<PAGE> 1
OPPENHEIMER GLOBAL GROWTH & INCOME FUND
Annual Report September 30, 1996
[PHOTO]
"We need our
money to grow
because we have
long-term
goals. But we
know stocks
can have ups
and downs."
[OPPENHEIMERFUNDS LOGO]
<PAGE> 2
NEWS
BEAT THE AVERAGES
Cumulative Total Return for the
3-Year Period Ended 9/30/96:
Oppenheimer Global Growth
& Income Fund
Class A (at net asset value)(1)
38.68%
Lipper Global Flexible Portfolio Funds Average for 18 Funds for the 3-Year
Period Ended 9/30/96(3)
27.01%
THIS FUND IS FOR PEOPLE WHO WANT TO TAKE ADVANTAGE OF OPPORTUNITIES WORLDWIDE
BUT NEED TO REDUCE THE EFFECT OF SHORT-TERM MARKET FLUCTUATIONS.
HOW YOUR FUND IS MANAGED
Oppenheimer Global Growth & Income Fund seeks to take advantage of long-term
growth opportunities worldwide while trying to limit short-term market risks.
To seek its growth objective, the Fund invests in stocks using a focused global
theme approach to identify companies and countries that meet its criteria. At
the same time, the Fund invests part of its portfolio in bonds and
dividend-producing stocks to use current income to seek to moderate the
effects of market volatility.
PERFORMANCE
Total returns at net asset value for the 12 months ended 9/30/96 were 13.28%
for Class A shares and 12.45% for Class C shares. Cumulative total return at
net asset value for Class B shares since inception on 10/10/95 was 14.33%.(1)
Your Fund's average annual total returns at maximum offering price for
Class A shares for the 1- and 5-year period ended 9/30/96 and since inception
on 10/22/90 were 6.76%, 9.21% and 9.73%, respectively. For Class B shares,
cumulative total return since inception on 10/10/95 was 9.33%. For Class C
shares, average annual total returns for the 1-year period ended 9/30/96 and
since inception on 12/1/93 were 11.45% and 9.34%, respectively.(2)
OUTLOOK
"We believe the outlook for the Fund is very positive. The Fund is
well-positioned to take advantage of expanding economies around the world. We
are invested in strong companies with very good, long-term growth potential."
Frank Jennings, Portfolio Manager
September 30, 1996
Total returns include change in share price and reinvestment of dividends and
capital gains distributions. In reviewing the notes that follow on performance
and rankings, please be aware that past performance does not guarantee future
results. Investment return and principal value of an investment in the Fund
will fluctuate so that an investor's shares, when redeemed, may be worth more
or less than the original cost.
1. Based on the change in net asset value per share for the period shown,
without deducting any sales charges. Such performance would have been lower if
sales charges were taken into account.
2. Class A returns show results of hypothetical investments on 9/30/95, 9/30/91
and 10/22/90 (inception of class), after deducting the maximum initial sales
charge of 5.75%. Class B returns show results of a hypothetical investment on
10/10/95 (inception of class), after the deduction of the applicable contingent
deferred sales charge of 5%. Class C returns show results of hypothetical
investments on 9/30/95 and 12/1/93 (inception of class), after the deduction of
the 1% contingent deferred sales charge for the 1-year result. An explanation
of the different total returns is in the Fund's prospectus.
3. Source: Lipper Analytical Services, 9/30/96, an independent mutual fund
monitoring service. The average is shown for comparative purposes only.
Oppenheimer Global Growth & Income Fund is characterized by Lipper as a global
flexible portfolio fund. Lipper performance does not take sales charges into
consideration.
2 Oppenheimer Global Growth & Income Fund
<PAGE> 3
[PHOTO]
Bridget A. Macaskill
President
Oppenheimer
Global Growth &
Income Fund
DEAR SHAREHOLDER,
While most of the world's markets have lagged the amazing growth of domestic
stocks this year, we believe the time is right for them to catch up. This
belief, coupled with the strong though at times unpredictable performance of
the U.S. market over the period, makes a compelling case for global funds,
which typically invest in a combination of domestic and foreign securities.
Over the past six months, the U.S. stock market has shown investors
just how resilient it can be. During this summer, the Dow declined nearly 10%,
only to soar to record highs in the fall. As a result, stock valuations are
now high, indicating that this bull market could be nearing the top of the
mountain. However, due to solid corporate profits, low inflation, and
stabilized interest rates, we remain optimistic that this market has enough
strength to advance through 1997.
While we've been pleased with earnings in the U.S. market, we believe
now is the time to focus on good opportunities abroad. Why? Analysts estimate
earnings in North America for 1996 will be up about 8% by the end of this year.
Across the rest of the globe, however, they predict corporate earnings will
increase by almost 40%, with the potential for an additional 17% gain in 1997.
In fact, particularly in Europe, we're seeing a trend in corporate
restructuring, including downsizing, outsourcing and spinoffs.
As for economic growth in developing countries, Brazil has emerged as
a dominant player in 1996, and we believe it has great potential for the coming
years. In general, the spending power of the population in developing countries
keeps growing. For the first time, a substantial number of individuals are
buying consumer products, including motorcycles, TVs and cars.
Additionally, there has been a turnabout in Japan. After a five-year
recession, the Japanese economy recently began to recover, unearthing numerous
investment opportunities. Furthermore, around the world, there has been a
significant move toward capitalism. Right now, the wealth of the world is built
on the combined spending power of 700 million people. However, as the 4.5
billion people who live in developing countries become more capitalistic, we
will undoubtedly see a chain reaction which may revitalize a number of
industries that cater to the consumer.
Despite this pickup in global economic growth, inflation has remained
low. Moreover, many European governments are now concentrating on balancing
their budgets in anticipation of a European monetary union. So, it is
reasonable to expect global interest rates to remain low into 1997. In the end,
all these changes bode well for global stock markets and economies.
Because investing abroad involves greater risk and expenses, including
political and economic uncertainties, currency rate fluctuations and liquidity
restrictions, it should be undertaken with a long-term approach in mind. That
said, we're confident that by diversifying your investments throughout the
world, you should be well positioned to participate in any economic
environment.
Your portfolio managers discuss the outlook for your Fund in light of
these broad issues on the following pages. Thank you for your confidence in
OppenheimerFunds. We look forward to helping you reach your investment goals in
the future.
/s/ BRIDGET A. MACASKILL
- --------------------------
Bridget A. Macaskill
October 21, 1996
3 Oppenheimer Global Growth & Income Fund
<PAGE> 4
Q WHAT AREAS ARE YOU CURRENTLY TARGETING?
Q + A
[PHOTO]
AN INTERVIEW WITH YOUR FUND'S MANAGERS.
HOW HAS THE FUND PERFORMED OVER THE PAST YEAR?
The past six months have been difficult for global markets in general. Many
uncertainties around the world led to increased volatility in the market, which
was reflected in the Fund's performance over the past year. Because Oppenheimer
Global Growth & Income Fund has a more growth-oriented portfolio than many of
its peers, performance was hurt by the decline in the U.S. stock market during
June and July. However, as a result of the subsequent rebound of the market,
the Fund's performance improved.
