Oppenheimer Global Growth & Income Fund
Semiannual Report March 31, 1996
(Picture of Patio Barbecue) "We need our
money to grow
because we have
long-term
goals. But we
know stocks can
have ups
and downs."
(Oppenheimer Logo)
<PAGE>
This Fund is for people who want to take advantage
of opportunities worldwide but need to reduce
the effect of short-term market fluctuations.
News
Beat the Averages
Cumulative Total Return for the
3-Year Period Ended 3/31/96:
Oppenheimer Global Growth
& Income Fund
Class A (at NAV)1
50.54%
Lipper Global Flexible Portfolio
Funds Average3
31.63%
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. Additionally, the Fund invests part of its portfolio in bonds
and dividend producing stocks, using current income to seek to moderate the
effects of market volatility.
Performance
Total returns at net asset value for the 6 months ended 3/31/96 for Class A,
B and C shares were 6.80%, 8.25% and 6.44%, respectively.1
Your Fund's average annual total returns at maximum offering price
for Class A shares for the 1-year period ended 3/31/96 and since inception of
the Class on 10/22/90 were 12.47% and 9.48%, respectively. For Class B
shares, cumulative total return since inception on 10/10/95 was 4.25%. For
Class C shares, average annual total returns for the 1-year period ended
3/31/96 and since inception of the Class on 12/1/93 were 17.49% and 8.85%,
respectively.2
Outlook
"Our outlook is very positive. Although foreign stock markets lagged the U.S.
market during 1995, we believe lower interest rates, along with a stronger
dollar should fuel a rebound in many of the developed markets. Also, lower
interest rates and strong capital inflows should drive prices higher in many
emerging markets. These factors, together with our theme-based approach to
finding outstanding companies around the world, positions us to participate in
any environment."
Frank Jennings, Portfolio Manager
March 31, 1996
Total returns include change in share price and reinvestment of dividends and
capital gains distributions. 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 3/31/95 and
10/22/90 (inception of class), after deducting the current maximum initial
sales charge of 5.75%. Class B return shows results of a hypothetical
investment on 10/10/95 (inception) after the deduction of the applicable
contingent deferred sales charge of 5%. Class C return shows results of
hypothetical investments on 3/31/95 and 12/1/93 (inception of class), with
the 1% contingent deferred sales charge deducted for the 1-year result. An
explanation of the different total returns is in the Fund's prospectus.
3. Source: Lipper Analytical Services, 3/31/96, an independent mutual fund
monitoring service. The Lipper total return average for the 3-year period was
for 18 global flexible portfolio funds. 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>
(PHOTO OF BRIDGET A. MACASKILL)
Bridget A. Macaskill
President
Oppenheimer
Global Growth &
Income Fund
Dear Shareholder,
After a two-year lull, foreign stock markets are beginning to make a comeback in
1996. This, coupled with the strong, albeit choppy performance of the U.S. stock
market in the first quarter continues to make a compelling case for global
funds, which typically invest in both domestic and foreign securities.
Change, however, is in the air. It is unlikely that last year's phenomenal
gains and low volatility in the U.S. stock market will be repeated this year. A
projected slowdown in corporate earnings growth and unlikely continued help from
lower interest rates will most likely return the market to more historical
levels of performance and volatility.
With many domestic stocks now believed to be fully valued, and more
expensive than their overseas counterparts, we feel a number of foreign markets
have excellent growth potential and are poised to outperform the U.S. market
this year. As a result, the time has come for investors to refocus their sights
on opportunities that lie beyond our borders.
For example, lower interest rates in Japan and much of Europe, as well as a
stronger dollar, signal an added boost for non-U.S. stocks. A stronger dollar
allows foreign exporters to more competitively price their goods and services
for American consumers.
In addition, European companies have begun to embrace corporate
restructuring, undergoing the same cost cutting and consolidation that helped
make many American companies more competitive in the global marketplace. And
after a five-year recession, the Japanese economy is expected to grow at a rate
of more than 2% in 1996, due to relatively low interest rates.
Our outlook for the world's emerging markets continues to remain positive.
In Southeast Asia, extraordinary levels of domestic savings and equity
investment over the past 15 years have created enormous individual wealth. A
shift in focus, from savings to consumption, is beginning to occur, which should
benefit certain U.S. consumer products companies as well as companies involved
in infrastructure development. Latin America appears poised for a rebound from
the Mexican peso crisis with strong cash inflows stimulating corporate
profitability in countries like Argentina and Brazil.
Because investing abroad involves greater risks and expenses, including
political and economic uncertainties, currency rate fluctuations and liquidity
restrictions, it should only be undertaken with a long time horizon in mind.
That said, we believe foreign stock markets will continue to offer excellent
growth opportunities at attractive valuations. And we're confident that by being
able to diversify investments throughout the world, we will be positioned to
participate in any economic environment.
Your portfolio manager discusses the outlook for your Fund in light of
these broad issues on the following pages. Thank you for your confidence in
OppenheimerFunds, and we look forward to helping you reach your investment goals
in the future.
/s/ Bridget A. Macaskill
Bridget A. Macaskill
April 19, 1996
3 Oppenheimer Global Growth & Income Fund
<PAGE>
Q + A
(PHOTO OF FRANK JENNINGS) (PHOTO OF Bill Wilby)
(PHOTO OF ROBERT DOLL)
Q What
is your
outlook
for the Fund?
An interview with your Fund's managers.
How has the Fund performed over the past six months?
The Fund's performance was very strong over the period. We were able to
capitalize on the surge in U.S. stocks as well as take advantage of the
excellent opportunities offered by selected foreign securities which we believe
had fallen to very attractive levels. We believe over the past year the pause in
economic growth overseas was temporary, and for this reason, we are currently
positioning the Fund to fully participate in economic growth worldwide.
