<PAGE> 1
[PHOTO]
ANNUAL REPORT OCTOBER 31, 2000
Oppenheimer
WORLD BOND FUND
[OPPENHEIMERFUNDS LOGO]
THE RIGHT WAY TO INVEST
<PAGE> 2
REPORT HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CONTENTS
<S> <C>
1 President's Letter
3 An Interview
with Your Fund's
Managers
7 Fund Performance
12 FINANCIAL
STATEMENTS
36 INDEPENDENT
AUDITORS' REPORT
37 Federal
Income Tax
Information
38 Officers and Trustees
</TABLE>
THE FUND HAS BENEFITED FROM ITS INVESTMENTS IN BONDS from the emerging markets
of Latin America and Eastern Europe. THE RISING PRICE OF OIL HAS CREATED
INVESTMENT OPPORTUNITIES IN OIL-PRODUCING NATIONS such as Russia, Venezuela and
Mexico.
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
AVERAGE ANNUAL
TOTAL RETURNS*
For the 1-Year Period
Ended 10/31/00
Class A
Without With
Sales Chg. Sales Chg.
--------------------------------------------------------------------------------
<S> <C>
5.09% 0.09%
Class B
Without With
Sales Chg. Sales Chg.
--------------------------------------------------------------------------------
4.21% -0.64%
Class C
Without With
Sales Chg. Sales Chg.
--------------------------------------------------------------------------------
4.18% 3.21%
</TABLE>
*SEE NOTES ON PAGE 10 FOR FURTHER DETAILS.
<PAGE> 3
PRESIDENT'S LETTER
--------------------------------------------------------------------------------
[PHOTO]
BRIDGET A. MACASKILL
PRESIDENT
OPPENHEIMER
WORLD BOND FUND
DEAR SHAREHOLDER,
Over the past several decades, our investment teams have learned the importance
of avoiding complacency when it comes to navigating the financial
markets--especially when times are good. Right now, times appear particularly
good. The U.S. economy is in its tenth year of expansion. In the bond market,
U.S. Treasury issues have been performing favorably over the past year. In
addition, despite volatility in the second quarter, the stock market has been
providing attractive returns from a wide spectrum of industry sectors,
capitalization ranges and investment styles.
We have arrived at this juncture after months of monitoring the rapid
pace of global economic growth and its implications for inflation, as well as
the Federal Reserve Board's evolving monetary policy. At this point, economic
indicators suggest a dampening of short-term inflationary pressures. While
recent increases in oil prices are certainly taking their toll, we don't believe
this signals a return to 1970's-style inflation. Accordingly, if the Fed
continues in its diligence, the economy could maintain its healthy rate of
growth.
In the bond market, the achievement of a federal budget surplus has
prompted the Treasury to buy back many of its long-term securities. The
resulting supply shortage boosted these securities' returns, causing an
inversion of the yield curve-- an unusual situation in which shorter term
Treasuries yield more than their longer term counterparts. Other bond sectors
are offering many opportunities in the form of attractive valuations.
Perhaps most important is that we have begun to see encouraging signs in
the stock market. Formerly high-flying Internet stocks have generally come down
to earth, and investors have begun to refocus on companies with strong business
fundamentals and justifiable valuations. Investors have also returned to
long-neglected, value-oriented companies.
1 OPPENHEIMER WORLD BOND FUND
<PAGE> 4
PRESIDENT'S LETTER
--------------------------------------------------------------------------------
What else do these various trends tell us? They tell us that the ability
to discriminate between long-term potential and short-lived fads has become more
critical than ever. Trying to generate good long-term performance requires
tracking the best companies through intensive research, combined with
hard-earned experience.
At OppenheimerFunds, our seasoned portfolio management teams fight
complacency by remaining constantly aware of the risks that face the economy and
financial markets. Virtually anything could affect the overall markets--a surge
in inflation, a decline in productivity, deteriorating corporate earnings, or
even the new Administration's proposals regarding tax reform, healthcare and
Social Security. However, by remaining vigilant in our quest for fundamentally
sound businesses, we believe we can find good investments that can weather
market volatility.
In this environment, we encourage you to consult your financial advisor
and to stay on track with your long-term financial plan. For our part, we will
continue to monitor the opportunities and risks ever present in the financial
markets. Thank you for your confidence in OppenheimerFunds, The Right Way to
Invest.
Sincerely,
/s/ BRIDGET A. MACASKILL
Bridget A. Macaskill
November 21, 2000
THESE GENERAL MARKET VIEWS REPRESENT OPINIONS OF OPPENHEIMERFUNDS, INC.
AND ARE NOT INTENDED TO PREDICT OR DEPICT PERFORMANCE OF THE SECURITIES MARKETS
OR ANY PARTICULAR FUND. SPECIFIC DISCUSSION, AS IT APPLIES TO YOUR FUND, IS
CONTAINED IN THE PAGES THAT FOLLOW. STOCKS AND BONDS HAVE DIFFERENT TYPES OF
INVESTMENT RISKS; STOCKS ARE SUBJECT TO MARKET VOLATILITY AND BONDS ARE SUBJECT
TO CREDIT AND INTEREST RATE RISKS.
2 OPPENHEIMER WORLD BOND FUND
<PAGE> 5
AN INTERVIEW WITH YOUR FUND'S MANAGERS
--------------------------------------------------------------------------------
[PHOTO]
PORTFOLIO MANAGEMENT
TEAM (L TO R)
ART STEINMETZ
RUGGERO DE'ROSSI
Q. HOW DID OPPENHEIMER WORLD BOND FUND PERFORM OVER THE ONE-YEAR PERIOD THAT
ENDED OCTOBER 31, 2000?
A. In light of mixed conditions in the world's various bond markets, we are
generally pleased with the Fund's performance over the past 12 months. The areas
that contributed positively to the Fund were the emerging markets, especially
bonds issued by countries in Eastern Europe and Latin America. By contrast,
areas that contributed negatively to the Fund's performance included bonds from
most developed nations, including corporate bonds in the United States and
Europe. These particular bonds lagged because of concerns related to potential
inflationary pressures and rising interest rates.(1)
WHY DID THE EMERGING MARKETS OUTPERFORM THE DEVELOPED MARKETS OVER THE PAST
YEAR?
The emerging markets in Asia, Latin America and Eastern Europe began the
reporting period in the midst of a recovery from their lows of 1998, when the
global credit and currency crisis hit their fixed-income markets particularly
hard. That recovery continued into 2000 as more developing nations adopted
long-awaited market reforms and solidified their economic foundations. In
contrast, most developed markets began the period enjoying strong economic
growth characterized by productivity improvements and low inflation. Many of
these factors were already reflected in their bond markets when the fiscal year
began. However, when robust growth later threatened to rekindle long-dormant
inflationary pressures, their bond markets declined from relatively high levels.
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
--------------------------------------------------------------------------------
"The strong U.S. economy has allowed export-oriented industries to drive strong
rebounds in the world's developing economies."
In addition, as its economy has slowed, the U.S. market has recently
experienced a deterioration of corporate credit quality. Default rates have
risen, as has the number of companies receiving credit-rating downgrades from
the major bond rating agencies.
WHY IS U.S. CREDIT QUALITY DETERIORATING DURING A TIME OF POSITIVE ECONOMIC
GROWTH?
There are two primary reasons for this phenomenon. First, although consumer
spending has remained strong, many U.S. businesses have not been able to raise
prices to offset higher costs for raw materials. Second, many U.S. companies are
encountering greater difficulty obtaining financing as lenders have become more
cautious in a slower economy. Fortunately, we have recently focused primarily on
industries that tend not to come to the market for refinancing on a regular
basis.
HOW HAVE THE FUND'S U.S. GOVERNMENT HOLDINGS FARED?
U.S. Government bonds have been one of the bright spots in the world bond
markets over the past year. This is especially true of long-term U.S. Treasury
bonds, which have benefited from a federal budget surplus. This is primarily
because the government has been using a portion of the budget surplus to buy
back higher-yielding, seasoned bonds, thereby reducing the available supply of
government-guaranteed securities. At the same time, U.S. Treasury bonds have
remained in demand by domestic and foreign investors seeking a haven for their
assets. As a result, prices of these bonds have remained relatively high.
Our holdings of mortgage-backed securities issued by U.S. Government
agencies have also provided positive returns, although not nearly as attractive
as those produced by U.S. Treasury securities. Mortgage-backed securities'
yields have generally been stable over the past 12 months, as a reduction in
pre-payment risk--the tendency of homeowners to refinance or repay their
mortgages early--for the most part offset the effects of higher interest rates.
4 OPPENHEIMER WORLD BOND FUND
<PAGE> 7
<TABLE>
<CAPTION>
--------------------------------------------------
AVERAGE ANNUAL
TOTAL RETURNS
For the Periods Ended 9/30/00(2)
<S> <C> <C>
Class A
1-Year 5-Year 10-Year
--------------------------------------------------
3.23% 5.40% 6.71%
Class B Since
1-Year 5-Year Inception
--------------------------------------------------
2.64% N/A 1.06%
Class C Since
1-Year 5-Year Inception
--------------------------------------------------
6.60% N/A 2.02%
--------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
--------------------------------------------------
STANDARDIZED YIELDS(3)
For the 30 Days Ended 10/31/00
<S> <C>
--------------------------------------------------
Class A 7.64%
--------------------------------------------------
Class B 7.15
--------------------------------------------------
Class C 7.19
--------------------------------------------------
</TABLE>
HOW WAS THE FUND MANAGED IN THIS ENVIRONMENT?