[PHOTO]
WHAT INVESTMENTS MADE POSITIVE CONTRIBUTIONS TO PERFORMANCE?
Before last summer's domestic market decline, bonds encountered difficult
times, as interest rates climbed from 6 to 7.5%, resulting in a dramatic drop
in the prices of outstanding issues. However, since the Fund was mainly focused
on equities during this time, our performance didn't suffer as significantly as
did many similar funds with higher concentration in bonds. This helped us to
begin moving ahead of the competition.
[PHOTO]
In addition to our advantageous positioning with respect to bonds, we had
several good stock picks, with pure growth stocks performing the best.
Increased consumer spending power has pushed up the stock prices of companies
producing and distributing luxury goods, and this trend has also been reflected
in the areas of consumer throwaways, such as ball point pens and stockings.(1)
DID ANY INVESTMENTS NOT PERFORM AS YOU'D EXPECTED?
We were hurt by the weak performance of many Japanese and other Far East
stocks this year. In retrospect, the decline of these markets clearly resulted
from fears of global
1. The Fund's portfolio is subject to change.
4 Oppenheimer Global Growth & Income Fund
<PAGE> 5
FACING PAGE
Top left: Frank Jennings, Portfolio Manager
Top right: Bill Wilby, Senior VP,
Director of Global Investments
Bottom: Robert Doll, Executive VP,
Director of Equity Investments
THIS PAGE
Top: George Evans, Member
of Global Investments Team
Bottom: Shanquan Li, Member
of Global Investments Team
A WE BELIEVE THAT THE MEDICAL TECHNOLOGY AREA HOLDS A GREAT DEAL OF POTENTIAL.
credit tightening, which drove up interest rates in several of these countries.
Also, foreign investments subject the Fund to greater expenses and risks, such
as currency fluctuations.
In addition, the Fund's telecommunications stocks were somewhat
disappointing. As a result, we are moving the portfolio away from companies
which supply telecommunications services. While the increased demand for such
services is remarkable, growing competition in the industry has lowered
profits.
WHAT AREAS ARE YOU CURRENTLY TARGETING?
We will continue to emphasize investments in the following themes: technology,
communications, health care, natural resources, infrastructure and
restructuring. We believe that the medical technology area, particularly
surgical instruments, holds a great deal of potential due to the surge to
develop new technologies that will minimize hospital stays, as well as increase
surgical precision.
[PHOTO]
Also, we continue to look at pharmaceutical and biotechnology companies.
Although hit hard during the decline of the U.S. stock market this summer,
these sectors have since begun to rebound--and are now considered true
bargains. With the massive amount of research to find cures or treatments for
a multitude of diseases, we feel our investments in these types of companies
will benefit as discoveries are announced and come to market.
[PHOTO]
Another favorite investment theme, consumer non-cyclicals, targets the
middle class. Since their numbers are growing substantially, we're interested
in companies that directly affect middle-class consumers, such as popular name
brand apparel franchises and soft drinks.
WHAT IS THE OUTLOOK FOR THE FUND?
We believe the outlook for the Fund is very positive. The Fund is
well-positioned to take advantage of expanding economies around the world. We
are invested in strong companies with very good, long-term growth potential.
At this point, we still believe stocks remain more attractive than bonds,
particularly growth stocks, although we do expect the bond markets to continue
to improve.
5 Oppenheimer Global Growth & Income Fund
<PAGE> 6
FINANCIALS
CONTENTS
STATEMENT OF INVESTMENTS 7
STATEMENT OF ASSETS AND LIABILITIES 11
STATEMENT OF OPERATIONS 12
STATEMENTS OF CHANGES IN NET ASSETS 13
FINANCIAL HIGHLIGHTS 14
NOTES TO FINANCIAL STATEMENTS 16
INDEPENDENT AUDITORS' REPORT 20
FEDERAL INCOME TAX INFORMATION 21
6 Oppenheimer Global Growth & Income Fund
<PAGE> 7
STATEMENT OF INVESTMENTS September 30, 1996
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT(1) SEE NOTE 1
======================================================================================================================
<S> <C> <C>
U.S. GOVERNMENT OBLIGATIONS--4.3%
- ----------------------------------------------------------------------------------------------------------------------
U.S. Treasury Bonds, STRIPS, Zero Coupon:
7.467%, 11/15/18(2) $ 5,000,000 $ 1,032,349
7.265%, 11/15/22(2) 8,000,000 1,260,744
7.41%, 11/15/22(2) 7,000,000 1,103,151
7.467%, 8/15/20(2) 7,000,000 1,275,736
7.377%, 8/15/22(2) 8,000,000 1,280,055
7.305%, 8/15/23(2) 7,000,000 1,062,572
-----------
Total U.S. Government Obligations (Cost $6,731,653) 7,014,607
======================================================================================================================
FOREIGN GOVERNMENT OBLIGATIONS--6.9%
- ----------------------------------------------------------------------------------------------------------------------
Argentina (Republic of) Past Due Interest Bonds, Series L, 6.625%,
3/31/05(3) 1,470,000 1,232,963
--------------------------------------------------------------------------------------------------------------
Bonos de la Tesoreria de la Federacion, Zero Coupon:
36.915%, 4/3/97(2) (MXP) 31,320,000 3,637,259
31.237%, 4/30/97(2) (MXP) 15,000,000 1,710,691
--------------------------------------------------------------------------------------------------------------
Spain (Kingdom of) Gtd. Bonds, Bonos y Obligacion del Estado,
10.30%, 6/15/02 (ESP) 150,000,000 1,315,369
--------------------------------------------------------------------------------------------------------------
Venezuela (Republic of) Front-Loaded Interest Reduction Bonds,
Series B, 6.50%, 3/31/07(3) 4,000,000 3,372,500
-----------
Total Foreign Government Obligations (Cost $9,676,831) 11,268,782
======================================================================================================================
NON-CONVERTIBLE CORPORATE BONDS AND NOTES--6.2%
- ----------------------------------------------------------------------------------------------------------------------
AMC Entertainment, Inc., 12.625% Sr. Sub. Gtd. Nts., 8/1/02 500,000 544,375
--------------------------------------------------------------------------------------------------------------
Carbide/Graphite Group, Inc. (The), 11.50% Sr. Nts., 9/1/03 316,000 346,810
--------------------------------------------------------------------------------------------------------------
Chiquita Brands International, Inc., 9.625% Sr. Nts., 1/15/04 500,000 510,000
--------------------------------------------------------------------------------------------------------------
Foodmaker, Inc., 9.25% Sr. Nts., 3/1/99 1,000,000 1,002,500
--------------------------------------------------------------------------------------------------------------
Grand Union Co., 12% Sr. Nts., 9/1/04 2,000,000 2,027,500
--------------------------------------------------------------------------------------------------------------
Magellan Health Services, Inc., 11.25% Sr. Sub. Nts., Series A, 4/15/04 500,000 547,500
--------------------------------------------------------------------------------------------------------------
Matahari International Finance Co. BV, 11.25% Gtd. Nts., 3/15/01 500,000 540,000
--------------------------------------------------------------------------------------------------------------
OPI International, Inc., 12.875% Sr. Gtd. Nts., 7/15/02 500,000 552,500
--------------------------------------------------------------------------------------------------------------
Oryx Energy Co., 10% Debs., 4/1/01 1,000,000 1,087,763
--------------------------------------------------------------------------------------------------------------
Rabobank Nederland, 10.375% Debs., 6/21/00 (ITL) 1,500,000,000 1,065,586
--------------------------------------------------------------------------------------------------------------
Sequa Corp., 9.375% Sr. Sub. Nts., 12/15/03 1,000,000 987,500
--------------------------------------------------------------------------------------------------------------
Tultex Corp., 10.625% Sr. Gtd. Nts., 3/15/05(4) 1,000,000 1,057,500
-----------
Total Non-Convertible Corporate Bonds and Notes (Cost $10,019,601) 10,269,534
<CAPTION>
SHARES
======================================================================================================================
<S> <C> <C>
COMMON STOCKS--78.7%
- ----------------------------------------------------------------------------------------------------------------------
BASIC MATERIALS--4.9%
- ----------------------------------------------------------------------------------------------------------------------
