<PAGE>
OPPENHEIMER GLOBAL GROWTH & INCOME FUND
Semiannual Report March 31, 1997
[PHOTO]
"We need our
money to grow
because we have
LONG-TERM
goals. But we
know stocks
can have ups
and downs."
[LOGO]
OPPENHEIMERFUNDS
THE RIGHT WAY TO INVEST
<PAGE>
NEWS
BEAT THE AVERAGES
Cumulative Total Return for the
3-Year Period Ended 3/31/97:
Oppenheimer Global Growth
& Income Fund
Class A Shares (at net asset value)(1)
43.24%
Lipper Global Flexible Portfolio Average for 30 Funds for the
3-Year Period Ended 3/31/97(3)
34.55%
THE FUND'S CLASS A AND C SHARES WERE RANKED **** BY MORNINGSTAR MUTUAL FUNDS FOR
478 (3-YEAR) AND 219 (5-YEAR) INTERNATIONAL EQUITY FUNDS FOR THE COMBINED 3- AND
5-YEAR PERIODS ENDED 3/31/97.(4)
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 mod-erate the effects
of market volatility.
PERFORMANCE
Total returns for the six months ended 3/31/97 were 12.86% for Class A shares,
12.44% for Class B shares and 12.45% for Class C shares, without deducting sales
charge.(1)
Your Fund's average annual total returns for Class A shares for the 1-and
5-year periods ended 3/31/97 and since inception on 10/22/90 were 12.83%, 11.99%
and 11.01%, respectively. For Class B shares, average annual total returns for
the 1-year period ended 3/31/97 and since inception on 10/10/95 were 13.76% and
16.05%, respectively. For Class C shares, average annual total returns for the
1-year period ended 3/31/97 and since inception on 12/1/93 were 17.80% and
11.75%, respectively.(2)
OUTLOOK
"Although many securities in the U.S. have at times reached overvalued price
levels, reasonably valued investments with growth potential still remain
abundant in many foreign markets."
Frank Jennings, Portfolio Manager
March 31, 1997
Total returns include change in share price and reinvestment of dividends and
capital gains distributions in a hypothetical investment for the periods shown.
IN REVIEWING PERFORMANCE AND RANKINGS, PLEASE REMEMBER 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. Includes change in net asset value per share without deducting any sales
charges. Such performance is not annualized and would have been lower if sales
charges were taken into account.
2. Class A returns include the current maximum initial sales charge of 5.75%.
Class B returns include the applicable contingent deferred sales charge of 5% (1
year) and 4% (since inception). Class C returns include the 1% contingent
deferred sales charge for the 1-year result. An explanation of the different
total returns is in the Fund's prospectus. Class B and Class C shares are
subject to an annual 0.75% asset-based sales charge.
3. Source: Lipper Analytical Services, 3/31/97. The Lipper average is shown for
comparative purposes only. Funds included
in the index may have different investment policies and risks than the Fund.
Oppenheimer Global Growth & Income Fund is characterized by Lipper as a global
flexible portfolio fund. Lipper performance is based on total return and does
not take sales charges into consideration.
4. Source: MORNINGSTAR MUTUAL FUNDS, 3/31/97. Morningstar, Inc. ranks mutual
funds in broad investment classes, based on risk-adjusted investment return
after considering sales charges and expenses. Return and risk are measured as
performance above and below 90-day U.S. Treasury bill returns, respectively.
Current star rankings are based on the weighted average of 3-, 5- and 10-year
(if applicable) rankings for a fund or class and are subject to change monthly.
The top 10%: 5 stars. Next 22.5%: 4 stars. Middle 35%: 3 stars. Next 22.5%: 2
stars. Bottom 10%: 1 star. The Fund's Class A shares are ranked 4 stars (3-year)
and 4 stars (5-year), weighted 40% and 60%, respectively, and 4 stars (1-year)
among 939 funds.
2 Oppenheimer Global Growth & Income Fund
<PAGE>
[PHOTO]
Bridget A. Macaskill
President
Oppenheimer
Global Growth &
Income Fund
DEAR SHAREHOLDER,
After six years of expansion, the U.S. economy has continued to demonstrate
steady growth in a low-inflation environment. One of the major reasons has been
the appreciation of the U.S. dollar. We believe that political and financial
turmoil in Japan, led by problems in the Japanese real estate and banking
markets, has shifted investor psychology in favor of the dollar. In addition,
perceptions of domestic political stability, fueled by the re-election of
President Clinton and the status quo Congressional elections, have encouraged
foreign investment in the United States, increasing demand for the dollar and
raising its value relative to foreign currencies.
In a stable domestic environment, one benefit of an appreciating U.S.
dollar is the increased spending power of the American consumer. An appreciating
dollar buys more of a foreign currency, lowering the relative cost of foreign
goods and services and encouraging Americans to purchase more of them. In turn,
the increased exports to the United States should stimulate growth in these
foreign economies. This overseas growth is extremely important for the long-term
prosperity of the U.S. economy, as we rely on these countries to be in a strong
enough economic position to purchase our goods and services, thereby stimulating
our growth. In essence, an appreciating dollar allows the United States to
bolster overseas economic growth in the expectation that these economies will
help us to maintain our own strong domestic growth in the future.
