<PAGE>
OPPENHEIMER GLOBAL ENVIRONMENT FUND
SEMI-ANNUAL REPORT MARCH 31, 1994
OPPENHEIMER FUNDS.
"THIS FUND GIVES US THE POTENTIAL FOR LONG-TERM GROWTH, AS WELL AS A CHANCE TO
HELP THE ENVIRONMENT.
<PAGE>
FUND FACTS
FIVE FACTS EVERY SHAREHOLDER SHOULD KNOW ABOUT OPPENHEIMER GLOBAL ENVIRONMENT
FUND
1 The Fund seeks long-term capital appreciation through investment
principally in companies offering products, services or processes that
contribute to a cleaner and healthier environment. The Fund invests at
least 65% of its assets in common stocks of environmental companies. In
addition to companies located in the U.S., the Fund invests in the shares
of companies in at least three foreign countries.(1)
2 The Fund's total return at net asset value was -0.88% for the six months
ended March 31, 1994 and 4.18% for the 12 months ended on that date.(2)
3 The five largest holdings in the portfolio at March 31 were:(3)
WHEELABRATOR TECHNOLOGIES, INC. A leader in the development of alternative
energy systems.
SITA. France's largest solid-waste disposal company.
SCHWEIZERISCHE INDUSTRIE GMBH. Switzerland's leading manufacturer of
thermal and pollution control machinery.
OMEGA ENVIRONMENTAL, INC. An emerging leader in underground-tank management
and removal.
TETRA TECH, INC. A leader in specialized engineering, consulting, and
pollution control services for oil and drilling companies.
4 Average annual total returns for the 1-year period ended March 31, 1994 and
since inception on March 2, 1990 were -1.81% and -3.42%.(4)
5 "The outlook for the environmental sector is better today than it has been
for some time. Earnings have generally improved along with the U.S.
economy, economies across Europe are poised for a pickup, and the deadline
for compliance with the Clean Air and Water Act in the U.S. is getting
closer. The Fund's portfolio is positioned to benefit from all these
developments."
PORTFOLIO MANAGER JOHN WALLACE, MARCH 31, 1994
IN THIS REPORT:
ANSWERS TO THREE TIMELY QUESTIONS YOU SHOULD ASK YOUR FUND'S MANAGERS.
- - - HAS THE IMPROVING U.S. ECONOMY AFFECTED ENVIRONMENTAL STOCKS AND THE FUND'S
INVESTMENT STRATEGY?
- - - ARE YOU FINDING ANY GROWTH OPPORTUNITIES OUTSIDE THE U.S.?
- - - ARE THERE ANY ENVIRONMENTAL SECTORS YOU'RE CAUTIOUS ABOUT?
(1) Global investment risks, such as currency exchange fluctuations, political
developments and difficulties in trading in foreign markets, can increase
the possibility of share price fluctuation. The special risks of investing
in foreign securities are described in greater detail in the Fund's
prospectus.
(2) Based on the change in net asset value per share from 9/30/93 and 3/31/93
to 3/31/94, without considering the sales charge. All performance figures
assume reinvestment of dividends.
(3) The Fund's portfolio is subject to change.
(4) Average annual total returns are for a hypothetical investment held until
3/31/94, after deducting the maximum initial sales charge of 5.75%.
Performance figures assume reinvestment of dividends and capital gains
distributions.
Past performance does not guarantee future results. The principal value and
return 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.
2 Oppenheimer Global Environment Fund
<PAGE>
REPORT TO SHAREHOLDERS
The outlook for the environmental sector continued to improve somewhat over the
past six months. While the stock market overall declined broadly on the heels of
two moves by the Federal Reserve Board to raise interest rates in February and
March, your Fund's net asset value did not decline significantly, and it posted
a total return at net asset value of -0.88% for the six months ended March 31,
1994 and 4.18% for the twelve months ended on that date.(5)
While your management team doesn't expect a rapid rise in the value of
environmental stocks from current levels, several factors suggest that the
sector will benefit from gradual gains in the months ahead.
Most important, business earnings are improving as the U.S. economy
strengthens and, as a result, companies are increasing spending on environmental
projects postponed during the recession. As the deadline for compliance with the
Clean Air and Water Act draws nearer, this spending should rise even further,
and should help boost the profits and stock prices of well-managed environmental
companies.
