<PAGE>
Oppenheimer Global Environment Fund
Annual Report September 30, 1994
[LOGO] OppenheimerFunds
"COLLEGE AND RETIREMENT ARE FAR IN THE
FUTURE FOR US. BUT I KNOW I NEED TO START
PLANNING TODAY.
"I CHOSE THIS FUND BECAUSE IT INVESTS
IN THE KINDS OF STOCKS THAT OFFER STRONG
POTENTIAL FOR LONG-TERM GROWTH."
child sitting on
woman's
shoulders
<PAGE>
FUND FACTS
- --------------------------------------------------------------------------------
IN THIS REPORT:
ANSWERS TO TIMELY QUESTIONS YOU SHOULD ASK YOUR FUND'S MANAGERS.
- - HOW IS THE FUND'S PORTFOLIO POSITIONED PRIOR TO THE PLANNED REORGANIZATION
INTO OPPENHEIMER GLOBAL EMERGING GROWTH FUND?
- - WHERE ARE YOU FINDING THE BEST INVESTMENT OPPORTUNITIES TODAY?
FACTS EVERY SHAREHOLDER SHOULD KNOW ABOUT
OPPENHEIMER GLOBAL ENVIRONMENT FUND
- --------------------------------------------------------------------------------
1 The Fund seeks long-term capital growth. It is most suitable for
investors with long time horizons who can accept short-term volatility
in the Fund's net asset value.
- --------------------------------------------------------------------------------
2 Total return at net asset value for the 12 months ended September 30,
1994 was -3.84%.(1)
- --------------------------------------------------------------------------------
3 Average annual total returns for the 1-year period ended September
30, 1994 and since inception of the Fund on March 2, 1990 were -9.37%
and -3.69%, respectively.(2)
- --------------------------------------------------------------------------------
4 The Fund's top five stock holdings on September 30, 1994 were:(3)
UNITED WASTE SYSTEMS, INC.
TETRA TECH., INC.
SITA
SAFETY 1ST, INC.
WELLMAN, INC.
- --------------------------------------------------------------------------------
5 "The outlook for stocks of well-managed, financially strong
environmentally-oriented companies today is good and getting better.
Corporate earnings in the U.S. and abroad are solid, leading to a
pick-up in environmental spending. State and local governments are
also increasing environmentally-related budgets. As a result, we're
seeing improvements in volumes and pricing in several environmental
sectors, and the Fund's portfolio is well-positioned to benefit."
PORTFOLIO MANAGER JOHN WALLACE, SEPTEMBER 30, 1994
1. Based on the change in net asset value per share from 9/30/93 to 9/30/94,
without deducting any sales charges. Such performance would have been lower if
sales charges were taken into account.
2. Average annual total returns are based on a hypothetical investment held
until 9/30/94, after deducting the maximum initial sales charge of 5.75%.
3. The Fund's portfolio is subject to change.
All figures assume reinvestment of dividends and capital gains distributions.
Past performance is not indicative of future results. Investment and principal
value on 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
- --------------------------------------------------------------------------------
As you were recently informed, in early November, Oppenheimer Global Environment
Fund is expected to reorganize with Oppenheimer Global Emerging Growth Fund,
formerly Oppenheimer Global Bio-Tech Fund, which emphasizes investments in
emerging growth companies worldwide. Your global investment team is looking
forward to bringing you the benefits"in diversification and the potential for
superior long-term returns"that investments in smaller growth companies
worldwide can offer.
At September 30, nearly 35% of the Fund's net assets were invested
in non-environmental stocks, and 32.3% were invested in markets outside the
U.S., notably Europe and fast-developing Asian economies.
At this writing, industrial companies in both the U.S. and Europe are
posting good earnings gains, which, combined with tougher environmental
regulations worldwide, are leading to higher spending on environmental projects.
Over the past six months, in fact, both business volumes and revenues have
improved in solid-waste management and several other environmental sectors. As
this trend continues, the profits and stock prices of well-managed
environmental companies should grow.
Reflecting these developments, your managers took profits in several
non-environmental issues whose prices appeared to have peaked, and used the
proceeds to add to positions in environmental areas with high potential,
including water treatment firms, engineering and construction companies,
pollution control companies, and independent energy producers in the U.S. and
abroad.