We received mixed signals from foreign economies during the six-month
period ended March 31, 1997. On the positive side, lower interest rates and
strengthening exports could ignite a strong growth cycle in Europe. In addition,
Latin America is beginning to benefit from years of political reform,
privatization and deregulation aimed at shifting their economies toward the U.S.
capitalist model. Argentina's growth is the fastest, stemming from the most
extensive reforms. We are also looking to Brazil, the most populous country in
Latin America, to spur economic development both at home and with South American
neighbors such as Peru and Chile. On the other hand, with the exception of Hong
Kong, Asia's economic growth, dominated by a recession in Japan, has been
disappointing.
The combination of a strong U.S. economy and accelerating earnings
growth overseas makes a compelling case for funds investing in both domestic and
foreign securities. 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. We believe that by diversifying investments
throughout the world, investors can be well-positioned to participate in any
economic environment.
Your portfolio managers discuss the outlook for your Fund on the
following pages. Thank you for your confidence in OppenheimerFunds, THE RIGHT
WAY TO INVEST. We look forward to helping you reach your investment goals in the
future.
/s/ Bridget A. Macaskill
Bridget A. Macaskill
April 21, 1997
3 Oppenheimer Global Growth & Income Fund
<PAGE>
Q+A
Q WHAT INVESTMENTS MADE POSITIVE CONTRIBUTIONS TO PERFORMANCE?
[PHOTO] [PHOTO]
AN INTERVIEW WITH YOUR FUND'S MANAGERS.
HOW HAS THE FUND PERFORMED?
Oppenheimer Global Growth & Income Fund performed well for the fourth quarter of
1996 and has returned healthy earnings year-to-date. Strong performance from the
Fund's growth equity investments helped boost the Fund's returns. For the
six-month period ending March 31, 1997, the Fund's Class A shares returned
12.86%, without deducting sales charges.(1)
WHAT INVESTMENTS MADE POSITIVE CONTRIBUTIONS TO PERFORMANCE?
The Fund's top equity hold-ings were some of its strongest performers. A luxury
German car manufacturer performed especially well this period. The company
benefited from increased sales, attributable to the introduction of a popular
new automobile. In addition, the depreciation of the German mark against the
U.S. dollar made the company's products less expensive in the United States and
bolstered export sales.
The Fund's holdings in a telecommunications company also outperformed
during the period. This cellular-phone manufacturer is using new technology to
improve the quality of the signal. The signal is stronger than other cellulars,
and the phone can be used for days without a recharge. The technology has been
successfully tested for more than a year in Seoul, Korea and Hong Kong and has
begun arriving in the United States. We bought the stock a year ago when it was
still inexpensive, and we were able to see it appreciate during the period. We
expect continued profits as the company penetrates new markets.(2)
[PHOTO]
DID ANY INVESTMENTS NOT PERFORM AS YOU'D EXPECTED?
Spirit companies, manufacturers of liquor, have underperformed over the last
six months despite
1. Includes change in net asset value per share without deducting any sales
charges. Such performance is not annualized
and would have been lower if sales charges were taken into account.
2. 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--A LUXURY GERMAN CAR MANUFACTURER
PERFORMED WELL THIS PERIOD.
growing world economies. However, the Fund benefited from the high dividends
these holdings paid. Demographically, liquor is consumed primarily by older
consumers. The global baby boomers, born after World War II, are now entering
their fifties, and we anticipate an increase in liquor sales. In addition, Japan
and China, population-dense economies, are poised for eco-nomic recovery, and
could boost liquor demand in Asia. We are maintaining our positions, bought at a
discount, and expect solid growth from these stocks as demand improves. Also,
our holdings in a giant media conglomerate underperformed. The market lost
enthusiasm for media companies in 1996, and they all returned relatively flat
performance.
WHAT AREAS ARE YOU CURRENTLY TARGETING?
Since we expect low inflation and low interest rates to continue, we are
optimistic about the Fund's income holdings. We own some 30-year zero coupon
bonds yielding 7%, and in a low interest-rate environment, these highly
leveraged positions should generate above-average yields.
Recently, we bought some convertible positions in a British household
products company. The company manufactures kitchen and bathroom cleaning
products considered necessities by the growing middle class in emerging markets.
We consider the 6% yield paid by the convertible to be a good source of income
and a stepping stone into a company that has the potential for strong annual
growth.
[PHOTO] [PHOTO]
WHAT IS THE OUTLOOK FOR THE FUND?
