[COVER PAGE]
Oppenheimer Global Emerging Growth Fund
Semiannual Report March 31, 1996
[COVER PHOTO]Couple gardening
"We want to
go after
HIGH
long-term
GROWTH."
[LOGO]OppenheimerFunds/r/
<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 aggressively seeks capital appreciation
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,
focusing on such themes as telecommunications 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 Class A shares for the 6 months ended
3/31/96 was 6.43%.(1)
Your Fund's average annual total returns at maximum offering price for Class A
shares for the 1- and 5-year periods ended 3/31/96 and since inception on
12/30/87 were 10.08%, -1.14% and 7.83%, respectively. For Class B and C shares,
cumulative total returns since inception on 11/1/95 were 4.58% and 8.58%,
respectively.(2)
- --------------------------------------------------------------------------------
OUTLOOK
- --------------------------------------------------------------------------------
"Despite recent underperformance of small capitalization stocks and emerging
markets, our outlook remains positive. Foreign stock markets lagged the U.S.
market during 1995, but we believe lower interest rates, along with a stronger
dollar, will help fuel a rebound in Europe and Japan. In emerging markets, rapid
economic development is being reflected in robust growth of corporate profits,
which should continue to drive share prices higher."
George Evans, Portfolio Manager
March 31, 1996
Total returns include change in share price and reinvestment of dividends and
capital gains distributions. Past performance does not guarantee future results.
Investment return and principal value of an investment in the Fund will
fluctuate so that an investor's shares, when redeemed, may be worth more or less
than the original cost.
1. Based on the change in net asset value per share for the period shown,
without deducting any sales charges. Such performance would have been lower if
sales charges were taken into account.
2. Class A returns show results of hypothetical investments on 3/31/95, 3/31/91
and 12/30/87 (inception of Fund), after deducting the current maximum initial
sales charge 5.75%. Class B and C returns show results of hypothetical
investments on 11/1/95 after the deduction of the applicable contingent deferred
sales charge of 5% for Class B shares and 1% for Class C shares. An explanation
of the different total returns is in the Fund's prospectus.
2 Oppenheimer Global Emerging Growth Fund
<PAGE>
[PHOTO]Bridget A. Macaskill
President
Oppenheimer
Global Emerging
Growth Fund
Dear Shareholder,
After a two-year lull, foreign stock markets are beginning to make a comeback in
1996. This, coupled with the strong, albeit choppy performance of the U.S. stock
market in the first quarter continues to make a compelling case for global
funds, which typically invest in both domestic and foreign securities.
Change, however, is in the air. It is unlikely that last year's phenomenal
gains and low volatility in the U.S. stock market will be repeated this year. A
projected slowdown in corporate earnings growth and unlikely continued help from
lower interest rates will most likely return the market to more historical
levels of performance and volatility.
With many domestic stocks now believed to be fully valued, and more
expensive than their overseas counterparts, we feel a number of foreign markets
have excellent growth potential and are poised to outperform the U.S. market
this year. As a result, the time has come for investors to refocus their sights
on opportunities that lie beyond our borders.
For example, lower interest rates in Japan and much of Europe, as well as a
stronger dollar, signal an added boost for non-U.S. stocks. A stronger dollar
allows foreign exporters to more competitively price their goods and services
for American consumers.
In addition, European companies have begun to embrace corporate
restructuring, undergoing the same cost cutting and consolidation that helped
make many American companies more competitive in the global marketplace. And
after a five-year recession, the Japanese economy is expected to grow at a rate
of more than 2% in 1996, due to relatively low interest rates.
Our outlook for the world's emerging markets continues to remain positive.
In Southeast Asia, extraordinary levels of domestic savings and equity
investment over the past 15 years have created enormous individual wealth. A
shift in focus, from savings to consumption, is beginning to occur, which should
benefit certain U.S. consumer products companies as well as companies involved
in infrastructure development. Latin America appears poised for a rebound from
the Mexican peso crisis with strong cash inflows stimulating corporate
profitability in countries like Argentina and Brazil.
Because investing abroad involves greater risks and expenses, including
political and economic uncertainties, currency rate fluctuations and liquidity
restrictions, it should only be undertaken with a long time horizon in mind.
That said, we believe foreign stock markets will continue to offer excellent
growth opportunities at attractive valuations. And we're confident that by being
able to diversify investments throughout the world, we will be positioned to
participate in any economic environment.
Your portfolio manager discusses the outlook for your Fund in light of
these broad issues 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.
/s/Bridget A. Macaskill
Bridget A. Macaskill
April 19, 1996
3 Oppenheimer Global Emerging Growth Fund
<PAGE>
Q + A
[PHOTO]George Evans [PHOTO]Bill Wilby
An interview with your Fund's managers.
Q - What is your OUTLOOK for the fund?
HOW HAS THE FUND PERFORMED OVER THE PAST SIX MONTHS?
The Fund's performance reflected the underperformance of international
stock markets, and smaller emerging growth stocks throughout the world. As a
result absolute returns lagged those of many large-cap domestic funds.
WHAT INVESTMENTS MADE POSITIVE CONTRIBUTIONS TO PERFORMANCE?
[PHOTO]Robert Doll
Over the period, the Fund's performance was primarily the result of our focus on
investment opportunities that came from three of our global themes--emerging
consumer markets, telecommunications and healthcare.
First, as a result of our focus on the emerging consumer markets we invested in
companies that export goods and services to the rapidly growing economies of
developing nations. In particular, our holdings in European luxury goods
manufacturers and speciality retailers in the U.S. have done well. Second, our
emphasis on global telecommunications has provided us with some of our top
performing investments. Specifically, we were able to capitalize on the growing
demand for telecommunications technology in European and emerging markets from
our investments in radio and television broadcasting companies in those regions.
Finally, our holdings in healthcare companies have benefited from an aging
population and an increased demand for new and innovative healthcare products
and services.(1)
DID ANY INVESTMENTS NOT PERFORM AS YOU'D EXPECTED?
The Fund's performance over the period was more the result of the market's
preference for large-cap U.S. stocks than from disappointments with individual
investments. Over time, however, we believe
1. The Fund's portfolio is subject to change.
4 Oppenheimer Global Emerging Growth Fund
<PAGE>
FACING PAGE
Top left: George Evans, Portfolio Manager
Top right: Bill Wilby, Senior VP, Director of Global Investments
Bottom: Robert Doll, Executive VP, Director of Equity Investments
THIS PAGE
Top: Frank Jennings, Member of Global Investments Team
Bottom: Shanquan Li, Member of Global Investments Team
A - Lower interest rates and a stronger dollar should help fuel a REBOUND.
investment values around the world, particularly in emerging economies, will be
recognized by investors, helping emerging growth stocks to rebound.
