<PAGE> 1
ANNUAL REPORT SEPTEMBER 30, 1997
OPPENHEIMER
Global Growth
& Income Fund
[PHOTO]
[OPPENHEIMERFUNDS LOGO]
THE RIGHT WAY TO INVEST
<PAGE> 2
CONTENTS
3 President's Letter
4 Fund Performance
6 An Interview with
the Fund's
Managers
10 Statement of
Investments
14 Statement of Assets &
Liabilities
16 Statement of
Operations
17 Statements of
Changes in
Net Assets
18 Financial Highlights
20 Notes to Financial
Statements
28 Independent
Auditors' Report
29 Federal Income
Tax Information
30 Officers & Trustees
32 Information &
Services
REPORT HIGHLIGHTS
- -------------------------------------------------------------------------------
- - #3 RANKING OUT OF 81 FUNDS: Based on the Fund's strong overall performance,
Lipper Analytical Services ranked the Fund's Class A shares as third out of 81
global flexible portfolio funds for the one-year period ending September 30,
1997.(1)
- - DIVERSIFICATION: In this Fund, shareholders have the advantage of owning a
variety of asset classes: growth stocks, dividend paying stocks, bonds, U.S.
investments and foreign holdings. This diversification, and professional
management, may help to offset the additional risks and expenses associated
with international investing.
- - WE BOUGHT BONDS during periods of the year in which interest rates were
peaking, a strategy that helped contribute to our strong overall performance.
AVG ANNUAL TOTAL RETURNS
For the 1-year period ended
9/30/97 without sales charges(2)
CLASS A
38.83%
CLASS B
37.69%
CLASS C
37.74%
Total returns include changes 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. Source: Lipper Analytical Services, Inc., 9/30/97. Based on the comparisons
between changes in net asset value without considering sales charges, with
dividends and capital gains distributions of the Fund's Class A shares
reinvested. For the period ended 9/30/97, the Fund's Class A shares were ranked
3 out of 81 (1-year) and 2 out of 14 (5-year) among global flexible portfolio
funds. Lipper performance is based on total return and does not take sales
charges into consideration.
2. Includes changes in net asset value per share without deducting any sales
charges. Such performance would have been lower if sales charges were taken
into account.
2 Oppenheimer Global Growth & Income Fund
<PAGE> 3
[PHOTO]
BRIDGET A. MACASKILL
President
Oppenheimer Global Growth & Income Fund
DEAR SHAREHOLDER,
- -------------------------------------------------------------------------------
As you are no doubt aware, during the end of October and early November many
stock markets around the world recorded their all-time largest point declines,
followed by subsequent gains and continued volatility, leaving investors
uncertain about what would occur next.
To put those events in focus, let's look at a "snapshot" of the two-week
time period. Sharp declines in the overseas stock markets, particularly in
Asia, triggered a series of sell-offs throughout Europe, Latin America and the
United States. In response, the U.S. stock market, as measured by the Dow Jones
Industrial Average, dropped 554 points on October 27, its largest point decline
in history. However, almost as quickly, the U.S. stock market bounced back over
the succeeding few days, regaining nearly all of its losses.
While no one could have predicted the timing or extent of these
fluctuations, many analysts, including our fund managers here at
OppenheimerFunds, had warned of a correction for several months. We believed
that U.S. valuations were too high, stocks were expensive relative to bonds,
recent corporate earnings were somewhat disappointing and that Federal Reserve
Chairman Alan Greenspan could possibly seek a short-term interest rate hike.
As a result, when October 27 arrived, our equity funds held above-average
cash positions relative to many of our competitors. Not only did our higher
cash levels serve as a protection, they also enabled us to buy the stocks of
numerous excellent companies that were selling at more reasonable prices. In
addition, our international and global funds were not as impacted because they
weren't heavily invested in Southeast Asia and Japan. Finally, on the
fixed-income side, our bond funds were generally characterized by
longer-than-normal durations, which allowed us to lock in higher yields.
In conclusion, many of our funds experienced relatively strong performance
during the October-November market shake-ups. We'd like to take this
opportunity to remind shareholders that stock market volatility is a normal and
expected part of the business cycle. As Alan Greenspan suggested, in years to
come this period will likely be remembered as a positive change for a market
that was growing too quickly.
For frequent market updates, please visit our website at
WWW.OPPENHEIMERFUNDS.COM or call 1-800-835-3104 to listen to our recorded
messages. In the meantime, 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
November 7, 1997
3 Oppenheimer Global Growth & Income Fund
<PAGE> 4
AVG ANNUAL TOTAL RETURNS
For the Period Ended 9/30/97(1)
<TABLE>
<CAPTION>
CLASS A
Since
1 year 5 year Inception
<S> <C> <C>
30.85% 17.04% 13.52%
</TABLE>
<TABLE>
<CAPTION>
CLASS B
Since
1 year 5 year Inception
<S> <C> <C>
32.69% N/A 24.24%
</TABLE>
<TABLE>
<CAPTION>
CLASS C
Since
1 year 5 year Inception
<S> <C> <C>
36.74% N/A 16.14
</TABLE>
CUMULATIVE TOTAL RETURN
For the Period Ended 9/30/97(1)
<TABLE>
<CAPTION>
CLASS A
5 year
<S> <C>
119.58% $21,958(4)
</TABLE>
PERFORMANCE UPDATE
- -------------------------------------------------------------------------------
Oppenheimer Global Growth & Income Fund performed very well during the past
year, one of the best funds in its category. In fact, for the one-year period
ended September 30, 1997, the Fund's Class A shares were ranked third out of 81
global flexible portfolio funds by Lipper Analytical Services.(2) The Fund's
Class A shares had an average annual total return, without sales charges, of
38.83% for the one-year period ended September 30, 1997.(3)
<TABLE>
<CAPTION>
GROWTH OF $10,000
Over five years
(without sales charges)(4)
Oppenheimer Global Growth &
MSCI World Stock Index Income Fund Class A shares
<S> <C>
$ 10,000 $ 10,000
9,923.73 9,855.95
10,723.6 10,510
11,324.3 11,047.3
11,806.3 12,100.4
11,947.2 13,747.9
11,972 13,222.1
12,280.5 13,096.6
12,492.4 13,789.7
12,348.3 13,102
12,869 13,258.3
13,360.9 14,126.1
14,049.2 14,814.2
14,657.8 15,378.3
15,194.8 15,821.2
15,574.5 16,309.1
15,718.9 16,781.1
16,376.1 17,733.3
16,362.5 18,939.6
18,759.3 20,560.8
19,233.3 23,298
</TABLE>
1. Total returns include changes in share price and reinvestment of dividends
and capital gains distributions in a hypothetical investment for the periods
shown. Class A returns include the current maximum initial sales charge of
5.75%. Class A shares were first publicly offered on 10/22/90. Class B returns
include the applicable contingent deferred sales charge of 5% (1-year) and 4%
(since inception on 10/10/95). Class C returns for the 1-year result include
the contingent deferred sales charge of 1%. Class C shares have an inception
date of 12/1/93. An explanation of the different performance calculations is in
the Fund's prospectus. Class B and C shares are subject to an annual 0.75%
asset-based sales charge and 0.25% distribution fee, and Class A shares are
subject to an annual asset-based sales charge not to exceed 0.25%.