What investments made positive contributions to performance?
The primary contributor to the Fund's good performance was our overweighting in
equities, which was roughly 75% of the Fund's portfolio. An equally important
factor in the Fund's performance is our use of a theme-oriented approach when
searching for companies with strong potential for growth. Over the period, the
bulk of our investments were in key businesses currently driving the global
economy and fall under the efficiency-enhancing technology and healthcare
themes.1
Did any investments not perform as you'd expected?
Not really. Although the performance of our fixed-income holdings have lagged
the performance of our equity holdings, as the dollar strengthens, our
dollar-denominated emerging market bonds should become more valuable.
Additionally, they currently offer large yield premiums over other bonds and
little currency risk. Looking ahead, however, global growth tends to suggest an
increase in inflation. While we haven't seen signs of inflation yet, we're
maintaining an offensive position, which is the reason for our current emphasis
1. The Fund's portfolio is subject to change.
4 Oppenheimer Global Growth & Income Fund
<PAGE>
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 Lower
interest rates
and a stronger
dollar should
help fuel a
rebound.
on stocks versus bonds in the portfolio.
What areas are you currently targeting?
We are currently targeting emerging consumer markets. Specifically, we've been
buying stocks of fertilizer manufacturers, seed companies, farm equipment makers
and food processors. Investments in these companies hold tremendous long-term
potential as developing markets' demand for these products increase. Currently,
they are among the lowest-priced stocks in the U.S. market, making the potential
for long-term appreciation even greater.
Another theme we're targeting is healthcare, particularly the stocks of
biotechnology and medical companies that offer new and innovative drugs, devices
or procedures. Also, as the population continues to grow and age, the demand for
healthcare services should increase.
Finally, we're anticipating excellent growth potential from investments
that fall under our specialized telecommunications theme. Currently, we are
focusing on companies in the cellular, cable, satellite and Internet-related
businesses.
What is the outlook for the Fund?
Our outlook is very positive. Although foreign stock markets lagged the U.S.
market during 1995, we believe lower interest rates, along with a stronger
dollar should fuel a rebound in many of the developed markets. Also, lower
interest rates and strong capital inflows should drive
(PHOTO OF GEORGE EVANS)
prices higher in many emerging markets. These factors, together with our
theme-based approach to finding outstanding companies around the world,
positions us to participate in any environment. (Solid Box)
(PHOTO OF SHANQUAN LI)
5 Oppenheimer Global Growth & Income Fund
<PAGE>
Statement of Investments March 31, 1996 (Unaudited)
<TABLE>
<CAPTION>
Face Market Value
Amount(1) See Note 1
<S> <C> <C> <C>
==================================================================================================================================
Foreign Government Obligations--10.4%
- ----------------------------------------------------------------------------------------------------------------------------------
Argentina (Republic of) Past Due Interest Bonds,
Series L, 6.312%, 3/31/05(2) $ 1,485,000 $ 1,071,056
---------------------------------------------------------------------------------------------------------
Denmark (Kingdom of) Bonds, 7%, 11/10/24 DKK 12,000,000 1,805,709
---------------------------------------------------------------------------------------------------------
Eskom Depositary Receipts, Series E169, 15%, 10/1/98 ZAR 10,000,000 2,554,892
---------------------------------------------------------------------------------------------------------
France (Government of) Debs., 6%, 10/25/25 FRF 20,000,000 3,300,069
---------------------------------------------------------------------------------------------------------
Spain (Kingdom of) Gtd. Bonds, Bonos y Obligacion del Estado,
10.30%, 6/15/02 ESP 150,000,000 1,253,839
---------------------------------------------------------------------------------------------------------
United Kingdom Treasury Nts., 3.50%, 12/29/49 GBP 5,000,000 3,181,800
---------------------------------------------------------------------------------------------------------
Venezuela (Republic of) Front-Loaded Interest Reduction Bonds,
Series B, 6.625%, 3/31/07(2) 4,000,000 2,435,000
------------
Total Foreign Government Obligations (Cost $15,727,024) 15,602,365
==================================================================================================================================
Non-Convertible Corporate Bonds and Notes--6.6%
- ----------------------------------------------------------------------------------------------------------------------------------
AMC Entertainment, Inc., 12.625% Sr. Sub. Gtd. Nts., 8/1/02 500,000 572,500
---------------------------------------------------------------------------------------------------------
Carbide/Graphite Group, Inc. (The), 11.50% Sr. Nts., 9/1/03 316,000 341,280
---------------------------------------------------------------------------------------------------------
Chiquita Brands International, Inc., 9.625% Sr. Nts., 1/15/04 500,000 498,750
---------------------------------------------------------------------------------------------------------
Fieldcrest Cannon, Inc., 11.25% Sr. Sub. Debs., 6/15/04 1,500,000 1,477,500
---------------------------------------------------------------------------------------------------------
Fleming Cos., Inc., 10.625% Sr. Gtd. Nts., 12/15/01 1,000,000 890,000
---------------------------------------------------------------------------------------------------------
Foodmaker, Inc., 9.25% Sr. Nts., 3/1/99 1,000,000 980,000
---------------------------------------------------------------------------------------------------------
Magellan Health Services, Inc., 11.25% Sr. Sub. Nts., Series A, 4/15/04 500,000 557,500
---------------------------------------------------------------------------------------------------------
OPI International, Inc., 12.875% Sr. Gtd. Nts., 7/15/02 500,000 557,500
---------------------------------------------------------------------------------------------------------
Oryx Energy Co., 10% Debs., 4/1/01 1,000,000 1,093,220
---------------------------------------------------------------------------------------------------------
Rabobank Nederland, 10.375% Debs., 6/21/00 ITL 1,500,000,000 974,662
---------------------------------------------------------------------------------------------------------
Sequa Corp., 9.375% Sr. Sub. Nts., 12/15/03 1,000,000 988,750
---------------------------------------------------------------------------------------------------------
Tultex Corp., 10.625% Sr. Gtd. Nts., 3/15/05 1,000,000 1,020,000
-----------
Total Non-Convertible Corporate Bonds and Notes (Cost $9,974,808) 9,951,662