[PHOTO]Frank Jennings
WHAT AREAS ARE YOU CURRENTLY TARGETING?
Right now we're aiming to allocate the Fund's assets equally between the
Americas, Europe and Asia. Accordingly, we have increased our investments in
Asia by adding to our holdings of small-cap Japanese companies. Many of these
small-cap issues should do well as Japan pulls out of a recession, that, in
turn, will cause corporate and consumer spending to pick up. Although the
majority of our holdings in the Americas are in the U.S., recently we've found
good values in Latin America. Finally, because economic growth remains sluggish
in Europe, our focus in this region is on careful stock selection with an
emphasis on finding companies with the potential for high future growth. Of
course, foreign investments entail greater risks and expenses such as adverse
currency fluctuations, but by diversifying our investments across many countries
and industries, we're able to help mitigate those risks.
WHAT IS YOUR OUTLOOK FOR THE FUND?
Despite recent underperformance of small capitalization stocks and emerging
markets, our outlook remains positive. Foreign stock markets lagged the U.S.
market during 1995, but we believe lower interest rates, along with a stronger
dollar will help fuel a rebound in Europe and Japan. In emerging markets, rapid
economic development is being reflected in robust growth of corporate profits,
which should continue to drive share prices higher. These factors, together with
our theme-based approach to finding the best companies around the world,
position us to participate in the coming environment.//
[PHOTO]Shanquan Li
5 Oppenheimer Global Emerging Growth Fund
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================
STATEMENT OF INVESTMENTS March 31, 1996 (Unaudited)
MARKET VALUE
SHARES SEE NOTE 1
====================================================================================================================
COMMON STOCKS - 91.1%
- --------------------------------------------------------------------------------------------------------------------
BASIC MATERIALS - 1.7%
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CHEMICALS - 1.0%
----------------------------------------------------------------------------------------------------------
Inspec Group PLC 150,000 $ 785,385
----------------------------------------------------------------------------------------------------------
Saes Getters SpA 37,000 621,076
-------------
1,406,461
- --------------------------------------------------------------------------------------------------------------------
GOLD - 0.7%
----------------------------------------------------------------------------------------------------------
Cambior, Inc. 75,000 1,018,376
- --------------------------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS - 21.0%
- --------------------------------------------------------------------------------------------------------------------
AUTOS & HOUSING - 2.2%
----------------------------------------------------------------------------------------------------------
Belmont Homes, Inc.(1) 40,000 720,000
----------------------------------------------------------------------------------------------------------
Ciadea SA(1) 199,998 900,286
----------------------------------------------------------------------------------------------------------
IRSA Inversiones y Representaciones, SA 257,201 722,972
----------------------------------------------------------------------------------------------------------
Thai Stanley Electric Co., Ltd. 150,000 701,546
-------------
3,044,804
- --------------------------------------------------------------------------------------------------------------------
LEISURE & ENTERTAINMENT - 4.6%
----------------------------------------------------------------------------------------------------------
Cinar Films, Inc., Cl. B(1) 77,200 1,196,600
----------------------------------------------------------------------------------------------------------
CKE Restaurants, Inc. 40,000 670,000
----------------------------------------------------------------------------------------------------------
Enix Corp. 20,000 556,179
----------------------------------------------------------------------------------------------------------
Galoob (Lewis) Toys, Inc.(1) 14,600 295,650
----------------------------------------------------------------------------------------------------------
Wetherspoon (J.D.)(2) 45,000 604,688
----------------------------------------------------------------------------------------------------------
Longhorn Steaks, Inc. 12,900 296,700
----------------------------------------------------------------------------------------------------------
Lusomundo SGPS SA 70,000 458,806
----------------------------------------------------------------------------------------------------------
Platinum Entertainment, Inc.(1) 40,000 500,000
----------------------------------------------------------------------------------------------------------
Quality Dining, Inc.(1) 30,000 885,000
----------------------------------------------------------------------------------------------------------
Square Co. Ltd. 15,000 830,056
-------------
6,293,679
- --------------------------------------------------------------------------------------------------------------------
MEDIA - 2.8%
----------------------------------------------------------------------------------------------------------
Capital Radio PLC 85,000 823,929
----------------------------------------------------------------------------------------------------------
Dorling Kindersley Holdings PLC 90,000 756,992
----------------------------------------------------------------------------------------------------------
NRJ SA 6,500 812,008
----------------------------------------------------------------------------------------------------------
Schibsted Gruppen AS 50,000 686,102
----------------------------------------------------------------------------------------------------------
Wireless One, Inc.(1) 50,000 806,250
-------------
3,885,281
- --------------------------------------------------------------------------------------------------------------------
RETAIL: GENERAL - 4.7%
----------------------------------------------------------------------------------------------------------
Bulgari SpA(1) 150,000 1,882,435
----------------------------------------------------------------------------------------------------------
Donnkenny, Inc.(1) 35,000 564,375
----------------------------------------------------------------------------------------------------------
Galeries Lafayette 3,000 1,003,367
----------------------------------------------------------------------------------------------------------
Lojas Americanas SA, Preference(1) 19,000,000 457,839
----------------------------------------------------------------------------------------------------------
Nautica Enterprises, Inc.(1) 11,200 534,800
----------------------------------------------------------------------------------------------------------
PT Matahari Putra Prima 400,000 872,727
----------------------------------------------------------------------------------------------------------
Quicksilver, Inc.(1) 15,000 476,250
----------------------------------------------------------------------------------------------------------
Wolverine World Wide, Inc. 24,000 672,000
-------------
6,463,793
</TABLE>
6 Oppenheimer Global Emerging Growth Fund
<PAGE>
<TABLE>
<CAPTION>
===========================================================================================================
STATEMENT OF INVESTMENTS March 31, 1996 (Unaudited)(Continued)
MARKET VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
RETAIL: SPECIALTY - 6.7%
----------------------------------------------------------------------------------------------------------
Giordano International Ltd. 1,000,000 $ 1,034,521
----------------------------------------------------------------------------------------------------------
Maruko Co. Ltd. 11,000 813,670
----------------------------------------------------------------------------------------------------------
Moebel Walther AG, Preference 40,000 1,679,780
----------------------------------------------------------------------------------------------------------
Moovies, Inc.(1) 60,000 840,000
----------------------------------------------------------------------------------------------------------
Party City Corp. 50,000 725,000
----------------------------------------------------------------------------------------------------------
Prodega AG 500 672,023