2. Source: Lipper Analytical Services, Inc., 9/30/97. Based on the comparisons
between changes in net asset value without considering sales charges, with
dividends and capital gains distributions of the Fund's Class A shares
reinvested. For the period ended 9/30/97, the Fund's Class A shares were
ranked 3 out of 81 (1-year) and 2 out of 14 (5-year) among global flexible
portfolio funds. Lipper performance is based on total return and does not take
sales charges into consideration.
4 Oppenheimer Global Growth & Income Fund
<PAGE> 5
<TABLE>
<CAPTION>
INDUSTRY ALLOCATION
(% of Common Stock)(5)
<S> <C>
Banks 18.3%
Electronics 14.6
Beverages 12.8
Autos & Housing 9.1
Healthcare 8.5
Telecommunications/
Technology 7.9
Leisure &
Entertainment 6.5
Household Goods 5.4
Food 4.6
</TABLE>
PORTFOLIO REVIEW
- -------------------------------------------------------------------------------
Oppenheimer Global Growth & Income Fund is for investors looking for investment
opportunities worldwide with moderate market risk.
WHAT WE LOOK FOR
- - Stocks of companies around the world that stand to benefit from one or more
KEY GLOBAL GROWTH TRENDS, including efficiency-enhancing technology.
- - U.S. and foreign bonds that can help CUSHION THE EFFECTS OF FLUCTUATIONS in
the world's stock markets.
<TABLE>
<CAPTION>
TOP 10 STOCK HOLDINGS(5)
...............................................
<S> <C>
Porsche AG, Preference 9.1%
...............................................
National Semiconductor Corp. 8.0
...............................................
QUALCOMM, Inc. 7.9
...............................................
Coherent, Inc. 6.6
...............................................
Nintendo Co. Ltd. 5.8
...............................................
Allied Domecq plc 5.7
...............................................
Cie Financiere de Paribas 5.3
...............................................
Wella AG, Preference 4.7
...............................................
U.S. Surgical Corp. 4.1
...............................................
Banco Bradesco SA,
Preference 4.0
...............................................
</TABLE>
<TABLE>
<CAPTION>
10 LARGEST COUNTRY HOLDINGS(5)
................................................
<S> <C>
U.S. 48.5%
................................................
Great Britain 14.0
................................................
Germany 10.3
................................................
France 9.7
................................................
Japan 4.3
................................................
India 3.6
................................................
Brazil 2.9
................................................
Italy 2.2
................................................
Singapore 1.6
................................................
Mexico 1.4
................................................
</TABLE>
3. Includes change in net asset value per share without deducting any sales
charges. Such performance would have been lower if sales charges were taken
into account.
4. Results of a hypothetical $10,000 investment in Class A shares on September
30, 1992. The Morgan Stanley Capital International World Index is an unmanaged
broad-based index of foreign and domestic stock including reinvestment of
dividends, and cannot be purchased directly by investors.
5. Portfolio is subject to change. Percentages are as of September 30, 1997 and
are based on total market value of stock holdings.
5 Oppenheimer Global Growth & Income Fund
<PAGE> 6
"BY OWNING ZERO COUPON BONDS, WE ARE MAKING A STRONG COMMITMENT TO THE OPINION
THAT INTEREST RATES ARE TRENDING DOWN."
AN INTERVIEW WITH YOUR FUND'S MANAGERS
- -------------------------------------------------------------------------------
HOW WOULD YOU DESCRIBE THE FUND'S PERFORMANCE OVER THE YEAR?
Oppenheimer Global Growth & Income Fund was one of the best funds in its
category. The Fund's Class A shares provided an average annual total return,
without sales charges, of 38.83% for the one-year period ended September 30,
1997.(1)
WITHIN YOUR BOND PORTFOLIO, WHY DID YOU INVEST IN ZERO COUPON BONDS?
Zero coupon Treasury bonds sell at a steep discount, but pay no interest over
the life of the bonds. If you assume that a bond will pay you $1,000 at
maturity, 30 years from now, then the current value of the bond is an amount of
money that, when reinvested for 30 years, equals $1,000. When interest rates
fall, the assumed reinvestment rate falls, and the current value of the bond
must rise. Because the investment time horizon is so long, a small change in
interest rates makes a big difference in the bond's current value. By owning
zero coupon bonds, we are making a strong commitment to the opinion that
interest rates are trending down.
Part of our strategy is also a hedge against an economic recession, an
event which could hurt the equity portion of the Fund. Such an outcome, though
negative for stocks, would be positive for zero coupon Treasury bondholders,
since interest rates typically fall during a recession.
Another reason why the Fund performed well is that we bought a large
amount of bonds during periods of the year in which interest rates were
peaking, thus achieving price appreciation when interest rates came down in the
summer and early fall.
1. Includes changes in net asset value per share without deducting any sales
charges. Such performance would have been lower if sales charges were taken
into account.
6 Oppenheimer Global Growth & Income Fund
<PAGE> 7
[PHOTO]
PORTFOLIO MANAGEMENT TEAM (L TO R)
Frank Jennings
(Fund Manager)
William Wilby
George Evans
MOVING TO EQUITIES, WHICH INVESTMENTS PERFORMED STRONGLY DURING THE FISCAL
YEAR?
