[graphic]
photo of satellite dish
Annual Report September 30, 1999
Oppenheimer
Global Growth &
Income Fund
[logo] OppenheimerFunds(R)
The Right Way to Invest
<PAGE>
REPORT HIGHLIGHTS
Stocks worldwide rebounded dramatically in the wake of last year's global
currency and credit crisis, contributing to the Fund's strong performance.
The Fund made few strategic changes during the reporting period, focusing
primarily on fixed-income securities, dividend-paying stocks and growth stocks
from Europe and North America.
CONTENTS
1 President's Letter
3 An Interview
with Your Fund's
Manager
8 Fund Performance
14 Financial
Statements
32 Independent
Auditors' Report
33 Federal
Income Tax
Information
34 Officers and Trustees
35 OppenheimerFunds
Family
Average Annual
Total Returns
For the 1-Year Period
Ended 9/30/99*
Class A
Without With
Sales Chg. Sales Chg.
- -----------------------
70.06% 60.28%
Class B
Without With
Sales Chg. Sales Chg.
- -----------------------
68.80% 63.80%
Class C
Without With
Sales Chg. Sales Chg.
- -----------------------
68.79% 67.79%
Not FDIC Insured.
No Bank Guarantee.
May Lose Value.
* See page 12 for further details.
<PAGE>
PRESIDENT'S LETTER
[photo]
Bridget A. Macaskill
President
Oppenheimer
Global Growth &
Income Fund
Dear shareholder,
In many ways, the 1999 investment environment has, so far, unfolded as many
expected it would, producing both attractive opportunities and formidable
challenges for investors.
On the economic front, early worries about the effects of global weakness
in the wake of last year's credit and currency crises have abated. Instead, as
many economies around the world begin to strengthen, concerns now center around
whether the U.S. economy may be growing too quickly. Throughout the year,
consumers in the United States have continued to spend and borrow heavily, more
than offsetting any temporary slowdown in the industrial and export sectors.
The economy's strength has not gone unnoticed by the nation's monetary
policymakers. In an effort to ward off emerging inflationary pressures, the
Federal Reserve Board increased short-term interest rates this past summer.
Market reaction to robust economic growth has been mixed. The U.S. bond
market has generally declined, as fixed income investors became increasingly
concerned about the effects of rising interest rates.
In the stock market, the performance of large-capitalization growth
stocks, which has driven the market's advance over the past few years, has begun
to moderate, and many previously out-of-favor value-oriented mid-cap and
small-cap stocks have rallied. At the same time, a healthy percentage of
actively managed, diversified portfolios have once again begun to outperform
unmanaged stock indices such as Standard & Poor's 500.
At OppenheimerFunds, we applaud the Fed's pre-emptive strike against
inflation. In our view, history has repeatedly demonstrated that most financial
assets do best in a low-inflation environment. What's more, we believe that the
move to higher interest rates should be temporary.
1 | OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<PAGE>
PRESIDENT'S LETTER
One recent development is quite troublesome to us however: the increasing
popularity of "day trading" among individuals seeking to make fast money in a
volatile stock market. In our opinion, day trading is not investing, it is
gambling. Experience proves that without extensive research and analysis,
attempting to time short-term price swings is a fool's errand. Instead, we
continue to encourage investors to maintain a long-term perspective that is
measured in years, not days.
Finally, while we remain alert to the potential impact of the Y2K issue,
we are encouraged by the progress made in addressing the matter. At
OppenheimerFunds, our shareholder accounting systems are already Y2K compliant,
and we have successfully participated in all required industrywide tests. We
intend to continue retesting our systems in order to help further protect
against any potential problems. After all, whether in our computer accounting
systems or the financial markets, managing risk is an important part of what
makes OppenheimerFunds The Right Way to Invest.
Sincerely,
/s/ Bridget A. Macaskill
Bridget A. Macaskill
October 21, 1999
2 | OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<PAGE>
AN INTERVIEW WITH YOUR FUND'S MANAGER
[photo]
Portfolio Management
Team (l to r)
Frank Jennings
(Portfolio Manager)
William Wilby
George Evans
Q How did Oppenheimer Global Growth & Income Fund perform during the one-year
period that ended September 30, 1999?
A. We are very pleased with the Fund's performance over the past year. In fact,
the Fund's Class A shares were ranked 1 of 105 (one-year), 1 of 75 (three-year)
and 1 of 45 (five-year) among global flexible portfolio funds for the periods
ended September 30, 1999.(1) In addition, the Fund's Class A shares were
recently awarded a 5-star rating (*****) by Morningstar among 1,025 and 565
international equity funds for the 3- and 5-year periods ended September 30,
1999.(2)
We attribute the Fund's excellent performance during the reporting period
to our disciplined stock selection strategy. By identifying trends--such as
technological change and global restructuring--that are propelling global
growth, we have been able to take advantage of strong, individual companies that
have played important roles in enabling this growth.
1. Source: Lipper Analytical Services, Inc., 9/30/99. See page 12 for further
details.
2. Source: Morningstar, Inc., 9/30/99. See page 12 for further details.
3 | OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<PAGE>
AN INTERVIEW WITH YOUR FUND'S MANAGER
Why did the global financial markets rebound so quickly and dramatically?
In large part, the markets' recovery was the result of actions taken by central
banks worldwide as the crisis unfolded last year. When the reporting period
began, the Federal Reserve Board had just reduced key short-term interest rates
in order to stimulate global economic growth and restore much-needed liquidity
to the financial markets. That initial reduction was quickly followed by two
others. In addition, many other nations' central banks followed the Federal
Reserve Board's lead, reducing interest rates in their countries. In doing so,
the central banks made more funds available to companies seeking to raise
capital for ongoing operations and expansion.
