<PAGE> 1
[PHOTO]
SEMIANNUAL REPORT APRIL 30, 2000
OPPENHEIMER
WORLD BOND FUND
[OPPENHEIMER LOGO]
<PAGE> 2
CONTENTS
1 President's Letter
3 An Interview with Your Fund's Managers
8 Financial Statements
34 Officers and Trustees
REPORT HIGHLIGHTS
------------------------------------------------------------------------------
Of the various foreign markets, EMERGING-MARKET BONDS CONTRIBUTED THE MOST TO
THE FUND'S PERFORMANCE.
WE TOOK ADVANTAGE OF WEAKNESS IN U.S. MORTGAGE-BACKED SECURITIES to add what we
believed were a number of compelling high-quality holdings.
We believe that THE FUND'S HOLDINGS MAY BENEFIT AS THE GLOBAL FIXED-INCOME
INVESTMENT ENVIRONMENT AND DEMAND FOR HIGHER-YIELDING SECURITIES IMPROVES.
CUMULATIVE
TOTAL RETURNS*
For the 6-Month Period
Ended 4/30/00
Class A
Without With
Sales Chg. Sales Chg.
------------------------------------
3.44% -1.47%
Class B
Without With
Sales Chg. Sales Chg.
------------------------------------
2.94% -1.99%
Class C
Without With
Sales Chg. Sales Chg.
------------------------------------
2.92% 1.93%
*SEE NOTES ON PAGE 7 FOR FURTHER DETAILS.
<PAGE> 3
[PHOTO]
BRIDGET A. MACASKILL
President
Oppenheimer
World Bond Fund
PRESIDENT'S LETTER
DEAR SHAREHOLDER,
--------------------------------------------------------------------------------
For many years, we have encouraged investors to consider whether they could
tolerate more risk in their long-term investments by participating in the stock
market, which has historically provided higher long-term returns than any other
asset class. Today, however, we have a very different concern: some investors
may have assumed too much risk by concentrating their investments in just a
handful of stocks or sectors or by "chasing performance."
Several months ago, Alan Greenspan, the Chairman of the Federal Reserve
Board, stated his view that the spectacular returns some sectors of the market
were then experiencing may have been partly responsible for pushing our economy
to growth rates that could lead to higher inflation. Today it is clear that the
dramatic rise in the prices of a narrow segment of the market created enormous
wealth for some investors. The result of this newfound wealth has been a
substantial increase in spending that the Federal Reserve Board believes could
threaten the healthy growth of our economy.
That's why the Fed has been raising interest rates steadily and decisively
over the past year. By making borrowing more expensive, the Fed has been
attempting to slow economic growth. It is a precarious balancing act: too much
tightening creates the risk of recession, while too little opens the door to
inflation.
The implications of the Fed's resolve are clear: investors must continue to
be prepared for near-term market volatility. In the bond market, higher interest
rates usually lead to lower bond prices. In the stock market, slower economic
growth often reduces corporate earnings and puts downward pressure on stock
prices. Highly valued stocks can be particularly vulnerable to a correction. The
Securities and Exchange Commission Chairman, Arthur Levitt, has been cautioning
investors against the expectation that the types of returns seen in the recent
bull market will last forever.
1 OPPENHEIMER WORLD BOND FUND
<PAGE> 4
PRESIDENT'S LETTER
--------------------------------------------------------------------------------
Because of the prospect of continued market volatility, we encourage you to
consider diversifying your investments. Indeed, diversification may help you
mitigate the effects of sharp declines in any one area. It may also help you
better position your portfolio to seek greater returns over the long run.
While some "new economy" stocks have risen over the last year, many
so-called "old economy" stocks are selling at low prices. In the bond market,
higher interest rates over the short term may reduce inflation concerns, which
should be beneficial over the long term. By buying out-of-favor investments, you
may be able to profit when and if they return to favor.
What specific investments should you consider today so that you are prepared
for tomorrow? The answer depends on your individual investing goals, risk
tolerance and financial circumstances. We urge you to talk with your financial
advisor about ways to diversify your portfolio. This may include con-sidering
global diversification as part of your strategy. While investing abroad has
special risks, such as the effects of foreign currency fluctuations, it also
offers opportunities to participate in global economic growth and to hedge
against the volatility in U.S. markets.
We thank you for your continued confidence in OppenheimerFunds, The Right
Way to Invest.
Sincerely,
/s/ BRIDGET A. MACASKILL
Bridget A. Macaskill
May 19, 2000
2 OPPENHEIMER WORLD BOND FUND
<PAGE> 5
[PHOTO]
PORTFOLIO MANAGEMENT
TEAM(L TO R)
Art Steinmetz
Ruggero de' Rossi
AN INTERVIEW WITH YOUR FUND'S MANAGERS
--------------------------------------------------------------------------------
HOW DID OPPENHEIMER WORLD BOND FUND PERFORM OVER THE SIX-MONTH PERIOD THAT ENDED
APRIL 30, 2000?
A. We are generally pleased with the Fund's returns in what has been a mixed bag
for global bond markets. During the six-month reporting period, stronger than
expected economic growth throughout the world fueled concerns that inflationary
pressures might reemerge. As a result, tighter monetary policy worldwide pushed
many bond yields higher. Because bond yields and prices generally move in
opposite directions, higher interest rates eroded the value of many fixed income
securities. However, by focusing on what we believed were the highest yielding,
positive performing sectors of the global bond market, we were able to provide a
competitive yield in a declining market.(1)
WHAT WAS THE ECONOMIC ENVIRONMENT LIKE DURING THE PERIOD?
When the reporting period began on November 1, 1999, it had become apparent that
many of the world's economies were growing robustly. The emerging markets of
Asia, Eastern Europe and, to a lesser extent, Latin America, had made a
remarkable recovery from the 1998 global financial crisis. Many developed
markets stabilized, with most European economies experiencing moderate growth,
while Japan's economy showed only budding signs of recovery after nearly a
decade of recession.
1. Investing in foreign bonds, especially in emerging markets, entails higher
expenses and risks, such as foreign currency fluctuations. Investing in high
yield junk bonds carries greater risk of volatility and default. Please see the
prospectus for more information on the risks of investing in the Fund.
3 OPPENHEIMER WORLD BOND FUND
<PAGE> 6
AN INTERVIEW WITH YOUR FUND'S MANAGERS
--------------------------------------------------------------------------------
"Although the past six months have been challenging for many bonds, our focus on
high-yielding securities helped enhance the Fund's performance."
In the United States, the economy was robust, but a combination of tight
labor markets, rising commodity prices and high levels of consumer borrowing
raised fears of higher inflation down the road. Additionally, Federal Reserve
Chairman Alan Greenspan voiced concern over the "wealth effect," as stock
valuations continued to rise and income from investments in the stock market
fueled vigorous household spending. Questioning the economy's ability to sustain
its rapid growth, the Federal Reserve Board continued to raise short-term
interest rates, with additional hikes in November, February and March.
While many bond investors were prepared for these moves, they were less so
for the U.S. Treasury Department's buyback program, announced in late January of
this year. This repurchase of a larger-than-expected portion of outstanding
Treasury debt created an acute imbalance between supply and demand for U. S.
Treasury securities, particularly on the long end of the maturity spectrum. With
long bonds already in short supply, increased demand drove prices up
dramatically. However, as yields on longer-term bonds dipped below yields on
shorter issues, inverting the yield curve, longer issues still in circulation
became even more valuable.
HOW DID YOU MANAGE THE FUND IN THIS ENVIRONMENT?
We have focused on seeking to maximize income in a rising interest rate
environment. We generally avoided lower yielding securities from countries with
relatively low rates of economic growth. Instead, we emphasized higher yielding
bonds from countries with strong economies. Focusing on credit-sensitive rather
than interest rate-sensitive bonds helped provide above-average income streams,
which helped offset the effects of declining bond prices.
4 OPPENHEIMER WORLD BOND FUND
<PAGE> 7
AVERAGE ANNUAL
TOTAL RETURNS
For the Periods Ended 3/31/00(2)
Class A
1-Year 5-Year 10-Year
----------------------------------------
6.36% 7.21% 7.15%
Class B Since
1-Year 5-Year Inception
----------------------------------------
5.81% N/A 0.94%
Class C Since
1-Year 5-Year Inception
----------------------------------------
9.81% N/A 2.66%
Because of ongoing market volatility,
the Fund's returns may fluctuate and may
be less than the results shown.
-----------------------------------------
STANDARDIZED YIELDS(3)
For the 30-days Ended 4/30/00
-----------------------------------------
Class A 9.26%
-----------------------------------------
Class B 8.92
-----------------------------------------
Class C 8.91
WHERE HAVE YOU FOUND THE MOST ATTRACTIVE OPPORTUNITIES FOR INVESTMENT DURING THE
PAST SIX MONTHS?
Of the various international markets, emerging-market bonds contributed the most
to performance. Consistent with our value orientation, we purchased many of our
current holdings in 1998, when they fell out of favor due to the global
financial crisis. As market conditions and investor interest have improved, we
have taken a more aggressive stance.
On the other hand, our holdings of foreign bonds from many developed markets
were negatively influenced by the strength of the U.S. dollar relative to most
European currencies, including the euro. Many European economies were growing at
slower rates than the U.S. economy, making U.S. investments relatively more
attractive to domestic and foreign investors alike. However, we believe there
are investment opportunities in the United Kingdom and many Scandinavian
countries.
In the United States, we allocated part of the portfolio to "spread
products" such as mortgage-backed securities. These types of securities
typically provide extra yield above Treasuries, and generally perform better in
a rising-rate environment. Throughout the last six months, we sought to take
advantage of weakness in the mortgage-backed securities sector to add what we
believed were a number of compelling high-quality holdings.
(2.) See Notes on page 7 for further details
(3.) Standardized yield is based on net investment income for the 30-day period
ended April 30, 2000. Falling share prices will tend to artificially raise
yields.
