<PAGE>
<PAGE>
Dear Shareholder:
We are pleased to report that, once again, Oppenheimer World Bond Fund reported
positive returns. For the six-month period ending April 30, 1997, the total
return at net asset value was 3.59%, and its dividend return was 9.11%.(1) The
Fund's success during the period can be attributed to all three of its
investment allocations: foreign fixed income securities, U.S. government
securities and lower-rated, high yield domestic corporate bonds.
Specifically, we credit the Fund's positive performance to three factors. First,
the Fund was broadly invested in emerging market countries. With the exception
of a slight drop during the fourth quarter of 1996, emerging markets have
generally continued to deliver strong performance results. The second factor was
being well-positioned to take advantage of that fourth-quarter decline and
further increase our exposure to emerging markets when the time was right. And
third, because the U.S. dollar was strong during much of the period, we were
able to protect the portfolio's assets by using currency hedges to seek to
balance our European exposure.
Investment Breakdown:
Oppenheimer World Bond
Fund as of 4/30/97(2)
[GRAPH]
Foreign government obligations: 34.1%
U.S. government obligations: 31.9%
U.S. corporate bonds & notes: 21.0%
Structured notes: 10.7%
Short-term securities: 1.6%
Equity securities: 0.7%
During the past six months, we shifted a portion of our assets out of Brady
bonds (U.S. dollar-denominated bonds of developing countries)--from Latin
America, in particular--into foreign currency instruments with shorter
maturities. We made this move because Brady bonds had reported above-market
returns last year and we were concerned how long this performance level could
continue. In addition, we diversified among local currency instruments from many
countries, such as Mexico, Poland and Russia. Of course, international
investments, especially emerging markets investments, entail greater expenses
and risks, such as adverse currency fluctuations, but by diversifying our
investments across many countries and industries, we seek to mitigate those
risks.
Within the developed market sector, we increased our exposure to
Australia and Canada. Both of these countries are major exporters of
commodities. If worldwide growth, inflation and commodity prices rise in the
near future, our holdings in these countries should perform well.
<PAGE>
<PAGE>
On the other hand, we've limited our investments in Japan due to current
difficulties within their banking system and government bond market. With banks
supporting and buying government bonds, the supply has decreased. This shortage
has caused bond prices to rise, and yields to remain low.
We are also refraining from generally investing in Hong Kong until after the
handover to China in June of this year. Because Hong Kong is a major financial
center for the region, we are remaining cautious in our approach to investments
there, choosing to wait and closely monitoring any financial implications that
may accompany this transition.
Looking ahead, we believe the outlook for global bond investing remains very
positive. While we expect that this year's returns may be slightly less than
last year's--due to anticipated lower returns in emerging markets--we believe
the global bonds should continue to outperform many other asset classes in the
coming months.
Thank you for your confidence in OppenheimerFunds, The Right Way to Invest. We
look forward to helping you meet your financial goals in the future.
Sincerely,
/s/ Bridget A. Macaskill
Bridget A. Macaskill
President
Oppenheimer World Bond Fund
May 21, 1997
1. Total return is based on the change in net asset value per share from
10/31/96 to 4/30/97, without deducting any brokerage costs. Dividend return is
determined by annualizing the April 1997 dividend of $0.056 and dividing by the
closing market price on the New York Stock Exchange of $7.375 per share on
4/25/97 (payment date). Past performance does not guarantee future results.
2. Portfolio holdings are subject to change.
<PAGE>
<PAGE>
STATEMENT OF INVESTMENTS April 30, 1997 (Unaudited)
Oppenheimer World Bond Fund
<TABLE>
<CAPTION>
Market Value
Face Amount(1) See Note 1
-------------- ------------
<S> <C> <C>
MORTGAGE-BACKED OBLIGATIONS -- 19.1%
GOVERNMENT AGENCY -- 16.3%
FHLMC/FNMA/Sponsored -- 4.1%
Federal Home Loan Mortgage Corp.:
Collateralized Mtg. Obligations, Gtd. Multiclass Mtg. Participation
Certificates, Series 1343, Cl. LA, 8%, 8/15/22....................... $ 229,000 $ 234,885
Interest-Only Stripped Mtg.-Backed Security, Series 177, Cl. B,
13.086%-13.793%, 7/1/26 (2).......................................... 3,095,814 1,129,005
Mtg.-Backed Certificates, 11.50%, 1/1/18................................ 90,320 100,937
Mtg.-Backed Certificates, 13%, 5/1/19................................... 430,285 501,988
Federal National Mortgage Assn., Principal-Only Stripped Mtg.-Backed
Security, Series 267, Cl. 1, 5.72% 10/1/24 (3)....................... 356,983 254,127
------------
2,220,942
------------
GNMA/Guaranteed -- 12.2%
Government National Mortgage Assn.:
11%, 10/20/19........................................................... 142,097 159,992
7%, 1/15/24-5/15/24..................................................... 3,398,022 3,306,889
7.50%, 5/15/24-1/15/26.................................................. 585,999 581,635
7.50%, 5/1/27 (4)....................................................... 2,500,000 2,478,125
Collateralized Mtg. Obligations, Gtd. Real Estate Mtg. Investment
Conduit Pass-Through Certificates, Series 1994-5, Cl. PQ, 7.493%,
7/16/24.............................................................. 150,000 148,470
------------
6,675,111
------------
PRIVATE -- 2.8%
Commercial -- 2.0%
Asset Securitization Corp., Commercial Mtg. Pass-Through Certificates,
Series 1996-MD6, Cl. A-5, 7.225%, 11/13/26 (5).......................... 200,000 196,312
Commercial Mortgage Acceptance Corp., Interest-Only
Stripped Mtg.-Backed Security, Series 1996-C1, Cl. X-2, 0.981%,
12/25/20 (2)(6)......................................................... 6,208,300 217,291
Morgan Stanley Capital I, Inc., Commercial Mtg. Pass-Through Certificates,
Series 1996-C1, Cl. E, 7.51%, 2/15/28 (5)(6)............................ 553,342 464,116
Resolution Trust Corp., Commercial Mtg. Pass-Through Certificates, Series
1995-C1, Cl. F, 6.90%, 2/25/27.......................................... 173,465 153,408
Structured Asset Securities Corp., Multiclass Pass-Through Certificates,
Series 1995-C4, Cl. E, 8.723%, 6/25/26 (5)(6)........................... 100,000 94,906
------------
1,126,033
------------
Multi-Family -- 0.4%
Mortgage Capital Funding, Inc., Multifamily Mtg. Pass-Through
Certificates, Series 1996-MC1, Cl. G, 7.15%, 6/15/06 (6)................ 250,000 219,844
------------
</TABLE>
3
<PAGE>
<PAGE>
STATEMENT OF INVESTMENTS April 30, 1997 (Unaudited) (Continued)
Oppenheimer World Bond Fund
<TABLE>
<CAPTION>
Market Value
Face Amount(1) See Note 1
-------------- ------------
<S> <C> <C>
Residential -- 0.4%
First Chicago/Lennar Trust 1, Commercial Mtg. Pass-Through Certificates,
Series 1997-CHL1, 8.11%, 4/30/39........................................ $ 200,000 $ 201,500
------------
Total Mortgage-Backed Obligations (Cost $10,091,235)...................... 10,443,430
------------
U.S. GOVERNMENT OBLIGATIONS -- 13.2%
U.S. Treasury Nts.:
6%, 8/31/97............................................................. 1,557,000 1,558,460
6.25%, 2/15/03 (7)(8)................................................... 1,932,000 1,898,192
6.375%, 8/15/02......................................................... 1,331,000 1,319,355
7.75%, 1/31/00 (8)...................................................... 2,385,000 2,464,005
------------
Total U.S. Government Obligations (Cost $7,268,099)....................... 7,240,012
------------
FOREIGN GOVERNMENT OBLIGATIONS -- 29.9%
Argentina -- 0.4%
Argentina (Republic of) Bonds, Bonos de Consolidacion de Deudas, Series I,
3.308%, 4/1/01 (5)(9) (ARP)............................................. 277,014 249,630
------------
Australia -- 2.5%
South Australia Government Finance Authority Bonds, 10%,