CHEMICALS--2.3%
Freeport-McMoRan Resource Partners, LP 200,000 3,775,000
- ----------------------------------------------------------------------------------------------------------------------
METALS--2.6%
Cia de Minas Buenaventura SA, Series A 465,000 4,186,783
- ----------------------------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS--16.0%
- ----------------------------------------------------------------------------------------------------------------------
AUTOS & HOUSING--5.3%
IRSA Inversiones y Representaciones, SA 406,002 1,185,678
--------------------------------------------------------------------------------------------------------------
Porsche AG, Preference(5) 11,000 7,521,972
-----------
8,707,650
</TABLE>
7 Oppenheimer Global Growth & Income Fund
<PAGE> 8
STATEMENT OF INVESTMENTS (Continued)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
MEDIA--2.2%
Viacom, Inc., Cl. B(5) 100,000 $3,550,000
- ----------------------------------------------------------------------------------------------------------------------
RETAIL: GENERAL--1.8%
Galeries Lafayette(5) 6,030 1,747,809
--------------------------------------------------------------------------------------------------------------
Trade House GUM, Sponsored ADR(5) 30,000 1,170,000
-----------
2,917,809
- ----------------------------------------------------------------------------------------------------------------------
RETAIL: SPECIALTY--6.7%
Reebok International Ltd. 90,000 3,127,500
--------------------------------------------------------------------------------------------------------------
Wella AG 8,000 4,830,636
--------------------------------------------------------------------------------------------------------------
Wolford AG 12,000 3,064,266
-----------
11,022,402
- ----------------------------------------------------------------------------------------------------------------------
CONSUMER NON-CYCLICALS--11.1%
- ----------------------------------------------------------------------------------------------------------------------
BEVERAGES--5.9%
Allied Domecq PLC 700,000 4,902,819
--------------------------------------------------------------------------------------------------------------
Remy Cointreau 126,400 3,193,520
--------------------------------------------------------------------------------------------------------------
Serm Suk Public Co. Ltd. 50,000 1,534,377
-----------
9,630,716
- ----------------------------------------------------------------------------------------------------------------------
HEALTHCARE/DRUGS--3.4%
Amgen, Inc.(5) 20,000 1,262,500
--------------------------------------------------------------------------------------------------------------
Genzyme Corp.(5) 150,000 3,825,000
--------------------------------------------------------------------------------------------------------------
Neurogen Corp.(5) 20,000 505,000
-----------
5,592,500
- ----------------------------------------------------------------------------------------------------------------------
HEALTHCARE/SUPPLIES &
SERVICES--1.8%
United States Surgical Corp. 70,000 2,975,000
- ----------------------------------------------------------------------------------------------------------------------
ENERGY--1.4%
- ----------------------------------------------------------------------------------------------------------------------
OIL-INTEGRATED--1.4%
Lukoil Oil Co., Sponsored ADR 33,200 1,210,947
--------------------------------------------------------------------------------------------------------------
Petroleo Brasileiro SA, Preference 10,000,000 1,145,886
-----------
2,356,833
- ----------------------------------------------------------------------------------------------------------------------
FINANCIAL--10.1%
- ----------------------------------------------------------------------------------------------------------------------
BANKS--3.3%
Banco Bradesco SA, Preference 334,618,073 2,834,791
--------------------------------------------------------------------------------------------------------------
Grupo Financiero Banorte SA de CV, Series B 700,000 743,574
--------------------------------------------------------------------------------------------------------------
Industrial Credit & Investment Corp. of India Ltd. (The), GDR(5) (6) 162,500 1,807,812
-----------
5,386,177
- ----------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL--6.7%
Cie Financiere de Paribas, Series A 80,000 5,146,039
--------------------------------------------------------------------------------------------------------------
Hopewell Holdings Ltd. 9,000,000 5,091,802
--------------------------------------------------------------------------------------------------------------
Taubman Centers, Inc. 75,000 834,375
-----------
11,072,216
- ----------------------------------------------------------------------------------------------------------------------
INSURANCE--0.1%
Marschollek, Lautenschlaeger und Partner AG 1,000 137,681
- ----------------------------------------------------------------------------------------------------------------------
INDUSTRIAL--5.0%
- ----------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--1.3%
FORE Systems, Inc.(5) 20,000 827,500
--------------------------------------------------------------------------------------------------------------
Weg SA, Preference 2,846,000 1,337,925
-----------
2,165,425
</TABLE>
8 Oppenheimer Global Growth & Income Fund
<PAGE> 9
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL SERVICES--0.5%
Adecco SA 1,490 $ 410,075
--------------------------------------------------------------------------------------------------------------
Intelligroup, Inc.(5) 28,000 388,500
-----------
798,575
- ----------------------------------------------------------------------------------------------------------------------
MANUFACTURING--1.8%
Berkshire Hathaway, Inc., Cl. A(5) 10 321,500
--------------------------------------------------------------------------------------------------------------
Bic Corp. 20,000 2,627,270
-----------
2,948,770
- ----------------------------------------------------------------------------------------------------------------------
TRANSPORTATION--1.4%
Sea Containers Ltd., Cl. A 120,000 2,355,000
- ----------------------------------------------------------------------------------------------------------------------
TECHNOLOGY--30.2%
- ----------------------------------------------------------------------------------------------------------------------
AEROSPACE/DEFENSE--2.7%
Rolls-Royce PLC 1,200,000 4,490,957
- ----------------------------------------------------------------------------------------------------------------------
COMPUTER HARDWARE--3.9%
QUALCOMM, Inc.(5) 150,000 6,375,000
- ----------------------------------------------------------------------------------------------------------------------
COMPUTER SOFTWARE--13.6%
Cap Gemini SA(5) 75,000 3,284,088
--------------------------------------------------------------------------------------------------------------
Ines Corp. 290,000 5,233,669
--------------------------------------------------------------------------------------------------------------
Nintendo Co. Ltd. 110,000 7,061,727
--------------------------------------------------------------------------------------------------------------
PLATINUM Technology, Inc.(5) 200,000 2,525,000
--------------------------------------------------------------------------------------------------------------
SAP AG, Preference 25,000 4,195,992
-----------
22,300,476
- ----------------------------------------------------------------------------------------------------------------------
ELECTRONICS--10.0%
Burr-Brown Corp.(5) 75,000 1,500,000
--------------------------------------------------------------------------------------------------------------
Coherent, Inc.(5) 170,000 5,992,500
--------------------------------------------------------------------------------------------------------------
National Semiconductor Corp.(5) 360,000 7,245,000
--------------------------------------------------------------------------------------------------------------
Texas Instruments, Inc. 30,000 1,653,750
-----------
16,391,250
- ----------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS-
TECHNOLOGY--0.0%
Millicom, Inc.(5) 15,500 --
-----------
Total Common Stocks (Cost $124,601,241) 129,136,220
======================================================================================================================
PREFERRED STOCKS--0.8%
- ----------------------------------------------------------------------------------------------------------------------
Marschollek, Lautenschlaeger und Partner-VO, Non-vtg.