In addition, the markets' recovery was enhanced by a concurrent increase
in corporate earnings. Certain key sectors of the global markets, including the
energy and semiconductor industries, began to recover after experiencing
recession-like conditions for several years. Higher oil prices and robust demand
for microchips helped fuel a rebound in those sectors, which positively
influenced the marketplace.
How did the various regions of the world fare in this environment?
The Asian markets rebounded strongly in 1999 as the fear of depression eased and
their economies stabilized. Japan's stock market has had a very good year so
far, driven by the widespread belief that the Japanese economy has stabilized
and may begin to recover from its longstanding recession. The advance of
European markets has paused as the region adjusts to a new currency, the euro,
which has weakened relative to the U.S. dollar. In the United States, stocks as
a whole had performed reasonably well, with the greatest returns coming from
technology and economically sensitive businesses.
[callout]
"Our successful investment strategy is based on three components: growth stocks,
fixed income securities and high yield stocks."
4 | OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<PAGE>
How was the Fund managed in this investment climate?
Our strategy has largely remained unchanged because we evaluate the prospects of
individual companies in the context of long-term growth trends, rather than
according to macroeconomic conditions or industry concentrations. In fact, one
of the only significant changes to the portfolio occurred in July, when we
shifted the emphasis of our fixed-income holdings from bonds in Asia and Latin
America to U.S. Treasury securities. In our view, U.S. interest rates had risen
more than economic conditions warranted, and we bought U.S. Treasury bonds to
lock in high yields and capture potential capital appreciation as interest rates
subsequently moderated.
What investments contributed most to the Fund's performance?
U.S. technology company National Semiconductor Corp. provided very good returns
over the past year as the industry recovered from a period of relatively
lackluster growth. Driven by greater demand for microprocessors, National
Semiconductor was a prime beneficiary of this recovery. In addition, the
company's stock price rallied when it sold an under-performing division in order
to focus on its more profitable niche businesses.
Average Annual
Total Returns
For the Periods Ended 9/30/99(3)
Class A Since
1-Year 5-Year Inception
- --------------------------
60.28% 19.83% 15.90%
Class B Since
1-Year 5-Year Inception
- --------------------------
63.80% N/A 24.35%
Class C Since
1-Year 5-Year Inception
- --------------------------
67.79% 20.35% 18.66%
3. See page 12 for further details.
5 | OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<PAGE>
AN INTERVIEW WITH YOUR FUND'S MANAGER
The Fund's largest position, QUALCOMM, Inc., also provided outstanding
returns.(4) This U.S. telecommunications company recently set a new standard for
software that runs cellular telephone communications. When this new--and, in our
opinion, superior--standard was adopted by many competing cellular telephone
equipment manufacturers, QUALCOMM, Inc.'s stock price rose dramatically.
Biotechnology firm Millennium Pharmaceuticals, Inc. was another winner for
the Fund. Millennium is a leader in the use of genetic engineering to develop
new drugs. The company's stock surged after a large German chemical company
invested several hundred million dollars for access to Millennium's research and
products.
As always, investing in foreign securities entails additional expenses and
risks including foreign currency fluctuations.
What is your outlook for the foreseeable future?
We currently see little reason that global stock markets need to either rise or
fall substantially from current levels. On one hand, many global economies are
either stable or growing, and we see little likelihood of an economic collapse
in these markets. On the other hand, valuations of many growth companies remain
quite high. As a result, we continue to believe that the greatest returns are
likely to be achieved by focusing on individual companies rather than overall
markets.
4. The Fund's portfolio is subject to change.
6 | OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<PAGE>
Fortunately, we have had no trouble identifying growth companies that we believe
will benefit from our investment themes, including Mass Affluence, New
Technologies, Corporate Restructuring and Aging. Adhering to these long-term
investment themes and focusing on the companies that we believe will benefit are
important parts of what makes OppenheimerFunds The Right Way to Invest.
Portfolio Allocation(5)
[pie chart]
U.S. Stocks 46.8%
Foreign Stocks 37.9
U.S. Bonds 12.3
Foreign Bonds 3.0
Geographical Diversification of Holdings(5)
- ----------------------------------------------------------
<TABLE>
<S> <C>
United States 58.4%
- ----------------------------------------------------------
United Kingdom 17.0
- ----------------------------------------------------------
France 9.5
- ----------------------------------------------------------
Germany 6.8
- ----------------------------------------------------------
The Netherlands 4.3
- ----------------------------------------------------------
Mexico 2.5
- ----------------------------------------------------------
Belgium 0.6
- ----------------------------------------------------------
Hong Kong 0.6
- ----------------------------------------------------------
India 0.3
</TABLE>
Top 10 Common Stock Holdings(5)
- ----------------------------------------------------------
<TABLE>
<S> <C>
QUALCOMM, Inc. 6.4%
- ----------------------------------------------------------
National Semiconductor Corp. 6.2
- ----------------------------------------------------------
Coherent, Inc. 4.8
- ----------------------------------------------------------
Sybase, Inc. 4.4
- ----------------------------------------------------------
Porsche AG, Preference 4.3
- ----------------------------------------------------------
Getronics NV 4.3
- ----------------------------------------------------------
Eurotunnel SA 3.5
- ----------------------------------------------------------
Reed International plc 3.4
- ----------------------------------------------------------
Allied Domecq plc 3.2
- ----------------------------------------------------------
Polaroid Corp. 2.9
</TABLE>
5. Portfolio is subject to change. Percentages are as of September 30, 1999, and
are based on total market value of investments.
7 | OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<PAGE>
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, 1999, followed by a graphical comparison of the
Fund's performance to two broad-based indices.