1/15/03 (AUD)........................................................... 955,000 828,044
Western Australia Treasury Corp.:
Bonds, 9%, Series 99, 4/15/99 (AUD)..................................... 370,000 302,237
Gtd. Bonds, 12%, 8/1/01 (AUD)........................................... 255,000 233,614
------------
1,363,895
------------
Brazil -- 0.3%
Brazil (Federal Republic of) Multi-Year Discount Facility Agreement Trust
Certificates, Series REGS, 6.563%, 9/15/07 (5)(10)...................... 194,086 172,736
------------
Canada -- 3.0%
Canada (Government of) Debs., 10.50%, 7/1/00 (CAD)........................ 1,980,000 1,619,379
------------
Costa Rica -- 0.5%
Central Bank of Costa Rica Interest Claim Bonds, Series A, 6.312%, 5/21/05
(5)..................................................................... 261,742 248,655
------------
Ecuador -- 1.8%
Ecuador (Republic of):
Bonds, 10.75%, 4/25/04 (5)(10).......................................... 300,000 304,125
Disc. Bonds, 6.437%, 2/28/25 (5)........................................ 1,000,000 670,050
------------
974,175
------------
</TABLE>
4
<PAGE>
<PAGE>
STATEMENT OF INVESTMENTS April 30, 1997 (Unaudited) (Continued)
Oppenheimer World Bond Fund
<TABLE>
<CAPTION>
Market Value
Face Amount(1) See Note 1
-------------- ------------
<S> <C> <C>
Finland -- 1.6%
Finland (Republic of) Treasury Bills, Zero Coupon, 2.888%,
5/15/97 (11) (FIM)...................................................... 4,570,000 $ 877,927
------------
Great Britain -- 1.5%
United Kingdom Treasury Nts., 12.50%, 11/21/05 (GBP)...................... 400,000 818,603
------------
Hong Kong -- 0.2%
Hong Kong & Shanghai Bank Banker's Acceptance, Zero Coupon, 7.027%, 7/3/97
(11) (MYR).............................................................. 230,000 90,559
------------
Indonesia -- 0.4%
PT Hutama Karya Medium-Term Nts., Zero Coupon, 15.867%, 7/25/97 (11)
(IDR)................................................................... 500,000,000 198,905
------------
Italy -- 2.5%
Italy (Republic of):
Sr. Unsec. Unsub. Global Bonds, 0.633%, 7/26/99 (5) (JPY)............... 128,000,000 1,013,934
Treasury Bonds, Buoni del Tesoro Poliennali, 10.50%,
11/1/98 (ITL)........................................................ 560,000,000 343,908
------------
1,357,842
------------
Jordan -- 0.4%
Hashemite (Kingdom of) Jordan Disc. Bonds, 6.50%, 12/23/23 (5)............ 300,000 238,500
------------
Mexico -- 4.6%
Bonos de la Tesoreria de la Federacion, Zero Coupon:
25.785%, 11/6/97 (11) (MXP)............................................. 2,487,500 279,168
24.602%, 12/4/97 (11) (MXP)............................................. 2,475,440 273,425
22.896%, 2/4/98 (11) (MXP).............................................. 1,443,500 154,015
29.172%, 7/3/97 (11) (MXP).............................................. 2,400,000 291,107
28.589%, 7/31/97 (11) (MXP)............................................. 1,400,000 167,075
27.799%, 9/4/97 (11) (MXP).............................................. 2,435,000 284,390
Petroleos Mexicanos Debs., 14.50%, 3/31/06 (GBP).......................... 559,000 1,074,836
------------
2,524,016
------------
New Zealand -- 1.5%
New Zealand (Government of) Index Linked Bonds, 4.60%,
2/15/16 (NZD)........................................................... 1,235,000 798,924
------------
Norway -- 0.5%
Norway (Government of) Bills, 3.50%, 5/20/97 (NOK)........................ 2,000,000 280,868
------------
Panama -- 0.5%
Panama (Government of) Past Due Interest Debs., 6.098%, 7/17/16 (5)....... 304,218 258,016
------------
</TABLE>
5
<PAGE>
<PAGE>
STATEMENT OF INVESTMENTS April 30, 1997 (Unaudited) (Continued)
Oppenheimer World Bond Fund
<TABLE>
<CAPTION>
Market Value
Face Amount(1) See Note 1
-------------- ------------
<S> <C> <C>
Peru -- 0.5%
Peru (Republic of) Past Due Interest Bonds, 4%, 3/7/17 (5)................ $ 440,000 $ 264,550
------------
Poland -- 1.8%
Poland (Republic of) Bonds:
12%, 6/12/01 (PLZ)...................................................... 1,260,000 321,109
16%, 10/12/98 (PLZ)..................................................... 750,000 221,395
16%, 2/12/99 (PLZ)...................................................... 750,000 221,300
21%, 6/5/97 (PLZ)....................................................... 770,000 243,166
------------
1,006,970
------------
Portugal -- 1.0%
Portugal (Republic of) Bonds, Obrigicion do tes Medio Prazo, 11.875%,
2/23/00 (PTE)........................................................... 85,070,000 565,517
------------
Romania -- 1.0%
Renel R.A. Nts., 8.254%, 2/21/02 (5)(6)................................... 300,000 299,250
Romanian Commercial Bank Bonds, 9.125%, 3/10/00 (6)....................... 260,000 256,750
------------
556,000
------------
South Africa -- 0.7%
South Africa (Republic of) Bonds, Series 162, 12.50%,
1/15/02 (ZAR)........................................................... 1,824,000 380,438
------------
Spain -- 1.7%
Spain (Kingdom of) Gtd. Bonds, Bonos y Obligacion del Estado, 12.25%,
3/25/00 (ESP)........................................................... 115,000,000 923,070
------------
Venezuela -- 1.0%
Venezuela (Republic of) New Money Bonds, Series B, 6.50%, 12/18/05 (5).... 250,000 221,875
Venezuela Synthetic Sovereign Sec. Bonds, 10.125%,
12/29/03 (DEM).......................................................... 585,000 344,582
------------
566,457
------------
Total Foreign Government Obligations (Cost $16,723,547)................... 16,335,632
------------
LOAN PARTICIPATIONS -- 4.7%
Algeria (Republic of) Reprofiled Debt Loan Participation, Tranche A,
6.977%, 9/4/06 (5)...................................................... 1,740,000 1,389,825
AO Rostelecom Loan Facility Nts., 9.50%, 2/15/00 (4)...................... 250,000 250,000
Colombia (Republic of) Concorde Loan Participation, 8.625%, 1/31/98
(5)(6).................................................................. 47,500 46,669
Jamaica (Government of) 1990 Refinancing Agreement Nts.:
Tranche A, 6.625%, 10/16/00 (5)(6)...................................... 116,666 112,583
Tranche B, 6.312%, 11/15/04 (5)(6)...................................... 385,000 348,425
</TABLE>
6
<PAGE>
<PAGE>
STATEMENT OF INVESTMENTS April 30, 1997 (Unaudited) (Continued)
Oppenheimer World Bond Fund
<TABLE>
<CAPTION>
Market Value
Face Amount(1) See Note 1
-------------- ------------
<S> <C> <C>
LOAN PARTICIPATIONS (CONTINUED)
Morocco (Kingdom of) Loan Participation Agreement,
Tranche B, 6.375%, 1/1/04 (5)........................................... $ 82,352 $ 81,118
Trinidad & Tobago Loan Participation Agreement, Tranche A, 1.625%, 9/30/00
(5)(6) (JPY)............................................................ 42,000,000 304,468
United Mexican States, Combined Facility 3, Loan Participation Agreement,
Tranche A, 6.463%, 9/20/97 (5)(6)....................................... 14,320 13,317
------------
Total Loan Participations (Cost $2,555,146)............................... 2,546,405
------------
CORPORATE BONDS AND NOTES -- 21.2%
BASIC INDUSTRY -- 2.8%
Chemicals -- 0.6%
ISP Holdings, Inc., 9% Sr. Nts., 10/15/03................................. 90,000 91,350
NL Industries, Inc., 11.75% Sr. Sec. Nts., 10/15/03....................... 150,000 160,875
Sterling Chemicals, Inc., 11.75% Sr. Unsec. Sub. Nts., 8/15/06............ 60,000 63,450
Terra Industries, Inc., 10.50% Sr. Nts., Series B, 6/15/05................ 20,000 21,150
------------
336,825
------------
Containers -- 0.1%
Consumers International, Inc., 10.25% Sr. Sec. Nts., 4/1/05 (10).......... 50,000 52,125
------------
Metals/Mining -- 0.2%
Royal Oak Mines, Inc., 11% Sr. Sub. Nts., 8/15/06......................... 100,000 100,000
------------
Paper -- 1.7%
APP International Finance Co. BV, 11.75% Gtd. Sec. Nts., 10/1/05.......... 100,000 105,000
Asia Pulp & Paper International Finance Co., Zero Coupon Asian Currency
Nts.:
14.712%, 12/8/97 (11) (IDR)............................................. 200,000,000 75,446
15.789%, 5/15/97 (10)(11) (IDR)......................................... 700,000,000 286,975
Buckeye Cellulose Corp., 9.25% Sr. Sub. Nts., 9/15/08..................... 100,000 101,000