In this Fund, our goal is to assemble a diversified portfolio of stocks which
have the potential to appreciate substantially over the next few years. While
international investing is subject to additional expenses and risks, we
continued to find strong investments. A good example is Porsche, the German car
maker, whose shares more than doubled during the period. The company recently
broadened its market with a $40,000 model, which is Porsche's version of a mass
market car. As a result, Porsche can't keep up with the demand for this new
model. We believe that the company's new-found profitability could continue for
several years.
Like Porsche, Nintendo has launched a new product--a three-dimensional
video game, based on the latest semiconductor technology. Nintendo is extremely
profitable and has a very strong balance sheet; it has a significant cash
position and relatively little debt. Because the company is based in Japan, the
weakening yen is also helping the company export its products throughout the
world.
A third successful stock in the portfolio is National Semiconductor, the
world's leading manufacturer of analog and mixed-signal semiconductors. The
human experience is an analog phenomenon--where there are gradations of color,
of feeling. In contrast, computers think digitally, in on-off switches.
There's no shade of on or off. A mixed-signal semiconductor is the interface
between the human world of vision and hearing and the computer world of on-off
switches. This is one of the most dynamically growing areas of the
semiconductor business.
7 Oppenheimer Global Growth & Income Fund
<PAGE> 8
"IN EUROPE, WE THINK THE INVESTING ENVIRONMENT IS GETTING BETTER AS INTEREST
RATES FALL AND THE REGION MOVES TOWARDS A SINGLE CURRENCY."
AN INTERVIEW WITH YOUR FUND'S MANAGERS
- -------------------------------------------------------------------------------
WHICH STOCKS DID NOT WORK OUT WELL DURING THE YEAR?
The food and beverage area has lagged. For instance, Allied Domecq, a
conglomerate that owns many U.S. companies including Dunkin Donuts and
Baskin-Robbins, continues to report disappointing earnings. However, while
we've been waiting for profits to improve, the company has been paying a 7%
dividend. Therefore, the stock fits nicely into the income portion of the
portfolio.
HOW DOES YOUR OUTLOOK IN A GIVEN REGION OF THE WORLD AFFECT YOUR STOCK
SELECTION?
Although we employ a "bottom-up" approach to stock selection, the broader
macroeconomic environment should be improving, or at least steady. We don't
want to buy into an industry or country where we think the environment is
deteriorating. In Europe, where we own a majority of our non-U.S. stocks, we
think that the investing environment is getting better, as interest rates fall
and the region moves towards a single currency.
WHAT IS YOUR OUTLOOK FOR THE FUND?
We believe that the outlook for the Fund remains very positive. We have the
advantage of owning a variety of asset classes: growth stocks, dividend-paying
stocks, bonds, U.S. investments and foreign holdings. Because we are able to
invest in companies throughout the world, the Fund is well-positioned to take
advantage of these opportunities.
8 Oppenheimer Global Growth & Income Fund
<PAGE> 9
FINANCIALS
- -------------------------------------------------------------------------------
9 Oppenheimer Global Growth & Income Fund
<PAGE> 10
STATEMENT OF INVESTMENTS September 30, 1997
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
====================================================================================
<S> <C> <C>
COMMON STOCKS--76.3%
- ------------------------------------------------------------------------------------
CONSUMER CYCLICALS--13.0%
- ------------------------------------------------------------------------------------
AUTOS & HOUSING--6.9%
Porsche AG, Preference 11,000 $19,058,005
- ------------------------------------------------------------------------------------
LEISURE & ENTERTAINMENT--5.0%
Cedar Fair LP 30,000 1,432,500
- ------------------------------------------------------------------------------------
Nintendo Co. Ltd. 130,000 12,167,643
------------
13,600,143
- ------------------------------------------------------------------------------------
RETAIL: SPECIALTY--1.1%
Christies International plc 700,000 2,917,416
- ------------------------------------------------------------------------------------
CONSUMER NON-CYCLICALS--23.7%
- ------------------------------------------------------------------------------------
BEVERAGES--9.7%
Allied Domecq plc 1,500,000 11,909,550
- ------------------------------------------------------------------------------------
Cadbury Schweppes plc 600,000 5,786,370
- ------------------------------------------------------------------------------------
Guinness plc 500,000 4,721,012
- ------------------------------------------------------------------------------------
Remy Cointreau 225,000 4,361,778
------------
26,778,710
- ------------------------------------------------------------------------------------
FOOD--3.5%
Dairy Farm International Holdings Ltd. 4,765,000 4,526,750
- ------------------------------------------------------------------------------------
Great Atlantic & Pacific Tea Co., Inc. (The) 160,000 5,080,000
------------
9,606,750
- ------------------------------------------------------------------------------------
HEALTHCARE/DRUGS--3.3%
Genzyme Corp. (General Division)(1) 50,000 1,487,500
- ------------------------------------------------------------------------------------
Gilead Sciences, Inc.(1) 70,000 3,106,250
- ------------------------------------------------------------------------------------
Glaxo (India) Ltd. 110,000 1,339,644
- ------------------------------------------------------------------------------------
Neurogen Corp.(1) 120,000 3,240,000
------------
9,173,394
- ------------------------------------------------------------------------------------
HEALTHCARE/SUPPLIES & SERVICES--3.1%
United States Surgical Corp. 295,535 8,625,928
- ------------------------------------------------------------------------------------
HOUSEHOLD GOODS--4.1%
Pond's (India) Ltd. 26,000 1,365,411
- ------------------------------------------------------------------------------------
Wella AG, Preference 13,000 9,914,579
------------
11,279,990
</TABLE>
10 Oppenheimer Global Growth & Income Fund
<PAGE> 11
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCIAL--16.7%
- --------------------------------------------------------------------------------------------------
BANKS--14.0%
Banca di Roma(1) 6,000,000 $ 6,209,302
- --------------------------------------------------------------------------------------------------
Banco Bradesco SA, Preference 800,618,073 8,330,789
- --------------------------------------------------------------------------------------------------