Preferred Stock (Cost $626,533) 10,000 1,258,798
======================================================================================================================
OTHER SECURITIES--2.4%
- ----------------------------------------------------------------------------------------------------------------------
U.S. Surgical Corp., $2.20 Depositary Shares representing
one-fiftieth share of Series A Preferred Stock (Cost $2,823,941) 95,000 3,930,625
<CAPTION>
UNITS
======================================================================================================================
<S> <C> <C>
RIGHTS, WARRANTS AND CERTIFICATES--0.0%
- ----------------------------------------------------------------------------------------------------------------------
American Satellite Network, Inc. Wts., Exp. 6/99 (Cost $0) 3,875 --
</TABLE>
9 Oppenheimer Global Growth & Income Fund
<PAGE> 10
STATEMENT OF INVESTMENTS (Continued)
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT(1) SEE NOTE 1
======================================================================================================================
<S> <C> <C>
REPURCHASE AGREEMENT--1.1%
- ----------------------------------------------------------------------------------------------------------------------
Repurchase agreement with Zion First National Bank, 5.62%,
dated 9/30/96, to be repurchased at $1,800,281 on 10/1/96,
collateralized by U.S. Treasury Nts., 5.75%--8.875%, 5/15/97--8/15/04,
with a value of $1,837,008 (Cost $1,800,000) $1,800,000 $ 1,800,000
- ----------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $156,279,800) 100.4% 164,678,566
- ----------------------------------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS (0.4) (627,834)
---------- ------------
NET ASSETS 100.0% $164,050,732
========== ============
</TABLE>
Distribution of investments by country of issue, as a percentage of
total investments at value, is as follows:
<TABLE>
<CAPTION>
COUNTRY MARKET VALUE PERCENT
--------------------------------------------------------------------------------------------------------------
<S> <C> <C>
United States $70,447,304 42.8%
--------------------------------------------------------------------------------------------------------------
Germany 17,945,078 10.9
--------------------------------------------------------------------------------------------------------------
France 15,998,726 9.7
--------------------------------------------------------------------------------------------------------------
Japan 12,295,397 7.5
--------------------------------------------------------------------------------------------------------------
Great Britain 9,393,776 5.7
--------------------------------------------------------------------------------------------------------------
Mexico 6,091,525 3.7
--------------------------------------------------------------------------------------------------------------
Brazil 5,318,602 3.2
--------------------------------------------------------------------------------------------------------------
Hong Kong 5,091,802 3.1
--------------------------------------------------------------------------------------------------------------
Peru 4,186,783 2.5
--------------------------------------------------------------------------------------------------------------
Venezuela 3,372,500 2.0
--------------------------------------------------------------------------------------------------------------
Austria 3,064,266 1.9
--------------------------------------------------------------------------------------------------------------
Argentina 2,418,640 1.5
--------------------------------------------------------------------------------------------------------------
Russia 2,380,947 1.4
--------------------------------------------------------------------------------------------------------------
India 1,807,813 1.1
--------------------------------------------------------------------------------------------------------------
The Netherlands 1,605,586 1.0
--------------------------------------------------------------------------------------------------------------
Thailand 1,534,377 0.9
--------------------------------------------------------------------------------------------------------------
Spain 1,315,369 0.8
--------------------------------------------------------------------------------------------------------------
Switzerland 410,075 0.2
------------ -----
Total $164,678,566 100.0%
============ =====
</TABLE>
1. Face amount is reported in U.S. Dollars, except for those denoted in
the following currencies:
ESP -- Spanish Peseta MXP -- Mexican Peso
ITL -- Italian Lira
2. For zero coupon bonds, the interest rate shown is the effective
yield on the date of purchase.
3. Represents the current interest rate for a variable rate security.
4. A sufficient amount of securities has been designated to cover
outstanding forward foreign currency exchange contracts. See Note 5 of
Notes to Financial Statements.
5. Non-income producing security.
6. Represents a security sold under Rule 144A, which is exempt from
registration under the Securities Act of 1933, as amended. This
security has been determined to be liquid under guidelines established
by the Board of Trustees. This security amounts to $1,807,812 or 1.10%
of the Fund's net assets, at September 30, 1996.
See accompanying Notes to Financial Statements.
10 Oppenheimer Global Growth & Income Fund
<PAGE> 11
STATEMENT OF ASSETS AND LIABILITIES September 30, 1996
<TABLE>
<S> <C>
======================================================================================================================
ASSETS
Investments, at value (cost $156,279,800)--see accompanying statement $164,678,566
--------------------------------------------------------------------------------------------------------------
Cash 187,281
--------------------------------------------------------------------------------------------------------------
Unrealized appreciation on forward foreign currency exchange contracts--Note 5 502,455
--------------------------------------------------------------------------------------------------------------
Receivables:
Investments sold 1,910,336
Interest, dividends and principal paydowns 756,080
Closed forward foreign currency exchange contracts 624,788
Shares of beneficial interest sold 96,778
--------------------------------------------------------------------------------------------------------------
Other 6,362
-----------
Total assets 168,762,646
======================================================================================================================
LIABILITIES
Unrealized depreciation on forward foreign currency exchange contracts--Note 5 125
--------------------------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 3,622,276
Shares of beneficial interest redeemed 466,786
Closed forward foreign currency exchange contracts 300,961
Distribution and service plan fees 96,131
Trustees' fees 64,399
Transfer and shareholder servicing agent fees 16,583
Other 144,653
-----------
Total liabilities 4,711,914
======================================================================================================================
NET ASSETS $164,050,732
============
======================================================================================================================
COMPOSITION OF
NET ASSETS
Paid-in capital $141,204,705
--------------------------------------------------------------------------------------------------------------
Overdistributed net investment income (82,568)
--------------------------------------------------------------------------------------------------------------
Accumulated net realized gain on investments and foreign currency transactions 14,010,713
--------------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation
of assets and liabilities denominated in foreign currencies 8,917,882
------------
Net assets $164,050,732
============
======================================================================================================================
NET ASSET VALUE
PER SHARE
Class A Shares:
Net asset value and redemption price per share (based on net
assets of $120,213,516 and 7,695,121 shares of beneficial interest outstanding) $15.62
Maximum offering price per share (net asset value plus sales
charge of 5.75% of offering price) $16.57
--------------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price and offering price per share (based on
net assets of $8,131,241 and 522,313 shares of beneficial interest outstanding) $15.57
--------------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price and offering price per share (based on
net assets of $35,705,975 and 2,296,829 shares of beneficial interest outstanding) $15.55
</TABLE>
See accompanying Notes to Financial Statements.