----------------------------------------------------------------------------------------------------------
Ryohin Keikaku Co. Ltd. 13,000 1,034,644
----------------------------------------------------------------------------------------------------------
Wolford AG 12,000 2,404,119
-------------
9,203,757
- --------------------------------------------------------------------------------------------------------------------
CONSUMER NON-CYCLICALS - 22.8%
- --------------------------------------------------------------------------------------------------------------------
BEVERAGES - 3.0%
----------------------------------------------------------------------------------------------------------
Hellenic Bottling Co., SA 40,000 1,493,510
----------------------------------------------------------------------------------------------------------
Matthew Clark PLC 50,000 552,593
----------------------------------------------------------------------------------------------------------
Panamerican Beverages, Inc., Cl. A 20,000 807,500
----------------------------------------------------------------------------------------------------------
Remy Cointreau 40,000 1,159,870
----------------------------------------------------------------------------------------------------------
Sermsuk Public Co. Ltd. 5,000 149,029
-------------
4,162,502
- --------------------------------------------------------------------------------------------------------------------
EDUCATION - 0.8%
----------------------------------------------------------------------------------------------------------
National Education Corp.(1) 100,000 1,175,000
- --------------------------------------------------------------------------------------------------------------------
FOOD - 4.2%
----------------------------------------------------------------------------------------------------------
Hokuto Corp. 19,500 657,303
----------------------------------------------------------------------------------------------------------
Lindt & Spruengli AG, Participation Certificates 550 882,450
----------------------------------------------------------------------------------------------------------
Molinos Rio de la Plata SA, Cl. B 150,000 1,402,960
----------------------------------------------------------------------------------------------------------
Perdigao SA, Comercio e Industria, Preference 240,000,000 473,836
----------------------------------------------------------------------------------------------------------
Performance Food Group Co.(1) 28,000 686,000
----------------------------------------------------------------------------------------------------------
Raision Tehtaat Oy 20,000 686,242
----------------------------------------------------------------------------------------------------------
Universal Robina Corp. 2,000,000 974,025
-------------
5,762,816
- --------------------------------------------------------------------------------------------------------------------
HEALTHCARE/DRUGS - 8.2%
----------------------------------------------------------------------------------------------------------
Biocompatibles International PLC(1) 100,000 699,137
----------------------------------------------------------------------------------------------------------
Biota Holdings Ltd.(1) 500,000 1,407,993
----------------------------------------------------------------------------------------------------------
Dura Pharmaceuticals, Inc.(1) 17,000 843,625
----------------------------------------------------------------------------------------------------------
Gilead Sciences, Inc.(1) 20,000 575,000
----------------------------------------------------------------------------------------------------------
Matrix Pharmaceutical, Inc.(1) 60,000 1,387,500
----------------------------------------------------------------------------------------------------------
Norland Medical Systems, Inc(1). 25,000 718,750
----------------------------------------------------------------------------------------------------------
Peptide Technology Ltd(1). 5,040,388 2,010,769
----------------------------------------------------------------------------------------------------------
PT Kalbe Farma 250,000 762,032
----------------------------------------------------------------------------------------------------------
Rohto Pharmaceutical Co. 60,000 545,505
----------------------------------------------------------------------------------------------------------
Teikoku Hormone Manufacturing Co. Ltd. 50,000 683,520
----------------------------------------------------------------------------------------------------------
Tiger Medicals Ltd. 493,000 847,624
----------------------------------------------------------------------------------------------------------
Watson Pharmaceuticals, Inc.(1) 20,000 800,000
-------------
11,281,455
</TABLE>
7 Oppenheimer Global Emerging Growth Fund
<PAGE>
<TABLE>
<CAPTION>
===========================================================================================================
STATEMENT OF INVESTMENTS March 31, 1996 (Unaudited)(Continued)
MARKET VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
HEALTHCARE/SUPPLIES & SERVICES - 5.6%
----------------------------------------------------------------------------------------------------------
AmeriSource Health Corp., Cl. A(1) 30,000 $ 990,000
----------------------------------------------------------------------------------------------------------
Elekta AB, Series B 15,000 500,470
----------------------------------------------------------------------------------------------------------
Gulf South Medical Supply, Inc.(1) 30,000 1,132,500
----------------------------------------------------------------------------------------------------------
Hokuriku Seiyaku Co. 40,000 842,696
----------------------------------------------------------------------------------------------------------
Nichii Gakkan Co. 27,500 1,459,971
----------------------------------------------------------------------------------------------------------
OccuSystems, Inc.(1) 40,000 910,000
----------------------------------------------------------------------------------------------------------
Omnicare, Inc. 13,000 700,375
----------------------------------------------------------------------------------------------------------
Rhoen Klinikum AG, Non-vtg. Preference 12,000 1,255,771
-------------
7,791,783
- --------------------------------------------------------------------------------------------------------------------
HOUSEHOLD GOODS - 1.0%
----------------------------------------------------------------------------------------------------------
Srithai Superware Co. Ltd. 175,000 1,324,812
- --------------------------------------------------------------------------------------------------------------------
ENERGY - 1.5%
- --------------------------------------------------------------------------------------------------------------------
ENERGY SERVICES & PRODUCERS - 1.5%
----------------------------------------------------------------------------------------------------------
Compagnie Generale de Geophysique SA(1) 15,000 1,009,623
----------------------------------------------------------------------------------------------------------
Transocean AS(1) 50,000 1,091,527
-------------
2,101,150
- --------------------------------------------------------------------------------------------------------------------
FINANCIAL - 11.9%
- --------------------------------------------------------------------------------------------------------------------
BANKS - 3.5%
----------------------------------------------------------------------------------------------------------
Banco de Galicia y Buenos Aires SA de CV, Series B 236,000 1,409,382
----------------------------------------------------------------------------------------------------------
PT Bank Dagang Nasional 1,500,000 1,299,465
----------------------------------------------------------------------------------------------------------
PT Lippo Bank 500,000 1,042,781
----------------------------------------------------------------------------------------------------------
Verwaltungs-und Privat-Bank 750 1,026,935
-------------
4,778,563
- --------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL - 3.0%
----------------------------------------------------------------------------------------------------------
Credicorp Ltd. 47,000 846,000
----------------------------------------------------------------------------------------------------------
Manhattan Card Co. Ltd. 2,500,000 1,325,480