We have generally reduced our exposure to bonds denominated in the euro, and we
have increased our exposure to the emerging markets. The former strategy was
designed to limit our exposure to adverse changes in exchange rates that affect
the euro, the new currency of the European Monetary Union. We effected these
changes in the portfolio primarily in response to lackluster economic growth in
Europe, as well as to an imbalance in capital flows: European investors have
been investing in U.S. markets to a much greater extent than U.S. investors have
been investing in European markets.
As for our increased allocation to the emerging markets, we have focused
primarily on oil-producing nations, such as Russia, Venezuela and Mexico. We
believe these nations may benefit from the high price of oil.
WHERE ARE YOU CURRENTLY FINDING ATTRACTIVE OPPORTUNITIES?
In our opinion, Russia, which continues to benefit from the restructuring of the
debt of the former Soviet Union, offers some attractive opportunities. The
restructuring has reduced Russia's sovereign debt considerably, to the extent
that the country may soon be in a position to begin repaying its debt.
Accordingly, we carefully select opportunities for investment.
2. See page 10 for further details.
3. Standardized yield is based on net investment income for the 30-day period
ended October 31, 2000. Falling share prices will tend to artificially raise
yields.
5 OPPENHEIMER WORLD BOND FUND
<PAGE> 8
--------------------------------------------------
REGIONAL ALLOCATION
PERCENTAGE OF INVESTED ASSETS(4)
[PIECHART]
<TABLE>
<S> <C>
- United States/
Canada 39.9%
- Europe 23.4
- Latin America 16.5
- Asia 9.2
- Emerging
Europe 6.4
- Middle East/
Africa 3.1
- Supranational 1.5
</TABLE>
--------------------------------------------------
It is important to understand that we manage the Fund for the long term, not
just according to prevailing economic and market conditions. Accordingly, we
continue to evaluate the Fund's assets that are allocated among the various
regions and sectors of the world's bond markets. Indeed, we believe that
participating in such a broad world of opportunity is part of what makes
OppenheimerFunds The Right Way to Invest.
<TABLE>
<CAPTION>
TOP TEN COUNTRY HOLDINGS(4)
..................................................
<S> <C>
United States 38.9%
..................................................
Finland 5.4
..................................................
Russia 4.8
..................................................
Italy 4.7
..................................................
Mexico 4.4
..................................................
Brazil 3.7
..................................................
Turkey 3.6
..................................................
Argentina 3.3
..................................................
Great Britain 3.0
..................................................
Japan 2.7
..................................................
</TABLE>
4. Portfolio is subject to change. Percentages are as of October 31, 2000, and
are based on total market value of investments.
6 OPPENHEIMER WORLD BOND FUND
<PAGE> 9
FUND PERFORMANCE
--------------------------------------------------------------------------------
HOW HAS THE FUND PERFORMED? Below is a discussion by OppenheimerFunds, Inc. of
the Fund's performance during its fiscal year ended October 31, 2000, followed
by a graphical comparison of the Fund's performance to an appropriate
broad-based market index.
MANAGEMENT'S DISCUSSION OF PERFORMANCE. During the fiscal year that ended
October 31, 2000, Oppenheimer World Bond Fund's performance was influenced by
changes in economic and market conditions worldwide. The Fund's returns were
driven primarily by rising bond prices in the emerging markets of Latin America
and Eastern Europe, which have benefited from, among other factors, exports to a
strong U.S. economy. In contrast, the Fund's returns were constrained by
weakness in bonds from most developed nations including U.S. and European
corporate bonds. These types of bonds declined because of concerns related to
potential inflationary pressures and rising interest rates. The Fund's portfolio
holdings, allocations and investment style are subject to change.
COMPARING THE FUND'S PERFORMANCE TO THE MARKET. The graphs that follow show the
performance of a hypothetical $10,000 investment in each class of shares of the
Fund held until October 31, 2000. In the case of Class A shares, performance is
measured over a ten-year period. In the case of Class B and Class C shares,
performance is measured from inception of those classes on April 27, 1998. The
Fund's performance reflects the deduction of the maximum initial sales charge on
Class A shares, the applicable contingent deferred sales charge on Class B and
Class C shares, and reinvestments of all dividends and capital gains
distributions.
The Fund's performance is compared to that of Salomon Brothers World
Government Bond Index. This Index is an inclusive index of institutionally
traded bonds, including fixed-rate bonds, with a remaining maturity of one year
longer with amounts outstanding of at least the equivalent of $25 million
dollars. Floating- or variable-rate bonds and private placement-type securities
are not included. The Index is designed to measure the total return performance
of the domestic and foreign government bond markets.
Index performance reflects the reinvestment of dividends but does not
consider the effect of capital gains or transaction costs, and none of the data
in the graphs shows the effect of taxes. The Fund's performance reflects the
effects of Fund business and operating expenses. While index comparisons may be
useful to provide a benchmark for the Fund's performance, it must be noted that
the Fund's investments are not limited to the securities in the index.
7 OPPENHEIMER WORLD BOND FUND
<PAGE> 10
FUND PERFORMANCE
--------------------------------------------------------------------------------
CLASS A SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
-- Oppenheimer World Bond Fund (Class A)
-- Salomon Brothers World Government Bond Index
[The following table was originally a line graph in the printed materials.]
<TABLE>
<CAPTION>
Date Oppenheimer Salomon Brothers
World Bond Fund (Class A) World Government Bond Index
<S> <C> <C>
10/31/90 9525 10000
01/31/91 9917 10487
04/30/91 10264 10710
07/31/91 10522 10874
10/31/91 11041 11446
01/31/92 11249 11776
04/30/92 11408 11834
07/31/92 11760 12520
10/31/92 11675 12640
01/31/93 11907 13117
04/30/93 12236 13524
07/31/93 12567 13891
10/31/93 12852 14293
01/31/94 13238 14394
04/30/94 12704 13664
07/31/94 12920 13862
10/31/94 12978 13663
01/31/95 12712 13990
04/30/95 13128 14550
07/31/95 13776 15206
10/31/95 14122 15756
01/31/96 14750 16339
04/30/96 14949 15749
07/31/96 15395 15976
10/31/96 16119 16573
01/31/97 16642 16703
04/30/97 16697 16773
07/31/97 17364 17601
10/31/97 17398 17997
01/31/98 17521 18568
04/30/98 17897 18645
07/31/98 17784 19084
10/31/98 16832 20074
01/31/99 17344 20238
04/30/99 17467 19848
07/31/99 17566 19606
10/31/99 18022 19786
01/31/00 18325 19668
04/30/00 18642 20299
07/31/00 19104 20883
10/31/00 18939 21412
</TABLE>
AVERAGE ANNUAL TOTAL RETURN OF CLASS A SHARES OF THE FUND AT 10/31/00(1)
1-YEAR 0.09% 5-YEAR 5.02% 10-YEAR 6.59%
CLASS B SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
-- Oppenheimer World Bond Fund (Class B)
-- Salomon Brothers World Government Bond Index
[The following table was originally a line graph in the printed materials.]
<TABLE>
<CAPTION>
Date Oppenheimer Salomon Brothers
World Bond Fund (Class B) World Government Bond Index
<S> <C> <C>
04/27/98 10000 10000
04/30/98 10030 10000
07/31/98 9947 10235
10/31/98 9407 10767
01/31/99 9660 10855
04/30/99 9724 10646
07/31/99 9746 10516
10/31/99 9992 10612
01/31/00 10142 10549
04/30/00 10285 10887
07/31/00 10522 11201
10/31/00 10159 11484
</TABLE>
AVERAGE ANNUAL TOTAL RETURN OF CLASS B SHARES OF THE FUND AT 10/31/00(1)
1-YEAR 0.64% LIFE 0.63%
1. See page 10 for further details.
8 OPPENHEIMER WORLD BOND FUND
<PAGE> 11
CLASS C SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
-- Oppenheimer World Bond Fund (Class C)
-- Salomon Brothers World Government Bond Index
[The following table was originally a line graph in the printed materials.]
<TABLE>
<CAPTION>
Date Oppenheimer Salomon Brothers
World Bond Fund (Class C) World Government Bond Index
<S> <C> <C>
04/27/98 10000 10000
04/30/98 10030 10000
07/31/98 9948 10235
10/31/98 9391 10767
01/31/99 9644 10855
04/30/99 9709 10646
07/31/99 9744 10516
10/31/99 9977 10612
01/31/00 10126 10549
04/30/00 10268 10887
07/31/00 10504 11201
10/31/00 10394 11484
</TABLE>
AVERAGE ANNUAL TOTAL RETURN OF CLASS C SHARES OF THE FUND AT 10/31/00(1)
1-YEAR 3.21% LIFE 1.55%
THE PERFORMANCE INFORMATION FOR THE SALOMON BROTHERS WORLD GOVERNMENT BOND INDEX
IN THE GRAPHS BEGINS ON 10/31/90 FOR CLASS A AND 4/30/98 FOR BOTH CLASS B AND
CLASS C.
1. See page 10 for further details.
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. GRAPHS ARE NOT DRAWN
TO THE SAME SCALE.
9 OPPENHEIMER WORLD BOND FUND
<PAGE> 12
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. BECAUSE OF ONGOING
MARKET VOLATILITY, THE FUND'S PERFORMANCE HAS BEEN SUBJECT TO SUBSTANTIAL
SHORT-TERM FLUCTUATIONS AND CURRENT PERFORMANCE MAY BE LESS THAN THE RESULTS
SHOWN. 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 and the ending account values in the graphs include changes in
share price and reinvestment of dividends and capital gains distributions in a
hypothetical investment for the periods shown. The Fund's total returns 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 3% (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.