Indah Kiat International Finance Co. BV:
11.375% Gtd. Sec. Nts., 6/15/99......................................... 100,000 105,625
12.50% Gtd. Sec. Nts., 6/15/06.......................................... 250,000 274,375
------------
948,421
------------
Steel -- 0.2%
AK Steel Corp., 9.125% Sr. Nts., 12/15/06................................. 100,000 99,625
------------
CONSUMER RELATED -- 3.0%
Consumer Products -- 0.5%
Coleman Holdings, Inc., Zero Coupon Sr. Sec. Disc. Nts.,
Series B, 11.623%, 5/27/98 (11)......................................... 75,000 67,687
E & S Holdings Corp., 10.375% Sr. Sub. Nts., 10/1/06...................... 100,000 103,250
</TABLE>
7
<PAGE>
<PAGE>
STATEMENT OF INVESTMENTS April 30, 1997 (Unaudited) (Continued)
Oppenheimer World Bond Fund
<TABLE>
<CAPTION>
Market Value
Face Amount(1) See Note 1
-------------- ------------
<S> <C> <C>
Consumer Products (Continued)
Revlon Worldwide Corp., Zero Coupon Sr. Sec. Disc. Nts., 10.75%, 3/15/01
(10)(11)................................................................ $ 50,000 $ 33,000
Samsonite Corp., 11.125% Sr. Sub. Nts., 7/15/05 (6)....................... 61,000 67,710
------------
271,647
------------
Food/Beverages/Tobacco -- 0.2%
CFP Holdings, Inc., 11.625% Gtd. Sr. Nts., 1/15/04 (6).................... 45,000 45,900
Foodbrands America, Inc., 10.75% Sr. Sub. Nts., 5/15/06................... 50,000 57,000
------------
102,900
------------
Healthcare -- 1.0%
Genesis Health Ventures, Inc., 9.25% Sr. Sub. Nts., 10/1/06............... 150,000 149,625
Magellan Health Services, Inc., 11.25% Sr. Sub. Nts., Series A, 4/15/04... 150,000 165,937
Tenet Healthcare Corp., 8.625% Sr. Sub. Nts., 1/15/07..................... 200,000 199,000
------------
514,562
------------
Hotel/Gaming -- 0.4%
Boyd Gaming Corp., 9.25% Sr. Nts., 10/1/03................................ 25,000 24,281
Capital Gaming International, Inc., Promissory Nts., 8/1/95 (12).......... 2,000 --
Grand Casinos, Inc., 10.125% Gtd. First Mtg. Nts., 12/1/03................ 50,000 51,125
Grupo Posadas SA de CV, 10.375% Bonds, 2/13/02 (10)....................... 125,000 125,898
Rio Hotel & Casino, Inc., 9.50% Gtd. Sr. Sub. Nts., 4/15/07 (10).......... 25,000 24,625
------------
225,929
------------
Restaurants -- 0.0%
Ameriking, Inc., 10.75% Sr. Nts., 12/1/06................................. 20,000 20,700
------------
Textile/Apparel -- 0.9%
CMI Industries, Inc., 9.50% Sr. Sub. Nts., 10/1/03........................ 25,000 24,375
Consoltex Group, Inc., 11% Gtd. Sr. Sub. Nts., Series B, 10/1/03.......... 100,000 102,500
GFSI, Inc., 9.625% Sr. Sub. Nts., 3/1/07 (10)............................. 50,000 49,250
Polysindo International Finance Co. BV, 11.375% Gtd. Sec. Nts., 6/15/06... 25,000 26,531
Tultex Corp., 9.625% Sr. Nts., 4/15/07 (10)............................... 50,000 51,562
WestPoint Stevens, Inc., 9.375% Sr. Sub. Debs., 12/15/05.................. 150,000 154,125
William Carter Co., 10.375% Sr. Sub. Nts., 12/1/06 (10)................... 100,000 101,000
------------
509,343
------------
</TABLE>
8
<PAGE>
<PAGE>
STATEMENT OF INVESTMENTS April 30, 1997 (Unaudited) (Continued)
Oppenheimer World Bond Fund
<TABLE>
<CAPTION>
Market Value
Face Amount(1) See Note 1
-------------- ------------
<S> <C> <C>
ENERGY -- 2.0%
Chesapeake Energy Corp.:
10.50% Sr. Nts., 6/1/02................................................. $ 100,000 $ 109,000
9.125% Sr. Nts., 4/15/06................................................ 50,000 50,750
J. Ray McDermott SA, 9.375% Sr. Sub. Bonds, 7/15/06....................... 25,000 24,250
Mariner Energy, Inc., 10.50% Sr. Sub. Nts., 8/1/06........................ 100,000 100,750
Mesa Operating Co.:
0%/11.625% Gtd. Sr. Sub. Disc. Nts., 7/1/06 (13)........................ 250,000 182,187
10.625% Gtd. Sr. Sub. Nts., 7/1/06...................................... 50,000 54,750
Moran Energy, Inc., 8.75% Cv. Sub. Debs., 1/15/08......................... 200,000 180,896
Panda Global Energy Co., 12.50% Sr. Nts., 4/15/04 (10).................... 50,000 47,500
Petroleum Heat & Power Co., Inc., 9.375% Sub. Debs., 2/1/06 (6)........... 200,000 179,000
TransTexas Gas Corp., 11.50% Gtd. Sr. Sec. Nts., 6/15/02.................. 150,000 167,250
------------
1,096,333
------------
FINANCIAL SERVICES -- 4.7%
Banks & Thrifts -- 1.5%
Banco de Colombia, 5.20% Cv. Jr. Unsec. Sub. Nts., 2/1/99 (6)............. 250,000 231,250
First Nationwide Holdings, Inc., 10.625% Sr. Sub. Nts., 10/1/03........... 150,000 159,000
Ongko International Finance Co. BV, 10.50% Gtd. Nts.,
3/29/04 (10)............................................................ 400,000 405,125
------------
795,375
------------
Diversified Financial -- 2.8%
Amresco, Inc., 10% Sr. Sub. Nts., Series 97-A, 3/15/04.................... 25,000 24,750
Bakrie Investindo, Zero Coupon Promissory Nts., 17.254%, 3/16/98 (11)
(IDR)................................................................... 850,000,000 303,390
Neodata Services, Inc., 12% Sr. Nts., Series B, 5/1/03.................... 100,000 107,000
Olympic Financial Ltd., Units (each unit consists of $1,000 principal
amount of 11.50% sr. nts., 3/15/07 and one warrant to purchase 6.84
shares of common stock) (14)............................................ 25,000 23,625
PT Polysindo Eka Perkasa, Zero Coupon Promissory Nts.:
16.407%, 3/16/98 (11) (IDR)............................................. 650,000,000 232,477
9.39%, 7/14/98 (11)..................................................... 50,000 44,562
Saul (B.F.) Real Estate Investment Trust, 11.625% Sr. Sec. Nts., Series B,
4/1/02.................................................................. 25,000 26,750
Snap Ltd., 11.50% Sec. Bonds, 1/29/09 (DEM)............................... 1,280,000 778,904
------------
1,541,458
------------
</TABLE>
9
<PAGE>
<PAGE>
STATEMENT OF INVESTMENTS April 30, 1997 (Unaudited) (Continued)
Oppenheimer World Bond Fund
<TABLE>
<CAPTION>
Market Value
Face Amount(1) See Note 1
-------------- ------------
<S> <C> <C>
Insurance -- 0.4%
Americredit Corp., 9.25% Sr. Nts., 2/1/04 (10)............................ $ 90,000 $ 85,500
Veritas Holdings, Inc., 9.625% Sr. Nts., 12/15/03 (10).................... 125,000 126,719
------------
212,219
------------
HOUSING RELATED -- 0.4%
Building Materials -- 0.2%
Building Materials Corp. of America, 8.625% Sr. Nts., 12/15/06............ 100,000 98,000
Nortek, Inc., 9.25% Sr. Nts., 3/15/07 (10)................................ 25,000 24,937
------------
122,937
------------
Homebuilders/Real Estate -- 0.2%
NVR, Inc., 11% Gtd. Sr. Nts., 4/15/03..................................... 100,000 104,500
------------
MANUFACTURING -- 1.1%
Automotive -- 0.4%
Collins & Aikman Products Co., 11.50% Gtd. Sr. Sub. Nts., 4/15/06......... 50,000 55,000
Hayes Wheels International, Inc., 11% Sr. Sub. Nts., 7/15/06.............. 50,000 54,188
Lear Corp., 9.50% Sub. Nts., 7/15/06...................................... 125,000 130,625
------------
239,813
------------
Capital Goods -- 0.7%
Consorcio Ecuatoriano Nts., 14%, 5/1/02 (4)(6)............................ 215,000 215,000
Mettler Toledo, Inc., 9.75% Gtd. Sr. Sub. Nts., 10/1/06................... 150,000 155,250
Titan Wheel International, Inc., 8.75% Sr. Sub. Nts., 4/1/07.............. 25,000 24,914
------------
395,164
------------
MEDIA -- 1.3%
Broadcasting -- 0.3%
American Radio Systems Corp., 9% Sr. Sub. Nts., 2/1/06.................... 50,000 49,750
SFX Broadcasting, Inc., 10.75% Sr. Sub. Nts., Series B, 5/15/06........... 100,000 105,000
------------
154,750
------------
Cable Television -- 0.3%
Cablevision Systems Corp., 9.875% Sr. Sub. Nts., 5/15/06.................. 50,000 49,875
EchoStar Satellite Broadcasting Corp., 0%/13.125% Sr. Sec. Disc. Nts.,
3/15/04 (13)............................................................ 50,000 37,125
TCI Satellite Entertainment, Inc., 10.875% Sr. Sub. Nts.,
2/15/07 (10)............................................................ 80,000 76,400
------------
163,400
------------
</TABLE>
10
<PAGE>
<PAGE>
STATEMENT OF INVESTMENTS April 30, 1997 (Unaudited) (Continued)
Oppenheimer World Bond Fund
<TABLE>
<CAPTION>
Market Value
Face Amount(1) See Note 1
-------------- ------------
<S> <C> <C>