5 OPPENHEIMER WORLD BOND FUND
<PAGE> 8
AN INTERVIEW WITH YOUR FUND'S MANAGERS
--------------------------------------------------------------------------------
REGIONAL ALLOCATION
Percentage of invested assets(4)
[PIE CHART]
<TABLE>
<S> <C>
United States/
Canada 53.0%
Latin America 15.9
Europe 15.1
Asia 7.5
Emerging
Europe 5.7
Middle East/
Africa 2.8
</TABLE>
WHAT IS YOUR OUTLOOK OVER THE FORESEEABLE FUTURE?
We remain optimistic. We expect the Federal Reserve and other central banks to
employ tighter monetary policy until they see evidence that inflation will
remain under control. In our view, U.S. investors could expect to see several
more interest-rate increases, which we believe have already been priced into
long-term bond yields. Because of its size and scope, the U.S. economy
influences many worldwide markets. However, we believe that any further price
erosion among longer-term bonds should be limited.
We will seek to continue to manage the Fund in a way that takes advantage of
the changing relationships among the various sectors of the global bond market.
In fact, adhering to our long-term investment discipline is just one of the many
reasons why Oppenheimer World Bond Fund is an important part of The Right Way to
Invest.
<TABLE>
<CAPTION>
TOP TEN COUNTRY HOLDINGS(4)
-----------------------------------------------------------------------------
<S> <C>
United States 49.8%
-----------------------------------------------------------------------------
Mexico 5.0
-----------------------------------------------------------------------------
France 4.0
-----------------------------------------------------------------------------
Argentina 3.7
-----------------------------------------------------------------------------
Canada 3.2
-----------------------------------------------------------------------------
Russia 3.1
-----------------------------------------------------------------------------
Brazil 2.8
-----------------------------------------------------------------------------
Italy 2.8
-----------------------------------------------------------------------------
Korea, Republic of (South) 2.0
-----------------------------------------------------------------------------
Algeria 1.8
</TABLE>
(4.) Portfolio is subject to change. Percentages are as of April 30, 2000, and
are based on total market value of investments.
6 OPPENHEIMER WORLD BOND FUND
<PAGE> 9
NOTES
--------------------------------------------------------------------------------
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. FOR QUARTERLY
UPDATES ON THE FUND'S PERFORMANCE, PLEASE CONTACT YOUR FINANCIAL ADVISOR, CALL
US AT 1.800.525.7048 OR VISIT OUR WEBSITE AT WWW.OPPENHEIMERFUNDS.COM.
Total returns include changes in share price and reinvestment of dividends and
capital gains distributions in a hypothetical investment for the periods shown.
Cumulative total returns are not annualized. The Fund's total returns and yields
shown do not show the effects of income taxes on an individual's investment.
Taxes may reduce your actual investment returns on income or gains paid by the
Fund or any gains you may realize if you sell your shares.
CLASS A shares of the Fund were first publicly offered on 11/23/88. Unless
otherwise noted, Class A returns include the current maximum initial sales
charge of 4.75%. Class A shares are subject to an annual 0.25% asset-based sales
charge.
CLASS B shares of the Fund were first publicly offered on 4/27/98. Unless
otherwise noted, Class B returns include the applicable contingent deferred
sales charge of 5% (1-year) and 4% (since inception). Class B shares are subject
to an annual 0.75% asset-based sales charge.
CLASS C shares of the Fund were first publicly offered on 4/27/98. Unless
otherwise noted, Class C returns include the contingent deferred sales charge of
1% for the 1-year period. Class C shares are subject to an annual 0.75%
asset-based sales charge.
An explanation of the calculation of performance is in the Fund's Statement of
Additional Information.
7 OPPENHEIMER WORLD BOND FUND
<PAGE> 10
STATEMENT OF INVESTMENTS April 30, 2000 / Unaudited
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
MORTGAGE-BACKED OBLIGATIONS--11.6% AMOUNT SEE NOTE 1
----------------------------------------------------------------------------------------------------------------
GOVERNMENT AGENCY--8.3%
----------------------------------------------------------------------------------------------------------------
FHLMC/FNMA/SPONSORED--7.5%
Federal Home Loan Mortgage Corp., Gtd. Real Estate Mtg. Investment
<S> <C> <C>
Conduit Pass-Through Certificates, Series 2054, Cl. TE, 6.25%, 4/15/24 $ 109,000 $ 101,199
---------------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp., Interest-Only Stripped
Mtg.-Backed Security:
Series 197, Cl. IO, 11.248%, 4/1/28(1) 1,333,331 423,437
Series 199, Cl. IO, 18.28%, 8/1/28(1) 1,243,955 408,756
--------------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp., Mtg.-Backed Certificates:
11.50%, 1/1/18 25,000 26,462
13%, 5/1/19 157,250 175,288
---------------------------------------------------------------------------------------------------------------
Federal National Mortgage Assn., 6.50%, 3/1/28 2,062,368 1,928,769
----------
3,063,911
---------------------------------------------------------------------------------------------------------------
GNMA/GUARANTEED--0.8%
Government National Mortgage Assn.:
7.50%, 5/15/24 34,068 33,626
7.50%, 1/15/26(2,3) 265,064 261,123
11%, 10/20/19 45,525 49,030
----------
343,779
----------------------------------------------------------------------------------------------------------------
PRIVATE--3.3%
---------------------------------------------------------------------------------------------------------------
COMMERCIAL--3.3%
Commercial Mortgage Acceptance Corp., Interest-Only Stripped
Mtg.-Backed Security, Series 1996-C1, Cl. X-2, 25.531%, 12/25/20(1,4) 5,003,131 62,539
---------------------------------------------------------------------------------------------------------------
CS First Boston Mortgage Securities Corp., Mtg. Pass-Through
Certificates, Series 1997-C1, Cl. E, 7.50%, 3/1/11(4) 190,000 169,100
---------------------------------------------------------------------------------------------------------------
First Chicago/Lennar Trust 1, Commercial Mtg. Pass-Through
Certificates, Series 1997-CHL1, Cl. C, 7.993%, 7/25/06(4,5) 200,000 182,625
---------------------------------------------------------------------------------------------------------------
Merrill Lynch Mortgage Investors, Inc., Mtg. Pass-Through
Certificates, Series 1995-C2, Cl. D, 7.777%, 6/15/21(5) 107,226 105,007
---------------------------------------------------------------------------------------------------------------
Morgan Stanley Capital I, Inc., Commercial Mtg. Pass-Through
Certificates, Series 1996-C1, Cl. E, 7.416%, 3/15/06(4,5) 553,342 456,248
---------------------------------------------------------------------------------------------------------------
Mortgage Capital Funding, Inc., Multifamily Mtg. Pass-Through
Certificates, Series 1996-MC1, Cl. G, 7.15%, 6/15/06(6) 250,000 205,879
---------------------------------------------------------------------------------------------------------------
Resolution Trust Corp., Commercial Mtg. Pass-Through Certificates,
Series 1995-C1, Cl. F, 6.90%, 2/25/27 84,164 75,965
---------------------------------------------------------------------------------------------------------------
Structured Asset Securities Corp., Multiclass Pass-Through Certificates,
Series 1995-C4, Cl. E, 8.744%, 6/25/26(4,5) 100,000 96,625
----------
1,353,988
----------
Total Mortgage-Backed Obligations (Cost $4,762,029) 4,761,678
---------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--16.7%
U.S. Treasury Bonds:
8.875%, 2/15/19 275,000 351,570
STRIPS, 5.97%, 11/15/18(7) 4,050,000 1,308,109
STRIPS, 6.24%, 2/15/20(7) 837,000 601,979
</TABLE>
8 OPPENHEIMER WORLD BOND FUND
<PAGE> 11
<TABLE>
<CAPTION>
Principal Market Value
Amount See Note 1
----------------------------------------------------------------------------------------------------------------
U.S. Treasury Nts.:
<S> <C> <C>
5.25%, 5/15/04 $3,000,000 $2,862,189
5.625%, 11/30/00 750,000 746,954
7%, 7/15/06(8) 1,000,000 1,023,438
-----------
Total U.S. Government Obligations (Cost $7,001,867) 6,894,239
---------------------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT OBLIGATIONS--36.0%
---------------------------------------------------------------------------------------------------------------
ARGENTINA--3.5%
Argentina (Republic of) Bonds, Series PRE3, 2.951%, 9/1/02(5)[ARP] 370,335 333,054
---------------------------------------------------------------------------------------------------------------
Argentina (Republic of) Disc. Bonds, 6.875%, 3/31/23(5) 288,000 245,880
---------------------------------------------------------------------------------------------------------------
Argentina (Republic of) Unsec. Unsub. Nts., 11.75%, 4/7/09 299,000 294,365
---------------------------------------------------------------------------------------------------------------
Buenos Aires (Province of) Bonds, Series PBA1, 2.951%, 4/1/07(5) [ARP] 241,534 173,103
---------------------------------------------------------------------------------------------------------------
City of Buenos Aires Bonds, Series 3, 10.50%, 5/28/04 [ARP] 460,000 407,385
----------
1,453,787
---------------------------------------------------------------------------------------------------------------
BRAZIL--2.6%
Brazil (Federal Republic of) Bonds:
12.25%, 3/6/30 45,000 41,242
Series 15 yr., 7.437%, 4/15/09(5) 132,000 108,570
--------------------------------------------------------------------------------------------------------------
Brazil (Federal Republic of) Debt Conversion Bonds:
Series 18 yr., 7.437%, 4/15/12(5) 695,000 502,137
Series 20 yr., 6.916%, 4/15/14 277,067 199,488
--------------------------------------------------------------------------------------------------------------
Brazil (Federal Republic of) Eligible Interest Bonds:
7.375%, 4/15/06(5) 68,820 61,594
7.375%, 4/15/06(5) 199,950 178,955
----------
1,091,986
--------------------------------------------------------------------------------------------------------------
