<PAGE> 1
[PHOTO]
OPPENHEIMER GLOBAL EMERGING GROWTH FUND
Semiannual Report March 31, 1997
"WE WANT TO
GO AFTER
HIGH
LONG-TERM
GROWTH."
[OPPENHEIMER LOGO]
OPPENHEIMERFUNDS
THE RIGHT WAY TO INVEST
<PAGE> 2
THIS FUND IS FOR PEOPLE WHO WANT TO TAKE PART IN THE TREMENDOUS POTENTIAL FOR
GROWTH OFFERED BY EMERGING BUSINESSES THROUGHOUT THE WORLD.
NEWS
BEAT THE AVERAGE
Total Return for the 1-Year Period Ended 3/31/97:
Oppenheimer Global Emerging Growth Fund
Class A Shares (at net asset value)(1)
9.90%
Lipper Global Small Cap Average for 27 Funds for the 1-Year Period Ended
3/31/97(3)
6.25%
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 returns for the six months ended 3/31/97 were 0.62% for Class A shares,
0.24% for Class B shares and 0.24% for Class C shares, without deducting sales
charges.(1)
Your Fund's average annual total returns for Class A shares for the 1-
and 5-year periods ended 3/31/97 and since inception on 12/30/87 were 3.58%,
(5.48)% and 8.05%, respectively. For Class B shares, average annual total
returns for the 1-year period ended 3/31/97 and since inception on 11/1/95 were
4.06% and 10.71%, respectively. For Class C shares, average annual total
returns for the 1-year period ended 3/31/97 and since inception on 11/1/95 were
8.11% and 13.44%, respectively.(2)
Total returns include change in share price and reinvestment of dividends and
capital gains distributions in a hypothetical investment for the periods shown.
IN REVIEWING PERFORMANCE AND RANKINGS, PLEASE REMEMBER THAT PAST PERFORMANCE
DOES NOT GUARANTEE FUTURE RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST.
1. Includes change in net asset value per share without deducting any sales
charges. Such performance is not annualized and would have been lower if sales
charges were taken into account.
2. Class A returns include the current maximum initial sales charge of 5.75%.
Class B returns include the applicable contingent deferred sales charge of 5%
(1 year) and 4% (since inception). Class C returns include the 1% contingent
deferred sales charge for the 1-year result. An explanation of the different
total returns is in the Fund's prospectus. Class B and Class C shares are
subject to an annual 0.75% asset-based sales charge.
3. Source: Lipper Analytical Services, 3/31/97. The average is shown for
comparative purposes only. Funds included in the index may have different
investment policies and risks than the Fund. Oppenheimer Global Emerging Growth
Fund is characterized by Lipper as a global small cap fund. Lipper performance
is based on total return and does not take sales charges into account.
2 Oppenheimer Global Emerging Growth Fund
<PAGE> 3
[PHOTO]
Bridget A. Macaskill
President
Oppenheimer
Global Emerging
Growth Fund
DEAR SHAREHOLDER,
After six years of expansion, the U.S. economy has continued to demonstrate
steady growth in a low-inflation environment. One of the major reasons has been
the appreciation of the U.S. dollar. We believe that political and financial
turmoil in Japan, led by problems in the Japanese real estate and banking
markets, has shifted investor psychology in favor of the dollar. In addition,
perceptions of domestic political stability, fueled by the re-election of
President Clinton and the status quo Congressional elections, have encouraged
foreign investment in the United States, increasing demand for the dollar and
raising its value relative to foreign currencies.
In a stable domestic environment, one benefit of an appreciating U.S.
dollar is the increased spending power of the American consumer. An
appreciating dollar buys more of a foreign currency, lowering the relative cost
of foreign goods and services and encouraging Americans to purchase more of
them. In turn, the increased exports to the United States should stimulate
growth in these foreign economies. This overseas growth is extremely important
for the long-term prosperity of the U.S. economy, as we rely on these countries
to be in a strong enough economic position to purchase our goods and services,
thereby stimulating our growth. In essence, an appreciating dollar allows the
United States to bolster overseas economic growth in the expectation that these
economies will help us to maintain our own strong domestic growth in the
future.
We received mixed signals from foreign economies during the six-month
period ended March 31, 1997. On the positive side, lower interest rates and
strengthening exports could ignite a strong growth cycle in Europe. In
addition, Latin America is beginning to benefit from years of political reform,
privatization and deregulation aimed at shifting their economies toward the
U.S. capitalist model. Argentina's growth is the fastest, stemming from the
most extensive reforms. We are also looking to Brazil, the most populous
country in Latin America, to spur economic development both at home and with
South American neighbors such as Peru and Chile. On the other hand, with the
exception of Hong Kong, Asia's economic growth, dominated by a recession in
Japan, has been disappointing.
The combination of a strong U.S. economy and accelerating earnings
growth overseas makes a compelling case for funds investing in both domestic
and foreign securities. 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. We believe that by diversifying investments
throughout the world, investors can be well-positioned to participate in any
economic environment.
Your portfolio managers discuss the outlook for your Fund on the
following pages. Thank you for your confidence in OppenheimerFunds, The Right
Way to Invest. We look forward to helping you reach your investment goals in
the future.
/s/ BRIDGET A. MACASKILL
Bridget A. Macaskill
April 21, 1997
3 Oppenheimer Global Emerging Growth Fund
<PAGE> 4
Q + A
[PHOTO] [PHOTO]
AN INTERVIEW WITH YOUR FUND'S MANAGERS.
(Q) WHAT INVESTMENTS MADE POSITIVE CONTRIBUTIONS TO PERFORMANCE?
HOW HAS THE FUND PERFORMED?
