<PAGE>
OPPENHEIMER GLOBAL EMERGING GROWTH FUND
Annual Report September 30, 1996
[Picture of Gardening Pic]
"We want to
go after
HIGH
long-term
GROWTH."
[Oppenheimer Logo]
<PAGE>
This Fund is for people who want to take part in the TREMENDOUS POTENTIAL for
growth offered by EMERGING businesses throughout the world.
NEWS
BEAT THE AVERAGE
Cumulative Total Return for the 1-Year Period Ended 9/30/96:
Oppenheimer Global Emerging Growth Fund Class A (at net asset value)(1)
16.25%
Lipper Global Small Company Average for 23 Funds for the 1-Year Period Ended
9/30/96(3)
13.09%
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 managers use 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 the 12 months ended 9/30/96 for Class A
shares was 16.25%. Cumulative total returns at net asset value for Class B and C
shares since inception on 11/1/95 were 19.22% and 19.28%, respectively.(1)
Your Fund's average annual total returns at maximum offering price for
Class A shares for the 1- and 5-year periods ended 9/30/96 and since inception
on 12/30/87 were 9.57%, (5.68)% and 8.45%, respectively. For Class B and C
shares, cumulative total returns since inception on 11/1/95 were 14.22% and
18.28%, respectively.(2)
OUTLOOK
"We think the outlook for the Fund is extremely positive, and that it is well-
positioned for growth over the next six months. Overall, we are convinced that
international growth will be greater over the next few years than that of the
domestic market."
George Evans, Portfolio Manager
September 30, 1996
Total returns include change in share price and reinvestment of dividends and
capital gains distributions. In reviewing the notes that follow on performance
and rankings, please be aware that past performance does not guarantee future
results. Investment return and principal value of an investment in the Fund will
fluctuate so that an investor's shares, when redeemed, may be worth more or less
than the original cost.
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 9/30/95, 9/30/91
and 12/30/87 (inception of class), after deducting the current maximum initial
sales charge of 5.75%. Class B and C returns show results of hypothetical
investments on 11/1/95 (inception of classes), 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.
3. Source: Lipper Analytical Services, 9/30/96, an independent mutual fund
monitoring service. The average is shown for comparative purposes only.
Oppenheimer Global Emerging Growth Fund is characterized by Lipper as a global
small company fund. Lipper performance does not take sales charges into
consideration.
2 Oppenheimer Global Emerging Growth Fund
<PAGE>
[PHOTO]
Bridget A. Macaskill
President
Oppenheimer
Global Emerging
Growth Fund
DEAR SHAREHOLDER,
While most of the world's markets have lagged the amazing growth of domestic
stocks this year, we believe the time is right for them to catch up. This
belief, coupled with the strong though at times unpredictable performance of the
U.S. market over the period, makes a compelling case for global funds, which
typically invest in a combination of domestic and foreign securities.
Over the past six months, the U.S. stock market has shown investors just how
resilient it can be. During this summer, the Dow declined nearly 10%, only to
soar to record highs in the fall. As a result, stock valuations are now high,
indicating that this bull market could be nearing the top of the mountain.
However, due to solid corporate profits, low inflation, and stabilized interest
rates, we remain optimistic that this market has enough strength to advance
through 1997.
While we've been pleased with earnings in the U.S. market, we believe now is
the time to focus on good opportunities abroad. Why? Analysts estimate earnings
in North America for 1996 will be up about 8% by the end of this year. Across
the rest of the globe, however, they predict corporate earnings will increase by
almost 40%, with the potential for an additional 17% gain in 1997. In fact,
particularly in Europe, we're seeing a trend in corporate restructuring,
including downsizing, outsourcing and spinoffs.
As for economic growth in developing countries, Brazil has emerged as a
dominant player in 1996, and we believe it has great potential for the coming
years. In general, the spending power of the population in developing countries
keeps growing. For the first time, a substantial number of individuals are
buying consumer products, including motorcycles, TVs and cars.
Additionally, there has been a turnabout in Japan. After a five-year
recession, the Japanese economy recently began to recover, unearthing numerous
investment opportunities. Furthermore, around the world, there has been a
significant move toward capitalism. Right now, the wealth of the world is built
on the combined spending power of 700 million people. However, as the 4.5
billion people who live in developing countries become more capitalistic, we
will undoubtedly see a chain reaction which may revitalize a number of
industries that cater to the consumer.
Despite this pickup in global economic growth, inflation has remained low.
Moreover, many European governments are now concentrating on balancing their
budgets in anticipation of a European monetary union. So, it is reasonable to
expect global interest rates to remain low into 1997. In the end, all these
changes bode well for global stock markets and economies.
Because investing abroad involves greater risk and expenses, including
political and economic uncertainties, currency rate fluctuations and liquidity
restrictions, it should be undertaken with a long-term approach in mind. That
said, we're confident that by diversifying your investments throughout the
world, you should be well positioned to participate in any economic environment.
Your portfolio managers discuss the outlook for your Fund in light of these
broad issues on the following pages. Thank you for your confidence in
OppenheimerFunds. We look forward to helping you reach your investment goals in
the future.
/s/ Bridget A. Macaskill
Bridget A. Macaskill
October 21, 1996
3 Oppenheimer Global Emerging Growth Fund
<PAGE>
Q + A
[PHOTO]
[LOGO]
What
areas are
we currently
TARGETING?
AN INTERVIEW WITH YOUR FUND'S MANAGERS.
HOW HAS THE FUND PERFORMED OVER THE PAST YEAR?
The Fund has performed well over the past year, despite volatility in the
foreign and domestic markets. The Fund weathered this summer's pullback in the
NASDAQ, as well as the slow market activity throughout the world with only
minor upset to its performance. Much of this was thanks to a healthy jump in
the value of the U.S. portion of the Fund.
WHAT INVESTMENTS MADE POSITIVE CONTRIBUTIONS TO PERFORMANCE?
We've had very good returns in our theme areas from individual stocks all over
the world. Within the technology sector, in particular, we had excellent
earnings from a company that customizes databases to individual user and client
needs, thus increasing their efficiency. We've also been pleased with our
investment in a company that develops application software specifically for the
banking, insurance and financial services industries. These two examples
illustrate the growing need for efficiency-enhancing technology in today's
world. And as businesses become more dependent on computers, we believe we'll
see even greater growth in this area.
Another top-performing investment was in our emerging consumer markets
theme. We've done particularly well with a Finnish agricultural company that
produces a margarine additive which is expected to actually reduce
a person's cholesterol by 10 to 15%. As word about this product spreads, we
expect the stock price to benefit even more.(1)
DID ANY INVESTMENTS NOT PERFORM AS YOU'D EXPECTED?
We didn't have any individual investments that disappointed us. However, over
the period, small-cap stocks didn't perform
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
[LOGO]
WE SEE SOME GOOD VALUES IN COMPANIES SELLING CONSUMER PRODUCTS IN DEVELOPING
COUNTRIES.
exceptionally well, since investors were focusing on large-cap domestic stocks.
Over time, however, we believe investment values around the world, particularly
in emerging economies, will again be recognized by investors, helping emerging
growth stocks to reach their full potential.