Cie Financiere de Paribas, Series A 150,000 11,125,694
- --------------------------------------------------------------------------------------------------
Grupo Financiero Banorte SA de CV, Series B(1) 2,000,000 3,859,514
- --------------------------------------------------------------------------------------------------
Merita Ltd., Cl. A 600,000 2,848,803
- --------------------------------------------------------------------------------------------------
Societe Generale 41,570 6,019,444
------------
38,393,546
- --------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL--2.7%
Industrial Credit & Investment Corp. of India Ltd. 3,000,000 7,340,327
- --------------------------------------------------------------------------------------------------
TECHNOLOGY--22.9%
- --------------------------------------------------------------------------------------------------
COMPUTER HARDWARE--2.8%
International Business Machines Corp. 72,000 7,627,500
- --------------------------------------------------------------------------------------------------
COMPUTER SOFTWARE--3.0%
Cap Gemini SA 90,000 5,840,990
- --------------------------------------------------------------------------------------------------
JBA Holdings plc 171,000 2,347,987
------------
8,188,977
- --------------------------------------------------------------------------------------------------
ELECTRONICS--11.1%
Coherent, Inc.(1) 250,000 13,843,750
- --------------------------------------------------------------------------------------------------
National Semiconductor Corp.(1) 410,000 16,810,000
------------
30,653,750
- --------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS-TECHNOLOGY--6.0%
QUALCOMM, Inc.(1) 260,000 16,558,750
------------
Total Common Stocks (Cost $159,708,502) 209,803,186
==================================================================================================
PREFERRED STOCKS--4.3%
- --------------------------------------------------------------------------------------------------
Reckitt & Coleman Capital, 9.50% Cv. (Cost $9,969,238) 3,600,000 11,776,280
UNITS
==================================================================================================
RIGHTS, WARRANTS AND CERTIFICATES--0.0%
- --------------------------------------------------------------------------------------------------
American Satellite Network, Inc. Wts., Exp. 6/99 (Cost $0) 3,875 --
</TABLE>
11 Oppenheimer Global Growth & Income Fund
<PAGE> 12
STATEMENT OF INVESTMENTS (Continued)
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT SEE NOTE 1
==========================================================================================================
<S> <C> <C>
U.S. GOVERNMENT OBLIGATIONS--18.6%
- ----------------------------------------------------------------------------------------------------------
U.S. Treasury Bonds, STRIPS, Zero Coupon:
7.464%, 11/15/18(2) $ 5,000,000 $ 1,268,539
6.902%, 11/15/22(2) 36,000,000 7,095,921
7.41%, 11/15/22(2) 7,000,000 1,376,396
7.243%, 2/15/22(2) 20,000,000 4,118,500
7.008%, 2/15/24(2) 20,000,000 3,664,139
6.70%, 2/15/26(2) 20,000,000 3,329,538
6.497%, 2/15/27(2) 90,000,000 14,389,650
7.028%, 8/15/20(2) 25,000,000 5,648,998
7.299%, 8/15/22(2) 20,000,000 3,996,817
7.305%, 8/15/23(2) 7,000,000 1,331,021
6.693%, 8/15/25(2) 30,000,000 5,099,336
-------------
Total U.S. Government Obligations (Cost $46,796,230) 51,318,855
==========================================================================================================
NON-CONVERTIBLE CORPORATE BONDS AND NOTES--0.8%
- ----------------------------------------------------------------------------------------------------------
AMC Entertainment, Inc., 12.625% Gtd. Sr. Sub. Nts., 8/1/02(3) 500,000 542,500
- ----------------------------------------------------------------------------------------------------------
Matahari International Finance Co. BV, 11.25% Gtd. Nts., 3/15/01 1,500,000 1,543,830
-------------
Total Non-Convertible Corporate Bonds and Notes (Cost $2,190,000) 2,086,330
==========================================================================================================
REPURCHASE AGREEMENTS--2.7%
- ----------------------------------------------------------------------------------------------------------
Repurchase agreement with First Chicago Capital Markets,
6.125%, dated 9/30/97, to be repurchased at $7,501,276 on
10/1/97, collateralized by U.S. Treasury Bonds, 6.875%-12%,
5/15/05-8/15/25, with a value of $5,888,583, and U.S. Treasury
Nts., 5.875%-7.25%, 8/15/98-5/15/04, with a value of $1,765,953
(Cost $7,500,000) 7,500,000 7,500,000
- ----------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $226,163,970) 102.7% 282,484,651
- ----------------------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS (2.7) (7,418,734)
------------ -------------
NET ASSETS 100.0% $275,065,917
============ =============
</TABLE>
12 Oppenheimer Global Growth & Income Fund
<PAGE> 13
- --------------------------------------------------------------------------------
Distribution of investments by country of issue, as a percentage of total
investments at value, is as follows:
<TABLE>
<CAPTION>
COUNTRY MARKET VALUE PERCENT
- -------------------------------------------------------------------------------
<S> <C> <C>
United States $137,173,534 48.5%
- -------------------------------------------------------------------------------
Great Britain 39,458,614 14.0
- -------------------------------------------------------------------------------
Germany 28,972,583 10.3
- -------------------------------------------------------------------------------
France 27,347,906 9.7
- -------------------------------------------------------------------------------
Japan 12,167,643 4.3
- -------------------------------------------------------------------------------
India 10,045,383 3.6
- -------------------------------------------------------------------------------
Brazil 8,330,789 2.9
- -------------------------------------------------------------------------------
Italy 6,209,302 2.2
- -------------------------------------------------------------------------------
Singapore 4,526,750 1.6
- -------------------------------------------------------------------------------
Mexico 3,859,514 1.4
- -------------------------------------------------------------------------------
Finland 2,848,803 1.0
- -------------------------------------------------------------------------------
The Netherlands 1,543,830 0.5
------------ -----
Total $282,484,651 100.0%
============ =====
</TABLE>
1. Non-income producing security.
2. For zero coupon bonds, the interest rate shown is the effective yield on the
date of purchase.
3. Identifies issues considered to be illiquid or restricted--See Note 6 of
Notes to Financial Statements.
See accompanying Notes to Financial Statements.