BULGARIA--0.3%
Bulgaria (Republic of) Front-Loaded Interest Reduction Bearer Bonds,
Tranche A, 2.75%, 7/28/12(5) 150,000 104,625
--------------------------------------------------------------------------------------------------------------
CANADA--3.1%
Canada (Government of) Bonds:
1.90%, 3/23/09 [JPY] 33,000,000 310,794
7%, 12/1/06 [CAD] 1,350,000 949,036
----------
1,259,830
--------------------------------------------------------------------------------------------------------------
COLOMBIA--0.3%
Colombia (Republic of) Bonds, 9.75%, 4/23/09 160,000 126,000
--------------------------------------------------------------------------------------------------------------
DENMARK--0.5%
Nykredit AS, 7% Cv. Bonds, 10/1/29 [DKK] 1,673,000 203,566
--------------------------------------------------------------------------------------------------------------
FRANCE--3.7%
France (Government of) Obligations Assimilables du Tresor Bonds,
5.50%, 4/25/10 [EUR] 1,020,000 936,339
--------------------------------------------------------------------------------------------------------------
France (Government of) Treasury Nts., 3.50%, 7/12/04 [EUR] 705,000 607,083
----------
1,543,422
</TABLE>
9 OPPENHEIMER WORLD BOND FUND
<PAGE> 12
STATEMENT OF INVESTMENTS Unaudited/Continued
<TABLE>
<CAPTION>
Principal Market Value
Amount See Note 1
--------------------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT OBLIGATIONS Continued
--------------------------------------------------------------------------------------------------------------
GERMANY--1.2%
Germany (Republic of) Bonds:
<S> <C> <C>
6.25%, 4/26/06 [EUR] 460 $ 442
Series 95, 7.375%, 1/3/05 [DEM] 85,000 84,540
Series 97, 6%, 1/4/07 [EUR] 30,000 28,452
Series 125, 5%, 11/12/02 [EUR] 400,000 366,343
----------
479,777
--------------------------------------------------------------------------------------------------------------
GREAT BRITAIN--1.2%
United Kingdom Treasury Bonds, 5.75%, 12/7/09 [GBP] 90,000 146,747
--------------------------------------------------------------------------------------------------------------
United Kingdom Treasury Nts., 10%, 9/8/03 [GBP] 210,000 365,741
----------
512,488
--------------------------------------------------------------------------------------------------------------
GREECE--0.4%
Hellenic (Republic of) Bonds, 8.60%, 3/26/08 [GRD] 53,300,000 166,351
--------------------------------------------------------------------------------------------------------------
ITALY--2.6%
Italy (Republic of) Treasury Bonds, Buoni del Tesoro Poliennali:
6.75%, 2/1/07 [EUR] 430,000 421,052
9.50%, 2/1/06 [EUR] 575,000 630,736
10.50%, 9/1/05 [EUR] 30,810 34,768
----------
1,086,556
--------------------------------------------------------------------------------------------------------------
IVORY COAST--0.2%
Ivory Coast (Government of) Past Due Interest Bonds, Series F, 1.90%,
3/29/18(9) [FRF] 3,899,750 92,103
--------------------------------------------------------------------------------------------------------------
JAPAN--0.8%
Japan (Government of) 10 yr. Bonds:
Series 135, 7.20%, 12/20/00 [JPY] 5,400,000 52,069
Series 136, 6.90%, 12/20/00 [JPY] 27,500,000 264,377
----------
316,446
--------------------------------------------------------------------------------------------------------------
JORDAN--0.8%
Hashemite (Kingdom of Jordan) Disc. Bonds, 7%, 12/23/23(5) 405,000 320,962
--------------------------------------------------------------------------------------------------------------
KOREA, REPUBLIC OF (SOUTH)--1.0%
Korea (Republic of) Bonds, 8.875%, 4/15/08 410,000 423,838
--------------------------------------------------------------------------------------------------------------
MEXICO--0.8%
Petroleos Mexicanos Debs., 14.50%, 3/31/06 [GBP] 100,000 196,805
--------------------------------------------------------------------------------------------------------------
United Mexican States Bonds:
11.375%, 9/15/16 3,000 3,402
Series A, 7.313%, 12/31/19(5) 50,000 49,125
--------------------------------------------------------------------------------------------------------------
United Mexican States Collateralized Fixed Rate Par Bonds:
Series W-A, 6.25%, 12/31/19 15,000 12,375
Series W-B, 6.25%, 12/31/19 35,000 28,875
--------------------------------------------------------------------------------------------------------------
United Mexican States Disc. Bonds:
Series B, 6.942%, 12/31/19(5) 25,000 24,539
Series C, 6.836%, 12/31/19(5) 25,000 24,563
----------
339,684
</TABLE>
10 OPPENHEIMER WORLD BOND FUND
<PAGE> 13
<TABLE>
<CAPTION>
Principal Market Value
Amount See Note 1
---------------------------------------------------------------------------------------------------------------
NORWAY--1.3%
<S> <C> <C>
Norway (Government of) Bonds, 9.50%, 10/31/02 [NOK] 4,480,000 $ 532,873
--------------------------------------------------------------------------------------------------------------
PANAMA--0.5%
Panama (Republic of) Interest Reduction Bonds, 4.25%, 7/17/14(5) 48,000 37,920
--------------------------------------------------------------------------------------------------------------
Panama (Republic of) Past Due Interest Debs., 6.381%, 7/17/16(5) 191,353 154,518
----------
192,438
--------------------------------------------------------------------------------------------------------------
PERU--1.4%
Peru (Republic of) Sr. Nts., Zero Coupon, 4.53%, 2/28/16(7) 1,208,978 566,890
--------------------------------------------------------------------------------------------------------------
POLAND--0.7%
Poland (Republic of) Bonds:
13%, 2/12/01 [PLZ] 726,000 156,331
Series 0602, 12%, 6/12/02 [PLZ] 267,000 55,262
Series 5 yr., 12%, 2/12/02 [PLZ] 292,000 60,526
----------
272,119
--------------------------------------------------------------------------------------------------------------
RUSSIA--2.7%
Russia (Government of) Principal Loan Debs., Series 24 yr., 12/15/20(9,10) 1,701,000 467,775
--------------------------------------------------------------------------------------------------------------
Russian Federation Bonds, 2.25%, 3/31/30(5,11) 440,000 147,675
--------------------------------------------------------------------------------------------------------------
Russian Federation Unsec. Unsub. Nts.:
8.75%, 7/24/05 294,000 209,475
10%, 6/26/07 356,000 255,430
12.75%, 6/24/28 32,000 26,080
----------
1,106,435
--------------------------------------------------------------------------------------------------------------
SLOVAKIA--0.8%
Vseobenona Uverova Banka Unsec. Sub. Nts., 7.75%, 12/28/06(5) 380,000 323,000
--------------------------------------------------------------------------------------------------------------
SPAIN--0.9%
Spain (Kingdom of) Gtd. Bonds, Bonos y Obligacion del Estado:
8.80%, 4/30/06 [EUR] 180,000 192,621
10%, 2/28/05 [EUR] 180,000 196,767
----------
389,388
--------------------------------------------------------------------------------------------------------------
SWEDEN--0.7%
Sweden (Kingdom of) Bonds, Series 1034, 9%, 4/20/09 [SEK] 2,000,000 278,737
--------------------------------------------------------------------------------------------------------------
THE NETHERLANDS--1.4%
The Netherlands (Government of) Bonds:
6%, 1/15/06 [EUR] 105,000 99,275
7.75%, 3/1/05 [EUR] 480,000 485,103
----------
584,378
--------------------------------------------------------------------------------------------------------------
TURKEY--0.3%
Turkey (Republic of) Sr. Unsec. Unsub. Nts., 11.875%, 1/15/30 125,000 135,631
--------------------------------------------------------------------------------------------------------------
VENEZUELA--1.7%
Venezuela (Republic of) Disc. Bonds, Series DL, 7%, 12/18/07(5) 575,999 452,160
--------------------------------------------------------------------------------------------------------------
Venezuela (Republic of) New Money Bonds, Series A, 7.125%, 12/18/05(5) 310,588 245,171
--------------------------------------------------------------------------------------------------------------
Venezuela (Republic of) Unsec. Bonds, 13.625%, 8/15/18 15,000 13,688
----------
711,019
</TABLE>
11 OPPENHEIMER WORLD BOND FUND
<PAGE> 14
STATEMENT OF INVESTMENTS Unaudited/Continued
<TABLE>
<CAPTION>
Principal Market Value
Amount See Note 1
--------------------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT OBLIGATIONS Continued
--------------------------------------------------------------------------------------------------------------
VIETNAM--0.6%
<S> <C> <C>
Vietnam (Government of) Bonds, 3.25%, 3/12/28(5) $ 740,000 $ 233,100
----------
Total Foreign Government Obligations (Cost $15,570,546) 14,847,429
--------------------------------------------------------------------------------------------------------------
LOAN PARTICIPATIONS--3.0%
Algeria (Republic of) Reprofiled Debt Loan Participation Nts., Tranche
1,7.188%, 9/4/06(4,5) 548,181 442,657
--------------------------------------------------------------------------------------------------------------
Algeria (Republic of) Trust III Nts., Tranche 3, 1%, 3/4/10(4,5) [JPY] 23,800,000 130,479
--------------------------------------------------------------------------------------------------------------
Algeria (Republic of) Unrestructured Nts., 6.615%, 1/22/01(4) [JPY] 16,200,000 145,774
--------------------------------------------------------------------------------------------------------------
ING Barings LLC, Bank Mandiri Loans, Series 5C, 7.313%, 6/1/05(4,5) 250,000 204,375
--------------------------------------------------------------------------------------------------------------
PT Bank Negara Indonesia Gtd. Nts.:
Series 3 yr., 9.625%, 8/25/01(4,5) 180,000 163,800
Series 4 yr., 9.875%, 8/25/02(4,5) 90,000 78,750
--------------------------------------------------------------------------------------------------------------
Trinidad & Tobago Loan Participation Agreement, Tranche A, 1.058%,
9/30/00(4,5) [JPY] 9,554,472 80,449
----------
Total Loan Participations (Cost $1,095,779) 1,246,284
--------------------------------------------------------------------------------------------------------------
CORPORATE BONDS AND NOTES--7.6%
AB Spintab, 5.50% Bonds, Series 169, 9/17/03 [SEK] 900,000 99,462