Diversified Media -- 0.5%
Katz Media Corp., 10.50% Sr. Sub. Nts., 1/15/07 (10)...................... $ 100,000 $ 94,500
Lamar Advertising Co., 9.625% Sr. Sub. Nts., 12/1/06...................... 100,000 100,000
Universal Outdoor, Inc.:
9.75% Sr. Sub. Nts., 10/15/06........................................... 40,000 39,900
9.75% Sr. Sub. Nts., Series B, 10/15/06 (10)............................ 40,000 39,600
------------
274,000
------------
Publishing/Printing -- 0.2%
Hollinger International Publishing, Inc., 9.25% Gtd. Sr. Sub. Nts.,
3/15/07................................................................. 50,000 49,875
Sun Media Corp., 9.50% Sr. Sub. Nts., 2/15/07 (10)........................ 75,000 73,500
------------
123,375
------------
OTHER -- 1.0%
Conglomerates -- 0.5%
Empresas ICA Sociedad Controladora SA de CV, 5% Cv. Sub. Debs., 3/15/04... 170,000 126,225
Mechala Group Jamaica Ltd., 12.75% Bonds, 12/30/99 (10)................... 125,000 130,625
------------
256,850
------------
Services -- 0.5%
Borg-Warner Security Corp., 9.625% Sr. Sub. Nts., 3/15/07 (10)............ 25,000 24,563
Kindercare Learning Centers, Inc., 9.50% Sr. Sub. Nts.,
2/15/09 (10)............................................................ 50,000 47,563
Protection One Alarm Monitoring, Inc., 0%/13.625% Sr. Disc. Nts., 6/30/05
(13).................................................................... 200,000 195,000
------------
267,126
------------
RETAIL -- 0.6%
Specialty Retailing -- 0.4%
Brylane LP/Brylane Capital Corp., 10% Sr. Sub. Nts., Series B, 9/1/03..... 25,000 26,188
Central Termica Guemes, 12% Bonds, 11/26/01 (6)........................... 126,000 131,670
Eye Care Centers of America, Inc., 12% Sr. Nts., 10/1/03.................. 20,000 21,200
Finlay Fine Jewelry Corp., 10.625% Sr. Nts., 5/1/03....................... 25,000 26,250
------------
205,308
------------
Supermarkets -- 0.2%
Jitney-Jungle Stores of America, Inc., 12% Gtd. Sr. Nts., 3/1/06.......... 50,000 54,375
Ralph's Grocery Co., 10.45% Sr. Nts., 6/15/04............................. 50,000 53,250
------------
107,625
------------
</TABLE>
11
<PAGE>
<PAGE>
STATEMENT OF INVESTMENTS April 30, 1997 (Unaudited) (Continued)
Oppenheimer World Bond Fund
<TABLE>
<CAPTION>
Market Value
Face Amount(1) See Note 1
-------------- ------------
<S> <C> <C>
TECHNOLOGY -- 2.5%
Information Technology -- 1.9%
Celcaribe SA, 0%/13.50% Sr. Sec. Nts., 3/15/04 (6)(13).................... $ 250,000 $ 210,000
Cellular Communications International, Inc., Zero Coupon Sr. Disc. Nts.,
11.817%, 8/15/00 (11)................................................... 100,000 72,000
Cellular, Inc., 0%/11.75% Sr. Sub. Disc. Nts., 9/1/03 (13)................ 150,000 138,750
Dobson Communications Corp., 11.75% Sr. Nts., 4/15/07 (10)................ 100,000 95,500
Dyncorp, Inc., 9.50% Sr. Sub. Nts., 3/1/07 (10)........................... 25,000 24,250
Globalstar LP/Globalstar Capital Corp., Units (each unit consists of
$1,000 principal amount of 11.375% sr. nts., 2/15/04 and one warrant to
purchase 2.0645 ordinary shares) (10)(14)............................... 50,000 49,750
McCaw International Ltd., Units (each unit consists of $1,000 principal
amount of 0%/13% sr. disc. nts., 4/15/07 and one warrant to purchase
0.10616 share of common stock) (10)(13)(14)............................. 25,000 12,438
Pierce Leahy Corp., 11.125% Sr. Sub. Nts., 7/15/06........................ 100,000 109,250
PriCellular Wireless Corp., 0%/12.25% Sr. Sub. Disc. Nts.,
10/1/03 (13)............................................................ 100,000 89,000
Sprint Spectrum LP/Sprint Spectrum Finance Corp., 0%/12.50% Sr. Disc.
Nts., 8/15/06 (13)...................................................... 100,000 69,500
Sprint Spectrum LP/Sprint Spectrum Finance Corp., 11% Sr. Nts., 8/15/06... 25,000 27,375
Tracor, Inc., 8.50% Sr. Sub. Nts., 3/1/07 (10)............................ 75,000 73,500
Unisys Corp., 11.75% Sr. Nts., 10/15/04................................... 25,000 26,438
USA Mobile Communications, Inc. II, 14% Sr. Nts., 11/1/04................. 50,000 51,000
------------
1,048,751
------------
Telecommunications/Technology -- 0.6%
Brooks Fiber Properties, Inc., 0%/11.875% Sr. Disc. Nts.,
11/1/06 (13)............................................................ 50,000 31,250
Diamond Cable Communications plc, 0%/11.75% Sr. Disc. Nts., 12/15/05
(13).................................................................... 100,000 69,500
ICG Holdings, Inc., 0%/12.50% Gtd. Sr. Disc. Nts., 5/1/06 (13)............ 50,000 30,500
MFS Communications Co., Inc., 0%/9.375% Sr. Disc. Nts.,
1/15/04 (13)............................................................ 100,000 90,875
NTL, Inc., 10% Sr. Nts., 2/15/07 (10)..................................... 25,000 24,438
Teleport Communications Group, Inc., 0%/11.125% Sr. Disc. Nts., 7/1/07
(13).................................................................... 50,000 34,625
TeleWest plc, 0%/11% Sr. Disc. Debs., 10/1/07 (13)........................ 100,000 68,125
------------
349,313
------------
</TABLE>
12
<PAGE>
<PAGE>
STATEMENT OF INVESTMENTS April 30, 1997 (Unaudited) (Continued)
Oppenheimer World Bond Fund
<TABLE>
<CAPTION>
Market Value
Face Amount(1) See Note 1
-------------- ------------
<S> <C> <C>
TRANSPORTATION -- 1.0%
Air Transportation -- 0.4%
Continental Airlines, Inc., 9.50% Sr. Unsec. Nts., 12/15/01............... $ 200,000 $ 203,500
------------
Railroads -- 0.2%
Transtar Holdings LP/Transtar Capital Corp., 0%/13.375% Sr. Disc. Nts.,
Series B, 12/15/03 (13)................................................. 100,000 83,000
------------
Trucking -- 0.4%
Tribasa Toll Road Trust, 10.50% Nts., Series 1993-A, 12/1/11 (10)......... 250,000 208,750
------------
UTILITIES -- 0.8%
Electric Utilities -- 0.4%
CalEnergy, Inc., 9.50% Sr. Nts., 9/15/06.................................. 20,000 20,800
Calpine Corp.:
10.50% Sr. Nts., 5/15/06................................................ 80,000 84,800
9.25% Sr. Nts., 2/1/04.................................................. 25,000 25,000
El Paso Electric Co., 9.40% First Mtg. Bonds, Series E, 5/1/11............ 100,000 106,500
------------
237,100
------------
Gas Utilities -- 0.4%
CE Casecnan Water & Energy, Inc., 11.95% Sr. Nts., Series B, 11/15/10..... 200,000 222,250
------------
Total Corporate Bonds and Notes (Cost $11,556,291)........................ 11,594,974
------------
<CAPTION>
Shares
--------------
<S> <C> <C>
COMMON STOCKS -- 0.1%
Air New Zealand Ltd., Cl. B............................................... 24,000 69,307
Finlay Enterprises, Inc. (15)............................................. 333 4,912
------------
Total Common Stocks (Cost $70,763)........................................ 74,219
------------
PREFERRED STOCKS -- 0.6%
Fresenius Medical Care Trust, 9% Preferred Securities..................... 200,000 198,500
SDW Holdings Corp., 15% Cum. Sr. Exchangeable
Preferred (6)(15)....................................................... 3,600 126,000
------------
Total Preferred Stocks (Cost $329,300).................................... 324,500
------------
<CAPTION>
Units
--------------
<S> <C> <C>
RIGHTS, WARRANTS AND CERTIFICATES -- 0.0%
American Telecasting, Inc. Wts., Exp. 6/99................................ 500 406
Capital Gaming International, Inc. Wts., Exp. 2/99 (6).................... 3,538 35
Cellular Communications International, Inc. Wts., Exp. 8/03 (6)........... 100 1,700
</TABLE>
13
<PAGE>
<PAGE>
STATEMENT OF INVESTMENTS April 30, 1997 (Unaudited) (Continued)
Oppenheimer World Bond Fund
<TABLE>
<CAPTION>
Market Value
Units See Note 1
-------------- ------------
<S> <C> <C>
RIGHTS, WARRANTS AND CERTIFICATES (CONTINUED)
ICG Communications, Inc. Wts., Exp. 9/05.................................. 495 $ 2,094
Protection One, Inc. Wts., Exp. 6/05 (6).................................. 640 3,975
------------
Total Rights, Warrants and Certificates (Cost $16,236).................... 8,210
------------
<CAPTION>
Face Amount(1)
--------------
<S> <C> <C>
STRUCTURED INSTRUMENTS -- 10.8%
Bayerische Landesbank (New York Branch) CD, 13.75%, 8/18/97 (indexed to
the cross currency rates of Greek Drachma & Chilean Peso)............... $ 550,000 534,435