----------------------------------------------------------------------------------------------------------
Wing Hang Bank Ltd. 500,000 1,978,521
-------------
4,150,001
- --------------------------------------------------------------------------------------------------------------------
INSURANCE - 5.4%
----------------------------------------------------------------------------------------------------------
Mapfre Vida Seguros 15,000 858,041
----------------------------------------------------------------------------------------------------------
Marschollek, Lautenschlaeger und Partner AG 2,000 1,815,246
----------------------------------------------------------------------------------------------------------
National Mutual Asia Ltd. 1,500,000 1,367,507
----------------------------------------------------------------------------------------------------------
Ockham Holdings PLC 680,000 602,052
----------------------------------------------------------------------------------------------------------
Reinsurance Australia Corp. Ltd. 1,250,000 2,884,431
-------------
7,527,277
- --------------------------------------------------------------------------------------------------------------------
INDUSTRIAL - 17.8%
- --------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT - 3.9%
----------------------------------------------------------------------------------------------------------
LEM Holdings SA 4,300 1,408,728
----------------------------------------------------------------------------------------------------------
Nidec Corp. 40,000 1,460,673
----------------------------------------------------------------------------------------------------------
Ushio, Inc. 125,000 1,369,381
----------------------------------------------------------------------------------------------------------
Yamatake-Honeywell Co., Ltd. 70,000 1,219,100
-------------
5,457,882
</TABLE>
8 Oppenheimer Global Emerging Growth Fund
<PAGE>
<TABLE>
<CAPTION>
===========================================================================================================
STATEMENT OF INVESTMENTS March 31, 1996 (Unaudited)(Continued)
MARKET VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INDUSTRIAL SERVICES - 7.9%
----------------------------------------------------------------------------------------------------------
Aegis Group PLC(1) 675,000 479,130
----------------------------------------------------------------------------------------------------------
Affiliated Computer Services, Inc., Cl. A 17,000 706,563
----------------------------------------------------------------------------------------------------------
Boskalis Westminster Koniniije 100,000 1,482,568
----------------------------------------------------------------------------------------------------------
Fritz Cos., Inc.(1) 10,000 390,000
----------------------------------------------------------------------------------------------------------
IHC Caland NV 30,000 1,223,572
----------------------------------------------------------------------------------------------------------
KCI Konecranes International(1)(2) 20,000 352,616
----------------------------------------------------------------------------------------------------------
Kent Electronics Corp.(1) 40,000 1,415,000
----------------------------------------------------------------------------------------------------------
May & Speh, Inc. 29,400 330,750
----------------------------------------------------------------------------------------------------------
PT Citra Marga Nusaphala Persada 75,500 97,706
----------------------------------------------------------------------------------------------------------
Rent-Way, Inc.(1) 65,000 658,125
----------------------------------------------------------------------------------------------------------
Serco Group PLC 100,000 755,618
----------------------------------------------------------------------------------------------------------
Transaction Systems Architects, Inc., Cl. A(1) 30,000 1,222,500
----------------------------------------------------------------------------------------------------------
VBH-Vereinigter Baubeschlag Handel AG 7,000 1,730,580
-------------
10,844,728
- --------------------------------------------------------------------------------------------------------------------
MANUFACTURING - 5.7%
----------------------------------------------------------------------------------------------------------
Aeon Credit Service Co. Ltd. 11,000 484,082
----------------------------------------------------------------------------------------------------------
BE Semiconductor Industries NV(1) 30,000 421,170
----------------------------------------------------------------------------------------------------------
Bobst Bearers AG 400 658,582
----------------------------------------------------------------------------------------------------------
Bucher Holding AG, B Shares 1,500 1,026,935
----------------------------------------------------------------------------------------------------------
GP Batteries International Ltd. 300,000 738,000
----------------------------------------------------------------------------------------------------------
Legris Industries SA 10,000 513,997
----------------------------------------------------------------------------------------------------------
Powerscreen International PLC 200,000 1,328,056
----------------------------------------------------------------------------------------------------------
SIG Schweizerische Industrie-Gesellschaft Holding AG 300 687,983
----------------------------------------------------------------------------------------------------------
Sodick Co.(1) 50,000 529,026
----------------------------------------------------------------------------------------------------------
Traub AG(1) 8,900 581,725
----------------------------------------------------------------------------------------------------------
U.S. Filter Corp.(1) 30,000 840,000
-------------
7,809,556
- --------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 0.3%
----------------------------------------------------------------------------------------------------------
Lisnave-Estaleiros Navais de Lisbona SA(1) 146,900 363,952
- --------------------------------------------------------------------------------------------------------------------
TECHNOLOGY - 13.7%
- --------------------------------------------------------------------------------------------------------------------
COMPUTER HARDWARE - 1.2%
----------------------------------------------------------------------------------------------------------
In Focus Systems, Inc.(1) 20,000 701,250
----------------------------------------------------------------------------------------------------------
Integrated Measurement Systems, Inc.(1) 60,000 937,500
-------------
1,638,750
- --------------------------------------------------------------------------------------------------------------------
COMPUTER SOFTWARE - 3.2%
----------------------------------------------------------------------------------------------------------
Engineering Animation, Inc.(1) 18,000 375,750
----------------------------------------------------------------------------------------------------------
Ines Corp.(1) 40,000 651,685
----------------------------------------------------------------------------------------------------------
McAfee Associates, Inc.(1) 16,000 876,000
----------------------------------------------------------------------------------------------------------
Misys PLC 40,232 444,639
----------------------------------------------------------------------------------------------------------
Platinum Technology, Inc.(1) 30,000 453,750
----------------------------------------------------------------------------------------------------------
Structural Dynamics Research Corp.(1) 50,000 1,687,500
-------------
4,489,324
</TABLE>
9 Oppenheimer Global Emerging Growth Fund
<PAGE>
<TABLE>
<CAPTION>
===========================================================================================================
STATEMENT OF INVESTMENTS March 31, 1996 (Unaudited)(Continued)
MARKET VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ELECTRONICS - 3.1%
----------------------------------------------------------------------------------------------------------
Enplas Corp. 33,000 $ 639,606
----------------------------------------------------------------------------------------------------------
Micronas Semiconductor Holding AG, Bearer Shares(1) 400 286,282
----------------------------------------------------------------------------------------------------------
Sanmina Corp.(1) 28,000 833,000
