<PAGE> 1
ANNUAL REPORT SEPTEMBER 30, 1998
OPPENHEIMER
GLOBAL GROWTH
& INCOME FUND
[PHOTO]
[OPPENHEIMERFUNDS LOGO]
THE RIGHT WAY TO INVEST
<PAGE> 2
CONTENTS
3 President's Letter
4 An Interview
with Your Fund's
Manager
10 Fund Performance
15 Financial
Statements
33 Independent
Auditors' Report
34 Federal
Income Tax
Information
35 Officers and
Trustees
36 Information and
Services
REPORT HIGHLIGHTS
- --------------------------------------------------------------------------------
- - FOUR-STAR MORNINGSTAR RANKING: The Fund's Class A shares have a 4-star ranking
(****) from Morningstar for the 3- and 5-year periods ended September 30, 1998,
among 819 (3-year) and 359 (5-year) international equity funds.(1)
- - ALTHOUGH THE FUND'S PERFORMANCE WAS NEGATIVELY AFFECTED by sharp declines in
Asian markets and other global uncertainties, investments in zero-coupon
Treasury bonds held at that time helped cushion the effect of these events.(2)
- - IN OUR OPINION, THE FUND IS WELL POSITIONED FOR FUTURE GROWTH in strong and
promising economies throughout the world.
AVG ANNUAL TOTAL RETURNS
For the 1-Year Period Ended 9/30/98
CLASS A
Without With
Sales Chg.(3) Sales Chg.(4)
- --------------------------------
- -8.77% -14.01%
- --------------------------------
CLASS B
Without With
Sales Chg.(3) Sales Chg.(4)
- --------------------------------
- -9.42% -13.56%
- --------------------------------
CLASS C
Without With
Sales Chg.(3) Sales Chg.(4)
- --------------------------------
- -9.43% -10.26%
- --------------------------------
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. BECAUSE OF ONGOING
MARKET VOLATILITY, THE FUND'S PERFORMANCE MAY BE SUBJECT TO SUBSTANTIAL
SHORT-TERM CHANGES. FOR UPDATES ON THE FUND'S PERFORMANCE, PLEASE CONTACT YOUR
FINANCIAL ADVISOR, CALL US AT 1-800-525-7048 OR VISIT OUR WEBSITE,
WWW.OPPENHEIMERFUNDS.COM.
1. Source: Morningstar, Inc., 9/30/98. 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. Current star rankings are
based on the weighted average of 3-, 5- and 10-year (if applicable) rankings for
a fund or class and are subject to change monthly. Top 10%: 5 stars. Next 22.5%:
4 stars. Middle 35%: 3 stars. Next 22.5%: 2 stars. Bottom 10%: 1 star.
2. The Fund's portfolio is subject to change.
3. Includes changes in net asset value per share without deducting any sales
charges.
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 contingent deferred sales charge of 1%. Class B and
C shares are subject to a 0.75% asset-based sales charge. An explanation of the
different performance calculations is in the Fund's prospectus.
2 Oppenheimer Global Growth & Income Fund
<PAGE> 3
[PHOTO]
BRIDGET A. MACASKILL
President
Oppenheimer
Global Growth &
Income Fund
DEAR SHAREHOLDER,
- -------------------------------------------------------------------------------
The performance of the financial markets over the past several months could be
viewed as "A Tale of Two Markets." Until mid-July, the excitement surrounding
the stock market's continued ascent to new record highs overshadowed the
favorable economic environment that existed for bonds: low inflation and
declining interest rates. However, since late summer, amid heightened global
concern, stocks declined sharply. Yet, despite continued economic concerns
worldwide, the bond market appeared ready to benefit.
Why have the stock and bond markets responded differently? The financial
crises in Asia and Russia have weakened the earnings of some large U.S.
corporations and have contributed to a slowdown in U.S. economic growth.
Although this slowing economic growth has negatively impacted stocks, it created
a positive environment for bonds. That's because slowing economic growth
generally means fewer inflationary pressures and, as we've recently seen,
interest rates also tend to decline.
What should you do during this period of relative uncertainty? If you have
well-defined, long-term financial goals and an investment strategy designed to
achieve them, we encourage you to stay the course. However, if you feel your
financial plan is out-of-date or incomplete, now is the time to make
improvements. The best way to cope with short-term volatility is to adhere to a
long-term plan that contains proven strategies, such as diversification among
various financial markets, geographic regions, investment styles and individual
securities. A long-term plan will give you the focus and perspective you need to
put short-term volatility in its proper context.
As longstanding advocates of financial planning, we have been encouraged
by our shareholders' rational responses to the latest market events. Many of you
tell us that you have a long-term strategy in place, which includes diversifying
your investment portfolio among a number of different asset classes in
accordance with your tolerance for risk. At OppenheimerFunds, our portfolio
management teams include seasoned professionals who have encountered extreme
market volatility in the past, giving them the perspective required to address
risks and take advantage of opportunities in turbulent markets. In our view,
having a well-defined set of financial goals, a disciplined long-term strategy
and the help of experienced investment professionals are all fundamental parts
of The Right Way to Invest.
Sincerely,
/s/ BRIDGET A. MACASKILL
Bridget A. Macaskill October 21, 1998
3 Oppenheimer Global Growth & Income Fund
<PAGE> 4
"WE TARGETED STOCKS WITH HIGH GROWTH POTENTIAL, FOCUSING ON THE THEMES OF
TECHNOLOGY, THE INTERNET, HEALTHCARE AND LUXURY GOODS."
AN INTERVIEW WITH YOUR FUND'S MANAGER
- --------------------------------------------------------------------------------
HOW DID THE FUND PERFORM DURING THE 12-MONTH PERIOD THAT ENDED SEPTEMBER 30,
1998?
Markets throughout the world experienced sharp declines during the last
twelve months. The Fund's performance reflected these realities. Nevertheless,
our strategy of using bonds to cushion the effects of global volatility helped
to shield shareholders' investments during these difficult times. As a result,
the Fund's Class A shares have a 4-star ranking (****) from Morningstar for the
3- and 5-year periods ended September 30, 1998, among 819 (3-year) and 359
(5-year) international equity funds.(1)
WHY DID INTERNATIONAL MARKETS EXPERIENCE SUCH DIFFICULTY?
The trouble first surfaced in Asian markets more than a year ago, when
speculative real estate investments began to fail. As economic problems spread
throughout the region, many Asian countries were forced to devalue their
currencies. As a result, Asian companies that had borrowed heavily to finance
speculative business development incurred severe losses in foreign exchange
markets. When investors attempted to take their money out of the region,
securities prices plunged.