Environmental stocks worldwide also continue to trade at low prices
relative to their earnings growth. We believe that value can be found in the
stocks of well-financed environmental firms both in European markets, which seem
ready to rebound from their recessions, and in fast-developing Asian markets.
To capitalize on these developments, your Fund's managers took profits
in the non-environmental stocks into which we had diversified during the
economic downturn, using the proceeds to build positions in high-potential
environmental areas.
We added to positions in companies expected to benefit immediately
from improving corporate earnings, emphasizing engineering and construction
companies, and equipment manufacturers. We also expanded positions in pollution
control companies, as well as in independent energy producers in the U.S. and
offshore, such as Magma Power and Deutsche Babcock.
Overseas, we continued to focus on large, market-leading environmental
companies, such as Atwoods PLC in the U.K. and Compagnie Generale des Eaux in
France.
Our optimism about the sector is tempered somewhat by earnings
disappointments in areas such as hazardous and solid waste management--areas
which we continue to approach cautiously--as well as by the Clinton
Administration's preoccupation with issues other than the environment. On
balance, however, we see growth opportunities in carefully selected
environmental stocks.
We appreciate your confidence in Oppenheimer Global Environment Fund,
and look forward to continuing to help you meet your investment goals.
/s/ Donald W. Spiro
Donald W. Spiro
President
Oppenheimer Global Environment Fund
April 25, 1994
(5) See footnote 2, page 2.
3 Oppenheimer Global Environment Fund
<PAGE>
------------
Statement of Investments March 31, 1994 (Unaudited)
<TABLE>
<CAPTION>
Face Market Value
Amount See Note 1
------ ------------
<S> <C> <C>
Repurchase Agreements--1.9%
- - ------------
Repurchase agreement with J.P. Morgan Securities, Inc.,
3.35%, dated 3/31/94, to be repurchased at $700,275 on 4/4/94,
collateralized by U.S. Treasury Nts., 4.25%--8.875%,
5/15/95--10/15/96, with a value of $716,843 (Cost $700,000) $700,000 $700,000
- - ------------
Corporate Bonds and Notes--11.9%
- - ------------
Air & Water Technologies Corp., 8% Cv. Sub. Debs., 5/15/15 700,000 641,375
- - ------------
OHM Corp., 8% Cv. Sub. Debs., 10/1/06 500,000 490,000
- - ------------
Thermo Electron Corp., 4.625% Cv. Sr. Debs., 8/1/97(2) 1,000,000 1,365,000
- - ------------
United States Filter Corp., 5% Cv. Sub. Debs., 10/15/00(2) 750,000 690,000
- - ------------
USA Waste Services, Inc., 8.50% Cv. Sub. Debs., 10/15/02 1,000,000 1,107,500
------------
Total Corporate Bonds and Notes (Cost $3,772,794) 4,293,875
<CAPTION>
Shares
<S> <C> <C>
- - ------------
Common Stocks--86.0%
- - ------------
Basic Materials--8.3%
- - ------------
Chemicals--2.9% Calgon Carbon Corp. 50,000 643,750
- - ------------
Methanex Corp. 40,000 400,000
------------
1,043,750
------------
Gold--2.8% Engelhard Corp. 20,000 555,000
- - ------------
Minerals Technologies, Inc. 17,500 455,000
------------
1,010,000
------------
Paper and Forest Products--1.5% Louisiana-Pacific Corp. 15,000 541,875
- - ------------
Steel--1.1% Huntco, Inc., Cl. A 15,000 378,750
- - ------------
Consumer Cyclicals--1.1%
- - ------------
Household Furnishings
And Appliances--1.1%
Battery Technologies, Inc.(1) 95,000 386,520
- - ------------
Consumer Non-Cyclicals--1.0%
- - ------------
Food Processing--1.0% Archer-Daniels-Midland Co. 15,000 360,000
- - ------------
Energy--3.6%
- - ------------
Oil and Gas Drilling--1.0% Petroleum Geo-Services AS 20,000 368,951
- - ------------
Oil Well Services and
Equipment--2.6%
Matrix Service Co.(1) 50,000 537,500
- - ------------
McDermott International, Inc. 20,000 405,000
------------
942,500
------------
Industrial--30.7%
- - ------------
Building Materials Group--1.8% Lafarge Corp. 30,000 645,000
- - ------------
Commercial Services--2.0% Ogden Corp. 20,000 445,000
- - ------------
Safety-Kleen Corp. 20,000 280,000
------------