Disappointing growth across the U.S. small-cap sector dampened Oppenheimer
Global Emerging Growth Fund's performance for the period. However, our strong
stock selection in the emerging markets of Latin America and the developed
markets of Europe buoyed the Fund's return significantly. For the six-month
period ending March 31, 1997, the Fund's Class A shares returned 0.62%, without
deducting sales charges.(1)
WHAT INVESTMENTS MADE POSITIVE CONTRIBUTIONS TO PERFORMANCE?
The Fund's top holding was also one of its best performers. Due in part to a
take-over bid, this Indonesian computer hardware retailer was up 50% for the
period. Another outstanding performer this period was a luxury German car
manufacturer. The company benefited from increased sales, attributable to the
introduction of a popular new product. In addition, the depreciation of the
German mark against the U.S. dollar made the company's products less expensive
in the United States and bolstered export sales.
The Fund had several top-performing holdings in the oil and gas
offshore services sector. We purchased these holdings inexpensively as the
industry emerged from a 15-year slowdown. Massive industry restructuring and
the development of new technologies for finding and extracting oil have changed
the economics of the industry and provided the Fund with some strong
performance.(2)
DID ANY INVESTMENTS NOT PERFORM AS YOU'D EXPECTED?
Although the overall U.S. market grew at a healthy pace, small-capitalization
companies did not. A pronounced market preference for large,
[PHOTO]
1. Includes change in net asset value per share without deducting any sales
charges. Such performance is not annualized and would have been lower if sales
charges were taken into account.
2. The Fund's portfolio is subject to change.
4 Oppenheimer Global Emerging Growth Fund
<PAGE> 5
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) THE FUND HAD SEVERAL TOP-PERFORMING HOLDINGS IN THE OIL AND GAS OFFSHORE
SERVICES SECTOR.
stable, liquid issues emerged in the United States in 1996 and endured
throughout the period. Our investments in healthcare also underperformed due
to individual earnings disappointments and, early in the period, because of
pre-election jitters about the future of Medicare and Medicaid.
WHAT AREAS ARE YOU CURRENTLY TARGETING?
We continue to selectively seek small domestic companies with positive earnings
potential. Valuations in much of the domestic small-cap sector are relatively
low, and the potential for strong appreciation is great. We expect to see
stronger economic growth in Europe driven in part by depreciating European
currencies. Furthermore, Brazil, politically stable for the first time in many
years, is poised for an economic recovery that could drive economic growth
throughout Latin America.
We remain committed to the technology sector and are looking for
well-positioned emerging software and hardware companies that are usually found
in sophisticated markets like the U.S. and Western Europe. Within the
healthcare sector, we are seeking smaller drug companies and medical equipment
companies driven by new technologies. We also remain invested in oil services
companies and expect them to do well in the coming year.
5 Oppenheimer Global Emerging Growth Fund
<PAGE> 6
STATEMENT OF INVESTMENTS March 31, 1997 (Unaudited)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS--96.9%
- ------------------------------------------------------------------------------------------------------------------------------
BASIC MATERIALS--2.1%
- ------------------------------------------------------------------------------------------------------------------------------
CHEMICALS--0.7%
Saes Getters SpA 120,000 $ 1,179,679
- ------------------------------------------------------------------------------------------------------------------------------
METALS--1.4%
Cia de Minas Buenaventura SA, Sponsored ADR 102,500 2,203,750
- ------------------------------------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS--24.4%
- ------------------------------------------------------------------------------------------------------------------------------
AUTOS & HOUSING--7.7%
Ciadea SA 219,997 979,110
------------------------------------------------------------------------------------------------------------------
Diamond Home Services, Inc.(1) 20,000 357,500
------------------------------------------------------------------------------------------------------------------
IRSA Inversiones y Representaciones SA 257,201 964,621
------------------------------------------------------------------------------------------------------------------
IRSA Inversiones y Representaciones SA, Sponsored GDR 700 26,075
------------------------------------------------------------------------------------------------------------------
Mahindra & Mahindra Ltd., GDR(2) 140,683 1,653,025
------------------------------------------------------------------------------------------------------------------
OEA, Inc. 20,000 835,000
------------------------------------------------------------------------------------------------------------------
Orbital Engine Corp. Ltd.(1) 1,100,000 870,853
------------------------------------------------------------------------------------------------------------------
Porsche AG, Preference 4,500 5,165,153
------------------------------------------------------------------------------------------------------------------
Solidere, GDR(1) 50,000 587,500
------------------------------------------------------------------------------------------------------------------
Team Rental Group, Inc.(1) 20,000 420,000
------------------------------------------------------------------------------------------------------------------
Thai Stanley Electric Co. Ltd. 150,000 355,149
------------
12,213,986
- ------------------------------------------------------------------------------------------------------------------------------
LEISURE & ENTERTAINMENT--5.7%
AAPC Ltd. 1,000,000 603,561
------------------------------------------------------------------------------------------------------------------
Applebee's International, Inc. 30,000 723,750
------------------------------------------------------------------------------------------------------------------
Casa Ole' Restaurants, Inc.(1) 53,500 478,156
------------------------------------------------------------------------------------------------------------------
Cinar Films, Inc., Cl. B(1) 60,000 1,470,000
------------------------------------------------------------------------------------------------------------------
CKE Restaurants, Inc. 49,600 1,097,400
------------------------------------------------------------------------------------------------------------------
Coach USA, Inc.(1) 30,000 870,000
------------------------------------------------------------------------------------------------------------------
Lusomundo SGPS SA(1) 200,000 1,728,659
------------------------------------------------------------------------------------------------------------------
Metromedia International Group, Inc.(1) 65,000 564,687
------------------------------------------------------------------------------------------------------------------
Signature Resorts, Inc.(1) 20,000 470,000
------------------------------------------------------------------------------------------------------------------
Tiemco Ltd. 22,000 1,048,380
------------
9,054,593
- ------------------------------------------------------------------------------------------------------------------------------
