Semiannual Report March 31, 1999
O P P E N H E I M E R
Global Growth
& Income Fund
[photo of globe, map and pencil]
[logo]
OppenheimerFunds(R)
THE RIGHT WAY TO INVEST
<PAGE>
Contents
3 President's Letter
4 An Interview
with Your Fund's
Manager
11 Financial
Statements
31 Officers and
Trustees
32 Information and
Services
Report highlights
- --------------------------------------------------------------------------------
o Over the period, we invested primarily in the high growth, high dividend,
cyclical and small company sectors.
o We repositioned our fixed income holdings to take advantage of investment
opportunities in emerging market bonds.
Cumulative Total Returns
For the 6-Month Period
Ended 3/31/99
Class A
Without With
Sales Chg.1 Sales Chg.2
- -----------------------------
26.18% 18.92%
- -----------------------------
Class B
Without With
Sales Chg.1 Sales Chg.2
- -----------------------------
25.71% 20.71%
- -----------------------------
Class C
Without With
Sales Chg.1 Sales Chg.2
- -----------------------------
25.70% 24.70%
- -----------------------------
Total returns include changes in share price and reinvestment of dividends and
capital gains distributions in a hypothetical investment for the periods shown.
Cumulative total returns are not annualized. 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 the stock market can be volatile, 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. Includes changes in net asset value per share without deducting any sales
charges.
2. 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 an annual 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>
[photo of Bridget A. Macaskill]
Bridget A. Macaskill
President
Oppenheimer
Global Growth &
Income Fund
Dear shareholder,
- --------------------------------------------------------------------------------
The strength of the U.S.economy continues to surprise and concern many analysts.
At a time when the majority of the world's economies are beleaguered by
financial strain, the U.S. economy has been growing at a remarkable rate.
With respect to the U.S. bond market, stronger than expected economic
growth has triggered concerns that the Federal Reserve may raise key interest
rates to forestall an acceleration of inflation. As a result, yields of longer
term taxable bonds have risen from their October 1998 lows, when investors had
bid up prices during the global "flight to quality." At the same time,
tax-exempt bond prices and yields have remained relatively stable.
In the U.S. stock market, it might appear at first glance that prices are
rising as rapidly as the economy is growing. However, a closer look reveals
that, with the exception of large-cap growth companies and the technology
industry, most stock prices remained relatively flat through March 31. What's
more, the disparity in valuations between large companies, which have led the
market's advance, and smaller ones, which have lagged, has become historically
wide.
What do these observations mean for your investments? In our view, actively
managed portfolios that are closely monitored by expert money managers may
provide better returns than passive index investing in 1999. That's because
selectivity is expected to be more critical to performance than it has been over
the past few years. In a potentially overvalued stock market and rising
interest-rate environment, the ability to identify the most promising securities
could become paramount.
Even though many equity investors may be tempted to focus their portfolio
on the technology sector, we suggest a more prudent course: broad
diversification beyond any single asset class, industry, capitalization range or
geographic region. We believe that the risks of this investment environment
require consideration of a broad range of investments and markets, including
bonds. That way, if one market experiences setbacks, one or more of the others
may help cushion the effects on your overall portfolio.
No matter what the financial markets have in store, we resolve to continue
working with your financial advisor to keep you apprised of potential risks and
opportunities. Providing you with the market information, professionally managed
investments and other resources you need to achieve your financial goals is an
important part of our enduring commitment to you as The Right Way to Invest.
Sincerely,
/s/ Bridget A. Macaskill
Bridget A. Macaskill
April 22, 1999
3 Oppenheimer Global Growth & Income Fund
<PAGE>
An interview with your Fund's manager
- --------------------------------------------------------------------------------
How did the Fund perform during the six-month period that ended
March 31, 1999?
We were pleased with the performance of Oppenheimer Global Growth & Income Fund
during this period. As always, our investment strategy focused on companies
that, in our opinion, stand to benefit from key global growth trends. We believe
disciplined fund management enabled us to weather the sharp stock market decline
that continued through the first two weeks of October 1998, and to participate
in the subsequent market recovery.
What caused the volatility in the global financial markets?
The first two weeks of October 1998, saw the continuation of a decline in equity
and bond markets that began earlier that summer. These market problems were
driven by deepening economic difficulties in emerging markets around the world.
While the European and U.S. economies remained strong, profits declined among
multi-national companies because of weakening foreign demand for their products.
As corporate profit growth slowed, average stock prices fell sharply in Europe
and the United States. Concerns about the ability of corporate and government
entities to meet their debt commitments drove most corporate and emerging market
bond prices lower as well.
4 Oppenheimer Global Growth & Income Fund
<PAGE>
[photo of portfolio management team]
Portfolio Management
Team (l to r)
Frank Jennings
(Portfolio Manager)
William Wilby
George Evans
On October 15th, the Federal Reserve Board (the Fed) stepped in with a surprise
cut in government lending rates. By signaling the Fed's willingness to act
decisively in attempting to avoid a recession in the United States, the move
bolstered investor confidence. Equities began to rise almost as quickly as they
had fallen. Corporate and most emerging market bonds rebounded as well.
How did you manage the Fund in light of these events?
Our fundamental approach is based on identifying companies around the world that
we believe stand to benefit from key global growth trends. This led us to focus
on four key sectors of the equities market: high growth stocks, high
dividend-yielding stocks, cyclical stocks and small company stocks.