More recently, deepening political and economic uncertainty in Russia
heightened concerns over the health of other emerging economies throughout the
world. Latin American markets and currencies came under selling pressure as
investors turned to the relative safety of the United States. While the European
and U.S. economies remained
4 Oppenheimer Global Growth & Income Fund
<PAGE> 5
[PHOTO]
PORTFOLIO MANAGEMENT
TEAM (L TO R)
Frank Jennings
(Portfolio Manager),
William Wilby,
George Evans
strong, profits declined among multinational companies because of weakening
foreign demand. As corporate profit growth slowed, average stock prices fell
sharply in the United States. Much of the U.S. equity market's remaining
strength became concentrated among the largest and most visible companies,
though even that segment showed increasing weakness.
HOW DID THE FUND RESPOND TO THESE CHALLENGES?
Generally speaking, the Fund was well positioned to avoid risks and take
advantage of the volatility in the markets. We began decreasing our exposure to
Asian stocks and bonds several years ago because of the region's speculative use
of capital. Therefore, we had little direct exposure to Asia when the crisis hit
last year.
Our concern about the effects of the Asian crisis on the global economy
was also reflected in our use of zero-coupon U.S. Treasury bonds. Prices of
zero-coupon bonds generally move in the opposite direction of interest rates.
1. Source: Morningstar, Inc., 9/30/98. 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. Current star rankings are
based on the weighted average of 3-, 5- and 10-year (if applicable) rankings for
a fund or class and are subject to change monthly. Top 10%: 5 stars. Next 22.5%:
4 stars. Middle 35%: 3 stars. Next 22.5%: 2 stars. Bottom 10%: 1 star.
5 Oppenheimer Global Growth & Income Fund
<PAGE> 6
AVG ANNUAL TOTAL RETURNS
For the Periods Ended 9/30/98(2)
CLASS A
Since
1 year 5 year Inception
- --------------------------------
- -14.01% 10.61% 10.43%
- --------------------------------
CLASS B
Since
1 year 5 year Inception
- --------------------------------
- -13.56% N/A 11.87%
- --------------------------------
CLASS C
Since
1 year 5 year Inception
- --------------------------------
- -10.26% N/A 10.31%
- --------------------------------
AN INTERVIEW WITH YOUR FUND'S MANAGER
- ------------------------------------------------------------------------------
Early in the year, we established a strong position in these instruments in
anticipation that Asia's problems would slow corporate growth throughout the
world and put downward pressure on interest rates. After long-term interest
rates indeed fell during the first six months of the year, we were able to sell
most of that position at a profit. We then used those resources to take
advantage of the growing opportunities among weakened equities and emerging
market bonds.
WHAT OPPORTUNITIES DID YOU IDENTIFY AMONG EQUITIES?
We took a two-pronged approach to equities. On one hand, we targeted stocks with
high growth potential, focusing on the themes of technology, the Internet,
healthcare and luxury goods. The stock prices of many good companies in these
sectors were severely weakened by losses in Asia. While these losses restrained
the Fund's performance, they gave us the opportunity to increase our holdings in
good companies with good business prospects at bargain prices. Our top holdings
included a number of market leaders and innovators that fit this description.
2. 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. Class B and C shares are subject to an annual 0.75%
asset-based sales charge. An explanation of the different performance
calculations is in the Fund's prospectus.
6 Oppenheimer Global Growth & Income Fund
<PAGE> 7
Among them were such diverse companies as QUALCOMM, Inc., a digital wireless
company; Hasbro, Inc., a toy company; and Coherent, Inc., a leader in laser
technology. We found similar opportunities overseas among companies with
excellent prospects, such as Porsche AG, Allied Domecq plc and Wella AG.
Our second target area among equities focused on stocks offering very high
dividends with the possibility of capital appreciation. In particular, the
United Kingdom offered a number of attractive high-dividend investment
opportunities in cyclical areas of industry such as engineering, housing and
broadcasting. For example, we acquired a substantial position in one of the
largest house building companies in the United Kingdom. The stock of this
company pays a high dividend and offers substantial appreciation potential,
given the U.K.'s favorable regulatory environment for builders and the growing
demand for housing in today's low-interest-rate environment. We also identified
attractive, high-dividend stocks among some of Asia's depressed markets.
WITHIN THE FUND'S BOND PORTFOLIO, WHY DID YOU SHIFT ASSETS OUT OF ZERO-COUPON
TREASURIES?
With zero-coupon bonds up approximately 40% in the first seven months of the
year, we believed it was prudent to lock in our profits from these instruments.
At the same time, spreads grew among short-term emerging market bonds, making
them an increasingly attractive investment.
7 Oppenheimer Global Growth & Income Fund
<PAGE> 8
AN INTERVIEW WITH YOUR FUND'S MANAGER
- ------------------------------------------------------------------------------
The spread is the difference in yield between such bonds and far less risky
Treasury bonds. We sought to capitalize on this opportunity by investing in
bonds of countries we believe have the resources and political stability to
thrive, such as Korea, Thailand, Argentina and Brazil.
WHAT IS YOUR OUTLOOK FOR THE FUTURE?
We remain cautiously optimistic about prospects for global growth over the
coming months. That's why we have taken a more confident stance with the Fund's
investments in emerging markets. Although Asian economies continue to struggle,
the rest of the world has thus far weathered the situation fairly well. Latin
American and Eastern European nations, with the notable exception of Russia, are
resisting the forces of devaluation. In Europe, companies are beginning to
benefit from the management changes and corporate restructurings that helped
U.S. companies become more efficient over the past decade. And in the United
States, consumer spending continues to drive strong economic performance.
We view this period as a significant, but necessary, time of transition.
It demonstrates that international investing carries certain additional risks,
such as adverse currency fluctuation. The majority of the world's population is
moving from socialism toward self-reliance. Japan is transforming itself from a
manufacturing economy into a modern service economy. Emerging nations in Asia,
Eastern Europe and Latin America are attempting to join
3. Portfolio is subject to change. Percentages are as of September 30, 1998, and
are based on total market value of investments.
4. Portfolio is subject to change. Percentages are as of September 30, 1998, and
are based on total market value of stock holdings.
8 Oppenheimer Global Growth & Income Fund
<PAGE> 9
ASSET ALLOCATION(3)
[PIE CHART]
- - Stocks 87.0%
- - Bonds 13.0
the developed world. We believe these trends and forces will drive the
continuing, long-term growth of the global economy. We remain dedicated to our
disciplined approach of participating in that growth while cushioning the
effects of global volatility...which is what makes Oppenheimer Global Growth &
Income Fund part of The Right Way to Invest.