MEDIA--2.0%
Bemrose Corp. plc 150,000 1,075,462
------------------------------------------------------------------------------------------------------------------
Grupo Radio Centro SA de CV, Sponsored ADR 131,000 1,129,875
------------------------------------------------------------------------------------------------------------------
NRJ SA 6,500 891,534
------------
3,096,871
- ------------------------------------------------------------------------------------------------------------------------------
RETAIL: GENERAL--3.8%
Galeries Lafayette(1) 4,201 1,630,094
------------------------------------------------------------------------------------------------------------------
PT Matahari Putra Prima 800,000 1,166,181
------------------------------------------------------------------------------------------------------------------
PT Ramayana Lestari Sentosa(1) 835,000 1,947,522
------------------------------------------------------------------------------------------------------------------
Wolverine World Wide, Inc. 36,000 1,314,000
------------
6,057,797
</TABLE>
6 Oppenheimer Global Emerging Growth Fund
<PAGE> 7
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
RETAIL: SPECIALTY--5.2%
Central Garden & Pet Co.(1) 30,000 $ 543,750
-----------------------------------------------------------------------------------------------------------------
Giordano International Ltd. 1,000,000 606,528
-----------------------------------------------------------------------------------------------------------------
Linens 'N Things, Inc.(1) 20,000 467,500
-----------------------------------------------------------------------------------------------------------------
Moebel Walther AG, Preference 40,000 2,157,766
-----------------------------------------------------------------------------------------------------------------
Party City Corp.(1) 50,000 781,250
-----------------------------------------------------------------------------------------------------------------
Petco Animal Supplies, Inc.(1) 30,000 705,000
-----------------------------------------------------------------------------------------------------------------
RDO Equipment Co., Cl. A(1) 50,000 875,000
-----------------------------------------------------------------------------------------------------------------
Ryohin Keikaku Co. Ltd. 13,000 845,246
------------------------------------------------------------------------------------------------------------------
Wolford AG 12,000 1,348,973
------------
8,331,013
- -----------------------------------------------------------------------------------------------------------------------------
CONSUMER NON-CYCLICALS--22.4%
- -----------------------------------------------------------------------------------------------------------------------------
BEVERAGES--3.6%
Al-Ahram Beverages Co., GDR(1)(2) 30,000 583,500
-----------------------------------------------------------------------------------------------------------------
Hellenic Bottling Co., SA 40,000 1,299,279
-----------------------------------------------------------------------------------------------------------------
Panamerican Beverages, Inc., Cl. A 20,900 1,120,762
-----------------------------------------------------------------------------------------------------------------
Remy Cointreau 81,428 2,120,875
-----------------------------------------------------------------------------------------------------------------
Serm Suk Public Co. Ltd. 31,000 632,531
------------
5,756,947
- -----------------------------------------------------------------------------------------------------------------------------
FOOD--3.8%
Cresud SA, Sponsored ADR(1) 80,000 1,500,000
-----------------------------------------------------------------------------------------------------------------
Disco SA, Sponsored ADR(1) 52,700 1,719,338
-----------------------------------------------------------------------------------------------------------------
Hokuto Corp. 39,000 1,212,745
-----------------------------------------------------------------------------------------------------------------
Molinos Rio de la Plata SA, Cl. B 437,499 1,618,944
------------
6,051,027
- -----------------------------------------------------------------------------------------------------------------------------
HEALTHCARE/DRUGS--9.7%
Alpha-Beta Technology, Inc.(1) 40,000 425,000
-----------------------------------------------------------------------------------------------------------------
Appligene Oncor SA(1) 60,000 596,962
-----------------------------------------------------------------------------------------------------------------
Biocompatibles International plc(1) 204,865 4,070,757
-----------------------------------------------------------------------------------------------------------------
Dura Pharmaceuticals, Inc.(1) 20,000 715,000
-----------------------------------------------------------------------------------------------------------------
Incyte Pharmaceuticals, Inc.(1) 15,000 780,000
-----------------------------------------------------------------------------------------------------------------
Marseille-Kliniken AG 105,000 2,297,122
-----------------------------------------------------------------------------------------------------------------
Norland Medical Systems, Inc.(1) 50,000 325,000
-----------------------------------------------------------------------------------------------------------------
Oxford Molecular Group plc(1) 250,000 1,671,575
-----------------------------------------------------------------------------------------------------------------
Parexel International Corp.(1) 20,000 460,000
-----------------------------------------------------------------------------------------------------------------
Rohto Pharmaceutical Co. 60,000 542,767
-----------------------------------------------------------------------------------------------------------------
SangStat Medical Corp.(1) 40,000 1,085,000
-----------------------------------------------------------------------------------------------------------------
Teikoku Hormone Manufacturing Co. Ltd. 50,000 537,113
-----------------------------------------------------------------------------------------------------------------
Tiger Medicals Ltd. 493,000 590,109
-----------------------------------------------------------------------------------------------------------------
Torii Pharmaceutical Co. Ltd. 70,000 1,317,341
------------
15,413,746
</TABLE>
7 Oppenheimer Global Emerging Growth Fund
<PAGE> 8
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
HEALTHCARE/SUPPLIES &
SERVICES--4.7%
AmeriSource Health Corp., Cl. A(1) 30,000 $ 1,312,500
--------------------------------------------------------------------------------------------------------------
Capstone Pharmacy Services, Inc.(1) 60,000 660,000
--------------------------------------------------------------------------------------------------------------
Gulf South Medical Supply, Inc.(1) 35,000 678,125
--------------------------------------------------------------------------------------------------------------
Henry Schein, Inc.(1) 10,500 304,500
--------------------------------------------------------------------------------------------------------------
Nichii Gakkan Co. 27,000 1,179,791
--------------------------------------------------------------------------------------------------------------
OccuSystems, Inc.(1) 25,000 562,500
--------------------------------------------------------------------------------------------------------------
Omnicare, Inc. 15,000 352,500