725,000
------------
Conglomerates--1.5% Compagnie Generale des Eaux 1,200 547,253
- - ------------
Containers--0.9% UFP Technologies, Inc. 75,000 337,500
4 Oppenheimer Global Environment Fund
<PAGE>
Market Value
Shares See Note 1
------ ------------
Engineering
And Construction--7.6%
CRSS, Inc. 35,000 $385,000
- - ------------
Destec Energy, Inc.(1) 30,000 382,500
- - ------------
Deutsche Babcock AG 2,500 415,550
- - ------------
Foster Wheeler Corp. 15,000 600,000
- - ------------
IHC Caland NV 20,000 432,667
- - ------------
Rust International, Inc.(1) 30,000 547,500
------------
2,763,217
------------
Machinery:
Diversified--4.8%
Powerscreen International PLC 100,000 414,203
- - ------------
Schweizerische Industrie GmbH 400 887,240
- - ------------
Thermo Power Corp.(1) 55,000 426,250
------------
1,727,693
------------
Manufacturing:
Diversified Industrials--10.0%
Duriron Co., Inc. 30,000 517,500
- - ------------
Fisher Scientific International 12,000 399,000
- - ------------
Harsco Corp. 10,000 446,250
- - ------------
Safety 1st, Inc.(1) 25,000 587,500
- - ------------
Stimsonite Corp. 45,000 495,000
- - ------------
Total Containment, Inc. 40,000 460,000
- - ------------
Trinity Industries, Inc. 18,000 684,000
------------
3,589,250
------------
Transportation:
Miscellaneous--2.1%
Kirby Corp.(1) 35,000 743,750
- - ------------
Pollution Control--33.7%
- - ------------
Air Pollution--1.7% BHA Group, Inc., Cl. A 35,000 376,250
- - ------------
Fuel-Tech, Inc. NV 20,000 225,000
------------
601,250
------------
Alternative Energies--4.2% Kenetech Corp.(1) 25,000 581,250
- - ------------
Wheelabrator Technologies, Inc. 50,000 956,250
------------
1,537,500
------------
Engineering
And Consulting--5.5%
Heidemij NV 43,000 494,500
- - ------------
TETRA Tech, Inc.(1) 40,000 720,000
- - ------------
TRC Cos., Inc. 75,000 768,750
------------
1,983,250
------------
Hazardous Waste--5.3% Clean Harbors, Inc.(1) 90,000 675,000
- - ------------
N-Viro International Corp. 60,000 420,000
- - ------------
Purus, Inc. 25,000 281,250
- - ------------
Sanifill, Inc.(1) 25,000 537,500
------------
1,913,750
5 Oppenheimer Global Environment Fund
<PAGE>
------------
Statement of Investments (Unaudited) (Continued)
Market Value
Shares See Note 1
------ ------------
Solid Waste--10.0% Attwoods PLC, ADR 45,000 $393,750
- - ------------
Browning-Ferris Industries, Inc. 12,500 315,625
- - ------------
SITA 7,000 944,188
- - ------------
United Waste Systems, Inc. 35,000 647,500
- - ------------
WMX Technologies, Inc. 15,000 356,250
- - ------------
Waste Management International PLC, Sponsored ADR(1) 25,000 406,250
- - ------------
Western Waste Industries 40,000 555,000
------------
3,618,563
------------
Water Pollution Control--2.2% Degremont 8,000 784,396
- - ------------
Other Pollution Control--4.8% Envirotest Systems Corp., Cl. A 15,000 333,750
- - ------------
Omega Environmental, Inc.(1) 85,000 839,375
- - ------------
TETRA Technologies, Inc.(1) 75,000 543,750
------------
1,716,875
------------
Technology--5.1%
- - ------------
Aerospace/Defense--0.9% TAT Technologies Ltd. 60,000 307,500
- - ------------
Electronics:
Instrumentation--4.2%
Aurora Electronics, Inc.(1) 70,000 560,000
- - ------------
Thermo Instrument Systems, Inc.(1) 20,000 582,500
- - ------------
Thermotrex Corp. 25,000 365,625
------------
1,508,125
------------
Utilities--2.5%
- - ------------
Electric Companies--2.5% AES China Generating Co. Ltd., Cl. A 15,000 189,375
- - ------------
Magma Power Co. 12,000 387,000
- - ------------
Sithe Energies, Inc. 25,000 315,625
------------
892,000
------------
Total Common Stocks (Cost $28,517,321) 30,974,218
------------
Total Investments, at Value (Cost $32,990,115) 99.8% 35,968,093
- - ------------
Other Assets Net of Liabilities .2 77,852
------------ ------------
Net Assets 100.0% $36,045,945
------------ ------------
------------ ------------
<FN>
1. Non-income producing security.
2. Restricted security--See Note 5 of Notes to Financial Statements.
</TABLE>
See accompanying Notes to Financial Statements.