<TABLE>
<CAPTION>
TOP 10 COUNTRY HOLDINGS(3)
- ----------------------------------------------------------
<S> <C>
United States 33.8%
- ----------------------------------------------------------
Great Britain 23.0
- ----------------------------------------------------------
Germany 8.9
- ----------------------------------------------------------
France 6.6
- ----------------------------------------------------------
Italy 5.4
- ----------------------------------------------------------
Singapore 4.1
- ----------------------------------------------------------
Mexico 4.0
- ----------------------------------------------------------
Japan 3.4
- ----------------------------------------------------------
Argentina 2.3
- ----------------------------------------------------------
China 2.1
- ----------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
TOP 10 STOCK HOLDINGS(4)
- ----------------------------------------------------------
<S> <C>
National Semiconductor Corp. 5.5%
- ----------------------------------------------------------
Allied Domecq plc 4.5
- ----------------------------------------------------------
QUALCOMM, Inc. 4.5
- ----------------------------------------------------------
Porsche AG, Preference 4.4
- ----------------------------------------------------------
Hasbro, Inc. 4.2
- ----------------------------------------------------------
Banca Commerciale Italiana 3.8
- ----------------------------------------------------------
Reckitt & Colman plc 3.7
- ----------------------------------------------------------
Williams plc 3.6
- ----------------------------------------------------------
Societe BIC SA 3.3
- ----------------------------------------------------------
Advanced Micro Devices, Inc. 3.2
- ----------------------------------------------------------
</TABLE>
9 Oppenheimer Global Growth & Income Fund
<PAGE> 10
FUND PERFORMANCE
- -------------------------------------------------------------------------------
HOW HAS THE FUND PERFORMED? Below is a discussion by the Manager of the
Fund's performance during its fiscal year ended September 30, 1998, followed by
a graphical comparison of the Fund's performance to an appropriate broad-based
market index and narrower market index.
- MANAGEMENT'S DISCUSSION OF PERFORMANCE. During the past fiscal year that
ended September 30, 1998, Oppenheimer Global Growth & Income Fund's performance
was supported by low rates of inflation leading to strong bond performance,
especially in U.S. Treasury securities. Specifically, the Fund benefited from
significant holdings of zero-coupon Treasury bonds from January through July of
1998. However, weakness in Asian economies and pressures on earnings of
multinational companies introduced greater volatility into equities markets,
which negatively affected many of the Fund's stock holdings. Toward the end of
the period, we reallocated the bond portion of the portfolio from zero-coupon
Treasuries to short-term emerging market bonds that we believe hold greater
potential for future growth. We divided the equity portion of the portfolio
between stocks providing high yields and stocks with high growth potential in
technology, the Internet, healthcare and luxury goods. The Fund's portfolio and
our management strategies are subject to change.
- COMPARING THE FUND'S PERFORMANCE TO THE MARKET. The graphs that follow
show the performance of a hypothetical $10,000 investment in Class A, Class B
and Class C shares of the Fund held until September 30, 1998. In the case of
Class A shares, performance is measured from inception of the Class on October
22, 1990. In the case of Class B shares, performance is measured from inception
of the Class on October 10, 1995. In the case of Class C shares, performance is
measured from inception of the Class on December 1, 1993.
10 Oppenheimer Global Growth & Income Fund
<PAGE> 11
The graphs assume that all dividends and capital gains distributions were
reinvested in additional shares. The Fund's performance reflects the deduction
of the 5.75% maximum initial sales charge on Class A shares, the 5% (1-year) and
3% (since inception) applicable contingent deferred sales charge for Class B,
and the 1% (1-year) contingent deferred sales charge for Class C shares.
The Fund's performance is compared to two indices because the Fund invests
its assets in both stocks and debt securities, and in the Manager's view, no one
index adequately combines both types of investments globally. Performance is
compared to the Morgan Stanley Capital International (MSCI) World Index, an
unmanaged index of issuers listed on the stock exchanges of 20 foreign countries
and the United States. It is widely recognized as a measure of global stock
market performance. Because the Fund also invests in income-producing
securities, the Fund's performance is also compared to the performance of the
Lehman Brothers Aggregate Bond Index, an unmanaged index of U.S. Treasury and
government agency issues, investment grade corporate bond issues and fixed rate
mortgage-backed securities. That index is widely regarded as a measure of the
performance of the overall bond market.
Index performance reflects the reinvestment of dividends but does not
consider the effect of capital gains or transaction costs, and none of the data
in the graphs that follow shows the effect of taxes. The Fund's performance
reflects the effects of Fund business and operating expenses. While index
comparisons may be useful to provide a benchmark for the Fund's performance, it
must be noted that the Fund's investments are not limited to the securities or
countries in the indices, and its fixed income investments are not limited to
investment grade issues.
11 Oppenheimer Global Growth & Income Fund
<PAGE> 12
FUND PERFORMANCE
- -------------------------------------------------------------------------------
CLASS A SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Global Growth & Income Fund (Class A), MSCI World Index
and Lehman Brothers Aggregate Bond Index
[The following table was originally a line graph in the printed materials.]
<TABLE>
<CAPTION>
Oppenheimer Global Growth Lehman Brothers
& Income Fund (Class A) MSCI World Index Aggregate Bond Index
- -----------------------------------------------------------------------------
<S> <C> <C>
$ 9,425 $10,000 $10,000
10,531 11,456 11,454
10,345 11,407 12,891
12,517 13,790 14,177
14,265 14,903 13,720
15,325 17,134 15,649
17,359 19,567 16,416
24,100 24,386 18,011
21,988 24,511 20,084
</TABLE>
AVERAGE ANNUAL TOTAL RETURN OF CLASS A SHARES OF THE FUND AT 9/30/98(1)
1 YEAR -14.01% 5 YEAR 10.61% LIFE 10.43%
CLASS B SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Global Growth & Income Fund (Class B), MSCI World Index and Lehman
Brothers Aggregate Bond Index
[The following table was originally a line graph in the printed materials.]
<TABLE>
<CAPTION>
Oppenheimer Global Growth Lehman Brothers
& Income Fund (Class B) MSCI World Index Aggregate Bond Index
- -----------------------------------------------------------------------------
<S> <C> <C>
$10,000 $10,000 $10,000
11,432 11,420 10,490
15,742 14,232 11,509
13,959 14,305 12,834
</TABLE>
AVERAGE ANNUAL TOTAL RETURN OF CLASS B SHARES OF THE FUND AT 9/30/98(2)
1 YEAR -13.56% LIFE 11.87%
12 Oppenheimer Global Growth & Income Fund
<PAGE> 13
CLASS C SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Global Growth & Income Fund (Class C), MSCI World Index and Lehman
Brothers Aggregate Bond Index
[The following table was originally a line graph in the printed materials.]
<TABLE>
<CAPTION>
Oppenheimer Glbal Growth MSCI World Index Lehman Brothers
& Income Fund (Class C) Aggregate Bond Index
<S> <C> <C>
$10,000 $10,000 $10,000
10,741 11,144 9,724
11,451 12,813 11,092
12,876 14,632 11,635
17,737 18,236 12,765
16,064 18,329 14,235
</TABLE>
AVERAGE ANNUAL TOTAL RETURN OF CLASS C SHARES OF THE FUND AT 9/30/98(3)
1 YEAR -10.26% LIFE 10.31%
The returns and the ending account values in the graphs show change in share
value and include reinvestment of all dividends and capital gains distributions.
