[cover]
Semiannual Report March 31, 1998
O P P E N H E I M E R
Global Growth
& Income Fund
[photo of globe and map]
[OppenheimerFunds logo]
<PAGE>
Contents
<TABLE>
<S> <C>
3 President's Letter
4 Fund Performance
6 An Interview
with the Fund's
Manager
10 Statement of
Investments
14 Statement of
Assets and
Liabilities
16 Statement of
Operations
17 Statements of
Changes in
Net Assets
18 Financial Highlights
20 Notes to Financial
Statements
27 Officers and
Trustees
28 Information and
Services
</TABLE>
Report highlights
- --------------------------------------------------------------------------------
[bullet] Top Lipper ranking: Oppenheimer Global Growth &
Income Fund's Class A shares were ranked #1 by Lipper
Analytical Services, Inc. among global flexible portfolio
funds for both the one- and five-year periods ended
March 31, 1998.(1)
[bullet] Stock markets performed well in
the U.S. and Europe, but Asian
markets declined sharply. The
Fund had little direct exposure
to Asian stocks at that time.(2)
[bullet] The Fund received outstanding
returns from its zero-coupon U.S.
Treasury securities portfolio,
which provided the benefits of
capital appreciation as interest
rates declined.
- ----------------------------------
Cumulative Total Returns
- ----------------------------------
For the 6-Month Period Ended
3/31/98
Class A
Without With
Sales Chg.(3) Sales Chg.(4)
- ----------------------------------
8.33% 2.10%
- ----------------------------------
Class B
Without With
Sales Chg.(3) Sales Chg.(4)
- ----------------------------------
7.95% 2.98%
- ----------------------------------
Class C
Without With
Sales Chg.(3) Sales Chg.(4)
- ----------------------------------
7.91% 6.92%
- ----------------------------------
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., 3/31/98. 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. The Fund's Class A shares were ranked 1 of 86 (1-year) and 1 of 16
(5-year) among global flexible portfolio funds for the period ended 3/31/98.
2. The Fund's portfolio is subject to change.
3. Includes changes in net asset value per share without deducting any sales
charges. This performance is not annualized.
4. Class A return includes the current maximum initial sales charge of 5.75%.
Class B return includes the applicable contingent deferred sales charge of 5%.
Class C return includes the applicable contingent deferred sales charge of 1%.
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.
2 Oppenheimer Global Growth & Income Fund
<PAGE>
[photo of Bridget A. Macaskill]
Bridget A. Macaskill
President
Oppenheimer Global
Growth & Income Fund
Dear shareholder,
- --------------------------------------------------------------------------------
These have been very positive times for many American investors. The U.S.
economy has continued to grow at a moderate pace, unemployment has fallen to its
lowest level in 30 years and inflation has also fallen to a record low. In fact,
long-term interest rates have fallen to their lowest level since the government
began issuing 30-year Treasury bonds in 1977.
What benefits does this provide to the average American? First, when
unemployment levels are low, many individuals tend to feel a greater sense of
job security and can command higher wages because there are fewer unemployed
workers vying for their jobs. Second, many homeowners are opting to refinance
their existing home mortgage loans and take advantage of lower financing rates.
And third, because wages are increasing faster than the rate of inflation, a
paycheck may stretch farther and investors, as consumers, are able to enjoy a
higher level of disposable income. This extra income can be put to use in many
ways, including allocating more money to investment opportunities.
Some industry analysts have tempered such positive news by suggesting that
if the rate of inflation falls any lower, it might actually trigger a period of
deflation, where we see the prices of American goods and services decline. While
lower prices may sound like positive news, in reality it isn't: When prices fall
too low, it erodes the value of those goods to the producer. That is, when
economic conditions force a decrease in the price of goods, companies have to
sell more of those items in order to make the same amount of profit, which
translates into greater difficulties for corporations to improve their bottom
lines.
At OppenheimerFunds, we do not believe we will see a period of deflation in
the United States. The fundamental factors that have driven the U.S. market
still appear to be in place: an economy that's in its eighth year of expansion
with moderate growth, low unemployment, virtually no inflation and low interest
rates. However, because of economic uncertainties in other parts of the world,
particularly Asia, we expect to see slower growth for stocks in 1998 and a year
in which double-digit returns from the equity markets are unlikely. It's also
possible that we may see investors favor the fixed, more secure interest
payments offered from the bond markets.
In closing, we'd like to reassure you that as professional money managers,
we continue to keep a watchful eye on these situations and are closely
monitoring your fund's investments. In times like these, your financial advisor
can be of invaluable assistance to you in helping review your financial plan and
guide your investments accordingly.
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, 1998
3 Oppenheimer Global Growth & Income Fund
<PAGE>
<TABLE>
<S> <C> <C>
- -------------------------------------------------------------
Avg Annual Total Returns
- -------------------------------------------------------------
For the Periods Ended 3/31/98(1)
Class A Since
1 year 5 year Inception
- -------------------------------------------------------------
25.59% 17.75% 13.76%
- -------------------------------------------------------------
Class B Since
1 year 5 year Inception
- -------------------------------------------------------------
27.20% N/A 23.00%
- -------------------------------------------------------------
Class C Since
1 year 5 year Inception
- -------------------------------------------------------------
31.18% N/A 16.16%
- -------------------------------------------------------------
- -------------------------------------------------------------
Cumulative Total Return
- -------------------------------------------------------------
For the Period Ended 3/31/98(1)
Class A
5 year
- -------------------------------------------------------------
126.32% $ 22,632(4)
- -------------------------------------------------------------
</TABLE>
Performance update
- --------------------------------------------------------------------------------
Oppenheimer Global Growth & Income Fund performed extremely well over the past
six months, primarily because of its successful securities selection strategy.