13 Oppenheimer Global Growth & Income Fund
<PAGE> 14
STATEMENT OF ASSETS AND LIABILITIES September 30, 1997
<TABLE>
<S> <C>
==================================================================================================
ASSETS
Investments, at value (cost $226,163,970)--see accompanying statement $282,484,651
- --------------------------------------------------------------------------------------------------
Receivables:
Investments sold 5,074,861
Closed forward foreign currency exchange contracts 1,485,189
Interest and dividends 1,130,275
Shares of beneficial interest sold 1,127,459
- --------------------------------------------------------------------------------------------------
Other 5,889
------------
Total assets 291,308,324
==================================================================================================
LIABILITIES
Bank overdraft 4,449,416
- --------------------------------------------------------------------------------------------------
Unrealized depreciation on forward foreign currency
exchange contracts--Note 5 26,576
- --------------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 9,852,091
Shares of beneficial interest redeemed 1,195,096
Closed forward foreign currency exchange contracts 302,078
Distribution and service plan fees 153,088
Trustees' fees--Note 1 88,068
Transfer and shareholder servicing agent fees 33,908
Other 142,086
------------
Total liabilities 16,242,407
==================================================================================================
NET ASSETS $275,065,917
============
==================================================================================================
COMPOSITION OF NET ASSETS
Paid-in capital $202,134,246
- --------------------------------------------------------------------------------------------------
Undistributed net investment income 4,780,876
- --------------------------------------------------------------------------------------------------
Accumulated net realized gain on investments and
foreign currency transactions 11,849,830
- --------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of
assets and liabilities denominated in foreign currencies--Note 3 56,300,965
------------
Net assets $275,065,917
============
</TABLE>
14 Oppenheimer Global Growth & Income Fund
<PAGE> 15
<TABLE>
<S> <C>
===========================================================================================
NET ASSET VALUE PER SHARE
Class A Shares:
Net asset value and redemption price per share (based on net assets
of $181,716,279 and 9,388,596 shares of beneficial interest outstanding) $19.36
Maximum offering price per share (net asset value plus sales charge
of 5.75% of offering price) $20.54
- -------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net assets
of $37,071,370 and 1,924,286 shares of beneficial interest outstanding) $19.27
- -------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net assets
of $56,278,268 and 2,922,787 shares of beneficial interest outstanding) $19.26
See accompanying Notes to Financial Statements.
</TABLE>
15 Oppenheimer Global Growth & Income Fund
<PAGE> 16
STATEMENT OF OPERATIONS For the Year Ended September 30, 1997
<TABLE>
<S> <C>
============================================================================================================
INVESTMENT INCOME
Interest $ 4,380,087
- ------------------------------------------------------------------------------------------------------------
Dividends (net of foreign withholding taxes of $184,108) 3,513,378
------------
Total income 7,893,465
============================================================================================================
EXPENSES
Management fees--Note 4 1,615,565
- ------------------------------------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 343,873
Class B 173,886
Class C 432,789
- ------------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 401,994
- ------------------------------------------------------------------------------------------------------------
Shareholder reports 113,224
- ------------------------------------------------------------------------------------------------------------
Custodian fees and expenses 94,583
- ------------------------------------------------------------------------------------------------------------
Trustees' fees and expenses--Note 1 59,495
- ------------------------------------------------------------------------------------------------------------
Legal and auditing fees 32,429
- ------------------------------------------------------------------------------------------------------------
Registration and filing fees 11,964
- ------------------------------------------------------------------------------------------------------------
Other 61,057
------------
Total expenses 3,340,859
============================================================================================================
NET INVESTMENT INCOME 4,552,606
============================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain on:
Investments 15,880,162
Foreign currency transactions 1,244,907
------------
Net realized gain 17,125,069
- ------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments 50,947,987
Translation of assets and liabilities denominated in foreign currencies (3,564,904)
------------
Net change 47,383,083
------------
Net realized and unrealized gain 64,508,152
============================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $69,060,758
============
</TABLE>
See accompanying Notes to Financial Statements.
16 Oppenheimer Global Growth & Income Fund
<PAGE> 17
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Ended September 30,
1997 1996
=================================================================================================================
<S> <C> <C>
OPERATIONS
Net investment income $ 4,552,606 $ 3,538,878
- -----------------------------------------------------------------------------------------------------------------
Net realized gain 17,125,069 18,140,523
- -----------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation 47,383,083 (3,287,320)
------------ ------------
Net increase in net assets resulting from operations 69,060,758 18,392,081
=================================================================================================================
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income:
Class A (3,458,736) (3,012,171)
Class B (340,317) (89,925)
Class C (732,211) (615,071)
- -----------------------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (10,399,198) (5,806,943)
Class B (812,462) (48,484)
Class C (3,233,192) (1,559,313)
=================================================================================================================
BENEFICIAL INTEREST TRANSACTIONS
Net increase in net assets resulting from beneficial
interest transactions--Note 2:
Class A 27,284,959 1,387,903
Class B 23,583,896 7,852,376
Class C 10,061,688 5,914,656
=================================================================================================================
NET ASSETS
Total increase 111,015,185 22,415,109
- -----------------------------------------------------------------------------------------------------------------
Beginning of period 164,050,732 141,635,623
------------ ------------
End of period [including undistributed (overdistributed) net
investment income of $4,780,876 and $(82,568), respectively] $275,065,917 $164,050,732
============ ============
</TABLE>
See accompanying Notes to Financial Statements.
17 Oppenheimer Global Growth & Income Fund
<PAGE> 18
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A
-------------------------------------------
YEAR ENDED SEPTEMBER 30,
1997 1996 1995 1994
========================================================================================
<S> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $15.62 $14.98 $15.21 $14.09
- ----------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .40 .47 .45 .33
Net realized and
unrealized gain (loss) 5.12 1.40 .54 1.62
-------- -------- -------- --------
Total income (loss) from
investment operations 5.52 1.87 .99 1.95
- ----------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net
investment income (.40) (.40) (.40) (.35)
Distributions from net realized gain (1.38) (.83) (.82) (.48)
-------- -------- -------- --------
Total dividends and distributions
to shareholders (1.78) (1.23) (1.22) (.83)
- ----------------------------------------------------------------------------------------
Net asset value, end of period $19.36 $15.62 $14.98 $15.21
======== ======== ======== ========
========================================================================================
TOTAL RETURN, AT NET ASSET VALUE(3) 38.83% 13.28% 7.43% 13.96%
========================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $181,716 $120,214 $113,341 $124,017
- ----------------------------------------------------------------------------------------
Average net assets (in thousands) $141,582 $115,186 $120,267 $117,164
- ----------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 2.47% 2.65% 3.09% 2.44%
Expenses 1.43% 1.52% 1.63% 1.49%
- ----------------------------------------------------------------------------------------
Portfolio turnover rate(5) 90.5% 207.8% 135.2% 87.4%
Average brokerage commission rate(6) $0.0015 $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.