WHAT AREAS ARE YOU CURRENTLY TARGETING?
Right now, we see some good values in companies selling consumer products in
developing countries. In fact, in these countries, there is an explosion of
consumerism, as the spending power of these populations increases. For the first
time, large numbers of people are buying motorcycles, TVs, cars and a multitude
of other consumer products, including luxury items. This consumption should be
reflected in higher stock prices for many multinational consumer product
companies.
In addition, because we anticipate a growing demand for many natural
resources, we are also looking at certain companies that we believe will benefit
from this trend. For example, we think the price of oil will go up due to an
increase in demand from Asia and the emerging growth countries. So, we'll be
looking to invest in the types of natural resource companies that will benefit
from this increase in volume, such as drilling companies.
WHAT IS YOUR OUTLOOK FOR THE FUND?
We think the outlook for the Fund is extremely positive, and that it is
well-positioned for growth over the next six months. We are pleased with the
strength the European companies currently in the portfolio have exhibited, while
we also have high expectations for our Latin American investments. And, in
small caps we believe we're poised to benefit from owning a good mix of growth
and value stocks. Overall, we are convinced that international growth will be
greater over the next few years than that of the domestic market.
5 Oppenheimer Global Emerging Growth Fund
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS SEPTEMBER 30, 1996
MARKET VALUE
SHARES SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS--95.0%
- ----------------------------------------------------------------------------------------------------------------------------------
BASIC MATERIALS--3.7%
- ----------------------------------------------------------------------------------------------------------------------------------
CHEMICALS--1.1% Saes Getters SpA 120,000 $ 1,785,749
- ----------------------------------------------------------------------------------------------------------------------------------
GOLD--1.0% Cambior, Inc. 75,000 1,029,519
-------------------------------------------------------------------------------------------------------
Dayton Mining Corp.(1) 100,000 682,676
----------
1,712,195
- ----------------------------------------------------------------------------------------------------------------------------------
METALS--1.6% Boehler-Uddeholm AG 10,000 799,617
-------------------------------------------------------------------------------------------------------
Cia de Minas Buenaventura SA, Sponsored ADR(1) 100,000 1,925,000
----------
2,724,617
- ----------------------------------------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS--22.8%
- ----------------------------------------------------------------------------------------------------------------------------------
AUTOS & HOUSING--5.7% Alrenco, Inc.(1) 30,000 630,000
-------------------------------------------------------------------------------------------------------
Belmont Homes, Inc.(1) 70,000 1,767,500
-------------------------------------------------------------------------------------------------------
Ciadea SA 219,997 1,045,120
-------------------------------------------------------------------------------------------------------
IRSA Inversiones y Representaciones, SA 257,201 751,123
-------------------------------------------------------------------------------------------------------
Orbital Engine Corp. Ltd.(1) 1,100,000 983,504
-------------------------------------------------------------------------------------------------------
Porsche AG, Preference(1) 5,500 3,760,986
-------------------------------------------------------------------------------------------------------
Thai Stanley Electric Co. Ltd. 150,000 708,174
----------
9,646,407
- ----------------------------------------------------------------------------------------------------------------------------------
LEISURE &
ENTERTAINMENT--6.9% Applebee's International, Inc. 30,000 795,000
-------------------------------------------------------------------------------------------------------
Casa Ole Restaurants, Inc.(1) 61,700 794,387
-------------------------------------------------------------------------------------------------------
China Hong Kong Photo Products Holdings Ltd. 1,500,000 547,975
-------------------------------------------------------------------------------------------------------
Cinar Films, Inc., Cl. B(1) 60,000 1,563,750
-------------------------------------------------------------------------------------------------------
CKE Restaurants, Inc. 40,000 1,230,000
-------------------------------------------------------------------------------------------------------
Coach USA, Inc.(1) 30,000 802,500
-------------------------------------------------------------------------------------------------------
Galoob (Lewis) Toys, Inc.(1) 30,000 877,500
-------------------------------------------------------------------------------------------------------
Longhorn Steaks, Inc.(1) 40,000 610,000
-------------------------------------------------------------------------------------------------------
Lusomundo SGPS SA(1) 200,000 2,043,776
-------------------------------------------------------------------------------------------------------
Metromedia International Group, Inc.(1) 65,000 690,625
-------------------------------------------------------------------------------------------------------
Quality Dining, Inc.(1) 30,000 855,000
-------------------------------------------------------------------------------------------------------
Square Co. Ltd. 15,000 861,953
----------
11,672,466
- ----------------------------------------------------------------------------------------------------------------------------------
MEDIA--2.0% Capital Radio PLC 85,000 794,676
-------------------------------------------------------------------------------------------------------
Dorling Kindersley Holdings PLC 90,000 686,645
-------------------------------------------------------------------------------------------------------
NRJ SA 6,500 774,522
-------------------------------------------------------------------------------------------------------
Wireless One, Inc.(1) 70,000 1,032,500
----------
3,288,343
- ----------------------------------------------------------------------------------------------------------------------------------
RETAIL: GENERAL--3.4% Galeries Lafayette(1) 4,201 1,217,669
-------------------------------------------------------------------------------------------------------
Lojas Americanas SA, Preference 19,000,000 321,925
-------------------------------------------------------------------------------------------------------
Nautica Enterprises, Inc.(1) 20,000 645,000
</TABLE>
6 Oppenheimer Global Emerging Growth Fund
<PAGE>
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
RETAIL: GENERAL PT Matahari Putra Prima 400,000 $ 435,064
(CONTINUED) -------------------------------------------------------------------------------------------------------
PT Ramayana Lestari Sentosa(1) 835,000 1,402,757
-------------------------------------------------------------------------------------------------------
Vans, Inc.(1) 40,000 765,000
-------------------------------------------------------------------------------------------------------
Wolverine World Wide, Inc. 36,000 999,000
----------
5,786,415
- ----------------------------------------------------------------------------------------------------------------------------------
RETAIL: SPECIALTY--4.8% Giordano International Ltd. 1,000,000 879,346
-------------------------------------------------------------------------------------------------------
Maruko Co. Ltd. 12,100 793,086
-------------------------------------------------------------------------------------------------------
Moebel Walther AG, Preference 40,000 2,438,920
-------------------------------------------------------------------------------------------------------
Moovies, Inc.(1) 60,000 330,000
-------------------------------------------------------------------------------------------------------
Party City Corp.(1) 50,000 937,500
-------------------------------------------------------------------------------------------------------
Ryohin Keikaku Co. Ltd. 13,000 1,101,863
-------------------------------------------------------------------------------------------------------
Wolford AG 6,000 1,532,133
----------
8,012,848
- ----------------------------------------------------------------------------------------------------------------------------------
CONSUMER NON-CYCLICALS--23.4%
- ----------------------------------------------------------------------------------------------------------------------------------
BEVERAGES--2.7% Hellenic Bottling Co., SA 40,000 1,361,165
-------------------------------------------------------------------------------------------------------
Panamerican Beverages, Inc., Cl. A 20,000 822,500
-------------------------------------------------------------------------------------------------------
Remy Cointreau 65,469 1,654,087
-------------------------------------------------------------------------------------------------------
Serm Suk Public Co. Ltd. 25,000 767,188
----------
4,604,940