As of March 31, 1998, the Fund's Class A shares were ranked 1 of 86 (1-year) and
1 of 16 (5-year) among global flexible portfolio funds, as measured by Lipper
Analytical Services for the periods ended 3/31/98.(2) In addition, the Fund's
class A shares have maintained a four-star rating (****) from Morningstar for
the 3- and 5-year periods ended March 31, 1998, among 722 (3-year) and 311
(5-year) international funds.(3)
Growth of $10,000
Over five years
(without sales charges)(4)
[TABULAR REPRESENTATION OF MOUNTAIN CHART]
Oppenheimer Global
Growth & Income Fund MSCI
Class A shares World Index
10000 10000
10511 10560
11513 11009
13080 11141
12580 11164
12461 11451
13120 11649
12466 11515
12614 12000
13440 12459
14095 13101
14632 13668
15053 14169
15517 14523
15966 14658
16872 15271
18020 15258
19563 17493
22167 17935
21639 17434
24013 19869
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 3%
(since inception on 10/10/95). Class C returns for the one-year result include
the applicable 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.
2. Source: Lipper Analytical Services, Inc., 3/31/98. 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. The Fund's Class A shares were ranked 1 of 86 (1-year) and 1 of 16
(5-year) among global flexible portfolio funds for the period ended 3/31/98.
4 Oppenheimer Global Growth & Income Fund
<PAGE>
Portfolio review
- --------------------------------------------------------------------------------
[TABULAR REPRESENTATION OF PIE CHART]
Asset Allocation
(Percentage of
invested assets)(5)
Stocks 76.4%
Bonds 22.6
Cash & Cash
Equivalents 1.0
Oppenheimer Global Growth & Income Fund is for investors looking for investment
opportunities worldwide with moderate market risk.
What We Look For
[bullet] Stocks of companies around the world that stand to benefit from one or
more key global growth trends, including efficiency-enhancing technology.
[bullet] U.S. and foreign bonds that can help cushion the effects of
fluctuations in the world's stock markets.
Top 10 Stock Holdings(5)
<TABLE>
<S> <C> <C> <C>
- ----------------------------------------------------------------------------
Porsche AG, Preference 6.6% Reckitt & Coleman Capital 5.2%
- ----------------------------------------------------------------------------
Coherent, Inc. 6.4 MCI Communications Corp. 4.5
- ----------------------------------------------------------------------------
QUALCOMM, Inc. 5.9 United States Surgical Corp. 4.3
- ----------------------------------------------------------------------------
Allied Domecq plc 5.8 Wella AG, Preference 4.1
- ----------------------------------------------------------------------------
National Semiconductor Corp. 5.4 Lernout & Hauspie NV 3.9
Speech Products
- ----------------------------------------------------------------------------
</TABLE>
3. Source: Morningstar, Inc., 3/31/98. Morningstar ranks mutual funds in broad
investment classes, based on risk-adjusted returns after considering sales
charges and expenses. Return and risk are measured as performance above and
below 90-day U.S. Treasury bill returns, respectively. Overall star ranking is
subject to change monthly. Top 10% are ranked 5 stars, next 22.5% are 4 stars,
middle 35% are 3 stars, next 22.5% are 2 stars and bottom 10% are 1 star. Past
performance does not guarantee future results.
4. Results of a hypothetical $10,000 investment in Class A shares on March 31,
1993. The Morgan Stanley Capital International World Index is an unmanaged
broad-based index of foreign and domestic stocks and is widely recognized as a
measure of global stock market performance. It includes reinvestment of
dividends, and cannot be purchased directly by investors.
5. Portfolio is subject to change. Percentages are as of March 31, 1998 and are
based on total market value of stock holdings.
5 Oppenheimer Global Growth & Income Fund
<PAGE>
An interview with your Fund's manager
- --------------------------------------------------------------------------------
How has the Fund performed during the period?
Oppenheimer Global Growth & Income Fund's Class A shares provided a cumulative
total return of 8.83%, without sales charges, for the six-month period ended
March 31, 1998.(1)
International markets experienced sharp declines after the Asian crisis in
late October. What happened?
The forces underlying the decline developed slowly over the past five years.
During that time, so much investment capital flowed into the region that local
businesses began to use the money for speculative purposes, such as building
excess industrial capacity and office buildings.
Unfortunately, the region's economy failed to support these excesses.
Sales of Asian goods began to slow in 1997 when a stronger U.S. dollar made the
region's exports more expensive for consumers in the U.S. and Europe. At the
same time, the Japanese yen weakened, making Japan more competitive relative to
other Asian exporters. As a result, several countries were forced to devalue
their currencies. Many Asian companies, already overextended in the debt
markets, incurred severe losses in foreign exchange markets. When investors
attempted to take their money out of the region, securities prices plunged.
How did the Asian crisis affect the Fund's investments?