5 Oppenheimer Global Growth & Income Fund
<PAGE>
Avg Annual Total Returns
For the Periods Ended 3/31/99(1)
Class A
Since
1 year 5 year Inception
- --------------------------------
0.16% 13.84% 12.85%
- --------------------------------
Class B
Since
1 year 5 year Inception
- --------------------------------
0.98% N/A 17.71%
- --------------------------------
Class C
Since
1 year 5 year Inception
- --------------------------------
4.59% 14.32% 14.08%
- --------------------------------
An interview with your Fund's manager
- --------------------------------------------------------------------------------
First, we took advantage of historically attractive bargains among stocks with
high growth potential, adding to many of our positions within technology, the
Internet, healthcare and luxury goods. Many of these investments, such as our
holdings in QUALCOMM, Inc., the U.S.-based digital wireless company, performed
strongly during the market's recovery. Several of our longstanding, overseas
growth- oriented investments, such as Porsche AG, also performed well. But keep
in mind that foreign investing entails higher expenses and risks, such as
foreign currency fluctuations, economic and political instability, and
differences in accounting standards.
Second, we found good investment opportunities among stocks that offered
high dividends as well as the potential for capital appreciation. Many of these
stocks were available for prices that, in our opinion, did not reflect the
companies' intrinsic value. Some of these stocks appreciated during the
recovery; others gained value when the companies themselves were purchased at
substantial premiums to current market prices.
6 Oppenheimer Global Growth & Income Fund
<PAGE>
Third, we capitalized on favorable conditions among select industries that
appeared poised for strong cyclical growth. For example, we believe the housing
market is poised for expansion, given the growing demand for housing in today's
low interest-rate environment. That's why we added to our position in George
Wimpey plc, one of the largest house building companies in the United Kingdom.
Finally, we observed several buying opportunities among smaller companies.
Despite strong business fundamentals, many of these companies' stock prices fell
dramatically during the summer of 1998 because they lack widespread support from
analysts and institutional investors. In particular, we focused on small-cap
companies with strong business franchises.
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. 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.
7 Oppenheimer Global Growth & Income Fund
<PAGE>
An interview with your Fund's manager
- --------------------------------------------------------------------------------
How did you manage the Fund's fixed income investments?
We seek to cushion the Fund from some of the volatility of equities markets in
general, and foreign markets in particular, through prudent investments in fixed
income instruments.2 Our bond holdings helped achieve that result during the
period covered by this report. For example, the Fund gained a measure of
stability from our long-standing investment in bonds issued by the Industrial
Bank of Japan.
We also took advantage of growing opportunities among emerging market
bonds. In particular, we identified significant values among Brady Bonds, which
are U.S. dollar-denominated bonds of developing countries. In late 1998 and
early 1999, concerns about the economic stability of Brazil and other Latin
American nations drove up the interest rates of these bonds. We invested in
Brady Bonds from Argentina, Brazil and Venezuela.
What is your outlook for the future?
Our investment approach is based on the relative strength and growth prospects
of individual stocks and bonds worldwide, rather than on economic forecasts.
However, we do believe that the U.S. economy remains fundamentally strong, and
that Europe is beginning to achieve growing productivity. Signs of recovery can
also be seen in some emerging markets. In our opinion, the Fund is
2. By prospectus, the Fund can invest up to 25% of its assets in "lower-grade"
securities, which are commonly known as "junk bonds." Investing in junk bonds
carries a greater risk of default.
3. Portfolio is subject to change. Percentages are as of March 31, 1999, and are
based on total market value of investments.
4. Portfolio is subject to change. Percentages are as of March 31, 1999, and are
based on total market value of stock holdings.
8 Oppenheimer Global Growth & Income Fund
<PAGE>
[tabular representation of pie chart]
Portfolio Allocation(3)
Stocks 82.6%
Bonds 17.4
well-positioned to benefit from global growth. We remain dedicated to our
disciplined approach of participating in that growth while striving to cushion
the effects of global volatility. That's what makes Oppenheimer Global Growth &
Income Fund part of The Right Way to Invest.
Top 10 Country Holdings(4)
- --------------------------------------------------------
United States 42.0%
- --------------------------------------------------------
Great Britain 23.1
- --------------------------------------------------------
Germany 7.0
- --------------------------------------------------------
Mexico 4.6
- --------------------------------------------------------
Argentina 3.4
- --------------------------------------------------------
France 3.3
- --------------------------------------------------------
Brazil 3.1
- --------------------------------------------------------
Singapore 2.6
- --------------------------------------------------------
Switzerland 1.9
- --------------------------------------------------------
India 1.8
- --------------------------------------------------------
Top 10 Stock Holdings(4)
- --------------------------------------------------------
QUALCOMM, Inc. 8.0%
- --------------------------------------------------------
Coherent, Inc. 4.8
- --------------------------------------------------------
Porsche AG, Preference 4.2
- --------------------------------------------------------
National Semiconductor Corp. 3.6
- --------------------------------------------------------
International Flavors & Fragrances, Inc. 3.2
- --------------------------------------------------------
Allied Domecq plc 3.2
- --------------------------------------------------------
Williams plc 2.7
- --------------------------------------------------------
Thorntons plc 2.5
- --------------------------------------------------------
Neurogen Corp. 2.5
- --------------------------------------------------------
Advanced Micro Devices, Inc. 2.5
- --------------------------------------------------------
9 Oppenheimer Global Growth & Income Fund
<PAGE>
Financials
- --------------------------------------------------------------------------------
10 Oppenheimer Global Growth & Income Fund
<PAGE>
Statement of Investments March 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
================================================================================================================================
<S> <C> <C>
Common Stocks--81.6%
- --------------------------------------------------------------------------------------------------------------------------------
Basic Materials--3.2%
- --------------------------------------------------------------------------------------------------------------------------------
Chemicals--3.2%
International Flavors & Fragrances, Inc. 400,000 $15,025,000
- --------------------------------------------------------------------------------------------------------------------------------
Capital Goods--13.1%
- --------------------------------------------------------------------------------------------------------------------------------
Electrical Equipment--2.0%