--------------------------------------------------------------------------------------------------------------
Bakrie Investindo, Zero Coupon Promissory Nts., 3/16/1999(4,9,10) [IDR] 850,000,000 16,088
--------------------------------------------------------------------------------------------------------------
Capital Gaming International, Inc., 11.50% Promissory Nts., 8/1/1995(9,10) 2,000 --
--------------------------------------------------------------------------------------------------------------
Empresa Electrica del Norte Grande SA, 7.75% Bonds, 3/15/06(6) 250,000 75,625
--------------------------------------------------------------------------------------------------------------
Export-Import Bank of Japan, 4.375% Unsec. Nts., 10/1/03 [JPY] 24,000,000 249,071
--------------------------------------------------------------------------------------------------------------
Federal National Mortgage Assn., 6.875% Sr. Unsec. Nts., 6/7/02 [GBP] 290,000 455,358
--------------------------------------------------------------------------------------------------------------
General Motors Acceptance Corp., 6.875% Nts., Series EC, 9/9/04 [GBP] 60,000 93,794
--------------------------------------------------------------------------------------------------------------
Hanvit Bank:
0%/12.75% Unsec. Sub. Nts., 3/1/10(6,12) 315,000 318,938
0%/12.75% Unsec. Sub. Nts., 3/1/10(12) 40,000 40,500
--------------------------------------------------------------------------------------------------------------
Moran Energy, Inc., 8.75% Cv. Sub. Debs., 1/15/08 200,000 190,500
--------------------------------------------------------------------------------------------------------------
Netia Holdings BV, 0%/11% Sr. Disc. Nts., 11/1/07(12) [DEM] 200,000 68,260
--------------------------------------------------------------------------------------------------------------
Netia Holdings II BV, 13.50% Sr. Nts., 6/15/09 [EUR] 100,000 95,459
--------------------------------------------------------------------------------------------------------------
NTL, Inc., 9.50% Sr. Unsec. Unsub. Nts., Series B, 4/1/08 [GBP] 65,000 95,609
--------------------------------------------------------------------------------------------------------------
Ongko International Finance Co. BV, 10.50% Sec. Nts., 3/29/04(4,9,10) 185,000 6,475
--------------------------------------------------------------------------------------------------------------
PT Polysindo Eka Perkasa:
11% Nts., 6/18/03(4,9,10) 50,000 6,500
20% Nts., 3/6/00(9,10) [IDR] 1,000,000,000 16,404
24% Nts., 6/19/03(9,10) [IDR] 492,900,000 8,085
--------------------------------------------------------------------------------------------------------------
Reliance Industries Ltd., 10.25% Unsec. Debs., Series B, 1/15/97 520,000 481,310
--------------------------------------------------------------------------------------------------------------
SanLuis Corp., SA de CV, 8.875% Sr. Unsec. Nts., 3/18/08 190,000 172,900
--------------------------------------------------------------------------------------------------------------
Telewest Communications plc, 0%/9.875% Sr. Nts., 4/15/09(6,12) [GBP] 160,000 145,839
--------------------------------------------------------------------------------------------------------------
Transportacion Maritima Mexicana SA de CV, 10% Sr. Unsec. Nts., 11/15/06 145,000 119,988
--------------------------------------------------------------------------------------------------------------
Tribasa Toll Road Trust, 10.50% Nts., Series 1993-A, 12/1/11(6) 184,770 100,700
--------------------------------------------------------------------------------------------------------------
Westpac Banking, 0.875% Sr. Unsec. Unsub. Bonds, 9/22/03 [JPY] 28,000,000 258,976
----------
Total Corporate Bonds and Notes (Cost $3,754,459) 3,115,841
</TABLE>
12 OPPENHEIMER WORLD BOND FUND
<PAGE> 15
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
--------------------------------------------------------------------------------------------------------------
COMMON STOCKS--0.1%
<S> <C> <C>
Optel, Inc.(4,10) 45 $ 1
--------------------------------------------------------------------------------------------------------------
Price Communications Corp. 1,105 22,376
----------
Total Common Stocks (Cost $11) 22,377
</TABLE>
<TABLE>
<CAPTION>
UNITS
---------------------------------------------------------------------------------------------------------------
RIGHTS, WARRANTS AND CERTIFICATES--0.0%
<S> <C> <C>
Gothic Energy Corp. Wts., Exp. 1/23/03 206 --
--------------------------------------------------------------------------------------------------------------
Gothic Energy Corp. Wts., Exp. 1/23/03(4) 119 1
--------------------------------------------------------------------------------------------------------------
Gothic Energy Corp. Wts., Exp. 9/1/04(4) 350 --
--------------------------------------------------------------------------------------------------------------
ICG Communications, Inc. Wts., Exp. 9/15/05 495 10,817
--------------------------------------------------------------------------------------------------------------
Loral Space & Communications Ltd. Wts., Exp. 1/15/07(4) 50 594
--------------------------------------------------------------------------------------------------------------
Mexico Value Rts., Exp. 6/30/03 30,000 --
--------------------------------------------------------------------------------------------------------------
Microcell Telecommunications, Inc. Wts., Exp. 6/1/06(6) 100 8,500
--------------------------------------------------------------------------------------------------------------
Protection One Alarm Monitoring, Inc. Wts., Exp. 6/30/05(4) 640 64
----------
Total Rights, Warrants and Certificates (Cost $1,731) 19,976
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
--------------------------------------------------------------------------------------------------------------
STRUCTURED INSTRUMENTS--3.2%
<S> <C> <C>
Citibank NA (Nassau Branch), Mexican Peso Linked Nts.:
18.85%, 3/3/03 [MXN] 4,351,530 444,560
26.10%, 10/29/01 [MXN] 1,828,750 205,342
27.40%, 9/20/01 338,000 356,421
--------------------------------------------------------------------------------------------------------------
Citibank NA (New York), Mexican Peso Linked Nts., 23.95%, 11/5/01 [MXN] 1,816,800 199,851
--------------------------------------------------------------------------------------------------------------
Credit Suisse First Boston Corp. (New York Branch), Russian OFZ Linked Nts.:
Series 25030, Zero Coupon, 146.53%, 12/15/01(4,7) [RUR] 259,000 3,983
Series 27001, 25%, 2/6/02(4,5) [RUR] 167,330 3,489
Series 27002, 25%, 5/22/02(4,5) [RUR] 75,800 1,502
Series 27003, 25%, 6/5/02(4,5) [RUR] 75,800 1,500
Series 27004, 24.868%, 9/18/02(4,5) [RUR] 83,250 1,593
Series 27005, 24.868%, 10/9/02(4,5) [RUR] 137,770 2,562
Series 27006, 24.868%, 1/22/03(4,5) [RUR] 83,320 1,495
Series 27007, 25%, 2/5/03(4,5) [RUR] 83,450 1,497
Series 27008, 25%, 5/21/03(4,5) [RUR] 75,800 1,316
Series 27009, 25%, 6/4/03(4,5) [RUR] 357,620 6,190
Series 27009, 25%, 6/4/03(4,5) [RUR] 772,702 13,374
Series 27010, 24.868%, 9/17/03(4,5) [RUR] 75,800 1,276
Series 27011, 24.868%, 10/8/03(4,5) [RUR] 420,370 6,820
Series 28001, 24.868%, 1/21/04(4,5) [RUR] 75,800 1,221
Series L, 24.868%, 9/18/02(4,5) [RUR] 68,820 1,317
Series L, 24.868%, 10/9/02(4,5) [RUR] 68,820 1,280
Series L, 24.868%, 1/22/03(4,5) [RUR] 68,820 1,235
Series L, 24.868%, 9/17/03(4,5) [RUR] 68,820 1,158
Series L, 24.868%, 10/8/03(4,5) [RUR] 68,820 1,117
Series L, 24.868%, 1/21/04(4,5) [RUR] 68,820 1,109
Series L, 25%, 2/6/02(4,5) [RUR] 68,820 1,435
Series L, 25%, 5/22/02(4,5) [RUR] 68,820 1,363
Series L, 25%, 6/5/02(4,5) [RUR] 68,820 1,362
Series L, 25%, 2/5/03(4,5) [RUR] 68,820 1,235
</TABLE>
13 OPENHEIMER WORLD BOND FUND
<PAGE> 16
STATEMENT OF INVESTMENTS Unaudited/Continued
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market Value
Amount See Note 1
--------------------------------------------------------------------------------------------------------------
STRUCTURED INSTRUMENTS Continued
<S> <C> <C>
Series L, 25%, 5/21/03(4,5) [RUR] 68,820 $ 1,195
Series L, 25%, 6/4/03(4,5) [RUR] 68,820 1,191
Series L, Zero Coupon, 53.77%, 12/15/01(4,7) [RUR] 235,000 3,614
ING Barings LLC, Zero Coupon USD Russian Equity Linked Nts., 4/19/01 550 50,649
----------
Total Structured Instruments (Cost $1,368,226) 1,323,252
</TABLE>
<TABLE>
<CAPTION>
DATE STRIKE CONTRACTS
--------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPTIONS PURCHASED--0.2%
Australian Dollar Call 7/3/00 AUD0.630 270,000 186
--------------------------------------------------------------------------------------------------------------
South Korean Won Call 6/1/00 KRW1100.0 704,000,000 2,021
--------------------------------------------------------------------------------------------------------------
Thailand Baht Call(4) 12/6/00 THB38.00 97,090,000 65,147
----------
Total Options Purchased (Cost $71,988) 67,354
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
--------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS--16.8%
<S> <C> <C>
Repurchase agreement with Deutsche Bank Securities Inc., 5.70%, dated 4/28/00,
to be repurchased at $6,903,278 on 5/1/00, collateralized by U.S. Treasury
Bonds, 5.25%-11.625%, 11/15/02-2/15/29, with a value
of $7,057,579 (Cost $6,900,000) $6,900,000 6,900,000
--------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $40,526,636) 95.2% 39,198,430
--------------------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 4.8 1,988,606
-------------------------------
NET ASSETS 100.0% $41,187,036
===============================
</TABLE>
<TABLE>
<CAPTION>
FOOTNOTES TO STATEMENT OF INVESTMENTS
PRINCIPAL AMOUNT IS REPORTED IN U.S. DOLLARS, EXCEPT FOR THOSE DENOTED IN THE FOLLOWING CURRENCIES:
<S> <C> <C> <C>
ARP Argentine Peso IDR Indonesian Rupiah
AUD Australian Dollar JPY Japanese Yen
CAD Canadian Dollar KRW South Korean Won
DEM German Mark MXN Mexican Nuevo Peso
DKK Danish Krone NOK Norwegian Krone
EUR Euro PLZ Polish Zloty
FRF French Franc RUR Russian Ruble
GBP British Pound Sterling SEK Swedish Krona
GRD Greek Drachma THB Thailand Baht
</TABLE>
(1.) 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.