6 Oppenheimer Global Environment Fund
<PAGE>
------------
Statement of Assets and Liabilities March 31, 1994 (Unaudited)
<TABLE>
<CAPTION>
- - ------------
<S> <C>
Assets Investments, at value (cost $32,990,115)--see accompanying statement $35,968,093
- - ------------
Cash 64,867
- - ------------
Receivables:
Investments sold 421,875
Dividends and interest 146,657
Shares of beneficial interest sold 40,342
- - ------------
Deferred organization costs 2,544
- - ------------
Other 5,781
------------
Total assets 36,650,159
- - ------------
Liabilities Payables and other liabilities:
Shares of beneficial interest redeemed 522,593
Service plan fees--Note 4 26,112
Other 55,509
------------
Total liabilities 604,214
- - ------------
Net Assets $36,045,945
------------
------------
- - ------------
Composition of
Net Assets
Paid-in capital $45,441,705
- - ------------
Accumulated net investment loss (174,677)
- - ------------
Accumulated net realized loss from investment and foreign currency transactions (12,199,061)
- - ------------
Net unrealized appreciation on investments and translation of assets and liabilities
denominated in foreign currencies--Note 3 2,977,978
------------
Net assets--applicable to 3,470,011 shares of beneficial interest outstanding $36,045,945
------------
------------
- - ------------
Net Asset Value and Redemption Price Per Share $10.39
- - ------------
Maximum Offering Price Per Share
(net asset value plus sales charge of 5.75% of offering price) $11.02
See accompanying Notes to Financial Statements.
7 Oppenheimer Global Environment Fund
<PAGE>
------------
Statement of Operations For the Six Months Ended March 31, 1994 (Unaudited)
- - ------------
Investment Income Interest $ 165,117
- - ------------
Dividends (net of withholding taxes of $537) 91,936
------------
Total income 257,053
- - ------------
Expenses Management fees--Note 4 155,149
- - ------------
Transfer and shareholder servicing agent fees--Note 4 51,356
- - ------------
Service plan fees--Note 4 50,743
- - ------------
Shareholder reports 16,833
- - ------------
Custodian fees and expenses 13,518
- - ------------
Legal and auditing fees 8,037
- - ------------
Trustees' fees and expenses 6,956
- - ------------
Other 10,344
------------
Total expenses 312,936
- - ------------
Net Investment Loss (55,883)
- - ------------
Realized and Unrealized
Gain (Loss) on Investments
And Foreign Currency
Transactions
Net realized gain from:
Investments 2,954,219
Foreign currency transactions 68,988
------------
Net realized gain 3,023,207
- - ------------
Net change in unrealized appreciation or depreciation on:
Investments (3,005,592)
Translation of assets and liabilities denominated in foreign currencies (35,857)
------------
Net change (3,041,449)
------------
Net realized and unrealized loss on investments and foreign currency transactions (18,242)
- - ------------
Net Decrease in Net Assets Resulting From Operations $(74,125)
------------
------------
</TABLE>
See accompanying Notes to Financial Statements.
8 Oppenheimer Global Environment Fund
<PAGE>
------------
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Six Months Ended Year Ended
March 31, 1994 September 30,
(Unaudited) 1993
---------------- -------------
<S> <C> <C>
- - ------------
Operations Net investment income (loss) $(55,883) $ 71,384
- - ------------
Net realized gain (loss) on investments and foreign currency transactions 3,023,207 (1,132,242)
------------
Net change in unrealized appreciation or depreciation on investments and
translation of assets and liabilities denominated in foreign currencies (3,041,449) 4,677,741
------------ ------------
Net increase (decrease) in net assets resulting from operations (74,125) 3,616,883
- - ------------
Dividends and Distributions
To Shareholders
Dividends from net investment income ($.018 per share) (68,728)
- - ------------
Beneficial Interest
Transactions
Net decrease in net assets resulting from beneficial interest
transactions--Note 2 (7,082,743) (10,355,967)
- - ------------
Net Assets Total decrease (7,225,596) (6,739,084)
- - ------------
Beginning of period 43,271,541 50,010,625
------------ ------------
End of period (including accumulated net investment losses of $174,677
and $50,066, respectively) $36,045,945 $43,271,541
------------ ------------
------------ ------------
</TABLE>
See accompanying Notes to Financial Statements.