Recent purchases include Babcock International, a U.K. firm that
manufactures energy-efficient industrial boilers for utilities; Sumalindo, the
second-largest timber company in Indonesia and the first to use environmentally
sound reforestation techniques; Ionics, Inc., the largest turnkey municipal
water treatment company; and Wellman, Inc., an emerging force in plastic
recycling.
We appreciate the confidence you have placed in the managers of
Oppenheimer Global Environment Fund, and we look forward to continuing to help
you meet your investment goals.
Donald W. Spiro
President
Oppenheimer Global Environment Fund
October 21, 1994
3 Oppenheimer Global Environment Fund
<PAGE>
----------------------------------------------------------
----------------------------------------------------------
STATEMENT OF INVESTMENTS September 30, 1994
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT SEE NOTE 1
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENTS--8.1%
- -------------------------------------------------------------------------------------------------------------------------------
Repurchase agreement with First Chicago Capital Markets,
4.95%, dated 9/30/94, to be repurchased at $2,400,990 on 10/3/94,
collateralized by U.S. Treasury Nts.,4.25%--8.50%, 4/15/95--7/15/98,
with a value of $1,357,119, and U.S. Treasury Bills, 0%,
3/16/95--3/23/95, with a value of $1,093,107 (Cost $2,400,000) $2,400,000 $2,400,000
----------
2,400,000
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS AND NOTES--2.9%
- -------------------------------------------------------------------------------------------------------------------------------
Chiron Corp., 1.90% Cv. Sub. Nts., 11/17/00(2) 750,000 574,687
-------------------------------------------------------------------------------------------------
Cypress Semiconductor Corp., 3.15% Sub. Nts., 3/15/01(2) 350,000 283,500
----------
Total Corporate Bonds and Notes (Cost $804,813) 858,187
-------------------------------------------------------------------------------------------------
SHARES
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS--89.5%
- -------------------------------------------------------------------------------------------------------------------------------
BASIC MATERIALS--7.1%
- -------------------------------------------------------------------------------------------------------------------------------
CHEMICALS--4.4%
- -------------------------------------------------------------------------------------------------------------------------------
Methanex Corp.(1) 35,000 630,000
-------------------------------------------------------------------------------------------------
Wellman, Inc. 20,000 682,500
----------
1,312,500
- -------------------------------------------------------------------------------------------------------------------------------
PAPER AND FOREST PRODUCTS--1.2%
- -------------------------------------------------------------------------------------------------------------------------------
PT Sumalindo Lestari Jaya(1) 112,000 355,139
- -------------------------------------------------------------------------------------------------------------------------------
SPECIAL MINERAL PRODUCERS--1.5%
- -------------------------------------------------------------------------------------------------------------------------------
Minerals Technologies, Inc. 15,000 444,375
- -------------------------------------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS--2.6%
- -------------------------------------------------------------------------------------------------------------------------------
BROADCAST MEDIA--2.6%
- -------------------------------------------------------------------------------------------------------------------------------
IDB Communications Group, Inc.(1) 35,000 315,000
-------------------------------------------------------------------------------------------------
Sistem Televisyen Malaysia Berhad 175,000 457,251
----------
772,251
- -------------------------------------------------------------------------------------------------------------------------------
CONSUMER NON-CYCLICALS--6.8%
- -------------------------------------------------------------------------------------------------------------------------------
AGRICULTURAL BIOTECHNOLOGY--1.0%
- -------------------------------------------------------------------------------------------------------------------------------
Dekalb Genetics Corp., Cl. B 10,000 290,000
- -------------------------------------------------------------------------------------------------------------------------------
FOOD PROCESSING--2.0%
- -------------------------------------------------------------------------------------------------------------------------------
Archer-Daniels-Midland Co. 15,750 409,500
- -------------------------------------------------------------------------------------------------------------------------------
United Foods Co. Ltd. 126,500 174,745
----------
584,245
- -------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE: MISCELLANEOUS--1.8%
- -------------------------------------------------------------------------------------------------------------------------------
COR Therapeutics, Inc.(1) 35,000 533,750
- -------------------------------------------------------------------------------------------------------------------------------
MEDICAL PRODUCTS--0.6%
- -------------------------------------------------------------------------------------------------------------------------------
Arjo AB(1) 11,000 191,173
- -------------------------------------------------------------------------------------------------------------------------------
RETAIL STORES: FOOD CHAINS--1.4%
- -------------------------------------------------------------------------------------------------------------------------------
PT Fast Food Indonesia 220,000 424,623
- -------------------------------------------------------------------------------------------------------------------------------
ENERGY--3.1%
- -------------------------------------------------------------------------------------------------------------------------------
OIL AND GAS DRILLING--2.4%
- -------------------------------------------------------------------------------------------------------------------------------
Petroleum Geo-Services AS(1) 20,000 391,874
Transocean Drilling AS(1) 50,000 324,107
----------
715,981
- -------------------------------------------------------------------------------------------------------------------------------
OIL WELL SERVICES AND EQUIPMENT--0.7%
- -------------------------------------------------------------------------------------------------------------------------------