The performance information for both indices in the graphs begins on 10/31/90
for Class A, 10/31/95 for Class B and 11/30/93 for Class C.
1. The inception date of the Fund's Class A shares was 10/22/90. The average
annual total returns are shown net of the applicable 5.75% maximum initial sales
charge.
2. Class B shares of the Fund were first publicly offered on 10/10/95. The
average annual total returns are shown net of the applicable 5% and 3%
contingent deferred sales charges, respectively, for the one-year period and the
life of the class. The ending account value in the graph is net of the
applicable 3% contingent deferred sales charge.
3. Class C shares of the Fund were first publicly offered on 12/1/93. The
average annual total returns are shown net of the applicable 1% contingent
deferred sales charge for the one-year period. Past performance is not
predictive of future performance. Graphs are not drawn to the same scale.
13 Oppenheimer Global Growth & Income Fund
<PAGE> 14
FINANCIALS
- -------------------------------------------------------------------------------
14 Oppenheimer Global Growth & Income Fund
<PAGE> 15
STATEMENT OF INVESTMENTS September 30, 1998
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- ----------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS--83.7%
- ----------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS--20.1%
- ----------------------------------------------------------------------------------------------------
AUTOS & HOUSING--7.6%
Borg-Warner Automotive, Inc. 90,000 $ 3,335,625
- ----------------------------------------------------------------------------------------------------
George Wimpey plc 5,000,000 8,199,619
- ----------------------------------------------------------------------------------------------------
Porsche AG, Preference 8,000 13,976,692
- ----------------------------------------------------------------------------------------------------
Volkswagen AG, Preference 50,000 2,288,564
-------------
27,800,500
-------------
LEISURE & ENTERTAINMENT--6.5%
Hasbro, Inc. 450,000 13,275,000
- ----------------------------------------------------------------------------------------------------
IHOP Corp.(1) 80,000 2,950,000
- ----------------------------------------------------------------------------------------------------
Mandarin Oriental International Ltd. 8,000,000 3,760,000
- ----------------------------------------------------------------------------------------------------
Piccadilly Cafeterias, Inc. 100,000 1,093,750
- ----------------------------------------------------------------------------------------------------
Societe du Louvre 36,000 2,748,429
-------------
23,827,179
- ----------------------------------------------------------------------------------------------------
MEDIA--5.4%
Canal Plus 16,000 3,885,240
- ----------------------------------------------------------------------------------------------------
Carlton Communications plc 632,000 4,296,090
- ----------------------------------------------------------------------------------------------------
Nippon Television Network Corp. 15,000 4,196,265
- ----------------------------------------------------------------------------------------------------
Prosieben Media AG, Preferred 40,000 2,201,808
- ----------------------------------------------------------------------------------------------------
Singapore Press Holdings Ltd. 600,000 4,986,015
-------------
19,565,418
- ----------------------------------------------------------------------------------------------------
RETAIL: GENERAL--0.6%
Hermes International SA 30,000 1,980,445
- ----------------------------------------------------------------------------------------------------
CONSUMER NON-CYCLICALS--16.4%
- ----------------------------------------------------------------------------------------------------
BEVERAGES--6.4%
Allied Domecq plc 2,000,000 14,444,924
- ----------------------------------------------------------------------------------------------------
Cadbury Schweppes plc 300,000 3,884,835
- ----------------------------------------------------------------------------------------------------
Highland Distilleries Co. plc 900,000 3,624,826
- ----------------------------------------------------------------------------------------------------
Remy Cointreau 100,000 1,555,809
-------------
23,510,394
- ----------------------------------------------------------------------------------------------------
FOOD--2.1%
Dairy Farm International Holdings Ltd. 6,000,000 6,360,000
- ----------------------------------------------------------------------------------------------------
Great Atlantic & Pacific Tea Co., Inc. (The) 56,900 1,379,825
-------------
7,739,825
</TABLE>
15 Oppenheimer Global Growth & Income Fund
<PAGE> 16
STATEMENT OF INVESTMENTS (Continued)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- ---------------------------------------------------------------------------------------------------
<S> <C> <C>
HEALTHCARE/DRUGS--5.3%
Agouron Pharmaceuticals, Inc.(1) 150,000 $ 5,165,625
- ---------------------------------------------------------------------------------------------------
Cheminor Drugs Ltd. 177,850 666,894
- ---------------------------------------------------------------------------------------------------
Gedeon Richter Rt., GDR, Registered S Shares 30,000 900,000
- ---------------------------------------------------------------------------------------------------
Gilead Sciences, Inc.(1) 170,000 3,676,250
- ---------------------------------------------------------------------------------------------------
Millennium Pharmaceuticals, Inc.(1) 260,000 4,517,500
- ---------------------------------------------------------------------------------------------------
Neurogen Corp.(1) 260,000 4,290,000
------------
19,216,269
- ---------------------------------------------------------------------------------------------------
HOUSEHOLD GOODS--2.6%
Pond's (India) Ltd. 200 5,711
- ---------------------------------------------------------------------------------------------------
Wella AG, Preference 13,000 9,434,865
------------
9,440,576
- ---------------------------------------------------------------------------------------------------
ENERGY--0.5%
- ---------------------------------------------------------------------------------------------------
ENERGY SERVICES & PRODUCERS--0.5%
Cia de Eletricidade do Estado da Bahia, Preference 58,300,000 1,868,747
- ---------------------------------------------------------------------------------------------------
FINANCIAL--10.8%
- ---------------------------------------------------------------------------------------------------
BANKS--8.0%
Banca Commerciale Italiana 2,000,000 12,012,466
- ---------------------------------------------------------------------------------------------------
Cie Financiere de Paribas(1) 60,000 3,232,943
- ---------------------------------------------------------------------------------------------------
Citicorp 40,000 3,717,500
- ---------------------------------------------------------------------------------------------------
Hansabank Ltd.(1) 100,000 432,337
- ---------------------------------------------------------------------------------------------------
Industrial Finance Corp. of Thailand (The) 7,000,000 1,381,229
- ---------------------------------------------------------------------------------------------------
Istituto Bancario San Paolo di Torino 600,000 7,534,267
- ---------------------------------------------------------------------------------------------------
Merita Ltd., Cl. A 200,000 1,017,958
- ---------------------------------------------------------------------------------------------------
29,328,700
- ---------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL--2.8%
Edinburgh Fund Managers Group 150,000 684,434
- ---------------------------------------------------------------------------------------------------
Federated Investors, Inc., Cl. B 100,000 1,437,500
- ---------------------------------------------------------------------------------------------------
Hang Lung Development Co. 5,000,000 4,387,947
- ---------------------------------------------------------------------------------------------------
ICICI Ltd. 3,000,000 3,767,441
------------
10,277,322
- ---------------------------------------------------------------------------------------------------
INDUSTRIAL--13.3%
- ---------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--2.1%
Halma plc 4,325,000 7,607,164
- ---------------------------------------------------------------------------------------------------
INDUSTRIAL MATERIALS--1.7%
Hanson plc 1,000,000 6,338,773
</TABLE>
16 Oppenheimer Global Growth & Income Fund
<PAGE> 17
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- ---------------------------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL SERVICES--1.1%
Cookson Group plc 1,000,000 $ 1,860,846
- ---------------------------------------------------------------------------------------------------
Grupo Elektra, SA de C.V., Sponsored GDR 400,000 1,600,000
- ---------------------------------------------------------------------------------------------------