Management's discussion of performance. During the Fund's fiscal year
that ended September 30, 1999, Oppenheimer Global Growth & Income Fund provided
very good performance. Returns were generally attractive over the past year as
stocks and bonds worldwide recovered from last year's global credit and currency
crisis. Stocks also benefited from a recovery in certain commodities prices and
greater demand for technology products and services. In this environment, the
Fund made few strategic changes, with the exception of shifting the focus of our
fixed income holdings from emerging-market bonds to U.S. Treasury securities.
Overall, the Manager continued to adhere to its longstanding strategy of
identifying out-of-favor, dividend paying stocks; growth companies most likely
to benefit from the Fund's four long-term investment themes; and fixed income
securities providing competitive yields and the potential for capital
appreciation. The Fund's portfolio holdings, allocations and 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, 1999. 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. The Fund's performance reflects the
deduction of the maximum initial sales charge on Class A shares, the applicable
contingent deferred sales charge on Class B and Class C shares, and
reinvestments of all dividends and capital gains distributions.
8 | OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<PAGE>
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.
9 | OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<PAGE>
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
[line chart]
<TABLE>
<CAPTION>
Oppenheimer Global Growth & Income Fund Class A MSCI World Index Lehman Brothers Aggregate Bond Index
<S> <C> <C> <C>
10.22.90 9425 10000 10000
9.30.91 10531 11456 11454
10345 11407 12891
9.30.93 12517 13790 14177
14265 14903 13720
9.30.95 15325 17134 15649
17359 19567 16416
9.30.97 24101 24386 18011
21988 24511 20064
9.30.99 37393 31843 20010
</TABLE>
Average Annual Total Return of Class A Shares of the Fund at 9/30/99(1)
1-Year 60.28% 5-Year 19.83% Life 15.90%
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
[line chart]
<TABLE>
<CAPTION>
Oppenheimer Global Growth & Income Fund Class B MSCI World Index Lehman Brothers Aggregate Bond Index
<S> <C> <C> <C>
10.10.95 10000 10000 10000
9.30.96 11432 11420 10490
9.30.97 15742 14233 11509
9.30.98 14259 14305 12834
9.30.99 23769 18585 12787
</TABLE>
Average Annual Total Return of Class B Shares of the Fund at 9/30/99(1)
1-Year 63.80% Life 24.35%
10 | OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<PAGE>
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
[line chart]
<TABLE>
<CAPTION>
Oppenheimer Global Growth & Income Fund Class C MSCI World Index Lehman Brothers Aggregate Bond Index
<S> <C> <C> <C>
12.1.93 10000 10000 10000
9.30.94 10741 11144 9724
9.30.95 11451 12813 11092
9.30.96 12878 14632 11635
9.30.97 17737 18236 12765
9.30.98 16064 18329 14235
9.30.99 27113 23812 14183
</TABLE>
Average Annual Total Return of Class C Shares of the Fund at 9/30/99(1)
1-Year 67.79% 5-Year 20.35% Life 18.66%
The performance information for both indices in the graphs begins on 10/31/90
for Class A, 9/30/95 for Class B and 11/30/93 for Class C.
1. See page 12 for further details.
Past performance is not predictive of future performance. Graphs are not drawn
to the same scale.
11 | OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<PAGE>
NOTES
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.
Total returns and the ending account values in the graphs include changes in
share price and reinvestment of dividends and capital gains distributions in a
hypothetical investment for the periods shown.
Class A. 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.
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. Class B shares are subject to an annual 0.75%
asset-based sales charge.
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. Class 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.
Lipper Ranking. Based on the comparisons between changes in net asset value
without considering sales charges, with dividends and capital gains
distributions of the Fund's Class A shares reinvested. The Fund's Class A shares
were ranked 1 of 105 (1-year), 1 of 75 (3-year) and 1 of 45 (5-year) among
global flexible portfolio funds for the periods ended 9/30/99.
Morningstar Rating. Morningstar, Inc. rates 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 ratings are based on the
weighted average of 3-, 5- and 10-year (if applicable) ratings 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. The Fund's Class A
shares were rated 5 stars (3-year) and 5 stars (5-year) among 1,025 and 565
international equity funds, respectively, for the periods ended 9/30/99.