We began avoiding Asian stocks and bonds to some degree more than two years ago
because we became wary of the region's speculative use of capital. Therefore,
we had little direct exposure to the region when the crisis hit last summer. In
fact, as of March 31, 1998, less than 4% of the Fund's assets were invested in
Southeast Asia.
[pull-out quote]
"Our theme-driven, bottom-up investment approach led us to a number of
attractive companies in stock markets around the world."
6 Oppenheimer Global Growth & Income Fund
<PAGE>
[PHOTO]
Portfolio Management
Team (l to r)
Frank Jennings
(Portfolio Manager)
William Wilby
George Evans
The few Asian holdings remaining in the portfolio were, in our view, inexpen-
sively priced stocks of growing businesses with management teams committed to
enhancing shareholder value. Even though some of these stocks declined, we are
opti-mistic that they will recover when market conditions improve.
How did the world's stock and bond markets fare?
In the U.S. stock market, a major setback in late October occurred in response
to the economic crisis in Southeast Asia. However, stocks rallied strongly over
the ensuing months, recovering all lost ground and more. By mid-March, most
broad-based U.S. stock indices--such as the Standard & Poor's 500 and Dow Jones
Industrial Average--were again setting new records.
The U.S. bond market also provided excellent returns, but for different
reasons. Unlike stocks, bond prices rose in the wake of the Asian crisis because
investors believed that slower economic growth would help relieve domestic
inflationary pressures.
Overseas, European stocks appeared to benefit from the same forces that
propelled U.S. stocks higher several years ago. Japan was an exception to the
good news in the developed markets over the past six months. The nation's
economy remained trapped in a prolonged recession because its financial system
was grappling with systemic problems. Finally, the emerging markets of Latin
1. Includes changes 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.
7 Oppenheimer Global Growth & Income Fund
<PAGE>
An interview with your Fund's manager
- --------------------------------------------------------------------------------
America suffered over the past six months because of a "spill-over" effect from
the Asian crisis.
How did you position the Fund in this environment?
We structured the portfolio to stand on three legs. The first leg was
zero-coupon U.S. Treasury bonds. When long-term interest rates fell during the
six-month period, zero-coupon bonds flourished because their prices generally
move in the opposite direction of interest rates. Yet, we believe that these
fixed-income investments may provide protection even if interest rates rise
modestly from current levels. That's because supply-and-demand factors, which
have supported U.S. Treasury bond prices over the past six months, may provide a
cushion against declines if the interest-rate environment changes.
Low-expectation stocks represent the portfolio's second leg. These stocks
are typically companies with promising futures, but currently are experiencing
temporary setbacks. We found several opportunities of this kind in the U.S.
technology and consumer goods industries. A few Asian stocks also fit into this
category because their prices fell across the board in response to macroeconomic
forces, without much regard for the strengths of individual companies.
The third and final leg of the Fund's structure is high-growth stocks.
These fast-growing, global companies typically reflect one or more of the
long-term investment themes that drive our strategy. Over the period, our
positions included stocks expected to benefit from the technology, Internet,
healthcare and luxury goods themes.
What investments were particularly attractive?
We especially liked zero-coupon U.S. Treasury bonds. We established a position
in these securities in mid-1997, and we held them while interest rates dropped
and
[pull-out quote]
"We think European markets are poised for the type of growth seen in the U.S.
over the past few years..."
8 Oppenheimer Global Growth & Income Fund
<PAGE>
bond prices rose. We sold much of that position at a substantial profit toward
the end of the year. We re-established our zero-coupon bond position in
January, when yields backed up modestly, in anticipation of further
interest-rate declines.
In the stock market, our largest holdings ranked among our best
performers. For example, one of the Fund's largest holdings, Coherent, Inc., is
the U.S.-based leader in laser technology used increasingly in CD players,
surgical instruments and dental offices. Coherent's earnings have grown as
lasers have become more commonplace. Other top-ten holdings, such as Porsche,
Allied Domecq and Wella, are overseas companies with excellent prospects
selling at relatively cheap prices.
What is your outlook for the next six months or so?
We are optimistic, but cautious. Declining interest rates and low inflation are
likely to keep global investors focused on stocks, leaving room for further
expansion of valuations. On the other hand, the Asian crisis and other factors
may slow economic growth moderately in the U.S. and elsewhere, potentially
creating a deceleration of corporate earnings growth. In our view, the
tug-of-war between slower earnings growth and strong investor demand should
produce periods of high near-term volatility on the way to positive long-term
returns.
Accordingly, we have shifted some assets away from stocks into bonds.
Within our stock portfolio, we intend to focus on stocks that provide attractive
values because they tend to be less volatile than pure growth-oriented stocks.
As always, we will continue to employ the disciplined investment approach that,
in our view, should lead us to attractive investment in stocks and bonds around
the world, regardless of the economic environment.
[pull-out quote]
"...but we expect periods of high volatility over the near term."