18 Oppenheimer Global Growth & Income Fund
<PAGE> 19
<TABLE>
<CAPTION>
CLASS B CLASS C
- ------- ----------------------- --------------------------------------
YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30,
1993 1997 1996(2) 1997 1996 1995 1994(1)
=================================================================================
<S> <C> <C> <C> <C> <C> <C>
$11.91 $15.57 $14.72 $15.55 $14.92 $15.17 $14.85
- ---------------------------------------------------------------------------------
.29 .30 .36 .28 .35 .35 .22
2.17 5.06 1.63 5.08 1.40 .53 .87
- -------- -------- -------- -------- -------- -------- --------
2.46 5.36 1.99 5.36 1.75 .88 1.09
- ---------------------------------------------------------------------------------
(.17) (.28) (.31) (.27) (.29) (.31) (.29)
(.11) (1.38) (.83) (1.38) (.83) (.82) (.48)
- -------- -------- -------- -------- -------- -------- --------
(.28) (1.66) (1.14) (1.65) (1.12) (1.13) (.77)
- ---------------------------------------------------------------------------------
$14.09 $19.27 $15.57 $19.26 $15.55 $14.92 $15.17
======== ======== ======== ======== ======== ======== ========
=================================================================================
21.00% 37.69% 14.33% 37.74% 12.45% 6.61% 7.41%
=================================================================================
$86,019 $37,071 $8,131 $56,278 $35,706 $28,295 $17,008
- ---------------------------------------------------------------------------------
$59,951 $17,474 $3,815 $43,338 $31,371 $22,211 $ 7,896
- ---------------------------------------------------------------------------------
2.68% 1.77% 1.64%(4) 1.71% 1.87% 2.36% 1.85%(4)
1.56% 2.15% 2.28%(4) 2.18% 2.28% 2.39% 2.44%(4)
- ---------------------------------------------------------------------------------
90.6% 90.5% 207.8% 90.5% 207.8% 135.2% 87.4%
-- $0.0015 $0.0004 $0.0015 $0.0004 -- --
</TABLE>
5. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities
owned during the period. Securities with a maturity or expiration date at the
time of acquisition of one year or less are excluded from the calculation.
Purchases and sales of investment securities (excluding short-term securities)
for the period ended September 30, 1997 were $229,084,992 and $179,213,243,
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. Generally, non-U.S. commissions are lower than U.S.
commissions when expressed as cents per share but higher when expressed as a
percentage of transactions because of the lower per-share prices of many
non-U.S. securities.
See accompanying Notes to Financial Statements.
19 Oppenheimer Global Growth & Income Fund
<PAGE> 20
NOTES TO FINANCIAL STATEMENTS
===============================================================================
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Global Growth & Income Fund (the Fund) is registered under the
Investment Company Act of 1940, as amended, as a diversified, open-end
management investment company. The Fund's investment objective is to seek
capital appreciation consistent with preservation of principal while providing
current income by investing primarily in common stocks and fixed income
securities of U.S. and foreign companies. 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
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 that particular class and exclusive
voting rights with respect to matters affecting that 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 an
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.
20 Oppenheimer Global Growth & Income Fund
<PAGE> 21
===============================================================================
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 foreign securities and investment income are
translated at the rates of exchange prevailing on the respective dates of such
transactions.
The effect of changes in foreign currency exchange rates on investments
is separately identified from the fluctuations arising from changes in market
values of securities held and reported with all other foreign currency gains
and losses in the Fund's Statement of Operations.
- -------------------------------------------------------------------------------
REPURCHASE AGREEMENTS. The Fund requires the custodian to take possession, to
have legally segregated in the Federal Reserve Book Entry System or to have
segregated within the custodian's vault, all securities held as collateral for
repurchase agreements. The market value of the underlying securities is
required to be at least 102% of the resale price at the time of purchase. If
the seller of the agreement defaults and the value of the collateral declines,
or if the seller enters an insolvency proceeding, realization of the value of
the collateral by the Fund may be delayed or limited.
- -------------------------------------------------------------------------------
ALLOCATION OF INCOME, EXPENSES, AND GAINS AND LOSSES. Income, expenses (other
than those attributable to a specific class) and gains and losses are allocated
daily to each class of shares based upon the relative proportion of net assets
represented by such class. Operating expenses directly attributable to a
specific class are charged against the operations of that class.
- -------------------------------------------------------------------------------
FEDERAL TAXES. The Fund intends to continue to comply with provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income, including any net realized gain on
investments not offset by loss carryovers, to shareholders. Therefore, no
federal income or excise tax provision is required.
- -------------------------------------------------------------------------------
TRUSTEES' FEES AND EXPENSES. The Fund has adopted a nonfunded retirement plan
for the Fund's independent trustees. Benefits are based on years of service and
fees paid to each trustee during the years of service. During the year ended
September 30, 1997, a provision of $44,888 was made for the Fund's projected
benefit obligations and payments of $3,313 were made to retired trustees,
resulting in an accumulated liability of $86,690 at September 30, 1997.
21 Oppenheimer Global Growth & Income Fund
<PAGE> 22
NOTES TO FINANCIAL STATEMENTS (Continued)
===============================================================================
1. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to shareholders are
recorded 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 its 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 fiscal year in which the
income or realized gain was recorded by the Fund.
The Fund adjusts the classification of distributions to shareholders to
reflect the differences between financial statement amounts and distributions
determined in accordance with income tax regulations. Accordingly, during the
year ended September 30, 1997, amounts have been reclassified to reflect a
decrease in overdistributed net investment income of $4,842,102, a decrease in
accumulated net realized gain on investments of $4,841,100, and a decrease in
paid-in capital of $1,002.
- -------------------------------------------------------------------------------
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.