Halma plc 6,255,000 9,390,634
- --------------------------------------------------------------------------------------------------------------------------------
Industrial Services--4.0%
Boskalis Westminster 120,000 1,839,611
- --------------------------------------------------------------------------------------------------------------------------------
Cookson Group plc 1,500,000 3,477,447
- --------------------------------------------------------------------------------------------------------------------------------
Grupo Elektra, SA de C.V., Sponsored GDR 400,000 2,600,000
- --------------------------------------------------------------------------------------------------------------------------------
True North Communications, Inc. 400,000 11,250,000
-----------
19,167,058
- --------------------------------------------------------------------------------------------------------------------------------
Manufacturing--7.1%
Friedrich Grohe AG 16,869 4,024,741
- --------------------------------------------------------------------------------------------------------------------------------
Morgan Crucible Co. plc 1,240,000 4,383,797
- --------------------------------------------------------------------------------------------------------------------------------
Societe BIC SA 190,000 9,999,644
- --------------------------------------------------------------------------------------------------------------------------------
Steinway Musical Instruments, Inc.(1) 135,000 2,995,313
- --------------------------------------------------------------------------------------------------------------------------------
Williams plc 1,923,076 12,417,697
-----------
33,821,192
- --------------------------------------------------------------------------------------------------------------------------------
Communication Services--2.8%
- --------------------------------------------------------------------------------------------------------------------------------
Telecommunications-Long Distance--1.9%
Ascom Holding AG 6,000 9,140,990
- --------------------------------------------------------------------------------------------------------------------------------
Telephone Utilities--0.9%
Sprint Corp. (PCS Group)(1) 100,000 4,431,250
- --------------------------------------------------------------------------------------------------------------------------------
Consumer Cyclicals--14.7%
- --------------------------------------------------------------------------------------------------------------------------------
Autos & Housing--9.1%
Borg-Warner Automotive, Inc. 90,000 4,303,125
- --------------------------------------------------------------------------------------------------------------------------------
George Wimpey plc 4,000,000 10,266,957
- --------------------------------------------------------------------------------------------------------------------------------
Hanson plc 1,000,000 8,967,444
- --------------------------------------------------------------------------------------------------------------------------------
Porsche AG, Preference 8,000 19,734,789
-----------
43,272,315
- --------------------------------------------------------------------------------------------------------------------------------
Leisure & Entertainment--4.4%
Ducati Motor Holding SpA(1) 460,000 1,345,809
- --------------------------------------------------------------------------------------------------------------------------------
Hasbro, Inc. 400,000 11,575,000
- --------------------------------------------------------------------------------------------------------------------------------
Mandarin Oriental International Ltd. 8,000,000 5,200,000
- --------------------------------------------------------------------------------------------------------------------------------
Societe du Louvre 40,000 2,979,651
-----------
21,100,460
11 Oppenheimer Global Growth & Income Fund
<PAGE>
Statement of Investments (Unaudited) (Continued)
Market Value
Shares See Note 1
- --------------------------------------------------------------------------------------------------------------------------------
Retail: Specialty--0.7%
Heilig-Meyers Co. 600,000 $ 3,112,500
- --------------------------------------------------------------------------------------------------------------------------------
Textile/Apparel & Home Furnishings--0.5%
Hermes International SA 30,000 2,396,676
- --------------------------------------------------------------------------------------------------------------------------------
Consumer Staples--13.0%
- --------------------------------------------------------------------------------------------------------------------------------
Beverages--3.9%
Allied Domecq plc 2,000,000 14,883,859
- --------------------------------------------------------------------------------------------------------------------------------
Highland Distilleries Co., plc 1,000,000 3,712,893
-----------
18,596,752
- --------------------------------------------------------------------------------------------------------------------------------
Entertainment--2.5%
CBRL Group, Inc. 200,000 3,600,000
- --------------------------------------------------------------------------------------------------------------------------------
IHOP Corp.(1) 70,000 2,747,500
- --------------------------------------------------------------------------------------------------------------------------------
Piccadilly Cafeterias, Inc.(2) 528,900 5,619,563
-----------
11,967,063
- --------------------------------------------------------------------------------------------------------------------------------
Food--3.1%
Thorntons plc(1) 3,100,000 11,810,229
- --------------------------------------------------------------------------------------------------------------------------------
United Biscuits (Holdings) plc(1) 1,000,000 3,042,958
-----------
14,853,187
- --------------------------------------------------------------------------------------------------------------------------------
Food & Drug Retailers--1.5%
Dairy Farm International Holdings Ltd. 6,094,000 7,069,040
- --------------------------------------------------------------------------------------------------------------------------------
Household Goods--2.0%
Hindustan Lever Ltd. 150 8,004
- --------------------------------------------------------------------------------------------------------------------------------
Wella AG, Preference 13,000 9,262,828
-----------
9,270,832
- --------------------------------------------------------------------------------------------------------------------------------
Financial--3.5%
- --------------------------------------------------------------------------------------------------------------------------------
Banks--0.6%
Merita Ltd., Cl. A(1) 500,000 2,677,368
- --------------------------------------------------------------------------------------------------------------------------------
Diversified Financial--2.9%
Administradora de Fondos de Pensiones Provida SA, Sponsored ADR 100,000 1,875,000
- --------------------------------------------------------------------------------------------------------------------------------
Edinburgh Fund Managers Group 500,000 3,268,960
- --------------------------------------------------------------------------------------------------------------------------------
ICICI Ltd. 4,000,000 4,350,692
- --------------------------------------------------------------------------------------------------------------------------------
Singer & Friedlander Group plc 2,000,000 4,213,327
-----------
13,707,979
12 Oppenheimer Global Growth & Income Fund
<PAGE>
Market Value
Shares See Note 1
- --------------------------------------------------------------------------------------------------------------------------------