- ----------------------------------------------------------------------------------------------------------------------------------
EDUCATION--0.8% National Education Corp.(1) 70,000 1,338,750
- ----------------------------------------------------------------------------------------------------------------------------------
FOOD--4.9% Disco SA, Sponsored ADR(1) 51,800 1,016,575
-------------------------------------------------------------------------------------------------------
Hokuto Corp. 19,000 812,031
-------------------------------------------------------------------------------------------------------
Lindt & Spruengli AG, Participation Certificates 1,000 1,659,288
-------------------------------------------------------------------------------------------------------
Molinos Rio de la Plata SA, Cl. B 437,499 1,435,180
-------------------------------------------------------------------------------------------------------
Perdigao SA, Comercio e Industria, Preference 240,000,000 378,436
-------------------------------------------------------------------------------------------------------
Performance Food Group Co.(1) 42,000 693,000
-------------------------------------------------------------------------------------------------------
Raision Tehtaat Oy 32,000 1,926,637
-------------------------------------------------------------------------------------------------------
Universal Robina Corp. 667,000 336,869
----------
8,258,016
- ----------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE/DRUGS--6.9% Alpha-Beta Technology, Inc.(1) 40,000 430,000
-------------------------------------------------------------------------------------------------------
Biocompatibles International PLC(1) 297,500 2,502,298
-------------------------------------------------------------------------------------------------------
Dura Pharmaceuticals, Inc.(1) 40,000 1,475,000
-------------------------------------------------------------------------------------------------------
Marseille-Kliniken AG 35,000 1,262,076
-------------------------------------------------------------------------------------------------------
Norland Medical Systems, Inc.(1) 50,000 1,062,500
-------------------------------------------------------------------------------------------------------
Rohto Pharmaceutical Co. 60,000 635,690
-------------------------------------------------------------------------------------------------------
SangStat Medical Corp.(1) 50,000 1,275,000
-------------------------------------------------------------------------------------------------------
Teikoku Hormone Manufacturing Co. Ltd. 50,000 673,401
-------------------------------------------------------------------------------------------------------
Tiger Medicals Ltd. 493,000 808,743
-------------------------------------------------------------------------------------------------------
Torii Pharmaceutical Co. Ltd. 70,000 1,489,562
----------
11,614,270
</TABLE>
7 Oppenheimer Global Emerging Growth Fund
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS (CONTINUED)
MARKET VALUE
SHARES SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
HEALTHCARE/SUPPLIES & Althin Medical AB, B Shares 60,000 $ 1,266,835
SERVICES--7.6% -------------------------------------------------------------------------------------------------------
AmeriSource Health Corp., Cl. A(1) 30,000 1,335,000
-------------------------------------------------------------------------------------------------------
Capstone Pharmacy Services, Inc.(1) 60,000 742,500
-------------------------------------------------------------------------------------------------------
Egis RT(1) 20,000 1,408,132
-------------------------------------------------------------------------------------------------------
Elekta AB, B Shares 15,000 506,734
-------------------------------------------------------------------------------------------------------
Gulf South Medical Supply, Inc.(1) 30,000 772,500
-------------------------------------------------------------------------------------------------------
Nichii Gakkan Co. 27,000 1,367,273
-------------------------------------------------------------------------------------------------------
OccuSystems, Inc.(1) 30,000 900,000
-------------------------------------------------------------------------------------------------------
Omnicare, Inc. 26,000 793,000
-------------------------------------------------------------------------------------------------------
Pediatrix Medical Group, Inc.(1) 13,500 676,687
-------------------------------------------------------------------------------------------------------
PhyCor, Inc.(1) 25,000 951,562
-------------------------------------------------------------------------------------------------------
Rural/Metro Corp.(1) 15,000 547,500
-------------------------------------------------------------------------------------------------------
Serologicals Corp.(1) 20,000 695,000
-------------------------------------------------------------------------------------------------------
Total Renal Care Holdings, Inc.(1) 20,000 795,000
----------
12,757,723
- ----------------------------------------------------------------------------------------------------------------------------------
HOUSEHOLD GOODS--0.5% Srithai Superware Co. Ltd. 175,000 757,353
- ----------------------------------------------------------------------------------------------------------------------------------
ENERGY--4.7%
- ----------------------------------------------------------------------------------------------------------------------------------
ENERGY SERVICES & Cie Generale de Geophysique SA(1) 37,500 2,492,128
PRODUCERS--3.5% -------------------------------------------------------------------------------------------------------
Newfield Exploration Co.(1) 20,000 900,000
-------------------------------------------------------------------------------------------------------
Smedvig AS 100,000 2,061,052
-------------------------------------------------------------------------------------------------------
Smedvig AS, Series B(1) 25,000 463,352
----------
5,916,532
- ----------------------------------------------------------------------------------------------------------------------------------
OIL-INTEGRATED--1.2% Expro International Group PLC 210,100 1,231,763
-------------------------------------------------------------------------------------------------------
Forasol-Foramer NV(1) 60,000 727,500
----------
1,959,263
- ----------------------------------------------------------------------------------------------------------------------------------
FINANCIAL--7.8%
- ----------------------------------------------------------------------------------------------------------------------------------
BANKS--0.8% Industrial Credit & Investment Corp. of India Ltd. (The), GDR(1)(2) 92,900 1,033,512
-------------------------------------------------------------------------------------------------------
PT Lippo Bank 209,500 324,876
----------
1,358,388
- ----------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED
FINANCIAL--3.2% Credicorp Ltd. 47,000 893,000
-------------------------------------------------------------------------------------------------------
Egypt Investment Co.(1) 96,500 1,145,937
-------------------------------------------------------------------------------------------------------
Green Tree Financial Corp. 30,000 1,177,500
-------------------------------------------------------------------------------------------------------
Manhattan Card Co. Ltd. 2,500,000 1,236,581
-------------------------------------------------------------------------------------------------------
Wing Hang Bank Ltd. 250,000 937,538
----------
5,390,556
- ----------------------------------------------------------------------------------------------------------------------------------
INSURANCE--3.8% CapMAC Holdings, Inc. 30,000 997,500
-------------------------------------------------------------------------------------------------------
Ockham Holdings PLC 1,200,000 1,791,655
-------------------------------------------------------------------------------------------------------
Reinsurance Australia Corp. Ltd. 1,250,000 3,580,336
----------
6,369,491
</TABLE>
8 Oppenheimer Global Emerging Growth Fund
<PAGE>
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL--20.2%
- ----------------------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--0.8% Crompton Greaves Ltd., GDR(1) 70,000 $ 346,500
-------------------------------------------------------------------------------------------------------
LEM Holdings SA 4,300 998,205
----------
1,344,705
- ----------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL MATERIALS--0.5% HI Cement Corp.(1)(2) 2,592,000 869,434
- ----------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL SERVICES--11.2% Affiliated Computer Services, Inc., Cl. A(1) 17,000 998,750
-------------------------------------------------------------------------------------------------------
Boskalis Westminster 152,000 2,967,240
-------------------------------------------------------------------------------------------------------
Cordiant PLC(1) 1,010,000 1,768,517
-------------------------------------------------------------------------------------------------------
Daisytek International Corp.(1) 25,000 1,081,250
-------------------------------------------------------------------------------------------------------