9 Oppenheimer Global Growth & Income Fund
<PAGE>
- --------------------------------------------------------------------------------
Statement of Investments March 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
- ----------------------------------------------------------------------
<S> <C> <C>
Common Stocks--73.0%
- ----------------------------------------------------------------------
Consumer Cyclicals--9.5%
- ----------------------------------------------------------------------
Autos & Housing--6.3%
Borg-Warner Automotive, Inc. 70,000 $4,488,750
- ----------------------------------------------------------------------
Porsche AG, Preference 8,000 17,865,862
----------
22,354,612
- ----------------------------------------------------------------------
Leisure & Entertainment--1.9%
Hasbro, Inc. 100,000 3,531,250
Mandarin Oriental International Ltd.(1) 4,000,000 3,200,000
----------
6,731,250
- ----------------------------------------------------------------------
Retail: Specialty--1.3%
Christies International plc 1,160,000 4,662,091
- ----------------------------------------------------------------------
Consumer Non-Cyclicals--22.3%
- ----------------------------------------------------------------------
Beverages--7.8%
Allied Domecq plc 1,600,000 15,687,667
- ----------------------------------------------------------------------
Cadbury Schweppes plc 600,000 8,329,468
- ----------------------------------------------------------------------
Remy Cointreau 190,000 3,603,312
----------
27,620,447
- ----------------------------------------------------------------------
Food--3.0%
Dairy Farm International Holdings Ltd. 4,858,044 5,829,653
- ----------------------------------------------------------------------
Great Atlantic & Pacific Tea Co., Inc. (The) 160,000 4,840,000
----------
10,669,653
- ----------------------------------------------------------------------
Healthcare/Drugs--4.8%
ALZA Corp., Cl. A(1) 100,000 4,481,250
- ----------------------------------------------------------------------
Astra AB Free, Series A 300,000 6,191,937
- ----------------------------------------------------------------------
Cheminor Drugs Ltd.(1) 59,400 238,464
- ----------------------------------------------------------------------
Glaxo (India) Ltd. 50 519
- ----------------------------------------------------------------------
Millennium Pharmaceuticals, Inc.(1) 150,000 2,793,750
- ----------------------------------------------------------------------
Neurogen Corp.(1) 220,000 3,382,500
----------
17,088,420
- ----------------------------------------------------------------------
Healthcare/Supplies & Services--3.3%
United States Surgical Corp. 350,535 11,567,655
- ----------------------------------------------------------------------
Household Goods--3.4%
Pond's (India) Ltd. 26,263 772,131
- ----------------------------------------------------------------------
Wella AG, Preference 13,000 11,141,831
----------
11,913,962
</TABLE>
10 Oppenheimer Global Growth & Income Fund
<PAGE>
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
- ----------------------------------------------------------------------------
<S> <C> <C>
Financial--8.8%
- ----------------------------------------------------------------------------
Banks--6.8%
Banca di Roma(1) 6,000,000 $10,121,398
- ----------------------------------------------------------------------------
Banco Totta & Acores, B Shares 150,000 5,559,973
- ----------------------------------------------------------------------------
Istituto Bancario San Paolo di Torino 600,000 8,409,812
-----------
24,091,183
- ----------------------------------------------------------------------------
Diversified Financial--2.0%
Industrial Credit & Investment Corp. of India Ltd. 3,000,000 6,998,238
- ----------------------------------------------------------------------------
Industrial--3.4%
- ----------------------------------------------------------------------------
Industrial Services--1.2%
Rentokil Group plc 700,000 4,284,468
- ----------------------------------------------------------------------------
Manufacturing--2.1%
Friedrich Grohe AG 9,000 2,554,970
- ----------------------------------------------------------------------------
Societe BIC SA 50,000 3,807,487
- ----------------------------------------------------------------------------
Steinway Musical Instruments, Inc.(1) 26,700 866,081
-----------
7,228,538
- ----------------------------------------------------------------------------
Transportation--0.1%
International Container Terminal Services, Inc.(1) 1,892,000 274,573
- ----------------------------------------------------------------------------
Technology--22.6%
- ----------------------------------------------------------------------------
Computer Hardware--2.8%
Casio Computer Co. Ltd. 800,000 6,899,082
- ----------------------------------------------------------------------------
Sun Microsystems, Inc.(1) 70,000 2,920,312
-----------
9,819,394
- ----------------------------------------------------------------------------
Computer Software/Services--2.0%
JBA Holdings plc 700,000 7,103,659
- ----------------------------------------------------------------------------
Electronics--13.3%
Advanced Micro Devices, Inc.(1) 150,000 4,359,375
- ----------------------------------------------------------------------------
Coherent, Inc.(1) 720,000 17,415,000
- ----------------------------------------------------------------------------
Lernout & Hauspie Speech Products NV(1) 120,000 10,485,000
- ----------------------------------------------------------------------------
National Semiconductor Corp.(1) 700,000 14,656,250
-----------
46,915,625
- ----------------------------------------------------------------------------