11 Oppenheimer Global Growth & Income Fund
<PAGE> 12
STATEMENT OF OPERATIONS For the Year Ended September 30, 1996
<TABLE>
<S> <C>
======================================================================================================================
INVESTMENT INCOME
Interest (net of foreign withholding taxes of $16,179) $ 4,181,335
--------------------------------------------------------------------------------------------------------------
Dividends (net of foreign withholding taxes of $40,875) 1,905,491
-----------
Total income 6,086,826
======================================================================================================================
EXPENSES
Management fees--Note 4 1,202,416
--------------------------------------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 279,012
Class B 36,930
Class C 313,921
--------------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 331,590
--------------------------------------------------------------------------------------------------------------
Shareholder reports 146,065
--------------------------------------------------------------------------------------------------------------
Custodian fees and expenses 132,439
--------------------------------------------------------------------------------------------------------------
Trustees' fees and expenses--Note 1 46,472
--------------------------------------------------------------------------------------------------------------
Legal and auditing fees 25,120
--------------------------------------------------------------------------------------------------------------
Registration and filing fees:
Class A 2,944
Class B 2,685
Class C 1,528
--------------------------------------------------------------------------------------------------------------
Other 26,826
-----------
Total expenses 2,547,948
======================================================================================================================
NET INVESTMENT INCOME 3,538,878
======================================================================================================================
REALIZED AND UNREALIZED
GAIN (LOSS)
Net realized gain (loss) on:
Investments 19,555,753
Foreign currency transactions (1,415,230)
-----------
Net realized gain 18,140,523
--------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments (1,271,146)
Translation of assets and liabilities denominated in foreign currencies (2,016,174)
-----------
Net change (3,287,320)
-----------
Net realized and unrealized gain 14,853,203
======================================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $18,392,081
===========
</TABLE>
See accompanying Notes to Financial Statements.
12 Oppenheimer Global Growth & Income Fund
<PAGE> 13
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30,
1996 1995
======================================================================================================================
<S> <C> <C>
OPERATIONS
Net investment income $ 3,538,878 $ 4,236,981
--------------------------------------------------------------------------------------------------------------
Net realized gain 18,140,523 3,971,942
--------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation (3,287,320) 1,504,804
------------ ------------
Net increase in net assets resulting from operations 18,392,081 9,713,727
======================================================================================================================
DIVIDENDS AND
DISTRIBUTIONS TO
SHAREHOLDERS
Dividends from net investment income:
Class A (3,012,171) (3,285,784)
Class B (89,925) --
Class C (615,071) (496,103)
--------------------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (5,806,943) (6,986,724)
Class B (48,484) --
Class C (1,559,313) (1,095,339)
======================================================================================================================
BENEFICIAL INTEREST
TRANSACTIONS
Net increase (decrease) in net assets resulting from beneficial
interest transactions--Note 2:
Class A 1,387,903 (8,270,645)
Class B 7,852,376 --
Class C 5,914,656 11,031,033
======================================================================================================================
NET ASSETS
Total increase 22,415,109 610,165
--------------------------------------------------------------------------------------------------------------
Beginning of period 141,635,623 141,025,458
------------ ------------
End of period [including undistributed (overdistributed) net
investment income of $(82,568) and $182,347, respectively] $164,050,732 $141,635,623
============ ============
</TABLE>
See accompanying Notes to Financial Statements.
13 Oppenheimer Global Growth & Income Fund
<PAGE> 14
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A
------------------------
YEAR ENDED SEPTEMBER 30,
1996 1995
================================================================================
<S> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $14.98 $15.21
- --------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .47 .45
Net realized and unrealized gain (loss) 1.40 .54
-------- --------
Total income (loss) from investment operations 1.87 .99
- --------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.49) (.40)
Distributions from net realized gain (.74) (.82)
Total dividends and distributions to shareholders (1.23) (1.22)
- --------------------------------------------------------------------------------
Net asset value, end of period $15.62 $14.98
======== ========
================================================================================
TOTAL RETURN, AT NET ASSET VALUE(3) 13.28% 7.43%
================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $120,214 $113,341
- --------------------------------------------------------------------------------
Average net assets (in thousands) $115,186 $120,267
- --------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 2.65% 3.09%
Expenses 1.52% 1.63%
- --------------------------------------------------------------------------------
Portfolio turnover rate(5) 207.8% 135.2%
Average brokerage commission rate(6) $0.0004 --
</TABLE>
1. For the period from December 1, 1993 (inception of offering) to September
30, 1994.
2. For the period from October 10, 1995 (inception of offering) to September
30, 1996.
3. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period (or inception of offering), with all dividends
and distributions reinvested in additional shares on the reinvestment date, and
redemption at the net asset value calculated on the last business day of the
fiscal period. Sales charges are not reflected in the total returns. Total
returns are not annualized for periods of less than one full year.
4. Annualized.
14 Oppenheimer Global Growth & Income Fund
<PAGE> 15
<TABLE>
<CAPTION>
CLASS B CLASS C
- -------------------------- ------------- -----------------------------
PERIOD ENDED
SEPTEMBER 30, YEAR ENDED SEPTEMBER 30,
1994 1993 1992 1996(2) 1996 1995 1994(1)
===========================================================================
<S> <C> <C> <C> <C> <C> <C>
$14.09 $11.91 $12.43 $14.72 $14.92 $15.17 $14.85
- ---------------------------------------------------------------------------
.33 .29 .26 .36 .35 .35 .22
1.62 2.17 (.47) 1.63 1.40 .53 .87
------ ------ ------ ------ ------ ------ ------
1.95 2.46 (.21) 1.99 1.75 .88 1.09
- ---------------------------------------------------------------------------
(.35) (.17) (.28) (.40) (.38) (.31) (.29)
(.48) (.11) (.03) (.74) (.74) (.82) (.48)
------ ------ ------ ------ ------ ------ ------
(.83) (.28) (.31) (1.14) (1.12) (1.13) (.77)
- ---------------------------------------------------------------------------
$15.21 $14.09 $11.91 $15.57 $15.55 $14.92 $15.17
====== ====== ====== ====== ====== ====== ======
===========================================================================
13.96% 21.00% (1.76)% 14.33% 12.45% 6.61% 7.41%
===========================================================================
$124,017 $86,019 $49,735 $8,131 $35,706 $28,295 $17,008
- ---------------------------------------------------------------------------
$117,164 $59,951 $37,116 $3,815 $31,371 $22,211 $7,896
- ---------------------------------------------------------------------------
2.44% 2.68% 2.41% 1.64%(4) 1.87% 2.36% 1.85%(4)
1.49% 1.56% 1.74% 2.28%(4) 2.28% 2.39% 2.44%(4)
- ---------------------------------------------------------------------------
87.4% 90.6% 51.3% 207.8% 207.8% 135.2% 87.4%
-- -- -- $0.0004 $0.0004 -- --
</TABLE>
5. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities
owned during the period. Securities with a maturity or expiration date at the
time of acquisition of one year or less are excluded from the calculation.