DecisionOne Holdings Corp.(1) 35,000 490,000
-------------------------------------------------------------------------------------------------------
Fugro NV 100,000 1,537,158
-------------------------------------------------------------------------------------------------------
KCI Konecranes International Corp.(1) 80,000 2,224,390
-------------------------------------------------------------------------------------------------------
May & Speh, Inc.(1) 50,000 1,000,000
-------------------------------------------------------------------------------------------------------
MRC Allied Industries, Inc.(1) 8,000,000 975,796
-------------------------------------------------------------------------------------------------------
PT Citra Marga Nusaphala Persada 2,331,000 1,581,445
-------------------------------------------------------------------------------------------------------
Rent-Way, Inc.(1) 10,000 126,250
-------------------------------------------------------------------------------------------------------
Serco Group PLC 100,000 953,673
-------------------------------------------------------------------------------------------------------
Transaction Systems Architects, Inc., Cl. A(1) 20,000 845,000
-------------------------------------------------------------------------------------------------------
VBH Vereinigter Baubeschlag Handel AG 70,000 1,733,863
-------------------------------------------------------------------------------------------------------
Walsh International, Inc.(1) 60,000 600,000
----------
18,883,332
- ----------------------------------------------------------------------------------------------------------------------------------
MANUFACTURING--5.8% Bucher Holding AG, B Shares 2,000 1,499,741
-------------------------------------------------------------------------------------------------------
First Philippine Holdings Corp., B Shares 700,000 1,520,869
-------------------------------------------------------------------------------------------------------
Legris Industries SA 20,000 759,506
-------------------------------------------------------------------------------------------------------
Powerscreen International PLC 200,000 1,718,175
-------------------------------------------------------------------------------------------------------
Toolex Alpha NV(1) 65,000 1,462,500
-------------------------------------------------------------------------------------------------------
U.S. Filter Corp.(1) 60,000 2,047,500
-------------------------------------------------------------------------------------------------------
Wai Kee Holdings Ltd. 3,500,000 792,058
----------
9,800,349
- ----------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION--1.9% Guangshen Railway Co. Ltd., Sponsored ADR(1) 39,000 741,000
-------------------------------------------------------------------------------------------------------
Koninklijke Van Ommeren NV 30,000 1,174,786
-------------------------------------------------------------------------------------------------------
Lisnave-Estaleiros Navais de Lisboa SA(1) 467,400 1,205,377
----------
3,121,163
- ----------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY--12.4%
- ----------------------------------------------------------------------------------------------------------------------------------
COMPUTER HARDWARE--1.8% PT Multipolar Corp.(3) 6,349,200 3,083,413
- ----------------------------------------------------------------------------------------------------------------------------------
COMPUTER SOFTWARE--6.1% Business Objects SA, Sponsored ADR(1) 25,000 481,250
-------------------------------------------------------------------------------------------------------
Engineering Animation, Inc.(1) 41,800 1,003,200
-------------------------------------------------------------------------------------------------------
Global DirectMail Corp.(1) 20,000 955,000
-------------------------------------------------------------------------------------------------------
Ines Corp. 40,000 721,885
</TABLE>
9 Oppenheimer Global Emerging Growth Fund
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS (CONTINUED)
MARKET VALUE
SHARES SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMPUTER SOFTWARE Integrated Measurement Systems, Inc.(1) 40,000 $ 660,000
(CONTINUED) -------------------------------------------------------------------------------------------------------
McAfee Associates, Inc.(1) 15,000 1,035,000
-------------------------------------------------------------------------------------------------------
Misys PLC 201,833 2,751,556
-------------------------------------------------------------------------------------------------------
National Instruments Corp.(1) 30,000 795,000
-------------------------------------------------------------------------------------------------------
PLATINUM Technology, Inc.(1) 60,000 757,500
-------------------------------------------------------------------------------------------------------
Technology Modeling Associates, Inc.(1) 32,500 422,500
-------------------------------------------------------------------------------------------------------
Versant Object Technology Corp.(1) 30,000 712,500
------------
10,295,391
- ----------------------------------------------------------------------------------------------------------------------------------
ELECTRONICS--2.3% Gold Peak Industries (Holdings) Ltd. 1,600,000 987,971
-------------------------------------------------------------------------------------------------------
Medasys Digital Systems(1) 50,000 547,348
-------------------------------------------------------------------------------------------------------
Pittway Corp., Cl. A 20,000 892,500
-------------------------------------------------------------------------------------------------------
SDL, Inc.(1) 30,000 615,000
-------------------------------------------------------------------------------------------------------
Shinmei Electric Co. 35,000 741,638
------------
3,784,457
- ----------------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS- Amper SA(1) 120,000 1,495,269
TECHNOLOGY--2.2% -------------------------------------------------------------------------------------------------------
LCI International, Inc.(1) 36,000 1,134,000
-------------------------------------------------------------------------------------------------------
Tel-Save Holdings, Inc.(1) 20,000 575,000
-------------------------------------------------------------------------------------------------------
Teltrend, Inc.(1) 10,000 425,000
------------
3,629,269
------------
Total Common Stocks (Cost $142,869,934) 159,765,835
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS--1.5%
- ----------------------------------------------------------------------------------------------------------------------------------
Marschollek, Lautenschlaeger und Partner-VO,
Non-vtg. Preferred Stock (Cost $1,127,145) 20,000 2,517,595
UNITS
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
RIGHTS, WARRANTS AND CERTIFICATES--0.1%
- ----------------------------------------------------------------------------------------------------------------------------------
Biocompatibles International PLC Wts., Exp. 2/97 42,500 41,196
-------------------------------------------------------------------------------------------------------
PerSeptive Biosystems, Inc., Cl. A Wts., Exp. 12/97 40,110 --
-------------------------------------------------------------------------------------------------------
PT Matahari Putra Prima Rts., Exp. 11/96 400,000 262,761
------------
Total Rights, Warrants and Certificates (Cost $283,984) 303,957
FACE
AMOUNT
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT--3.4%
- ----------------------------------------------------------------------------------------------------------------------------------
Repurchase agreement with Goldman, Sachs & Co., 5.62%,
dated 9/30/96, to be repurchased at $5,700,890 on 10/1/96,
collateralized by U.S. Treasury Bonds, 8.875%--11.125%,
8/15/03--8/15/17, with a value of $5,820,580 (Cost $5,700,000) $5,700,000 5,700,000
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $149,981,063) 100.0% 168,287,387
- ----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS (0.0) (81,030)
---------- ------------
NET ASSETS 100.0% $168,206,357
---------- ------------
---------- ------------
</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 $55,336,400 32.9%
-------------------------------------------------------------------------------------------------------
Great Britain 14,240,155 8.5
-------------------------------------------------------------------------------------------------------
Germany 11,713,440 7.0
-------------------------------------------------------------------------------------------------------
Japan 9,198,383 5.5
-------------------------------------------------------------------------------------------------------
France 8,654,010 5.1
-------------------------------------------------------------------------------------------------------
The Netherlands 7,141,684 4.2
-------------------------------------------------------------------------------------------------------
Indonesia 7,090,315 4.2
-------------------------------------------------------------------------------------------------------
Hong Kong 5,381,469 3.2
-------------------------------------------------------------------------------------------------------