==================================================================================================================================
Convertible Corporate Bonds and Notes--1.1%
- ----------------------------------------------------------------------------------------------------------------------------------
Lonrho Finance PLC, 6% Cv. Gtd. Bonds, 2/27/04 (Cost $1,500,097) GBP 1,000,000 1,702,048
Shares
==================================================================================================================================
Common Stocks--75.0%
- ----------------------------------------------------------------------------------------------------------------------------------
Basic Materials--8.5%
- ----------------------------------------------------------------------------------------------------------------------------------
Chemicals--3.6% Freeport-McMoRan Resource Partners, LP 150,000 3,187,500
---------------------------------------------------------------------------------------------------------
Norsk Hydro AS, Sponsored ADR 20,000 875,000
---------------------------------------------------------------------------------------------------------
Rhone-Poulenc SA, Sponsored ADR 50,000 1,300,000
-----------
5,362,500
- ----------------------------------------------------------------------------------------------------------------------------------
Gold--3.3% Anglo American Corp. of South Africa Ltd., ADR(3) 10,000 643,750
---------------------------------------------------------------------------------------------------------
Homestake Mining Co. 100,000 1,937,500
---------------------------------------------------------------------------------------------------------
Newmont Mining Corp. 21,000 1,189,125
---------------------------------------------------------------------------------------------------------
Placer Dome, Inc. 40,000 1,155,000
-----------
4,925,375
</TABLE>
6 Oppenheimer Global Growth & Income Fund
<PAGE>
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------------
Metals--0.9% Gencor Ltd., Unsponsored ADR 100,000 $ 394,640
---------------------------------------------------------------------------------------------------------
Minorco SA, Sponsored ADR 35,000 953,750
-----------
1,348,390
- ----------------------------------------------------------------------------------------------------------------------------------
Paper--0.7% Stone Container Corp. 70,000 980,000
- ----------------------------------------------------------------------------------------------------------------------------------
Consumer Cyclicals--11.8%
- ----------------------------------------------------------------------------------------------------------------------------------
Autos & Housing--8.3% IRSA Inversiones y Representaciones, SA 406,002 1,141,240
---------------------------------------------------------------------------------------------------------
Orbital Engine Corp. Ltd.(3) 400,000 250,310
---------------------------------------------------------------------------------------------------------
Porsche AG, Preference(3) 4,000 2,262,284
---------------------------------------------------------------------------------------------------------
Societe Fonciere Lyonnaise 4,000 475,865
---------------------------------------------------------------------------------------------------------
Sumitomo Forestry Co. Ltd. 100,000 1,535,580
---------------------------------------------------------------------------------------------------------
Suzuki Motor Corp. 100,000 1,235,954
---------------------------------------------------------------------------------------------------------
Vallehermoso SA 60,000 1,077,989
---------------------------------------------------------------------------------------------------------
Volkswagen AG 13,000 4,543,533
-----------
12,522,755
- ----------------------------------------------------------------------------------------------------------------------------------
Leisure & Host Marriot Corp. 30,000 405,000
Entertainment--1.5% ---------------------------------------------------------------------------------------------------------
PT Jakarta International Hotel & Development 400,000 436,364
---------------------------------------------------------------------------------------------------------
Wetherspoon (J.D.)(4) 45,000 604,688
---------------------------------------------------------------------------------------------------------
Wetherspoon (J.D.) PLC 60,000 805,992
-----------
2,252,044
- ----------------------------------------------------------------------------------------------------------------------------------
Media--1.3% Houghton Mifflin Co. 45,000 1,985,625
- ----------------------------------------------------------------------------------------------------------------------------------
Retail: General--0.7% Galeries Lafayette 3,330 1,113,737
- ----------------------------------------------------------------------------------------------------------------------------------
Consumer Non-Cyclicals--16.9%
- ----------------------------------------------------------------------------------------------------------------------------------
Beverages--4.5% Allied Domecq PLC 110,000 822,784
---------------------------------------------------------------------------------------------------------
Buenos Aires Embotelladora SA, Sponsored ADR 30,000 498,750
---------------------------------------------------------------------------------------------------------
Cadbury Schweppes PLC 10,000 76,325
---------------------------------------------------------------------------------------------------------
Canandaigua Wine Co., Inc., Cl. A(3) 40,000 1,550,000
---------------------------------------------------------------------------------------------------------
Remy Cointreau 80,000 2,319,740
---------------------------------------------------------------------------------------------------------
Sermsuk Public Co. Ltd. 50,000 1,490,289
------------
6,757,888
- ----------------------------------------------------------------------------------------------------------------------------------
Food--2.9% Nippon Meat Packers, Inc. 180,000 2,662,920
---------------------------------------------------------------------------------------------------------
Perdigao SA, Comercio e Industria, Preference 500,000,000 987,158
---------------------------------------------------------------------------------------------------------
PT Mayora Indah 1,000,000 737,968
------------
4,388,046
- ----------------------------------------------------------------------------------------------------------------------------------
Healthcare/Drugs--6.0% Carter-Wallace, Inc. 70,000 1,146,250
---------------------------------------------------------------------------------------------------------
Ciba-Geigy AG 4,800 6,003,851
---------------------------------------------------------------------------------------------------------
Plant Genetics Systems(3)(5) 50,072 578,428
---------------------------------------------------------------------------------------------------------
PT Kalbe Farma 200,000 609,626
---------------------------------------------------------------------------------------------------------
