OPPENHEIMER GLOBAL GROWTH & INCOME FUND
Supplement dated September 30, 1994 to the
Prospectus dated January 20, 1994
The Prospectus is amended as follows:
1. The supplement dated July 1, 1994, and the supplements dated January
20, 1994 for use in the States of Missouri, South Dakota and Wisconsin,
are hereby superceded.
2. The following is added on page 5 immediately preceding
"International Securities":
-- Special Risks - Borrowing for Leverage. The Fund may borrow up
to 10% of the value of its assets from banks on an unsecured basis
to buy securities. This is a speculative investment method known as
"leverage." Leveraging may subject an investment in the Fund to
greater risks and costs than funds that do not borrow. These risks
may include the possible reduction of income and increased
fluctuation in the Fund's net asset value per share, since the Fund
pays interest on borrowings. Borrowing is subject to regulatory
limits, described in more detail in the Statement of Additional
Information.
3. The following is added on page 9 immediately preceding "Writing
Covered Calls":
-- Participation Interests. The Fund may acquire participation
interests in loans that are made to U.S. or foreign companies (the
"borrower"). They may be interests in, or assignments of, the loan
and are acquired from banks or brokers that have made the loan or
are members of the lending syndicate. No more than 5% of the
Fund's net assets can be invested in participation interest of the
same issuer. The Manager has set certain creditworthiness
standards for issuers of loan participations, and monitors their
creditworthiness. The value of loan participation interests depends
primarily upon the creditworthiness of the borrower, and its ability
to pay interest and principal. Borrowers may have difficulty making
payments. If a borrower fails to make scheduled interest or
principal payments, the Fund could experience a decline in the net
asset value of its shares. Some borrowers may have senior
securities rated as low as "C" by Moody's or "D" by Standard &
Poor's, but may be deemed acceptable credit risks. Participation
interests are subject to the Fund's limitations on investments in
illiquid securities. See "Restricted and Illiquid Securities".
4. Delete the section captioned "Hedging - Forward Contracts" on pages
10-11 and replace it with the following:
-- Forward Contracts. The Fund may enter into foreign currency
exchange contracts ("Forward Contracts"), which obligate the seller
to deliver and the purchaser to take a specific amount of foreign
currency at a specific future date for a fixed price. The Fund may
enter into a Forward Contract in order to "lock in" the U.S. dollar
price of a security denominated in a foreign currency which it has
purchased or sold but which has not yet settled, or to protect
against a possible loss resulting from an adverse change in the
relationship between the U.S. dollar and a foreign currency. There
is a risk that use of Forward Contracts may reduce gain that would
otherwise result from a change in the relationship between the U.S.
dollar and a foreign currency.
5. Insert the following on page 12 after the section captioned
"Hedging":
Derivative Investments. The Fund can invest in a number of
different kinds of "derivative investments." In general, a
"derivative investment" is a specially designed investment whose
performance is linked to the performance of another investment or
security, such as an option, future, index or currency. In the
broadest sense, derivative investments include exchange-traded
options and futures contracts (see "Writing Covered Calls" and
"Hedging"). The risks of investing in derivative investments
include not only the ability of the company issuing the instrument
to pay the amount due on the maturity of the instrument, but also
the risk that the underlying investment or security might not
perform the way the Manager expected it to perform. The performance
of derivative investments may also be influenced by interest rate
changes in the U.S. and abroad. All of this can mean that the Fund
will realize less principal and/or income than expected. Certain
derivative investments held by the Fund may trade in the over-the-
counter market and may be illiquid. See "Restricted and Illiquid
Securities."
Examples of derivative investments the Fund may invest in
include, among others, "index-linked" notes. These are debt
securities of companies that call for payment on the maturity of the
note in different terms than the typical note where the borrower
agrees to pay a fixed sum on the maturity of the note. The payment
on maturity of an index-linked note depends on the performance of
one or more market indices, such as the S & P 500 Index. Further
examples of derivative investments the Fund may invest in include
"debt exchangeable for common stock" of an issuer or "equity-linked
debt securities" of an issuer. At maturity, the principal amount of
the debt security is exchanged for common stock of the issuer or is
payable in an amount based on the issuer's common stock price at the
time of maturity. In either case there is a risk that the amount
payable at maturity will be less than the principal amount of the
debt.
Other examples of derivative investments the Fund may invest in
are currency-indexed securities. These are typically short-term or
intermediate-term debt securities whose maturity values or interest
rates are determined by reference to one or more specified foreign
currencies. Certain currency-indexed securities purchased by the
Fund may have a payout factor tied to a multiple of the movement of
the U.S. dollar (or the foreign currency in which the security is
denominated) against the movement in the U.S. dollar, the foreign
currency, another currency, or an index. Such securities may be
subject to increased principal risk and increased volatility than
comparable securities without a payout factor in excess of one, but
the Manager believes the increased yield justifies the increased
risk.
September 30, 1994 PS215