Purchases and sales of investment securities (excluding short-term securities)
for the period ended September 30, 1996 were $306,553,668 and $296,763,170,
respectively.
6. Total brokerage commissions paid on applicable purchases and sales of
portfolio securities for the period divided by the total number of related
shares purchased and sold.
See accompanying Notes to Financial Statements.
15 Oppenheimer Global Growth & Income Fund
<PAGE> 16
NOTES TO FINANCIAL STATEMENTS
================================================================================
1. SIGNIFICANT
ACCOUNTING POLICIES
Oppenheimer Global Growth & Income 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 objective
is to seek capital appreciation consistent with preservation of
principal while providing current income. The Fund invests primarily in
common stocks and fixed income securities of U.S. and foreign
companies. The Fund's investment adviser is OppenheimerFunds, Inc. (the
Manager). The Fund offers Class A, Class B and Class C shares. Class A
shares are sold with a front-end sales charge. Class B and Class C
shares may be subject to a contingent deferred sales charge. All three
classes of shares have identical rights to earnings, assets and voting
privileges, except that each class has its own distribution and/or
service plan, expenses directly attributable to a particular class and
exclusive voting rights with respect to matters affecting a single
class. Class B shares will automatically convert to Class A shares six
years after the date of purchase. The following is a summary of
significant accounting policies consistently followed by the Fund.
------------------------------------------------------------------------
INVESTMENT VALUATION. Portfolio securities are valued at the close of
the New York Stock Exchange 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 the last sale price on the prior
trading day. Long-term and short-term "non-money market" debt
securities are valued by a portfolio pricing service approved by the
Board of Trustees. Such securities which cannot be valued by the
approved portfolio pricing service are valued using dealer-supplied
valuations provided the Manager is satisfied that the firm rendering
the quotes is reliable and that the quotes reflect current market
value, or are valued under consistently applied procedures established
by the Board of Trustees to determine fair value in good faith.
Short-term "money market type" 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. Forward foreign currency exchange contracts are valued based
on the closing prices of the forward currency contract rates in the
London foreign exchange markets on a daily basis as provided by a
reliable bank or dealer.
------------------------------------------------------------------------
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 effect of changes in foreign currency
exchange rates on investments is separately identified from the
fluctuations arising from changes in market values of securities held
and reported with all other foreign currency gains and losses in the
Fund's Statement of Operations.
------------------------------------------------------------------------
REPURCHASE AGREEMENTS. The Fund requires the custodian to take
possession, to have legally segregated in the Federal Reserve Book
Entry System or to have segregated within the custodian's vault, all
securities held as collateral for repurchase agreements. The market
value of the underlying securities is required to be at least 102% of
the resale price at the time of purchase. If the seller of the
agreement defaults and the value of the collateral declines, or if the
seller enters an insolvency proceeding, realization of the value of the
collateral by the Fund may be delayed or limited.
------------------------------------------------------------------------
ALLOCATION OF INCOME, EXPENSES, AND GAINS AND LOSSES. Income, expenses
(other than those attributable to a specific class) and gains and
losses are allocated daily to each class of shares based upon the
relative proportion of net assets represented by such class. Operating
expenses directly attributable to a specific class are charged against
the operations of that class.
------------------------------------------------------------------------
FEDERAL TAXES. The Fund intends to continue to comply with provisions
of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of its taxable income, including any
net realized gain on investments not offset by loss carryovers, to
shareholders. Therefore, no federal income or excise tax provision is
required.
------------------------------------------------------------------------
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. During the year ended September 30, 1996, a provision of
$17,727 was made for the Fund's projected benefit obligations and
payments of $1,214 were made to retired trustees, resulting in an
accumulated liability of $45,115 at September 30, 1996.
------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to
shareholders are recorded on the ex-dividend date.
16 Oppenheimer Global Growth & Income Fund
<PAGE> 17
================================================================================
1. SIGNIFICANT
ACCOUNTING POLICIES
(CONTINUED)
CLASSIFICATION OF DISTRIBUTIONS TO SHAREHOLDERS. Net investment income
(loss) and net realized gain (loss) may differ for financial statement
and tax purposes. The character of the distributions made during the
year from net investment income or net realized gains may differ from
their ultimate characterization for federal income tax purposes. Also,
due to timing of dividend distributions, the fiscal year in which
amounts are distributed may differ from the year that the income or
realized gain (loss) was recorded by the Fund.
During the year ended September 30, 1996, the
Fund adjusted the classification of distributions to shareholders to
reflect the differences between the financial statement amounts and
distributions determined in accordance with income tax regulations.
Accordingly, during the year ended September 30, 1996, amounts have
been reclassified to reflect an increase in overdistributed net
investment income and an increase in accumulated net realized gain on
investments of $7,719. In addition, to properly reflect foreign
currency gain in the components of capital, $78,907 of foreign exchange
loss determined according to U.S. federal income tax rules has been
reclassified from net realized gain to net investment income.
------------------------------------------------------------------------
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.
The preparation of financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the
reported amounts of income and expenses during the reporting period.
Actual results could differ from those estimates.
================================================================================
2. SHARES OF
BENEFICIAL INTEREST
The Fund has authorized an unlimited number of no par value shares of
beneficial interest of each class. Transactions in shares of beneficial
interest were as follows:
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30, 1996(1) YEAR ENDED SEPTEMBER 30, 1995
----------------------------------- --------------------------------
SHARES AMOUNT SHARES AMOUNT
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 2,501,931 $ 37,638,075 2,855,688 $ 40,758,281
Dividends and distributions reinvested 587,255 8,491,936 727,590 9,907,173
Redeemed (2,961,528) (44,742,108) (4,170,123) (58,936,099)
---------- ------------ ---------- ------------
Net increase (decrease) 127,658 $ 1,387,903 (586,845) $ (8,270,645)
========== ============ ========== ============
-----------------------------------------------------------------------------------------------------------------------
Class B:
Sold 587,069 $ 8,834,948 -- $ --
Dividends and distributions reinvested 8,689 128,325 -- --
Redeemed (73,445) (1,110,897) -- --
---------- ------------ ---------- ------------
Net increase 522,313 $ 7,852,376 -- $ --
========== ============ ========== ============
-----------------------------------------------------------------------------------------------------------------------
Class C:
Sold 686,840 $ 10,288,855 1,026,146 $ 14,591,637
Dividends and distributions reinvested 144,291 2,072,833 109,993 1,498,250
Redeemed (431,369) (6,447,032) (360,371) (5,058,854)
---------- ------------ ---------- ------------
Net increase 399,762 $ 5,914,656 775,768 $ 11,031,033
========== ============ ========== ============
</TABLE>
1. For the year ended September 30, 1996 for Class A and Class C shares
and for the period from October 10, 1995 (inception of offering) to
September 30, 1996 for Class B shares.
================================================================================
3. UNREALIZED GAINS AND
LOSSES ON INVESTMENTS
At September 30, 1996, net unrealized appreciation on investments of
$8,398,766 was composed of gross appreciation of $11,793,507, and gross
depreciation of $3,394,741.