--------------------------------------------------------------------------------------------------------------
Pediatrix Medical Group, Inc.(1) 20,000 657,500
--------------------------------------------------------------------------------------------------------------
Rural/Metro Corp.(1) 4,700 143,350
--------------------------------------------------------------------------------------------------------------
Serologicals Corp.(1) 35,000 525,000
--------------------------------------------------------------------------------------------------------------
Superior Consultant Holdings Corp.(1) 35,000 621,250
--------------------------------------------------------------------------------------------------------------
Total Renal Care Holdings, Inc.(1) 16,000 486,000
------------
7,483,016
- --------------------------------------------------------------------------------------------------------------------------
HOUSEHOLD GOODS--0.6%
Srithai Superware Co. Ltd. 175,000 875,841
- --------------------------------------------------------------------------------------------------------------------------
ENERGY--4.8%
- ----------------------------------------------------------------------------------------------------------------------------
ENERGY SERVICES &
PRODUCERS--3.1%
Cie Generale de Geophysique SA(1) 27,500 2,477,125
--------------------------------------------------------------------------------------------------------------
Smedvig AS, Series B(1) 100,000 2,425,003
------------
4,902,128
- --------------------------------------------------------------------------------------------------------------------------
OIL-INTEGRATED--1.7%
Expro International Group plc 340,000 2,730,239
- --------------------------------------------------------------------------------------------------------------------------
FINANCIAL--9.2%
- --------------------------------------------------------------------------------------------------------------------------
BANKS--0.0%
- --------------------------------------------------------------------------------------------------------------------------
Banco Frances del Rio de la Plata SA, Sponsored ADR 805 24,150
- --------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL--5.3%
Administradora de Fondos de Pensiones Provida SA, Sponsored ADR 1,800 37,575
--------------------------------------------------------------------------------------------------------------
Credicorp Ltd. 47,000 1,098,625
--------------------------------------------------------------------------------------------------------------
Egypt Investment Co. 96,500 1,495,750
--------------------------------------------------------------------------------------------------------------
First Russian Frontiers Trust plc(1) 62,223 1,241,497
-------------------------------------------------------------------------------------------------------------
FIRSTPLUS Financial Group, Inc.(1) 12,000 361,500
--------------------------------------------------------------------------------------------------------------
Industrial Credit & Investment Corp. of India Ltd. (The), GDR(1)(2) 92,900 998,675
--------------------------------------------------------------------------------------------------------------
Manhattan Card Co. Ltd. 2,500,000 863,012
--------------------------------------------------------------------------------------------------------------
Van Der Hoop Effektenbank NV 145,000 1,229,101
--------------------------------------------------------------------------------------------------------------
Wing Hang Bank Ltd. 250,000 1,096,912
------------
8,422,647
- --------------------------------------------------------------------------------------------------------------------------
INSURANCE--3.9%
CapMAC Holdings, Inc. 30,000 798,750
--------------------------------------------------------------------------------------------------------------
Ockham Holdings plc 1,200,000 1,583,080
--------------------------------------------------------------------------------------------------------------
Reinsurance Australia Corp. Ltd. 1,138,843 3,826,908
------------
6,208,738
</TABLE>
8 Oppenheimer Global Emerging Growth Fund
<PAGE> 9
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL--16.1%
- ------------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--0.1%
Crompton Greaves Ltd., GDR(1) 70,000 $ 225,750
- ------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL MATERIALS--0.6%
HI Cement Corp.(2) 2,592,000 983,120
- ------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL SERVICES--11.6%
Affiliated Computer Services, Inc., Cl. A(1) 20,000 457,500
------------------------------------------------------------------------------------------------------------
BAU Holdings AF, Preference 12,000 705,145
------------------------------------------------------------------------------------------------------------
Boskalis Westminster 117,000 2,332,813
------------------------------------------------------------------------------------------------------------
BTG plc(1) 250,000 2,775,716
------------------------------------------------------------------------------------------------------------
Daisytek International Corp.(1) 23,500 734,375
------------------------------------------------------------------------------------------------------------
DecisionOne Holdings Corp.(1) 40,000 600,000
------------------------------------------------------------------------------------------------------------
Fugro NV 100,000 2,132,468
------------------------------------------------------------------------------------------------------------
ICTS International NV(1) 70,000 564,375
------------------------------------------------------------------------------------------------------------
May & Speh, Inc.(1) 50,000 418,750
------------------------------------------------------------------------------------------------------------
MRC Allied Industries, Inc.(1) 12,500,000 1,706,806
------------------------------------------------------------------------------------------------------------
PT Citra Marga Nusaphala Persada 2,331,000 2,087,318
------------------------------------------------------------------------------------------------------------
Serco Group plc 200,000 2,261,542
------------------------------------------------------------------------------------------------------------
Service Experts, Inc.(1) 16,700 359,050
------------------------------------------------------------------------------------------------------------
VBH Holding AG 70,000 1,267,088
------------
18,402,946
- ------------------------------------------------------------------------------------------------------------------------
MANUFACTURING--2.4%
Chicago Miniature Lamp, Inc.(1) 16,000 314,000
------------------------------------------------------------------------------------------------------------
Powerscreen International plc 150,000 1,510,563
------------------------------------------------------------------------------------------------------------
PRI Automation, Inc.(1) 15,000 716,250
------------------------------------------------------------------------------------------------------------
U.S. Filter Corp.(1) 40,000 1,235,000
------------
3,775,813
- ------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION--1.4%
Guangshen Railway Co. Ltd., Sponsored ADR(1) 41,200 901,250
------------------------------------------------------------------------------------------------------------
Koninklijke Van Ommeren NV 30,000 1,311,468
------------
2,212,718