We remain fundamentally positive on the Fund's earnings potential for the coming
period. Although the U.S. faces the dual risks of high valuations and slowing
overseas earnings from the strong dollar, we are increasingly positive on the
outlook for our over-seas holdings. Interest rates should remain low in Europe
and Japan, and earnings have accelerated in these markets as corporate
managements cut costs and focus on returns to shareholders. Furthermore,
although many securities in the U.S. have at times reached overvalued price
levels, rea-sonably valued investments with growth potential still remain
abundant in many foreign markets. / /
5 Oppenheimer Global Growth & Income Fund
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS March 31, 1997 (Unaudited)
FACE MARKET VALUE
AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. GOVERNMENT
OBLIGATIONS--5.7%
- --------------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Bonds, STRIPS, Zero Coupon:
7.467%, 11/15/18(1) $ 5,000,000 $ 1,049,969
7.265%--7.41%, 11/15/22(1) 15,000,000 2,386,538
6.905%, 2/15/24(1) 10,000,000 1,471,110
6.70%, 2/15/26(1) 20,000,000 2,630,420
7.467%, 8/15/20(1) 7,000,000 1,295,154
7.377%, 8/15/22(1) 8,000,000 1,296,975
7.305%, 8/15/23(1) 7,000,000 1,072,596
------------
Total U.S. Government Obligations (Cost $11,580,043) 11,202,762
- --------------------------------------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT
OBLIGATIONS--3.2%
- --------------------------------------------------------------------------------------------------------------------------------
Argentina (Republic of) Past Due Interest Bonds,
Series L, 6.75%, 3/31/05(2) 1,470,000 1,318,406
---------------------------------------------------------------------------------------------
Ministry of Finance (Russian Government)
Debs., Series VII, 3%, 5/14/11(3) 1,000,000 371,250
---------------------------------------------------------------------------------------------
Russia (Government of) Interest Nts., 12/29/49(4)(5) 2,000,000 1,350,312
---------------------------------------------------------------------------------------------
Venezuela (Republic of) Front-Loaded Interest Reduction Bonds,
Series B, 6.75%, 3/31/07(2) 3,809,523 3,321,429
------------
Total Foreign Government Obligations (Cost $4,906,721) 6,361,397
- --------------------------------------------------------------------------------------------------------------------------------
NON-CONVERTIBLE CORPORATE BONDS
AND NOTES--5.2%
- --------------------------------------------------------------------------------------------------------------------------------
AMC Entertainment, Inc., 12.625% Gtd. Sr. Sub. Nts., 8/1/02 500,000 536,875
---------------------------------------------------------------------------------------------
Carbide/Graphite Group, Inc. (The), 11.50% Sr. Nts., 9/1/03(3) 316,000 346,020
---------------------------------------------------------------------------------------------
Chiquita Brands International, Inc., 9.625% Sr. Nts., 1/15/04 500,000 515,000
---------------------------------------------------------------------------------------------
Foodmaker, Inc., 9.25% Sr. Nts., 3/1/99 1,000,000 1,022,500
---------------------------------------------------------------------------------------------
Grand Union Co., 12% Sr. Nts., 9/1/04 2,000,000 1,995,000
---------------------------------------------------------------------------------------------
Magellan Health Services, Inc., 11.25% Sr.
Sub. Nts., Series A, 4/15/04 500,000 555,000
---------------------------------------------------------------------------------------------
Matahari International Finance Co. BV, 11.25% Gtd. Nts., 3/15/01 1,500,000 1,592,812
---------------------------------------------------------------------------------------------
OPI International, Inc., 12.875% Gtd. Sr. Nts., 7/15/02(3) 500,000 542,500
---------------------------------------------------------------------------------------------
Oryx Energy Co., 10% Debs., 4/1/01 1,000,000 1,087,848
---------------------------------------------------------------------------------------------
Sequa Corp., 9.375% Sr. Sub. Nts., 12/15/03 1,000,000 1,005,000
---------------------------------------------------------------------------------------------
Tultex Corp., 10.625% Gtd. Sr. Nts., 3/15/05 1,000,000 1,086,250
------------
Total Non-Convertible Corporate Bonds and Notes
(Cost $10,179,490) 10,284,805
<CAPTION>
SHARES
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS--79.4%
- --------------------------------------------------------------------------------------------------------------------------------
BASIC MATERIALS--1.7%
- --------------------------------------------------------------------------------------------------------------------------------
CHEMICALS--1.7% Freeport-Mcmoran Resource Partners, LP 200,000 3,350,000
- --------------------------------------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS--21.2%
- --------------------------------------------------------------------------------------------------------------------------------
AUTOS & HOUSING--7.9% IRSA Inversiones y Representaciones SA 806,002 3,022,876
---------------------------------------------------------------------------------------------
Porsche AG, Preference 11,000 12,625,930
------------
15,648,806
</TABLE>
6 Oppenheimer Global Growth & Income Fund
<PAGE>
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
LEISURE & ENTERTAINMENT--8.6% Nintendo Co. Ltd. 130,000 $ 9,323,961
---------------------------------------------------------------------------------------------
Viacom, Inc., Cl. B(6) 230,000 7,618,750
------------
16,942,711
- --------------------------------------------------------------------------------------------------------------------------------
RETAIL: SPECIALTY--4.7% Christies International plc 500,000 2,376,258
---------------------------------------------------------------------------------------------
Wella AG 12,500 6,877,880
------------
9,254,138
- --------------------------------------------------------------------------------------------------------------------------------
CONSUMER NON-CYCLICALS--13.1%
- --------------------------------------------------------------------------------------------------------------------------------