Williams plc-B 1,000,000 577,797
------------
4,038,643
- ---------------------------------------------------------------------------------------------------
MANUFACTURING--8.3%
Friedrich Grohe AG 16,869 4,642,787
- ---------------------------------------------------------------------------------------------------
Morgan Crucible Co. plc 500,000 2,464,134
- ---------------------------------------------------------------------------------------------------
Societe BIC SA 190,000 10,580,037
- ---------------------------------------------------------------------------------------------------
Steinway Musical Instruments, Inc.(1) 60,000 1,320,000
- ---------------------------------------------------------------------------------------------------
Williams plc 1,923,076 11,405,602
------------
30,412,560
- ---------------------------------------------------------------------------------------------------
TRANSPORTATION--0.1%
International Container Terminal Services, Inc.(1) 8,805,000 301,885
- ---------------------------------------------------------------------------------------------------
TECHNOLOGY--20.3%
- ---------------------------------------------------------------------------------------------------
COMPUTER HARDWARE--3.0%
Casio Computer Co. Ltd. 1,300,000 8,292,201
- ---------------------------------------------------------------------------------------------------
Psion plc 400,000 2,518,515
------------
10,810,716
- ---------------------------------------------------------------------------------------------------
COMPUTER SOFTWARE/SERVICES--2.4%
Autonomy Corp. plc(1) 260,000 828,880
- ---------------------------------------------------------------------------------------------------
JBA Holdings plc 700,000 3,330,830
- ---------------------------------------------------------------------------------------------------
Lernout & Hauspie Speech Products NV(1) 60,000 2,411,250
- ---------------------------------------------------------------------------------------------------
Netscape Communications Corp.(1) 100,000 2,187,500
------------
8,758,460
- ---------------------------------------------------------------------------------------------------
ELECTRONICS--10.9%
Advanced Micro Devices, Inc.(1) 550,000 10,209,375
- ---------------------------------------------------------------------------------------------------
Applied Materials, Inc.(1) 100,000 2,525,000
- ---------------------------------------------------------------------------------------------------
Coherent, Inc.(1) 1,050,000 9,810,937
- ---------------------------------------------------------------------------------------------------
National Semiconductor Corp.(1) 1,800,000 17,437,500
------------
39,982,812
- ---------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS/TECHNOLOGY--4.0%
Leap Wireless International, Inc.(1) 75,000 351,562
- ---------------------------------------------------------------------------------------------------
QUALCOMM, Inc.(1) 300,000 14,381,250
------------
14,732,812
- ---------------------------------------------------------------------------------------------------
UTILITIES--2.3%
- ---------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES--2.3%
Hawaiian Electric Industries, Inc. 200,000 8,250,000
------------
Total Common Stocks (Cost $349,659,447) 305,789,200
</TABLE>
17 Oppenheimer Global Growth & Income Fund
<PAGE> 18
STATEMENT OF INVESTMENTS (Continued)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
===================================================================================================
<S> <C> <C>
PREFERRED STOCKS--3.3%
- ---------------------------------------------------------------------------------------------------
Reckitt & Colman plc, 9.50% Cv. Capital Bonds, 3/31/05
(Cost $11,048,489) 3,800,000 $ 11,849,936
<CAPTION>
UNITS
===================================================================================================
RIGHTS, WARRANTS AND CERTIFICATES--0.0%
- ---------------------------------------------------------------------------------------------------
<S> <C> <C>
American Satellite Network, Inc. Wts., Exp. 6/99 (Cost $0) 3,875 --
<CAPTION>
FACE
AMOUNT(2)
===================================================================================================
<S> <C> <C>
U.S. GOVERNMENT OBLIGATIONS--1.3%
- ---------------------------------------------------------------------------------------------------
U.S. Treasury Bonds, STRIPS, 6.151%, 8/15/25(3)
(Cost $3,927,503) $ 20,000,000 4,865,520
===================================================================================================
FOREIGN GOVERNMENT OBLIGATIONS--7.4%
- ---------------------------------------------------------------------------------------------------
Argentina (Republic of) Bonos del Tesoro Bonds, 8.75%, 5/9/02 10,000,000 8,410,000
- ---------------------------------------------------------------------------------------------------
Brazil (Federal Republic of) Eligible Interest Bonds,
6.625%, 4/15/06(4) 9,700,000 5,650,250
- ---------------------------------------------------------------------------------------------------
Bonos de la Tesoreria de la Federcion, Zero Coupon, 23.91%,
6/3/99(3) MXP 164,707,430 12,872,530
-------------
Total Foreign Government Obligations (Cost $33,690,683) 26,932,780
===================================================================================================
NON-CONVERTIBLE CORPORATE BONDS AND NOTES--4.2%
- ---------------------------------------------------------------------------------------------------
Industrial Bank of Japan Preferred Capital Co. (The) LLC,
8.79% Bonds, 12/29/49(4)(5) 10,000,000 7,312,660
- ---------------------------------------------------------------------------------------------------
Matahari International Finance Co. BV, 11.25% Gtd. Nts., 3/15/01 1,500,000 528,750
- ---------------------------------------------------------------------------------------------------
Bangkok Bank Public Co. Ltd., 7.25% Sub. Nts., 9/15/05(5) 6,175,000 3,361,874
- ---------------------------------------------------------------------------------------------------
Korea Development Bank, 7.125% Bonds, 9/17/01 5,000,000 4,273,365
-------------
Total Non-Convertible Corporate Bonds and Notes (Cost $20,630,724) 15,476,649
===================================================================================================
STRUCTURED INSTRUMENTS--0.0%
- ---------------------------------------------------------------------------------------------------
Deutsche Morgan Grenfell, Russian Federal Loan Floating Rate
Linked Nts., Series 5023, 14%, 9/12/01 (Cost $1,979,061)(6) 2,000,000 20,000
- ---------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $420,935,907) 99.9% 364,934,085
- ---------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 0.1 519,027
------------ -------------
NET ASSETS 100.0% $365,453,112
============ =============
</TABLE>
18 Oppenheimer Global Growth & Income Fund
<PAGE> 19
- --------------------------------------------------------------------------------
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 $123,489,883 33.8%
- -----------------------------------------------------------------------------------
Great Britain 83,917,205 23.0
- -----------------------------------------------------------------------------------
Germany 32,544,715 8.9
- -----------------------------------------------------------------------------------
France 23,982,903 6.6
- -----------------------------------------------------------------------------------
Italy 19,546,732 5.3
- -----------------------------------------------------------------------------------
Singapore 15,106,015 4.1
- -----------------------------------------------------------------------------------
Mexico 14,472,530 4.0
- -----------------------------------------------------------------------------------
Japan 12,488,466 3.4
- -----------------------------------------------------------------------------------
Argentina 8,410,000 2.3
- -----------------------------------------------------------------------------------
China 7,749,820 2.1
- -----------------------------------------------------------------------------------
Brazil 7,518,997 2.1
- -----------------------------------------------------------------------------------
India 4,440,045 1.2
- -----------------------------------------------------------------------------------
Korea, Republic of (South) 4,273,365 1.2
- -----------------------------------------------------------------------------------
Belgium 2,411,250 0.7
- -----------------------------------------------------------------------------------
Finland 1,450,295 0.4
- -----------------------------------------------------------------------------------
Thailand 1,381,229 0.4
- -----------------------------------------------------------------------------------
Hungary 900,000 0.2
- -----------------------------------------------------------------------------------
The Netherlands 528,750 0.1
- -----------------------------------------------------------------------------------
Philippines 301,885 0.1
- -----------------------------------------------------------------------------------