- ------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY--15.8%
- ------------------------------------------------------------------------------------------------------------------------
COMPUTER HARDWARE--3.9%
Eidos plc(1) 102,500 1,406,806
------------------------------------------------------------------------------------------------------------
Frontec AB, B Shares(1) 75,000 756,603
------------------------------------------------------------------------------------------------------------
Imagineer Co. Ltd. 20,400 650,836
------------------------------------------------------------------------------------------------------------
PT Multipolar Corp.(3) 2,699,200 3,372,594
------------
6,186,839
- ------------------------------------------------------------------------------------------------------------------------
COMPUTER SOFTWARE--6.6%
Clarify, Inc.(1) 20,000 482,500
------------------------------------------------------------------------------------------------------------
Engineering Animation, Inc.(1) 44,300 1,029,975
------------------------------------------------------------------------------------------------------------
Forte Software, Inc.(1) 15,000 345,000
------------------------------------------------------------------------------------------------------------
Global DirectMail Corp.(1) 20,000 347,500
------------------------------------------------------------------------------------------------------------
Integrated Measurement Systems, Inc.(1) 40,000 600,000
------------------------------------------------------------------------------------------------------------
McAfee Associates, Inc.(1) 15,000 663,750
------------------------------------------------------------------------------------------------------------
Misys plc 181,833 3,702,497
</TABLE>
9 Oppenheimer Global Emerging Growth Fund
<PAGE> 10
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMPUTER SOFTWARE
(CONTINUED)
National Instruments Corp.(1) 30,000 $ 967,500
-----------------------------------------------------------------------------------------------------------------------
Rational Software Corp.(1) 15,000 309,375
-----------------------------------------------------------------------------------------------------------------------
Red Brick Systems, Inc.(1) 30,000 420,000
-----------------------------------------------------------------------------------------------------------------------
Remedy Corp.(1) 10,000 382,500
-----------------------------------------------------------------------------------------------------------------------
Versant Object Technology Corp.(1) 30,000 266,250
-----------------------------------------------------------------------------------------------------------------------
Viasoft, Inc.(1) 10,000 325,000
-----------------------------------------------------------------------------------------------------------------------
Visio Corp.(1) 17,300 674,700
------------
10,516,547
- -----------------------------------------------------------------------------------------------------------------------------------
ELECTRONICS--3.5%
Austria Mikro Systeme International AG 22,700 2,128,439
-----------------------------------------------------------------------------------------------------------------------
BENCHMARQ Microelectronics, Inc.(1) 25,000 312,500
-----------------------------------------------------------------------------------------------------------------------
ESS Technology, Inc.(1) 25,000 606,250
-----------------------------------------------------------------------------------------------------------------------
Gold Peak Industries (Holdings) Ltd. 1,600,000 1,032,388
-----------------------------------------------------------------------------------------------------------------------
Pittway Corp., Cl. A 20,000 970,000
-----------------------------------------------------------------------------------------------------------------------
SDL, Inc.(1) 25,000 428,125
------------
5,477,702
- -----------------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS-TECHNOLOGY--1.8%
LCI International, Inc.(1) 35,000 586,250
-----------------------------------------------------------------------------------------------------------------------
Tel-Save Holdings, Inc.(1) 40,000 580,000
-----------------------------------------------------------------------------------------------------------------------
Telecel Comunicacoes Pessoais SA(1) 20,000 1,639,246
------------
2,805,496
- -----------------------------------------------------------------------------------------------------------------------------------
UTILITIES--2.1%
- -----------------------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES--1.6%
Beijing Datang Power Generation Co.(1) 2,250,000 900,113
-----------------------------------------------------------------------------------------------------------------------
First Philippine Holdings Corp., B Shares 875,000 1,609,612
------------
2,509,725
- -----------------------------------------------------------------------------------------------------------------------------------
TELEPHONE UTILITIES--0.5%
McLeod, Inc.(1) 15,000 266,250
-----------------------------------------------------------------------------------------------------------------------
West TeleServices Corp.(1) 40,000 515,000
------------
781,250
------------
Total Common Stocks (Cost $134,900,059) 153,884,074
===================================================================================================================================
PREFERRED STOCKS--2.3%
- -----------------------------------------------------------------------------------------------------------------------------------
Marschollek, Lautenschlaeger und Partner-VO, Non-vtg. Preferred Stock
(Cost $952,550) 17,000 3,607,066
UNITS
===================================================================================================================================
RIGHTS, WARRANTS AND CERTIFICATES--0.1%
- -----------------------------------------------------------------------------------------------------------------------------------
First Russian Frontiers plc Wts., Exp. 12/01 12,444 125,418
-----------------------------------------------------------------------------------------------------------------------
PerSeptive Biosystems, Inc., Cl. A Wts., Exp. 12/97 40,110 --
------------
Total Rights, Warrants and Certificates (Cost $324,620) 125,418
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $136,177,229) 99.3% 157,616,558
- -----------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 0.7 1,151,037
--------- ------------
NET ASSETS 100.0% $158,767,595
========= ============
</TABLE>
10 Oppenheimer Global Emerging Growth Fund
<PAGE> 11
<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 $37,669,819 23.9%
- ---------------------------------------------------------------------------------------------------------------------------
Great Britain 24,155,152 15.3
- ----------------------------------------------------------------------------------------------------------------------------
Germany 14,494,196 9.2
- ----------------------------------------------------------------------------------------------------------------------------
Indonesia 8,573,614 5.4
- ----------------------------------------------------------------------------------------------------------------------------
France 7,716,589 4.9
- ----------------------------------------------------------------------------------------------------------------------------
The Netherlands 7,570,225 4.8