Sanofi SA 10,079 732,647
------------
9,070,802
</TABLE>
7 Oppenheimer Global Growth & Income Fund
<PAGE>
Statement of Investments (Unaudited) (Continued)
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------------
Healthcare/Supplies & Rhoen Klinikum AG, Non-vtg. Preference 9,600 $ 1,004,617
Services--0.7%
- ----------------------------------------------------------------------------------------------------------------------------------
Household Goods--0.9% Grupo Casa Autrey, SA 72,200 1,335,700
- ----------------------------------------------------------------------------------------------------------------------------------
Tobacco--1.9% B.A.T. Industries PLC 200,000 1,476,126
----------------------------------------------------------------------------------------------------
Tabacalera SA, Cl. A 30,000 1,401,869
------------
2,877,995
- ----------------------------------------------------------------------------------------------------------------------------------
Energy--3.1%
- ----------------------------------------------------------------------------------------------------------------------------------
Energy Services & Far East Levingston Shipbuilding Ltd. 100,000 557,713
Producers--3.1% ----------------------------------------------------------------------------------------------------
Global Marine, Inc. 300,000 3,000,000
----------------------------------------------------------------------------------------------------
Transocean AS(3) 50,000 1,091,527
----------------------------------------------------------------------------------------------------
4,649,240
- ----------------------------------------------------------------------------------------------------------------------------------
Financial--7.1%
- ----------------------------------------------------------------------------------------------------------------------------------
Banks--2.5% Banco Bradesco SA, Preference 56,345,382 590,447
----------------------------------------------------------------------------------------------------
Banco Latinoamericano de Exportaciones SA, Cl. E 10,000 493,750
----------------------------------------------------------------------------------------------------
BankAmerica Corp. 20,000 1,550,000
----------------------------------------------------------------------------------------------------
Skandinaviska Enskilda Banken Group 160,000 1,184,969
------------
3,819,166
- ----------------------------------------------------------------------------------------------------------------------------------
Diversified Banco Bilbao Vizcaya 25,000 932,565
Financial--3.3% ----------------------------------------------------------------------------------------------------
Hopewell Holdings Ltd. 4,500,000 2,618,631
----------------------------------------------------------------------------------------------------
Renong Berhad 300,000 488,822
----------------------------------------------------------------------------------------------------
Taubman Centers, Inc. 100,000 987,500
------------
5,027,518
- ----------------------------------------------------------------------------------------------------------------------------------
Insurance--1.3% ITT Hartford Group, Inc. 20,000 980,000
----------------------------------------------------------------------------------------------------
Marschollek, Lautenschlaeger und Partner AG 1,000 907,623
------------
1,887,623
- ----------------------------------------------------------------------------------------------------------------------------------
Industrial--11.7%
- ----------------------------------------------------------------------------------------------------------------------------------
Electrical Equipment--0.9% Weg SA, Preference 2,846,000 1,296,670
- ----------------------------------------------------------------------------------------------------------------------------------
Industrial Services--1.7% IHC Caland NV 23,000 938,072
------------
SGS Societe Generale de Surveillance Holding SA, Series B 800 1,669,976
------------
2,608,048
- ----------------------------------------------------------------------------------------------------------------------------------
Manufacturing--7.1% Bic Corp. 20,000 2,204,547
----------------------------------------------------------------------------------------------------
Chargeurs 14,000 3,584,078
----------------------------------------------------------------------------------------------------
Forja Taurus SA, Preference(3) 998,000,000 232,402
----------------------------------------------------------------------------------------------------
Mitsubishi Heavy Industries Ltd. 400,000 3,460,672
----------------------------------------------------------------------------------------------------
Singapore Technologies Industrial Corp. 500,000 1,165,158
------------
10,646,857
</TABLE>
8 Oppenheimer Global Growth & Income Fund
<PAGE>
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
<S> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------------
Transportation--2.0% Airborne Freight Corp. 35,000 $ 883,750
---------------------------------------------------------------------------------------------------------
Sea Containers Ltd., Cl. A 120,000 2,070,000
------------
2,953,750
- ----------------------------------------------------------------------------------------------------------------------------------
Technology--14.4%
- ----------------------------------------------------------------------------------------------------------------------------------
Aerospace/Defense--1.4% Raytheon Co. 20,000 1,025,000
---------------------------------------------------------------------------------------------------------
United Technologies Corp. 10,000 1,122,500
------------
2,147,500
- ----------------------------------------------------------------------------------------------------------------------------------
Computer Software--6.3% Ines Corp.(3) 140,000 2,280,897
---------------------------------------------------------------------------------------------------------
Nintendo Co. Ltd. 90,000 5,764,041
---------------------------------------------------------------------------------------------------------
Platinum Technology, Inc.(3) 100,000 1,512,500
------------
9,557,438
- ----------------------------------------------------------------------------------------------------------------------------------
Electronics--5.3% Coherent, Inc.(3) 50,000 2,125,000
---------------------------------------------------------------------------------------------------------
Harris Corp. 20,000 1,237,500
---------------------------------------------------------------------------------------------------------
National Semiconductor Corp.(3) 260,000 3,607,500
---------------------------------------------------------------------------------------------------------
Texas Instruments, Inc. 20,000 1,017,500
------------
7,987,500
- ----------------------------------------------------------------------------------------------------------------------------------
Telecommunications- MCI Communications Corp. 40,000 1,210,000