Healthcare--7.0%
- --------------------------------------------------------------------------------------------------------------------------------
Healthcare/Drugs--7.0%
Cheminor Drugs Ltd. 203,800 $ 1,349,699
- --------------------------------------------------------------------------------------------------------------------------------
Chiron Corp.(1) 100,000 2,193,750
- --------------------------------------------------------------------------------------------------------------------------------
Gilead Sciences, Inc. 140,000 6,370,000
- --------------------------------------------------------------------------------------------------------------------------------
Millennium Pharmaceuticals, Inc.(1) 370,000 11,562,500
- --------------------------------------------------------------------------------------------------------------------------------
Neurogen Corp.(1)(2) 1,100,000 11,756,250
-----------
33,232,199
- --------------------------------------------------------------------------------------------------------------------------------
Technology--22.4%
- --------------------------------------------------------------------------------------------------------------------------------
Computer Hardware--1.9%
Psion plc 600,000 9,124,032
- --------------------------------------------------------------------------------------------------------------------------------
Computer Software/Services--0.8%
Lernout & Hauspie Speech Products NV 130,000 3,900,000
- --------------------------------------------------------------------------------------------------------------------------------
Communications Equipment--7.9%
QUALCOMM, Inc.(1) 300,000 37,312,500
- --------------------------------------------------------------------------------------------------------------------------------
Electronics--11.8%
Advanced Micro Devices, Inc.(1) 750,000 11,625,000
- --------------------------------------------------------------------------------------------------------------------------------
Applied Materials, Inc.(1) 80,000 4,935,000
- --------------------------------------------------------------------------------------------------------------------------------
Coherent, Inc.(1)(2) 1,650,000 22,687,500
- --------------------------------------------------------------------------------------------------------------------------------
National Semiconductor Corp.(1) 1,800,000 16,762,500
-----------
56,010,000
- --------------------------------------------------------------------------------------------------------------------------------
Transportation--0.1%
- --------------------------------------------------------------------------------------------------------------------------------
Shipping--0.1%
International Container Terminal Services, Inc.(1) 8,805,000 590,786
- --------------------------------------------------------------------------------------------------------------------------------
Utilities--1.8%
- --------------------------------------------------------------------------------------------------------------------------------
Electric Utilities--1.8%
Cia de Eletricidade do Estado da Bahia, Preference(1) 58,300,000 1,597,683
- --------------------------------------------------------------------------------------------------------------------------------
Hawaiian Electric Industries, Inc. 200,000 7,012,500
-----------
8,610,183
-----------
Total Common Stocks (Cost $365,537,409) 387,779,996
Units
================================================================================================================================
Rights, Warrants and Certificates--0.0%
- --------------------------------------------------------------------------------------------------------------------------------
American Satellite Network, Inc. Wts., Exp. 6/99 (Cost $0) 3,875 --
13 Oppenheimer Global Growth & Income Fund
<PAGE>
Statement of Investments (Unaudited) (Continued)
Face Market Value
Amount(3) See Note 1
================================================================================================================================
Foreign Government Obligations--11.3%
- --------------------------------------------------------------------------------------------------------------------------------
Argentina (Republic of) Bonds, Bonos de Consolidacion de Deudas,
Series I, 2.953%, 4/1/07(4)ARP 23,017,879 $ 16,014,762
- --------------------------------------------------------------------------------------------------------------------------------
Brazil (Federal Republic of) Capitalization Bonds, 8%, 4/15/14 20,019,540 12,762,457
- --------------------------------------------------------------------------------------------------------------------------------
United Mexican States Treasury Bills, Zero Coupon, 26.259%,
1/13/00(5)MXP 24,807,400 2,192,617
- --------------------------------------------------------------------------------------------------------------------------------
United Mexican States Treasury Bills, Zero Coupon, 26.423%,
2/10/00(5)MXP 194,539,540 16,918,240
- --------------------------------------------------------------------------------------------------------------------------------
Venezuela (Republic of) Front-Loaded Interest Reduction Bonds,
Series A, 6%, 3/31/07(4) 8,380,952 5,636,190
------------
Total Foreign Government Obligations (Cost $48,754,969) 53,524,266
================================================================================================================================
Non-Convertible Corporate Bonds and Notes--3.9%
- --------------------------------------------------------------------------------------------------------------------------------
Bangkok Bank Public Co. Ltd., 8.75% Sub. Nts., 3/15/07(6) 6,175,000 5,060,783
- --------------------------------------------------------------------------------------------------------------------------------
Industrial Bank of Japan Preferred Capital Co. (The) LLC,
8.79% Bonds, 12/29/49(4)(6) 10,000,000 8,515,110
- --------------------------------------------------------------------------------------------------------------------------------
Korea Development Bank, 7.125% Bonds, 9/17/01 5,000,000 4,921,455
------------
Total Non-Convertible Corporate Bonds and Notes (Cost $19,155,862) 18,497,348
================================================================================================================================
Convertible Corporate Bonds and Notes--2.0%
- --------------------------------------------------------------------------------------------------------------------------------
Reckitt & Colman plc, 9.50% Cv. Capital Bonds, 3/31/05
(Cost $11,048,489) 3,800,000 9,477,563
================================================================================================================================
Structured Instruments--0.0%
- --------------------------------------------------------------------------------------------------------------------------------
Deutsche Morgan Grenfell, Russian Federal Loan Floating Rate
Linked Nts., Series 5023, 9.426%, 9/12/01 (Cost $1,806,427)(7)(8) 2,000,000 20,000
- --------------------------------------------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $446,303,156) 98.8% 469,299,173
- --------------------------------------------------------------------------------------------------------------------------------
Other Assets Net of Liabilities 1.2 5,575,046
---------- ------------
Net Assets 100.0% $474,874,219
========== ============
</TABLE>
14 Oppenheimer Global Growth & Income Fund
<PAGE>
- --------------------------------------------------------------------------------
Distribution of investments representing geographic diversification, as a
percentage of total investments at value, is as follows:
Geographic Diversification Market Value Percent
- ----------------------------------------------------------------------
United States $196,876,750 42.0%
- ----------------------------------------------------------------------
Great Britain 108,437,799 23.1
- ----------------------------------------------------------------------
Germany 33,022,358 7.0
- ----------------------------------------------------------------------
Mexico 21,710,857 4.6
- ----------------------------------------------------------------------
Argentina 16,014,762 3.4
- ----------------------------------------------------------------------
France 15,375,970 3.3
- ----------------------------------------------------------------------
Brazil 14,360,140 3.1
- ----------------------------------------------------------------------
Singapore 12,269,040 2.6
- ----------------------------------------------------------------------
Switzerland 9,140,990 1.9
- ----------------------------------------------------------------------
Japan 8,515,110 1.8
- ----------------------------------------------------------------------
India 5,708,396 1.2
- ----------------------------------------------------------------------
Venezuela 5,636,190 1.2
- ----------------------------------------------------------------------
Hong Kong 5,060,783 1.1
- ----------------------------------------------------------------------
Korea, Republic of (South) 4,921,455 1.1
- ----------------------------------------------------------------------
Belgium 3,900,000 0.8
- ----------------------------------------------------------------------
Finland 2,677,368 0.6
- ----------------------------------------------------------------------
Other 5,671,205 1.2
------------ -----
Total $469,299,173 100.0%
============ =====
1. Non-income producing security.
2. Affiliated company. Represents ownership of at least 5% of the voting
securities of the issuer, and is or was an affiliate, as defined in the
Investment Company Act of 1940, at or during the period ended March 31, 1999.
The aggregate fair value of securities of affiliated companies held by the Fund
as of March 31, 1999, amounts to $40,063,313. Transactions during the period in
which the issuer was an affiliate are as follows:
<TABLE>
<CAPTION>
Shares Shares
September 30, Gross Gross March 31, Dividend
1998 Additions Reductions 1999 Income
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Coherent, Inc. 1,050,000 600,000 -- 1,650,000 $ --
- ------------------------------------------------------------------------------------------------------------
Neurogen Corp. 260,000 840,000 -- 1,100,000 --
- ------------------------------------------------------------------------------------------------------------
Piccadilly Cafeterias, Inc. 100,000 428,900 -- 528,900 24,840
------
$24,840
=======
</TABLE>
3. Face amount is reported in U.S. Dollars, except for those denoted in the
following currencies:
ARP--Argentine Peso MXP--Mexican Peso
4. Represents the current interest rate for a variable rate security.
5. For zero coupon bonds, the interest rate shown is the effective yield on the
date of purchase.
6. 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 $13,575,893 or 2.86% of the Fund's net
assets as of March 31, 1999.
7. Non-income producing--issuer is in default.
8. Identifies issues considered to be illiquid or restricted--See Note 6 of
Notes to Financial Statements.
See accompanying Notes to Financial Statements.
15 Oppenheimer Global Growth & Income Fund
<PAGE>
Statement of Assets and Liabilities March 31, 1999 (Unaudited)
<TABLE>
===============================================================================
<S> <C>
Assets
Investments, at value--see accompanying statement:
Unaffiliated companies (cost $397,286,468) $429,235,860
Affiliated companies (cost $49,016,688) 40,063,313
- -------------------------------------------------------------------------------
Receivables and other assets:
Investments sold 5,131,866
Interest, dividends and principal paydowns 3,041,899
Shares of beneficial interest sold 1,777,735
Other 9,506
------------
Total assets 479,260,179
===============================================================================
Liabilities
Bank overdraft 636,988
- -------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 2,279,064
Shares of beneficial interest redeemed 843,904
Distribution and service plan fees 277,762
Transfer and shareholder servicing agent fees 100,051
Trustees' compensation--Note 1 92,790
Shareholder reports 74,773
Custodian fees 40,387
Other 40,241
------------
Total liabilities 4,385,960
===============================================================================
Net Assets $474,874,219
============
===============================================================================
Composition of Net Assets
Paid-in capital $438,516,896
- -------------------------------------------------------------------------------
Undistributed net investment income 1,935,699
- -------------------------------------------------------------------------------
Accumulated net realized gain on investment and foreign
currency transactions 11,500,937
- -------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation
of assets and liabilities denominated in foreign currencies 22,920,687
------------
Net assets $474,874,219
============
16 Oppenheimer Global Growth & Income Fund
<PAGE>
================================================================================
Net Asset Value Per Share
Class A Shares:
Net asset value and redemption price per share (based on net
assets of $267,187,534 and 15,410,308 shares of beneficial
interest outstanding) $17.34
Maximum offering price per share (net asset value plus sales charge
of 5.75% of offering price) $18.40
- -------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share
(based on net assets of $115,255,069 and 6,686,335 shares of
beneficial interest outstanding) $17.24
- -------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on
net assets of $92,431,616 and 5,362,672 shares of beneficial
interest outstanding) $17.24
</TABLE>
See accompanying Notes to Financial Statements.