(2.) Option footnote: Note: Insert worksheet option.
(3.) A sufficient amount of securities has been designated to cover outstanding
foreign currency contracts. See Note 5 of Notes to Financial Statements.
(4.) Identifies issues considered to be illiquid--See Note 8 of Notes to
Financial Statements.
(5.) Represents the current interest rate for a variable or increasing rate
security.
14 OPPENHEIMER WORLD BOND FUND
<PAGE> 17
FOOTNOTES TO STATEMENT OF INVESTMENTS Continued
(6.) Represents a security 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 $855,481 or 2.08% of the Fund's net assets
as of April 30, 2000.
(7.) For zero coupon bonds, the interest rate shown is the effective yield on
the date of purchase.
(8.) Securities with an aggregate market value of $118,312 are held in
collateralized accounts to cover initial margin requirements on open futures
sales contracts. See Note 6 of Notes to Financial Statements.
(9.) Issuer is in default.
(10.) Non-income-producing security.
(11.) When-issued security to be delivered and settled after April 30, 2000.
(12.) Denotes a step bond: a zero coupon bond that converts to a fixed or
variable interest rate at a designated future date.
DISTRIBUTION OF INVESTMENTS REPRESENTING GEOGRAPHIC DIVERSIFICATION, AS A
PERCENTAGE OF TOTAL INVESTMENTS AT VALUE, IS AS FOLLOWS:
<TABLE>
<CAPTION>
GEOGRAPHICAL DIVERSIFICATION MARKET VALUE PERCENT
----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
United States $ 19,492,385 49.8%
Mexico 1,939,444 5.0
France 1,543,421 4.0
Argentina 1,453,788 3.7
Canada 1,268,330 3.2
Russia 1,223,513 3.1
Brazil 1,091,988 2.8
Italy 1,086,557 2.8
Korea, Republic of (South) 783,275 2.0
Algeria 718,909 1.8
Venezuela 711,018 1.8
Great Britain 658,327 1.7
The Netherlands 584,378 1.5
Japan 565,517 1.4
Norway 532,873 1.4
Peru 566,890 1.4
Indonesia 500,478 1.3
Germany 479,777 1.2
India 481,310 1.2
Poland 435,838 1.1
Spain 389,388 1.0
Sweden 378,199 1.0
Jordan 320,963 0.8
Slovakia 323,000 0.8
Australia 258,976 0.7
Vietnam 233,100 0.6
Denmark 203,566 0.5
Panama 192,438 0.5
Greece 166,351 0.4
Bulgaria 104,625 0.3
Colombia 126,000 0.3
Turkey 135,631 0.3
Chile 75,625 0.2
Ivory Coast 92,103 0.2
Trinidad & Tobago 80,449 0.2
----------------------------------
TOTAL $39,198,430 100.0%
==================================
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
15 OPPENHEIMER WORLD BOND FUND
<PAGE> 18
STATEMENT OF ASSETS AND LIABILITIES April 30, 2000 / Unaudited
--------------------------------------------------------------------------------
ASSETS
<TABLE>
<CAPTION>
<S> <C>
Investments, at value (including repurchase agreement of $6,900,000)
(cost $40,526,636)--see accompanying statement $ 39,198,430
--------------------------------------------------------------------------------------------------------------
Unrealized appreciation on foreign currency contracts 62,092
--------------------------------------------------------------------------------------------------------------
Receivables and other assets:
Investments sold 2,413,272
Interest, dividends and principal paydowns 690,419
Shares of beneficial interest sold 318,332
Closed foreign currency contracts 54,945
Daily variation on futures contracts 198
Other 267
----------
Total assets 42,737,955
--------------------------------------------------------------------------------------------------------------
LIABILITIES
Bank overdraft 512,349
--------------------------------------------------------------------------------------------------------------
Unrealized depreciation on foreign currency contracts 113,673
--------------------------------------------------------------------------------------------------------------
Options written, at value (premiums received $1,192)--see accompanying statement 2,684
--------------------------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased (including $161,311 purchased on a when-issued basis) 518,325
Dividends 140,231
Trustees' compensation 78,086
Shareholder reports 75,049
Closed foreign currency contracts 24,901
Transfer and shareholder servicing agent fees 23,241
Shares of beneficial interest redeemed 20,640
Distribution and service plan fees 7,005
Other 34,735
----------
Total liabilities 1,550,919
--------------------------------------------------------------------------------------------------------------
NET ASSETS $41,187,036
===========
--------------------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
Par value of shares of capital stock $ 58,780
--------------------------------------------------------------------------------------------------------------
Additional paid-in capital 51,898,243
--------------------------------------------------------------------------------------------------------------
Undistributed net investment income 54,544
--------------------------------------------------------------------------------------------------------------
Accumulated net realized loss on investments and
foreign currency transactions (9,448,904)
--------------------------------------------------------------------------------------------------------------
Net unrealized depreciation on investments and translation of
assets and liabilities denominated in foreign currencies (1,375,627)
-----------
NET ASSETS $41,187,036
===========
</TABLE>
16 OPPENHEIMER WORLD BOND FUND
<PAGE> 19
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
<S> <C>
Class A Shares:
Net asset value and redemption price per share (based on net assets
of $34,790,384 and 4,965,320 shares of beneficial interest outstanding) $7.01
Maximum offering price per share (net asset value plus sales charge of
4.75% of offering price) $7.36
--------------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets
of $4,962,447 and 707,832 shares of beneficial interest outstanding) $7.01
--------------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net
assets of $1,434,205 and 204,913 shares of beneficial interest outstanding) $7.00
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
17 OPPENHEIMER WORLD BOND FUND
<PAGE> 20
STATEMENT OF OPERATIONS UNAUDITED
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED APRIL 30, 2000
---------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
<S> <C>
Interest $ 2,332,916
---------------------------------------------------------------------------------------------------------------
Dividends (net of foreign withholding taxes of $11) 65
------------
Total income 2,332,981
---------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 148,035
---------------------------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 34,733
Class B 19,305
Class C 5,879
---------------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees 46,003
---------------------------------------------------------------------------------------------------------------
Shareholder reports 27,325
---------------------------------------------------------------------------------------------------------------
Legal, auditing and other professional fees 22,754
---------------------------------------------------------------------------------------------------------------
Custodian fees and expenses 8,360
---------------------------------------------------------------------------------------------------------------
Other 13,404
-----------
Total expenses 325,798
Less expenses paid indirectly (3,845)
-----------
Net expenses 321,953
---------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 2,011,028
---------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments (including premiums on options exercised) 568,661
Closing of futures contracts 378,595
Closing and expiration of option contracts written 6,123
Foreign currency transactions (1,550,466)
-----------
Net realized loss (597,087)
---------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments 530,994
Translation of assets and liabilities denominated in foreign currencies (710,063)
-----------
Net change (179,069)
-----------
Net realized and unrealized loss (776,156)
---------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 1,234,872
===========
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
18 OPPENHEIMER WORLD BOND FUND
<PAGE> 21
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED
APRIL 30, 2000 YEAR ENDED
(UNAUDITED) OCTOBER 31, 1999
---------------------------------------------------------------------------------------------------------------
OPERATIONS
<S> <C> <C>
Net investment income $ 2,011,028 $ 4,341,652
--------------------------------------------------------------------------------------------------------------
Net realized loss (597,087) (2,898,137)
--------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation (179,069) 1,221,282
--------------------------------
Net increase in net assets resulting from operations 1,234,872 2,664,797
--------------------------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income:
Class A (1,609,030) (2,671,354)
Class B (159,584) (69,360)
Class C (48,146) (50,388)
--------------------------------------------------------------------------------------------------------------
Tax return of capital:
Class A -- (1,017,454)
Class B -- (80,561)
Class C -- (22,828)
--------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
Net increase (decrease) in net assets resulting from
beneficial interest transactions:
Class A 721,200 (3,211,011)
Class B 2,304,904 1,832,386
Class C 679,022 219,731
--------------------------------------------------------------------------------------------------------------
NET ASSETS
Total increase (decrease) 3,123,238 (2,406,042)
--------------------------------------------------------------------------------------------------------------
Beginning of period 38,063,798 40,469,840
--------------------------------
End of period [including undistributed (overdistributed) net
investment income of $54,544 and $(139,724), respectively] $41,187,036 $38,063,798
================================
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
19 OPPENHEIMER WORLD BOND FUND
<PAGE> 22
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS YEAR
ENDED ENDED
APRIL 30, 2000 OCTOBER 31,
CLASS A (UNAUDITED) 1999 1998 1997 1996 1995
---------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $7.10 $7.33 $8.28 $8.31 $7.91 $7.93
---------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .37 .80 .72 .72 .73 .71
Net realized and unrealized gain (loss) (.13) (.31) (.97) (.08) .34 (.05)
-----------------------------------------------------------------
Total income (loss) from
investment operations .24 .49 (.25) .64 1.07 .66
---------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.33) (.51) (.64) (.67) (.67) (.68)
Tax return of capital -- (.21) (.06) -- -- --
---------------------------------------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.33) (.72) (.70) (.67) (.67) (.68)
---------------------------------------------------------------------------------------------------------------
Net asset value, end of period $7.01 $7.10 $7.33 $8.28 $8.31 $7.91
=================================================================
Market value, end of period N/A N/A N/A $8.06 $7.50 $7.00
=================================================================
---------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(1) 3.44% 7.07% (3.25)% 7.94% 14.14% 8.81%
---------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT MARKET VALUE(2) N/A N/A N/A 16.42% 16.40% 9.09%
---------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(in thousands) $34,790 $34,553 $38,950 $54,781 $54,962 $52,340
---------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $34,598 $36,620 $48,542 $55,339 $53,309 $51,207
---------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(3)
Net investment income 10.32% 11.16% 8.94% 8.65% 9.04% 9.20%
Expenses 1.57% 1.74% 1.56%4 1.20%4 1.28%4 1.24%4
Expenses, net of indirect expenses 1.55% 1.72% N/A N/A N/A N/A
---------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 75% 237% 344% 289% 261% 344%
</TABLE>
(1.) Assumes a $1,000 hypothetical initial investment on the business day before
the first day of the fiscal period (or inception of 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. Prior
to April 27, 1998, the Fund operated as a closed-end investment company and
total return was calculated based on market value.