Technology--1.4% ---------------------------------------------------------------------------------------------------------
Millicom, Inc. 15,500 0
---------------------------------------------------------------------------------------------------------
Sprint Corp. 25,000 950,000
------------
2,160,000
- ----------------------------------------------------------------------------------------------------------------------------------
Utilities--1.5%
- ----------------------------------------------------------------------------------------------------------------------------------
Gas Utilities--0.5% NorAm Energy Corp. 80,000 740,000
- ----------------------------------------------------------------------------------------------------------------------------------
Telephone DDI Corp. 200 1,526,216
Utilities--1.0% ------------
Total Common Stocks (Cost $107,935,716) 112,933,000
- ----------------------------------------------------------------------------------------------------------------------------------
Preferred Stocks and Battle Mountain Gold Co., $3.25 Cum. Cv 20,000 1,062,500
Other Securities--2.8% ---------------------------------------------------------------------------------------------------------
U.S. Surgical Corp., $2.20 Depositary Shares representing
one-fiftieth share of Series A Preferred Stock 95,000 3,099,375
------------
Total Preferred Stocks and Other Securities (Cost $3,900,604) 4,161,875
Units
==================================================================================================================================
Rights, Warrants and Certificates--0.0%
- ----------------------------------------------------------------------------------------------------------------------------------
American Satellite Network, Inc. Wts., Exp. 6/99 3,875 --
---------------------------------------------------------------------------------------------------------
Renong Berhad Rts. for Irredeemable Cv. Unsec. Loan Stocks, Exp. 4/96 100,000 --
---------------------------------------------------------------------------------------------------------
Renong Berhad Rts. for Wts., Exp. 4/96 62,500 --
-----------
Total Rights, Warrants and Certificates (Cost $0) --
</TABLE>
9 Oppenheimer Global Growth & Income Fund
<PAGE>
Statement of Investments (Unaudited) (Continued)
<TABLE>
<CAPTION>
Face Market Value
Amount(1) See Note 1
<S> <C> <C> <C>
==================================================================================================================================
Repurchase Agreement--5.7%
- ----------------------------------------------------------------------------------------------------------------------------------
Repurchase agreement with First Chicago Capital Markets, 5.375%, dated
3/29/96, to be repurchased at $8,653,874 on 4/1/96, collateralized by
U.S. Treasury Nts., 5.75%--8%, 9/30/96--9/30/97, with a value
of $7,240,796, and U.S. Treasury Bills maturing 10/17/96--11/14/96,
with a value of $1,589,372 (Cost $8,650,000) $ 8,650,000 $ 8,650,000
- ----------------------------------------------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $147,688,249) 101.6% 153,000,950
- ----------------------------------------------------------------------------------------------------------------------------------
Liabilities in Excess of Other Assets (1.6) (2,414,202)
------------ ------------
Net Assets 100.0% $150,586,748
============ ============
Distribution of investments by country of issue, as a percentage of total
investments at value, is as follows:
Market
Country Value Percent
---------------------------------------------------------------------------------------------------------
United States $ 58,188,624 38.0%
---------------------------------------------------------------------------------------------------------
Japan 18,466,281 12.1
---------------------------------------------------------------------------------------------------------
France 15,030,683 9.8
---------------------------------------------------------------------------------------------------------
Germany 8,718,057 5.7
---------------------------------------------------------------------------------------------------------
Great Britain 8,669,764 5.7
---------------------------------------------------------------------------------------------------------
Switzerland 7,673,827 5.0
---------------------------------------------------------------------------------------------------------
Spain 4,666,262 3.0
---------------------------------------------------------------------------------------------------------
South Africa 4,547,032 3.0
---------------------------------------------------------------------------------------------------------
Brazil 3,106,677 2.0
---------------------------------------------------------------------------------------------------------
Argentina 2,711,046 1.8
---------------------------------------------------------------------------------------------------------
Hong Kong 2,618,631 1.7
---------------------------------------------------------------------------------------------------------
Netherlands 2,491,162 1.6
---------------------------------------------------------------------------------------------------------
Venezuela 2,435,000 1.6
---------------------------------------------------------------------------------------------------------
Norway 1,966,527 1.3
---------------------------------------------------------------------------------------------------------
Denmark 1,805,709 1.2
---------------------------------------------------------------------------------------------------------
Indonesia 1,783,957 1.2
---------------------------------------------------------------------------------------------------------
Singapore 1,722,871 1.1
---------------------------------------------------------------------------------------------------------
Thailand 1,490,289 1.0
---------------------------------------------------------------------------------------------------------
Mexico 1,335,700 0.9
---------------------------------------------------------------------------------------------------------
Sweden 1,184,969 0.8
---------------------------------------------------------------------------------------------------------
Canada 1,155,000 0.7
---------------------------------------------------------------------------------------------------------
Panama 493,750 0.3
---------------------------------------------------------------------------------------------------------
Malaysia 488,822 0.3
---------------------------------------------------------------------------------------------------------
Australia 250,310 0.2
------------ -----
Total $153,000,950 100.0%
============ =====
</TABLE>
1. Face amount is reported in U.S. Dollars, except for those denoted in the
following currencies:
DKK--Danish Krone GBP--British Pound Sterling
ESP -- Spanish Peseta ITL -- Italian Lira
FRF -- French Franc ZAR -- Zaire Makuta
2. Represents the current interest rate for a variable rate security.
3. Non-income producing security.
4. 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. These securities amount to $604,688 or 0.40% of the Fund's net
assets, at March 31, 1996.