Russia 20,000 0.1
------------ -----
Total $364,934,085 100.0%
============ =====
</TABLE>
1. Non-income producing security.
2. Face amount is reported in U.S. Dollars, except for those denoted in the
following currency: MXP--Mexican Peso
3. For zero coupon bonds, the interest rate shown is the effective yield on the
date of purchase.
4. Represents the current interest rate for a variable rate security.
5. 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 $10,674,534 or 2.92% of the Fund's net
assets as of September 30, 1998.
6. Identifies issues considered to be illiquid or restricted--See Note 6 of
Notes to Financial Statements.
See accompanying Notes to Financial Statements.
19 Oppenheimer Global Growth & Income Fund
<PAGE> 20
STATEMENT OF ASSETS AND LIABILITIES September 30, 1998
<TABLE>
================================================================================================
<S> <C>
ASSETS
Investments, at value (cost $420,935,907)--see accompanying statement $364,934,085
- ------------------------------------------------------------------------------------------------
Unrealized appreciation on forward foreign currency
exchange contracts--Note 5 10,820
- ------------------------------------------------------------------------------------------------
Receivables:
Investments sold 4,602,049
Interest and dividends 2,023,491
Shares of beneficial interest sold 854,317
- ------------------------------------------------------------------------------------------------
Other 5,651
------------
Total assets 372,430,413
================================================================================================
LIABILITIES
Bank overdraft 2,889,201
- ------------------------------------------------------------------------------------------------
Unrealized depreciation on forward foreign currency
exchange contracts--Note 5 1,970
- ------------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 3,031,003
Shares of beneficial interest redeemed 445,594
Distribution and service plan fees 245,817
Trustees' fees--Note 1 106,962
Shareholder reports 91,443
Transfer and shareholder servicing agent fees 66,199
Custodian fees 31,790
Other 67,322
------------
Total liabilities 6,977,301
================================================================================================
NET ASSETS $365,453,112
============
================================================================================================
COMPOSITION OF NET ASSETS
Paid-in capital $362,568,712
- ------------------------------------------------------------------------------------------------
Overdistributed net investment income (61,900)
- ------------------------------------------------------------------------------------------------
Accumulated net realized gain on investments and
foreign currency transactions 58,945,777
- ------------------------------------------------------------------------------------------------
Net unrealized depreciation on investments and translation of
assets and liabilities denominated in foreign currencies (55,999,477)
------------
Net assets $365,453,112
============
</TABLE>
20 Oppenheimer Global Growth & Income Fund
<PAGE> 21
<TABLE>
==============================================================================================
<S> <C>
NET ASSET VALUE PER SHARE
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$212,765,042 and 13,274,017 shares of beneficial interest outstanding) $16.03
Maximum offering price per share (net asset value plus sales charge of
5.75% of offering price) $17.01
- ----------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales
charge) and offering price per share (based on net assets of $81,865,927
and 5,132,130 shares of beneficial interest outstanding) $15.95
- ----------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales
charge) and offering price per share (based on net assets of $70,822,143
and 4,440,884 shares of beneficial interest outstanding) $15.95
</TABLE>
See accompanying Notes to Financial Statements.
21 Oppenheimer Global Growth & Income Fund
<PAGE> 22
STATEMENT OF OPERATIONS For the Year Ended September 30, 1998
<TABLE>
=============================================================================================
<S> <C>
INVESTMENT INCOME
Interest $ 6,718,016
- ---------------------------------------------------------------------------------------------
Dividends (net of foreign withholding taxes of $20,506) 3,907,556
-------------
Total income 10,625,572
=============================================================================================
EXPENSES
Management fees--Note 4 2,725,941
- ---------------------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 522,539
Class B 628,891
Class C 654,625
- ---------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 642,168
- ---------------------------------------------------------------------------------------------
Custodian fees and expenses 193,975
- ---------------------------------------------------------------------------------------------
Shareholder reports 150,242
- ---------------------------------------------------------------------------------------------
Registration and filing fees 47,070
- ---------------------------------------------------------------------------------------------
Trustees' fees and expenses--Note 1 44,739
- ---------------------------------------------------------------------------------------------
Legal, auditing and other professional fees 28,834
- ---------------------------------------------------------------------------------------------
Insurance expenses 8,920
- ---------------------------------------------------------------------------------------------
Other 12,892
-------------
Total expenses 5,660,836
=============================================================================================
NET INVESTMENT INCOME 4,964,736
=============================================================================================
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments 66,576,152
Foreign currency transactions (3,045,942)
-------------
Net realized gain 63,530,210
- ---------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments (120,495,986)
Translation of assets and liabilities denominated in foreign currencies 8,195,544
-------------
Net change (112,300,442)
-------------
Net realized and unrealized loss (48,770,232)
=============================================================================================
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $ (43,805,496)
==============
</TABLE>
See accompanying Notes to Financial Statements.