Bayerische Landesbank Girozentrale (New York Branch) Deutsche Mark
Currency Protected Yield Curve CD, 6.28%, 7/25/97....................... 250,000 255,837
Business Development Bank of Canada, Goldman Sachs Commodity Index Non
Energy Excess Return Index Linked Commercial Paper, 5.556%, 8/22/97..... 100,000 105,603
Canadian Imperial Bank of Commerce (New York Branch):
Canadian Dollar Three Month Banker's Acceptance Linked Maximum Rate
Nts., 8.66%, 4/13/98................................................. 300,000 299,070
CD, 11.25%, 9/4/97 (indexed to the Russian Federation GKO, Zero Coupon,
8/27/97) (6)......................................................... 100,000 99,309
U.S. Dollar CD Linked to South African Rand, 17%, 1/21/98............... 125,000 131,150
First Boston Corp. (The), Russian GKO Linked Nts., Zero Coupon, 9.394%,
6/30/97 (11)............................................................ 900,000 880,862
ING (U.S.) Capital Holdings Corp., GKO Pass-Through Nts., Zero Coupon,
15.059%, 5/21/97 (11)................................................... 300,000 297,603
ING (U.S.) Financial Holdings Corp.:
Nts., Linked to the Greek Drachma/Swiss Franc Exchange Rate, Zero
Coupon, 14.437%, 12/10/97 (11)....................................... 285,000 257,589
Nts., Linked to the Greek Drachma/Swiss Franc Exchange Rate, Zero
Coupon, 14.829%, 12/4/97 (11)........................................ 250,000 225,225
Korean Won/U.S. Dollar Linked Nts., Zero Coupon, 10.87%, 6/9/97 (11).... 125,000 114,084
South African Rand/U.S. Dollar Linked Nts., Zero Coupon, 16.102%,
2/25/98 (11)......................................................... 150,000 133,965
U.S. Dollar Denominated Pass-Through Nts. Linked to Malaysian Ringgit,
Zero Coupon, 7.119%, 10/14/97 (11)................................... 200,000 193,660
Lehman Brothers Holdings plc, U.S. Dollar Nts. Linked to South African
Rand, 16%, 7/23/97...................................................... 500,000 499,400
Lehman Brothers Holdings, Inc., U.S. Dollar Nts. Linked to Greek
Drachma/Swiss Franc, Zero Coupon:
15.639%, 12/23/97 (11).................................................. 250,000 262,375
15.453%, 12/26/97 (11).................................................. 250,000 262,125
15.499%, 12/30/97 (11).................................................. 250,000 260,625
</TABLE>
14
<PAGE>
<PAGE>
STATEMENT OF INVESTMENTS April 30, 1997 (Unaudited) (Continued)
Oppenheimer World Bond Fund
<TABLE>
<CAPTION>
Market Value
Face Amount(1) See Note 1
-------------- ------------
<S> <C> <C>
STRUCTURED INSTRUMENTS (CONTINUED)
Morgan Guaranty Trust of New York, Japanese Government Bond 193 Currency
Protected Bank Nts., 8.14%, 4/29/98..................................... $ 80,000 $ 87,400
Salomon, Inc., Russian S-Account Credit Linked Nts., Zero Coupon:
12.204%, 7/17/97 (11)................................................... 250,000 243,600
12.152%, 8/7/97 (11).................................................... 160,000 154,720
12.068%, 8/8/97 (11).................................................... 350,000 338,275
Swiss Bank Corp. (New York Branch) CD, 6.05%, 6/20/97 (indexed to the
closing Nikkei 225 Index on 1/23/97, 5 yr. & 3 mos. Japanese Yen Swap
rate & New Zealand Dollar).............................................. 250,000 263,413
------------
Total Structured Instruments (Cost $5,906,020)............................ 5,900,325
------------
</TABLE>
<TABLE>
<CAPTION>
Date Strike Contracts
----- ------------ --------------
<S> <C> <C> <C> <C>
PUT OPTIONS PURCHASED -- 0.0%
U.S. Treasury Bonds, 10-Yr. Futures, 6/97 Put
Opt......................................... 5/97 105.00% 30 1,406
New Zealand Dollar Put Opt.................... 6/97 1.432 NZD 180,000 1,877
New Zealand Dollar Put Opt.................... 6/97 1.44 NZD 632,000 5,170
New Zealand Dollar Put Opt.................... 6/97 1.447 NZD 490,000 3,092
Italy (Republic of) Treasury Bonds, Buoni del
Tesoro Poliennali, 9.50%, 2/1/06 Put Opt.... 7/97 99.96%ITL 769 77
------------
Total Put Options Purchased
(Cost $54,100).............................. 11,622
------------
</TABLE>
<TABLE>
<CAPTION>
Face Amount(1)
--------------
<S> <C> <C>
CERTIFICATES OF DEPOSIT -- 1.2%
Bank Tabugan Negara Negotiable CD, Zero Coupon, 13.151%, 2/3/98 (11)(16)
(IDR).................................................................... $ 589,439,000 220,116
Citibank Malaysia Banker's Acceptance, Zero Coupon Negotiable CD:
7.121%, 5/12/97 (11)(16) (MYR)........................................... 251,000 99,882
7.185%, 5/16/97 (11)(16) (MYR)........................................... 650,000 258,452
Deutsche Bank Malaysia, Zero Coupon Negotiable CD, 6.944%, 7/18/97 (11)(16)
(MYR).................................................................... 239,000 93,859
-----------
Total Certificates of Deposit (Cost $675,493).............................. 672,309
-----------
SHORT-TERM NOTES -- 0.2%
Bakrie Investindo, Zero Coupon Indonesian Commercial Paper, 16.625%,
7/30/97 (11) (IDR) (Cost $105,796)....................................... 263,000,000 104,661
-----------
</TABLE>
15
<PAGE>
<PAGE>
STATEMENT OF INVESTMENTS April 30, 1997 (Unaudited) (Continued)
Oppenheimer World Bond Fund
<TABLE>
<CAPTION>
Market
Value
Face Amount(1) See Note 1
-------------- -----------
<S> <C> <C>
REPURCHASE AGREEMENT -- 0.2%
Repurchase agreement with PaineWebber, Inc., 5.43%, dated 4/30/97, to be
repurchased at $100,015 on 5/1/97, collateralized by U.S. Treasury Nts.,
5.875%-8.25%, 7/15/98-11/15/05, with a value of $86,628 and U.S. Treasury
Bonds, 7.625%, 2/15/25, with a value of $15,688 (Cost $100,000).......... $ 100,000 $ 100,000
-----------
Total Investments, at Value (Cost $55,452,026)............................. 101.2% 55,356,299
Liabilities in Excess of Other Assets...................................... (1.2) (631,969)
-------------- -----------
Net Assets................................................................. 100.0% $54,724,330
-------------- -----------
-------------- -----------
</TABLE>
1. Face amount is reported in U.S. Dollars, except for those denoted in the
following currencies:
ARP -- Argentine Peso JPY -- Japanese Yen
AUD -- Australian Dollar MXP -- Mexican Peso
CAD -- Canadian Dollar MYR -- Malaysian Ringgit
DEM -- German Deutsche Mark NOK -- Norwegian Krone
ESP -- Spanish Peseta NZD -- New Zealand Dollar
FIM -- Finnish Markka PLZ -- Polish Zloty
GBP -- British Pound Sterling PTE -- Portuguese Escudo
IDR -- Indonesian Rupiah ZAR -- South African Rand
ITL -- Italian Lira
2. Interest-Only Strips represent the right to receive the monthly interest
payments on an underlying pool of mortgage loans. These securities typically
decline in price as interest rates decline. Most other fixed income
securities increase in price when interest rates decline. The principal
amount of the underlying pool represents the notional amount on which
current interest is calculated. The price of these securities is typically
more sensitive to changes in prepayment rates than traditional mortgage-
backed securities (for example, GNMA pass-throughs). Interest rates
disclosed represent current yields based upon the current cost basis and
estimated timing and amount of future cash flows.
3. Principal-Only Strips represent the right to receive the monthly principal
payments on an underlying pool of mortgage loans. The value of these
securities generally increases as interest rates decline and prepayment
rates rise. The price of these securities is typically more volatile than
that of coupon-bearing bonds of the same maturity. Interest rates disclosed
represent current yields based upon the current cost basis and estimated
timing of future cash flows.
4. When-issued security to be delivered and settled after April 30, 1997.
5. Represents the current interest rate for a variable rate security.
6. Identifies issues considered to be illiquid or restricted -- See Note 8 of
Notes to Financial Statements.
7. Securities with an aggregate market value of $13,539,692 are held in
collateralized accounts to cover initial margin requirements on open futures
sales contracts. See Note 6 of Notes to Financial Statements.