9 Oppenheimer Global Environment Fund
<PAGE>
------------
Financial Highlights
<TABLE>
<CAPTION>
Six Months Ended
March 31, 1994 Year Ended September 30,
(Unaudited) 1993 1992 1991 1990(1)
<S> <C> <C> <C> <C> <C>
- - ------------
Per Share Operating Data:
Net asset value, beginning of period $10.50 $9.69 $11.35 $10.40 $11.43
- - ------------
Income (loss) from investment operations:
Net investment income (loss) (.04) .01 (.03) .06 .04
Net realized and unrealized gain
(loss) on investments and foreign
currency transactions (.05) .80 (1.61) .99 (1.07)
------------ ------------ ------------ ------------ ------------
Total income (loss) from
investment operations (.09) .81 (1.64) 1.05 (1.03)
- - ------------
Dividends and distributions to shareholders:
Dividends from net investment income (.02) -- (.02) (.08) --
Distributions from net realized gain
on investments and foreign currency
transactions -- -- -- (.02) --
------------ ------------ ------------ ------------ ------------
Total dividends and distributions
to shareholders (.02) -- (.02) (.10) --
- - ------------
Net asset value, end of period $10.39 $10.50 $9.69 $11.35 $10.40
------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------
- - ------------
Total Return, at Net Asset Value(2) (.88)% 8.36% (14.44)% 10.10% (9.01)%
- - ------------
Ratios/Supplemental Data:
Net assets, end of period (in thousands) $36,046 $43,272 $50,011 $62,607 $45,050
- - ------------
Average net assets (in thousands) $47,712 $47,040 $57,224 $58,025 $26,638
- - ------------
Number of shares outstanding at end of
period (in thousands) 3,470 4,120 5,161 5,514 4,332
- - ------------
Ratios to average net assets:
Net investment income (loss) (.24)%(3) .15% (.23)% .57% 1.18%(3)
Expenses 1.32%(3) 1.65% 1.68% 1.57% 1.89%(3)
- - ------------
Portfolio turnover rate(4) 47.4% 141.6% 134.7% 33.4% 7.9%
<FN>
1. For the period from March 2, 1990 (commencement of operations) to
September 30, 1990.
2. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period, with all dividends and distributions
reinvested in additional shares on the reinvestment date, and 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.
3. Annualized.
4. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities
owned during the period. Securities with a maturity or expiration date at
the time of acquisition of one year or less are excluded from the
calculation. Purchases and sales of investment securities (excluding
short-term securities) for the six months ended March 31, 1994 were
$18,379,698 and $23,864,316, respectively.
</TABLE>
See accompanying Notes to Financial Statements.
10 Oppenheimer Global Environment Fund
<PAGE>
------------
Notes to Financial Statements (Unaudited)
- - ------------
1. Significant Accounting Policies
Oppenheimer Global Environment Fund (the Fund) is registered under the
Investment Company Act of 1940, as amended, as a diversified, open-end
management investment company. The Fund's investment advisor is Oppenheimer
Management Corporation (the Manager). The following is a summary of significant
accounting policies consistently followed by the Fund.
- - ------------
Investment Valuation. Portfolio securities are valued at 4:00 p.m. (New York
time) on each trading day. Listed and unlisted securities for which such
information is regularly reported are valued at the last sale price of the day
or, in the absence of sales, at values based on the closing bid or asked price
or the last sale price on the prior trading day. Long-term debt securities are
valued by a portfolio pricing service approved by the Board of Trustees.
Long-term debt securities which cannot be valued by the approved portfolio
pricing service are valued by averaging the mean between the bid and asked
prices obtained from two active market makers in such securities. Short-term
debt securities having a remaining maturity of 60 days or less are valued at
cost (or last determined market value) adjusted for amortization to maturity of
any premium or discount. Securities for which market quotes are not readily
available are valued under procedures established by the Board of Trustees to
determine fair value in good faith.