Matrix Service Co.(1) 30,000 191,250
- -------------------------------------------------------------------------------------------------------------------------------
FINANCIAL--3.1%
- -------------------------------------------------------------------------------------------------------------------------------
INSURANCE: MULTI-LINE--1.5%
- -------------------------------------------------------------------------------------------------------------------------------
National Mutual Asia, Ltd. 700,000 452,945
- -------------------------------------------------------------------------------------------------------------------------------
INSURANCE: PROPERTY AND CASUALTY--1.6%
- -------------------------------------------------------------------------------------------------------------------------------
Reinsurance Australia Corp.(1) 350,000 458,425
4 Oppenheimer Global Environment Fund
<PAGE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL--31.6%
- -------------------------------------------------------------------------------------------------------------------------------
BUILDING MATERIALS GROUP--2.0%
- -------------------------------------------------------------------------------------------------------------------------------
Lafarge Corp. 30,000 $603,750
- -------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES--2.4%
- -------------------------------------------------------------------------------------------------------------------------------
PT Intraco Penta 225,000 310,195
-------------------------------------------------------------------------------------------------
Safety-Kleen Corp. 25,000 406,250
----------
716,445
- -------------------------------------------------------------------------------------------------------------------------------
CONGLOMERATES--0.6%
- -------------------------------------------------------------------------------------------------------------------------------
AptarGroup, Inc. 6,000 162,000
- -------------------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--3.2%
- -------------------------------------------------------------------------------------------------------------------------------
PT Kabelmetal Indonesia 280,000 443,924
-------------------------------------------------------------------------------------------------
Sheldahl, Inc. 45,000 517,500
----------
961,424
- -------------------------------------------------------------------------------------------------------------------------------
ENGINEERING AND
CONSTRUCTION--7.2%
- -------------------------------------------------------------------------------------------------------------------------------
Babcock International Group PLC(1) 750,000 378,480
-------------------------------------------------------------------------------------------------
CRSS, Inc. 35,000 398,125
-------------------------------------------------------------------------------------------------
Deutsche Babcock AG(1) 2,500 372,207
-------------------------------------------------------------------------------------------------
Foster Wheeler Corp. 15,000 515,625
-------------------------------------------------------------------------------------------------
IHC Caland NV 20,000 475,316
----------
2,139,753
- -------------------------------------------------------------------------------------------------------------------------------
MACHINERY: DIVERSIFIED--4.5%
- -------------------------------------------------------------------------------------------------------------------------------
Powerscreen International PLC 100,000 497,543
-------------------------------------------------------------------------------------------------
Schweizerische Industrie GmbH 200 394,464
-------------------------------------------------------------------------------------------------
Traub AG(1) 3,550 448,454
----------
1,340,461
- -------------------------------------------------------------------------------------------------------------------------------
MANUFACTURING: DIVERSIFIED
INDUSTRIALS--6.4%
- -------------------------------------------------------------------------------------------------------------------------------
Duriron Co., Inc. 25,000 393,750
-------------------------------------------------------------------------------------------------
Safety 1st, Inc.(1) 25,000 693,750
-------------------------------------------------------------------------------------------------
Stimsonite Corp.(1) 40,000 480,000
-------------------------------------------------------------------------------------------------
Total Containment, Inc.(1) 38,000 330,125
----------
1,897,625
- -------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION:
MISCELLANEOUS--2.8%
- -------------------------------------------------------------------------------------------------------------------------------
Brambles Industries Ltd. 50,000 506,896
-------------------------------------------------------------------------------------------------
Kirby Corp.(1) 20,000 332,500
----------
839,396
- -------------------------------------------------------------------------------------------------------------------------------
TRUCKERS--2.5% Danzas Holding AG 2,100 507,134
- -------------------------------------------------------------------------------------------------------------------------------
Koninklijke Frans Maas Groep NV 7,000 227,588
----------
734,722
- -------------------------------------------------------------------------------------------------------------------------------
POLLUTION CONTROL--28.1%
- -------------------------------------------------------------------------------------------------------------------------------
ALTERNATIVE ENERGIES--2.3% Kenetech Corp.(1) 25,000 303,125
- -------------------------------------------------------------------------------------------------------------------------------
Wheelabrator Technologies, Inc. 25,000 384,375
----------
687,500
- -------------------------------------------------------------------------------------------------------------------------------
ENGINEERING
AND CONSULTING--6.3%
- -------------------------------------------------------------------------------------------------------------------------------
Heidemij NV 43,000 440,750
-------------------------------------------------------------------------------------------------
TETRA Tech., Inc.(1) 43,750 836,718
-------------------------------------------------------------------------------------------------
TRC Cos., Inc.(1) 65,000 601,250
----------
1,878,718
</TABLE>
5 Oppenheimer Global Environment Fund
<PAGE>