10 OPPENHEIMER WORLD BOND FUND
<PAGE> 13
FINANCIALS
11 OPPENHEIMER WORLD BOND FUND
<PAGE> 14
STATEMENT OF INVESTMENTS OCTOBER 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
AMOUNT SEE NOTE 1
====================================================================================================
MORTGAGE-BACKED OBLIGATIONS--9.5%
----------------------------------------------------------------------------------------------------
GOVERNMENT AGENCY--7.0%
----------------------------------------------------------------------------------------------------
<S> <C> <C>
FHLMC/FNMA/SPONSORED--6.3%
Federal Home Loan Mortgage Corp.:
11.50%, 1/1/18 $ 13,985 $ 14,982
13%, 5/1/19 133,544 152,640
----------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp., Gtd. Real Estate
Mtg. Investment Conduit Pass-Through Certificates,
Series 2054, Cl. TE, 6.25%, 4/15/24 109,000 103,481
----------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp., Interest-Only
Stripped Mtg.-Backed Security:
Series 197, Cl. IO, 9.003%, 4/1/28(1) 1,272,703 386,584
Series 199, Cl. IO, 21.681%, 8/1/28(1) 1,184,095 371,140
----------------------------------------------------------------------------------------------------
Federal National Mortgage Assn., 6.50%, 3/1/28 2,005,690 1,930,317
----------
2,959,144
----------------------------------------------------------------------------------------------------
GNMA/GUARANTEED--0.7%
Government National Mortgage Assn.:
7.50%, 5/15/24-1/15/26 270,206 271,494
11%, 10/20/19 39,326 42,669
----------
314,163
----------------------------------------------------------------------------------------------------
PRIVATE--2.5%
----------------------------------------------------------------------------------------------------
COMMERCIAL--2.5%
Commercial Mortgage Acceptance Corp., Interest-Only Stripped
Mtg.-Backed Security, Series 1996-C1, Cl. X-2, 39.648%, 12/25/20(1,2) 4,942,337 61,779
----------------------------------------------------------------------------------------------------
First Chicago/Lennar Trust 1, Commercial Mtg. Pass-Through
Certificates, Series 1997-CHL1, Cl. C, 8.125%, 7/25/06(2,3) 200,000 190,500
----------------------------------------------------------------------------------------------------
Merrill Lynch Mortgage Investors, Inc., Mtg. Pass-Through
Certificates, Series 1995-C2, Cl. D, 7.595%, 6/15/21(3) 97,850 97,743
----------------------------------------------------------------------------------------------------
Morgan Stanley Capital I, Inc., Commercial Mtg. Pass-Through
Certificates, Series 1996-C1, Cl. E, 7.41%, 3/15/06(2,3) 553,342 475,442
----------------------------------------------------------------------------------------------------
Mortgage Capital Funding, Inc., Multifamily Mtg. Pass-Through
Certificates, Series 1996-MC1, Cl. G, 7.15%, 6/15/06(4) 250,000 213,486
----------------------------------------------------------------------------------------------------
Resolution Trust Corp., Commercial Mtg. Pass-Through
Certificates, Series 1995-C1, Cl. F, 6.90%, 2/25/27 71,799 66,398
----------------------------------------------------------------------------------------------------
Structured Asset Securities Corp., Multiclass Pass-Through
Certificates, Series 1995-C4, Cl. E, 8.90%, 6/25/26(2,3) 100,000 99,656
----------
1,205,004
----------
Total Mortgage-Backed Obligations (Cost $4,381,133) 4,478,311
</TABLE>
12 OPPENHEIMER WORLD BOND FUND
<PAGE> 15
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
AMOUNT SEE NOTE 1
====================================================================================================
U.S. GOVERNMENT OBLIGATIONS--20.0%
----------------------------------------------------------------------------------------------------
<S> <C> <C>
U.S. Treasury Bonds:
8.875%, 2/15/19 $ 275,000 $ 361,630
STRIPS, 5.97%, 11/15/18(5,6) 4,050,000 1,384,521
STRIPS, 6.24%, 5/15/05(5) 837,000 642,873
----------------------------------------------------------------------------------------------------
U.S. Treasury Nts.:
5.25%, 5/15/04 3,000,000 2,941,038
5.625%, 11/30/00(7) 750,000 749,737
6.50%, 2/15/10 140,000 146,595
7%, 7/15/06(6) 3,000,000 3,163,434
----------
Total U.S. Government Obligations (Cost $9,240,856) 9,389,828
====================================================================================================
FOREIGN GOVERNMENT OBLIGATIONS--45.9%
----------------------------------------------------------------------------------------------------
ARGENTINA--3.2%
Argentina (Republic of) Bonds:
11.375%, 3/15/10 130,000 108,875
11.75%, 6/15/15 559,000 476,827
Bonos de Consolidacion de Deudas, Series PRE3,
2.735%, 9/1/02(3) [ARP] 293,917 263,323
----------------------------------------------------------------------------------------------------
Argentina (Republic of) Par Bonds, 6%, 3/31/23(3) 480,000 315,600
----------------------------------------------------------------------------------------------------
Argentina (Republic of) Unsec. Unsub. Nts., 11.75%, 4/7/09 55,000 48,125
----------------------------------------------------------------------------------------------------
Buenos Aires (Province of) Bonds, Bonos de Consolidacion
de Deudas, Series PBA1, 2.735%, 4/1/07(3) [ARP] 237,529 154,540
----------------------------------------------------------------------------------------------------
City of Buenos Aires Bonds, Series 3, 10.50%, 5/28/04 [ARP] 160,000 134,427
----------
1,501,717
----------------------------------------------------------------------------------------------------
BELGIUM--1.0%
Belgium (Kingdom of) Bonds, Series 35, 5.75%, 9/28/10 [EUR] 535,000 458,908
----------------------------------------------------------------------------------------------------
BRAZIL--2.8%
Brazil (Federal Republic of) Bonds:
10.125%, 5/15/27 320,000 240,800
12.25%, 3/6/30 45,000 39,285
12.75%, 1/15/20 785,000 724,162
----------------------------------------------------------------------------------------------------
Brazil (Federal Republic of) Debt Capitalization Bonds, 8%, 4/15/14 36,942 27,568
----------------------------------------------------------------------------------------------------
Brazil (Federal Republic of) Gtd. Disc. Bonds, 7.625%, 4/15/24(3) 27,000 20,722
----------------------------------------------------------------------------------------------------
Brazil (Federal Republic of) Unsec. Unsub. Bonds, 11%, 8/17/40 35,200 26,840
----------------------------------------------------------------------------------------------------
Brazil (Federal Republic of) Unsub. Bonds, 14.50%, 10/15/09 230,000 245,295
----------
1,324,672
----------------------------------------------------------------------------------------------------
BULGARIA--0.3%
Bulgaria (Republic of) Disc. Bonds, Tranche A, 7.75%, 7/28/24(3) 160,000 120,400
----------------------------------------------------------------------------------------------------
Bulgaria (Republic of) Front-Loaded Interest Reduction
Bearer Bonds, Tranche A, 3%, 7/28/12(3) 55,000 39,531
----------
159,931
</TABLE>
13 OPPENHEIMER WORLD BOND FUND
<PAGE> 16
STATEMENT OF INVESTMENTS Continued
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
AMOUNT SEE NOTE 1
====================================================================================================
<S> <C> <C>
CANADA--1.0%
Canada (Government of) Bonds, 7%, 12/1/06 [CAD] $ 650,000 $ 450,021
----------------------------------------------------------------------------------------------------
COLOMBIA--0.4%
Colombia (Republic of) Bonds, 9.75%, 4/23/09 216,000 173,340
----------------------------------------------------------------------------------------------------
ECUADOR--0.5%
Ecuador (Republic of) Bonds, 4%, 8/15/30(3,4) 202,000 76,861
----------------------------------------------------------------------------------------------------
Ecuador (Republic of) Unsec. Bonds:
4%, 8/15/30(3) 330,000 125,565
12%, 11/15/12(4) 35,000 23,800
12%, 11/15/12 40,000 27,200
-----------
253,426
----------------------------------------------------------------------------------------------------
FINLAND--5.3%
Finland (Republic of) Bonds:
5.75%, 2/23/11 [EUR] 2,650,000 2,298,632
Series RG, 9.50%, 3/15/04 [EUR] 180,000 171,879
-----------
2,470,511
----------------------------------------------------------------------------------------------------
FRANCE--2.4%
France (Government of) Bonds, Obligations
Assimilables du Tresor, 5.50%, 4/25/07 [EUR] 1,330,000 1,144,319
----------------------------------------------------------------------------------------------------