22 Oppenheimer Global Growth & Income Fund
<PAGE> 23
===============================================================================
2. SHARES OF BENEFICIAL INTEREST
The Fund has authorized an unlimited number of no par value shares of
beneficial interest of each class. Transactions in shares of beneficial
interest were as follows:
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30, 1997 YEAR ENDED SEPTEMBER 30, 1996(1)
----------------------------- -----------------------------------
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 4,125,858 $ 69,304,365 2,501,931 $ 37,638,075
Dividends and
distributions reinvested 878,791 13,300,225 587,255 8,491,936
Redeemed (3,311,174) (55,319,631) (2,961,528) (44,742,108)
---------- ------------ ---------- ------------
Net increase 1,693,475 $ 27,284,959 127,658 $ 1,387,903
========== ============ ========== ============
- ---------------------------------------------------------------------------------------------------------------------
Class B:
Sold 1,501,153 $ 25,320,751 587,069 $ 8,834,948
Dividends and
distributions reinvested 70,126 1,070,339 8,689 128,325
Redeemed (169,306) (2,807,194) (73,445) (1,110,897)
---------- ------------ ---------- ------------
Net increase 1,401,973 $ 23,583,896 522,313 $ 7,852,376
========== ============ ========== ============
- ---------------------------------------------------------------------------------------------------------------------
Class C:
Sold 772,796 $ 12,832,416 686,840 $ 10,288,855
Dividends and
distributions reinvested 250,530 3,750,170 144,291 2,072,833
Redeemed (397,368) (6,520,898) (431,369) (6,447,032)
---------- ------------ ---------- ------------
Net increase 625,958 $ 10,061,688 399,762 $ 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.
===============================================================================
3. UNREALIZED GAINS AND LOSSES ON INVESTMENTS
At September 30, 1997, net unrealized appreciation on investments of
$56,320,681 was composed of gross appreciation of $59,258,880, and gross
depreciation of $2,938,199.
23 Oppenheimer Global Growth & Income Fund
<PAGE> 24
NOTES TO FINANCIAL STATEMENTS (Continued)
===============================================================================
4. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Management fees paid to the Manager were in accordance with the investment
advisory agreement with the Fund which provides for a fee of 0.80% of the first
$250 million of average annual 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
average annual net assets in excess of $2 billion.
For the year ended September 30, 1997, commissions (sales charges paid
by investors) on sales of Class A shares totaled $614,969, of which $193,537
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 $33,371 and $5,820, respectively, of which $708,109 and
$105,187, respectively, was paid to an affiliated broker/dealer. During the
year ended September 30, 1997, OFDI received contingent deferred sales charges
of $30,299 and $4,200, 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 shareholder accounts that hold Class A shares.
Reimbursement is made quarterly at an annual rate that may not exceed 0.25% of
the average annual net assets of Class A shares of the Fund. OFDI uses the
service fee to reimburse brokers, dealers, banks and other financial
institutions quarterly for providing personal service and maintaining accounts
of their customers that hold Class A shares. During the year ended September
30, 1997, OFDI paid $24,383 to an affiliated broker/dealer as reimbursement for
Class A personal service and maintenance expenses.
24 Oppenheimer Global Growth & Income Fund
<PAGE> 25
===============================================================================
The Fund has adopted a 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 $158,050 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 distributing shares before
the Plan was terminated. As of September 30, 1997, OFDI had incurred
unreimbursed expenses of $924,133 for Class B.
The Fund has adopted a 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 year ended September 30, 1997, OFDI paid $13,952 to an
affiliated broker/dealer as reimbursement for Class C personal service and
maintenance expenses and retained $97,301 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 September 30, 1997, OFDI had
incurred unreimbursed expenses of $432,824 for Class C.
25 Oppenheimer Global Growth & Income Fund
<PAGE> 26
NOTES TO FINANCIAL STATEMENTS (Continued)
===============================================================================
5. FORWARD CONTRACTS
A forward foreign currency exchange contract (forward contract) is a commitment
to purchase or sell a foreign currency at a future date, at a negotiated rate.
The Fund uses forward contracts to seek to manage foreign currency
risks. They may also be used to tactically shift portfolio currency risk. The
Fund generally enters into forward contracts as a hedge upon the purchase or
sale of a security denominated in a foreign currency. In addition, the Fund may
enter into such contracts as a hedge against changes in foreign currency
exchange rates on portfolio positions.
Forward contracts are valued based on the closing prices of the forward
currency contract rates in the London foreign exchange markets on a daily basis
as provided by a reliable bank or dealer. The Fund will realize a gain or loss
upon the closing or settlement of the forward transaction.
Securities held in segregated accounts to cover net exposure on
outstanding forward contracts are noted in the Statement of Investments where
applicable. Unrealized appreciation or depreciation on forward contracts is
reported in the Statement of Assets and Liabilities. Realized gains and losses
are reported with all other foreign currency gains and losses in the Fund's
Statement of Operations.
Risks include the potential inability of the counterparty to meet the
terms of the contract and unanticipated movements in the value of a foreign
currency relative to the U.S. dollar.
At September 30, 1997, the Fund had outstanding forward contracts as
follows:
<TABLE>
<CAPTION>
CONTRACT VALUATION AS OF UNREALIZED
EXPIRATION DATE AMOUNT (000S) SEPTEMBER 30, 1997 DEPRECIATION
- --------------------------------------------------------------------------------------------------------------------------------
CONTRACTS TO PURCHASE
- ---------------------
<S> <C> <C> <C> <C>
British Pound Sterling (GBP) 10/1/97 180 GBP $ 428,643 $ 3,741
Italian Lira (ITL) 10/2/97 2,666,369 ITL 7,118,384 22,835
-------
Total Unrealized Depreciation $26,576
=======
</TABLE>
26 Oppenheimer Global Growth & Income Fund
<PAGE> 27
===============================================================================
6. ILLIQUID AND RESTRICTED SECURITIES
At September 30, 1997, investments in 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 September 30, 1997 was
$542,500, which represents 0.20% of the Fund's net assets.
===============================================================================
7. BANK BORROWINGS
The Fund may borrow from a bank for temporary or emergency purposes including,
without limitation, funding of shareholder redemptions provided asset coverage
for borrowings exceeds 300%. The Fund has entered into an agreement which
enables it to participate with other OppenheimerFunds in an unsecured line of
credit with a bank, which permits borrowings up to $400 million, collectively.