----------------------------------------------------------------------------------------------------------
SDL, Inc.(1) 35,000 1,050,000
----------------------------------------------------------------------------------------------------------
Shinmei Electric Co. 35,000 671,816
----------------------------------------------------------------------------------------------------------
Siliconware Precision Industries Co., GDR(1)(2) 75,000 815,250
-------------
4,295,954
- --------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS-TECHNOLOGY - 6.2%
----------------------------------------------------------------------------------------------------------
Amper SA(1) 85,000 1,109,410
----------------------------------------------------------------------------------------------------------
Arch Communications Group, Inc.(1) 30,000 693,750
----------------------------------------------------------------------------------------------------------
Glenayre Technologies, Inc.(1) 20,000 765,000
----------------------------------------------------------------------------------------------------------
Korea Mobile Telecommunications Corp. 500 609,556
----------------------------------------------------------------------------------------------------------
LCI International, Inc.(1) 36,000 882,000
----------------------------------------------------------------------------------------------------------
MobileMedia Corp., Cl. A(1) 60,000 1,245,000
----------------------------------------------------------------------------------------------------------
Pairgain Technologies, Inc.(1) 13,000 841,750
----------------------------------------------------------------------------------------------------------
Periphonics Corp.(1) 30,000 712,500
----------------------------------------------------------------------------------------------------------
ProNet, Inc.(1) 30,000 740,625
----------------------------------------------------------------------------------------------------------
Teltrend, Inc.(1) 20,000 910,000
-------------
8,509,591
- --------------------------------------------------------------------------------------------------------------------
UTILITIES - 0.7%
- --------------------------------------------------------------------------------------------------------------------
TELEPHONE UTILITIES - 0.7%
----------------------------------------------------------------------------------------------------------
CPT Telefonica del Peru SA, Cl. B 500,020 1,030,427
-------------
Total Common Stocks (Cost $109,081,329) 125,811,674
UNITS
- --------------------------------------------------------------------------------------------------------------------
RIGHTS, WARRANTS AND CERTIFICATES - 0.1%
- --------------------------------------------------------------------------------------------------------------------
GP Batteries International Ltd. Wts., Exp. 11/00 75,000 57,000
----------------------------------------------------------------------------------------------------------
PerSeptive Biosystems, Inc., Cl. A Wts., Exp. 12/97 40,110 --
----------------------------------------------------------------------------------------------------------
Protein Polymer Technologies, Inc. Wts., Exp. 1/97 100,000 40,625
-------------
Total Rights, Warrants and Certificates (Cost $421,162) 97,625
FACE
AMOUNT
- --------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT - 9.4%
- --------------------------------------------------------------------------------------------------------------------
Repurchase agreement with J.P. Morgan Securities, Inc.,
5.40%, dated 3/29/96, to be repurchased at $13,055,873
on 4/1/96, collateralized by U.S. Treasury Bonds, 10.375%-14%,
11/15/11-8/15/13, with a value of $13,419,667 (Cost $13,050,000) $ 13,050,000 13,050,000
----------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $122,552,491) 100.6% 138,959,299
----------------------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS (0.6) (876,494)
------ -------------
NET ASSETS 100.0% $138,082,805
====== =============
</TABLE>
10 Oppenheimer Global Emerging Growth Fund
<PAGE>
<TABLE>
<CAPTION>
Distribution of investments by country of issue, as a percentage of
total investments at value, is as follows:
COUNTRY MARKET VALUE PERCENT
-----------------------------------------------------------------------
<S> <C> <C>
United States $ 51,460,312 37.0%
Japan 14,448,914 10.4
Great Britain 7,832,218 5.6
Germany 7,063,101 5.1
Switzerland 6,649,917 4.8
Australia 6,303,194 4.5
Hong Kong 5,706,029 4.1
France 4,498,866 3.2
Argentina 4,435,601 3.2
Indonesia 4,074,711 2.9
Netherlands 3,127,311 2.3
Italy 2,503,511 1.8
Austria 2,404,119 1.7
Thailand 2,175,386 1.6
Spain 1,967,451 1.4
Peru 1,876,427 1.4
Norway 1,777,629 1.3
Singapore 1,642,624 1.2
Greece 1,493,510 1.1
Finland 1,038,858 0.7
Canada 1,018,376 0.7
Philippines 974,025 0.7
Brazil 931,675 0.7
Portugal 822,758 0.6
Taiwan 815,250 0.6
Mexico 807,500 0.6
Korea, Republic of (South) 609,556 0.4
Sweden 500,470 0.4
------------ -------
TOTAL $138,959,299 100.0%
============ =======
</TABLE>
1. Non-income producing security.
2. 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 $1,772,554 or
1.28% of the Fund's net assets, at March 31, 1996.
See accompanying Notes to Financial Statements.
11 Oppenheimer Global Emerging Growth Fund
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES MARCH 31, 1996(UNAUDITED)
====================================================================================================================================
<S> <C> <C>
ASSETS Investments, at value (cost $122,552,491) - see accompanying statement $138,959,299
----------------------------------------------------------------------------------------------------
Cash 85,931
----------------------------------------------------------------------------------------------------
Unrealized appreciation on forward foreign currency
exchange contracts - Note 5 6,770
----------------------------------------------------------------------------------------------------
Receivables:
Investments sold 2,665,509
Interest and dividends 324,225
Shares of beneficial interest sold 143,791
----------------------------------------------------------------------------------------------------
Other 18,590
-------------
Total assets 142,204,115
====================================================================================================================================
LIABILITIES Unrealized depreciation on forward foreign currency
exchange contracts - Note 5 400
----------------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 3,207,449
Shares of beneficial interest redeemed 469,227
Trustees' fees 138,008
Shareholder reports 126,849
Distribution and service plan fees 78,474
Transfer and shareholder servicing agent fees 27,855
Other 73,048
-------------
Total liabilities 4,121,310
====================================================================================================================================
NET ASSETS $138,082,805
=============
====================================================================================================================================
COMPOSITION OF Paid-in capital $152,947,522
NET ASSETS ----------------------------------------------------------------------------------------------------
Accumulated net investment loss (632,848)
----------------------------------------------------------------------------------------------------
Accumulated net realized loss on investments and
foreign currency transactions (30,649,264)
----------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of
assets and liabilities denominated in foreign currencies 16,417,395
-------------
Net assets $138,082,805
=============
====================================================================================================================================
NET ASSET VALUE Class A Shares:
PER SHARE Net asset value and redemption price per share (based on net assets
of $135,418,951 and 7,058,441 shares of beneficial interest outstanding) $19.19
Maximum offering price per share (net asset value plus sales charge
of 5.75% of offering price) $20.36
----------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price and offering price per share (based on
net assets of $2,027,569 and 106,170 shares of beneficial interest outstanding) $19.10
----------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price and offering price per share (based on
net assets of $636,285 and 33,305 shares of beneficial interest outstanding) $19.10
</TABLE>
See accompanying Notes to Financial Statements.