BEVERAGES--9.3% Allied Domecq plc 1,200,000 9,026,504
---------------------------------------------------------------------------------------------
Guinness plc 500,000 4,215,810
---------------------------------------------------------------------------------------------
Remy Cointreau 160,010 4,167,622
---------------------------------------------------------------------------------------------
Serm Suk Public Co. Ltd. 46,100 940,634
------------
18,350,570
- --------------------------------------------------------------------------------------------------------------------------------
FOOD--0.8% Dairy Farm International Holdings Ltd. 2,000,000 1,510,000
- --------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE/DRUGS--1.9% Gilead Sciences, Inc.(6) 50,000 1,143,750
---------------------------------------------------------------------------------------------
Glaxo Wellcome plc, Sponsored ADR 50,000 1,768,750
---------------------------------------------------------------------------------------------
Neurogen Corp.(6) 40,000 760,000
------------
3,672,500
- --------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE/SUPPLIES & United States Surgical Corp. 70,000 2,135,000
SERVICES--1.1%
- --------------------------------------------------------------------------------------------------------------------------------
ENERGY--4.0%
- --------------------------------------------------------------------------------------------------------------------------------
ENERGY SERVICES & Centrais Electricas Brasileiras SA, CL. B, ADR(6) 6,000,000 2,580,421
PRODUCERS--3.0% ---------------------------------------------------------------------------------------------
Transocean Offshore, Inc. 60,000 3,367,500
------------
5,947,921
- --------------------------------------------------------------------------------------------------------------------------------
OIL-INTEGRATED--1.0% Elf Gabon SA 6,000 1,883,628
- --------------------------------------------------------------------------------------------------------------------------------
FINANCIAL--16.0%
- --------------------------------------------------------------------------------------------------------------------------------
BANKS--14.1% Banco Bradesco SA, Preference 484,618,073 3,999,283
---------------------------------------------------------------------------------------------
Banque Nationale de Paris 150,000 6,665,185
---------------------------------------------------------------------------------------------
Cie Financiere de Paribas, Series A 110,000 7,655,147
---------------------------------------------------------------------------------------------
Grupo Financiero Banorte SA de CV, Series B(6) 1,500,000 1,554,659
---------------------------------------------------------------------------------------------
Merita Ltd., Cl. A 600,000 2,059,441
---------------------------------------------------------------------------------------------
Societe Generale 50,000 5,845,251
------------
27,778,966
- --------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL--1.9% Fannie Mae 50,000 1,806,250
---------------------------------------------------------------------------------------------
Taubman Centers, Inc. 150,000 1,950,000
------------
3,756,250
- --------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL--6.2%
- --------------------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--1.2% Schneider SA 40,000 2,288,354
- --------------------------------------------------------------------------------------------------------------------------------
MANUFACTURING--3.7% Bic Corp. 20,000 3,038,109
---------------------------------------------------------------------------------------------
Stork NV 100,000 4,318,247
------------
7,356,356
- --------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION--1.3% Sea Containers Ltd., CL. A 160,900 2,493,950
- --------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY--17.2%
- --------------------------------------------------------------------------------------------------------------------------------
AEROSPACE/DEFENSE--1.4% Rolls-royce plc 766,300 2,863,251
7 Oppenheimer Global Growth & Income Fund
<PAGE>
<CAPTION>
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
MARKET VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ELECTRONICS--11.2% Burr-Brown Corp.(6) 75,000 $ 2,446,875
---------------------------------------------------------------------------------------------
Coherent, Inc.(6) 190,000 9,084,375
---------------------------------------------------------------------------------------------
National Semiconductor Corp.(6) 380,000 10,450,000
------------
21,981,250
- --------------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS- Millicom, Inc.(6) 15,500 --
TECHNOLOGY--4.6% ---------------------------------------------------------------------------------------------
QUALCOMM, Inc.(6) 160,000 9,020,000
---------------------------------------------------------------------------------------------
9,020,000
------------
Total Common Stocks (Cost $137,505,658) 156,233,651
- --------------------------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS--5.1%
- --------------------------------------------------------------------------------------------------------------------------------
Reckitt & Coleman Capital, 9.50% Cv. (Cost $9,632,666)(6) 3,500,000 10,023,304
- --------------------------------------------------------------------------------------------------------------------------------
OTHER SECURITIES--1.4%
- --------------------------------------------------------------------------------------------------------------------------------
U.S. Surgical Corp., $2.20 Depositary Shares representing
one-fiftieth share of Series A Preferred Stock (Cost $2,823,941) 95,000 2,731,250
<CAPTION>
UNITS
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
RIGHTS, WARRANTS AND CERTIFICATE--0.0%
- --------------------------------------------------------------------------------------------------------------------------------
American Satellite Network, Inc. Wts., Exp. 6/99 (Cost $0) 3,875 --
<CAPTION>
FACE
AMOUNT
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
REPURCHASE AGREEMENT--0.6%