Telecommunications-Technology--4.5%
QUALCOMM, Inc.(1) 300,000 16,050,000
</TABLE>
11 Oppenheimer Global Growth & Income Fund
<PAGE>
- --------------------------------------------------------------------------------
Statement of Investments (Unaudited) (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
- -------------------------------------------------------------------------------------------------
<S> <C> <C>
Utilities--6.4%
- -------------------------------------------------------------------------------------------------
Electric Utilities--1.8%
Hawaiian Electric Industries, Inc. 150,000 $ 6,225,000
- -------------------------------------------------------------------------------------------------
Telephone Utilities--4.6%
MCI Communications Corp. 250,000 12,375,000
- -------------------------------------------------------------------------------------------------
Rostelecom, Sponsored ADR(1) 200,000 3,975,000
------------
16,350,000
------------
Total Common Stocks (Cost $211,697,408) 257,948,768
- -------------------------------------------------------------------------------------------------
Preferred Stocks--4.0%
- -------------------------------------------------------------------------------------------------
Reckitt & Coleman Capital, 9.50% Cv. (Cost $9,950,758) 3,500,000 14,095,958
Units
- -------------------------------------------------------------------------------------------------
Rights, Warrants and Certificates--0.0%
- -------------------------------------------------------------------------------------------------
American Satellite Network, Inc. Wts., Exp. 6/99 (Cost $0) 3,875 --
Face
Amount
- -------------------------------------------------------------------------------------------------
U.S. Government Obligations--21.2%
- -------------------------------------------------------------------------------------------------
U.S. Treasury Bonds, STRIPS, 6.691%, 11/15/22(2) $59,000,000 13,501,914
- -------------------------------------------------------------------------------------------------
U.S. Treasury Bonds, STRIPS, 6.399%, 2/15/27(2) 110,000,000 20,178,840
- -------------------------------------------------------------------------------------------------
U.S. Treasury Bonds, STRIPS, 6.380%, 8/15/20(2) 50,000,000 13,061,850
- -------------------------------------------------------------------------------------------------
U.S. Treasury Bonds, STRIPS, 6.805%, 8/15/22(2) 45,000,000 10,451,205
- -------------------------------------------------------------------------------------------------
U.S. Treasury Bonds, STRIPS, 6.344%, 8/15/23(2) 80,000,000 17,716,400
------------
Total U.S. Government Obligations (Cost $66,630,823) 74,910,209
- -------------------------------------------------------------------------------------------------
Non-Convertible Corporate Bonds and Notes--1.6%
- -------------------------------------------------------------------------------------------------
Industrial Bank of Japan Preferred Capital Co. (The) LLC, 8.79%
Bonds, 12/29/49(3)(4) 5,000,000 4,822,015
- -------------------------------------------------------------------------------------------------
Matahari International Finance Co. BV, 11.25% Gtd. Nts., 3/15/01 1,500,000 828,750
------------
Total Non-Convertible Corporate Bonds and Notes (Cost $6,703,344) 5,650,765
- -------------------------------------------------------------------------------------------------
Repurchase Agreements--1.0%
- -------------------------------------------------------------------------------------------------
Repurchase agreement with J.P. Morgan Securities, Inc., 5.95%,
dated 3/31/98, to be repurchased at $3,500,578 on 4/1/98,
collateralized by U.S. Treasury Bonds, 7.25%-14%, 11/15/08-
11/15/21, with a value of $3,588,381 (Cost $3,500,000) 3,500,000 3,500,000
- -------------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $298,482,333) 100.8% 356,105,700
- -------------------------------------------------------------------------------------------------
Liabilities in Excess of Other Assets (0.8) (2,919,823)
----------- ------------
Net Assets 100.0% $353,185,877
=========== ============
</TABLE>
12 Oppenheimer Global Growth & Income Fund
<PAGE>
- --------------------------------------------------------------------------------
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 $200,359,399 56.3%
- -----------------------------------------
Great Britain 54,163,310 15.2
- -----------------------------------------
Germany 31,562,663 8.9
- -----------------------------------------
Italy 18,531,209 5.2
- -----------------------------------------
Belgium 10,485,000 2.9
- -----------------------------------------
India 8,009,352 2.2
- -----------------------------------------
France 7,410,799 2.1
- -----------------------------------------
Japan 6,899,082 1.9
- -----------------------------------------
Sweden 6,191,937 1.8
- -----------------------------------------
Singapore 5,829,653 1.6
- -----------------------------------------
Portugal 5,559,973 1.6
- -----------------------------------------
The Netherlands 828,750 0.2
- -----------------------------------------
Philippines 274,573 0.1
------------ -----
Total $356,105,700 100.0%
============ =====
</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. Represents the current interest rate for a variable rate security.
4. Represents securities sold under Rule 144A, which are exempt from
registration under the Securities Act of 1933, as amended. These securities
have been determined to be liquid under guidelines established by the Board of
Trustees. These securities amount to $4,822,015 or 1.37% of the Fund's net
assets as of March 31,1998.
See accompanying Notes to Financial Statements.