12 | OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<PAGE>
Financials
13 | OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<PAGE>
STATEMENT OF INVESTMENTS September 30, 1999
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
- -----------------------------------------------------------------------------------
<S> <C> <C>
Common Stocks--84.5%
- -----------------------------------------------------------------------------------
Basic Materials--2.6%
- -----------------------------------------------------------------------------------
Chemicals--2.6%
International Flavors & Fragrances, Inc. 669,500 $23,097,750
- -----------------------------------------------------------------------------------
Capital Goods--12.3%
- -----------------------------------------------------------------------------------
Electrical Equipment--2.2%
Halma plc 10,000,000 18,939,350
- -----------------------------------------------------------------------------------
Industrial Services--6.4%
Eurotunnel SA(1) 20,000,000 30,885,000
- -----------------------------------------------------------------------------------
True North Communications, Inc. 700,000 25,462,500
-----------
56,347,500
- -----------------------------------------------------------------------------------
Manufacturing--3.7%
Sidel SA 100,000 10,181,400
- -----------------------------------------------------------------------------------
Societe BIC SA 450,000 21,959,235
-----------
32,140,635
- -----------------------------------------------------------------------------------
Communication Services--2.7%
- -----------------------------------------------------------------------------------
Telecommunications-Long Distance--2.7%
Altran Technologies SA 60,000 18,051,750
- -----------------------------------------------------------------------------------
Global Crossing Ltd.(1) 200,000 5,300,000
-----------
23,351,750
- -----------------------------------------------------------------------------------
Consumer Cyclicals--11.4%
- -----------------------------------------------------------------------------------
Autos & Housing--6.6%
General Motors Corp. 200,000 12,587,500
- -----------------------------------------------------------------------------------
Hanson plc 1,000,000 7,707,492
- -----------------------------------------------------------------------------------
Porsche AG, Preference 14,000 37,871,400
-----------
58,166,392
- -----------------------------------------------------------------------------------
Leisure & Entertainment--1.0%
Hasbro, Inc. 400,000 8,575,000
- -----------------------------------------------------------------------------------
Media--3.4%
Reed International plc 5,000,000 30,097,098
- -----------------------------------------------------------------------------------
Textile/Apparel & Home Furnishings--0.4%
Hermes International SA 30,000 3,274,875
- -----------------------------------------------------------------------------------
Consumer Staples--11.0%
- -----------------------------------------------------------------------------------
Beverages--3.7%
Allied Domecq plc 5,000,000 28,532,543
- -----------------------------------------------------------------------------------
Bass plc 296,000 3,570,809
-----------
32,103,352
14 | OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<PAGE>
<CAPTION>
Market Value
Shares See Note 1
- -----------------------------------------------------------------------------------
<S> <C> <C>
Broadcasting--0.3%
CD Radio, Inc.(1) 100,000 $ 2,550,000
- -----------------------------------------------------------------------------------
Entertainment--0.5%
Piccadilly Cafeterias, Inc.(2) 650,000 4,265,625
- -----------------------------------------------------------------------------------
Food--2.4%
Thorntons plc(2) 6,265,000 21,254,727
- -----------------------------------------------------------------------------------
Household Goods--4.1%
Hindustan Lever Ltd. 150 8,811
- -----------------------------------------------------------------------------------
Reckitt & Colman plc 1,100,000 13,659,389
- -----------------------------------------------------------------------------------
Wella AG, Preference 750,000 22,365,000
-----------
36,033,200
- -----------------------------------------------------------------------------------
Financial--0.8%
- -----------------------------------------------------------------------------------
Diversified Financial--0.8%
Edinburgh Fund Managers Group 1,000,000 7,229,891
- -----------------------------------------------------------------------------------
ICICI Ltd. 10 20
-----------
7,229,911
- -----------------------------------------------------------------------------------
Healthcare--11.8%
- -----------------------------------------------------------------------------------
Healthcare/Drugs--8.2%
Cheminor Drugs Ltd. 217,300 2,919,182
- -----------------------------------------------------------------------------------
Gilead Sciences, Inc.(1) 100,000 6,418,750
- -----------------------------------------------------------------------------------
Human Genome Sciences, Inc.(1) 240,000 17,700,000
- -----------------------------------------------------------------------------------
Millennium Pharmaceuticals, Inc.(1) 370,000 24,050,000
- -----------------------------------------------------------------------------------
Neurogen Corp.(1,2) 1,225,000 20,365,625
-----------
71,453,557
- -----------------------------------------------------------------------------------
Healthcare/Supplies & Services--3.6%
Affymetrix, Inc.(1) 126,400 12,442,500
- -----------------------------------------------------------------------------------
St. Jude Medical, Inc.(1) 600,000 18,900,000
-----------
31,342,500
- -----------------------------------------------------------------------------------
Technology--31.9%
- -----------------------------------------------------------------------------------
Computer Software--11.3%
Electronic Arts, Inc.(1) 50,000 3,618,750
- -----------------------------------------------------------------------------------
Getronics NV 700,000 37,759,575
- -----------------------------------------------------------------------------------
Lernout & Hauspie Speech Products NV(1) 150,000 5,231,250
- -----------------------------------------------------------------------------------
Psion plc 540,000 8,848,794
- -----------------------------------------------------------------------------------
Sybase, Inc.(1) 3,300,000 38,981,250
- -----------------------------------------------------------------------------------
Symantec Corp.(1) 125,000 4,496,094
-----------
98,935,713
15 | OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<PAGE>
STATEMENT OF INVESTMENTS Continued
<CAPTION>
Market Value
Shares See Note 1
- -----------------------------------------------------------------------------------
<S> <C> <C>
Communications Equipment--6.5%
QUALCOMM, Inc.(1) 300,000 $ 56,756,250
- -----------------------------------------------------------------------------------
Electronics--11.1%
Coherent, Inc.(1,2) 1,900,000 42,393,750
- -----------------------------------------------------------------------------------
National Semiconductor Corp.(1) 1,800,000 54,900,000
-----------
97,293,750
- -----------------------------------------------------------------------------------
Photography--3.0%
Polaroid Corp. 1,000,000 26,000,000
-----------
Total Common Stocks (Cost $588,375,408) 739,208,935
Face
Amount(3)
- -----------------------------------------------------------------------------------
U.S. Government Obligations--10.6%
U.S. Treasury Bonds, STRIPS:
6.05%, 11/15/26(4) $ 50,000,000 9,395,150
6.11%, 11/15/27(4) 100,000,000 17,812,500
6.14%, 8/15/23(4) 50,000,000 11,373,250
6.22%, 8/15/26(4) 50,000,000 9,541,300
6.25%, 8/15/22(4) 50,000,000 11,809,600
6.26%, 8/15/25(4) 50,000,000 10,096,750
6.28%, 11/15/24(4) 50,000,000 10,550,650
6.46%, 5/15/21(4) 50,000,000 12,513,650
-----------
Total U.S. Government Obligations (Cost $95,430,838) 93,092,850
- -----------------------------------------------------------------------------------
Foreign Government Obligations--2.5%
United Mexican States Treasury Bills, Zero Coupon:
26.08%, 2/10/00(4) [MXN] 194,539,540 19,228,487
26.09%, 1/13/00(4) [MXN] 24,807,400 2,498,956
-----------
Total Foreign Government Obligations (Cost $20,540,468) 21,727,443
- -----------------------------------------------------------------------------------
Non-Convertible Corporate Bonds and Notes--2.4%
Bangkok Bank Public Co., 8.75% Sub. Nts., 3/15/07(5) 6,175,000 5,009,364
- -----------------------------------------------------------------------------------
CD Radio, Inc., Units (each unit consists of $1,000 principal
amount of 14.50% sr. nts., 5/15/09 and three warrants to
purchase 10.95 shares of common stock)(5,6) 6,000,000 6,270,000
- -----------------------------------------------------------------------------------
IBJ Preferred Capital Co. (The) LLC, 8.79% Bonds,
12/29/49(5,7) 10,000,000 9,554,490
-----------
Total Non-Convertible Corporate Bonds and Notes (Cost $20,374,098) 20,833,854
- -----------------------------------------------------------------------------------
Convertible Corporate Bonds and Notes--1.2%
Reckitt & Colman plc, 9.50% Cv. Capital Bonds, 3/31/05
(Cost $11,048,489) 3,800,000 10,388,645
- -----------------------------------------------------------------------------------
Structured Instruments--0.0%
Deutsche Bank AG, Russian OFZ Linked Nts., 33.327%, 9/12/01(8)
(Cost $2,663,966) 2,000,000 20,000
16 | OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<PAGE>
<CAPTION>
Market Value
See Note 1
- -----------------------------------------------------------------------------------
<S> <C> <C>
- -----------------------------------------------------------------------------------
Total Investments, at Value (Cost $738,433,267) 101.2% $885,271,727
- -----------------------------------------------------------------------------------
Liabilities in Excess of Other Assets (1.2) (10,396,245)
- -----------------------------------------------------------------------------------
Net Assets 100.0% $874,875,482
=========================
</TABLE>
Distribution of investments representing geographic diversification, as a
percentage of total investments at value, is as follows:
<TABLE>
<CAPTION>
Geographical Diversification Market Value Percent
- -----------------------------------------------------------------------------------
<S> <C> <C>
United States $517,778,683 58.4%
Great Britain 150,228,738 17.0
France 84,352,261 9.5
Germany 60,236,400 6.8
The Netherlands 37,759,575 4.3
Mexico 21,727,443 2.5
Belgium 5,231,250 0.6
Hong Kong 5,009,364 0.6
India 2,928,013 0.3
Russia 20,000 0.0
---------------------------
Total $885,271,727 100.0%
===========================
</TABLE>
FOOTNOTES TO STATEMENT OF INVESTMENTS
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 September 30,
1999. The aggregate fair value of securities of affiliated companies held by the
Fund as of September 30, 1999 amounts to $88,279,727.
Transactions during the period in which the issuer was an affiliate are as
follows:
<TABLE>
<CAPTION>
Shares Shares
Sept. 30, Gross Gross Sept. 30, Dividend
1998 Additions Reductions 1999 Income
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Coherent, Inc. 1,050,000 850,000 -- 1,900,000 $ --
- -------------------------------------------------------------------------------------------
Neurogen Corp. 260,000 965,000 -- 1,225,000 --
- -------------------------------------------------------------------------------------------
Piccadilly Cafeterias, Inc. 100,000 550,000 -- 650,000 143,784
- -------------------------------------------------------------------------------------------
Thorntons plc -- 6,265,000 -- 6,265,000 97,330
--------
$241,114
========
</TABLE>
3. Face amount is reported in U.S. dollars, except for those denoted in the
following currency: MXN Mexican Nuevo Peso
4. For zero coupon bonds, the interest rate shown is the effective yield on the
date of purchase.
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 $20,833,854 or 2.38% of the Fund's net
assets as of September 30, 1999.
6. Units may be comprised of several components, such as debt and equity and/or
warrants to purchase equity at some point in the future. For units which
represent debt securities, face amount disclosed represents total underlying
principal.
7. Represents the current interest rate for a variable rate security.
8. Identifies issues considered to be illiquid or restricted--See Note 6 of
Notes to Financial Statements.
See accompanying Notes to Financial Statements.
17 | OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES September 30, 1999
<TABLE>
<S> <C>
- -----------------------------------------------------------------------------------
Assets
Investments, at value--see accompanying statement:
Unaffiliated companies (cost $670,052,445) $796,992,000
Affiliated companies (cost $68,380,822) 88,279,727
- -----------------------------------------------------------------------------------
Receivables and other assets:
Investments sold 39,452,521
Shares of beneficial interest sold 9,486,635
Interest and dividends 1,689,086
Other 7,668
------------
Total assets 935,907,637
- -----------------------------------------------------------------------------------
Liabilities
Bank overdraft 30,442,403
- -----------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 28,808,126
Shares of beneficial interest redeemed 830,175
Distribution and service plan fees 470,606
Transfer and shareholder servicing agent fees 162,257
Shareholder reports 101,631
Trustees' compensation--Note 1 96,885
Other 120,072
------------
Total liabilities 61,032,155
- -----------------------------------------------------------------------------------
Net Assets $874,875,482
============
- -----------------------------------------------------------------------------------
Composition of Net Assets
Paid-in capital $662,721,533
- -----------------------------------------------------------------------------------
Undistributed net investment income 12,010,868
- -----------------------------------------------------------------------------------
Accumulated net realized gain on investments and foreign
currency transactions 53,763,611
- -----------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of
assets and liabilities denominated in foreign currencies 146,379,470
------------
Net assets $874,875,482
============
</TABLE>
18 | OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<PAGE>
<TABLE>
<S> <C>
- --------------------------------------------------------------------------------------
Net Asset Value Per Share
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$482,481,425 and 20,642,737 shares of beneficial interest outstanding) $23.37
Maximum offering price per share (net asset value plus sales charge
of 5.75% of offering price) $24.80
- --------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net assets of
$235,032,261 and 10,151,938 shares of beneficial interest outstanding) $23.15
- --------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net assets of
$157,361,796 and 6,797,329 shares of beneficial interest outstanding) $23.15
</TABLE>
See accompanying Notes to Financial Statements.