- ----------------------------------------------------------------------------------------------------------------------------
Japan 7,334,219 4.7
- ----------------------------------------------------------------------------------------------------------------------------
Argentina 6,832,237 4.3
- ----------------------------------------------------------------------------------------------------------------------------
Australia 5,301,322 3.4
- ----------------------------------------------------------------------------------------------------------------------------
Hong Kong 4,498,953 2.9
- ----------------------------------------------------------------------------------------------------------------------------
Philippines 4,299,538 2.7
- ----------------------------------------------------------------------------------------------------------------------------
Austria 4,182,558 2.7
- ----------------------------------------------------------------------------------------------------------------------------
Portugal 3,367,905 2.1
- ----------------------------------------------------------------------------------------------------------------------------
Peru 3,302,375 2.1
- ----------------------------------------------------------------------------------------------------------------------------
India 2,877,450 1.8
- ----------------------------------------------------------------------------------------------------------------------------
Norway 2,425,003 1.5
- ----------------------------------------------------------------------------------------------------------------------------
Mexico 2,250,638 1.4
- ----------------------------------------------------------------------------------------------------------------------------
Egypt 2,079,250 1.3
- ----------------------------------------------------------------------------------------------------------------------------
Thailand 1,863,520 1.2
- ----------------------------------------------------------------------------------------------------------------------------
Canada 1,470,000 0.9
- ----------------------------------------------------------------------------------------------------------------------------
Greece 1,299,279 0.8
- ----------------------------------------------------------------------------------------------------------------------------
Italy 1,179,679 0.8
- ----------------------------------------------------------------------------------------------------------------------------
China 901,250 0.6
- ----------------------------------------------------------------------------------------------------------------------------
Sweden 756,603 0.5
- ----------------------------------------------------------------------------------------------------------------------------
Singapore 590,109 0.4
- ----------------------------------------------------------------------------------------------------------------------------
Lebanon 587,500 0.4
- ----------------------------------------------------------------------------------------------------------------------------
Chile 37,575 0.0
------------ -----
Total $157,616,558 100.0%
============ =====
</TABLE>
1. Non-income producing security.
2. Represents securities sold under Rule 144A, which are exempt from
registration under the Securities Act of 1933, as amended. These securities
have been determined to be liquid under guidelines established by the Board of
Trustees. These securities amount to $4,218,320 or 2.66% of the Fund's net
assets, at March 31, 1997.
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 March 31, 1997.
There were no affiliate securities held as of March 31, 1997. Transactions
during the period in which the issuer was an affiliate are as follows:
<TABLE>
<CAPTION>
BALANCE BALANCE
SEPTEMBER 30, 1996 GROSS ADDITIONS GROSS REDUCTIONS MARCH 31, 1997
------------------------ ------------------ ----------------------- ----------------------
SHARES COST SHARES COST SHARES COST SHARES COST
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
PT Multipolar Corp. 6,349,200 $3,947,959 -- $ -- 3,650,000 $2,388,350 2,699,200 $1,559,609
<CAPTION>
DIVIDEND
INCOME
- -------------------------------------
<S> <C>
PT Multipolar Corp. $36,952
</TABLE>
See accompanying Notes to Financial Statements.
11 Oppenheimer Global Emerging Growth Fund
<PAGE> 12
STATEMENT OF ASSETS AND LIABILITIES March 31, 1997 (Unaudited)
<TABLE>
===========================================================================================================================
<S> <C>
Assets
Investments, at value (cost $136,177,229)--see accompanying statement $157,616,558
---------------------------------------------------------------------------------------------------------------
Unrealized appreciation on forward foreign currency exchange contracts--Note 5 221,349
---------------------------------------------------------------------------------------------------------------
Receivables:
Investments sold 3,171,217
Dividends 275,866
Shares of beneficial interest sold 240,607
---------------------------------------------------------------------------------------------------------------
Other 9,895
------------
Total assets 161,535,492
===========================================================================================================================
LIABILITIES
Bank overdraft 1,544,351
---------------------------------------------------------------------------------------------------------------
Payables and other liabilities:
Shares of beneficial interest redeemed 667,854
Shareholder reports 131,707
Investments purchased 103,288
Distribution and service plan fees 100,263
Trustees' fees--Note 1 100,118
Custodian fees 58,702
Transfer and shareholder servicing agent fees 45,488
Other 16,126
------------
Total liabilities 2,767,897
===========================================================================================================================
NET ASSETS $158,767,595
============
===========================================================================================================================
COMPOSITION OF
NET ASSETS
Paid-in capital $159,796,450
---------------------------------------------------------------------------------------------------------------
Accumulated net investment loss (1,211,478)
---------------------------------------------------------------------------------------------------------------
Accumulated net realized loss on investment transactions (21,478,027)
---------------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation
of assets and liabilities denominated in foreign currencies 21,660,650
------------
Net assets $158,767,595
============
===========================================================================================================================
NET ASSET VALUE
PER SHARE
Class A Shares:
Net asset value and redemption price per share (based on net assets
of $142,511,065 and 6,756,133 shares of beneficial interest outstanding) $21.09
Maximum offering price per share (net asset value plus sales charge
of 5.75% of offering price) $22.38
---------------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price and offering price per share (based on
net assets of $12,333,384 and 592,108 shares of beneficial interest outstanding) $20.83
---------------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price and offering price per share (based on
net assets of $3,923,146 and 188,232 shares of beneficial interest outstanding) $20.84
</TABLE>
See accompanying Notes to Financial Statements.