12 Oppenheimer Global Emerging Growth Fund
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED MARCH 31, 1996 (UNAUDITED)
====================================================================================================================================
<S> <C> <C>
INVESTMENT INCOME Dividends (net of foreign withholding taxes of $18,193) $ 466,365
----------------------------------------------------------------------------------------------------
Interest 406,027
-------------
Total income 872,392
====================================================================================================================================
EXPENSES Management fees - Note 4 557,893
----------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees - Note 4 280,064
----------------------------------------------------------------------------------------------------
Distribution and service plan fees - Note 4:
Class A 155,932
Class B 3,692
Class C 1,108
----------------------------------------------------------------------------------------------------
Shareholder reports 136,984
----------------------------------------------------------------------------------------------------
Custodian fees and expenses 105,464
----------------------------------------------------------------------------------------------------
Trustees' fees and expenses - Note 1 82,512
----------------------------------------------------------------------------------------------------
Legal and auditing fees 21,991
----------------------------------------------------------------------------------------------------
Insurance expenses 5,890
----------------------------------------------------------------------------------------------------
Registration and filing fees:
Class B 658
Class C 206
----------------------------------------------------------------------------------------------------
Other 22,715
-------------
Total expenses 1,375,109
====================================================================================================================================
NET INVESTMENT LOSS (502,717)
====================================================================================================================================
REALIZED AND Net realized gain on investments 10,830,318
UNREALIZED GAIN (LOSS)
----------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or
depreciation on:
Investments (2,936,544)
Translation of assets and liabilities denominated in foreign currencies 613,866
-------------
Net change (2,322,678)
-------------
Net realized and unrealized gain 8,507,640
====================================================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 8,004,923
=============
</TABLE>
See accompanying Notes to Financial Statements.
13 Oppenheimer Global Emerging Growth Fund
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 1996 SEPTEMBER 30,
(UNAUDITED) 1995
====================================================================================================================================
<S> <C> <C> <C>
OPERATIONS Net investment income (loss) $ (502,717) $ 107,231
----------------------------------------------------------------------------------------------------
Net realized gain (loss) 10,830,318 (40,930,783)
----------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation (2,322,678) 27,445,462
-------------------------------------
Net increase (decrease) in net assets resulting
from operations 8,004,923 (13,378,090)
====================================================================================================================================
BENEFICIAL INTEREST Net increase (decrease) in net assets resulting from
TRANSACTIONS beneficial interest transactions - Note 2:
Class A (12,250,915) (10,093,708)
Class B 1,908,048 --
Class C 597,763 --
====================================================================================================================================
NET ASSETS Total decrease (1,740,181) (23,471,798)
----------------------------------------------------------------------------------------------------
Beginning of period 139,822,986 163,294,784
------------ -------------
End of period (including accumulated net investment
losses of $632,848 and $130,131, respectively) $138,082,805 $139,822,986
============ =============
</TABLE>
See accompanying Notes to Financial Statements.
14 Oppenheimer Global Emerging Growth Fund
<PAGE>
<TABLE>
<CAPTION>
==================================================================================================
FINANCIAL HIGHLIGHTS
CLASS A CLASS B CLASS C
--------------------------------------------------------------------------------------------------
SIX MONTHS PERIOD PERIOD
ENDED ENDED ENDED
MARCH 31, MARCH 31, MARCH 31,
1996 YEAR ENDED SEPTEMBER 30, 1996(1) 1996(1)
(UNAUDITED) 1995 1994 1993 1992 1991(2) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
===================================================================================================================================
PER SHARE OPERATING DATA:
Net asset value, beginning
of period $18.03 $19.35 $21.64 $20.25 $26.90 $11.81 $17.44 $17.44
- -----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment income (loss) (.07) .01 (.01) (.10) (.17) (.03) (.04) (.04)
Net realized and unrealized
gain (loss) 1.23 (1.33) (2.11) 1.69 (6.47) 15.12 1.70 1.70
- -----------------------------------------------------------------------------------------------------------------------------------
Total income (loss) from
investment operations 1.16 (1.32) (2.12) 1.59 (6.64) 15.09 1.66 1.66
- -----------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to
shareholders:
Dividends from net investment
income -- -- -- -- (.01) -- -- --
Distributions in excess of net
realized gain -- -- (.17) (.20) -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions
to shareholders -- -- (.17) (.20) (.01) -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $19.19 $18.03 $19.35 $21.64 $20.25 $26.90 $19.10 $19.10
===================================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(3) 6.43% (6.82)% (9.91)% 7.79 (24.70)% 127.78% 9.52% 9.52%
===================================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $135,419 $139,823 $163,295 $199,697 $129,634 $103,352 $2,028 $636
- -----------------------------------------------------------------------------------------------------------------------------------
Average net assets
(in thousands) $130,898 $148,378 $190,984 $194,184 $166,144 $50,989 $ 901 $270
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) (0.76)%(4) 0.07% (1.05)% (0.80)% (0.71)% (0.18)%(4) (1.13)% (1.08)%(4)
Expenses 2.08%(4) 1.76% 1.77% 1.59% 1.39% 1.50% 2.85%(4) 2.85%(4)
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 69.5% 160.3% 54.7% 41.0% 2.6% 11.2% 69.5% 69.5%
Average brokerage
commission rate(6) $0.0018 -- -- -- -- -- $0.0018 $0.0018
</TABLE>
1. For the period from November 1, 1995 (inception of offering) to March 31,
1996.
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 securities owned during the period. Securities with a maturity or
expiration date at the time of acquisition of one year or less are excluded from
the calculation. Purchases and sales of investment securities (excluding
short-term securities) for the period ended March 31, 1996 were $83,455,515 and
$100,192,832, respectively.
6. Total brokerage commissions paid on applicable purchases and sales of
portfolio securities for the period divided by the total number of related
shares purchased and sold.
See accompanying Notes to Financial Statements.
15 Oppenheimer Global Emerging Growth Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
================================================================================
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 objective is to seek high
total return (which includes current income and capital appreciation in the
value of its shares) from equity and debt securities. The Fund's investment
advisor is OppenheimerFunds, Inc. (the Manager). The Fund offers Class A, Class
B and Class C shares. Class A shares are sold with a front-end sales charge.