5. Identifies issues considered to be illiquid--See Note 6 of Notes to
Financial Statements.
See accompanying Notes to Financial Statements.
10 Oppenheimer Global Growth & Income Fund
<PAGE>
Statement of Assets and Liabilities March 31, 1996 (Unaudited)
<TABLE>
<S> <C> <C>
==================================================================================================================================
Assets Investments, at value (cost $147,688,249)--see accompanying statement $153,000,950
---------------------------------------------------------------------------------------------------------
Cash 23,902
---------------------------------------------------------------------------------------------------------
Unrealized appreciation on forward foreign currency exchange contracts--Note 5 708
---------------------------------------------------------------------------------------------------------
Receivables:
Investments sold 7,091,015
Interest and dividends 1,291,418
Closed forward foreign currency exchange contracts 951,709
Shares of beneficial interest sold 282,166
---------------------------------------------------------------------------------------------------------
Other 8,921
------------
Total assets 162,650,789
==================================================================================================================================
Liabilities Unrealized depreciation on forward foreign currency exchange contracts--Note 5 20,601
---------------------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 11,189,179
Shares of beneficial interest redeemed 287,460
Closed forward foreign currency exchange contracts 251,812
Distribution and service plan fees 88,297
Shareholder reports 77,164
Trustees' fees 48,005
Transfer and shareholder servicing agent fees 42,708
Other 58,815
------------
Total liabilities 12,064,041
==================================================================================================================================
Net Assets $150,586,748
============
==================================================================================================================================
Composition of Paid-in capital $134,953,462
Net Assets ---------------------------------------------------------------------------------------------------------
Undistributed net investment income 354,124
---------------------------------------------------------------------------------------------------------
Accumulated net realized gain on investments and foreign currency transactions 9,982,200
---------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation
of assets and liabilities denominated in foreign currencies 5,296,962
------------
Net assets $150,586,748
============
==================================================================================================================================
Net Asset Value Class A Shares:
Per Share Net asset value and redemption price per share (based on net
assets of $115,460,993 and 7,736,420 shares of beneficial interest outstanding) $14.92
Maximum offering price per share (net asset value plus sales
charge of 5.75% of offering price) $15.83
---------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price and offering price per share (based on net
assets of $3,663,307 and 246,105 shares of beneficial interest outstanding) $14.89
---------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price and offering price per share (based on
net assets of $31,462,448 and 2,117,920 shares of beneficial interest outstanding) $14.86
</TABLE>
See accompanying Notes to Financial Statements.
11 Oppenheimer Global Growth & Income Fund
<PAGE>
<TABLE>
<CAPTION>
Statement of Operations For the Six Months Ended March 31, 1996 (Unaudited)
<S> <C> <C>
==================================================================================================================================
Investment Income Interest (net of foreign withholding taxes of $9,364) $ 2,431,298
---------------------------------------------------------------------------------------------------------
Dividends (net of foreign withholding taxes of $17,047) 798,172
------------
Total income 3,229,470
==================================================================================================================================
Expenses Management fees--Note 4 574,691
---------------------------------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 135,589
Class B 6,971
Class C 147,036
---------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 202,986
---------------------------------------------------------------------------------------------------------
Shareholder reports 88,495
---------------------------------------------------------------------------------------------------------
Custodian fees and expenses 55,019
---------------------------------------------------------------------------------------------------------
Trustees' fees and expenses--Note 1 23,709
---------------------------------------------------------------------------------------------------------
Legal and auditing fees 16,327
---------------------------------------------------------------------------------------------------------
Registration and filing fees:
Class A 3,222
Class B 1,226
Class C 440
---------------------------------------------------------------------------------------------------------
Other 15,743
------------
Total expenses 1,271,454
==================================================================================================================================
Net Investment Income 1,958,016
==================================================================================================================================
Realized and Unrealized Net realized gain on investments 14,198,894
Gain (Loss) ---------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments (6,641,818)
Translation of assets and liabilities denominated in foreign currencies (266,422)
------------
Net change (6,908,240)
------------
Net realized and unrealized gain 7,290,654
==================================================================================================================================
Net Increase in Net Assets Resulting From Operations $ 9,248,670
============
</TABLE>
See accompanying Notes to Financial Statements.
12 Oppenheimer Global Growth & Income Fund
<PAGE>
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Six Months Ended Year Ended
March 31, 1996 September 30,
(Unaudited) 1995
<S> <C> <C> <C>
==================================================================================================================================
Operations Net investment income $ 1,958,016 $ 4,236,981
---------------------------------------------------------------------------------------------------------
Net realized gain 14,198,894 3,971,942
---------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation (6,908,240) 1,504,804
------------- -------------
Net increase in net assets resulting from operations 9,248,670 9,713,727
==================================================================================================================================
Dividends and Dividends from net investment income:
Distributions to Class A (1,470,622) (3,285,784)
Shareholders Class B (23,693) --
Class C (291,924) (496,103)
---------------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (5,807,097) (6,986,724)
Class B (48,620) --
Class C (1,559,281) (1,095,339)
==================================================================================================================================
Beneficial Interest Net increase (decrease) in net assets resulting from beneficial
Transactions interest transactions--Note 2:
Class A 2,030,433 (8,270,645)
Class B 3,664,768 --
Class C 3,208,491 11,031,033
==================================================================================================================================
Net Assets Total increase 8,951,125 610,165
---------------------------------------------------------------------------------------------------------
Beginning of period 141,635,623 141,025,458
------------- -------------
End of period (including undistributed net investment income
of $354,124 and $182,347, respectively) $150,586,748 $141,635,623
============ ============
</TABLE>
See accompanying Notes to Financial Statements.