GERMANY--1.3%
Germany (Republic of) Bonds:
5.375%, 1/4/10 [EUR] 410,000 351,408
7.50%, 9/9/04 [EUR] 270,000 246,771
-----------
598,179
----------------------------------------------------------------------------------------------------
GREAT BRITAIN--2.9%
United Kingdom Treasury Bonds, 8.50%, 12/7/05 [GBP] 830,000 1,360,983
----------------------------------------------------------------------------------------------------
GREECE--0.3%
Hellenic (Republic of) Bonds, 8.60%, 3/26/08 [GRD] 53,300,000 153,749
----------------------------------------------------------------------------------------------------
ITALY--4.6%
Italy (Republic of) Treasury Bonds, Buoni del Tesoro Poliennali:
5.25%, 12/15/05 [EUR] 160,000 135,114
5.50%, 11/1/10 [EUR] 2,400,000 2,031,595
-----------
2,166,709
----------------------------------------------------------------------------------------------------
IVORY COAST--0.2%
Ivory Coast (Government of) Past Due Interest Bonds,
Series F, 1.90%, 3/29/18(8) [FRF] 3,899,750 72,437
----------------------------------------------------------------------------------------------------
JAPAN--1.6%
Japan (Government of) Bonds, Series 187, 3.30%, 6/20/06 [JPY] 73,600,000 744,291
----------------------------------------------------------------------------------------------------
MEXICO--1.2%
United Mexican States Bonds, 11.375%, 9/15/16 518,000 587,930
----------------------------------------------------------------------------------------------------
NORWAY--1.1%
Norway (Government of) Bonds, 5.50%, 5/15/09 [NOK] 5,230,000 530,828
</TABLE>
14 OPPENHEIMER WORLD BOND FUND
<PAGE> 17
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
AMOUNT SEE NOTE 1
====================================================================================================
<S> <C> <C>
PANAMA--0.5%
Panama (Republic of) Bonds, 8.875%, 9/30/27 $ 31,000 $ 26,195
----------------------------------------------------------------------------------------------------
Panama (Republic of) Interest Reduction Bonds, 4.50%, 7/17/14(3) 255,000 202,725
-----------
228,920
----------------------------------------------------------------------------------------------------
PERU--1.1%
Peru (Republic of) Sr. Nts., Zero Coupon, 4.53%, 2/28/16(5) 1,167,341 506,860
----------------------------------------------------------------------------------------------------
PHILIPPINES--0.3%
Philippines (Republic of) Nts., 10.625%, 3/16/25 171,000 130,815
----------------------------------------------------------------------------------------------------
PORTUGAL--0.2%
Portugal (Republic of) Obrig Do Tes Medio Prazo
Unsub. Nts., 5.85%, 5/20/10 [EUR] 110,000 94,966
----------------------------------------------------------------------------------------------------
RUSSIA--4.4%
Russian Federation Unsec. Unsub. Nts.,
8.75%, 7/24/05 499,000 392,963
12.75%, 6/24/28 175,000 147,438
----------------------------------------------------------------------------------------------------
Russian Federation Unsub. Nts.:
2.50%, 3/31/30(3) 3,740,000 1,413,019
8.25%, 3/31/10(2) 159,852 102,905
-----------
2,056,325
----------------------------------------------------------------------------------------------------
SLOVAKIA--0.7%
Vseobecna Uverova Banka, Unsec. Sub. Nts., 8.188%, 12/28/06(2,3) 380,000 334,400
----------------------------------------------------------------------------------------------------
SOUTH AFRICA--1.9%
South Africa (Republic of) Bonds, Series 153, 13%, 8/31/10 [ZAR] 7,195,000 913,967
----------------------------------------------------------------------------------------------------
SPAIN--2.0%
Spain (Kingdom of) Gtd. Bonds, Bonos y Obligacion del Estado:
4.95%, 7/30/05 [EUR] 850,000 709,617
5.15%, 7/30/09 [EUR] 290,000 240,229
-----------
949,846
----------------------------------------------------------------------------------------------------
THE NETHERLANDS--2.1%
Netherlands (Government of) Bonds, 6.75%, 11/15/05 [EUR] 1,100,000 994,362
----------------------------------------------------------------------------------------------------
TURKEY--0.2%
Turkey (Republic of) Bonds, 11.75%, 6/15/10 86,000 83,366
----------------------------------------------------------------------------------------------------
VENEZUELA--2.4%
Venezuela (Republic of) Bonds, 9.25%, 9/15/27(9) 250,000 165,625
----------------------------------------------------------------------------------------------------
Venezuela (Republic of) Collateralized Par Bonds:
Series W-A, 6.75%, 3/31/20 415,000 309,175
Series W-B, 6.75%, 3/31/20 25,000 18,625
----------------------------------------------------------------------------------------------------
Venezuela (Republic of) Debs., Series DL, 7.875%, 12/18/07(3) 718,573 602,703
----------------------------------------------------------------------------------------------------
Venezuela (Republic of) Unsec. Bonds, 13.625%, 8/15/18 15,000 13,650
-----------
1,109,778
-----------
Total Foreign Government Obligations (Cost $22,399,771) 21,555,556
</TABLE>
15 OPPENHEIMER WORLD BOND FUND
<PAGE> 18
STATEMENT OF INVESTMENTS Continued
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET VALUE
AMOUNT SEE NOTE 1
=================================================================================================================
LOAN PARTICIPATIONS--1.8%
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Algeria (Republic of) Trust III Nts., Tranche 3, 2.387%, 3/4/10(2,3) [JPY] $ 52,529,000 $ 324,728
-----------------------------------------------------------------------------------------------------------------
Algeria (Republic of) Unrestructured Nts., 6.615%, 1/22/01(2) [JPY] 8,100,000 72,143
-----------------------------------------------------------------------------------------------------------------
ING Barings LLC, Bank Mandiri Linked Nts.,
Series 5C, 8.344%, 6/1/05(2,3) 250,000 194,062
-----------------------------------------------------------------------------------------------------------------
PT Bank Negara Indonesia Gtd. Nts.:
10.094%, 8/25/01(2,3) 180,000 166,500
10.344%, 8/25/02(2,3) 90,000 77,288
--------------
Total Loan Participations (Cost $836,149) 834,721
=================================================================================================================
CORPORATE BONDS AND NOTES--6.6%
-----------------------------------------------------------------------------------------------------------------
Bakrie Investindo, Zero Coupon Promissory Nts., 3/16/1999(2,8,10) [IDR] 850,000,000 13,622
-----------------------------------------------------------------------------------------------------------------
Capital Gaming International, Inc., 11.50% Promissory Nts., 8/1/1995(2,8,10) 2,000 --
-----------------------------------------------------------------------------------------------------------------
Development Bank of Japan Gtd. Unsec. Bonds, 2.875%, 12/20/06 [JPY] 50,000,000 498,420
-----------------------------------------------------------------------------------------------------------------
Empresa Electrica del Norte Grande SA, 7.75% Bonds, 3/15/06(2) 155,000 43,787
-----------------------------------------------------------------------------------------------------------------
European Investment Bank, 3% Eligible Interest Nts., 9/20/06 [JPY] 70,000,000 704,584
-----------------------------------------------------------------------------------------------------------------
Hanvit Bank:
0%/12.75% Unsec. Sub. Nts., 3/1/10(4,11) 315,000 307,912
0%/12.75% Unsec. Sub. Nts., 3/1/10(11) 84,000 82,110
-----------------------------------------------------------------------------------------------------------------
Moran Energy, Inc., 8.75% Cv. Sub. Debs., 1/15/08 200,000 185,000
-----------------------------------------------------------------------------------------------------------------
Ongko International Finance Co. BV, 10.50% Sec. Nts., 3/29/04(2,8,10) 185,000 6,012
-----------------------------------------------------------------------------------------------------------------
Petroleos Mexicanos Bonds, 9.50%, 9/15/27 88,000 89,320
-----------------------------------------------------------------------------------------------------------------
Procter & Gamble Co., 1.50% Sr. Unsec. Unsub. Bonds, 12/7/05 [JPY] 95,000,000 873,393
-----------------------------------------------------------------------------------------------------------------
PT Polysindo Eka Perkasa:
11% Nts., 6/18/03(2,8,10) 50,000 6,500
20% Nts., 3/6/01(8,10) [IDR] 1,000,000,000 13,889
24% Nts., 6/19/03(8,10) [IDR] 492,900,000 6,846