12 Oppenheimer Global Emerging Growth Fund
<PAGE> 13
STATEMENT OF OPERATIONS For the Six Months Ended March 31, 1997 (Unaudited)
<TABLE>
===========================================================================================================================
<S> <C>
INVESTMENT INCOME
Dividends:
Unaffiliated companies (net of foreign withholding taxes of $38,642) $ 386,064
Affiliated companies (net of foreign withholding taxes of $6,521) 36,952
---------------------------------------------------------------------------------------------------------------
Interest 74,914
------------
Total income 497,930
===========================================================================================================================
Expenses
Management fees--Note 4 688,745
---------------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 292,027
---------------------------------------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 180,949
Class B 57,977
Class C 18,703
---------------------------------------------------------------------------------------------------------------
Shareholder reports 85,955
---------------------------------------------------------------------------------------------------------------
Custodian fees and expenses 82,803
---------------------------------------------------------------------------------------------------------------
Legal and auditing fees 13,419
---------------------------------------------------------------------------------------------------------------
Trustees' fees and expenses--Note 1 10,790
---------------------------------------------------------------------------------------------------------------
Insurance expenses 4,324
---------------------------------------------------------------------------------------------------------------
Registration and filing fees:
Class B 446
Class C 194
---------------------------------------------------------------------------------------------------------------
Other 6,397
------------
Total expenses 1,442,729
===========================================================================================================================
NET INVESTMENT LOSS (944,799)
===========================================================================================================================
REALIZED AND UNREALIZED
GAIN (LOSS)
Net realized gain (loss) on:
Investments:
Unaffiliated companies (1,675,282)
Affiliated companies 1,393,832
Foreign currency transactions (892,646)
------------
Net realized loss (1,174,096)
---------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments 6,092,853
Translation of assets and liabilities denominated in foreign currencies (2,839,233)
------------
Net change 3,253,620
------------
Net realized and unrealized gain 2,079,524
===========================================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $1,134,725
============
</TABLE>
See accompanying Notes to Financial Statements.
13 Oppenheimer Global Emerging Growth Fund
<PAGE> 14
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 1997 SEPTEMBER 30,
(UNAUDITED) 1996
============================================================================================================================
<S> <C> <C>
OPERATIONS
Net investment loss $ (944,799) $ (235,115)
-----------------------------------------------------------------------------------------------------------------
Net realized gain (loss) (1,174,096) 21,126,323
-----------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation 3,253,620 (333,043)
------------- -------------
Net increase in net assets resulting from operations 1,134,725 20,558,165
=============================================================================================================================
BENEFICIAL INTEREST
TRANSACTIONS
Net increase (decrease) in net assets resulting from beneficial
interest transactions--Note 2:
Class A (12,687,539) (6,010,385)
Class B 1,472,364 10,625,564
Class C 641,688 3,210,027
=============================================================================================================================
NET ASSETS
Total increase (decrease) (9,438,762) 28,383,371
-----------------------------------------------------------------------------------------------------------------
Beginning of period 168,206,357 139,822,986
------------- -------------
End of period (including accumulated net investment losses
of $1,211,478 and $266,679, respectively) $158,767,595 $168,206,357
============= =============
See accompanying Notes to Financial Statements.
</TABLE>
14 Oppenheimer Global Emerging Growth Fund
<PAGE> 15
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A
-----------------------------------------------------------------
SIX MONTHS
ENDED
MARCH 31,
1997 YEAR ENDED SEPTEMBER 30,
(UNAUDITED) 1996 1995 1994 1993 1992
==============================================================================================================
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $20.96 $18.03 $19.35 $21.64 $20.25 $26.90
- --------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.11) (.03) .01 (.01) (.10) (.17)
Net realized and unrealized
gain (loss) .24 2.96 (1.33) (2.11) 1.69 (6.47)
------ ------ ------ ------ ------ ------
Total income (loss) from
investment operations .13 2.93 (1.32) (2.12) 1.59 (6.64)
- --------------------------------------------------------------------------------------------------------------
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 $21.09 $20.96 $18.03 $19.35 $21.64 $20.25
======== ======== ======== ======== ======== ========
==============================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(2) 0.62% 16.25% (6.82)% (9.91)% 7.79% (24.70)%
==============================================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $142,511 $154,082 $139,823 $163,295 $199,697 $129,634
- --------------------------------------------------------------------------------------------------------------
Average net assets
(in thousands) $152,293 $142,045 $148,378 $190,984 $194,184 $166,144
- --------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) (1.15)%(3) (0.15)% 0.07% (1.05)% (0.80)% (0.71)%
Expenses 1.66%(3) 1.87% 1.76% 1.77% 1.59% 1.39%
- --------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(4) 36.3% 125.9% 160.3% 54.7% 41.0% 2.6%
Average brokerage
commission rate(5) $0.0008 $0.0030 -- -- -- --
<CAPTION>
CLASS B CLASS C
------ ------
SIX MONTHS SIX MONTHS
ENDED PERIOD ENDED PERIOD
MARCH 31, ENDED MARCH 31, ENDED
1997 SEPT. 30, 1997 SEPT. 30,
(UNAUDITED) 1996(1) (UNAUDITED) 1996(1)
====================================================================================================
<S> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $20.78 $17.43 $20.79 $17.43
- ----------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.18) (.01) (.18) (.01)
Net realized and unrealized
gain (loss) .23 3.36 .23 3.37
------ ------ ------ ------
Total income (loss) from
investment operations .05 3.35 .05 3.36
- ----------------------------------------------------------------------------------------------------
Dividends and distributions to
shareholders:
Dividends from net investment
income -- -- -- --
Distributions in excess of
net realized gain -- -- -- --
------ ------ ------ ------
Total dividends and distributions
to shareholders -- -- -- --
- ----------------------------------------------------------------------------------------------------
Net asset value, end of period $20.83 $20.78 $20.84 $20.79
====== ====== ====== ======
====================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(2) 0.24% 19.22% 0.24% 19.28%
====================================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $12,333 $10,855 $3,923 $3,269
- ----------------------------------------------------------------------------------------------------
Average net assets
(in thousands) $11,651 $4,675 $3,759 $1,599
- ----------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) (1.92)%(3) (0.42)%(3) (1.92)%(3) (0.45)%(3)
Expenses 2.41%(3) 2.56%(3) 2.42%(3) 2.54%(3)
- ----------------------------------------------------------------------------------------------------
Portfolio turnover rate(4) 36.3% 125.9% 36.3% 125.9%
Average brokerage
commission rate(5) $0.0008 $0.0030 $0.0008 $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 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, 1997 were $59,572,600 and
$65,452,492, 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> 16
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 aggressively seek capital appreciation
through investments in equity securities of emerging growth
companies in the U.S. and foreign countries. 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 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.