Australia 4,563,840 2.7
-------------------------------------------------------------------------------------------------------
Argentina 4,247,998 2.5
-------------------------------------------------------------------------------------------------------
Switzerland 4,157,233 2.5
-------------------------------------------------------------------------------------------------------
Finland 4,151,026 2.5
-------------------------------------------------------------------------------------------------------
Philippines 3,702,967 2.2
-------------------------------------------------------------------------------------------------------
Canada 3,275,944 1.9
-------------------------------------------------------------------------------------------------------
Portugal 3,249,153 1.9
-------------------------------------------------------------------------------------------------------
Peru 2,818,000 1.7
-------------------------------------------------------------------------------------------------------
Norway 2,524,404 1.5
-------------------------------------------------------------------------------------------------------
Austria 2,331,750 1.4
-------------------------------------------------------------------------------------------------------
Thailand 2,232,715 1.3
-------------------------------------------------------------------------------------------------------
Italy 1,785,749 1.1
-------------------------------------------------------------------------------------------------------
Sweden 1,773,568 1.1
-------------------------------------------------------------------------------------------------------
Spain 1,495,269 0.9
-------------------------------------------------------------------------------------------------------
Hungary 1,408,132 0.8
-------------------------------------------------------------------------------------------------------
India 1,380,013 0.8
-------------------------------------------------------------------------------------------------------
Greece 1,361,165 0.8
-------------------------------------------------------------------------------------------------------
Mexico 822,500 0.5
-------------------------------------------------------------------------------------------------------
Singapore 808,743 0.5
-------------------------------------------------------------------------------------------------------
China 741,000 0.4
-------------------------------------------------------------------------------------------------------
Brazil 700,362 0.4
------------ ------------
Total $168,287,387 100.0%
------------ ------------
------------ ------------
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 $1,902,946 or 1.13% of the Fund's net assets, at September
30, 1996.
3. Affiliated company. Represents ownership of at least 5% of the voting securities of the issuer and is
or was an affiliate, as defined in the Investment Company Act of 1940, at or during the period ended
September 30, 1996. The aggregate fair value of all securities of affiliated companies as of September
30, 1996 amounted to $3,083,413. Transactions during the period in which the issuer was an affiliate are
as follows:
BALANCE BALANCE
SEPTEMBER 30, 1995 GROSS ADDITIONS GROSS REDUCTIONS SEPTEMBER 30, 1996
------------------ --------------------- --------------------- ---------------------
SHARES COST SHARES COST SHARES COST SHARES COST
- ----------------------------------------------------------------------------------------------------------------------------------
Cambridge Antibody
Technology Ltd., CV. 100,000 $3,300,000 -- $ -- 100,000 $3,300,000 -- $ --
- ----------------------------------------------------------------------------------------------------------------------------------
PT Multipolar Corp. -- -- 6,349,200 3,947,959 -- -- 6,349,200 3,947,959
---------- ---------- ---------- ----------
$3,300,000 $3,947,959 $3,300,000 $3,947,959
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
</TABLE>
See accompanying Notes to Financial Statements.
11 Oppenheimer Global Emerging Growth Fund
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES SEPTEMBER 30, 1996
<TABLE>
- -------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS Investments, at value--see accompanying statement:
Unaffiliated companies (cost $146,033,104) $165,203,974
Affiliated companies (cost $3,947,959) 3,083,413
----------------------------------------------------------------
Cash 298,216
----------------------------------------------------------------
Unrealized appreciation on forward foreign
currency exchange contracts--Note 5 112,867
----------------------------------------------------------------
Receivables:
Shares of beneficial interest sold 422,037
Investments sold 332,151
Interest and dividends 203,369
----------------------------------------------------------------
Other 10,507
------------
Total assets 169,666,534
- -------------------------------------------------------------------------------------------
LIABILITIES Unrealized depreciation on forward foreign
currency exchange contracts--Note 5 12,948
----------------------------------------------------------------
Payables and other liabilities:
Investments purchased 546,537
Shares of beneficial interest redeemed 432,158
Shareholder reports 130,516
Trustees' fees 106,873
Distribution and service plan fees 99,748
Transfer and shareholder servicing agent fees 55,505
Custodian fees 41,301
Other 34,591
------------
Total liabilities 1,460,177
- -------------------------------------------------------------------------------------------
NET ASSETS $168,206,357
------------
------------
- -------------------------------------------------------------------------------------------
COMPOSITION OF Paid-in capital $170,369,937
NET ASSETS ----------------------------------------------------------------
Accumulated net investment loss (266,679)
----------------------------------------------------------------
Accumulated net realized loss on investments
and foreign currency transactions (20,303,931)
----------------------------------------------------------------
Net unrealized appreciation on investments
and translation of assets and liabilities
denominated in foreign currencies 18,407,030
------------
Net assets $168,206,357
------------
------------
- -------------------------------------------------------------------------------------------
NET ASSET VALUE Class A Shares:
PER SHARE Net asset value and redemption price per share
(based on net assets of $154,081,998 and 7,351,701
shares of beneficial interest outstanding) $20.96
Maximum offering price per share (net asset value
plus sales charge of 5.75% of offering price) $22.24
----------------------------------------------------------------
Class B Shares:
Net asset value, redemption price and offering
price per share (based on net assets of
$10,854,911 and 522,496 shares of beneficial
interest outstanding) $20.78
----------------------------------------------------------------
Class C Shares:
Net asset value, redemption price and offering
price per share (based on net assets of $3,269,448
and 157,283 shares of beneficial interest
outstanding) $20.79
</TABLE>
See accompanying Notes to Financial Statements.
12 Oppenheimer Global Emerging Growth Fund
<PAGE>
STATEMENT OF OPERATIONS FOR THE YEAR ENDED SEPTEMBER 30, 1996
<TABLE>
- -------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME Dividends (net of foreign withholding
taxes of $66,338) $1,980,310
----------------------------------------------------------------
Interest 585,187
----------
Total income 2,565,497
- -------------------------------------------------------------------------------------------
EXPENSES Management fees--Note 4 1,233,678
----------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 603,641
----------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 340,899
Class B 42,516
Class C 14,558
----------------------------------------------------------------
Shareholder reports 230,027
----------------------------------------------------------------
Custodian fees and expenses 175,262
----------------------------------------------------------------
Trustees' fees and expenses--Note 1 66,235
----------------------------------------------------------------
Legal and auditing fees 38,828
----------------------------------------------------------------
Registration and filing fees:
Class A 774
Class B 3,643
Class C 1,103
----------------------------------------------------------------
Other 49,448
----------
Total expenses 2,800,612
- -------------------------------------------------------------------------------------------
NET INVESTMENT LOSS (235,115)
- -------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED Net realized gain (loss) on:
GAIN (LOSS) Investments:
Unaffiliated companies 21,952,395
Affiliated companies (135,000)
Foreign currency transactions (691,072)
----------
Net realized gain 21,126,323
----------------------------------------------------------------
Net change in unrealized appreciation or
depreciation on:
Investments 491,725
Translation of assets and liabilities denominated
in foreign currencies (824,768)
----------
Net change (333,043)
----------
Net realized and unrealized gain 20,793,280
- -------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $20,558,165
-----------
-----------
</TABLE>
See accompanying Notes to Financial Statements.