<TABLE>
<CAPTION>
------------------------------------------------------------
------------------------------------------------------------
STATEMENT OF INVESTMENTS (Continued)
MARKET VALUE
SHARES SEE NOTE 1
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
HAZARDOUS WASTE--3.1%
- -------------------------------------------------------------------------------------------------------------------------------
Clean Harbors, Inc.(1) 55,000 $357,500
-------------------------------------------------------------------------------------------------
Sanifill, Inc.(1) 25,000 556,250
-------------------------------------------------------------------------------------------------
913,750
----------
- -------------------------------------------------------------------------------------------------------------------------------
SOLID WASTE--11.2%
- -------------------------------------------------------------------------------------------------------------------------------
Browning-Ferris Industries, Inc. 12,000 381,000
-------------------------------------------------------------------------------------------------
SITA 4,500 701,227
-------------------------------------------------------------------------------------------------
United Waste Systems, Inc.(1) 35,000 866,250
-------------------------------------------------------------------------------------------------
WMX Technologies, Inc. 15,000 433,125
-------------------------------------------------------------------------------------------------
Waste Management International PLC, Sponsored ADR(1) 20,000 335,000
-------------------------------------------------------------------------------------------------
Western Waste Industries(1) 35,000 621,250
----------
3,337,852
- -------------------------------------------------------------------------------------------------------------------------------
WATER POLLUTION CONTROL--3.2%
- -------------------------------------------------------------------------------------------------------------------------------
Degremont 5,000 460,874
-------------------------------------------------------------------------------------------------
Ionics, Inc.(1) 10,000 487,500
----------
948,374
- -------------------------------------------------------------------------------------------------------------------------------
OTHER POLLUTION CONTROL--2.0%
- -------------------------------------------------------------------------------------------------------------------------------
TETRA Technologies, Inc.(1) 65,000 585,000
- -------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY--7.1%
- -------------------------------------------------------------------------------------------------------------------------------
COMMUNICATION: EQUIPMENT/MANUFACTURERS--0.7%
- -------------------------------------------------------------------------------------------------------------------------------
DSC Communications Corp.(1) 7,500 213,750
- -------------------------------------------------------------------------------------------------------------------------------
COMPUTER SOFTWARE AND
SERVICES--2.2%
- -------------------------------------------------------------------------------------------------------------------------------
Alias Research, Inc.(1) 20,000 390,000
-------------------------------------------------------------------------------------------------
Wavefront Technologies, Inc.(1) 20,000 260,000
----------
650,000
- -------------------------------------------------------------------------------------------------------------------------------
ELECTRONICS: INSTRUMENTATION--3.4%
- -------------------------------------------------------------------------------------------------------------------------------
Aurora Electronics, Inc.(1) 65,000 373,750
-------------------------------------------------------------------------------------------------
Thermo Instrument Systems, Inc(1) 20,000 266,500
----------
996,250
- -------------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS--0.8%
- -------------------------------------------------------------------------------------------------------------------------------
LCI International, Inc.(1) 12,500 242,970
----------
Total Common Stocks (Cost $22,628,637) 26,576,397
-------------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $25,833,450) 100.5% 29,834,584
-------------------------------------------------------------------------------------------------
Liabilities in Excess of Other Assets (.5) (145,199)
------- -----------
NET ASSETS 100.0% $29,689,385
------- -----------
------- -----------
<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 September 30, 1994
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C>
ASSETS Investments, at value (cost $25,833,450)--see accompanying statement $29,834,584
-------------------------------------------------------------------------------------------------
Cash 117,730
-------------------------------------------------------------------------------------------------
Receivables:
Investments sold 167,270
Dividends and interest 48,851
-------------------------------------------------------------------------------------------------
Deferred organization costs 271
-------------------------------------------------------------------------------------------------
Other 7,051
-----------
Total assets 30,175,757
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
LIABILITIES Payables and other liabilities:
Investments purchased 293,625
Shares of beneficial interest redeemed 96,809
Service plan fees--Note 4 19,498
Other 76,440
-----------
Total liabilities 486,372
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $29,689,385
-----------
-----------
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
COMPOSITION OF Paid-in capital $39,940,655
NET ASSETS -------------------------------------------------------------------------------------------------
Accumulated net investment loss (35,245)
-------------------------------------------------------------------------------------------------
Accumulated net realized loss from investment and foreign currency transactions (14,217,159)
Net unrealized appreciation on investments and translation of assets and
liabilities denominated in foreign currencies--Note 3 4,001,134
-----------
Net assets--applicable to 2,944,261 shares of beneficial interest outstanding $29,689,385
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE $10.08
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
MAXIMUM OFFERING PRICE PER SHARE
(net asset value plus sales charge of 5.75% of offering price) $10.69
</TABLE>
See accompanying Notes to Financial Statements.