-----------------------------------------------------------------------------------------------------------------
Reliance Industries Ltd., 10.25% Unsec. Nts., Series B, 1/15/97 305,000 254,885
--------------
Total Corporate Bonds and Notes (Cost $3,620,579) 3,086,280
SHARES
=================================================================================================================
COMMON STOCKS--0.1%
-----------------------------------------------------------------------------------------------------------------
OpTel, Inc., Non-Vtg.(2,10) 45 --
-----------------------------------------------------------------------------------------------------------------
Price Communications Corp.(10) 1,105 23,896
--------------
Total Common Stocks (Cost $11) 23,896
UNITS
=================================================================================================================
RIGHTS, WARRANTS AND CERTIFICATES--0.0%
-----------------------------------------------------------------------------------------------------------------
Gothic Energy Corp. Wts.:
Exp. 1/23/03 206 --
Exp. 1/23/03(2) 119 1
Exp. 9/1/04 350 --
-----------------------------------------------------------------------------------------------------------------
ICG Communications, Inc. Wts., Exp. 9/15/05 495 66
-----------------------------------------------------------------------------------------------------------------
Loral Space & Communications Ltd. Wts., Exp. 1/15/07(2) 50 260
</TABLE>
16 OPPENHEIMER WORLD BOND FUND
<PAGE> 19
<TABLE>
<CAPTION>
MARKET VALUE
AMOUNT SEE NOTE 1
====================================================================================================
RIGHTS, WARRANTS AND CERTIFICATES Continued
----------------------------------------------------------------------------------------------------
<S> <C> <C>
Mexico Value Rts., Exp. 6/30/03 30,000 $ --
----------------------------------------------------------------------------------------------------
Microcell Telecommunications, Inc. Wts., Exp. 6/1/06(4) 100 5,781
----------------------------------------------------------------------------------------------------
Protection One Alarm Monitoring, Inc. Wts., Exp. 6/30/05(2) 640 64
----------
Total Rights, Warrants and Certificates (Cost $1,731) 6,172
PRINCIPAL
AMOUNT
====================================================================================================
STRUCTURED INSTRUMENTS--7.3%
----------------------------------------------------------------------------------------------------
Citibank NA (Nassau Branch), Mexican Nuevo Peso Linked Nts.:
21.25%, 6/16/03 [MXN] $4,407,961 461,177
22.20%, 6/9/03 [MXN] 3,879,308 411,461
----------------------------------------------------------------------------------------------------
Credit Suisse First Boston Corp. (New York Branch), Russian Obligatzii
Federal'nogo Zaima Linked Nts.:
Series 25030, Zero Coupon, 146.53%, 12/15/01(2,5) [RUR] 259,000 6,535
Series 27001, 20.11%, 2/6/02(2,3) [RUR] 167,330 5,099
Series 27002, 20.11%, 5/22/02(2,3) [RUR] 75,800 2,261
Series 27003, 20.11%, 6/5/02(2,3) [RUR] 143,730 4,278
Series 27004, 20.11%, 9/18/02(2,3) [RUR] 83,250 2,434
Series 27005, 20.055%, 10/9/02(2,3) [RUR] 169,330 4,829
Series 27006, 20.055%, 1/22/03(2,3) [RUR] 239,430 6,691
Series 27007, 20.11%, 2/5/03(2,3) [RUR] 323,860 9,040
Series 27008, 20.11%, 5/21/03(2,3) [RUR] 75,800 2,079
Series 27009, 20.11%, 6/4/03(2,3) [RUR] 357,620 9,774
Series 27009, 20.11%, 6/4/03(2,3) [RUR] 772,702 21,118
Series 27010, 20.11%, 9/17/03(2,3) [RUR] 75,800 2,045
Series 27011, 20.055%, 10/8/03(2,3) [RUR] 440,870 11,612
Series 28001, 20.055%, 1/21/04(2,3) [RUR] 75,800 1,964
Series L, 20.055%, 1/21/04(2,3) [RUR] 68,820 1,783
Series L, 20.055%, 1/22/03(2,3) [RUR] 68,820 1,923
Series L, 20.055%, 10/8/03(2,3) [RUR] 68,820 1,813
Series L, 20.055%, 10/9/02(2,3) [RUR] 68,820 1,963
Series L, 20.11%, 2/5/03(2,3) [RUR] 68,820 1,921
Series L, 20.11%, 2/6/02(2,3) [RUR] 68,820 2,097
Series L, 20.11%, 5/21/03(2,3) [RUR] 68,820 1,887
Series L, 20.11%, 5/22/02(2,3) [RUR] 68,820 2,053
Series L, 20.11%, 6/4/03(2,3) [RUR] 68,820 1,881
Series L, 20.11%, 6/5/02(2,3) [RUR] 68,820 2,048
Series L, 20.11%, 9/17/03(2,3) [RUR] 68,820 1,856
Series L, 20.11%, 9/18/02(2,3) [RUR] 68,820 2,012
Series L, Zero Coupon, 53.77%, 12/15/01(2,5) [RUR] 235,000 5,929
----------------------------------------------------------------------------------------------------
Deutsche Bank AG, Turkish Lira Linked Nts., 11%, 12/11/00 1,300,000 1,325,480
----------------------------------------------------------------------------------------------------
ING Barings LLC, Zero Coupon USD Russian Equity Linked Nts., 4/19/01 550 40,403
----------------------------------------------------------------------------------------------------
Salomon Brothers, Inc., Zero Coupon Brazilian Eligible Interest
Linked Nts., 11.24%, 4/9/01(11) 455,000 354,764
----------------------------------------------------------------------------------------------------
Salomon Smith Barney, Inc. Mexican Nuevo Peso
Linked Nts., 18.65%, 8/25/03 [MXN] 4,638,171 468,930
----------------------------------------------------------------------------------------------------
Salomon Smith Barney, Inc. Turkish Lira
Linked Nts., 11%, 1/17/01 249,352 256,573
----------
Total Structured Instruments (Cost $3,471,503) 3,437,713
</TABLE>
17 OPPENHEIMER WORLD BOND FUND
<PAGE> 20
STATEMENT OF INVESTMENTS Continued
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET VALUE
DATE STRIKE CONTRACTS SEE NOTE 1
=================================================================================================
OPTIONS PURCHASED--0.0%
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
European Monetary Unit Call 12/5/00 [EUR] 0.937 613,407 $ 582
-------------------------------------------------------------------------------------------------
South Korean Won Call 11/28/00 [KRW] 1,100 1,140,000 456
-------------------------------------------------------------------------------------------------
Thailand Baht Call(2) 12/6/00 [THB] 38.00 97,090,000 --
--------
Total Options Purchased (Cost $72,700) 1,038
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
=================================================================================================
REPURCHASE AGREEMENTS--6.1%
-------------------------------------------------------------------------------------------------
<S> <C> <C>
Repurchase agreement with PaineWebber, Inc., 6.55%, dated
10/31/00, to be repurchased at $2,874,523 on 11/1/00, collateralized
by Government National Mortgage Assn., 8%-8.50%, 3/20/30-9/20/30,
with a value of $2,989,638 (Cost $2,874,000 ) $ 2,874,000 2,874,000
-------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $46,898,433) 97.3% 45,687,515
-------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 2.7 1,288,750
--------------------------
NET ASSETS 100.0% $46,976,265
==========================
</TABLE>
FOOTNOTES TO STATEMENT OF INVESTMENTS
PRINCIPAL AMOUNT IS REPORTED IN U.S. DOLLARS, EXCEPT FOR THOSE DENOTED IN THE
FOLLOWING CURRENCIES:
ARP Argentine Peso JPY Japanese Yen
EUR Euro KRW South Korean Won
CAD Canadian Dollar MXN Mexican Nuevo Peso
FRF French Franc NOK Norwegian Krone
GBP British Pound Sterling RUR Russian Ruble
GRD Greek Drachma THB Thailand Baht
IDR Indonesian Rupiah ZAR South African Rand
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. Identifies issues considered to be illiquid or restricted--See Note 8 of
Notes to Financial Statements.
3. Represents the current interest rate for a variable or increasing rate
security.
4. Represents securities sold under Rule 144A, which are exempt from
registration under the Securities Act of 1933, as amended. These securities have
been determined to be liquid under guidelines established by the Board of
Trustees. These securities amount to $627,840 or 1.34% of the Fund's net assets
as of October 31, 2000.
5. Zero coupon bonds reflects the effective yield on the date of purchase.
6. Securities with an aggregate market value of $492,149 are held in
collateralized accounts to cover initial margin requirements on open futures
sales contracts. See Note 6 of Notes to Financial Statements.
7. A sufficient amount of securities has been designated to cover outstanding
foreign currency contracts. See Note 5 of Notes to Financial Statements.
8. Issuer is in default.
18 OPPENHEIMER WORLD BOND FUND
<PAGE> 21
FOOTNOTES TO STATEMENT OF INVESTMENTS Continued
9. A sufficient amount of liquid assets has been designated to cover outstanding
written options, as follows:
<TABLE>
<CAPTION>
PRINCIPAL/
CONTRACTS EXPIRATION EXERCISE PREMIUM MARKET VALUE
SUBJECT TO CALL/PUT DATE PRICE RECEIVED SEE NOTE 1
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
European Monetary Unit Put $560,353 12/5/00 $0.856 $ 5,828 $ 14,803
Venezuela (Republic of) Bonds
9.25%, 9/15/27 Call 130 11/13/00 68.800% 1,534 82
-----------------------
$ 7,362 $ 14,885
=======================
</TABLE>
10. Non-income-producing security.
11. 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 $ 17,825,852 38.9%
Finland 2,470,512 5.4
Russia 2,215,653 4.8
Italy 2,166,710 4.7
Mexico 2,018,818 4.4
Brazil 1,679,437 3.7
Turkey 1,665,419 3.6
Argentina 1,501,717 3.3
Great Britain 1,360,983 3.0
Japan 1,242,711 2.7
France 1,144,319 2.5
Venezuela 1,109,778 2.4
The Netherlands 994,362 2.2
Spain 949,846 2.1
South Africa 913,967 2.0
Supranational 704,584 1.5
Germany 598,179 1.3
Norway 530,828 1.2
Peru 506,860 1.1
Indonesia 484,719 1.1
Belgium 458,908 1.0
Canada 455,802 1.0
Algeria 396,871 0.9
Korea, Republic of (South) 390,023 0.9
Slovakia 334,400 0.7
India 254,885 0.6
Ecuador 253,426 0.6
Panama 228,920 0.5
Colombia 173,340 0.4
Bulgaria 159,931 0.4
Greece 153,749 0.3
Philippines 130,815 0.3
Portugal 94,966 0.2
Ivory Coast 72,437 0.2
Chile 43,788 0.1
----------------------------------------
Total $ 45,687,515 100.0%
========================================
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
19 OPPENHEIMER WORLD BOND FUND
<PAGE> 22
STATEMENT OF ASSETS AND LIABILITIES October 31, 2000
--------------------------------------------------------------------------------
<TABLE>
=================================================================================================
<S> <C>
ASSETS
-------------------------------------------------------------------------------------------------
Investments, at value (cost $46,898,433)--see accompanying statement $ 45,687,515
-------------------------------------------------------------------------------------------------
Cash 128,395
-------------------------------------------------------------------------------------------------
Unrealized appreciation on foreign currency contracts 97,066
-------------------------------------------------------------------------------------------------
Receivables and other assets:
Interest, dividends and principal paydowns 935,194
Investments sold 919,332
Shares of beneficial interest sold 186,880
Closed foreign currency contracts 13,311
Other 459
------------
Total assets 47,968,152
=================================================================================================
LIABILITIES
-------------------------------------------------------------------------------------------------
Unrealized depreciation on foreign currency contracts 16,624
-------------------------------------------------------------------------------------------------
Options written, at value (premiums received $7,362)--see accompanying statement 14,885
-------------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 573,209
Dividends 110,897
Trustees' compensation 73,826
Shareholder reports 51,384
Legal, auditing and other professional fees 41,069
Transfer and shareholder servicing agent fees 33,767
Shares of beneficial interest redeemed 29,265
Daily variation on futures contracts 20,884
Distribution and service plan fees 9,442
Other 16,635
------------
Total liabilities 991,887
=================================================================================================
NET ASSETS $ 46,976,265
============
=================================================================================================
COMPOSITION OF NET ASSETS
-------------------------------------------------------------------------------------------------
Par value of shares of capital stock $ 68,190
-------------------------------------------------------------------------------------------------
Additional paid-in capital 56,681,713
-------------------------------------------------------------------------------------------------
Overdistributed net investment income (241,655)
-------------------------------------------------------------------------------------------------
Accumulated net realized loss on investments and foreign currency transactions (8,367,453)
-------------------------------------------------------------------------------------------------
Net unrealized depreciation on investments and translation of
assets and liabilities denominated in foreign currencies (1,164,530)
------------
NET ASSETS $ 46,976,265
============
</TABLE>
20 OPPENHEIMER WORLD BOND FUND
<PAGE> 23
<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
$37,431,549 and 5,433,289 shares of beneficial interest outstanding) $6.89
Maximum offering price per share (net asset value plus sales charge
of 4.75% of offering price) $7.23
-------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $7,786,184
and 1,130,041 shares of beneficial interest outstanding) $6.89
-------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $1,758,532
and 255,654 shares of beneficial interest outstanding) $6.88
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
21 OPPENHEIMER WORLD BOND FUND
<PAGE> 24
STATEMENT OF OPERATIONS For the Year Ended October 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME
Interest (net of foreign withholding taxes of $12,036) $ 4,279,624
----------------------------------------------------------------------------------------
Dividends (net of foreign withholding taxes of $11) 64
-----------
Total income 4,279,688
----------------------------------------------------------------------------------------
EXPENSES
Management fees 315,415
----------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 72,473
Class B 51,927
Class C 14,403
----------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees 90,529
----------------------------------------------------------------------------------------
Shareholder reports 50,807
----------------------------------------------------------------------------------------
Legal, auditing and other professional fees 45,601
----------------------------------------------------------------------------------------
Custodian fees and expenses 22,096
----------------------------------------------------------------------------------------
Other 21,710
-----------
Total expenses 684,961
Less expenses paid indirectly (8,081)
-----------
Net expenses 676,880
----------------------------------------------------------------------------------------
NET INVESTMENT INCOME 3,602,808
----------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments (including premiums on options exercised) 404,863
Closing of futures contracts 329,262
Closing and expiration of option contracts written 10,136
Foreign currency transactions (2,488,612)
-----------
Net realized loss (1,744,351)
----------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on:
Investments 413,542
Translation of assets and liabilities denominated in foreign currencies (381,514)
-----------
Net change 32,028
-----------
Net realized and unrealized loss (1,712,323)
----------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 1,890,485
===========
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
22 OPPENHEIMER WORLD BOND FUND
<PAGE> 25
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31, 2000 1999
-------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
Net investment income $ 3,602,808 $ 4,341,652
-------------------------------------------------------------------------------------------
Net realized gain (loss) (1,744,351) (2,898,137)
-------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) 32,028 1,221,282
------------------------------
Net increase in net assets resulting from operations 1,890,485 2,664,797
-------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income:
Class A (1,534,312) (2,671,354)
Class B (191,800) (69,360)
Class C (53,664) (50,388)
-------------------------------------------------------------------------------------------
Tax return of capital distribution:
Class A (1,276,597) (1,017,454)
Class B (159,583) (80,561)
Class C (44,651) (22,828)
-------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
Net increase (decrease) in net assets resulting from
beneficial interest transactions:
Class A 3,990,989 (3,211,011)
Class B 5,265,369 1,832,386
Class C 1,026,231 219,731
-------------------------------------------------------------------------------------------
NET ASSETS
Total increase (decrease) 8,912,467 (2,406,042)
-------------------------------------------------------------------------------------------
Beginning of period 38,063,798 40,469,840
------------------------------
End of period (including overdistributed net investment
income of $241,655 and $139,724, respectively) $ 46,976,265 $ 38,063,798
==============================
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
23 OPPENHEIMER WORLD BOND FUND
<PAGE> 26
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A YEAR ENDED OCTOBER 31, 2000 1999 1998 1997 1996
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA
Net asset value, beginning of period $ 7.10 $ 7.33 $ 8.28 $ 8.31 $ 7.91
----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .62 .80 .72 .72 .73
Net realized and unrealized gain (loss) (.27) (.31) (.97) (.08) .34
--------------------------------------------------------------------------------
Total income (loss) from
investment operations .35 .49 (.25) .64 1.07
----------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.33) (.51) (.64) (.67) (.67)
Tax return of capital (.23) (.21) (.06) -- --
--------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.56) (.72) (.70) (.67) (.67)
----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 6.89 $ 7.10 $ 7.33 $ 8.28 $ 8.31
================================================================================
Market value, end of period N/A N/A N/A $ 8.06 $ 7.50
================================================================================
----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(1) 5.09% 7.07% (3.25)% 7.94% 14.14%
----------------------------------------------------------------------------------------------------------------------------------
==================================================================================================================================
TOTAL RETURN, AT MARKET VALUE(2) N/A N/A N/A 16.42% 16.40%
----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $ 37,432 $ 34,553 $ 38,950 $ 54,781 $ 54,962
----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 35,414 $ 36,620 $ 48,542 $ 55,339 $ 53,309
----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(3)
Net investment income 8.77% 11.16% 8.94% 8.65% 9.04%
Expenses 1.51% 1.74% 1.56%(4) 1.20%(4) 1.28%(4)
Expenses, net of indirect expenses 1.49% 1.72% N/A N/A N/A
----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 218% 237% 344% 289% 261%
</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.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
24 OPPENHEIMER WORLD BOND FUND
<PAGE> 27
<TABLE>
<CAPTION>
CLASS B YEAR ENDED OCTOBER 31, 2000 1999 1998(1)
----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
PER SHARE OPERATING DATA
Net asset value, beginning of period $ 7.11 $ 7.34 $ 8.15
----------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .58 .72 .25
Net realized and unrealized loss (.29) (.29) (.73)
-------------------------------------------
Total income (loss) from
investment operations .29 .43 (.48)
----------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.28) (.45) (.27)
Tax return of capital (.23) (.21) (.06)
-------------------------------------------
Total dividends and/or distributions
to shareholders (.51) (.66) (.33)
----------------------------------------------------------------------------------------------
Net asset value, end of period $ 6.89 $ 7.11 $ 7.34
===========================================
----------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(2) 4.21% 6.22% (5.93)%
----------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $ 7,786 $ 2,736 $ 933
----------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 5,205 $ 1,607 $ 340
----------------------------------------------------------------------------------------------
Ratios to average net assets:(3)
Net investment income 7.48% 10.81% 10.97%(4)
Expenses 2.31% 2.49% 2.74%(4,5)
Expenses, net of indirect expenses 2.29% 2.47% N/A
----------------------------------------------------------------------------------------------
Portfolio turnover rate 218% 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.
3. Annualized for periods of less than one full year.
4. This information may not be representative of future ratios.
5. Expense ratio has not been grossed up to reflect the effect of expenses paid
indirectly.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
25 OPPENHEIMER WORLD BOND FUND
<PAGE> 28
FINANCIAL HIGHLIGHTS Continued
<TABLE>
<CAPTION>
CLASS C YEAR ENDED OCTOBER 31, 2000 1999 1998(1)
----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
PER SHARE OPERATING DATA
Net asset value, beginning of period $ 7.10 $ 7.33 $ 8.15
----------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .58 .75 .34
Net realized and unrealized loss (.29) (.31) (.83)
-------------------------------------------
Total income (loss) from
investment operations .29 .44 (.49)
----------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.28) (.46) (.27)
Tax return of capital (.23) (.21) (.06)
-------------------------------------------
Total dividends and/or distributions
to shareholders (.51) (.67) (.33)
----------------------------------------------------------------------------------------------
Net asset value, end of period $ 6.88 $ 7.10 $ 7.33
===========================================
----------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(2) 4.18% 6.24% (6.09)%
----------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $ 1,759 $ 775 $ 587
----------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 1,442 $ 809 $ 253
----------------------------------------------------------------------------------------------
Ratios to average net assets:(3)
Net investment income 7.55% 10.14% 9.24%(4)
Expenses 2.31% 2.54% 2.62%(4,5)
Expenses, net of indirect expenses 2.29% 2.52% N/A
----------------------------------------------------------------------------------------------
Portfolio turnover rate 218% 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.