13 Oppenheimer Global Growth & Income Fund
<PAGE>
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities March 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
- -----------------------------------------------------------------------------------------
Assets
Investments, at value (cost $298,482,333)--see accompanying statement $356,105,700
- -----------------------------------------------------------------------------------------
Cash 313,779
- -----------------------------------------------------------------------------------------
Unrealized appreciation on forward foreign currency
exchange contracts--Note 5 44,951
- -----------------------------------------------------------------------------------------
Receivables:
Shares of beneficial interest sold 2,269,949
Investments sold 745,079
Interest and dividends 491,422
Closed forward foreign currency exchange contracts 402,914
- -----------------------------------------------------------------------------------------
Other 9,772
------------
Total assets 360,383,566
- -----------------------------------------------------------------------------------------
Liabilities
Unrealized depreciation on forward foreign currency
exchange contracts--Note 5 16,207
- -----------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 6,263,518
Shares of beneficial interest redeemed 437,167
Distribution and service plan fees 191,925
Trustees' fees--Note 1 98,880
Shareholder reports 66,727
Transfer and shareholder servicing agent fees 61,979
Other 61,286
------------
Total liabilities 7,197,689
- -----------------------------------------------------------------------------------------
Net Assets $353,185,877
============
- -----------------------------------------------------------------------------------------
Composition of Net Assets
Paid-in capital $276,106,989
- -----------------------------------------------------------------------------------------
Overdistributed net investment income (480,904)
- -----------------------------------------------------------------------------------------
Accumulated net realized gain on investments and
foreign currency transactions 19,854,397
- ------------------------------------------------------------------------- ------------
Net unrealized appreciation on investments and translation of assets and
liabilities denominated in foreign currencies 57,705,395
------------
Net assets $353,185,877
============
</TABLE>
14 Oppenheimer Global Growth & Income Fund
<PAGE>
<TABLE>
<S> <C>
- --------------------------------------------------------------------------------------------
Net Asset Value Per Share
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$225,180,091 and 11,698,433 shares of beneficial interest outstanding) $ 19.25
Maximum offering price per share (net asset value plus sales charge of 5.75%
of offering price) $ 20.42
- --------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $62,747,317
and 3,274,552 shares of beneficial interest outstanding) $ 19.16
- --------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $65,258,469
and 3,406,919 shares of beneficial interest outstanding) $ 19.15
</TABLE>
See accompanying Notes to Financial Statements.
15 Oppenheimer Global Growth & Income Fund
<PAGE>
- --------------------------------------------------------------------------------
Statement of Operations For the Six Months Ended March 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
- ---------------------------------------------------------------------------------------
Investment Income
Interest (net of foreign withholding taxes of $82,175) $ 2,802,453
- ---------------------------------------------------------------------------------------
Dividends (net of foreign withholding taxes of $52,885) 861,125
------------
Total income 3,663,578
- ---------------------------------------------------------------------------------------
Expenses
Management fees--Note 4 1,167,493
- ---------------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 232,325
Class B 226,648
Class C 280,983
- ---------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 301,359
- ---------------------------------------------------------------------------------------
Custodian fees and expenses 92,390
- ---------------------------------------------------------------------------------------
Shareholder reports 56,804
- ---------------------------------------------------------------------------------------
Trustees' fees and expenses--Note 1 22,688
- ---------------------------------------------------------------------------------------
Registration and filing fees 21,236
- ---------------------------------------------------------------------------------------
Legal and auditing fees 14,707
- ---------------------------------------------------------------------------------------
Insurance expenses 4,383
- ---------------------------------------------------------------------------------------
Other 5,458
------------
Total expenses 2,426,474
- ---------------------------------------------------------------------------------------
Net Investment Income 1,237,104
- ---------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments 26,298,118
Foreign currency transactions (2,300,896)
------------
Net realized gain 23,997,222
- ---------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments (801,031)
Translation of assets and liabilities denominated in foreign currencies 2,205,461
------------
Net change 1,404,430
------------
Net realized and unrealized gain 25,401,652
- ---------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations $ 26,638,756
============
</TABLE>
See accompanying Notes to Financial Statements.
16 Oppenheimer Global Growth & Income Fund
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended Year Ended
March 31, 1998 September 30,
(Unaudited) 1997
- --------------------------------------------------------------------------------------------------
<S> <C> <C>
Operations
Net investment income $ 1,237,104 $ 4,552,606
- --------------------------------------------------------------------------------------------------
Net realized gain 23,997,222 17,125,069
- --------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation 1,404,430 47,383,083
------------ ------------
Net increase in net assets resulting from operations 26,638,756 69,060,758
- --------------------------------------------------------------------------------------------------
Dividends and Distributions to Shareholders
Dividends from net investment income:
Class A (4,530,209) (3,458,736)
Class B (904,173) (340,317)
Class C (1,064,502) (732,211)
- --------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (10,520,684) (10,399,198)
Class B (2,433,704) (812,462)
Class C (3,038,267) (3,233,192)
- --------------------------------------------------------------------------------------------------
Beneficial Interest Transactions
Net increase in net assets resulting from beneficial
interest transactions--Note 2:
Class A 41,018,134 27,284,959
Class B 24,491,179 23,583,896
Class C 8,463,430 10,061,688
- --------------------------------------------------------------------------------------------------
Net Assets
Total increase 78,119,960 111,015,185
- --------------------------------------------------------------------------------------------------
Beginning of period 275,065,917 164,050,732
------------ ------------
End of period [including undistributed (overdistributed) net
investment income of $(480,904) and $4,780,876, respectively] $353,185,877 $275,065,917
============ ============
</TABLE>
See accompanying Notes to Financial Statements.