- --------------------------------------------------------------------------------------------------------------------------------
Repurchase agreement with Goldman, Sachs & Co., 6.35%,
dated 3/31/97, to be repurchased at $1,200,212
on 4/1/97, collateralized by U.S. Treasury Nts.,
6.375%--9.125%, 5/15/99--8/15/05, with a value of
$1,227,211 (Cost $1,200,000) $1,200,000 1,200,000
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $177,828,519) 100.6% $198,037,169
- --------------------------------------------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS (0.6) (1,202,102)
---------- ------------
NET ASSETS 100.0% $196,835,067
---------- ------------
---------- ------------
<CAPTION>
<S> <C> <C> <C>
Distribution of investments by country of issue, as a
percentage of total investments at value, is as follows:
COUNTRY MARKET VALUE PERCENT
---------------------------------------------------------------------------------------------
United States $ 79,452,455 40.1%
---------------------------------------------------------------------------------------------
France 31,543,295 15.9
---------------------------------------------------------------------------------------------
Great Britain 30,273,877 15.3
---------------------------------------------------------------------------------------------
Germany 19,503,809 9.8
---------------------------------------------------------------------------------------------
Japan 9,323,960 4.7
---------------------------------------------------------------------------------------------
Brazil 6,579,704 3.3
---------------------------------------------------------------------------------------------
The Netherlands 5,911,060 3.0
---------------------------------------------------------------------------------------------
Argentina 4,341,283 2.2
---------------------------------------------------------------------------------------------
Venezuela 3,321,429 1.7
---------------------------------------------------------------------------------------------
Finland 2,059,441 1.0
---------------------------------------------------------------------------------------------
Russia 1,721,563 0.9
---------------------------------------------------------------------------------------------
Mexico 1,554,659 0.8
---------------------------------------------------------------------------------------------
Hong Kong 1,510,000 0.8
---------------------------------------------------------------------------------------------
Thailand 940,634 0.5
------------- -----
Total $ 198,037,169 100.0%
------------- -----
------------- -----
<CAPTION>
<S><C>
1. For zero coupon bonds, the interest rate shown is the effective yield on the date of purchase.
2. Represents the current interest rate for a variable rate security.
3. Identifies issues considered to be illiquid or restricted--See Note 6 of Notes to Financial
Statements.
4. When-issued security to be delivered and settled after March 31, 1997.
5. Denotes a step bond: a zero coupon bond that converts to a fixed or variable interest rate at
a designated future date.
6. Non-income producing security.
See accompanying Notes to Financial Statements.
</TABLE>
8 Oppenheimer Global Growth & Income Fund
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES MARCH 31, 1997 (UNAUDITED)
- -------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS Investments, at value (cost $177,828,519)--see accompanying statement $198,037,169
---------------------------------------------------------------------------------------------
Cash 759,771
---------------------------------------------------------------------------------------------
Unrealized appreciation on forward foreign currency exchange contracts--Note 5 28,128
---------------------------------------------------------------------------------------------
Receivables:
Investments sold 3,643,295
Closed forward foreign currency exchange contracts 2,445,104
Shares of beneficial interest sold 907,485
Interest and dividends 550,402
---------------------------------------------------------------------------------------------
Other 9,784
-------------
Total assets 206,381,138
- --------------------------------------------------------------------------------------------------------------------------------
LIABILITIES Unrealized depreciation on forward foreign currency exchange
contracts--Note 5 13,584
---------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 8,078,170
Shares of beneficial interest redeemed 1,080,535
Distribution and service plan fees 112,734
Trustees' fees--Note 1 75,731
Transfer and shareholder servicing agent fees 35,568
Other 149,749
------------
Total liabilities 9,546,071
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $196,835,067
-------------
- --------------------------------------------------------------------------------------------------------------------------------
COMPOSITION OF Paid-in capital $169,824,047
NET ASSETS ----------------------------------------------------------------------------------------------
Overdistributed net investment income (671,886)
----------------------------------------------------------------------------------------------
Accumulated net realized gain on investments and
foreign currency transactions 7,329,519
---------------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation
of assets and liabilities denominated in foreign currencies 20,353,387
--------------
Net assets $196,835,067
--------------
--------------
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE Class A Shares:
PER SHARE Net asset value and redemption price per share (based on net
assets of $140,447,330 and 8,819,518 shares of beneficial
interest outstanding) $15.92
Maximum offering price per share (net asset value plus sales
charge of 5.75% of offering price) $16.89
---------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price and offering price per share
(based on net assets of $14,487,725 and 912,851 shares of
beneficial interest outstanding) $15.87
---------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price and offering price
per share (based on net assets of $41,900,012 and
2,644,031 shares of beneficial interest outstanding) $15.85
See accompanying Notes to Financial Statements.