3. Annualized for periods of less than one full year.
4. This information may not be representative of future ratios.
5. Expense ratio has not been grossed up to reflect the effect of expenses paid
indirectly.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
26 OPPENHEIMER WORLD BOND FUND
<PAGE> 29
NOTES TO FINANCIAL STATEMENTS
===============================================================================
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 a
front-end sales charge. Class B and Class C shares are sold without a
front-end 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 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 listed or traded on National Stock Exchanges
or other domestic or foreign exchanges are valued based on the last sale
price of the security traded on that exchange prior to the time when the
Fund's assets are valued. In the absence of a sale, the security is valued 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. Short-term "money
market type" debt securities with remaining maturities of sixty days or less
are valued at amortized cost (which approximates market value).
--------------------------------------------------------------------------------
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 are leveraged, which increases the
notes' volatility relative to the principal of the security. Fluctuations in
value of these securities are recorded as unrealized gains and losses in the
accompanying financial statements. As of October 31, 2000, the market value
of these securities comprised 7.3% of the Fund's net assets and resulted in
unrealized losses in the current period of $33,790. The Fund also hedges a
portion of the foreign currency exposure generated by these securities, as
discussed in Note 5.
--------------------------------------------------------------------------------
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 October 31, 2000,
securities with an aggregate market value of $119,306, representing 0.25% of
the Fund's net assets, were in default.
27 OPPENHEIMER WORLD BOND FUND
<PAGE> 30
NOTES TO FINANCIAL STATEMENTS Continued
===============================================================================
1. SIGNIFICANT ACCOUNTING POLICIES Continued
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.
--------------------------------------------------------------------------------
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, 2000, the Fund had available for federal income tax
purposes an unused capital loss carryover as follows:
<TABLE>
<CAPTION>
EXPIRING
------------------------
<S> <C>
2002 $3,887,244
2003 835,303
2006 2,547,604
2007 1,101,025
</TABLE>
-------------------------------------------------------------------------------
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
year ended October 31, 2000, a credit of $11,547 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 $73,129 as of October 31,
2000.
28 OPPENHEIMER WORLD BOND FUND
<PAGE> 31
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.
--------------------------------------------------------------------------------
CLASSIFICATION OF DIVIDENDS AND 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 dividends and distributions made during the fiscal 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
dividends and 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.
The Fund adjusts the classification of distributions to shareholders to
reflect the differences between financial statement amounts and distributions
determined in accordance with income tax regulations. Accordingly, during the
year ended October 31, 2000, amounts have been reclassified to reflect a
decrease in paid-in capital of $1,784,583, a decrease in undistributed net
investment income of $444,132, and a decrease in accumulated net realized
loss on investments of $2,228,715. Net assets of the Fund were unaffected by
the reclassifications. As noted in the Statement of Changes in Net Assets,
the Fund realized a tax return of capital of $1,480,831.
--------------------------------------------------------------------------------
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 accreted 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.
29 OPPENHEIMER WORLD BOND FUND
<PAGE> 32
NOTES TO FINANCIAL STATEMENTS Continued
===============================================================================
1. SIGNIFICANT ACCOUNTING POLICIES Continued
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of income and expenses during the
reporting period. Actual results could differ from those estimates.
===============================================================================
2. SHARES OF BENEFICIAL INTEREST
The Fund has authorized an unlimited number of $.01 par value shares of
beneficial interest of each class. Transactions in shares of beneficial
interest for the year ended October 31, 2000, were as follows:
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31, 2000 YEAR ENDED OCTOBER 31, 1999
SHARES AMOUNT SHARES AMOUNT
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CLASS A
Sold 1,537,690 $10,848,133 390,587 $ 2,817,009
Dividends and/or
distributions reinvested 155,096 1,093,128 163,761 1,175,569
Redeemed (1,124,238) (7,950,272) (1,001,683) (7,203,589)
----------------------------------------------------------------------------
Net increase (decrease) 568,548 $ 3,990,989 (447,335) $ (3,211,011)
============================================================================
---------------------------------------------------------------------------------------------------------
CLASS B
Sold 893,346 $ 6,314,722 361,517 $ 2,585,614
Dividends and/or
distributions reinvested 31,325 220,617 13,053 93,470
Redeemed (179,582) (1,269,970) (116,778) (846,698)
----------------------------------------------------------------------------
Net increase 745,089 $ 5,265,369 257,792 $ 1,832,386
============================================================================
---------------------------------------------------------------------------------------------------------
CLASS C
Sold 233,294 $ 1,639,965 102,151 $ 744,459
Dividends and/or
distributions reinvested 7,887 55,478 4,047 29,065
Redeemed (94,737) (669,212) (77,118) (553,793)
----------------------------------------------------------------------------
Net increase 146,444 $ 1,026,231 29,080 $ 219,731
============================================================================
</TABLE>
--------------------------------------------------------------------------------
3. PURCHASES AND SALES OF SECURITIES
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations, for the year ended October 31, 2000, were
$87,225,598 and $81,194,885, respectively.
As of October 31, 2000, unrealized appreciation (depreciation) based on
cost of securities for federal income tax purposes of $46,900,146 was:
<TABLE>
<S> <C>
Gross unrealized appreciation $ 689,037
Gross unrealized depreciation (1,901,668)
------------
Net unrealized depreciation $(1,212,631)
============
</TABLE>
30 OPPENHEIMER WORLD BOND FUND
<PAGE> 33
================================================================================
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 year
ended October 31, 2000, was an annualized rate of 0.75%, before any waiver by
the Manager if applicable.
--------------------------------------------------------------------------------
TRANSFER AGENT FEES. OppenheimerFunds Services (OFS), a division of the
Manager, acts as the transfer and shareholder servicing agent for the Fund on
an "at-cost" basis. OFS also acts as the transfer and shareholder servicing
agent for the other Oppenheimer 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
SALES CHARGES SALES CHARGES SHARES SHARES SHARES
ON CLASS A RETAINED BY ADVANCED BY ADVANCED BY ADVANCED BY
YEAR ENDED SHARES DISTRIBUTOR DISTRIBUTOR(1) DISTRIBUTOR(1) DISTRIBUTOR(1)
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
October 31, 2000 $132,279 $40,397 $2,638 $194,171 $15,864
</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
CONTINGENT DEFERRED CONTINGENT DEFERRED CONTINGENT DEFERRED
SALES CHARGES SALES CHARGES SALES CHARGES
YEAR ENDED RETAINED BY DISTRIBUTOR RETAINED BY DISTRIBUTOR RETAINED BY DISTRIBUTOR
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
October 31, 2000 $-- $10,808 $1,275
</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.
--------------------------------------------------------------------------------
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 year ended October
31, 2000, payments under the Class A plan totaled $72,473 prior to Manager
waiver if applicable, all of which were paid by the Distributor to
recipients, and included $1,448 paid to an
31 OPPENHEIMER WORLD BOND FUND
<PAGE> 34
NOTES TO FINANCIAL STATEMENTS Continued
================================================================================
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued
affiliate of the Manager. 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 year ended October 31,
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 $51,927 $47,102 $270,603 3.48%
Class C Plan 14,403 9,675 22,933 1.30
--------------------------------------------------------------------------------
</TABLE>
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.
32 OPPENHEIMER WORLD BOND FUND
<PAGE> 35
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 October 31, 2000, the Fund had outstanding foreign currency contracts as
follows:
<TABLE>
<CAPTION>
CONTRACT VALUATION AS OF UNREALIZED UNREALIZED
CONTRACT DESCRIPTION EXPIRATION DATE AMOUNT (000S) OCT. 31, 2000 APPRECIATION DEPRECIATION
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CONTRACTS TO PURCHASE
Japanese Yen (JPY) 12/11/00
12/12/00 JPY 43,900 $ 405,097 $ -- $ 1,017
-----------------------------
CONTRACTS TO SELL
British Pound Sterling (GBP) 11/27/00 GBP 80 116,226 569 --
Canadian Dollar (CAD) 11/30/00 CAD 1,040 681,391 -- 361
Euro (EUR) 1/16/01 EUR 3,385 2,879,066 88,834 --
Japanese Yen (JPY) 9/10/01 JPY 26,500 255,891 7,663 --
South African Rand (ZAR) 1/22/01 ZAR 6,808 892,735 -- 15,246
-----------------------------
97,066 15,607
-----------------------------
Total Unrealized Appreciation and Depreciation $ 97,066 $16,624
=============================
</TABLE>
================================================================================
6. FUTURES CONTRACTS
A futures contract is a commitment to buy or sell a specific amount of a
commodity or financial instrument at a particular price on a stipulated
future date at a negotiated price. Futures contracts are traded on a
commodity exchange. The Fund may buy and sell futures contracts that relate
to broadly-based securities indices "financial futures" or debt securities
"interest rate futures" in order to gain exposure to or to seek to protect
against changes in market value of stock and bonds or 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 decreases in market value of 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 recognizes a realized gain or loss when
the contract is closed or expires.
Securities held in collateralized accounts to cover initial margin
requirements on open futures contracts are noted in the Statement of
Investments. The Statement of Assets and Liabilities reflects a receivable
and/or payable for the daily mark to market for variation margin.
33 OPPENHEIMER WORLD BOND FUND
<PAGE> 36
NOTES TO FINANCIAL STATEMENTS Continued
================================================================================
6. FUTURES CONTRACTS Continued
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 October 31, 2000, the Fund had outstanding futures contracts as
follows:
<TABLE>
<CAPTION>
EXPIRATION NUMBER OF VALUATION AS OF UNREALIZED
CONTRACT DESCRIPTION DATE CONTRACTS OCTOBER 31, 2000 DEPRECIATION
-------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CONTRACTS TO SELL
Japan (Government of)
Bonds, 10 yr. 12/8/00 5 $610,587 $ 11,494
U.S. Treasury Nts., 10 yr. 12/19/00 8 805,625 5,437
-----------
$16,931
===========
</TABLE>
===============================================================================
7. OPTION ACTIVITY
The Fund may buy and sell put and call options, or write put and covered call
options on portfolio securities in order to produce incremental earnings or
protect against changes in the value of portfolio securities.