17 Oppenheimer Global Growth & Income Fund
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class A
-------------------------------------------------------------------------------------
Six Months
Ended
March 31,
1998 Year Ended September 30,
(Unaudited) 1997 1996 1995 1994 1993
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning
of period $19.36 $15.62 $14.98 $15.21 $14.09 $11.91
- -----------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income .08 .40 .47 .45 .33 .29
Net realized and unrealized
gain 1.33 5.12 1.40 .54 1.62 2.17
----- ----- ----- ----- ----- -----
Total income from investment
operations 1.41 5.52 1.87 .99 1.95 2.46
- -----------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net
investment income (.45) (.40) (.40) (.40) (.35) (.17)
Distributions from net
realized gain (1.07) (1.38) (.83) (.82) (.48) (.11)
----- ----- ----- ----- ----- -----
Total dividends and distributions
to shareholders (1.52) (1.78) (1.23) (1.22) (.83) (.28)
- -----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $19.25 $19.36 $15.62 $14.98 $15.21 $14.09
====== ====== ====== ====== ====== ======
- -----------------------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value(3) 8.33% 38.83% 13.28% 7.43% 13.96% 21.00%
- -----------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period
(in thousands) $225,180 $181,716 $120,214 $113,341 $124,017 $86,019
- -----------------------------------------------------------------------------------------------------------------------------
Average net assets
(in thousands) $192,763 $141,582 $115,186 $120,267 $117,164 $59,951
- -----------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 1.08%(4) 2.47% 2.65% 3.09% 2.44% 2.68%
Expenses 1.42%(4) 1.43% 1.52% 1.63% 1.49% 1.56%
- -----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 64.2% 90.5% 207.8% 135.2% 87.4% 90.6%
Average brokerage
commission rate(6) $0.0006 $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>
<TABLE>
<CAPTION>
Class B Class C
- ---------------------------------------------- -----------------------------------------------------------------------
Six Months Six Months
Ended Ended
March 31, March 31,
1998 Year Ended September 30, 1998 Year Ended September 30,
(Unaudited) 1997 1996(2) (Unaudited) 1997 1996 1995 1994(1)
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$19.27 $15.57 $14.72 $19.26 $15.55 $14.92 $15.17 $14.85
- ------------------------------------------------------------------------------------------------------------------------
.05 .30 .36 .04 .28 .35 .35 .22
1.29 5.06 1.63 1.29 5.08 1.40 .53 .87
------ ------ ------ ------ ------ ------ ------ ------
1.34 5.36 1.99 1.33 5.36 1.75 .88 1.09
- ------------------------------------------------------------------------------------------------------------------------
(.38) (.28) (.31) (.37) (.27) (.29) (.31) (.29)
(1.07) (1.38) (.83) (1.07) (1.38) (.83) (.82) (.48)
------ ------ ------ ------ ------ ------ ------ ------
(1.45) (1.66) (1.14) (1.44) (1.65) (1.12) (1.13) (.77)
- ------------------------------------------------------------------------------------------------------------------------
$19.16 $19.27 $15.57 $19.15 $19.26 $15.55 $14.92 $15.17
====== ====== ====== ====== ====== ====== ====== ======
- ------------------------------------------------------------------------------------------------------------------------
7.95% 37.69% 14.33% 7.91% 37.74% 12.45% 6.61% 7.41%
- ------------------------------------------------------------------------------------------------------------------------
$62,747 $37,071 $8,131 $65,258 $56,278 $35,706 $28,295 $17,008
- ------------------------------------------------------------------------------------------------------------------------
$45,595 $17,474 $3,815 $56,400 $43,338 $31,371 $22,211 $7,896
- ------------------------------------------------------------------------------------------------------------------------
0.33%(4) 1.77% 1.64%(4) 0.30%(4) 1.71% 1.87% 2.36% 1.85%(4)
2.17%(4) 2.15% 2.28%(4) 2.17%(4) 2.18% 2.28% 2.39% 2.44%(4)
- ------------------------------------------------------------------------------------------------------------------------
64.2% 90.5% 207.8% 64.2% 90.5% 207.8% 135.2% 87.4%
$0.0006 $0.0015 $0.0004 $0.0006 $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 March 31, 1998 were $230,609,393 and $180,200,991,
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>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited)
- --------------------------------------------------------------------------------
1. Significant Accounting Policies
Oppenheimer Global Growth & Income Fund (the Fund) is registered under the
Investment Company Act of 1940, as amended, as a diversified, open-end
management investment company. The Fund's investment objective is to seek
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.
- --------------------------------------------------------------------------------
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.
20 Oppenheimer Global Growth & Income Fund
<PAGE>
- --------------------------------------------------------------------------------
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, 1998, a provision of $10,376 was made for the Fund's projected
benefit obligations and payments of $4,526 were made to retired trustees,
resulting in an accumulated liability of $92,540 at March 31, 1998.
- --------------------------------------------------------------------------------
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.
21 Oppenheimer Global Growth & Income Fund
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited) (Continued)
- --------------------------------------------------------------------------------
1. Significant Accounting Policies (continued)
Other. Investment transactions are accounted for on the date the investments
are purchased or sold (trade date) and dividend income is recorded on the
ex-dividend date. Discount on securities purchased is amortized over the life
of the respective securities, in accordance with federal income tax
requirements. Realized gains and losses on investments and unrealized
appreciation and depreciation are determined on an identified cost basis, which
is the same basis used for federal income tax purposes.
The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of income and expenses during the reporting
period. Actual results could differ from those estimates.