(2.) Assumes a hypothetical purchase at the current market price 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 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.
(3.) Annualized for periods of less than one full year.
(4.) Expense ratio has not been grossed up to reflect the effect of expenses
paid indirectly.
(5.) 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, 2000 were $26,987,197 and $30,999,680, respectively. Prior to
the period ended October 31, 1996, purchases and sales of investment securities
included mortgage dollar-rolls.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
20 OPPENHEIMER WORLD BOND FUND
<PAGE> 23
<TABLE>
<CAPTION>
SIX MONTHS YEAR
ENDED ENDED
APRIL 30, 2000 OCTOBER 31,
CLASS B (UNAUDITED) 1999 1998(1)
---------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
<S> <C> <C> <C>
Net asset value, beginning of period $7.11 $7.34 $8.15
---------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .36 .72 .25
Net realized and unrealized loss (.15) (.29) (.73)
--------------------------------
Total income (loss) from
investment operations .21 .43 (.48)
---------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.31) (.45) (.27)
Tax return of capital -- (.21) (.06)
----------------------------------------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.31) (.66) (.33)
----------------------------------------------------------------------------------------------------------------
Net asset value, end of period $7.01 $7.11 $7.34
================================
Market value, end of period N/A N/A N/A
================================
----------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(2) 2.94% 6.22% (5.93)%
----------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT MARKET VALUE(3) N/A N/A N/A
----------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(in thousands) $4,962 $2,736 $933
----------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $3,891 $1,607 $340
----------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(4)
Net investment income 9.17% 10.81% 10.97%(5)
Expenses 2.36% 2.49% 2.74%(5,6)
Expenses, net of indirect expenses 2.34% 2.47% N/A
---------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(7) 75% 237% 344%
</TABLE>
(1.) For the period from April 27, 1998 (inception of offering) to October 31,
1998.
(2.) Assumes a $1,000 hypothetical initial investment on the business day before
the first day of the fiscal period (or inception of 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. Prior
to April 27, 1998, the Fund operated as a closed-end investment company and
total return was calculated based on market value.
(3.) Assumes a hypothetical purchase at the current market price 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 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.
(4.) Annualized for periods of less than one full year.
(5.) This information may not be representative of future ratios.
(6.) Expense ratio has not been grossed up to reflect the effect of expenses
paid indirectly.
(7.) 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, 2000 were $26,987,197 and $30,999,680, respectively. Prior to
the period ended October 31, 1996, purchases and sales of investment securities
included mortgage dollar-rolls.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
21 OPPENHEIMER WORLD BOND FUND
<PAGE> 24
FINANCIAL HIGHLIGHTS Continued
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS YEAR
ENDED ENDED
APRIL 30, 2000 OCTOBER 31,
CLASS C (UNAUDITED) 1999 1998(1)
---------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
<S> <C> <C> <C>
Net asset value, beginning of period $7.10 $7.33 $8.15
---------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .35 .75 .34
Net realized and unrealized loss (.14) (.31) (.83)
--------------------------------
Total income (loss) from
investment operations .21 .44 (.49)
---------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.31) (.46) (.27)
Tax return of capital -- (.21) (.06)
---------------------------------------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.31) (.67) (.33)
---------------------------------------------------------------------------------------------------------------
Net asset value, end of period $7.00 $7.10 $7.33
================================
Market value, end of period N/A N/A N/A
================================
---------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(2) 2.92% 6.24% (6.09)%
---------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT MARKET VALUE(3) N/A N/A N/A
---------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(in thousands) $1,434 $775 $587
---------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $1,185 $809 $253
---------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(4)
Net investment income 9.09% 10.14% 9.24%(5)
Expenses 2.35% 2.54% 2.62%(5,6)
Expenses, net of indirect expenses 2.33% 2.52% N/A
---------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(7) 75% 237% 344%
</TABLE>
(1.) For the period from April 27, 1998 (inception of offering) to October 31,
1998.
(2.) Assumes a $1,000 hypothetical initial investment on the business day before
the first day of the fiscal period (or inception of 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. Prior
to April 27, 1998, the Fund operated as a closed-end investment company and
total return was calculated based on market value.
(3.) Assumes a hypothetical purchase at the current market price 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 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.
(4.) Annualized for periods of less than one full year.
(5.) This information may not be representative of future ratios.
(6.) Expense ratio has not been grossed up to reflect the effect of expenses
paid indirectly.
(7.) 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, 2000 were $26,987,197 and $30,999,680, respectively. Prior to
the period ended October 31, 1996, purchases and sales of investment securities
included mortgage dollar-rolls.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
22 OPPENHEIMER WORLD BOND FUND
<PAGE> 25
NOTES TO FINANCIAL STATEMENTS Unaudited
===============================================================================
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer World Bond Fund (the Fund) is registered under the Investment
Company Act of 1940, as amended, as an open-end management investment company.
The Fund's investment objective is to seek total return. The Fund's investment
advisor is OppenheimerFunds, Inc. (the Manager).
The Fund offers Class A, Class B and Class C shares. Class A shares are
sold at their offering price, which is normally net asset value plus an initial
sales charge. Class B and Class C shares are sold without an initial sales
charge but may be subject to a contingent deferred sales charge (CDSC). All
classes of shares have identical rights to earnings, assets and voting
privileges, except that each class has its own expenses directly attributable to
that class and exclusive voting rights with respect to matters affecting that
class. Classes A, B and C shares have separate distribution and/or service
plans. 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.
--------------------------------------------------------------------------------
SECURITIES VALUATION. Securities for which quotations are readily available are
valued at the last sale price, or if in the absence of a sale, at the last sale
price on the prior trading day if it is within the spread of the closing bid and
asked prices, and if not, at the closing bid price. Securities (including
restricted securities) for which quotations are not readily available are valued
primarily using dealer-supplied valuations, a portfolio pricing service
authorized by the Board of Trustees, or at their fair value. Fair value is
determined in good faith under consistently applied procedures under the
supervision of the Board of Trustees. 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, dealer
or pricing service. Short-term "money market type" debt securities with
remaining maturities of sixty days or less are valued at cost (or last
determined market value) and adjusted for amortization or accretion to maturity
of any premium or discount.
--------------------------------------------------------------------------------
STRUCTURED NOTES. The Fund invests in foreign currency-linked structured notes
whose market value and redemption price are linked to foreign currency exchange
rates. The structured notes may be leveraged, which increases the notes'
volatility relative to the face of the security. Fluctuations in value of these
securities are recorded as unrealized gains and losses in the accompanying
financial statements. As of April 30, 2000, the market value of these securities
comprised 3.21% of the Fund's net assets and resulted in realized and unrealized
losses of $322,391. The Fund also hedges a portion of the foreign currency
exposure generated by these securities, as discussed in Note 5.
23 OPPENHEIMER WORLD BOND FUND
<PAGE> 26
NOTES TO FINANCIAL STATEMENTS Unaudited/Continued
===============================================================================
1. SIGNIFICANT ACCOUNTING POLICIES Continued
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. Normally the
settlement date occurs within six months after the transaction date; however,
the Fund may, from time to time, purchase securities whose settlement date
extends beyond six months and possibly as long as two years or more beyond trade
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 segregated assets with a market value equal to or
greater than 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, 2000, the Fund had
entered into net outstanding when-issued or forward commitments of $161,311.
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 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. As of April 30, 2000, securities with an
aggregate market value of $613,430, representing 1.49% of the Fund's net assets,
were in 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 foreign 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.
24 OPPENHEIMER WORLD BOND FUND
<PAGE> 27
-------------------------------------------------------------------------------
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, GAINS AND LOSSES. Income, expenses (other than
those attributable to a specific class), 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. As of October 31, 1999, the
Fund had available for federal income tax purposes an unused capital loss
carryover of approximately $8,678,000, which expires between 2002 and 2007.
The Manager believes that for the Fund's fiscal year ending October 31,
2000, a tax return of capital is likely to occur. The dollar and per share
amounts for the fiscal year are not estimable as of April 30, 2000.
-------------------------------------------------------------------------------
TRUSTEES' COMPENSATION. The Fund has adopted an unfunded retirement plan for the
Fund's independent Board of 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, 2000, a credit of $6,368 was made for the Fund's projected
benefit obligations and payments of $2,592 were made to retired trustees,
resulting in an accumulated liability of $78,308 as of April 30, 2000.