13 Oppenheimer Global Growth & Income Fund
<PAGE>
Financial Highlights
<TABLE>
<CAPTION>
Class A
------------------------------------------------------------------------
Six Months
Ended
March 31,
1996 Year Ended September 30,
(Unaudited) 1995 1994 1993 1992 1991(3)
<S> <C> <C> <C> <C> <C> <C>
====================================================================================================================
Per Share Operating Data:
Net asset value, beginning of period $14.98 $15.21 $14.09 $11.91 $12.43 $11.43
- --------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .22 .45 .33 .29 .26 .37
Net realized and unrealized
gain (loss) .75 .54 1.62 2.17 (.47) .95
-------- ------- ------- ------ ------ ------
Total income (loss) from
investment operations .97 .99 1.95 2.46 (.21) 1.32
- ---------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.20) (.40) (.35) (.17) (.28) (.32)
Distributions from net realized gain (.83) (.82) (.48) (.11) (.03) --
-------- ------- ------- ------ ------ ------
Total dividends and distributions
to shareholders (1.03) (1.22) (.83) (.28) (.31) (.32)
- ---------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $14.92 $14.98 $15.21 $14.09 $11.91 $12.43
======== ======= ======= ====== ====== ======
======================================================================================================================
Total Return, at Net Asset Value(4) 6.80% 7.43% 13.96% 21.00% (1.76)% 11.73%
======================================================================================================================
Ratios/Supplemental Data:
Net assets, end of period
(in thousands) $115,461 $113,341 $124,017 $86,019 $49,735 $29,239
- ---------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $112,732 $120,267 $117,164 $59,951 $37,116 $19,340
- ---------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 2.90%(5) 3.09% 2.44% 2.68% 2.41% 4.05%(5)
Expenses 1.61%(5) 1.63% 1.49% 1.56% 1.74% 1.94%(5)
- ---------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 118.1% 135.2% 87.4% 90.6% 51.3% 23.5%
Average brokerage commission rate(7) $0.0004 -- -- -- -- --
</TABLE>
<TABLE>
<CAPTION>
Class B Class C
---------- -----------------------------------
Period Six Months
Ended Ended
March 31, March 31,
1996(2) 1996 Year Ended Sept. 30,
(Unaudited (Unaudited) 1995 1994(1)
<S> <C> <C> <C> <C>
==================================================================================================
Per Share Operating Data:
Net asset value, beginning of period $14.72 $14.92 $15.17 $14.85
- --------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .13 .16 .35 .22
Net realized and unrealized
gain (loss) 1.04 .76 .53 .87
----- ------ ------ ------
Total income (loss) from
investment operations 1.17 .92 .88 1.09
- --------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.17) (.15) (.31) (.29)
Distributions from net realized gain (.83) (.83) (.82) (.48)
----- ------ ------ ------
Total dividends and distributions
to shareholders (1.00) (.98) (1.13) (.77)
- ---------------------------------------------------------------------------------------------------
Net asset value, end of period $14.89 $14.86 $14.92 $15.17
====== ====== ====== ======
===================================================================================================
Total Return, at Net Asset Value(4) 8.25% 6.44% 6.61% 7.41%
===================================================================================================
Ratios/Supplemental Data:
Net assets, end of period
(in thousands) $3,663 $31,462 $28,295 $17,008
- --------------------------------------------------------------------------------------------------
Average net assets (in thousands) $1,491 $29,388 $22,211 $ 7,896
- --------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 1.92%(5) 2.13%(5) 2.36% 1.85%(5)
Expenses 2.48%(5) 2.37%(5) 2.39% 2.44%(5)
- --------------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 118.1% 118.1% 135.2% 87.4%
Average brokerage commission rate(7) $0.0004 $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 March
31, 1996.
3. For the period from October 22, 1990 (commencement of operations)
to September 30, 1991.
4. 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. Total returns are not annualized for
periods of less than one full year.
5. Annualized.
6. 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 March 31, 1996 were $162,717,785 and $160,390,212, respectively.
7. 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.
14 Oppenheimer Global Growth & Income Fund
<PAGE>
Notes to Financial Statements (Unaudited)
================================================================================
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 high
total investment return (which includes current income and capital appreciation
in the value of its shares) from equity and debt securities. The Fund's
investment advisor is OppenheimerFunds, Inc. (the Manager). The Fund offers
Class A, Class B and Class C shares. Class A shares are sold 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
asked price 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 six months
ended March 31, 1996, a provision of $14,312 was made to the Fund's projected
benefit obligations and payments of $1,214 were made to retired trustees,
resulting in an accumulated liability of $41,700 at March 31, 1996.
- --------------------------------------------------------------------------------
Distributions to Shareholders. Dividends and distributions to shareholders are
recorded on the ex-dividend date.
15 Oppenheimer Global Growth & Income Fund
<PAGE>
Notes to Financial Statements (Unaudited) (Continued)
===============================================================================
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
primarily because of the recognition of certain foreign currency gains (losses)
as ordinary income (loss) for 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.