</TABLE>
9 Oppenheimer Global Growth & Income Fund
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED MARCH 31, 1997 (UNAUDITED)
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME Interest $2,221,294
---------------------------------------------------------------------------------------------
Dividends (net of foreign withholding taxes of $61,354) 715,849
--------------
Total income 2,937,143
- --------------------------------------------------------------------------------------------------------------------------------
EXPENSES Management fees--Note 4 705,553
---------------------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 153,805
Class B 51,960
Class C 193,639
---------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 182,406
---------------------------------------------------------------------------------------------
Custodian fees and expenses 55,400
---------------------------------------------------------------------------------------------
Shareholder reports 55,039
---------------------------------------------------------------------------------------------
Trustees' fees and expenses--Note 1 30,535
---------------------------------------------------------------------------------------------
Legal and auditing fees 13,948
---------------------------------------------------------------------------------------------
Insurance expenses 3,943
---------------------------------------------------------------------------------------------
Registration and filing fees:
Class B 1,862
Class C 1,589
---------------------------------------------------------------------------------------------
Other 10,452
--------------
Total expenses 1,460,131
- --------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 1,477,012
- --------------------------------------------------------------------------------------------------------------------------------
REALIZED AND Net realized gain on:
UNREALIZED GAIN (LOSS) Investments 6,141,880
Foreign currency transactions 1,621,807
------------
Net realized gain 7,763,687
---------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments 13,647,624
Translation of assets and liabilities denominated in foreign currencies (2,212,119)
------------
Net change 11,435,505
------------
Net realized and unrealized gain 19,199,192
- --------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $20,676,204
------------
------------
See accompanying Notes to Financial Statements.
10 Oppenheimer Global Growth & Income Fund
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 1997 SEPTEMBER 30,
(UNAUDITED) 1996
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
OPERATIONS Net investment income $ 1,477,012 $ 3,538,878
---------------------------------------------------------------------------------------------
Net realized gain 7,763,687 18,140,523
---------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation 11,435,505 (3,287,320)
------------- -----------
Net increase in net assets resulting from operations 20,676,204 18,392,081
- ------------------------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND Dividends from net investment income:
DISTRIBUTIONS TO Class A (1,634,568) (3,012,171)
SHAREHOLDERS Class B (100,208) (89,925)
Class C (331,554) (615,071)
---------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (10,399,220) (5,806,943)
Class B (812,469) (48,484)
Class C (3,233,192) (1,559,313)
- ------------------------------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST Net increase in net assets resulting from beneficial
TRANSACTIONS interest transactions--Note 2:
Class A 17,228,854 1,387,903
Class B 6,146,007 7,852,376
Class C 5,244,481 5,914,656
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS Total increase 32,784,335 22,415,109
---------------------------------------------------------------------------------------------
Beginning of period 164,050,732 141,635,623
------------- -------------
End of period (including overdistributed net investment
income of $671,886 and $82,568, respectively) $196,835,067 $164,050,732
------------- --------------
------------- --------------
</TABLE>
See accompanying Notes to Financial Statements.
11 Oppenheimer Global Growth & Income Fund
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
CLASS A
-----------------------------------------------------------------
SIX MONTHS
ENDED
MARCH 31, 1997 YEAR ENDED SEPTEMBER 30,
(UNAUDITED) 1996 1995 1994 1993 1992
- -------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $15.62 $14.98 $15.21 $14.09 $11.91 $12.43
- -------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .15 .47 .45 .33 .29 .26
Net realized and unrealized gain (loss) 1.73 1.40 .54 1.62 2.17 (.47)
------ ------ ------ ------ ------ ------
Total income (loss) from investment operations 1.88 1.87 .99 1.95 2.46 (.21)
- -------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.20) (.40) (.40) (.35) (.17) (.28)
Distributions from net realized gain (1.38) (.83) (.82) (.48) (.11) (.03)
------ ------ ------ ------ ------ ------
Total dividends and distributions to shareholders (1.58) (1.23) (1.22) (.83) (.28) (.31)
- -------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $15.92 $15.62 $14.98 $15.21 $14.09 $11.91
------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------
- -------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(3) 12.86% 13.28% 7.43% 13.96% 21.00% (1.76)%
- -------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $140,447 $120,214 $113,341 $124,017 $86,019 $49,735
- -----------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $127,855 $115,186 $120,267 $117,164 $59,951 $37,116
- -----------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 1.81%(4) 2.65% 3.09% 2.44% 2.68% 2.41%
Expenses 1.44%(4) 1.52% 1.63% 1.49% 1.56% 1.74%
- -------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 48.0% 207.8% 135.2% 87.4% 90.6% 51.3%
Average brokerage commission rate(6) $0.0019 $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.