The Fund generally purchases put options or writes covered call options to
hedge against adverse movements in the value of portfolio holdings. When an
option is written, the Fund receives a premium and becomes obligated to sell
or purchase the underlying security at a fixed price, upon exercise of the
option.
Options are valued daily based upon the last sale price on the principal
exchange on which the option is traded and unrealized appreciation or
depreciation is recorded. The Fund will realize a gain or loss upon the
expiration or closing of the option transaction. When an option is exercised,
the proceeds on sales for a written call option, the purchase cost for a
written put option, or the cost of the security for a purchased put or call
option is adjusted by the amount of premium received or paid.
Securities designated to cover outstanding call options are noted in the
Statement of Investments where applicable. Shares subject to call, expiration
date, exercise price, premium received and market value are detailed in a
note to the Statement of Investments. Options written are reported as a
liability in the Statement of Assets and Liabilities. Realized 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.
34 OPPENHEIMER WORLD BOND FUND
<PAGE> 37
Written option activity for the year ended October 31, 2000 was as follows:
<TABLE>
<CAPTION>
CALL OPTIONS PUT OPTIONS
-------------------------------------------------------
NUMBER OF AMOUNT OF NUMBER OF AMOUNT OF
CONTRACTS PREMIUMS CONTRACTS PREMIUMS
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Options outstanding as of
October 31, 1999 -- $ -- 2,319,290 $ 12,682
Options written 80,000,706 15,297 2,130,758 30,467
Options closed or expired (80,000,405) (11,321) (270,000) (1,192)
Options exercised (171) (2,442) (3,619,695) (36,129)
-------------------------------------------------------
Options outstanding as of
October 31, 2000 130 $ 1,534 560,353 $ 5,828
=======================================================
</TABLE>
------------------------------------------------------------------------------
8. ILLIQUID SECURITIES
As of October 31, 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 October 31, 2000, was $2,288,574, which represents 4.87% 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 year ended or at October
31, 2000.
------------------------------------------------------------------------------
10. OTHER MATTERS
On April 13, 2000, the Board of Trustees approved the reorganization of
Oppenheimer World Bond Fund with and into Oppenheimer International Bond Fund.
Shareholders of Oppenheimer World Bond Fund will be asked to approve a
reorganization whereby shareholders would receive shares of Oppenheimer
International Bond Fund. If shareholder approval is received, it is expected
that the reorganization will occur during the first quarter of calendar 2001.
35 OPPENHEIMER WORLD BOND FUND
<PAGE> 38
INDEPENDENT AUDITORS' REPORT
================================================================================
THE BOARD OF TRUSTEES AND SHAREHOLDERS OF
OPPENHEIMER WORLD BOND FUND:
We have audited the accompanying statement of assets and liabilities,
including the statement of investments, of Oppenheimer World Bond Fund as of
October 31, 2000, and the related statement of operations for the year then
ended, the statements of changes in net assets for each of the years in the
two-year period then ended and the financial highlights for each of the years
in the five-year period then ended. These financial statements and financial
highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. Our
procedures included confirmation of securities owned as of October 31, 2000,
by correspondence with the custodian and brokers; and where confirmations
were not received from brokers, we performed other auditing procedures. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Oppenheimer World Bond Fund as of October 31, 2000, the results of its
operations for the year then ended, the changes in its net assets for each of
the years in the two-year period then ended, and the financial highlights for
each of the years in the five-year period then ended, in conformity with
accounting principles generally accepted in the United States of America.
KPMG LLP
Denver, Colorado
November 21, 2000
36 OPPENHEIMER WORLD BOND FUND
<PAGE> 39
FEDERAL INCOME TAX INFORMATION Unaudited
================================================================================
In early 2001 shareholders will receive information regarding all dividends
and distributions paid to them by the Fund during calendar year 2000.
Regulations of the U.S. Treasury Department require the Fund to report this
information to the Internal Revenue Service.
The foregoing information is presented to assist shareholders in reporting
distributions received from the Fund to the Internal Revenue Service. Because
of the complexity of the federal regulations which may affect your individual
tax return and the many variations in state and local tax regulations, we
recommend that you consult your tax advisor for specific guidance.
37 OPPENHEIMER WORLD BOND FUND
<PAGE> 40
OPPENHEIMER WORLD BOND FUND
===============================================================================
OFFICERS AND TRUSTEES Leon Levy, Chairman of the Board of Trustees
Donald W. Spiro, Vice Chairman of the Board of Trustees
Bridget A. Macaskill, Trustee and President
Robert G. Galli, Trustee
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
===============================================================================
INVESTMENT ADVISOR OppenheimerFunds, Inc.
===============================================================================
DISTRIBUTOR OppenheimerFunds Distributor, Inc.
===============================================================================
TRANSFER AND SHAREHOLDER OppenheimerFunds Services
SERVICING AGENT
===============================================================================
CUSTODIAN OF The Bank of New York
PORTFOLIO SECURITIES
===============================================================================
INDEPENDENT AUDITORS KPMG LLP
===============================================================================
LEGAL COUNSEL Mayer, Brown & Platt
For more complete information about Oppenheimer
World Bond Fund, please refer to the Prospectus.
To obtain a copy, call your financial advisor, or
call OppenheimerFunds Distributor, Inc. at
1.800.525.7048, or visit the OppenheimerFunds
Internet website, at WWW.OPPENHEIMERFUNDS.COM.
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.
(C)Copyright 2000 OppenheimerFunds, Inc. All rights reserved.
38 OPPENHEIMER WORLD BOND FUND
<PAGE> 41
OPPENHEIMERFUNDS FAMILY
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------
GLOBAL EQUITY
----------------------------------------------------------------------------------------------------------
<S> <C>
Developing Markets Fund Global Fund
International Small Company Fund Quest Global Value Fund
Europe Fund Global Growth & Income Fund
International Growth Fund
----------------------------------------------------------------------------------------------------------
EQUITY
----------------------------------------------------------------------------------------------------------
Stock Stock & Bond
Emerging Technologies Fund Main Street(R) Growth & Income Fund
Enterprise Fund Quest Opportunity Value Fund
Discovery Fund Total Return Fund
Main Street(R) Small Cap Fund Quest Balanced Value Fund
Quest Small Cap Fund(1) Capital Income Fund
MidCap Fund Multiple Strategies Fund
Main Street(R) Opportunity Fund Disciplined Allocation Fund
Growth Fund Convertible Securities Fund
Capital Appreciation Fund
Large Cap Growth Fund
Disciplined Value Fund Specialty
Quest Capital Value Fund Real Asset Fund(R)
Quest Value Fund Gold & Special Minerals Fund
Trinity Growth Fund
Trinity Core Fund
Trinity Value Fund
----------------------------------------------------------------------------------------------------------
FIXED INCOME
----------------------------------------------------------------------------------------------------------
Taxable Municipal
International Bond Fund California Municipal Fund(3)
World Bond Fund(2) Main Street(R) California Municipal Fund(2,3)
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(2)
Limited-Term Government Fund Intermediate Municipal Fund
Rochester Division
Rochester Fund Municipals
Limited Term New York Municipal Fund
----------------------------------------------------------------------------------------------------------
MONEY MARKET(4)
----------------------------------------------------------------------------------------------------------
Money Market Fund Cash Reserves
</TABLE>
1. The Fund's name changed from "Oppenheimer Quest Small Cap Value Fund" on
5/19/00.
2. The Fund's Board has proposed to reorganize the Fund into another
Oppenheimer fund, subject to shareholder approval.
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.
39 OPPENHEIMER WORLD BOND FUND
<PAGE> 42
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<PAGE> 43
INFORMATION AND SERVICES
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.
--------------------------------------------------------------------------------
INTERNET
24-hr access to account information and transactions(1)
WWW.OPPENHEIMERFUNDS.COM
--------------------------------------------------------------------------------
GENERAL INFORMATION
Mon-Fri 8am-9pm ET, Sat 10am-4pm ET
1.800.525.7048
--------------------------------------------------------------------------------
TELEPHONE TRANSACTIONS
Mon-Fri 8am-9pm ET, Sat 10am-4pm ET
1.800.852.8457
--------------------------------------------------------------------------------
PHONELINK
24-hr automated information and automated transactions
1.800.533.3310
--------------------------------------------------------------------------------
TELECOMMUNICATIONS DEVICE FOR THE DEAF (TDD)
Mon-Fri 9am-6:30pm ET
1.800.843.4461
--------------------------------------------------------------------------------
OPPENHEIMERFUNDS INFORMATION HOTLINE
24 hours a day, timely and insightful messages on the
economy and issues that may affect your investments
1.800.835.3104
--------------------------------------------------------------------------------
TRANSFER AND SHAREHOLDER SERVICING AGENT
OppenheimerFunds Services
P.O. Box 5270, Denver, CO 80217-5270
--------------------------------------------------------------------------------
TICKER SYMBOLS Class A: OWBAX Class B: N/A Class C: N/A
--------------------------------------------------------------------------------
1. At times this website may be inaccessible or its transaction feature may be
unavailable.
RA0705.001.1000 December 30, 2000 [OPPENHEIMERFUNDS LOGO]