13 Oppenheimer Global Emerging Growth Fund
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30,
1996 1995
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
OPERATIONS Net investment income (loss) $ (235,115) $ 107,231
-------------------------------------------------------------------------------------------------
Net realized gain (loss) 21,126,323 (40,930,783)
-------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation (333,043) 27,445,462
------------ ------------
Net increase (decrease) in net assets resulting from operations 20,558,165 (13,378,090)
-------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST Net increase (decrease) in net assets resulting from beneficial
TRANSACTIONS interest transactions--Note 2:
Class A (6,010,385) (10,093,708)
Class B 10,625,564 --
Class C 3,210,027 --
- ------------------------------------------------------------------------------------------------------------------------
NET ASSETS Total increase (decrease) 28,383,371 (23,471,798)
-------------------------------------------------------------------------------------------------
Beginning of period 139,822,986 163,294,784
------------ ------------
End of period (including accumulated net investment losses
of $266,679 and $130,131, respectively) $168,206,357 $139,822,986
------------ ------------
------------ ------------
</TABLE>
See accompanying Notes to Financial Statements.
14 Oppenheimer Global Emerging Growth Fund
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C
------------------------------------------------ --------- ---------
PERIOD PERIOD
ENDED ENDED
YEAR ENDED SEPTEMBER 30, SEPT. 30, SEPT. 30,
1996 1995 1994 1993 1992 1996(1) 1996(1)
- -----------------------------------------------------------------------------------------------------------------------
<S> <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 $17.43 $17.43
- --------------------------------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment income (loss) (.03) .01 (.01) (.10) (.17) (.01) (.01)
Net realized and unrealized
gain (loss) 2.96 (1.33) (2.11) 1.69 (6.47) 3.36 3.37
------ ------ ------ ------ ------ ------ ------
Total income (loss) from
investment operations 2.93 (1.32) (2.12) 1.59 (6.64) 3.35 3.36
- --------------------------------------------------------------------------------------------------------------------
Dividends and distributions to
shareholders:
Dividends from net investment
income -- -- -- -- (.01) -- --
Distributions from net
realized gain -- -- (.17) (.20) -- -- --
------ ------ ------ ------ ------ ------ ------
Total dividends and distributions
to shareholders -- -- (.17) (.20) (.01) -- --
- --------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $20.96 $18.03 $19.35 $21.64 $20.25 $20.78 $20.79
------ ------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------ ------
- --------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(2) 16.25% (6.82)% (9.91)% 7.79% (24.70)% 19.22% 19.28%
- --------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $154,082 $139,823 $163,295 $199,697 $129,634 $10,855 $3,269
- --------------------------------------------------------------------------------------------------------------------
Average net assets
(in thousands) $142,045 $148,378 $190,984 $194,184 $166,144 $4,675 $1,599
- --------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) (0.15)% 0.07% (1.05)% (0.80)% (0.71)% (0.42)%(3) (0.45)%(3)
Expenses 1.87% 1.76% 1.77% 1.59% 1.39% 2.56%(3) 2.54%(3)
- --------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(4) 125.9% 160.3% 54.7% 41.0% 2.6% 125.9% 125.9%
Average brokerage
commission rate(5) $0.0030 -- -- -- -- $0.0030 $0.0030
</TABLE>
1.For the period from November 1, 1995 (inception of offering) to September 30,
1996.
2. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period (or inception of offering), with all dividends
and distributions reinvested in additional shares on the reinvestment date, and
redemption at the net asset value calculated on the last business day of the
fiscal period. Sales charges are not reflected in the total returns. Total
returns are not annualized for periods of less than one full year.
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 period
ended September 30, 1996 were $182,488,843 and $175,044,184, respectively.
5. 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
- ------
1. SIGNIFICANT Oppenheimer Global Emerging Growth Fund (the Fund) is
ACCOUNTING POLICIES 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 aggressively seek capital appreciation from equity
securities. In seeking its objective, the Fund
emphasizes investments in emerging growth companies in
the U.S. and foreign countries that offer the potential
for growth of earnings or capital. The Fund's
investment adviser 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 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. At September 30, 1996, the
Fund had available for federal income tax purposes an
unused capital loss carryover of approximately
$29,567,000, which expires between 1998 and 2004.
-------------------------------------------------------
TRUSTEES' FEES AND EXPENSES. The Fund has adopted a
nonfunded retirement plan for the Fund's independent
trustees. Benefits are based on years of service and
fees paid to each trustee during the years of service.
During the year ended September 30, 1996, a provision
of $40,711 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
$100,657 at September 30, 1996.
16 Oppenheimer Global Emerging Growth Fund
<PAGE>
- --------------------------------------------------------------------------------
1. SIGNIFICANT DISTRIBUTIONS TO SHAREHOLDERS. Dividends and
ACCOUNTING POLICIES distributions to shareholders are recorded on the ex-
(CONTINUED) dividend date.
-------------------------------------------------------
CLASSIFICATION OF DISTRIBUTIONS TO SHAREHOLDERS. Net
investment income (loss) and net realized gain (loss)
may differ for financial statement and 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.
During the year ended September 30, 1996, the
Fund adjusted the classification of investment income
and capital gain (loss) to shareholders to reflect the
differences between the financial statement amounts and
those determined in accordance with income tax
regulations. Accordingly, during the year ended
September 30, 1996, amounts have been reclassified to
reflect a decrease in undistributed net investment
income of $312,755, a decrease in accumulated net
realized loss on investments of $460,650, and a
decrease in paid-in capital of $147,895. In addition,
to properly reflect foreign currency gain in the
components of capital, $411,322 of foreign exchange
gain determined according to U.S. federal income tax
rules has been reclassified from net realized gain to
net investment loss.
-------------------------------------------------------
OTHER. Investment transactions are accounted for on the
date the investments are purchased or sold (trade date)
and dividend income is recorded on the ex-dividend
date. Realized gains and losses on investments and
unrealized appreciation and depreciation are determined
on an identified cost basis, which is the same basis
used for federal income tax purposes.
The preparation of financial statements in
conformity with generally accepted accounting
principles requires management to make estimates and
assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and
the reported amounts of income and expenses during the
reporting period. Actual results could differ from
those estimates.