17 Oppenheimer Global Growth & Income Fund
<PAGE> 18
NOTES TO FINANCIAL STATEMENTS (Continued)
================================================================================
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 a fee of
0.80% of the first $250 million of net assets, 0.77% of the next $250
million, 0.75% of the next $500 million, 0.69% of the next $1 billion
and 0.67% on net assets in excess of $2 billion. 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, 1996,
commissions (sales charges paid by investors) on sales of Class A
shares totaled $507,729, of which $171,752 was retained by
OppenheimerFunds Distributor, Inc. (OFDI), a subsidiary of the Manager,
as general distributor, and by an affiliated broker/dealer. Sales
charges advanced to broker/dealers by OFDI on sales of the Fund's Class
B and Class C shares totaled $245,232 and $83,332 of which $12,591 and
$5,148, respectively, was paid to an affiliated broker/dealer. During
the year ended September 30, 1996, OFDI received contingent deferred
sales charges of $6,391 and $3,710, respectively, upon redemption of
Class B and Class C shares, as reimbursement for sales commissions
advanced by OFDI at the time of sale of such shares.
OppenheimerFunds Services (OFS), a division of
the Manager, is the transfer and shareholder servicing agent for the
Fund, and for other registered investment companies. OFS's total costs
of providing such services are allocated ratably to these companies.
The Fund has adopted a Service Plan for Class A
shares to reimburse OFDI for a portion of its costs incurred in
connection with the personal service and maintenance of accounts that
hold Class A shares. Reimbursement is made quarterly at an annual rate
that may not exceed 0.25% of the average annual net assets of Class A
shares of the Fund. OFDI uses the service fee to reimburse brokers,
dealers, banks and other financial institutions quarterly for providing
personal service and maintenance of accounts of their customers that
hold Class A shares. During the year ended September 30, 1996, OFDI
paid $17,848 to an affiliated broker/dealer as reimbursement for Class
A personal service and maintenance expenses.
The Fund has adopted a compensation type
Distribution and Service Plan for Class B shares to compensate OFDI for
its services and costs in distributing Class B shares and servicing
accounts. Under the Plan, the Fund pays OFDI an annual asset-based
sales charge of 0.75% per year on Class B shares. OFDI also receives a
service fee of 0.25% per year to compensate dealers for providing
personal services for accounts that hold Class B shares. Both fees are
computed on the average annual net assets of Class B shares, determined
as of the close of each regular business day. If the Plan is terminated
by the Fund, the Board of Trustees may allow the Fund to continue
payments of the asset-based sales charge to OFDI for certain expenses
it incurred before the Plan was terminated. OFDI retained $35,141 as
compensation for Class B sales commissions and service fee advances, as
well as financing costs. As of September 30, 1996, OFDI had incurred
unreimbursed expenses of $255,659 for Class B.
The Fund has adopted a reimbursement type
Distribution and Service Plan for Class C shares to reimburse OFDI for
its services and costs in distributing Class C shares and servicing
accounts. Under the Plan, the Fund pays OFDI an annual asset-based
sales charge of 0.75% per year on Class C shares. OFDI also receives a
service fee of 0.25% per year to reimburse dealers for providing
personal services for accounts that hold Class C shares. Both fees are
computed on the average annual net assets of Class C shares, determined
as of the close of each regular business day. If the Plan is terminated
by the Fund, the Board of Trustees may allow the Fund to continue
payments of the asset-based sales charge to OFDI for certain expenses
it incurred before the Plan was terminated. During the year ended
September 30, 1996, OFDI paid $8,710 to an affiliated broker/dealer as
reimbursement for Class C personal service and maintenance expenses and
retained $97,416 as reimbursement for Class C sales commissions and
service fee advances, as well as financing costs. As of September 30,
1996, OFDI had incurred unreimbursed expenses of $339,000 for Class C.
18 Oppenheimer Global Growth & Income Fund
<PAGE> 19
================================================================================
5. FORWARD CONTRACTS
A forward foreign currency exchange contract (forward contract) is a
commitment to purchase or sell a foreign currency at a future date, at
a negotiated rate.
The Fund uses forward contracts to seek to manage
foreign currency risks. They may also be used to tactically shift
portfolio currency risk. The Fund generally enters into forward
contracts as a hedge upon the purchase or sale of a security
denominated in a foreign currency. In addition, the Fund may enter into
such contracts as a hedge against changes in foreign currency exchange
rates on portfolio positions.
Forward contracts are valued based on the closing
prices of the forward currency contract rates in the London foreign
exchange markets on a daily basis as provided by a reliable bank or
dealer. The Fund will realize a gain or loss upon the closing or
settlement of the forward transaction.
Securities held in segregated accounts to cover
net exposure on outstanding forward contracts are noted in the
Statement of Investments where applicable. Unrealized appreciation or
depreciation on forward contracts is reported in the Statement of
Assets and Liabilities. Realized gains and losses are reported with all
other foreign currency gains and losses in the Fund's Statement of
Operations.
Risks include the potential inability of the
counterparty to meet the terms of the contract and unanticipated
movements in the value of a foreign currency relative to the U.S.
dollar.
At September 30, 1996, the Fund had outstanding forward contracts to
purchase and sell foreign currencies as follows:
<TABLE>
<CAPTION>
CONTRACT
EXPIRATION AMOUNT VALUATION AS OF UNREALIZED UNREALIZED
CONTRACTS TO PURCHASE DATE (000s) SEPT. 30, 1996 APPRECIATION DEPRECIATION
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
French Franc (FRF) 10/31/96 183 FRF $ 35,460 $ -- $ 125
=========== -------- ------
CONTRACTS TO SELL
- ----------------------------------------------------------------------------------------------------------------------------------
French Franc (FRF) 10/11/96 40,384 FRF $ 7,827,381 $154,435 $ --
German Deutsche
Mark (DEM) 10/15/96--1/21/97 17,665 DEM 11,651,980 348,020 --
----------- -------- ------
$19,479,361 502,455 --
=========== -------- ------
Total Appreciation and Depreciation $502,455 $ 125
======== ======
</TABLE>
19 Oppenheimer Global Growth & Income Fund
<PAGE> 20
INDEPENDENT AUDITORS' REPORT
================================================================================
The Board of Trustees and Shareholders of Oppenheimer Global Growth &
Income Fund:
We have audited the accompanying statements of investments and assets
and liabilities of Oppenheimer Global Growth & Income Fund as of
September 30, 1996, and the related statement of operations for the
year then ended, the statements of changes in net assets for each of
the years in the two year period then ended and the financial
highlights for each of the years in the five year period then ended.
These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to
express an opinion on these financial statements and financial
highlights based on our audits.
We conducted our audits in accordance with
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. Our
procedures included confirmation of securities owned as of September
30, 1996, 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 Growth & Income
Fund as of September 30, 1996, the results of its operations for the
year then ended, the changes in its net assets for each of the years in
the two year period then ended, and the financial highlights for each
of the years in the five year period then ended, in conformity with
generally accepted accounting principles.
KPMG PEAT MARWICK LLP
Denver, Colorado
October 21, 1996
20 Oppenheimer Global Growth & Income Fund
<PAGE> 21
FEDERAL INCOME TAX INFORMATION (Unaudited)
================================================================================
In early 1997, shareholders will receive information regarding all
dividends and distributions paid to them by the Fund during calendar
year 1996. Regulations of the U.S. Treasury Department require the Fund
to report this information to the Internal Revenue Service.