Class B and Class C shares may be subject to a contingent deferred sales charge.
All three classes of shares have identical rights to earnings, assets and voting
privileges, except that each class has its own distribution and/or service plan,
expenses directly attributable to a particular class and exclusive voting rights
with respect to matters affecting a single class. Class B shares will
automatically convert to Class A shares six years after the date of purchase.
The following is a summary of significant accounting policies consistently
followed by the Fund.
- --------------------------------------------------------------------------------
INVESTMENT VALUATION. Portfolio securities are valued at the close of the
New York Stock Exchange on each trading day. Listed and unlisted securities for
which such information is regularly reported are valued at the last sale price
of the day or, in the absence of sales, at values based on the closing bid or
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 foreign currency exchange contracts
are valued based on the closing prices of the forward currency contract rates in
the London foreign exchange markets on a daily basis as provided by a reliable
bank or dealer.
- --------------------------------------------------------------------------------
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 Statement of Operations.
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS. The Fund requires the custodian to take possession,
to have legally segregated in the Federal Reserve Book Entry System or to have
segregated within the custodian's vault, all securities held as collateral for
repurchase agreements. The market value of the underlying securities is required
to be at least 102% of the resale price at the time of purchase. If the seller
of the agreement defaults and the value of the collateral declines, or if the
seller enters an insolvency proceeding, realization of the value of the
collateral by the Fund may be delayed or limited.
- --------------------------------------------------------------------------------
ALLOCATION OF INCOME, EXPENSES, AND GAINS AND LOSSES. Income, expenses
(other than those attributable to a specific class) and gains and losses are
allocated daily to each class of shares based upon the relative proportion of
net assets represented by such class. Operating expenses directly attributable
to a specific class are charged against the operations of that class.
- --------------------------------------------------------------------------------
FEDERAL TAXES. The Fund intends to continue to comply with provisions of
the Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income, including any net realized gain on
investments not offset by loss carryovers, to shareholders. Therefore, no
federal income or excise tax provision is required.
- --------------------------------------------------------------------------------
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, 1996, a provision of $64,999 was made for the Fund's projected
benefit obligations and payments of $4,045 were made to retired trustees,
resulting in an accumulated liability of $124,945 at March 31, 1996.
- --------------------------------------------------------------------------------
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.
16 Oppenheimer Global Emerging Growth Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
================================================================================
1. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of income and expenses during the reporting
period. Actual results could differ from those estimates.
================================================================================
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 YEAR ENDED
MARCH 31, 1996(1) SEPTEMBER 30, 1995
--------------------------- ------------------------------
SHARES AMOUNT SHARES AMOUNT
-------------------------------------------------------------------------------------------------------------
Class A:
<S> <C> <C> <C> <C>
Sold 756,438 $ 13,695,796 1,148,488 $ 19,774,392
Issued in connection with the
acquisition of Oppenheimer
Global Environment Fund - Note 6 -- -- 1,540,515 27,636,869
Redeemed (1,454,138) (25,946,711) (3,370,269) (57,504,969)
----------- ------------- ----------- -------------
Net decrease (697,700) $(12,250,915) (681,266) $(10,093,708)
=========== ============= =========== =============
-------------------------------------------------------------------------------------------------------------
Class B:
Sold 122,929 $ 2,210,080 -- $ --
Redeemed (16,759) (302,032) -- --
----------- ------------- ----------- -------------
Net increase 106,170 $ 1,908,048 -- $ --
=========== ============= =========== =============
-------------------------------------------------------------------------------------------------------------
Class C:
Sold 34,942 $ 627,655 -- $ --
Redeemed (1,637) (29,892) -- --
----------- ------------- ----------- -------------
Net increase 33,305 $ 597,763 -- $ --
=========== ============= =========== =============
</TABLE>
1. For the six months ended March 31, 1996 for Class A shares and for the
period from November 1, 1995 (inception of offering) to March 31, 1996 for Class
B and Class C shares.
================================================================================
3. UNREALIZED GAINS AND LOSSES ON INVESTMENTS
At March 31, 1996, net unrealized appreciation on investments of
$16,406,808 was composed of gross appreciation of $21,522,182, and gross
depreciation of $5,115,374.
================================================================================
4. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Management fees paid to the Manager were in accordance with the investment
advisory agreement with the Fund which provides for a fee of 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 six months ended March 31, 1996, commissions (sales charges paid by
investors) on sales of Class A shares totaled $226,777, of which $61,553 was
retained by OppenheimerFunds Distributor, Inc. (OFDI), a subsidiary of the
Manager, as general distributor, and by an affiliated broker/dealer. Sales
charges advanced to broker/dealers by OFDI on sales of the Fund's Class B and
Class C shares totaled $56,768 and $3,490, of which $1,367 was paid to an
affiliated broker/dealer for Class B shares. During the period ended March 31,
1996, OFDI received contingent deferred sales charges of $260 upon redemption of
Class B shares as reimbursement for sales commissions advanced by OFDI at the
time of sale of such shares.
OppenheimerFunds Services (OFS), a division of the Manager, is the transfer
and shareholder servicing agent for the Fund, and for other registered
investment companies. OFS's total costs of providing such services are allocated
ratably to these companies.
The Fund has adopted a Service Plan for Class A shares to reimburse OFDI
for a portion of its costs incurred in connection with the personal service and
maintenance of accounts that hold Class A shares. Reimbursement is made
quarterly at an annual rate that may not exceed .25% of the average annual net
assets of Class A shares of the Fund. OFDI uses the service fee to reimburse
brokers, dealers, banks and other financial institutions quarterly for providing
personal service and maintenance of accounts of their customers that hold Class
A shares. During the six months ended March 31, 1996, OFDI paid $7,695 to an
affiliated broker/dealer as reimbursement for Class A personal service and
maintenance expenses.
17 Oppenheimer Global Emerging Growth Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
================================================================================
4. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES (CONTINUED)
The Fund has adopted compensation type Distribution and Service Plans for
Class B and Class C shares to compensate OFDI for its services and costs in
distributing Class B and Class C shares and servicing accounts. Under the Plans,
the Fund pays OFDI an annual asset-based sales charge of .75% per year on Class
B shares that are outstanding for 6 years or less and on Class C shares, as
compensation for sales commissions paid from its own resources at the time of
sale and associated financing costs. If the Plans are terminated by the Fund,
the Board of Trustees may allow the Fund to continue payments of the asset-based
sales charge to OFDI for certain expenses it incurred before the Plans were
terminated. OFDI also receives a service fee of .25% per year as compensation
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. Both fees are computed on the
average annual net assets of Class B and Class C shares, determined as of the
close of each regular business day. During the six months ended March 31, 1996,
OFDI retained $3,692 and $1,108, respectively, as compensation for Class B and
Class C sales commissions and service fee advances, as well as financing costs.