17 Oppenheimer Global Growth & Income Fund
<PAGE>
Statement of Operations For the Six Months Ended March 31, 1999 (Unaudited)
<TABLE>
===============================================================================
<S> <C>
Investment Income
Interest (net of foreign withholding taxes of $44,134) $ 4,544,555
- -------------------------------------------------------------------------------
Dividends:
Unaffiliated companies (net of foreign withholding taxes
of $316,867) 4,137,309
Affiliated companies 24,840
----------
Total income 8,706,704
===============================================================================
Expenses
Management fees--Note 4 1,705,903
- -------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 302,447
Class B 503,853
Class C 417,697
- -------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 532,070
- -------------------------------------------------------------------------------
Shareholder reports 100,525
- -------------------------------------------------------------------------------
Custodian fees and expenses 80,125
- -------------------------------------------------------------------------------
Registration and filing fees 21,142
- -------------------------------------------------------------------------------
Legal, auditing and other professional fees 19,443
- -------------------------------------------------------------------------------
Trustees' compensation--Note 1 15,738
- -------------------------------------------------------------------------------
Insurance expenses 3,742
- -------------------------------------------------------------------------------
Other 24,048
----------
Total expenses 3,726,733
- -------------------------------------------------------------------------------
Less expenses paid indirectly--Note 4 (1,433)
----------
Net expenses 3,725,300
- -------------------------------------------------------------------------------
Net Investment Income 4,981,404
- -------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
Net realized gain on:
Investments 8,756,139
Foreign currency transactions 3,256,630
----------
Net realized gain 12,012,769
- -------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments 88,639,970
Translation of assets and liabilities denominated in
foreign currencies (9,719,806)
----------
Net change 78,920,164
----------
Net realized and unrealized gain 90,932,933
================================================================================
Net Increase in Net Assets Resulting from Operations $95,914,337
===========
</TABLE>
See accompanying Notes to Financial Statements.
18 Oppenheimer Global Growth & Income Fund
<PAGE>
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Six Months Ended Year Ended
March 31, 1999 September 30,
(Unaudited) 1999
========================================================================================
<S> <C> <C>
Operations
Net investment income $ 4,981,404 $ 4,964,736
- ----------------------------------------------------------------------------------------
Net realized gain 12,012,769 63,530,210
- ----------------------------------------------------------------------------------------
Net change in unrealized appreciation or
depreciation 78,920,164 (112,300,442)
----------- ------------
Net increase (decrease) in net assets
resulting from operations 95,914,337 (43,805,496)
========================================================================================
Dividends and Distributions to Shareholders
Dividends from net investment income:
Class A (2,129,021) (6,864,117)
Class B (472,929) (1,464,595)
Class C (381,855) (1,546,097)
- ----------------------------------------------------------------------------------------
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 (34,264,562) (10,520,713)
Class B (13,693,083) (2,432,947)
Class C (11,499,964) (3,038,690)
========================================================================================
Beneficial Interest Transactions
Net increase in net assets resulting from
beneficial interest transactions--Note 2:
Class A 35,062,691 71,740,105
Class B 25,723,286 60,313,670
Class C 15,162,207 28,380,691
========================================================================================
Net Assets
Total increase 109,421,107 90,387,195
- ----------------------------------------------------------------------------------------
Beginning of period 365,453,112 275,065,917
----------- ------------
End of period [including undistributed
(overdistributed) net investment income
of $1,935,699 and $(61,900), respectively] $474,874,219 $ 365,453,112
============ =============
</TABLE>
See accompanying Notes to Financial Statements.
19 Oppenheimer Global Growth & Income Fund
<PAGE>
Financial Highlights
<TABLE>
<CAPTION>
Class A
---------------------------------------------------------
Six Months
Ended
March 31, Year Ended September 30,
1999 (Unaudited) 1998 1997 1996
=====================================================================================================
<S> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $16.03 $19.36 $15.62 $14.98
- -----------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .22 .29 .40 .47
Net realized and unrealized gain (loss) 3.80 (1.90) 5.12 1.40
------ ------ ----- ------
Total income (loss) from investment
operations 4.02 (1.61) 5.52 1.87
- -----------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.15) (.63) (.40) (.40)
Dividends in excess of net investment
income -- (.02) -- --
Distributions from net realized gain (2.56) (1.07) (1.38) (.83)
------ ------ ----- ------
Total dividends and distributions
to shareholders (2.71) (1.72) (1.78) (1.23)
- -----------------------------------------------------------------------------------------------------
Net asset value, end of period $17.34 $16.03 $19.36 $15.62
====== ====== ====== ======
=====================================================================================================
Total Return, at Net Asset Value(3) 26.18% (8.77)% 38.83% 13.28%
=====================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in thousands) $267,188 $212,765 $181,716 $120,214
- -----------------------------------------------------------------------------------------------------
Average net assets (in thousands) $249,679 $216,009 $141,582 $115,186
- -----------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 2.61%(4) 1.62% 2.47% 2.65%
Expenses(5) 1.40%(4) 1.36% 1.43% 1.52%
- -----------------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 48% 117% 91% 208%
</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 $1,000 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.
20 Oppenheimer Global Growth & Income Fund
<PAGE>
<TABLE>
<CAPTION>
Class B
- -------------------------- ------------------------------------------------------------
Six Months
Ended
March 31, Year Ended September 30,
1995 1994 1999 (Unaudited) 1998 1997 1996(2)
==================================================================================================
<S> <C> <C> <C> <C> <C>
$15.21 $14.09 $15.95 $19.27 $15.57 $14.72
- ------------------------------------------------------------------------------------------------
.45 .33 .18 .23 .30 .36
.54 1.62 3.75 (1.96) 5.06 1.63
------- ------ ------- ------- ------ -------
.99 1.95 3.93 (1.73) 5.36 1.99
- -------------------------------------------------------------------------------------------------
(.40) (.35) (.08) (.51) (.28) (.31)
-- -- -- (.01) -- --
(.82) (.48) (2.56) (1.07) (1.38) (.83)
------- ------ ------- ------- ------ -------
(1.22) (.83) (2.64) (1.59) (1.66) (1.14)
- -------------------------------------------------------------------------------------------------
$14.98 $15.21 $17.24 $15.95 $19.27 $15.57
======= ====== ======= ======= ====== =======
=================================================================================================
7.43% 13.96% 25.71% (9.42)% 37.69% 14.33%
=================================================================================================
$113,341 $124,017 $115,255 $81,866 $37,071 $8,131
- -------------------------------------------------------------------------------------------------
$120,267 $117,164 $101,231 $63,012 $17,474 $3,815
- -------------------------------------------------------------------------------------------------
3.09% 2.44% 1.88%(4) 1.42% 1.77% 1.64%(4)
1.63% 1.49% 2.15%(4) 2.11% 2.15% 2.28%(4)
- -------------------------------------------------------------------------------------------------
135% 87% 48% 117% 91% 208%
</TABLE>
5. Beginning in fiscal 1995, the expense ratio reflects the effect of gross
expenses paid indirectly by the Fund. Prior year expense ratios have not been
adjusted.
6. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities owned
during the period. Securities with a maturity or expiration date at the time of
acquisition of one year or less are excluded from the calculation. Purchases and
sales of investment securities (excluding short-term securities) for the period
ended March 31, 1999, were $211,358,623 and $199,188,642, respectively.
21 Oppenheimer Global Growth & Income Fund
<PAGE>
Financial Highlights (Continued)
<TABLE>
<CAPTION>
Class C
------------------------------------------------------
Six Months
Ended
March 31,
1999 Year Ended September 30,
(Unaudited) 1998 1997 1996 1995 1994(1)
=======================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $15.95 $19.26 $15.55 $14.92 $15.17 $14.85
- -----------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .16 .17 .28 .35 .35 .22
Net realized and unrealized gain (loss) 3.77 (1.91) 5.08 1.40 .53 .87
------- ------ ------- ------ ------ ------
Total income (loss) from investment
operations 3.93 (1.74) 5.36 1.75 .88 1.09
- -----------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.08) (.48) (.27) (.29) (.31) (.29)
Dividends in excess of net investment
income -- (.02) -- -- -- --
Distributions from net realized gain (2.56) (1.07) (1.38) (.83) (.82) (.48)
------- ------ ------- ------ ------ ------
Total dividends and distributions
to shareholders (2.64) (1.57) (1.65) (1.12) (1.13) (.77)
- -----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $17.24 $15.95 $19.26 $15.55 $14.92 $15.17
======= ====== ======= ====== ====== ======
=======================================================================================================================
Total Return, at Net Asset Value(3) 25.70% (9.43)% 37.74% 12.45% 6.61% 7.41%
=======================================================================================================================
Ratios/Supplemental Data
Net assets, end of period
(in thousands) $92,432 $70,822 $56,278 $35,70 $28,295 $17,008
- -----------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $84,256 $65,502 $43,338 $31,371 $22,211 $ 7,896
- -----------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 1.87%(4) 0.86% 1.71% 1.87% 2.36% 1.85%(4)
Expenses(5) 2.15%(4) 2.12% 2.18% 2.28% 2.39% 2.44%(4)
- -----------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 48% 117% 91% 208% 135% 87%
</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 $1,000 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.
5. Beginning in fiscal 1995, the expense ratio reflects the effect of gross
expenses paid indirectly by the Fund. Prior year expense ratios have not been
adjusted.
6. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities owned
during the period. Securities with a maturity or expiration date at the time of
acquisition of one year or less are excluded from the calculation. Purchases and
sales of investment securities (excluding short-term securities) for the period
ended March 31, 1999, were $211,358,623 and $199,188,642, respectively.
See accompanying Notes to Financial Statements.
22 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. 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. Foreign
currency exchange contracts are valued based on the closing prices of the
foreign currency contract rates in the London foreign exchange markets on a
daily basis as provided by a reliable bank or dealer.
23 Oppenheimer Global Growth & Income Fund
<PAGE>
Notes to Financial Statements (Unaudited)(Continued)
===============================================================================
1. Significant Accounting Policies (continued)
Foreign Currency Translation. The accounting records of the Fund are maintained
in U.S. dollars. Prices of securities denominated in foreign currencies are
translated into U.S. dollars at the closing rates of exchange. Amounts related
to the purchase and sale of foreign securities and investment income are
translated at the rates of exchange prevailing on the respective dates of such
transactions.
The effect of changes in foreign currency exchange rates on investments is
separately identified from the fluctuations arising from changes in market
values of securities held and reported with all other foreign currency gains and
losses in the Fund's Statement of Operations.
- -------------------------------------------------------------------------------
Repurchase Agreements. The Fund requires the custodian to take possession, to
have legally segregated in the Federal Reserve Book Entry System or to have
segregated within the custodian's vault, all securities held as collateral for
repurchase agreements. The market value of the underlying securities is required
to be at least 102% of the resale price at the time of purchase. If the seller
of the agreement defaults and the value of the collateral declines, or if the
seller enters an insolvency proceeding, realization of the value of the
collateral by the Fund may be delayed or limited.
- -------------------------------------------------------------------------------
Allocation of Income, Expenses, 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' Compensation. 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, 1999, a provision of $3,086 was made for the Fund's projected benefit
obligations and payments of $9,434 were made to retired trustees, resulting in
an accumulated liability of $94,040 as of March 31, 1999.
24 Oppenheimer Global Growth & Income Fund
<PAGE>
===============================================================================
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.
- -------------------------------------------------------------------------------
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.
- -------------------------------------------------------------------------------
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.