22 Oppenheimer Global Growth & Income Fund
<PAGE> 23
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30,
1998 1997
================================================================================================================
<S> <C> <C>
OPERATIONS
Net investment income $ 4,964,736 $ 4,552,606
- ----------------------------------------------------------------------------------------------------------------
Net realized gain 63,530,210 17,125,069
- ----------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation (112,300,442) 47,383,083
------------- ------------
Net increase (decrease) in net assets resulting from operations (43,805,496) 69,060,758
================================================================================================================
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income:
Class A (6,864,117) (3,458,736)
Class B (1,464,595) (340,317)
Class C (1,546,097) (732,211)
- ----------------------------------------------------------------------------------------------------------------
Dividends in excess of net investment income:
Class A (234,876) --
Class B (68,516) --
Class C (71,224) --
- ----------------------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (10,520,713) (10,399,198)
Class B (2,432,947) (812,462)
Class C (3,038,690) (3,233,192)
================================================================================================================
BENEFICIAL INTEREST TRANSACTIONS
Net increase in net assets resulting from beneficial
interest transactions--Note 2:
Class A 71,740,105 27,284,959
Class B 60,313,670 23,583,896
Class C 28,380,691 10,061,688
================================================================================================================
NET ASSETS
Total increase 90,387,195 111,015,185
- ----------------------------------------------------------------------------------------------------------------
Beginning of period 275,065,917 164,050,732
------------- ------------
End of period [including undistributed (overdistributed) net
investment income of $(61,900) and $4,780,876, respectively] $ 365,453,112 $275,065,917
============= ============
</TABLE>
See accompanying Notes to Financial Statements.
23 Oppenheimer Global Growth & Income Fund
<PAGE> 24
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A
-------------------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
1998 1997 1996 1995 1994
===================================================================================================================
<S> <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
- -------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .29 .40 .47 .45 .33
Net realized and unrealized gain (loss) (1.90) 5.12 1.40 .54 1.62
------ ------ ------ ------ ------
Total income (loss) from investment
operations (1.61) 5.52 1.87 .99 1.95
- -------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.63) (.40) (.40) (.40) (.35)
Dividends in excess of net investment
income (.02) -- -- -- --
Distributions from net realized gain (1.07) (1.38) (.83) (.82) (.48)
------ ------ ------ ------ ------
Total dividends and distributions to
shareholders (1.72) (1.78) (1.23) (1.22) (.83)
- -------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $16.03 $19.36 $15.62 $14.98 $15.21
====== ====== ====== ====== ======
===================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(3) (8.77)% 38.83% 13.28% 7.43% 13.96%
===================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(in thousands) $212,765 $181,716 $120,214 $113,341 $124,017
- -------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $216,009 $141,582 $115,186 $120,267 $117,164
- -------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 1.62% 2.47% 2.65% 3.09% 2.44%
Expenses 1.36% 1.43% 1.52% 1.63% 1.49%
- -------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 117.4% 90.5% 207.8% 135.2% 87.4%
</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.
24 Oppenheimer Global Growth & Income Fund
<PAGE> 25
<TABLE>
<CAPTION>
CLASS B CLASS C
- ------------------------------------- -------------------------------------------------------------------
YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30,
1998 1997 1996(2) 1998 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
- ---------------------------------------------------------------------------------------------------------------
.23 .30 .36 .17 .28 .35 .35 .22
(1.96) 5.06 1.63 (1.91) 5.08 1.40 .53 .87
------ ------ ------ ------ ------ ------ ------ ------
(1.73) 5.36 1.99 (1.74) 5.36 1.75 .88 1.09
- ---------------------------------------------------------------------------------------------------------------
(.51) (.28) (.31) (.48) (.27) (.29) (.31) (.29)
(.01) -- -- (.02) -- -- -- --
(1.07) (1.38) (.83) (1.07) (1.38) (.83) (.82) (.48)
------ ------ ------ ------ ------ ------ ------ ------
(1.59) (1.66) (1.14) (1.57) (1.65) (1.12) (1.13) (.77)
- ---------------------------------------------------------------------------------------------------------------
$15.95 $19.27 $15.57 $15.95 $19.26 $15.55 $14.92 $15.17
====== ====== ======= ======= ======= ====== ====== ======
===============================================================================================================
(9.42)% 37.69% 14.33% (9.43)% 37.74% 12.45% 6.61% 7.41%
===============================================================================================================
$81,866 $37,071 $8,131 $70,822 $56,278 $35,706 $28,295 $17,008
- ---------------------------------------------------------------------------------------------------------------
$63,012 $17,474 $3,815 $65,502 $43,338 $31,371 $22,211 $ 7,896
- ---------------------------------------------------------------------------------------------------------------
1.42% 1.77% 1.64%(4) 0.86% 1.71% 1.87% 2.36% 1.85%(4)
2.11% 2.15% 2.28%(4) 2.12% 2.18% 2.28% 2.39% 2.44%(4)
- ---------------------------------------------------------------------------------------------------------------
117.4% 90.5% 207.8% 117.4% 90.5% 207.8% 135.2% 87.4%
</TABLE>
4. Annualized.
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, 1998 were $500,679,012 and $381,736,934, respectively.
See accompanying Notes to Financial Statements.
25 Oppenheimer Global Growth & Income Fund
<PAGE> 26
NOTES TO FINANCIAL STATEMENTS
================================================================================
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Global Growth & Income Fund (the Fund) is registered under the
Investment Company Act of 1940, as amended, as a diversified, open-end
management investment company. The Fund's investment objective is to seek
capital appreciation consistent with preservation of principal while providing
current income. The Fund may invest in common stocks, convertible securities and
fixed income securities. The Fund's investment advisor is OppenheimerFunds, Inc.
(the Manager). The Fund offers Class A, Class B and Class C shares. Class A
shares are sold with a front-end sales charge. Class B and Class C shares may be
subject to a contingent deferred sales charge. All 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.
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.
26 Oppenheimer Global Growth & Income Fund
<PAGE> 27
================================================================================
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, GAINS AND LOSSES. Income, expenses (other than
those attributable to a specific class), 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, 1998, a provision of $18,224 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 $100,388 as of September 30, 1998.
The Board of Trustees has adopted a deferred compensation plan for
independent Trustees that enables Trustees to elect to defer receipt of all or a
portion of annual fees they are entitled to receive from the Fund. Under the
plan, the compensation deferred is periodically adjusted as though an equivalent
amount had been invested for the Trustee in shares of one or more Oppenheimer
funds selected by the Trustee. The amount paid to the Trustee under the plan
will be determined based upon the performance of the selected funds. Deferral of
Trustees' fees under the plan will not affect the net assets of the Fund, and
will not materially affect the Fund's assets, liabilities or net income per
share.
27 Oppenheimer Global Growth & Income Fund
<PAGE> 28
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, 1998, amounts have been reclassified to reflect a
decrease in undistributed net investment income of $441,913. Accumulated net
realized gain was decreased by the same amount.
- --------------------------------------------------------------------------------
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.