19 | OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<PAGE>
STATEMENT OF OPERATIONS For the Year Ended September 30, 1999
<TABLE>
<S> <C>
- -----------------------------------------------------------------------------------
Investment Income
Interest (net of foreign withholding taxes of $460) $ 12,998,166
- -----------------------------------------------------------------------------------
Dividends:
Unaffiliated companies (net of foreign withholding taxes of $481,184) 7,837,603
Affiliated companies (net of foreign withholding taxes of $10,815) 241,114
------------
Total income 21,076,883
- -----------------------------------------------------------------------------------
Expenses
Management fees--Note 4 4,277,769
- -----------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 749,399
Class B 1,345,563
Class C 1,041,395
- -----------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 1,051,740
- -----------------------------------------------------------------------------------
Shareholder reports 218,423
- -----------------------------------------------------------------------------------
Custodian fees and expenses 214,860
- -----------------------------------------------------------------------------------
Registration and filing fees 89,144
- -----------------------------------------------------------------------------------
Legal, auditing and other professional fees 33,849
- -----------------------------------------------------------------------------------
Trustees' compensation--Note 1 27,185
- -----------------------------------------------------------------------------------
Other 44,210
------------
Total expenses 9,093,537
Less expenses paid indirectly--Note 1 (6,627)
------------
Net expenses 9,086,910
- -----------------------------------------------------------------------------------
Net Investment Income 11,989,973
- -----------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments 62,392,645
Foreign currency transactions (5,048,037)
------------
Net realized gain 57,344,608
- -----------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments 201,609,051
Translation of assets and liabilities denominated in
foreign currencies 769,896
------------
Net change 202,378,947
------------
Net realized and unrealized gain 259,723,555
- -----------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations $271,713,528
============
</TABLE>
See accompanying Notes to Financial Statements.
20 | OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Ended September 30, 1999 1998
- -----------------------------------------------------------------------------------
<S> <C> <C>
Operations
Net investment income $ 11,989,973 $ 4,964,736
- -----------------------------------------------------------------------------------
Net realized gain 57,344,608 63,530,210
- -----------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation 202,378,947 (112,300,442)
---------------------------
Net increase (decrease) in net assets resulting from
operations 271,713,528 (43,805,496)
- -----------------------------------------------------------------------------------
Dividends and/or Distributions to Shareholders
Dividends from net investment income:
Class A (2,129,087) (6,864,117)
Class B (473,352) (1,464,595)
Class C (381,559) (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 (34,264,677) (10,520,713)
Class B (13,697,971) (2,432,947)
Class C (11,497,333) (3,038,690)
- -----------------------------------------------------------------------------------
Beneficial Interest Transactions
Net increase in net assets resulting from beneficial interest
transactions--Note 2:
Class A 152,013,727 71,740,105
Class B 101,665,724 60,313,670
Class C 46,473,370 28,380,691
- -----------------------------------------------------------------------------------
Net Assets
Total increase 509,422,370 90,387,195
- -----------------------------------------------------------------------------------
Beginning of period 365,453,112 275,065,917
---------------------------
End of period [including undistributed (overdistributed)
net investment income of $12,010,868 and $(61,900),
respectively] $874,875,482 $365,453,112
===========================
</TABLE>
See accompanying Notes to Financial Statements.
21 | OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Class A Year Ended September 30, 1999 1998 1997 1996 1995
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $16.03 $19.36 $15.62 $14.98 $15.21
- ---------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .41 .29 .40 .47 .45
Net realized and unrealized gain (loss) 9.64 (1.90) 5.12 1.40 .54
------------------------------------------------
Total income (loss) from
investment operations 10.05 (1.61) 5.52 1.87 .99
- ---------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.15) (.63) (.40) (.40) (.40)
Dividends in excess of net investment
income -- (.02) -- -- --
Distributions from net realized gain (2.56) (1.07) (1.38) (.83) (.82)
------------------------------------------------
Total dividends and distributions
to shareholders (2.71) (1.72) (1.78) (1.23) (1.22)
- ---------------------------------------------------------------------------------------------
Net asset value, end of period $23.37 $16.03 $19.36 $15.62 $14.98
================================================
- ---------------------------------------------------------------------------------------------
Total Return, at Net Asset Value(1) 70.06% (8.77)% 38.83% 13.28% 7.43%
- ---------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $482,481 $212,765 $181,716 $120,214 $113,341
- ---------------------------------------------------------------------------------------------
Average net assets (in thousands) $309,772 $216,009 $141,582 $115,186 $120,267
- ---------------------------------------------------------------------------------------------
Ratios to average net assets:(2)
Net investment income 2.51% 1.62% 2.47% 2.65% 3.09%
Expenses 1.33% 1.36%(3) 1.43%(3) 1.52%(3) 1.63%(3)
- ---------------------------------------------------------------------------------------------
Portfolio turnover rate(4) 98% 117% 91% 208% 135%
</TABLE>
1. 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.
2. Annualized for periods of less than one full year.
3. Expense ratio reflects the effect of expenses paid indirectly by the Fund.
4. 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, 1999, were $785,468,271 and $522,226,857, respectively.
See accompanying Notes to Financial Statements.