25 Oppenheimer Global Growth & Income Fund
<PAGE>
Notes to Financial Statements (Unaudited)(Continued)
===============================================================================
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, 1999 Year Ended September 30, 1998
------------------------------- -----------------------------
Shares Amount Shares Amount
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 2,935,643 $ 49,805,044 8,166,418 $151,105,616
Dividends and
distributions reinvested 2,127,687 34,784,762 985,898 16,923,623
Redeemed (2,927,039) (49,527,115) (5,266,895) (96,289,134)
---------- ------------ ---------- ------------
Net increase 2,136,291 $ 35,062,691 3,885,421 $ 71,740,105
========== ============ ========== ============
- --------------------------------------------------------------------------------------------------
Class B:
Sold 1,445,117 $ 24,317,252 3,694,602 $ 69,285,741
Dividends and
distributions reinvested 827,672 13,445,239 218,630 3,732,968
Redeemed (718,584) (12,039,205) (705,388) (12,705,039)
---------- ------------ ---------- ------------
Net increase 1,554,205 $ 25,723,286 3,207,844 $ 60,313,670
========== ============ ========== ============
- --------------------------------------------------------------------------------------------------
Class C:
Sold 859,376 $ 14,486,363 2,110,026 $ 39,519,237
Dividends and
distributions reinvested 682,883 11,092,656 258,216 4,399,103
Redeemed (620,471) (10,416,812) (850,145) (15,537,649)
---------- ------------ ---------- ------------
Net increase 921,788 $ 15,162,207 1,518,097 $ 28,380,691
========== ============ ========== ============
</TABLE>
===============================================================================
3. Unrealized Gains and Losses on Investments
As of March 31, 1999, net unrealized appreciation on investments of $22,996,017
was composed of gross appreciation of $77,175,753, and gross depreciation of
$54,179,736.
26 Oppenheimer Global Growth & Income Fund
<PAGE>
===============================================================================
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 of the Fund, 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 six months ended March 31, 1999 was 0.79% of average annual net assets
for each class of shares.
For the six months ended March 31, 1999, commissions (sales charges paid by
investors) on sales of Class A shares totaled $445,115, of which $130,803 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 A, Class
B and Class C shares totaled $42,249, $742,566 and $120,938, respectively.
Amounts paid to an affiliated broker/dealer for Class B and Class C shares were
$69,003 and $2,266, respectively. During the six months ended March 31, 1999,
OFDI received contingent deferred sales charges of $131,319 and $9,441,
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.
Expenses paid indirectly represent a reduction of custodian fees for
earnings on cash balances maintained by the Fund.
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, 1999, OFDI paid $27,140 to an
affiliated broker/dealer as reimbursement for Class A personal service and
maintenance expenses.
27 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 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 six months
ended March 31, 1999, OFDI paid $2,998 to an affiliated broker/dealer as
compensation for Class B personal service and maintenance expenses and retained
$445,847 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,
1999, OFDI had incurred excess distribution and servicing costs of $3,299,332
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 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 six months
ended March 31, 1999, OFDI paid $7,351 to an affiliated broker/dealer as
reimbursement for Class C personal service and maintenance expenses and retained
$259,332 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, 1999, OFDI had incurred excess distribution and servicing costs of
$872,715 for Class C.
28 Oppenheimer Global Growth & Income Fund
<PAGE>
===============================================================================
5. Foreign Currency Contracts
A foreign currency exchange contract is a commitment to purchase or sell a
foreign currency at a future date, at a negotiated rate. The Fund may enter into
foreign currency exchange contracts for operational purposes and to seek to
protect against adverse exchange rate fluctuation. Risks to the Fund include the
potential inability of the counterparty to meet the terms of the contract.
The net U.S. dollar value of foreign currency underlying all contractual
commitments held by the Fund and the resulting unrealized appreciation or
depreciation are determined using foreign currency exchange rates as provided by
a reliable bank, dealer or pricing service. Unrealized appreciation and
depreciation on foreign currency contracts are reported in the Statement of
Assets and Liabilities.
The Fund may realize a gain or loss upon the closing or settlement of the
foreign currency transaction. Realized gains and losses are reported with all
other foreign currency gains and losses in the Statement of Operations.
Securities denominated in foreign currency to cover net exposure on
outstanding foreign currency contracts are noted in the Statement of Investments
where applicable.
===============================================================================
6. Illiquid and Restricted Securities
As of March 31, 1999, 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 March 31, 1999, was $20,000, which represents
0.004% of the Fund's net assets.
29 Oppenheimer Global Growth & Income Fund
<PAGE>
Notes to Financial Statements (Unaudited)(Continued)
===============================================================================
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 six months ended March
31, 1999.
30 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
Servicing Agent OppenheimerFunds Services
===============================================================================
Custodian of The Bank of New York
Portfolio Securities
===============================================================================
Independent Auditors KPMG 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,
are not insured by the FDIC or any other agency, and
involve investment risks, including the possible loss of
the principal amount invested.
31 Oppenheimer Global Growth & Income Fund
<PAGE>
Information and services
- -------------------------------------------------------------------------------
As an Oppenheimer fund shareholder, you have some special privileges. Whether
it's automatic investment plans, informative newsletters and hotlines, or ready
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And when you need help, our Customer Service Representatives are only a
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handle administrative requests. You can reach them at our General Information
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When you want to make a transaction, you can do it easily by calling our
toll-free Telephone Transactions number or by visiting our website. And, by
enrolling in AccountLink, a convenient service that "links" your Oppenheimer
funds accounts and your bank checking or savings account, you can use the
Telephone Transactions number or website to make investments.
For added convenience, you can get automated information with
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PhoneLink gives you access to a variety of fund, account, and market
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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.
[logo] Oppenheimer Funds(R)
Distributor, Inc.
Internet
24-hr access to account
information. Online
transactions now available
www.oppenheimerfunds.com
General Information
Mon-Fri 8:30am-9pm ET
Sat 10am-4pm ET
1-800-525-7048
Account Transactions
Mon-Fri 8:30am-9pm ET
Sat 10am-4pm ET
1-800-852-8457
PhoneLink
24-hr automated information
and automated transactions
1-800-533-3310
Telecommunication Device
for the Deaf (TDD)
Mon-Fri 8:30am-6pm ET
1-800-843-4461
OppenheimerFunds
Information Hotline
24 hours a day, timely and
insightful messages on the
economy and issues that
affect your investments
1-800-835-3104
RS0215.001.0399 May 28, 1999