The Board of Trustees has adopted a deferred compensation plan for
independent trustees that enables trustees to elect to defer receipt of all or a
portion of annual compensation they are entitled to receive from the Fund. Under
the plan, the compensation deferred is periodically adjusted as though an
equivalent amount had been invested for the Board of Trustees in shares of one
or more Oppenheimer funds selected by the trustee. The amount paid to the Board
of Trustees under the plan will be determined based upon the performance of the
selected funds. Deferral of trustees' fees under the plan will not affect the
net assets of the Fund, and will not materially affect the Fund's assets,
liabilities or net investment income per share.
-------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations,
are recorded on the ex-dividend date.
25 OPPENHEIMER WORLD BOND FUND
<PAGE> 28
NOTES TO FINANCIAL STATEMENTS Unaudited/Continued
===============================================================================
1. SIGNIFICANT ACCOUNTING POLICIES Continued
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 distributions made
during the year from net investment income or net realized gains may differ from
its 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 fiscal year in which the income or realized gain
was recorded by the Fund.
-------------------------------------------------------------------------------
EXPENSE OFFSET ARRANGEMENTS. Expenses paid indirectly represent a reduction of
custodian fees for earnings on cash balances maintained by the Fund.
-------------------------------------------------------------------------------
OTHER. Investment transactions are accounted for as of trade date and dividend
income is recorded on the ex-dividend date. Discount on securities purchased is
amortized over the life of the respective securities, in accordance with federal
income tax requirements. Realized gains and losses on investments and options
written 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.
26 OPPENHEIMER WORLD BOND FUND
<PAGE> 29
===============================================================================
2. SHARES OF BENEFICIAL INTEREST
The Fund has authorized an unlimited number of $.01 par value shares of
beneficial interest of each class. Transactions in shares of beneficial interest
for the six months ended April 30, 2000 were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED APRIL 30, 2000 YEAR ENDED OCTOBER 31, 1999
SHARES AMOUNT SHARES AMOUNT
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CLASS A
Sold 637,479 $ 4,549,603 390,587 $ 2,817,009
Dividends and/or
distributions reinvested 79,831 565,789 163,761 1,175,569
Redeemed (616,731) (4,394,192) (1,001,683) (7,203,589)
---------------------------------------------------------------------
Net increase (decrease) 100,579 $ 721,200 (447,335) $(3,211,011)
=====================================================================
-----------------------------------------------------------------------------------------------------------------
CLASS B
Sold 391,157 $2,792,563 361,517 $ 2,585,614
Dividends and/or
distributions reinvested 12,762 90,542 13,053 93,470
Redeemed (81,039) (578,201) (116,778) (846,698)
---------------------------------------------------------------------
Net increase 322,880 $2,304,904 257,792 $ 1,832,386
=====================================================================
-----------------------------------------------------------------------------------------------------------------
CLASS C
Sold 122,018 $ 867,427 102,151 $ 744,459
Dividends and/or
distributions reinvested 3,278 23,219 4,047 29,065
Redeemed (29,593) (211,624) (77,118) (553,793)
---------------------------------------------------------------------
Net increase 95,703 $ 679,022 29,080 $ 219,731
=====================================================================
=================================================================================================================
</TABLE>
3. UNREALIZED GAINS AND LOSSES ON SECURITIES
As of April 30, 2000, net unrealized depreciation on securities and options
written of $1,329,698 was composed of gross appreciation of $1,097,776, and
gross depreciation of $2,427,474.
27 OPPENHEIMER WORLD BOND FUND
<PAGE> 30
NOTES TO FINANCIAL STATEMENTS Unaudited/Continued
===============================================================================
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
MANAGEMENT FEES. Management fees paid to the Manager were in accordance with the
investment advisory agreement with the Fund which provides for a fee of 0.75% of
the first $200 million of average annual net assets of the Fund, 0.72% of the
next $200 million, 0.69% of the next $200 million, 0.66% of the next $200
million, 0.60% of the next $200 million and 0.58% of average annual net assets
in excess of $1 billion. The Fund's management fee for the six months ended
April 30, 2000 was 0.75% of average annual net assets for each class of shares,
annualized for periods of less than one full year.
-------------------------------------------------------------------------------
TRANSFER AGENT FEES. OppenheimerFunds Services (OFS), a division of the Manager,
is the transfer and shareholder servicing agent for the Fund and for other
Oppenheimer funds. OFS's total costs of providing such services are allocated
ratably to these funds.
-------------------------------------------------------------------------------
DISTRIBUTION AND SERVICE PLAN FEES. Under its General Distributor's Agreement
with the Manager, the Distributor acts as the Fund's principal underwriter in
the continuous public offering of the different classes of shares of the Fund.
The compensation paid to (or retained by) the Distributor from the sale of
shares or on the redemption of shares is shown in the table below for the period
indicated.
<TABLE>
<CAPTION>
AGGREGATE CLASS A COMMISSIONS COMMISSIONS COMMISSIONS
FRONT-END FRONT-END ON CLASS A ON CLASS B ON CLASS C
SIX SALES CHARGES SALES CHARGES SHARES SHARES SHARES
MONTHS ON CLASS A RETAINED BY ADVANCED BY ADVANCED BY ADVANCED BY
ENDED SHARES DISTRIBUTOR DISTRIBUTOR(1) DISTRIBUTOR(1) DISTRIBUTOR(1)
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
April 30, 2000 $62,744 $19,346 $-- $73,413 $8,134
</TABLE>
(1.) The Distributor advances commission payments to dealers for certain sales
of Class A shares and for sales of Class B and Class C shares from its own
resources at the time of sale.
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C
SIX CONTINGENT DEFERRED CONTINGENT DEFERRED CONTINGENT DEFERRED
MONTHS SALES CHARGES SALES CHARGES SALES CHARGES
ENDED RETAINED BY DISTRIBUTOR RETAINED BY DISTRIBUTOR RETAINED BY DISTRIBUTOR
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
April 30, 2000 $-- $3,375 $1,074
</TABLE>
The Fund has adopted a Service Plan for Class A shares and Distribution and
Service Plans for Class B and Class C shares under Rule 12b-1 of the Investment
Company Act. Under those plans the Fund pays the Distributor for all or a
portion of its costs incurred in connection with the distribution and/or
servicing of the shares of the particular class.
28 OPPENHEIMER WORLD BOND FUND
<PAGE> 31
-------------------------------------------------------------------------------
CLASS A SERVICE PLAN FEES. Under the Class A service plan, the Distributor
currently uses the fees it receives from the Fund to pay brokers, dealers and
other financial institutions. The Class A service plan permits reimbursements to
the Distributor at a rate of up to 0.25% of average annual net assets of Class A
shares purchased. The Distributor makes payments to plan recipients quarterly at
an annual rate not to exceed 0.25% of the average annual net assets consisting
of Class A shares of the Fund. For the six months ended April 30, 2000, payments
under the Class A plan totaled $34,733, all of which was paid by the Distributor
to recipients. Any unreimbursed expenses the Distributor incurs with respect to
Class A shares in any fiscal year cannot be recovered in subsequent years.
-------------------------------------------------------------------------------
CLASS B AND CLASS C DISTRIBUTION AND SERVICE PLAN FEES. Under each plan, service
fees and distribution fees are computed on the average of the net asset value of
shares in the respective class, determined as of the close of each regular
business day during the period. The Class B and Class C plans provide for the
Distributor to be compensated at a flat rate, whether the Distributor's
distribution expenses are more or less than the amounts paid by the Fund under
the plan during the period for which the fee is paid.
The Distributor retains the asset-based sales charge on Class B shares. The
Distributor retains the asset-based sales charge on Class C shares during the
first year the shares are outstanding. The asset-based sales charges on Class B
and Class C shares allow investors to buy shares without a front-end sales
charge while allowing the Distributor to compensate dealers that sell those
shares.
The Distributor's actual expenses in selling Class B and Class C shares may
be more than the payments it receives from the contingent deferred sales charges
collected on redeemed shares and asset-based sales charges from the Fund under
the plans. If any plan is terminated by the Fund, the Board of Trustees may
allow the Fund to continue payments of the asset-based sales charge to the
Distributor for distributing shares before the plan was terminated. The plans
allow for the carryforward of distribution expenses, to be recovered from
asset-based sales charges in subsequent fiscal periods.
Distribution fees paid to the Distributor for the six months ended April 30,
2000, were as follows:
<TABLE>
<CAPTION>
DISTRIBUTOR'S DISTRIBUTOR'S
AGGREGATE UNREIMBURSED
UNREIMBURSED EXPENSES AS %
TOTAL PAYMENTS AMOUNT RETAINED EXPENSES OF NET ASSETS
UNDER PLAN BY DISTRIBUTOR UNDER PLAN OF CLASS
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class B Plan $19,305 $17,419 $172,423 3.47%
Class C Plan 5,879 3,101 16,055 1.12
</TABLE>
29 OPPENHEIMER WORLD BOND FUND
<PAGE> 32
NOTES TO FINANCIAL STATEMENTS Unaudited/Continued
===============================================================================
5. FOREIGN CURRENCY CONTRACTS
A foreign currency contract is a commitment to purchase or sell a foreign
currency at a future date, at a negotiated rate. The Fund may enter into foreign
currency contracts for operational purposes and to seek to protect against
adverse exchange rate fluctuations. Risks to the Fund include the potential
inability of the counterparty to meet the terms of the contract.
The net U.S. dollar value of foreign currency underlying all contractual
commitments held by the Fund and the resulting unrealized appreciation or
depreciation are determined using foreign currency exchange rates as provided by
a reliable bank, dealer or pricing service. Unrealized appreciation and
depreciation on foreign currency contracts are reported in the Statement of
Assets and Liabilities.
The Fund may realize a gain or loss upon the closing or settlement of the
foreign currency transactions. Realized gains and losses are reported with all
other foreign currency gains and losses in the Statement of Operations.
Securities denominated in foreign currency to cover net exposure on
outstanding foreign currency contracts are noted in the Statement of Investments
where applicable.