22 | OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<PAGE>
<TABLE>
<CAPTION>
Class B Year Ended September 30, 1999 1998 1997 1996(5)
- -----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $15.95 $19.27 $15.57 $14.72
- -----------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .29 .23 .30 .36
Net realized and unrealized gain (loss) 9.55 (1.96) 5.06 1.63
--------------------------------------
Total income (loss) from
investment operations 9.84 (1.73) 5.36 1.99
- -----------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.08) (.51) (.28) (.31)
Dividends in excess of net investment income -- (.01) -- --
Distributions from net realized gain (2.56) (1.07) (1.38) (.83)
--------------------------------------
Total dividends and distributions
to shareholders (2.64) (1.59) (1.66) (1.14)
- -----------------------------------------------------------------------------------
Net asset value, end of period $23.15 $15.95 $19.27 $15.57
======================================
- -----------------------------------------------------------------------------------
Total Return, at Net Asset Value(1) 68.80% (9.42)% 37.69% 14.33%
- -----------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $235,032 $81,866 $37,071 $8,131
- -----------------------------------------------------------------------------------
Average net assets (in thousands) $134,974 $63,012 $17,474 $3,815
- -----------------------------------------------------------------------------------
Ratios to average net assets:(2)
Net investment income 1.76% 1.42% 1.77% 1.64%
Expenses 2.08% 2.11%(3) 2.15%(3) 2.28%(3)
- -----------------------------------------------------------------------------------
Portfolio turnover rate(4) 98% 117% 91% 208%
</TABLE>
1. 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.
2. Annualized for periods of less than one full year.
3. Expense ratio reflects the effect of expenses paid indirectly by the Fund.
4. 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, 1999, were $785,468,271 and $522,226,857, respectively.
5. For the period from October 10, 1995 (inception of offering) to September 30,
1996.
See accompanying Notes to Financial Statements.
23 | OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<PAGE>
FINANCIAL HIGHLIGHTS Continued
<TABLE>
<CAPTION>
Class C Year Ended September 30, 1999 1998 1997 1996 1995
- ---------------------------------------------------------------------------------------------
<S> <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
- ---------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .29 .17 .28 .35 .35
Net realized and unrealized gain (loss) 9.55 (1.91) 5.08 1.40 .53
------------------------------------------------
Total income (loss) from
investment operations 9.84 (1.74) 5.36 1.75 .88
- ---------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.08) (.48) (.27) (.29) (.31)
Dividends in excess of net investment income -- (.02) -- -- --
Distributions from net realized gain (2.56) (1.07) (1.38) (.83) (.82)
------------------------------------------------
Total dividends and distributions
to shareholders (2.64) (1.57) (1.65) (1.12) (1.13)
- ---------------------------------------------------------------------------------------------
Net asset value, end of period $23.15 $15.95 $19.26 $15.55 $14.92
================================================
- ---------------------------------------------------------------------------------------------
Total Return, at Net Asset Value(1) 68.79% (9.43)% 37.74% 12.45% 6.61%
- ---------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $157,362 $70,822 $56,278 $35,706 $28,295
- ---------------------------------------------------------------------------------------------
Average net assets (in thousands) $104,560 $65,502 $43,338 $31,371 $22,211
- ---------------------------------------------------------------------------------------------
Ratios to average net assets:(2)
Net investment income 1.76% 0.86% 1.71% 1.87% 2.36%
Expenses 2.08% 2.12%(3) 2.18%(3) 2.28%(3) 2.39%(3)
- ---------------------------------------------------------------------------------------------
Portfolio turnover rate(4) 98% 117% 91% 208% 135%
</TABLE>
1. 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.
2. Annualized for periods of less than one full year.
3. Expense ratio reflects the effect of expenses paid indirectly by the Fund.
4. 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, 1999, were $785,468,271 and $522,226,857, respectively.
5. For the period from October 10, 1995 (inception of offering) to September 30,
1996.
See accompanying Notes to Financial Statements.
24 | OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<PAGE>
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'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 on investments up to $1 million. Class B
and Class C shares may be subject to a contingent deferred sales charge (CDSC).
All classes of shares have identical rights to earnings, assets and voting
privileges, except that each class has its own expenses directly attributable to
that class and exclusive voting rights with respect to matters affecting that
class. Classes A, B and C have separate distribution and/or service plans. 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.
- --------------------------------------------------------------------------------
Securities 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 currenc 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.
Options are valued based upon the last sale price on the principal exchange on
which the option is traded or, in the absence of any transactions that day, the
value is based upon the last sale price on the prior trading date if it is
within the spread between the closing bid and asked prices. If the last sale
price is outside the spread, the closing bid is used.
25 | OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<PAGE>
NOTES TO FINANCIAL STATEMENTS 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 year ended
September 30, 1999, a provision of $3,060 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 $94,014 as of September 30, 1999.
26 | 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 compensation 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 Trustees 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.
- --------------------------------------------------------------------------------
Dividends and Distributions to Shareholders. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations,
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 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, 1999, amounts have been reclassified to reflect an
increase in undistributed net investment income of $3,066,793. Accumulated net
realized gain on investments was decreased by the same amount.
- --------------------------------------------------------------------------------
Expense Offset Arrangements. Expenses paid indirectly represent a reduction of
custodian fees for earnings on cash balances maintained by the Fund.
- --------------------------------------------------------------------------------
Other. Investment transactions are accounted for as of trade date and dividend
income is recorded on the ex-dividend date. Foreign dividend income is often
recorded on the payable date. 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.