- - ------------
Foreign Currency Translation. The accounting records of the Fund are maintained
in U.S. dollars. Prices of securities denominated in foreign currencies are
translated into U.S. dollars at the closing rates of exchange. Amounts related
to the purchase and sale of securities and investment income are translated at
the rates of exchange prevailing on the respective dates of such transactions.
The Fund generally enters into forward currency exchange contracts as a
hedge, upon the purchase or sale of a security denominated in a foreign
currency. Risks may arise from the potential inability of the counterparty to
meet the terms of the contract and from unanticipated movements in the value of
a foreign currency relative to the U.S. dollar.
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 results 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. If the seller of the agreement defaults and the value of
the collateral declines, or if the seller enters an insolvency proceeding,
realization of the value of the collateral by the Fund may be delayed or
limited.
- - ------------
Federal Income 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 tax provision is required. At March 31, 1994, the Fund had
available for federal income tax purposes an unused capital loss carryover of
approximately $13,568,000, $3,512,000 of which will expire in 2000 and
$10,056,000 in 2001.
<PAGE>
- - ------------
Trustees' Fees and Expenses. The Fund has adopted a nonfunded retirement plan
for the Fund's independent trustees. Benefits are based on years of service and
fees paid to each trustee during the years of service. The accumulated liability
for the Fund's projected benefit obligations was $27,807 at March 31, 1994. No
payments have been made under the plan.
- - ------------
Organization Costs. The Manager advanced $13,603 for organization and start-up
costs of the Fund. Such expenses are being amortized over a five-year period
from the date operations commenced. In the event that all or part of the
Manager's initial investment in shares of the Fund is withdrawn during the
amortization period, the redemption proceeds will be reduced to reimburse the
Fund for any unamortized expenses, in the same ratio as the number of shares
redeemed bears to the number of initial shares outstanding at the time of such
redemption.
11 Oppenheimer Global Environment Fund
<PAGE>
------------
Note to Financial Statements (Unaudited) (Continued)
- - ------------
1. Significant Accounting Policies (continued)
Distributions to Shareholders. Dividends and distributions to shareholders
are recorded on the ex-dividend date.
- - ------------
Other. Investment transactions are accounted for on the date the investments are
purchased or sold (trade date) and dividend income is recorded on the
ex-dividend date. Discount on securities purchased is amortized over the life of
the respective securities, in accordance with federal income tax requirements.
Realized gains and losses on investments and unrealized appreciation and
depreciation are determined on an identified cost basis, which is the same basis
used for federal income tax purposes.
- - ------------
2. Shares of Beneficial Interest
The Fund has authorized an unlimited number of no par value shares of
beneficial interest. Transactions in shares of beneficial interest were as
follows:
<TABLE>
<CAPTION>
Six Months Ended Year Ended
March 31, 1994 September 30, 1993
------------------ ------------------
Shares Amount Shares Amount
<S> <C> <C> <C> <C>
------------
Sold 280,445 $3,089,608 728,378 $7,206,866
Dividends reinvested 6,008 64,223 -- --
Redeemed (936,071) (10,236,574) (1,770,153) (17,562,833)
----------- ------------ ------------ ------------
Net decrease (649,618) $(7,082,743) (1,041,775) $(10,355,967)
----------- ------------ ------------ ------------
----------- ------------ ------------ ------------
</TABLE>
- - ------------
3. Unrealized Gains and Losses on Investments
At March 31, 1994, net unrealized appreciation of investments of $2,977,978 was
composed of gross appreciation of $5,015,747, and gross depreciation of
$2,037,769.
- - ------------
4. Management Fees and Other Transactions With Affiliates
Management fees paid to the Manager were in accordance with the investment
advisory agreement with the Fund which provides for an annual fee of .75% on the
first $200 million of net assets with a reduction of .03% on each $200 million
thereafter, to .66% on net assets in excess of $600 million. The Manager has
agreed to reimburse the Fund if aggregate expenses (with specified exceptions)
exceed the most stringent applicable regulatory limit on Fund expenses.
For the six months ended March 31, 1994, commissions (sales charges paid by
investors) on sales of Fund shares totaled $69,822, of which $17,571 was
retained by Oppenheimer Funds Distributor, Inc. (OFDI), a subsidiary of the
Manager, as general distributor, and by an affiliated broker/dealer.