8. A sufficient amount of securities has been designated to cover outstanding
written call and put options, as follows:
<TABLE>
<CAPTION>
Face/Contracts Expiration Exercise Premium Market Value
Subject to Call Date Price Received See Note 1
----------------- ---------- -------- ------- ------------
<S> <C> <C> <C> <C> <C>
Australia (Commonwealth of) Bonds, 10%, 10/15/07
Call Opt....................................... 170 7/15/97 114.159 % AUD $2,272 $ 1,958
Australia (Commonwealth of) Bonds, 10%, 10/15/07
Put Opt........................................ 100 6/23/97 111.966 % AUD 1,257 483
British Pound Sterling Call Opt.................. 460,000 5/15/97 0.611 GBP 4,186 2,576
Canadian Dollar Put Opt.......................... 205,000 5/27/97 1.375 CAD 596 2,056
Mexican Peso Call Opt............................ 1,100,000 5/8/97 8.017 MXP 7,810 7,733
Mexican Peso Call Opt............................ 150,000 5/12/97 8.043 MXP 1,163 1,485
New Zealand Dollar Call Opt...................... 180,000 6/17/97 1.416 NZD 1,305 344
</TABLE>
16
<PAGE>
<PAGE>
STATEMENT OF INVESTMENTS April 30, 1997 (Unaudited) (Continued)
Oppenheimer World Bond Fund
<TABLE>
<CAPTION>
Face/Contracts Expiration Exercise Premium Market Value
Subject to Call Date Price Received See Note 1
----------------- ---------- -------- ------- ------------
<S> <C> <C> <C> <C> <C>
New Zealand Dollar Call Opt......................... 632,000 6/17/97 1.421NZD $4,456 $ 1,599
New Zealand Dollar Call Opt......................... 490,000 6/17/97 1.432NZD 3,675 1,950
New Zealand (Government of) Bonds, 10%, 3/15/02 Put
Opt............................................... 205 7/15/97 106.639% NZD 1,566 410
South African Rand Call Opt......................... 376,052 5/8/97 4.479ZAR 2,650 2,971
South African Rand Call Opt......................... 500,000 5/22/97 4.65ZAR 17,500 20,000
------- ------------
$48,436 $ 43,565
------- ------------
------- ------------
</TABLE>
9. Interest or dividend is paid in kind.
10. 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 $2,866,454 or 5.24% of the Fund's
net assets, at April 30, 1997.
11. For zero coupon bonds, the interest rate shown is the effective yield on the
date of purchase.
12. Non-income producing -- issuer is in default of interest payment.
13. Denotes a step bond: a zero coupon bond that converts to a fixed or variable
interest rate at a designated future date.
14. Units may be comprised of several components, such as debt and equity and/or
warrants to purchase equity at some point in the future. For units which
represent debt securities, face amount disclosed represents total underlying
principal.
15. Non-income producing security.
16. Indexed instrument for which the principal amount and/or interest is
affected by the relative value of a foreign index.
Distribution of investments by country of issue, as a percentage of total
investments at value, is as follows:
Country Market Value Percent
- ------- ------------ -------
United States...................................... $26,773,549 48.3%
Mexico............................................. 2,998,206 5.4
Indonesia.......................................... 2,307,742 4.2
Russia............................................. 2,264,369 4.1
Canada............................................. 2,018,449 3.6
Algeria............................................ 1,389,825 2.5
Australia.......................................... 1,363,895 2.5
Italy.............................................. 1,357,919 2.5
Ecuador............................................ 1,189,175 2.1
South Africa....................................... 1,144,953 2.1
Poland............................................. 1,006,970 1.8
Great Britain...................................... 956,228 1.7
Spain.............................................. 923,070 1.7
Finland............................................ 877,927 1.6
New Zealand........................................ 868,231 1.6
Morocco............................................ 860,022 1.6
Malaysia........................................... 645,853 1.2
Jamaica............................................ 591,633 1.1
Venezuela.......................................... 566,457 1.0
Portugal........................................... 565,517 1.0
Romania............................................ 556,000 1.0
Other.............................................. 4,130,309 7.4
------------ -------
Total.............................................. $55,356,299 100.0%
------------ -------
------------ -------
See accompanying Notes to Financial Statements.
17
<PAGE>
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES April 30, 1997 (Unaudited)
Oppenheimer World Bond Fund
<TABLE>
<S> <C>
ASSETS:
Investments, at value (cost $55,452,026) -- see accompanying statement.................. $ 55,356,299
Cash...................................................................................... 1,103,596
Unrealized appreciation on forward foreign currency exchange contracts -- Note 5........ 16,739
Receivables:
Investments sold........................................................................ 3,132,416
Interest, dividends and principal paydowns.............................................. 848,923
Other..................................................................................... 28,259
------------
Total assets......................................................................... 60,486,232
------------
LIABILITIES:
Unrealized depreciation on forward foreign currency exchange contracts -- Note 5........ 2,580
Options written, at value (premiums received $48,436) -- see accompanying
statement -- Note 7................................................................... 43,565
Payables and other liabilities:
Investments purchased (including $3,968,661 purchased on a when-issued basis) -- Note
1.................................................................................... 5,511,331
Trustees' fees -- Note 1.............................................................. 41,174
Daily variation on futures contracts -- Note 6........................................ 21,004
Management and administrative fees...................................................... 11,901
Other................................................................................... 130,347
------------
Total liabilities.................................................................... 5,761,902
------------
NET ASSETS................................................................................ $ 54,724,330
------------
------------
COMPOSITION OF NET ASSETS:
Par value of shares of beneficial interest................................................ $ 66,155
Additional paid-in capital................................................................ 59,784,052
Undistributed net investment income....................................................... 745,101
Accumulated net realized loss on investments, options written and foreign currency
transactions............................................................................ (5,737,086)
Net unrealized depreciation on investments and translation of assets and liabilities
denominated in foreign currencies....................................................... (133,892)
------------
NET ASSETS -- applicable to 6,615,505 shares of beneficial interest outstanding......... $ 54,724,330
------------
------------
NET ASSET VALUE PER SHARE................................................................. $8.27
-----
-----
</TABLE>
See accompanying Notes to Financial Statements.
18
<PAGE>
<PAGE>
STATEMENT OF OPERATIONS For the Six Months Ended April 30, 1997 (Unaudited)
Oppenheimer World Bond Fund
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest.................................................................................... $ 2,777,592
Dividends................................................................................... 1,337
-----------
Total income...................................................................... 2,778,929
-----------
EXPENSES:
Management fees -- Note 4................................................................. 177,626
Administrative fees -- Note 4............................................................. 54,726
Shareholder reports......................................................................... 36,764
Custodian fees and expenses................................................................. 18,764
Transfer agent and accounting service fees -- Note 4...................................... 17,402
Legal and auditing fees..................................................................... 17,305
Registration and filing fees................................................................ 11,933
Other....................................................................................... 324
-----------
Total expenses.................................................................... 334,844
-----------
NET INVESTMENT INCOME....................................................................... 2,444,085
-----------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Investments (including premiums on options exercised)..................................... 1,927,599
Closing of futures contracts -- Note 6.................................................. 20,228
Closing and expiration of options written -- Note 7..................................... (64,103)
Foreign currency transactions............................................................. (537,031)
-----------
Net realized gain................................................................. 1,346,693
-----------
Net change in unrealized appreciation or depreciation on:
Investments............................................................................... (1,161,123)
Translation of assets and liabilities denominated in foreign currencies................... (644,953)
-----------
Net change........................................................................ (1,806,076)
-----------
NET REALIZED AND UNREALIZED LOSS............................................................ (459,383)
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................................ $ 1,984,702
-----------
-----------
</TABLE>
See accompanying Notes to Financial Statements.
19
<PAGE>
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
Oppenheimer World Bond Fund
<TABLE>
<CAPTION>
Six Months Ended
April 30, 1997 Year Ended
(Unaudited) October 31, 1996
---------------- ----------------
<S> <C> <C>
OPERATIONS:
Net investment income....................................................... $ 2,444,085 $ 4,817,348
Net realized gain........................................................... 1,346,693 1,174,051
Net change in unrealized appreciation or depreciation....................... (1,806,076) 1,076,747
---------------- ----------------
Net increase in net assets resulting from operations................... 1,984,702 7,068,146
---------------- ----------------
DIVIDENDS TO SHAREHOLDERS:
Dividends from net investment income........................................ (2,222,808) (4,445,589)
---------------- ----------------
Total increase (decrease)................................................... (238,106) 2,622,557
NET ASSETS:
Beginning of period......................................................... 54,962,436 52,339,879
---------------- ----------------
End of period (including undistributed net investment income of $745,101 and
$523,824, respectively)................................................... $ 54,724,330 $ 54,962,436
---------------- ----------------
---------------- ----------------
</TABLE>
See accompanying Notes to Financial Statements.
20
<PAGE>
<PAGE>
FINANCIAL HIGHLIGHTS
Oppenheimer World Bond Fund
<TABLE>
<CAPTION>
Six Months
Ended April
30, Year Ended October 31,
1997 -------------------------------------------------------
(Unaudited) 1996 1995 1994 1993 1992
----------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period... $ 8.31 $ 7.91 $ 7.93 $ 8.54 $ 8.55 $ 8.97
----------- ------- ------- ------- ------- -------
Income (loss) from investment
operations:
Net investment income................ .37 .73 .71 .69 .82 .89
Net realized and unrealized gain
(loss)............................. (.07) .34 (.05) (.61) -- (.39)
----------- ------- ------- ------- ------- -------
Total income from investment
operations....................... .30 1.07 .66 .08 .82 .50
----------- ------- ------- ------- ------- -------
Dividends and distributions to
shareholders:
Dividends from net investment
income............................. (.34) (.67) (.68) (.68) (.75) (.92)
Tax return of capital distribution... -- -- -- (.01) (.08) --
----------- ------- ------- ------- ------- -------
Total dividends and distributions
to shareholders.................. (.34) (.67) (.68) (.69) (.83) (.92)
----------- ------- ------- ------- ------- -------
Net asset value, end of period......... $ 8.27 $ 8.31 $ 7.91 $ 7.93 $ 8.54 $ 8.55
----------- ------- ------- ------- ------- -------
----------- ------- ------- ------- ------- -------
Market value, end of period............ $ 7.38 $ 7.50 $ 7.00 $ 7.00 $ 8.00 $ 8.63
TOTAL RETURN, AT MARKET VALUE(1)....... 2.42% 16.40% 9.09% (4.84)% 2.22% 0.70%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands)........................... $54,724 $54,962 $52,340 $52,439 $56,526 $55,668
Average net assets (in thousands)...... $55,271 $53,309 $51,207 $54,380 $55,877 $56,970
Ratios to average net assets:
Net investment income................ 8.92%(2) 9.04% 9.20% 8.90% 9.59% 10.13%
Expenses............................. 1.22%(2) 1.28% 1.24% 1.24% 1.22% 1.32%
Portfolio turnover rate(3)............. 135.9% 260.8% 344.2% 315.5% 112.5% 98.4%
</TABLE>
(1) Assumes a hypothetical purchase at the current market price on the business
day before the first day of the fiscal period, with all dividends and
distributions reinvested in additional shares on the reinvestment date, and
a sale at the current market price on the last business day of the period.