- --------------------------------------------------------------------------------
2. SHARES OF The Fund has authorized an unlimited number of no par
BENEFICIAL INTEREST value shares of beneficial interest. Transactions in
shares of beneficial interest were as follows:
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30, 1996(1) YEAR ENDED SEPTEMBER 30, 1995
-------------------------------- ------------------------------
SHARES AMOUNT SHARES AMOUNT
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 3,277,006 $ 65,681,449 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 (3,681,446) (71,691,834) (3,370,269) (57,504,969)
---------- ----------- ---------- -----------
Net decrease (404,440) $ (6,010,385) (681,266) $(10,093,708)
---------- ----------- ---------- -----------
---------- ----------- ---------- -----------
----------------------------------------------------------------------------------------------------
Class B:
Sold 722,783 $ 14,601,668 -- $ --
Redeemed (200,287) (3,976,104) -- --
---------- ----------- ---------- -----------
Net increase 522,496 $ 10,625,564 -- $ --
---------- ----------- ---------- -----------
---------- ----------- ---------- -----------
----------------------------------------------------------------------------------------------------
Class C:
Sold 244,882 $ 4,972,628 -- $ --
Redeemed (87,599) (1,762,601) -- --
---------- ----------- ---------- -----------
Net increase 157,283 $ 3,210,027 -- $ --
---------- ----------- ---------- -----------
---------- ----------- ---------- -----------
</TABLE>
1. For the year ended September 30, 1996 for Class A
shares and for the period from November 1, 1995
(inception of offering) to September 30, 1996 for Class
B and Class C shares.
17 Oppenheimer Global Emerging Growth Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
3. UNREALIZED GAINS AND At September 30, 1996, net unrealized appreciation on
LOSSES ON INVESTMENTS investments of $18,306,324 was composed of gross
appreciation of $26,458,740, and gross depreciation of
$8,152,416.
- --------------------------------------------------------------------------------
4. MANAGEMENT FEES Management fees paid to the Manager were in accordance
AND OTHER TRANSACTIONS with the investment advisory agreement with the Fund
WITH AFFILIATES which provides for a fee of 1% of the first $50 million
of average annual net assets, 0.75% of the next $150
million; 0.72% of the next 200 million; 0.69% of the
next $200 million; 0.66% of the next $200 million; and
0.60% of net assets in excess of $800 million. The
Manager has agreed to reimburse the Fund if aggregate
expenses (with specified exceptions) exceed the most
stringent applicable regulatory limit on Fund expenses.
For the year ended September 30, 1996,
commissions (sales charges paid by investors) on sales
of Class A shares totaled $547,341, of which $159,815
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 $280,291
and $29,431 of which $15,404 was paid to an affiliated
broker/dealer for Class B. During the period ended
September 30, 1996, OFDI received contingent deferred
sales charges of $8,208 and $1,057, respectively, upon
redemption of Class B and Class C shares as
reimbursement for sales commissions advanced by OFDI at
the time of sale of such shares.
OppenheimerFunds Services (OFS), a division
of the Manager, is the transfer and shareholder
servicing agent for the Fund, and 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 0.25% of the average annual net assets
of Class A shares of the Fund. OFDI uses the service
fee to reimburse brokers, dealers, banks and other
financial institutions quarterly for providing personal
service and maintenance of accounts of their customers
that hold Class A shares. During the year ended
September 30, 1996, OFDI paid $17,351 to an affiliated
broker/dealer as reimbursement for Class A personal
service and maintenance expenses.
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 0.75% per year on Class B
shares 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 0.25% 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 year ended September 30, 1996,
OFDI retained $38,764 and $12,877, respectively, as
compensation for Class B and Class C sales commissions
and service fee advances, as well as financing costs.
At September 30, 1996, OFDI had incurred unreimbursed
expenses of $284,933 for Class B and $48,241 for Class
C.
18 Oppenheimer Global Emerging Growth Fund
<PAGE>
- --------------------------------------------------------------------------------
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 September 30, 1996, the Fund had outstanding forward
contracts to purchase and sell foreign currencies as
follows:
<TABLE>
<CAPTION>
CONTRACT AMOUNT VALUATION AS OF UNREALIZED UNREALIZED
CONTRACTS TO PURCHASE EXPIRATION DATE (000'S) SEPTEMBER 30, 1996 APPRECIATION DEPRECIATION
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
British Pound Sterling (GBP) 10/2/96 38 GBP $ 59,629 $ 34 $ --
- ---------------------------------------------------------------------------------------------------------------------------
Japanese Yen (JPY) 10/1/96 343,940 JPY 3,088,125 -- 12,948
---------- -------- --------
$3,147,754 34 12,948
---------- -------- --------
---------- -------- --------
CONTRACTS TO SELL
- ---------------------------------------------------------------------------------------------------------------------------
Indonesian Rupiah (IDR) 10/1/96--10/2/96 33,562 IDR $ 14,457 $ 3 $ --
- ---------------------------------------------------------------------------------------------------------------------------
Japanese Yen (JPY) 10/1/96--10/6/96 687,880 JPY 6,216,417 112,830 --
---------- -------- --------
$6,230,874 112,833 --
---------- -------- --------
----------
Total Unrealized Appreciation and Depreciation $112,867 $ 12,948
-------- --------
-------- --------
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
6. ACQUISITION OF On November 18, 1994, the Fund acquired all of the net
OPPENHEIMER GLOBAL assets of Oppenheimer Global Environment Fund, pursuant
ENVIRONMENT FUND 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 Class A
shares of beneficial interest, valued at $27,636,869,
in exchange for the net assets, resulting in combined
Class A net assets of $174,971,153 on November 18,
1994. The net assets acquired included net unrealized
appreciation of $2,684,431. The exchange qualifies as a
tax-free reorganization for federal income tax
purposes.
19 Oppenheimer Global Emerging Growth Fund
<PAGE>
INDEPENDENT AUDITORS' REPORT
- --------------------------------------------------------------------------------
The Board of Trustees and Shareholders of Oppenheimer
Global Emerging Growth Fund:
We have audited the accompanying statements of
investments and assets and liabilities of Oppenheimer
Global Emerging Growth Fund as of September 30, 1996,
and the related statement of operations for the year
then ended, the statements of changes in net assets for
each of the years in the two year period then ended and
the financial highlights for each of the years in the
five year period then ended. These financial statements
and financial highlights are the responsibility of the
Fund's management. Our responsibility is to express an
opinion on these financial statements and financial
highlights based on our audits.
We conducted our audits in accordance with
generally accepted auditing standards. Those standards
require that we plan and perform the audit to obtain
reasonable assurance about whether the financial
statements and financial highlights are free of
material misstatement. An audit includes examining, on
a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures
included confirmation of securities owned as of
September 30, 1996 by correspondence with the custodian
and brokers; and where confirmations were not received
from brokers, we performed other auditing procedures.
An audit also includes assessing the accounting
principles used and significant estimates made by
management, as well as evaluating the overall financial
statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements and
financial highlights referred to above present fairly,
in all material respects, the financial position of
Oppenheimer Global Emerging Growth Fund as of September
30, 1996, the results of its operations for the year
then ended, the changes in its net assets for each of
the years in the two year period then ended, and the
financial highlights for each of the years in the five
year period then ended, in conformity with generally
accepted accounting principles.