Distributions of $0.9269, $0.9109 and $0.8969 per
share were paid to Class A, Class B and Class C shareholders,
respectively, on December 19, 1995, of which $0.7439 was designated as
a "capital gain distribution" for federal income tax purposes. Whether
received in stock or cash, the capital gain distribution should be
treated by shareholders as a gain from the sale of capital assets held
for more than one year (long-term capital gains).
None of the dividends paid by the Fund during the
fiscal year ended September 30, 1996 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 adviser for specific guidance.
21 Oppenheimer Global Growth & Income Fund
<PAGE> 22
OPPENHEIMER GLOBAL GROWTH & INCOME FUND
================================================================================
OFFICERS AND TRUSTEES
Leon Levy, Chairman of the Board of Trustees
Donald W. Spiro, Vice Chairman of the Board of Trustees
Bridget A. Macaskill, Trustee and President
Robert G. Galli, Trustee
Benjamin Lipstein, Trustee
Elizabeth B. Moynihan, Trustee
Kenneth A. Randall, Trustee
Edward V. Regan, Trustee
Russell S. Reynolds, Jr., Trustee
Sidney M. Robbins, Trustee
Pauline Trigere, Trustee
Clayton K. Yeutter, Trustee
Frank Jennings, Vice President
George C. Bowen, Treasurer
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Andrew J. Donohue, Secretary
Robert G. Zack, Assistant Secretary
================================================================================
INVESTMENT ADVISER
OppenheimerFunds Inc.
================================================================================
DISTRIBUTOR
OppenheimerFunds Distributor, Inc.
================================================================================
TRANSFER AND SHAREHOLDER
SERVICING AGENT
OppenheimerFunds Services
================================================================================
CUSTODIAN OF
PORTFOLIO SECURITIES
The Bank of New York
================================================================================
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 Growth
& Income Fund. This report must be preceded or accompanied by a
Prospectus of Oppenheimer Global Growth & Income Fund. For material
information concerning the Fund, see the Prospectus.
Shares of Oppenheimer funds are not deposits or obligations of any
bank, are not guaranteed by any bank, and are not insured by the FDIC
or any other agency, and involve investment risks, including possible
loss of the principal amount invested.
22 Oppenheimer Global Growth & Income Fund
<PAGE> 23
OPPENHEIMERFUNDS FAMILY
================================================================================
OppenheimerFunds offers over 50 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 35 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 3 million
shareholder accounts and more than $55 billion under OppenheimerFunds'
management and that of our affiliates.
At OppenheimerFunds we don't charge a fee to exchange shares.
And you can exchange shares easily by mail or by telephone.(1) For more
information on Oppenheimer funds, please contact your financial adviser
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.
================================================================================
STOCK FUNDS
Global Emerging Growth Fund Growth Fund
Enterprise Fund(2) Global Fund
International Growth Fund Quest Global Value Fund
Discovery Fund Disciplined Value Fund
Quest Small Cap Value Fund Oppenheimer Fund
Gold & Special Minerals Fund Value Stock Fund
Target Fund Quest Value Fund
================================================================================
STOCK & BOND FUNDS
Main Street Income & Growth Fund Equity Income Fund
Quest Opportunity Value Fund Disciplined Allocation Fund
Total Return Fund Asset Allocation Fund
Quest Growth & Income Value Fund Strategic Income & Growth Fund
Global Growth & Income Fund Bond Fund for Growth
================================================================================
BOND FUNDS
International Bond Fund Bond Fund
High Yield Fund U.S. Government Trust
Champion Income Fund Limited-Term Government Fund
Strategic Income Fund
================================================================================
MUNICIPAL FUNDS
California Municipal Fund(3) Insured Municipal Fund
Florida Municipal Fund(3) Intermediate Municipal Fund
New Jersey Municipal Fund(3)
New York Municipal Fund(3) Rochester Division
Pennsylvania Municipal Fund(3) Rochester Fund Municipals
Municipal Bond Fund Limited-Term New York Municipal Fund
================================================================================
MONEY MARKET FUNDS(4)
Money Market Fund Cash Reserves
================================================================================
LIFESPAN
Growth Fund Income Fund
Balanced Fund
1. Exchange privileges are subject to change or termination. Shares may
be exchanged only for shares of the same class of eligible funds.
2.Effective 4/1/96, the Fund is closed to new investors.
3. Available only to investors in certain states.
4. An investment in money market funds is neither insured nor
guaranteed by the U.S. government and there can be no assurance that a
money market fund will be able to maintain a stable net asset value of
$1.00 per share. Oppenheimer funds are distributed by OppenheimerFunds
Distributor, Inc., Two World Trade Center, New York, NY 10048-0203.
(C) Copyright 1996 OppenheimerFunds, Inc. All rights reserved.
23 Oppenheimer Global Growth & Income Fund
<PAGE> 24
INFORMATION
GENERAL INFORMATION
Monday-Friday 8:30 a.m.-9 p.m. ET
Saturday 10 a.m.-2 p.m. ET
1-800-525-7048
TELEPHONE TRANSACTIONS
Monday-Friday 8:30 a.m.-8 p.m. ET
1-800-852-8457
PHONELINK
24 hours a day, automated
information and transactions
1-800-533-3310
TELECOMMUNICATIONS DEVICE
FOR THE Deaf (TDD)
Monday-Friday 8:30 a.m.-8 p.m. ET
1-800-843-4461
OPPENHEIMERFUNDS
INFORMATION HOTLINE
24 hours a day, timely and insightful
messages on the economy and
issues that affect your investments
1-800-835-3104
RA0215.001.0996 November 30, 1996
[PHOTO]
Customer Service Representative
OppenheimerFunds Services
"How may I help you?"
As an Oppenheimer fund shareholder, you have some special privileges. Whether
it's automatic investment plans, informative newsletters and hotlines, or ready
account access, you can benefit from services designed to make investing
simple.
And when you need help, our Customer Service Representatives are only a
toll-free phone call away. They can provide information about your account and
handle administrative requests. You can reach them at our General Information
number.
When you want to make a transaction, you can do it easily by calling
our toll-free Telephone Transactions number. And, by enrolling in AccountLink,
a convenient service that "links" your Oppenheimer funds accounts and your bank
checking or savings account, you can use the Telephone Transactions number to
make investments.
For added convenience, you can get automated information with
OppenheimerFunds PhoneLink service, available 24 hours a day, 7 days a week.
PhoneLink gives you access to a variety of fund, account, and market
information. Of course, you can always speak with a Customer Service
Representative during the General Information hours shown at the left.
You can count on us whenever you need assistance. That's why the
International Customer Service Association, an independent, nonprofit
organization made up of over 3,200 customer service management professionals
from around the country, honored the Oppenheimer funds' transfer agent,
OppenheimerFunds Services, with their Award of Excellence in 1993.
So call us today--we're here to help.
[OPPENHEIMERFUNDS LOGO]
OppenheimerFunds Distributor, Inc.
P.O. Box 5270
Denver, CO 80217-5270
- ----------------
Bulk Rate
U.S. Postage
PAID
Permit No. 130
Torrington, CT
- ----------------