28 Oppenheimer Global Growth & Income Fund
<PAGE> 29
================================================================================
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, 1998 YEAR ENDED SEPTEMBER 30, 1997
----------------------------- -----------------------------
SHARES AMOUNT SHARES AMOUNT
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 8,166,418 $151,105,616 4,125,858 $ 69,304,365
Dividends and
distributions reinvested 985,898 16,923,623 878,791 13,300,225
Redeemed (5,266,895) (96,289,134) (3,311,174) (55,319,631)
---------- ------------ ---------- ------------
Net increase 3,885,421 $ 71,740,105 1,693,475 $ 27,284,959
========== ============ ========== ============
- ----------------------------------------------------------------------------------------------------------------
Class B:
Sold 3,694,602 $ 69,285,741 1,501,153 $ 25,320,751
Dividends and
distributions reinvested 218,630 3,732,968 70,126 1,070,339
Redeemed (705,388) (12,705,039) (169,306) (2,807,194)
---------- ------------ ---------- ------------
Net increase 3,207,844 $ 60,313,670 1,401,973 $ 23,583,896
========== ============ ========== ============
- ----------------------------------------------------------------------------------------------------------------
Class C:
Sold 2,110,026 $ 39,519,237 772,796 $ 12,832,416
Dividends and
distributions reinvested 258,216 4,399,103 250,530 3,750,170
Redeemed (850,145) (15,537,649) (397,368) (6,520,898)
---------- ------------ ---------- ------------
Net increase 1,518,097 $ 28,380,691 625,958 $ 10,061,688
========== ============ ========== ============
</TABLE>
================================================================================
3. UNREALIZED GAINS AND LOSSES ON INVESTMENTS
As of September 30, 1998, net unrealized depreciation on investments of
$56,001,822 was composed of gross appreciation of $25,330,458, and gross
depreciation of $81,332,280.
================================================================================
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% of average
annual net assets in excess of $2 billion. The Fund's management fee for the
year ended September 30, 1998 was 0.79% of average annual net assets for Class
A, Class B and Class C shares.
29 Oppenheimer Global Growth & Income Fund
<PAGE> 30
NOTES TO FINANCIAL STATEMENTS (Continued)
================================================================================
4. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES(CONTINUED)
For the year ended September 30, 1998, commissions (sales charges paid by
investors) on sales of Class A shares totaled $1,454,433, of which $479,901 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 $2,150,564 and $345,379, respectively, of which $177,289
and $4,179, respectively, was paid to an affiliated broker/dealer. During the
year ended September 30, 1998, OFDI received contingent deferred sales charges
of $105,135 and $13,673, 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 other Oppenheimer
funds. OFS's total costs of providing such services are allocated ratably to
these funds.
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 year ended September 30, 1998, OFDI paid $44,279
to an affiliated broker/dealer as reimbursement for Class A personal service and
maintenance expenses.
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 rendered 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 year ended
September 30, 1998, OFDI paid $2,565 to an affiliated broker/dealer as
compensation for Class B personal service and maintenance expenses and retained
$565,348 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, 1998, OFDI had incurred excess distribution and servicing costs of
$2,853,847 for Class B.
30 Oppenheimer Global Growth & Income Fund
<PAGE> 31
================================================================================
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 rendered 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 year ended
September 30, 1998, OFDI paid $18,820 to an affiliated broker/dealer as
reimbursement for Class C personal service and maintenance expenses and retained
$296,348 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 September 30, 1998, OFDI had incurred excess distribution and servicing costs
of $828,357 for Class C.
- --------------------------------------------------------------------------------
5. FORWARD CONTRACTS
A forward foreign currency exchange contract (forward contract) is a commitment
to purchase or sell a foreign currency at a future date, at a negotiated rate.
The Fund uses forward contracts to seek to manage foreign currency
risks. They may also be used to tactically shift portfolio currency risk. The
Fund generally enters into forward contracts as a hedge upon the purchase or
sale of a security denominated in a foreign currency. In addition, the Fund may
enter into such contracts as a hedge against changes in foreign currency
exchange rates on portfolio positions.
Forward contracts are valued based on the closing prices of the forward
currency contract rates in the London foreign exchange markets on a daily basis
as provided by a reliable bank or dealer. The Fund will realize a gain or loss
upon the closing or settlement of the forward transaction.
Securities held in segregated accounts to cover net exposure on
outstanding forward contracts are noted in the Statement of Investments where
applicable. Unrealized appreciation or depreciation on forward contracts is
reported in the Statement of Assets and Liabilities. Realized gains and losses
are reported with all other foreign currency gains and losses in the Fund's
Statement of Operations.
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.
31 Oppenheimer Global Growth & Income Fund
<PAGE> 32
NOTES TO FINANCIAL STATEMENTS (Continued)
================================================================================
5. FORWARD CONTRACTS (CONTINUED)
As of September 30, 1998, the Fund had outstanding forward contracts as follows:
<TABLE>
<CAPTION>
CONTRACT
EXPIRATION AMOUNT VALUATION AS OF UNREALIZED UNREALIZED
DATES (000S) SEPTEMBER 30, 1998 APPRECIATION DEPRECIATION
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CONTRACTS TO PURCHASE
- ---------------------
British Pound Sterling (GBP) 10/1/98-
10/5/98- 305 GBP $ 518,455 $ -- $1,970
------- ------
CONTRACTS TO SELL
- -----------------
British Pound Sterling (GBP) 10/1/98- 1,968 GBP 3,444,947 10,820 --
------- ------
Total Unrealized Appreciation and Depreciation $10,820 $1,970
======= ======
</TABLE>
================================================================================
6. ILLIQUID AND RESTRICTED SECURITIES
As of September 30, 1998, 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
periodically) 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 as of September 30, 1998 was $20,000, which
represents 0.01% 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 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 year ended September
30, 1998.
32 Oppenheimer Global Growth & Income Fund
<PAGE> 33
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, 1998,
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, 1998, 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, 1998,
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, 1998
33 Oppenheimer Global Growth & Income Fund
<PAGE> 34
FEDERAL INCOME TAX INFORMATION (Unaudited)
================================================================================
In early 1999, shareholders will receive information regarding all dividends and
distributions paid to them by the Fund during calendar year 1998. Regulations of
the U.S. Treasury Department require the Fund to report this information to the
Internal Revenue Service.
Distributions of $1.4205, $1.3790 and $1.3735 per share were paid to
Class A, Class B and Class C shareholders, respectively, on December 16, 1997,
of which, for each class of shares, $0.0582 was designated as a capital gain
distribution in the "28% Rate Group" and $0.2460 was designated as a capital
gain distribution in the "20% Rate Group" 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.
Dividends paid by the Fund during the year ended September 30, 1998,
which are not designated as capital gain distributions should be multiplied by
7.57% 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.
34 Oppenheimer Global Growth & Income Fund
<PAGE> 35
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
Rajeev Bhaman, Vice President
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.
35 Oppenheimer Global Growth & Income Fund
<PAGE> 36
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As an Oppenheimer fund shareholder, you have some special privileges. Whether
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When you want to make a transaction, you can do it easily by calling our
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For added convenience, you can get automated information with
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You can count on us whenever you need assistance. That's why the
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So call us today, or visit us at our website at
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[OPPENHEIMERFUNDS LOGO]
RA0215.001.0998 November 27, 1998
