAL INFORMATION
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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
RS0750.001.0595 May 31, 1995
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- -------------------------------------------------------------------------------
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