Total return does not reflect sales charges or brokerage commissions. Total
returns are not annualized for periods of less than one full year.
(2) Annualized.
(3) 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 April 30, 1997 were $69,315,078
and $66,772,269, respectively. For the years ended October 31, 1995 and
1994, purchases and sales of investment securities included mortgage
'dollar-rolls.'
See accompanying Notes to Financial Statements.
21
<PAGE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
Oppenheimer World Bond Fund
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer World Bond Fund (the Fund) is registered under the Investment
Company Act of 1940, as amended, as a diversified, closed-end management
investment company. The Fund's investment objective is to seek high current
income consistent with preservation of capital through investments in debt
securities. The Fund's investment adviser is OppenheimerFunds, Inc. (the
Manager). The following is a summary of significant accounting policies
consistently followed by the Fund.
Investment Valuation -- Portfolio securities are valued at the close of the
New York Stock Exchange on the last day of each week on which day the New York
Stock Exchange is open. 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 contracts are valued based on the closing prices of the forward
currency contract rates in the London foreign exchange markets on a daily basis
as provided by a reliable bank or dealer. Options are valued based upon the last
sale price on the principal exchange on which the option is traded or, in the
absence of any transactions that day, the value is based upon the last sale
price on the prior trading date if it is within the spread between the closing
bid and asked prices. If the last sale price is outside the spread, the closing
bid is used.
Securities Purchased on a When-Issued Basis -- Delivery and payment for
securities that have been purchased by the Fund on a forward commitment or
when-issued basis can take place a month or more after the transaction date.
During this period, such securities do not earn interest, are subject to market
fluctuation and may increase or decrease in value prior to their delivery. The
Fund maintains, in a segregated account with its custodian, assets with a market
value equal to the amount of its purchase commitments. The purchase of
securities on a when-issued or forward commitment basis may increase the
volatility of the Fund's net asset value to the extent the Fund makes such
purchases while remaining substantially fully invested. As of April 30, 1997,
the Fund had entered into outstanding when-issued or forward commitments of
$3,968,661.
In connection with its ability to purchase securities on a when-issued or
forward commitment basis, the Fund may enter into mortgage 'dollar-rolls' in
which the Fund sells securities for delivery in the current month and
simultaneously contracts with the same counterparty to repurchase similar (same
type coupon and maturity) but not identical securities on a specified future
date. The Fund records each dollar-roll as a sale and a new purchase
transaction.
Security Credit Risk -- The Fund invests in high yield securities, which may
be subject to
22
<PAGE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
Oppenheimer World Bond Fund
a greater degree of credit risk, greater market fluctuations and risk of loss of
income and principal, and may be more sensitive to economic conditions than
lower-yielding, higher-rated fixed income securities. The Fund may acquire
securities in default, and is not obligated to dispose of securities whose
issuers subsequently default.
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 the 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.
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 April 30, 1997, a provision of $2,069 was made for the Fund's projected
benefit obligations and payments of $6,605 were made to retired trustees,
resulting in an accumulated liability of $37,167 at April 30, 1997.
Distributions to Shareholders -- The Fund intends to declare and pay dividends
from net investment income monthly. Distributions from net realized gains on
investments, if any, will be made at least once each year.
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 paydown gains and losses and 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.
23
<PAGE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
Oppenheimer World Bond Fund
Discount on securities purchased is amortized over the life of the respective
securities, in accordance with federal income tax requirements. Realized gains
and losses on investments and unrealized appreciation and depreciation are
determined on an identified cost basis, which is the same basis used for federal
income tax purposes.
Dividends in kind are recognized as income on the ex-dividend date, at the
current market value of the underlying security. Interest on payment-in-kind
debt instruments is accrued as income at the coupon rate and a market adjustment
is made periodically.
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 $.01 par value shares of
beneficial interest. There were no transactions in shares of beneficial interest
for the six months ended April 30, 1997 and the year ended October 31, 1996.
3. UNREALIZED GAINS AND LOSSES ON INVESTMENTS
At April 30, 1997 net unrealized depreciation on investments and options written
of $90,856 was composed of gross appreciation of $863,025, and gross
depreciation of $953,881.
4. MANAGEMENT AND ADMINISTRATIVE FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Management fees paid to the Manager were in accordance with the investment
advisory agreement with the Fund which provides for an annual fee of 0.65% on
the Fund's average annual net assets.
Mitchell Hutchins Asset Management Inc. serves as the Fund's Administrator. The
Fund pays the Administrator an annual fee of 0.20% of the Fund's average annual
net assets.
The Manager acts as the accounting agent for the Fund at an annual fee of
$18,000, plus out-of-pocket costs and expenses reasonably incurred.
Shareholder Financial Services, Inc. (SFSI), a wholly-owned subsidiary of the
Manager, is the transfer agent and registrar for the Fund. Fees paid to SFSI are
based on the number of accounts and the number of shareholder transactions, plus
out-of-pocket costs and expenses.
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
24
<PAGE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
Oppenheimer World Bond Fund
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 April 30, 1997, the Fund had outstanding forward contracts to sell currencies
as follows:
<TABLE>
<CAPTION>
Valuation
Contract as of
Expiration Amount April 30, Unrealized Unrealized
Contracts to Sell Dates (000s) 1997 Appreciation Depreciation
- ----------------- --------------- ------------- --------------- ------------ ------------
<S> <C> <C> <C> <C> <C>
Canadian Dollar (CAD).............. 5/20/97 750CAD $ 537,932 $ -- $1,237
Indonesian Rupiah (IDR)............ 5/15/97 1,463,000IDR 601,587 -- 1,259
Malaysian Ringgit (MYR)............ 5/13/97-5/19/97 901MYR 358,759 -- 84
Swiss Franc (CHF).................. 7/24/97 3,050CHF 2,089,784 16,739 --
--------------- ------------ ------
$ 3,588,062
---------------
---------------
Total Unrealized Appreciation and Depreciation $ 16,739 $2,580
------------ ------
------------ ------
</TABLE>
6. FUTURES CONTRACTS
The Fund may buy and sell interest rate futures contracts in order to gain
exposure to or protect against changes in interest rates. The Fund may also buy
or write put or call options on these futures contracts.
The Fund generally sells futures contracts to hedge against increases in
interest rates and the resulting negative effect on the value of fixed rate
portfolio securities. The Fund may also purchase futures contracts to gain
exposure to changes in interest rates as it may be more efficient or cost
effective than actually buying fixed income securities.
Upon entering into a futures contract, the Fund is required to deposit either
cash or securities in an amount (initial margin) equal to a certain percentage
of the contract value. Subsequent payments (variation margin) are made or
received by the Fund each day. The variation margin payments are equal to the
daily changes in the contract value and are recorded as unrealized gains and
losses. The Fund recognizes a realized gain or loss when the contract is closed
or expires.
Securities held in collateralized accounts to cover initial margin requirements
on open futures contracts are noted in the Statement of Investments. The
Statement of Assets and Liabilities reflects a receivable and/or payable for the
daily mark to market for variation margin.
Risks of entering into futures contracts (and related options) include the
possibility that there may be an illiquid market and that a change in the value
of the contract or option may not correlate with changes in the value of the
underlying securities.
25
<PAGE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
Oppenheimer World Bond Fund
At April 30, 1997, the Fund had outstanding futures contracts to sell debt
securities as follows:
<TABLE>
<CAPTION>
Number of Valuation as of Unrealized
Expiration Date Contracts April 30, 1997 Depreciation
--------------- --------- --------------- ---------------
<S> <C> <C> <C> <C>
U.S. Treasury Nts................................ 6/97 58 $6,133,313 $49,036
</TABLE>
7. OPTION ACTIVITY
The Fund may buy and sell put and call options, or write put and covered call
options on portfolio securities in order to produce incremental earnings or
protect against changes in the value of portfolio securities.
The Fund generally purchases put options or writes covered call options to hedge
against adverse movements in the value of portfolio holdings. When an option is
written, the Fund receives a premium and becomes obligated to sell or purchase
the underlying security at a fixed price, upon exercise of the option.