At March 31, 1996, OFDI had incurred unreimbursed expenses of $63,733 for Class
B and $16,550 for Class C.
================================================================================
5. FORWARD CONTRACTS
A forward foreign currency exchange contract (forward contract) is a
commitment to purchase or sell a foreign currency at a future date, at a
negotiated rate.
The Fund uses forward contracts to seek to manage foreign currency risks.
They may also be used to tactically shift portfolio currency risk. The Fund
generally enters into forward contracts as a hedge upon the purchase or sale of
a security denominated in a foreign currency. In addition, the Fund may enter
into such contracts as a hedge against changes in foreign currency exchange
rates on portfolio positions.
Forward contracts are valued based on the closing prices of the forward
currency contract rates in the London foreign exchange markets on a daily basis
as provided by a reliable bank or dealer. The Fund will realize a gain or loss
upon the closing or settlement of the forward transaction.
Securities held in segregated accounts to cover net exposure on outstanding
forward contracts are noted in the Statement of Investments where applicable.
Unrealized appreciation or depreciation on forward contracts is reported in the
Statement of Assets and Liabilities. Realized gains and losses are reported with
all other foreign currency gains and losses in the Fund's Statement of
Operations.
Risks include the potential inability of the counterparty to meet the terms
of the contract and unanticipated movements in the value of a foreign currency
relative to the U.S. dollar.
At March 31, 1996, the Fund had outstanding forward contracts to purchase
and sell foreign currencies as follows:
<TABLE>
<CAPTION>
VALUATION
EXPIRATION CONTRACT AS OF UNREALIZED UNREALIZED
CONTRACTS TO PURCHASE DATE AMOUNT(000S) MARCH 31, 1996 APPRECIATION DEPRECIATION
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Indonesian Rupiah (IDR) 4/3/96 229,037 IDR $ 97,911 $ -- $115
- -----------------------------------------------------------------------------------------------------------------
Swiss Franc (CHF) 4/3/96 240 CHF 201,682 946 --
---------- ------- ----
$ 299,593 946 115
========== ------- ----
CONTRACTS TO SELL
- -----------------------------------------------------------------------------------------------------------------
Australian Dollar (AUD) 4/3/96 96 AUD $ 75,099 $ -- $156
- -----------------------------------------------------------------------------------------------------------------
French Franc (FRF) 4/30/96 6,540 FRF 1,300,880 -- 129
- -----------------------------------------------------------------------------------------------------------------
Japanese Yen (JPY) 6/28/96 343,940 JPY 3,255,971 5,824 --
---------- ------ ----
$4,631,950 5,824 285
========== ------ ----
$6,770 $400
====== ====
</TABLE>
================================================================================
6. 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 qualifies as a tax-free reorganization for
federal income tax purposes.
================================================================================
7. 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, 1996. Transactions during the period in
which the issuer was an affiliate are as follows:
<TABLE>
<CAPTION>
BALANCE BALANCE
SEPTEMBER 30, 1995 GROSS ADDITIONS GROSS REDUCTIONS MARCH 31, 1996
------------------ --------------- ---------------- -------------- DIVIDEND
SHARES COST SHARES COST SHARES COST SHARES COST INCOME
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Cambridge Antibody
Technology Ltd., Cv. 100,000 $3,300,000 -- $ -- 100,000 $3,300,000 -- $ -- $ --
</TABLE>
18 Oppenheimer Global Emerging Growth Fund
<PAGE>
OPPENHEIMER GLOBAL EMERGING GROWTH FUND
================================================================================
OFFICERS AND TRUSTEES Leon Levy, Chairman of the Board of Trustees
Donald W. Spiro, Vice Chairman of the Board of Trustees
Bridget A. Macaskill, Trustee and President
Robert G. Galli, Trustee
Benjamin Lipstein, Trustee
Elizabeth B. Moynihan, Trustee
Kenneth A. Randall, Trustee
Edward V. Regan, Trustee
Russell S. Reynolds, Jr., Trustee
Sidney M. Robbins, Trustee
Pauline Trigere, Trustee
Clayton K. Yeutter, Trustee
George R. Evans, Vice President
Jay W. Tracey, Vice President
George C. Bowen, Treasurer
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Andrew J. Donohue, Secretary
Robert G. Zack, Assistant Secretary
================================================================================
INVESTMENT ADVISOR OppenheimerFunds, Inc.
================================================================================
DISTRIBUTOR OppenheimerFunds Distributor, Inc.
================================================================================
TRANSFER AND OppenheimerFunds Services
SHAREHOLDER
SERVICING AGENT
================================================================================
CUSTODIAN OF The Bank of New York
PORTFOLIO SECURITIES
================================================================================
INDEPENDENT AUDITORS KPMG Peat Marwick LLP
================================================================================
LEGAL COUNSEL Gordon Altman Butowsky Weitzen Shalov & Wein
The financial statements included herein have been taken from the records
of the Fund without examination 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.
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.
19 Oppenheimer Global Emerging Growth Fund
<PAGE>
[BACK COVER}
INFORMATION
GENERAL INFORMATION
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Saturday 10 a.m.-2 p.m. ET
- --------------
1-800-525-7048
- --------------
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- --------------
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- --------------
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information and transactions
- --------------
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- --------------
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FOR THE DEAF (TDD)
Monday-Friday 8:30 a.m.-8 p.m. ET
- --------------
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- --------------
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INFORMATION HOTLINE
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messages on the economy and
issues that affect your investments
- --------------
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- --------------
RS0750.001.0496 May 31, 1996
- ------------------------------------------------------------------------------
"HOW MAY I HELP YOU?" [PHOTO]Jennifer Leonard
Jennifer Leonard, Customer Service Representative
OppenheimerFunds Services
As an Oppenheimer funds shareholder, you have some special privileges. Whether
it's automatic investment plans, informative newsletters and hotlines, or ready
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And when you need help, our Customer Service Representatives are only a
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For added convenience, you can get automated information with
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PhoneLink gives you access to a variety of fund, account, and market
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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
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from around the country, honored the Oppenheimer fund's transfer agent,
OppenheimerFunds Services, with their Award of Excellence in 1993.
So call us today--we're here to help.
- ------------------------------------------------------------------------------
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--------------