7 Oppenheimer Global Environment Fund
<PAGE>
<TABLE>
<CAPTION>
--------------------------------------------------------------
--------------------------------------------------------------
STATEMENT OF OPERATIONS For the Year Ended September 30, 1994
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME Interest $286,716
-------------------------------------------------------------------------------------------------
Dividends (net of withholding taxes of $36,016) 244,640
-----------
Total income 531,356
-------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------
EXPENSES Management fees--Note 4 276,239
-------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 101,618
-------------------------------------------------------------------------------------------------
Service plan fees--Note 4 89,146
-------------------------------------------------------------------------------------------------
Shareholder reports 47,154
-------------------------------------------------------------------------------------------------
Custodian fees and expenses 32,020
-------------------------------------------------------------------------------------------------
Trustees' fees and expenses 24,235
-------------------------------------------------------------------------------------------------
Legal and auditing fees 18,607
-------------------------------------------------------------------------------------------------
Deferred organization expense 3,668
-------------------------------------------------------------------------------------------------
Other 31,223
-----------
Total expenses 623,910
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT LOSS (92,554)
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED Net realized gain from:
GAIN (LOSS) ON INVESTMENTS Investments 986,429
AND FOREIGN CURRENCY Foreign currency transactions 4,702
TRANSACTIONS -----------
Net realized gain 991,131
------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments (1,739,390)
Translation of assets and liabilities denominated in foreign currencies (278,903)
-----------
Net change (2,018,293)
-----------
Net realized and unrealized loss on investments and foreign currency transactions (1,027,162)
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $(1,119,716)
-----------
-----------
</TABLE>
See accompanying Notes to Financial Statements.
8 Oppenheimer Global Environment Fund
<PAGE>
------------------------------------------------------------
------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30,
1994 1993
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS Net investment income (loss) $(92,554) $71,384
-------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments and foreign
currency transactions 991,131 (1,132,242)
-------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation
on investments and translation of assets and liabilities
denominated in foreign currencies (2,018,293) 4,677,741
-------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations (1,119,716) 3,616,883
-------------------------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS Dividends from net investment income ($.018 per share) (68,722) --
-------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST
TRANSACTIONS Net decrease in net assets resulting from beneficial
interest transactions--Note 2 (12,393,718) (10,355,967)
-------------------------------------------------------------------------------------------------
NET ASSETS Total decrease (13,582,156) (6,739,084)
-------------------------------------------------------------------------------------------------
Beginning of year 43,271,541 50,010,625
----------- -----------
End of year [including accumulated net investment losses
of ($35,245) and ($50,066), respectively] $29,689,385 $43,271,541
----------- -----------
See accompanying Notes to Financial Statements.