Options are valued daily based upon the last sale price on the principal
exchange on which the option is traded and unrealized appreciation or
depreciation is recorded. The Fund will realize a gain or loss upon the
expiration or closing of the option transaction. When an option is exercised,
the proceeds on sales for a written call option, the purchase cost for a written
put option, or the cost of the security for a purchased put or call option is
adjusted by the amount of premium received or paid.
Securities designated to cover outstanding call options are noted in the
Statement of Investments where applicable. Shares subject to call, expiration
date, exercise price, premium received and market value are detailed in a
footnote to the Statement of Investments. Options written are reported as a
liability in the Statement of Assets and Liabilities. Gains and losses are
reported in the Statement of Operations.
The risk in writing a call option is that the Fund gives up the opportunity for
profit if the market price of the security increases and the option is
exercised. The risk in writing a put option is that the Fund may incur a loss if
the market price of the security decreases and the option is exercised. The risk
in buying an option is that the Fund pays a premium whether or not the option is
exercised. The Fund also has the additional risk of not being able to enter into
a closing transaction if a liquid secondary market does not exist.
Written option activity for the six months ended April 30, 1997 was as follows:
<TABLE>
<CAPTION>
Call Options Put Options
--------------------------- --------------------------
Number Amount Number Amount
of of of of
Options Premiums Options Premiums
----------- ----------- ---------- -----------
<S> <C> <C> <C> <C>
Options outstanding at October 31, 1996................... 2,987,100 $ 31,287 -- $ --
Options written........................................... 37,129,977 139,685 4,136,790 30,098
Options closed or expired................................. (34,019,055) (106,525) (181,375) (5,861)
Options exercised......................................... (2,209,800) (19,430) (3,750,110) (20,818)
----------- ----------- ---------- -----------
Options outstanding at April 30, 1997..................... 3,888,222 $ 45,017 205,305 $ 3,419
----------- ----------- ---------- -----------
----------- ----------- ---------- -----------
</TABLE>
26
<PAGE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
Oppenheimer World Bond Fund
8. ILLIQUID AND RESTRICTED SECURITIES
At April 30, 1997, investments in securities included issues that are illiquid
or restricted. Restricted securities are often purchased in private placement
transactions, are not registered under the Securities Act of 1933, may have
contractual restrictions on resale, and are valued under methods approved by the
Board of Trustees as reflecting fair value. A security may be considered
illiquid if it lacks a readily-available market or if its valuation has not
changed for a certain period of time. The Fund intends to invest no more than
10% of its net assets (determined at the time of purchase and reviewed from time
to time) in illiquid or restricted securities. Certain restricted securities,
eligible for resale to qualified institutional investors, are not subject to
that limit. The aggregate value of illiquid or restricted securities subject to
this limitation at April 30, 1997 was $3,689,168, which represents 6.74% of the
Fund's net assets.
27
<PAGE>
<PAGE>
OPPENHEIMER WORLD BOND FUND
GENERAL INFORMATION CONCERNING THE FUND
Oppenheimer World Bond Fund (the Fund) is a closed-end diversified management
investment company with a primary investment objective of seeking high current
income consistent with preservation of capital. The Fund's secondary investment
objective is capital appreciation. In seeking its objectives, as a
non-fundamental policy, the Fund will invest at least 65% of its total assets in
debt instruments issued or guaranteed by the U.S. Government, its agencies or
instrumentalities or by foreign governments, their political subdivisions,
agencies or instrumentalities, including supranational entities. Additionally,
as a non-fundamental policy, the Fund will invest at least 50% of its net assets
in foreign securities.
The Fund may also invest in certain other securities, including fixed-income
securities of domestic and foreign corporations certain of which could be
high-yield, 'lower-grade' debt instruments, and participation interests, and may
invest in a number of different kinds of 'derivative investments.' The Fund may
engage in certain special investment techniques, including repurchase
transactions, when-issued and delayed delivery transactions and hedging. The
investment adviser to the Fund is OppenheimerFunds, Inc. (the Manager).
Portfolio Managers of the Fund are Thomas P. Reedy, David A. Rosenberg and
Ashwin K. Vasan, who also serve as Vice Presidents of the Fund and of the
Manager, and are officers of certain mutual funds managed by the Manager
(Oppenheimer funds). Messrs. Reedy, Rosenberg and Vasan have been the persons
principally responsible for the day-to-day management of the Fund's portfolio
since August 1993, June 1994 and August 1993, respectively. During the past five
years, Mr. Reedy served as a securities analyst for the Manager, and, prior to
joining the Manager, Mr. Rosenberg served as an officer and portfolio manager
for Delaware Investment Advisers and one of its mutual funds and Mr. Vasan
served as a securities analyst for Citibank, N.A.
Dividend Reinvestment and Cash Purchase Plan -- Pursuant to the Fund's
Dividend Reinvestment and Cash Purchase Plan (the Plan), as to shares of the
Fund (Shares) not registered in nominee name, all dividends and capital gains
distributions (Distributions) declared by the Fund will be automatically
reinvested in additional full and fractional Shares unless a shareholder elects
to receive cash. If Shares are registered in nominee name, the shareholder
should consult the nominee if the shareholder desires to participate in the
Plan. Shareholders that participate in the Plan (Participants) may, at their
option, make additional cash investments in Shares, semiannually in amounts of
at least $100, through payment to Shareholder Financial Services, Inc., the
agent for the Plan (the Agent), accompanied by a service fee of $0.75.
Depending upon the circumstances hereinafter described, Plan Shares will be
acquired by the Agent for the Participant's account through receipt of newly
issued Shares or the purchase of outstanding Shares on the open market. If the
market price of Shares on the relevant date (normally the payment date) equals
or exceeds their net asset value, the Agent will ask the Fund for payment of the
Distribution in additional Shares at the greater of the Fund's net asset value
determined as of the date of purchase or 95% of the then-current market price.
If the market price is lower than net asset value, the Distribution will be paid
in cash, which the Agent will use to buy Shares on The New York Stock Exchange
(the NYSE), or
28
<PAGE>
<PAGE>
otherwise on the open market to the extent available. If the market price
exceeds the net asset value before the Agent has completed its purchases, the
average purchase price per Share paid by the Agent may exceed the net asset
value, resulting in fewer Shares being acquired than if the Distribution had
been paid in Shares issued by the Fund.
Participants may elect to withdraw from the Plan at any time and thereby receive
cash in lieu of Shares by sending appropriate written instructions to the Agent.
Elections received by the Agent will be effective only if received more than ten
days prior to the record date for any Distribution; otherwise, such termination
will be effective shortly after the investment of such Distribution with respect
to any subsequent Distribution. Upon withdrawal from or termination of the Plan,
all Shares acquired under the Plan will remain in the Participant's account
unless otherwise requested. For full Shares, the Participant may either: (1)
receive without charge a share certificate for such Shares; or (2) request the
Agent (after receipt by the Agent of signature guaranteed instructions by all
registered owners) to sell the Shares acquired under the Plan and remit the
proceeds less any brokerage commissions and a $2.50 service fee. Fractional
Shares may either remain in the Participant's account or be reduced to cash by
the Agent at the current market price with the proceeds remitted to the
Participant.
Shareholders who have previously withdrawn from the Plan may rejoin at any time
by sending written instructions signed by all registered owners to the Agent.
There is no direct charge for participation in the Plan; all fees of the Agent
are paid by the Fund. There are no brokerage charges for Shares issued directly
by the Fund. However, each Participant will pay a pro rata share of brokerage
commissions incurred with respect to open market purchases of Shares to be
issued under the Plan. Participants will receive tax information annually for
their personal records and to assist in federal income tax return preparation.
The automatic reinvestment of Distributions does not relieve Participants of any
income tax that may be payable to Distributions.
The Plan may be terminated or amended at any time upon 30 days' prior written
notice to Participants which, with respect to a Plan termination, must precede
the record date of any Distribution by the Fund. Additional information
concerning the Plan may be obtained by shareholders holding Shares registered
directly in their names by writing the Agent, Shareholder Financial Services,
Inc., P.O. Box 173673, Denver, CO 80217-3673 or by calling 1-800-647-7374.
Shareholders holding Shares in nominee name should contact their brokerage firm
or other nominee for more information.
Shareholder Information -- The Shares are traded on the NYSE. Daily market
prices for the Fund's shares are published in the New York Stock Exchange
Composite Transaction section of newspapers under the designation 'OppenWrld
Bnd'. The Fund's NYSE trading symbol is OWB. Weekly net asset value (NAV) and
market price information about the Fund is published each Monday in The Wall
Street Journal, each Sunday in The New York Times and each Saturday in Barron's,
and other newspapers in a table called 'Closed-End Bond Funds.'
29
<PAGE>
<PAGE>
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<PAGE>
<PAGE>
(This Page Intentionally Left Blank)
<PAGE>
<PAGE>
OPPENHEIMER WORLD BOND 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
Thomas P. Reedy, Vice President
David A. Rosenberg, Vice President
Ashwin K. Vasan, 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.
Administrator
Mitchell Hutchins Asset Management Inc.
Transfer Agent and Registrar
Shareholder Financial Services, Inc.
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 World Bond Fund. It
does not offer for sale or solicit orders to buy any securities.
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940 that periodically the Fund may purchase its shares of
beneficial interest in the open market at prevailing market prices.
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.
RS0675.001.0697 [Logo] Printed on recycled paper
1997 SEMIANNUAL REPORT
OPPENHEIMER
WORLD BOND FUND
APRIL 30, 1997
[LOGO]