KPMG PEAT MARWICK LLP
Denver, Colorado
October 21, 1996
20 Oppenheimer Global Emerging Growth Fund
<PAGE>
FEDERAL INCOME TAX INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
In early 1997 shareholders will receive information
regarding all dividends and distributions paid to them
by the Fund during calendar year 1996. Regulations of
the U.S. Treasury Department require the Fund to report
this information to the Internal Revenue Service.
The foregoing information is presented to
assist shareholders in reporting distributions received
from the Fund to the Internal Revenue Service. Because
of the complexity of the federal regulations which may
affect your individual tax return and the many
variations in state and local tax regulations, we
recommend that you consult your tax adviser for
specific guidance.
21 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 Evans, Vice President
Jay 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
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INVESTMENT ADVISER OppenheimerFunds, Inc.
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DISTRIBUTOR OppenheimerFunds Distributor, Inc.
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TRANSFER AND SHAREHOLDER OppenheimerFunds Services
SERVICING AGENT
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CUSTODIAN OF The Bank of New York
PORTFOLIO SECURITIES
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INDEPENDENT AUDITORS KPMG Peat Marwick LLP
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LEGAL COUNSEL Gordon Altman Butowsky Weitzen Shalov & Wein
This is a copy of a report to shareholders of
Oppenheimer Global Emerging Growth Fund. This report
must be preceded or accompanied by a Prospectus of
Oppenheimer Global Emerging Growth Fund. For material
information concerning the Fund, see the Prospectus.
Shares of Oppenheimer funds are not deposits or
obligations of any bank, are not guaranteed by any
bank, and are not insured by the FDIC or any other
agency, and involve investment risks, including
possible loss of the principal amount invested.
22 Oppenheimer Global Emerging Growth Fund
<PAGE>
OPPENHEIMERFUNDS FAMILY
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OppenheimerFunds offers over 50 funds designed to fit
virtually every investment goal. Whether you're
investing for retirement, your children's education or
tax-free income, we have the funds to help you seek
your objective.
When you invest with OppenheimerFunds, you can
feel comfortable knowing that you are investing with a
respected financial institution with over 35 years of
experience in helping people just like you reach their
financial goals. And you're investing with a leader in
global, growth stock and flexible fixed-income
investments--with over 3 million shareholder accounts
and more than $55 billion under OppenheimerFunds'
management and that of our affiliates.
At OppenheimerFunds we don't charge a fee to
exchange shares. And you can exchange shares easily by
mail or by telephone.(1) For more information on
Oppenheimer funds, please contact your financial
adviser or call us at 1-800-525-7048 for a prospectus.
You may also write us at the address shown on the back
cover. As always, please read the prospectus carefully
before you invest.
<TABLE>
<CAPTION>
<S> <C> <C>
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STOCK FUNDS Global Emerging Growth Fund Growth Fund
Enterprise Fund(2) Global Fund
International Growth Fund Quest Global Value Fund
Discovery Fund Disciplined Value Fund
Quest Small Cap Value Fund Oppenheimer Fund
Gold & Special Minerals Fund Value Stock Fund
Target Fund Quest Value Fund
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STOCK & BOND FUNDS Main Street Income & Growth Fund Equity Income Fund
Quest Opportunity Value Fund Disciplined Allocation Fund
Total Return Fund Asset Allocation Fund
Quest Growth & Income Value Fund Strategic Income & Growth Fund
Global Growth & Income Fund Bond Fund for Growth
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BOND FUNDS International Bond Fund Bond Fund
High Yield Fund U.S. Government Trust
Champion Income Fund Limited-Term Government Fund
Strategic Income Fund
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MUNICIPAL FUNDS California Municipal Fund(3) Insured Municipal Fund
Florida Municipal Fund(3) Intermediate Municipal Fund
New Jersey Municipal Fund(3)
New York Municipal Fund(3) ROCHESTER DIVISION
Pennsylvania Municipal Fund(3) Rochester Fund Municipals
Municipal Bond Fund Limited Term New York Municipal Fund
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MONEY MARKET FUNDS(4) Money Market Fund Cash Reserves
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LIFESPAN Growth Fund Income Fund
Balanced Fund
</TABLE>
1. Exchange privileges are subject to change or
termination. Shares may be exchanged only for
shares of the same class of eligible funds.
2.Effective 4/1/96, the Fund is closed to new
investors.
3. Available only to investors in certain states.
4. An investment in money market funds is neither
insured nor guaranteed by the U.S. government and there
can be no assurance that a money market fund will be
able to maintain a stable net asset value of $1.00 per
share.
Oppenheimer funds are distributed by OppenheimerFunds
Distributor, Inc., Two World Trade Center, New York, NY
10048-0203.
(C) Copyright 1996 OppenheimerFunds, Inc. All rights
reserved.
23 Oppenheimer Global Emerging Growth Fund
<PAGE>
INFORMATION
GENERAL INFORMATION
Monday-Friday 8:30 a.m.-9 p.m. ET
Saturday 10 a.m.-2 p.m. ET
1-800-525-7048
TELEPHONE TRANSACTIONS
Monday-Friday 8:30 a.m.-8 p.m. ET
1-800-852-8457
PHONELINK
24 hours a day, automated
information and transactions
1-800-533-3310
TELECOMMUNICATIONS DEVICE
FOR THE DEAF (TDD)
Monday-Friday 8:30 a.m.-8 p.m. ET
1-800-843-4461
OPPENHEIMERFUNDS
INFORMATION HOTLINE
24 hours a day, timely and insightful
messages on the economy and
issues that affect your investments
1-800-835-3104
RA0750.001.0996 November 30, 1996
[PHOTO]
Customer Service Representative
OppenheimerFunds Services
"HOW MAY I HELP YOU?"
As an Oppenheimer fund shareholder, you have some special privileges. Whether
it's automatic investment plans, informative newsletters and hotlines, or ready
account access, you can benefit from services designed to make investing simple.
And when you need help, our Customer Service Representatives are only a
toll-free phone call away. They can provide information about your account and
handle administrative requests. You can reach them at our General Information
number.
When you want to make a transaction, you can do it easily by calling our
toll-free Telephone Transactions number. And, by enrolling in AccountLink, a
convenient service that "links" your Oppenheimer funds accounts and your bank
checking or savings account, you can use the Telephone Transactions number to
make investments.
For added convenience, you can get automated information with
OppenheimerFunds PhoneLink service, available 24 hours a day, 7 days a week.
PhoneLink gives you access to a variety of fund, account, and market
information. Of course, you can always speak with a Customer Service
Representative during the General Information hours shown at the left.
You can count on us whenever you need assistance. That's why the
International Customer Service Association, an independent, nonprofit
organization made up of over 3,200 customer service management professionals
from around the country, honored the Oppenheimer funds' transfer agent,
OppenheimerFunds Services, with their Award of Excellence in 1993.
So call us today--we're here to help.
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Bulk Rate
OppenheimerFunds Distributor, Inc. U.S. Postage
P.O. Box 5270 PAID
Denver, CO 80217-5270 Permit No. 469
Denver, CO
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