Oppenheimer Shareholder Services (OSS), a division of the Manager, is the
transfer and shareholder servicing agent for the Fund, and for other registered
investment companies. OSS's total costs of providing such services are allocated
ratably to these companies.
Under an approved service plan, the Fund may expend up to .25% of its net assets
annually to reimburse OFDI for costs incurred in connection with the personal
service and maintenance of accounts that hold shares of the Fund, including
amounts paid to brokers, dealers, banks and other institutions. During the six
months ended March 31, 1994, OFDI paid $1,266 to an affiliated broker/dealer as
reimbursement for personal service and maintenance expenses.
- - ------------
5. Restricted Securities
The Fund owns securities purchased in private placement transactions,
without registration under the Securities Act of 1933 (the Act). The securities
are valued under methods approved by the Board of Trustees as reflecting fair
value. The Fund intends to invest no more than 10% of its net assets (determined
at the time of purchase) in restricted and illiquid securities, excluding
securities eligible for resale pursuant to Rule 144A of the Act that are
determined to be liquid by the Board of Trustees or by the Manager under
Board-approved guidelines.
<TABLE>
<CAPTION>
Valuation Per Unit
Security Acquisition Date Cost Per Unit as of March 31, 1994
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Thermo Electron Corp., 4.625% Cv. Sr. Debs., 8/1/97(1) 7/15/92--8/25/92 $100.00 $136.50
-----------------------------------------------------------------------------------------------------------------------------
United States Filter Corp., 5% Cv. Sub. Debs., 10/15/00(1) 10/13/93--10/14/93 $100.00 $92.00
<FN>
1. Transferable under Rule 144A of the Act.
</TABLE>
12 Oppenheimer Global Environment Fund
<PAGE>
------------
Oppenheimer Global Environment Fund
- - ------------
Officers and Trustees Leon Levy, Chairman of the Board of Trustees
Leo Cherne, Trustee
Edmund T. Delaney, Trustee
Robert G. Galli, Trustee
Benjamin Lipstein, Trustee
Elizabeth B. Moynihan, Trustee
Kenneth A. Randall, Trustee
Edward V. Regan, Trustee
Russell S. Reynolds, Jr., Trustee
Sidney M. Robbins, Trustee
Donald W. Spiro, Trustee and President
Pauline Trigere, Trustee
Clayton K. Yeutter, Trustee
John L. Wallace, Jr., Vice President
George C. Bowen, Treasurer
Lynn M. Coluccy, Assistant Treasurer
Andrew J. Donohue, Secretary
Robert G. Zack, Assistant Secretary
- - ------------
Investment Advisor Oppenheimer Management Corporation
- - ------------
Distributor Oppenheimer Funds Distributor, Inc.
- - ------------
Transfer and Shareholder
Servicing Agent
Oppenheimer Shareholder Services
- - ------------
Custodian of
Portfolio Securities
The Bank of New York
- - ------------
Independent Auditors KPMG Peat Marwick
- - ------------
Legal Counsel Gordon Altman Butowsky Weitzen Shalov & Wein
The financial statements included herein have been taken from the records of the
Fund without examination by the independent auditors.
This is a copy of a report to shareholders of Oppenheimer Global Environment
Fund. This report must be preceded or accompanied by a Prospectus of Oppenheimer
Global Environment Fund. For material information concerning the Fund, see the
Prospectus.
13 Oppenheimer Global Environment Fund
<PAGE>
- - ------------
The Family of OppenheimerFunds
- - ------------
OppenheimerFunds offers over 35 funds designed to fit virtually every investment
goal. Whether you're investing for retirement, your children's education, or
tax-free income, we have the funds to help you seek your objective.
When you invest with OppenheimerFunds, you can feel comfortable knowing
that you are investing with a respected financial institution with over 30 years
of experience in helping people just like you reach their financial goals. And
you're investing with a leader in global, growth stock, and flexible fixed
income investments--with over 1.8 million shareholder accounts and more than 26
billion under Oppenheimer's management and that of our affiliates.
As an OppenheimerFunds shareholder, you can easily exchange shares of
eligible funds of the same class by mail or by telephone for a small
administrative fee.(1) For more information on OppenheimerFunds, please contact
your financial advisor or call us at 1-800-525-7048 for a prospectus. You may
also write us at the address shown on the back cover. As always, please read the
prospectus carefully before you invest.