12 Oppenheimer Global Growth & Income Fund
<PAGE>
<TABLE>
<CAPTION>
CLASS B
-----------------------------------
SIX MONTHS PERIOD
ENDED ENDED
MARCH 31, 1997 SEPTEMBER 30,
(UNAUDITED) 1996(2)
- ---------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------
<S> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $15.57 $14.72
- ---------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .11 .36
Net realized and unrealized gain (loss) 1.70 1.63
------ ------
Total income (loss) from investment operations 1.81 1.99
- ---------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.13) (.31)
Distributions from net realized gain (1.38) (.83)
------ ------
Total dividends and distributions to shareholders (1.51) (1.14)
- ---------------------------------------------------------------------------------------------
Net asset value, end of period $15.87 $15.57
------ ------
------ ------
- ---------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(3) 12.44% 14.33%
- ---------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $14,488 $8,131
- ---------------------------------------------------------------------------------------------
Average net assets (in thousands) $10,468 $3,815
- ---------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 1.19%(4) 1.64%(4)
Expenses 2.21%(4) 2.28%(4)
- ---------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 48.0% 207.8%
Average brokerage commission rate(6) $0.0019 $0.0004
<CAPTION>
CLASS C
----------------------------------------------------------
SIX MONTHS
ENDED
MARCH 31, 1997 YEAR ENDED SEPTEMBER 30,
(UNAUDITED) 1996 1995 1994(1)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $15.55 $14.92 $15.17 $14.85
- --------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .11 .35 .35 .22
Net realized and unrealized gain (loss) 1.70 1.40 .53 .87
----- ------ ------ -----
Total income (loss) from investment operations 1.81 1.75 .88 1.09
- --------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.13) (.29) (.31) (.29)
Distributions from net realized gain (1.38) (.83) (.82) (.48)
------ ------ ------
Total dividends and distributions to shareholders (1.51) (1.12) (1.13) (.77)
- --------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $15.85 $15.55 $14.92 $15.17
------ ------ ------ ------
------ ------ ------ ------
- ---------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(3) 12.45% 12.45% 6.61% 7.41%
- --------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $41,900 $35,706 $28,295 $17,008
- --------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $38,961 $31,371 $22,211 $7,896
- -------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 1.19%(4) 1.87% 2.36% 1.85%(4)
Expenses 2.20%(4) 2.28% 2.39% 2.44%(4)
- --------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 48.0% 207.8% 135.2% 87.4%
Average brokerage commission rate(6) $0.0019 $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 March 31, 1997 were $98,747,092 and
$81,354,325, 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.
13 Oppenheimer Global Growth & Income Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- -------------------------------------------------------------------------------
1. SIGNIFICANT Oppenheimer Global Growth & Income Fund (the
ACCOUNTING POLICIES 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 by investing 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 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 six months ended March 31, 1997, a
provision of $23,648 was made for the Fund's
projected benefit obligations and payments of
$4,525 were made to retired trustees,
resulting in an accumulated liability of
$64,238 at March 31, 1997.
14 Oppenheimer Global Growth & Income Fund
<PAGE>
- -------------------------------------------------------------------------------
1. SIGNIFICANT DISTRIBUTIONS TO SHAREHOLDERS. Dividends and
ACCOUNTING POLICIES distributions to shareholders are recorded
(CONTINUED) on the ex-dividend date.
--------------------------------------------
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 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 The Fund has authorized an unlimited number
BENEFICIAL INTEREST 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 YEAR ENDED
MARCH 31, 1997 SEPTEMBER 30, 1996(1)
--------------------------- ---------------------------
SHARES AMOUNT SHARES AMOUNT
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 1,656,937 $26,409,283 2,501,931 $ 37,638,075
Dividends and distributions reinvested 778,844 11,562,470 587,255 8,491,936
Redeemed (1,311,384) (20,742,899) (2,961,528) (44,742,108)
------------ ------------ ------------ ------------
Net increase 1,124,397 $17,228,854 127,658 $1,387,903
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
- -----------------------------------------------------------------------------------------------
Class B:
Sold 420,317 $ 6,675,226 587,069 $ 8,834,948
Dividends and distributions reinvested 57,893 856,990 8,689 128,325
Redeemed (87,672) (1,386,209) (73,445) (1,110,897)
------------ ------------ ------------ ------------
Net increase 390,538 $ 6,146,007 522,313 $ 7,852,376
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
-----------------------------------------------------------------------------------------------
Class C:
Sold 303,815 $ 4,780,160 686,840 $10,288,855
Dividends and distributions reinvested 229,289 3,382,766 144,291 2,072,833
Redeemed (185,902) (2,918,445) (431,369) (6,447,032)
------------ ------------ ------------ ------------
Net increase 347,202 $ 5,244,481 399,762 $ 5,914,656
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
</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.
15 Oppenheimer Global Growth & Income Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
(CONTINUED)
- -------------------------------------------------------------------------------
3. UNREALIZED GAINS AND At March 31, 1997, net unrealized
LOSSES ON INVESTMENTS appreciation on investments of $20,208,650
was composed of gross appreciation of
$23,550,235, and gross depreciation of
$3,341,585.
- -------------------------------------------------------------------------------
4. MANAGEMENT FEES Management fees paid to the Manager were
AND OTHER TRANSACTIONS in accordance with the investment advisory
WITH AFFILIATES 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.
For the six months ended March 31,
1997, commissions (sales charges paid by
investors) on sales of Class A shares totaled
$240,784, of which $83,385 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 $169,632
and $40,720, of which $10,833 and $1,795,
respectively, was paid to an affiliated
broker/dealer. During the six months ended
March 31, 1997, OFDI received contingent
deferred sales charges of $9,842 and $1,824,
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. Reimburse
ment 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 six months ended March 31, 1997, OFDI
paid $11,003 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. OFDI retained $48,547 as
compensation for Class B sales commissions
and service fee advances, as well as
financing costs. 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. As
of March 31, 1997, OFDI had incurred
unreimbursed expenses of $403,967 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. During the six
months ended March 31, 1997, OFDI paid $6,150
to an affiliated broker/dealer as
reimbursement for Class C personal service
and maintenance expenses and retained $44,748
as reimbursement for Class C sales
commissions and service fee advances, as well
as financing costs. 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. As of March 31, 1997, OFDI had
incurred unreimbursed expenses of $369,783
for Class C.