- --------------------------------------------------------------------------------
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>
Six Months Ended March 31, 1996(1) Year Ended September 30, 1995
---------------------------------- -----------------------------
Shares Amount Shares Amount
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 1,375,778 $ 20,464,967 2,855,688 $ 40,758,281
Dividends and distributions reinvested 490,834 7,019,091 727,590 9,907,173
Redeemed (1,697,655) (25,453,625) (4,170,123) (58,936,099)
------------ ------------ ------------ ------------
Net increase (decrease) 168,957 $ 2,030,433 (586,845) $ (8,270,645)
============ ============ ============ ============
- ------------------------------------------------------------------------------------------------------------------------
Class B:
Sold 256,881 $ 3,826,521 -- $ --
Dividends and distributions reinvested 4,630 66,521 -- --
Redeemed (15,406) (228,274) -- --
------------ ------------ ------------ ------------
Net increase 246,105 $ 3,664,768 -- $ --
============ ============ ============ ============
- ------------------------------------------------------------------------------------------------------------------------
Class C:
Sold 357,964 $ 5,309,789 1,026,146 $ 14,591,637
Dividends and distributions reinvested 124,234 1,767,863 109,993 1,498,250
Redeemed (261,345) (3,869,161) (360,371) (5,058,854)
------------ ------------ ------------ ------------
Net increase 220,853 $ 3,208,491 775,768 $ 11,031,033
============ ============ ============ ============
</TABLE>
1. For the six months ended March 31, 1996 for Class A and Class C shares and
for the period from November 10, 1995 (inception of offering) to March 31, 1996
for Class B shares.
===============================================================================
3. Unrealized Gains and
Losses on Investments
At March 31, 1996, net unrealized appreciation on investments of $5,312,701 was
composed of gross appreciation of $11,172,810, and gross depreciation of
$5,860,109.
===============================================================================
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 .80% on the first
$250 million of average annual net assets, .77% of the next $250 million, .75%
of the next $500 million, .69% of the next $1 billion and .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 six months ended March 31, 1996, commissions (sales charges paid by
investors) on sales of Class A shares totaled $287,481, of which $97,502 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 $107,139 and $40,577 of which $2,589 and $2,008,
respectively, was paid to an affiliated broker/dealer. During the six
16 Oppenheimer Global Growth & Income Fund
<PAGE>
===============================================================================
4. Management Fees
And Other Transactions
With Affiliates
(continued)
months ended March 31, 1996, OFDI received contingent deferred sales charges of
$1,275 and $2,652, 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 .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 six months ended March 31, 1996, OFDI paid $8,266 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 .75% per year on Class B shares that are
outstanding for 6 years or less. OFDI also receives a service fee of .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. During the six months ended March
31, 1996, OFDI retained $6,971 as compensation for Class B sales commissions and
service fee advances, as well as financing costs. As of March 31, 1996, OFDI had
incurred unreimbursed expenses of $123,432 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 .75% per year on Class C shares. OFDI also
receives a service fee of .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 six months ended March 31, 1996, OFDI paid $3,851 to an affiliated
broker/dealer as reimbursement for Class C personal service and maintenance
expenses and retained $53,087 as reimbursement for Class C sales commissions and
service fee advances, as well as financing costs. As of March 31, 1996, OFDI had
incurred unreimbursed expenses of $308,616 for Class C.
================================================================================
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.
17 Oppenheimer Global Growth & Income Fund
<PAGE>
Notes to Financial Statements (Unaudited) (Continued)
===============================================================================
5. Forward Contracts
(continued)
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 March 31, 1996, the Fund had outstanding forward contracts to purchase and
sell foreign currencies as follows:
<TABLE>
<CAPTION>
Contract
Exchange Amount Valuation as of Unrealized Unrealized
Contracts to Purchase Date (000s) March 31, 1996 Appreciation Depreciation
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Japanese Yen (JPY) 4/1/96-4/2/96 598,166 JPY $5,600,805 $ -- $15,044
- ----------------------------------------------------------------------------------------------------------
Spanish Peseta (ESP) 4/3/96-4/9/96 133,853 ESP 1,078,116 -- 1,260
- ----------------------------------------------------------------------------------------------------------
French Franc (FRF) 4/30/96 2,754 FRF 547,911 708 --
---------- ------ ------
$7,226,832 708 16,304
========== ------ ------
Contracts to Sell
- ----------------------------------------------------------------------------------------------------------
Argentina Austral (ARA) 4/1/96 204 ARA $ 203,837 $ -- $ 169
- ----------------------------------------------------------------------------------------------------------
Malaysian Ringgit (MYR) 4/1/96 1,663 MYR 657,683 -- 4,128
---------- ------ ------
$ 861,520 -- 4,297
========== ------ ------
$ 708 $20,601
====== ======
</TABLE>
===============================================================================
6. Illiquid and
Restricted Securities
The Fund owns securities purchased in private placements 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. Restricted and illiquid securities, excluding securities eligible
for resale pursuant to Rule 144A of the Act amount to $578,428 or .38% of the
Fund's net assets, at March 31, 1996.
<TABLE>
<CAPTION>
Valuation Per Unit as
Security Acquisition Date Cost Per Unit of March 31, 1996
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Plant Genetics Systems 5/27/92 $11.18 $11.55
</TABLE>
18 Oppenheimer Global Growth & Income Fund
<PAGE>
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 Advisor OppenheimerFunds Inc.
================================================================================
Distributor OppenheimerFunds Distributor, Inc.
================================================================================
Transfer and Shareholder OppenheimerFunds Services
Servicing Agent
================================================================================
Custodian of The Bank of New York
Portfolio Securities
================================================================================
Independent Auditors KPMG Peat Marwick LLP
================================================================================
Legal Counsel Gordon Altman Butowsky Weitzen Shalov & Wein
The financial statements included herein have been
taken from the records of the Fund without examination
by the Independent auditors.
This is a copy of a report to shareholders of
Oppenheimer Global 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.
19 Oppenheimer Global Growth & Income Fund
<PAGE>
Information
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Saturday 10 a.m.-2 p.m. ET
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information and transactions
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OppenheimerFunds
Information Hotline
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messages on the economy and
issues that affect your investments
1-800-835-3104
RS0215.001.0396 May 31, 1996
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OppenheimerFunds Services
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===============================================================================
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