- - ------------
Specialty Stock Funds
Global Bio-Tech Fund
Global Environment Fund
Gold & Special Minerals Fund
- - ------------
Stock Funds
Discovery Fund
Time Fund
Target Fund
Special Fund
Global Fund
Oppenheimer Fund
Value Stock Fund
- - ------------
Stock and Bond Funds
Main Street Income & Growth Fund
Total Return Fund
Global Growth & Income Fund
Equity Income Fund
Asset Allocation Fund
- - ------------
Bond Funds
High Yield Fund
Champion High Yield Fund
Strategic Income & Growth Fund
Strategic Income Fund
Strategic Diversified Income Fund
Strategic Investment Grade Bond Fund
Strategic Short-Term Income Fund
Investment Grade Bond Fund
Mortgage Income Fund
U.S. Government Trust
Limited-Term Government(2)
- - ------------
Tax-Exempt Funds
New York Tax-Exempt Fund(3)
California Tax-Exempt Fund(3)
Pennsylvania Tax-Exempt Fund(3)
Florida Tax-Exempt Fund(3)
New Jersey Tax-Exempt Fund(3)
Tax-Free Bond Fund
Insured Tax-Exempt Bond Fund
Intermediate Tax-Exempt Bond Fund
- - ------------
Money Market Funds
Money Market Fund
Cash Reserves
Tax-Exempt Cash Reserves
1. The fee is waived for PhoneLink exchanges between existing accounts.
Exchange privileges are subject to change or termination.
2. Formerly Government Securities Fund.
3. Available only to residents of those states.
OppenheimerFunds are distributed by Oppenheimer Funds Distributor, Inc., Two
World Trade Center, New York, NY 10048-0203.
(C) Copyright 1994 Oppenheimer Management Corporation. All rights reserved.
14 Oppenheimer Global Environment Fund
<PAGE>
- - ------------
"How may I help you?"
- - ------------
"Just as OppenheimerFunds offers over 35 different mutual funds designed to help
meet virtually every investment need, Oppenheimer Shareholder Services offers a
variety of services to satisfy your individual needs. Whenever you require help,
we're only a toll-free phone call away.
"For personalized assistance and account information, call our General
Information number to speak with our knowledgeable Customer Service
Representatives and get the help you need.
"When you want to make account transactions, it's easy for you to redeem
shares, exchange shares, or conduct AccountLink transactions, simply by calling
our Telephone Transactions number.
"And for added convenience, OppenheimerFunds' PhoneLink, an automated voice
response system, is available 24 hours a day, 7 days a week. PhoneLink gives you
access to a variety of fund, account, and market information. You can even make
purchases, exchanges and redemptions using your touch-tone phone. Of course,
PhoneLink will always give you the option to speak with a Customer Service
Representative during the hours shown to the left.
"When you invest in OppenheimerFunds, you know you'll receive a high level
of customer service. The International Customer Service Association knows it,
too, as it awarded Oppenheimer Shareholder Services a 1993 Award of Excellence
for consistently demonstrating superior customer service.
"Whatever your needs, we're ready to assist you."
1993 AWARD OF EXCELLENCE LOGO
B&W PHOTO
Barbara Hennigar
Chief Executive Officer
Oppenheimer Shareholder Services
General Information
1-800-525-7048
Talk to a Customer Service Representative.
Monday through Friday from 8:30 a.m. to 8:00 p.m., and Saturday from 10:00 a.m.
to 2:00 p.m. ET.
Telephone Transactions
1-800-852-8457
Make account transactions with a Customer Service Representative. Monday through
Friday from 8:30 a.m. to 8:00 p.m. ET.
PhoneLink
1-800-533-3310
Get automated information or make automated transactions. 24 hours a day, 7 days
a week.
Telecommunication
Device for the Deaf
1-800-843-4461
Service for the hearing impaired.
Monday through Friday from 8:30 a.m. to 8:00 p.m. ET.
OppenheimerFunds
Information Hotline
1-800-835-3104
Hear timely and insightful messages on the economy and issues that affect your
finances.
24 hours a day, 7 days a week.
RS250.0594.N
Oppenheimer Funds Distributor, Inc.
P.O. Box 5270
Denver, CO 80217-5270
- - ------------
Bulk Rate
U.S. Postage
PAID
Permit No. 469
Denver, CO
- - ------------