</TABLE>
9 Oppenheimer Global Environment Fund
<PAGE>
------------------------------------------------------------
------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30,
1994 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) -- .01 (.03) .06 .04
Net realized and unrealized gain (loss)
on investments and foreign currency
transactions (.40) .80 (1.61) .99 (1.07)
------- ------ ------ ------ ------
Total income (loss) from investment
operations (.40) .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 $10.08 $10.50 $9.69 $11.35 $10.40
------ ------ ------ ------ ------
------ ------ ------ ------ ------
-------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(2) (3.84)% 8.36% (14.44)% 10.10% (9.01)%
-------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $29,689 $43,272 $50,011 $62,607 $45,050
-------------------------------------------------------------------------------------------------
Average net assets (in thousands) $36,794 $47,040 $57,224 $58,025 $26,638
-------------------------------------------------------------------------------------------------
Number of shares outstanding at end of
period (in thousands) 2,944 4,120 5,161 5,514 4,332
-------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) (.25)% .15% (.23%) .57% 1.18%(3)
Expenses 1.70% 1.65% 1.68% 1.57% 1.89%(3)
-------------------------------------------------------------------------------------------------
Portfolio turnover rate(4) 94.0% 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 year
ended September 30, 1994 were $32,849,902 and $44,924,356, respectively.
See accompanying Notes to Financial Statements.
</TABLE>
10 Oppenheimer Global Environment Fund
<PAGE>
------------------------------------------------------------
------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1. SIGNIFICANT Oppenheimer Global Environment Fund (the Fund) is registered
ACCOUNTING under the Investment Company Act of 1940, as amended, as a
POLICIES 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 September 30, 1994, the Fund had available
for federal income tax purposes an unused capital loss
carryover of approximately $14,024,000, $3,512,000 of which
will expire in 2000, $10,056,000 in 2001 and $456,000 in
2002.
------------------------------------------------------------
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 $27,818 at September 30, 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>
------------------------------------------------------------
------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Continued)
- --------------------------------------------------------------------------------
1. SIGNIFICANT Distributions to Shareholders. Dividends and distributions
ACCOUNTING to shareholders are recorded on the ex-dividend date.
POLICIES ------------------------------------------------------------
(CONTINUED) CHANGE IN ACCOUNTING FOR DISTRIBUTIONS TO SHAREHOLDERS.
Effective October 1, 1993, the Fund adopted Statement of
Position 93-2: Determination, Disclosure, and Financial
Statement Presentation of Income, Capital Gain, and Return
of Capital Distributions by Investment Companies. As a
result, the Fund changed the classification of distributions
to shareholders to better disclose the differences between
financial statement amounts and distributions determined in
accordance with income tax regulations. Accordingly,
subsequent to September 30, 1993, amounts have been
reclassified to reflect a decrease in paid-in capital of
$103,122, a decrease in undistributed net investment loss of
$84,490, and a decrease in undistributed capital loss on
investments of $18,632. During the year ended September 30,
1994, in accordance with Statement of Position 93-2, paid-in
capital was decreased by $86,953, undistributed net
investment loss was decreased by $91,607 and undistributed
capital loss was increased by $4,654.
------------------------------------------------------------
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 The Fund has authorized an unlimited number of no par value
BENEFICIAL shares of beneficial interest. Transactions in shares of
INTEREST beneficial interest were as follows:
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30, 1994 YEAR ENDED SEPTEMBER 30, 1993
------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT
----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Sold 397,173 $ 4,266,257 728,378 $ 7,206,866
Dividends reinvested 6,008 64,222 -- --
Redeemed (1,578,549) (16,724,197) (1,770,153) (17,562,833)
----------- ------------- ----------- -------------
Net decrease (1,175,368) $(12,393,718) (1,041,775) $(10,355,967)
----------- ------------- ----------- -------------
----------- ------------- ----------- -------------
- -------------------------------------------------------------------------------
</TABLE>
3. UNREALIZED At September 30, 1994, net unrealized appreciation on
GAINS AND investments of $4,001,134 was composed of gross appreciation
LOSSES ON of $4,927,199, and gross depreciation of $926,065.
INVESTMENTS
- -------------------------------------------------------------------------------
4. MANAGEMENT Management fees paid to the Manager were in accordance with
FEES AND the investment advisory agreement with the Fund which
OTHER provides for an annual fee of .75% on the first $200 million
TRANSACTIONS of net assets with a reduction of .03% on each $200 million
WITH thereafter, to .66% on net assets in excess of $600 million.
AFFILIATES 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 year ended September 30, 1994, commissions
(sales charges paid by investors) on sales of Fund shares
totaled $108,918, of which $27,810 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 personal service
and maintenance of accounts that hold shares of the Fund,
including amounts paid to brokers, dealers, banks and other
financial institutions. During the year ended September 30,
1994, OFDI paid $2,366 to an affiliated broker/dealer as
reimbursement for personal service and maintenance expenses.