Interest is charged to each fund, based on its borrowings, at a rate equal to
the Federal Funds Rate plus 0.35%. Borrowings are payable 30 days after such
loan is executed. The Fund also pays a commitment fee equal to its pro rata
share of the average unutilized amount of the credit facility at a rate of
0.0575% per annum.
The Fund had no borrowings outstanding during the year ended September
30, 1997.
27 Oppenheimer Global Growth & Income Fund
<PAGE> 28
INDEPENDENT AUDITORS' REPORT
===============================================================================
The Board of Trustees and Shareholders of
Oppenheimer Global Growth & Income Fund:
We have audited the accompanying statements of investments and assets and
liabilities of Oppenheimer Global Growth & Income Fund as of September 30,
1997, and the related statement of operations for the year then ended, the
statements of changes in net assets for each of the years in the two-year
period then ended and the financial highlights for each of the years in the
five-year period then ended. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
September 30, 1997, by correspondence with the custodian and brokers; and where
confirmations were not received from brokers, we performed other auditing
procedures. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Oppenheimer Global Growth & Income Fund as of September 30, 1997,
the results of its operations for the year then ended, the changes in its net
assets for each of the years in the two-year period then ended, and the
financial highlights for each of the years in the five-year period then ended,
in conformity with generally accepted accounting principles.
KPMG PEAT MARWICK LLP
Denver, Colorado
October 21, 1997
28 Oppenheimer Global Growth & Income Fund
<PAGE> 29
FEDERAL INCOME TAX INFORMATION (Unaudited)
===============================================================================
In early 1998, shareholders will receive information regarding all dividends
and distributions paid to them by the Fund during calendar year 1997.
Regulations of the U.S. Treasury Department require the Fund to report this
information to the Internal Revenue Service.
Distributions of $1.4833, $1.4425 and $1.4460 per share were paid to
Class A, Class B and Class C shareholders, respectively, on December 16, 1996,
of which $0.5325 was designated as a "capital gain distribution" for federal
income tax purposes. Whether received in stock or cash, the capital gain
distribution should be treated by shareholders as a gain from the sale of
capital assets held for more than one year (long-term capital gains).
Dividends paid by the Fund during the year ended September 30, 1997
which are not designated as capital gain distributions should be multiplied by
2.26% to arrive at the net amount eligible for the corporate dividend-received
deduction.
The foregoing information is presented to assist shareholders in
reporting distributions received from the Fund to the Internal Revenue Service.
Because of the complexity of the federal regulations which may affect your
individual tax return and the many variations in state and local tax
regulations, we recommend that you consult your tax advisor for specific
guidance.
29 Oppenheimer Global Growth & Income Fund
<PAGE> 30
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 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
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.
30 Oppenheimer Global Growth & Income Fund
<PAGE> 31
OPPENHEIMERFUNDS FAMILY
<TABLE>
<S> <C> <C>
==========================================================================================================
REAL ASSET FUNDS
- ----------------------------------------------------------------------------------------------------------
Real Asset Fund Gold & Special Minerals Fund
==========================================================================================================
STOCK FUNDS
- ----------------------------------------------------------------------------------------------------------
Developing Markets Fund Quest Small Cap Value Fund Global Fund
Enterprise Fund Capital Appreciation Fund(1) Quest Global Value Fund
International Growth Fund Quest Capital Value Fund Disciplined Value Fund
Discovery Fund Growth Fund Quest Value Fund
==========================================================================================================
STOCK & BOND FUNDS
- ----------------------------------------------------------------------------------------------------------
Main Street Income & Quest Growth & Income Disciplined Allocation Fund
Growth Fund Value Fund Multiple Strategies Fund(2)
Quest Opportunity Value Fund Global Growth & Income Fund Bond Fund for Growth
Total Return Fund Equity Income Fund
==========================================================================================================
BOND FUNDS
- ----------------------------------------------------------------------------------------------------------
International Bond Fund Champion Income Fund U.S. Government Trust
High Yield Fund Strategic Income Fund Limited-Term Government Fund
Bond Fund
==========================================================================================================
MUNICIPAL FUNDS
- ----------------------------------------------------------------------------------------------------------
California Municipal Fund(3) Pennsylvania Municipal Fund(3) Rochester Division:
Florida Municipal Fund(3) Municipal Bond Fund Rochester Fund Municipals
New Jersey Municipal Fund(3) Insured Municipal Fund Limited Term New York
New York Municipal Fund(3) Intermediate Municipal Fund Municipal Fund
==========================================================================================================
MONEY MARKET FUNDS(4)
- ----------------------------------------------------------------------------------------------------------
Money Market Fund Cash Reserves
==========================================================================================================
LIFESPAN
- ----------------------------------------------------------------------------------------------------------
Growth Fund Balanced Fund Income Fund
</TABLE>
1. On 12/18/96, the Fund's name was changed from "Target Fund."
2. On 3/16/97, the Fund's name was changed from "Asset Allocation Fund."
3. Available only to investors in certain states.
4. An investment in money market funds is neither insured nor guaranteed by the
U.S. government and there can be no assurance that a money market fund will be
able to maintain a stable net asset value of $1.00 per share. Oppenheimer funds
are distributed by OppenheimerFunds Distributor, Inc., Two World Trade Center,
New York, NY 10048-0203.
(C) Copyright 1997 OppenheimerFunds, Inc. All rights reserved.
31 Oppenheimer Global Growth & Income Fund
<PAGE> 32
INTERNET
24-hr access to account information
WWW.OPPENHEIMERFUNDS.COM
GENERAL INFORMATION
Mon-Fri 8:30am-9pm ET
Sat 10am-4pm ET
1-800-525-7048
ACCOUNT TRANSACTIONS
Mon-Fri 8:30am-9pm ET
Sat 10am-4pm ET
1-800-852-8457
PHONELINK
24-hr automated information
and automated transactions
1-800-533-3310
TELECOMMUNICATION DEVICE
FOR THE DEAF (TDD)
Mon-Fri 8:30am-2pm 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
INFORMATION AND SERVICES
- -------------------------------------------------------------------------------
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, or visit us at our website at
www.oppenheimerfunds.com--we're here to help.
[OPPENHEIMERFUNDS LOGO]
RAO215.001.0997 November 28, 1997