- --------------------------------------------------------------------------------
2. Shares of Beneficial Interest
The Fund has authorized an unlimited number of no par value shares of
beneficial interest of each class. Transactions in shares of beneficial
interest were as follows:
<TABLE>
<CAPTION>
Six Months Ended March 31, 1998 Year Ended September 30, 1997
-------------------------------- --------------------------------
Shares Amount Shares Amount
-------------------------------- --------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 4,290,405 $ 78,280,533 4,125,858 $ 69,304,365
Dividends and distributions
reinvested 846,149 14,471,115 878,791 13,300,225
Redeemed (2,826,717) (51,733,514) (3,311,174) (55,319,631)
---------- ------------- ---------- -------------
Net increase 2,309,837 $ 41,018,134 1,693,475 $ 27,284,959
========== ============= ========== =============
Class B:
Sold 1,423,411 $ 26,052,307 1,501,153 $ 25,320,751
Dividends and
distributions reinvested 184,653 3,143,984 70,126 1,070,339
Redeemed (257,798) (4,705,112) (169,306) (2,807,194)
---------- ------------- ---------- -------------
Net increase 1,350,266 $ 24,491,179 1,401,973 $ 23,583,896
========== ============= ========== =============
Class C:
Sold 749,850 $ 13,653,642 772,796 $ 12,832,416
Dividends and
distributions reinvested 228,447 3,881,184 250,530 3,750,170
Redeemed (494,165) (9,071,396) (397,368) (6,520,898)
---------- ------------- ---------- -------------
Net increase 484,132 $ 8,463,430 625,958 $ 10,061,688
========== ============= ========== =============
</TABLE>
22 Oppenheimer Global Growth & Income Fund
<PAGE>
- --------------------------------------------------------------------------------
3. Unrealized Gains and Losses on Investments
At March 31, 1998, net unrealized appreciation on investments of $57,623,366
was composed of gross appreciation of $64,085,377, and gross depreciation of
$6,462,011.
- --------------------------------------------------------------------------------
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 six months ended March 31, 1998, commissions (sales
charges paid by investors) on sales of Class A shares totaled $606,898, of
which $209,363 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 $785,634 and $112,953, respectively,
of which $63,334 and $2,136, respectively, was paid to an affiliated
broker/dealer. During the six months ended March 31, 1998, OFDI received
contingent deferred sales charges of $32,969 and $6,164, 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 maintenance of
accounts of their customers that hold Class A shares. During the six months
ended March 31, 1998, OFDI paid $18,765 to an affiliated broker/dealer as
reimbursement for Class A personal service and maintenance expenses.
23 Oppenheimer Global Growth & Income Fund
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited) (Continued)
- --------------------------------------------------------------------------------
4. Management Fees and Other Transactions with Affiliates (continued)
The Fund has adopted a Distribution and Service Plan for Class B shares to
compensate OFDI for its 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 for its services in distributing 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.
Each fee is computed on the average annual net assets of Class B shares,
determined as of the close of each regular business day. During the six months
ended March 31, 1998, OFDI retained $204,674 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 March 31, 1998, OFDI had incurred excess
distribution and servicing costs of $1,639,101 for Class B.
The Fund has adopted a Distribution and Service Plan for Class C
shares to reimburse OFDI for its 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 for its services in
distributing 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. Each fee is 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, 1998, OFDI paid $9,074 to an affiliated
broker/dealer as reimbursement for Class C personal service and maintenance
expenses and retained $102,574 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 distributing shares before the Plan
was terminated. As of March 31, 1998, OFDI had incurred excess distribution and
servicing costs of $557,020 for Class C.
24 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, 1998, the Fund had outstanding forward contracts as follows:
<TABLE>
<CAPTION>
Valuation
Contract As of
Expiration Amount March 31, Unrealized Unrealized
Date (000s) 1998 Appreciation Depreciation
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Contracts to Purchase
- ----------------------
British Pound
Sterling (GBP) 4/1/98 619 GBP $1,037,099 $ -- $ 3,653
German Mark (DEM) 4/1/98 1,708 DEM 923,710 -- 12,215
Indian Rupee (INR) 4/1/98 1,968 INR 49,842 -- 339
------- -------
-- 16,207
------- -------
Contracts to Sell
- ----------------------
British Pound
Sterling (GBP) 5/6/98 11,936 GBP 19,955,052 44,951 --
------- -------
Total Unrealized Appreciation and Depreciation $44,951 $16,207
======= =======
</TABLE>
25 Oppenheimer Global Growth & Income Fund
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited) (Continued)
- --------------------------------------------------------------------------------
6. 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 Oppenheimer funds 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 six months
ended March 31, 1998.
26 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 Advisor OppenheimerFunds, Inc.
- --------------------------------------------------------------------------------
Distributor OppenheimerFunds Distributor, Inc.
- --------------------------------------------------------------------------------
Transfer and Shareholder OppenheimerFunds Services
Servicing Agent
- --------------------------------------------------------------------------------
Custodian of The Bank of New York
Portfolio Securities
- --------------------------------------------------------------------------------
Independent Auditors KPMG Peat Marwick LLP
- --------------------------------------------------------------------------------
Legal Counsel Gordon Altman Butowsky Weitzen Shalov & Wein
The financial statements included herein have been
taken from the records of the Fund without examination
of the independent auditors.
This is a copy of a report to shareholders of
Oppenheimer Global Growth & Income Fund. This report
must be preceded or accompanied by a Prospectus of
Oppenheimer Global Growth & Income Fund. For material
information concerning the Fund, see the Prospectus.
Shares of Oppenheimer funds are not deposits or
obligations of any bank, are not guaranteed by any
bank, and are not insured by the FDIC or any other
agency, and involve investment risks, including
possible loss of the principal amount invested.
27 Oppenheimer Global Growth & Income Fund
<PAGE>
Information and services
- --------------------------------------------------------------------------------
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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]
RS0215.001.0398 May 29, 1998