12 Oppenheimer Global Environment Fund
<PAGE>
- ------------------------------------------------------------------------------
5. RESTRICTED The Fund owns securities purchased in private placement
SECURITIES 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. At September 30, 1994, all
restricted and illiquid securities were transferable under
Rule 144A of the Act. They are:
<TABLE>
<CAPTION>
VALUATION
PER UNIT
AS OF
COST SEPTEMBER 30,
SECURITY ACQUISITION DATE PER UNIT 1994
<S> <C> <C> <C>
Chiron Corp., 1.90% Cv. Sub. Nts., 11/17/00(1) 6/9/94--8/4/94 $71.08 $76.63
---------------------------------------------------------------------------------------------------------
Cypress Semiconductor Corp., 3.15% Sub. Nts., 3/15/01(1) 6/23/94 $77.63 $81.00
<FN>
1. Transferable under Rule 144A of the Act.
</TABLE>
- -------------------------------------------------------------------------------
6. REORGANIZATION At a shareholder meeting scheduled for November 11, 1994,
shareholders of Oppenheimer Global Environment Fund (the
Fund) will be asked to approve a reorganization of the Fund
with and into Oppenheimer Global Emerging Growth Fund
(formerly, Oppenheimer Global Bio-Tech Fund) whereby
shareholders of the Fund would receive shares of Oppenheimer
Global Emerging Growth Fund and the Fund would be
liquidated. If shareholder approval is received, it is
expected that the reorganization will be consummated on or
about November 18, 1994.
------------------------------------------------------------
FEDERAL INCOME TAX INFORMATION (Unaudited)
- --------------------------------------------------------------------------------
In early 1995, shareholders will receive information
regarding all dividends and distributions paid to them by
the Fund during calendar year 1994. Regulations of the U.S.
Treasury Department require the Fund to report this
information to the Internal Revenue Service.
None of the dividends paid by the Fund during the
fiscal year ended September 30, 1994 are eligible for the
corporate dividend-received deduction.
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.
13 Oppenheimer Global Environment Fund
<PAGE>
------------------------------------------------------------
INDEPENDENT AUDITORS' REPORT
- --------------------------------------------------------------------------------
The Board of Trustees and Shareholders of Oppenheimer Global
Environment Fund:
We have audited the accompanying statements of investments
and assets and liabilities of Oppenheimer Global Environment
Fund as of September 30, 1994, 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 four-year period then ended and the period
from March 2, 1990 (commencement of operations) to September
30, 1990. 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
generally accepted auditing standards. 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 and financial highlights. Our procedures included
confirmation of securities owned as of September 30, 1994,
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
Global Environment Fund as of September 30, 1994, 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 four-year period then ended and the
period from March 2, 1990 (commencement of operations) to
September 30, 1990, in conformity with generally accepted
accounting principles.
KPMG PEAT MARWICK LLP
Denver, Colorado
October 21, 1994
14 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
Robert J. Bishop, Assistant Treasurer
Scott Farrar, Assistant Treasurer
Andrew J. Donohue, Secretary
Robert G. Zack, Assistant Secretary
- --------------------------------------------------------------------------------
INVESTMENT ADVISOR Oppenheimer Management Corporation
- --------------------------------------------------------------------------------
DISTRIBUTOR Oppenheimer Funds Distributor, Inc.
- --------------------------------------------------------------------------------
TRANSFER AND SHAREHOLDER Oppenheimer Shareholder Services
SERVICING AGENT
- --------------------------------------------------------------------------------
CUSTODIAN OF The Bank of New York
PORTFOLIO SECURITIES
- --------------------------------------------------------------------------------
INDEPENDENT AUDITORS KPMG Peat Marwick LLP
- --------------------------------------------------------------------------------
LEGAL COUNSEL Gordon Altman Butowsky Weitzen Shalov & Wein
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.
15 Oppenheimer Global Environment Fund
<PAGE>
"HOW MAY I HELP YOU?"
- --------------------------------------------------------------------------------
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 photo B.H.
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.
icsa logo
"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."
- --------------------------------------------------------------------------------
[LOGO] OppenheimerFunds Bulk Rate
Oppenheimer Funds Distributor, Inc. U.S. Postage
P.O. Box 5270 PAID
Denver, CO 80217-5270 Permit No. 314
Farmingdale, NY