16 Oppenheimer Global Growth & Income Fund
<PAGE>
- -------------------------------------------------------------------------------
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 March 31, 1997, 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 DATES (000S) MARCH 31, 1997 APPRECIATION DEPRECIATION
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
British Pound (GBP) 4/3/97 507 GBP $ 830,891 $ 4,943 $ --
French Franc (FRF) 4/30/97 29,789 FRF 5,317,965 17,883 --
German Deutsche
Mark (DEM) 4/3/97 463 DEM 277,804 964 --
------------- --------- ---------
$ 6,426,660 23,790 --
------------- --------- ---------
------------- --------- ---------
CONTRACTS TO SELL
- ----------------------------------------------------------------------------------------------
British Pound (GBP) 4/5/97--4/7/97 2,609 GBP $ 2,622,340 $ -- $ 13,584
French Franc (FRF) 4/1/97 5,748 FRF 1,021,153 4,338 --
------------- --------- ---------
$ 3,643,493 4,338 13,584
------------- --------- ---------
------------- --------- ---------
Total Appreciation and
Depreciation $28,128 $13,584
--------- ---------
--------- ---------
</TABLE>
- -------------------------------------------------------------------------------
6. ILLIQUID AND At March 31, 1997, investments in securities
RESTRICTED SECURITIES included issues that are illiquid or
restricted. Restricted securities are often
purchased in private placement transactions,
are not registered under the Securities Act
of 1933, may have contractual restrictions on
resale, and are valued under methods approved
by the Board of Trustees as reflecting fair
value. A security may be considered illiquid
if it lacks a readily-available market or if
its valuation has not changed for a certain
period of time. The Fund intends to invest no
more than 10% of its net assets (determined
at the time of purchase and reviewed from
time to time) in illiquid or restricted
securities. Certain restricted securities,
eligible for resale to qualified
institutional investors, are not subject to
that limit. The aggregate value of illiquid
or restricted securities subject to this
limitation at March 31, 1997 was $1,259,770,
which represents 0.64% of the Fund's net
assets.
17 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
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 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, are not insured by
the FDIC or any other agency, and involve
investment risks, including possible loss of
the principal amount invested.
18 Oppenheimer Global Growth & Income Fund
<PAGE>
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 $60
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.
- -------------------------------------------------------------------------------
REAL ASSET FUNDS Real Asset Fund Gold & Special
Minerals Fund
- -------------------------------------------------------------------------------
STOCK FUNDS Developing Markets Growth Fund
Fund
Global Emerging Growth Global Fund
Fund
Enterprise Fund(2) Quest Global Value
Fund
International Growth Disciplined Value
Fund Fund
Discovery Fund Oppenheimer Fund
Quest Small Cap Value Value Stock Fund
Fund
Capital Appreciation Quest Value Fund
Fund(3)
Quest Capital Value
Fund
- -------------------------------------------------------------------------------
STOCK & BOND FUNDS Main Street Income Equity Income Fund
& Growth Fund
Quest Opportunity Disciplined
Value Fund Allocation Fund
Total Return Fund Multiple Strategies
Fund(4)
Quest Growth & Income Strategic Income &
Value Fund Growth Fund
Global Growth & Income Bond Fund for Growth
Fund
- -------------------------------------------------------------------------------
BOND FUNDS International Bond Bond Fund
Fund
High Yield Fund U.S. Government Trust
Champion Income Fund Limited-Term
Government Fund
Strategic Income Fund
- -------------------------------------------------------------------------------
MUNICIPAL FUNDS California Municipal Insured Municipal
Fund(5) Fund
Florida Intermediate Municipal
Municipal Fund Fund(5)
New Jersey Municipal
Fund(5)
New York Municipal Rochester Division
Fund(5)
Pennsylvania Municipal Rochester Fund
Fund(5) Municipals
Municipal Bond Fund Limited Term New York
Municipal Fund
- -------------------------------------------------------------------------------
MONEY MARKET FUNDS(6) 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. On 12/18/96, the Fund's name was changed
from "Target Fund."
4. On 3/6/97, the Fund's name was changed
from "Asset Allocation Fund."
5. Available only to investors in certain
states.
6. 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 1997 OppenheimerFunds, Inc. All
rights reserved.
19 Oppenheimer Global Growth & Income Fund
<PAGE>
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
"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.
[PHOTO]
[CAPTION] Customer Service Representative
OppenheimerFunds Services
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[LOGO]
OppenheimerFunds Distributor, Inc.
P.O. Box 5270
Denver, CO 80217-5270
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Bulk Rate
U.S. Postage
PAID
Permit No. 469
Denver, CO
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