--------------------------------------------------------------------
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, 1997, a
reduction of $2,085 was made for the Fund's projected benefit
obligations and payments of $4,525 were made to retired trustees,
resulting in an accumulated liability of $94,047 at March 31, 1997.
16 Oppenheimer Global Emerging Growth Fund
<PAGE> 17
================================================================================
1. SIGNIFICANT
ACCOUNTING POLICIES
(CONTINUED)
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 was recorded by the Fund.
--------------------------------------------------------------------
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
BENEFICIAL INTEREST
The Fund has authorized an unlimited number of no par value shares
of beneficial interest. Transactions in shares of beneficial
interest were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED MARCH 31, 1997 YEAR ENDED SEPTEMBER 30, 1996(1)
-------------------------------- ----------------------------------
SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 1,222,809 $25,774,292 3,277,006 $65,681,449
Redeemed (1,818,377) (38,461,831) (3,681,446) (71,691,834)
--------- ---------- --------- -----------
Net decrease (595,568) $(12,687,539) (404,440) $(6,010,385)
========= ============ ========== ============
------------------------------------------------------------------------------------------------
Class B:
Sold 249,901 $5,248,894 722,783 $14,601,668
Redeemed (180,289) (3,776,530) (200,287) (3,976,104)
-------- ----------- -------- -----------
Net increase 69,612 $1,472,364 522,496 $10,625,564
========= =========== ======== ===========
------------------------------------------------------------------------------------------------
Class C:
Sold 102,177 $2,142,599 244,882 $4,972,628
Redeemed (71,228) (1,500,911) (87,599) (1,762,601)
-------- --------- -------- ----------
Net increase 30,949 $641,688 157,283 $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.
================================================================================
3. UNREALIZED GAINS AND
LOSSES ON INVESTMENTS
At March 31, 1997, net unrealized appreciation on investments of
$21,439,329 was composed of gross appreciation of $34,477,376, and
gross depreciation of $13,038,047.
================================================================================
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,
0.75% on 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.
For the six months ended March 31, 1997, commissions
(sales charges paid by investors) on sales of Class A shares
totaled $213,648, of which $65,767 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 $142,100 and $9,270, of which $15,087
was paid to an affiliated broker/dealer for Class B. During the six
months ended March 31, 1997, OFDI received contingent deferred
sales charges of $9,466 and $1,654, 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.
17 Oppenheimer Global Emerging Growth Fund
<PAGE> 18
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
================================================================================
4. MANAGEMENT FEES
AND OTHER TRANSACTIONS
WITH AFFILIATES
(CONTINUED)
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 six months ended
March 31, 1997, OFDI paid $10,159 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 Class C shares, as compensation for sales commissions paid from
its own resources at the time of sale and associated financing
costs. 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 six months ended
March 31, 1997, OFDI retained $53,496 and $15,976, respectively, as
compensation for Class B and Class C sales commissions and service
fee advances, as well as 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. At
March 31, 1997, OFDI had incurred unreimbursed expenses of $396,717
for Class B and $47,914 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, 1997, the Fund had outstanding forward contracts to
purchase foreign currencies as follows:
<TABLE>
<CAPTION>
CONTRACT AMOUNT VALUATION AS OF UNREALIZED
EXPIRATION DATE (000S) MARCH 31, 1997 APPRECIATION
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Japanese Yen (JPY) 4/7/97 343,940JPY $2,781,969 $221,349
========== ========
</TABLE>
18 Oppenheimer Global Emerging Growth Fund
<PAGE> 19
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
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
================================================================================
INVESTMENT ADVISER
OppenheimerFunds, Inc.
================================================================================
DISTRIBUTOR
OppenheimerFunds Distributor, Inc.
================================================================================
TRANSFER AND SHAREHOLDER
SERVICING AGENT
OppenheimerFunds Services
================================================================================
CUSTODIAN OF
PORTFOLIO SECURITIES
The Bank of New York
================================================================================
INDEPENDENT AUDITORS
KPMG Peat Marwick LLP
================================================================================
LEGAL COUNSEL
Gordon Altman Butowsky Weitzen Shalov & Wein
The financial statements included herein have been taken from the
records of the Fund without examination by the independent
auditors. This is a copy of a report to shareholders of Oppenheimer
Global Emerging Growth Fund. This report must be preceded or
accompanied by a Prospectus of Oppenheimer Global Emerging Growth
Fund. For material information concerning the Fund, see the
Prospectus.
Shares of Oppenheimer funds are not deposits or obligations of any
bank, are not guaranteed by any bank, are not insured by the FDIC
or any other agency, and involve investment risks, including
possible loss of the principal amount invested.
19 Oppenheimer Global Emerging Growth Fund
<PAGE> 20
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
RS0750.001.0397 May 31, 1997
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Denver, CO 80217-5270
- --------------------
Bulk Rate
U.S. Postage
PAID
Permit No. 469
Denver, CO
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