As of April 30, 2000, the Fund had outstanding foreign currency contracts as
follows:
<TABLE>
<CAPTION>
CONTRACT VALUATION
AMOUNT AS OF UNREALIZED UNREALIZED
CONTRACT DESCRIPTION EXPIRATION DATE (000s) APRIL 30, 2000 APPRECIATION DEPRECIATION
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CONTRACTS TO PURCHASE
British Pound Sterling (GBP) 5/12/00 GBP270 $422,528 $ -- $ 3,540
Euro (EUR) 6/27/00 EUR175 160,104 -- 9,497
Japanese Yen (JPY) 5/8/00-6/7/00 JPY340,300 3,167,644 -- 73,052
---------------------
-- 86,089
---------------------
CONTRACTS TO SELL
Brazilian Real (BRR) 5/2/00 BRR842 466,734 -- 13,490
British Pound Sterling (GBP) 5/15/00 GBP175 273,866 2,984
Euro (EUR) 5/4/00-6/27/00 EUR798 729,425 17,674 495
Japanese Yen (JPY) 5/8/00-6/5/00 JPY168,600 1,565,432 41,434 --
Polish Zloty (PLZ) 6/5/00 PLZ1,252 280,105 -- 4,105
South African Rand (ZAR) 5/2/00 ZAR5,719 843,155 -- 9,494
---------------------
62,092 27,584
---------------------
Total Unrealized Appreciation and Depreciation $62,092 $113,673
=====================
</TABLE>
30 OPPENHEIMER WORLD BOND FUND
<PAGE> 33
-------------------------------------------------------------------------------
6. FUTURES CONTRACTS
The Fund may buy and sell futures contracts in order to gain exposure to or to
seek to 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 (initial margin) in an amount 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 may recognize 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.
As of April 30, 2000, the Fund had outstanding futures contracts as follows:
<TABLE>
<CAPTION>
UNREALIZED
EXPIRATION NUMBER OF VALUATION AS OF APPRECIATION
CONTRACT DESCRIPTION DATE CONTRACTS APRIL 30, 2000 (DEPRECIATION)
-----------------------------------------------------------------------------------------------------------------
CONTRACTS TO PURCHASE
<S> <C> <C> <C> <C>
Euro-Bobl 6/8/00 5 $470,550 $ 2,369
Euro-Bund 6/8/00 6 574,283 11,920
------------
14,289
------------
CONTRACTS TO SELL
Euro-Schatz 6/8/00 10 931,531 (820)
------------
$13,469
============
</TABLE>
31 OPPENHEIMER WORLD BOND FUND
<PAGE> 34
NOTES TO FINANCIAL STATEMENTS Unaudited/Continued
===============================================================================
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 note
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, 2000 was as follows:
<TABLE>
<CAPTION>
CALL OPTIONS PUT OPTIONS
----------------------------- -------------------------------
NUMBER OF AMOUNT OF NUMBER OF AMOUNT OF
OPTIONS PREMIUMS OPTIONS PREMIUMS
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Options outstanding at
October 31, 1999 -- $ -- 2,319,290 $ 12,682
Options written 80,000,000 8,283 270,000 1,192
Options closed or expired (80,000,000) (8,283) -- --
Options exercised -- -- (2,319,290) (12,682)
-----------------------------------------------------------------------
Options outstanding at
April 30, 2000 -- $ -- 270,000 $ 1,192
=======================================================================
</TABLE>
32 OPPENHEIMER WORLD BOND FUND
<PAGE> 35
-------------------------------------------------------------------------------
8. ILLIQUID SECURITIES
As of April 30, 2000, investments in securities included issues that are
illiquid. 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 periodically) in illiquid securities. The
aggregate value of illiquid securities subject to this limitation as of April
30, 2000 was $2,374,720, which represents 5.77% of the Fund's net assets.
-------------------------------------------------------------------------------
9. BANK BORROWINGS
The Fund may borrow from a bank for temporary or emergency purposes including,
without limitation, funding of shareholder redemptions provided asset coverage
for borrowings exceeds 300%. The Fund has entered into an agreement which
enables it to participate with other Oppenheimer funds in an unsecured line of
credit with a bank, which permits borrowings up to $400 million, collectively.
Interest is charged to each fund, based on its borrowings, at a rate equal to
the Federal Funds Rate plus 0.45%. Borrowings are payable 30 days after such
loan is executed. The Fund also pays a commitment fee equal to its pro rata
share of the average unutilized amount of the credit facility at a rate of 0.08%
per annum.
The Fund had no borrowings outstanding during the six months ended April
30, 2000.
33 OPPENHEIMER WORLD BOND FUND
<PAGE> 36
OPPENHEIMER WORLD BOND FUND
<TABLE>
<CAPTION>
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<S> <C>
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
Phillip A. Griffiths, Trustee
Benjamin Lipstein, Trustee
Elizabeth B. Moynihan, Trustee
Kenneth A. Randall, Trustee
Edward V. Regan, Trustee
Russell S. Reynolds, Jr., Trustee
Clayton K. Yeutter, Trustee
Ruggero de'Rossi, Vice President
Arthur P. Steinmetz, Vice President
Andrew J. Donohue, Secretary
Brian W. Wixted, Treasurer
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Robert G. Zack, Assistant Secretary
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INVESTMENT ADVISOR OppenheimerFunds, Inc.
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DISTRIBUTOR OppenheimerFunds Distributor, Inc.
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TRANSFER AND SHAREHOLDER OppenheimerFunds Services
SERVICING AGENT
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CUSTODIAN OF The Bank of New York
PORTFOLIO SECURITIES
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INDEPENDENT AUDITORS KPMG LLP
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LEGAL COUNSEL Mayer, Brown & Platt
The financial statements included herein have been taken from
the records of the Fund without examination of those records by
the independent auditors.
This is a copy of a report to shareholders of Oppenheimer World
Bond Fund. This report must be preceded or accompanied by a
Prospectus of Oppenheimer World Bond 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 THE POSSIBLE LOSS OF THE PRINCIPAL AMOUNT INVESTED.
OPPENHEIMER FUNDS ARE DISTRIBUTED BY OPPENHEIMERFUNDS
DISTRIBUTOR, INC., TWO WORLD TRADE CENTER, NEW YORK, NY
10048-0203.
</TABLE>
(C)Copyright 2000 OppenheimerFunds, Inc. All rights reserved.
34 OPPENHEIMER WORLD BOND FUND
<PAGE> 37
OPPENHEIMERFUNDS FAMILY
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<TABLE>
<CAPTION>
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<S> <C> <C>
GLOBAL EQUITY
Developing Markets Fund Global Fund
International Small Company Fund Quest Global Value Fund
Europe Fund Global Growth & Income Fund
International Growth Fund
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EQUITY
Stock Stock & Bond
Enterprise Fund(1) Main Street(R) Growth & Income Fund
Discovery Fund Quest Opportunity Value Fund
Main Street(R) Small Cap Fund Total Return Fund
Quest Small Cap Value Fund Quest Balanced Value Fund
MidCap Fund Capital Income Fund(2)
Capital Appreciation Fund Multiple Strategies Fund
Growth Fund Disciplined Allocation Fund
Disciplined Value Fund Convertible Securities Fund
Quest Value Fund
Trinity Growth Fund Specialty
Trinity Core Fund Real Asset Fund
Trinity Value Fund Gold & Special Minerals Fund
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FIXED INCOME
Taxable Municipal
International Bond Fund California Municipal Fund(3)
World Bond Fund Main Street(R) California Municipal Fund(3)
High Yield Fund Florida Municipal Fund(3)
Champion Income Fund New Jersey Municipal Fund(3)
Strategic Income Fund New York Municipal Fund(3)
Bond Fund Pennsylvania Municipal Fund(3)
Senior Floating Rate Fund Municipal Bond Fund
U.S. Government Trust Insured Municipal Fund
Limited-Term Government Fund Intermediate Municipal Fund
Rochester Division
Rochester Fund Municipals
Limited Term New York Municipal Fund
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MONEY MARKET(4)
Money Market Fund Cash Reserves
</TABLE>
(1.) Effective July 1, 1999, this fund is closed to new investors. See
prospectus for details.
(2.) On 4/1/99, the Fund's name was changed from "Oppenheimer Equity Income
Fund."
(3.) Available to investors only in certain states.
(4.) An investment in money market funds is neither insured nor guaranteed by
the Federal Deposit Insurance Corporation or any other government agency.
Although these funds may seek to preserve the value of your investment at $1.00
per share, it is possible to lose money by investing in these funds.
35 OPPENHEIMER WORLD BOND FUND
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<PAGE> 39
INFORMATION AND SERVICES
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As an Oppenheimer fund shareholder, you can benefit from special
services designed to make investing simple. Whether it's
automatic investment plans, timely market updates, or immediate
account access, you can count on us whenever you need
assistance. So call us today, or visit our website==we're here
to help.
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INTERNET
24-hr access to account information and transactions(1)
WWW.OPPENHEIMERFUNDS.COM
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GENERAL INFORMATION
Mon-Fri 8am-9pm ET, Sat 10am-4pm ET
1.800.525.7048
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TELEPHONE TRANSACTIONS
Mon-Fri 8am-9pm ET, Sat 10am-4pm ET
1.800.852.8457
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PHONELINK
24-hr automated information and automated transactions
1.800.533.3310
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TELECOMMUNICATIONS DEVICE FOR THE DEAF (TDD)
Mon-Fri 9am-6:30pm
ET 1.800.843.4461
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OPPENHEIMERFUNDS MARKET HOTLINE
24 hours a day, timely and insightful messages on the economy
and issues that may affect your investments
1.800.835.3104
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TRANSFER AND SHAREHOLDER SERVICING AGENT
OppenheimerFunds Services
P.O. Box 5270, Denver, CO 80217-5270
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TICKER SYMBOLS Class A: OWBAX Class B: N/A Class C: N/A
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(1.) At times this website may be inaccessible or its
transaction feature may be unavailable.
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