27 | OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<PAGE>
NOTES TO FINANCIAL STATEMENTS 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>
Year Ended September 30, 1999 Year Ended September 30, 1998
Shares Amount Shares Amount
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Sold 12,286,834 $257,043,828 8,166,418 $151,105,616
Dividends and/or
distributions reinvested 2,127,688 34,784,772 985,898 16,923,623
Redeemed (7,045,802) (139,814,873) (5,266,895) (96,289,134)
---------------------------------------------------------
Net increase 7,368,720 $152,013,727 3,885,421 $ 71,740,105
=========================================================
- --------------------------------------------------------------------------------------
Class B
Sold 5,723,532 $117,423,335 3,694,602 $ 69,285,741
Dividends and/or
distributions reinvested 827,997 13,450,551 218,630 3,732,968
Redeemed (1,531,721) (29,208,162) (705,388) (12,705,039)
---------------------------------------------------------
Net increase 5,019,808 $101,665,724 3,207,844 $ 60,313,670
=========================================================
- --------------------------------------------------------------------------------------
Class C
Sold 2,812,202 $ 56,628,274 2,110,026 $ 39,519,237
Dividends and/or
distributions reinvested 682,703 11,089,724 258,216 4,399,103
Redeemed (1,138,460) (21,244,628) (850,145) (15,537,649)
---------------------------------------------------------
Net increase 2,356,445 $ 46,473,370 1,518,097 $ 28,380,691
=========================================================
</TABLE>
- --------------------------------------------------------------------------------
3. Unrealized Gains and Losses on Securities
As of September 30, 1999, net unrealized appreciation on securities of
$146,838,460 was composed of gross appreciation of $181,127,366, and gross
depreciation of $34,288,906.
- --------------------------------------------------------------------------------
4. Management Fees and Other Transactions with Affiliates
Management Fees. 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 year ended September 30, 1999, was 0.78% of average
annual net assets for each class of shares.
- --------------------------------------------------------------------------------
Transfer Agent Fees. 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.
28 | OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<PAGE>
- --------------------------------------------------------------------------------
Distribution and Service Plan Fees. Under its General Distributor's Agreement
with the Manager, the Distributor acts as the Fund's principal underwriter in
the continuous public offering of the different classes of shares of the Fund.
The compensation paid to (or retained by) the Distributor from the sale of
shares or on the redemption of shares is shown in the table below for the period
indicated.
<TABLE>
<CAPTION>
Aggregate Class A Commissions Commissions Commissions
Front-End Front-End on Class A on Class B on Class C
Sales Charges Sales Charges Shares Shares Shares
on Class A Retained by Advanced by Advanced by Advanced by
Year Ended Shares Distributor Distributor(1) Distributor(1) Distributor(1)
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
September 30, 1999 $1,478,727 $450,307 $93,740 $2,976,814 $433,138
</TABLE>
1. The Distributor advances commission payments to dealers for certain sales of
Class A shares and for sales of Class B and Class C shares from its own
resources at the time of sale.
<TABLE>
<CAPTION>
Class A Class B Class C
Contingent Deferred Contingent Deferred Contingent Deferred
Sales Charges Sales Charges Sales Charges
Year Ended Retained by Distributor Retained by Distributor Retained by Distributor
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C>
September 30, 1999 $-- $245,145 $22,517
</TABLE>
The Fund has adopted a Service Plan for Class A shares and Distribution
and Service Plans for Class B and Class C shares under Rule 12b-1 of the
Investment Company Act. Under those plans the Fund pays the Distributor for all
or a portion of its costs incurred in connection with the distribution and/or
servicing of the shares of the particular class.
- --------------------------------------------------------------------------------
Class A Service Plan Fees. Under the Class A service plan, the Distributor
currently uses the fees it receives from the Fund to pay brokers, dealers and
other financial institutions. The Class A service plan permits reimbursements to
the Distributor at a rate of up to 0.25% of average annual net assets of Class A
shares. The Distributor makes payments to plan recipients quarterly at an annual
rate not to exceed 0.25% of the average annual net assets consisting of Class A
shares of the Fund. For the fiscal year ended September 30, 1999, payments under
the Class A Plan totaled $749,399, all of which was paid by the Distributor to
recipients. That included $63,239 paid to an affiliate of the Distributor's
parent company. Any unreimbursed expenses the Distributor incurs with respect to
Class A shares in any fiscal year cannot be recovered in subsequent years.
29 | OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<PAGE>
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
4. Management Fees and Other Transactions with Affiliates Continued
Class B and Class C Distribution and Service Plan Fees. Under each plan, service
fees and distribution fees are computed on the average of the net asset value of
shares in the respective class, determined as of the close of each regular
business day during the period. The Class B and Class C plans provide for the
Distributor to be compensated at a flat rate, whether the Distributor's
distribution expenses are more or less than the amounts paid by the Fund under
the plan during the period for which the fee is paid.
The Distributor retains the asset-based sales charge on Class B shares.
The Distributor retains the asset-based sales charge on Class C shares during
the first year the shares are outstanding. The asset-based sales charges on
Class B and Class C shares allow investors to buy shares without a front-end
sales charge while allowing the Distributor to compensate dealers that sell
those shares.
The Distributor's actual expenses in selling Class B and Class C shares
may be more than the payments it receives from the contingent deferred sales
charges collected on redeemed shares and from the Fund under the plans. If
either the Class B or the Class C plan is terminated by the Fund, the Board of
Trustees may allow the Fund to continue payments of the asset-based sales charge
to the Distributor for distributing shares before the plan was terminated. The
plans allow for the carry-forward of distribution expenses, to be recovered from
asset-based sales charges in subsequent fiscal periods.
Distribution fees paid to the Distributor for the year ended September 30, 1999,
were as follows:
<TABLE>
<CAPTION>
Distributor's Distributor's
Aggregate Unreimbursed
Unreimbursed Expenses as %
Total Payments Amount Retained Expenses of Net Assets
Under Plan by Distributor Under Plan of Class
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class B Plan $1,345,563 $1,170,605 $5,177,072 2.20%
Class C Plan 1,041,395 516,145 1,200,045 0.76
</TABLE>
30 | 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 fluctuations. 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 transactions. 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 or Restricted Securities
As of September 30, 1999, investments in securities included issues that are
illiquid. 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 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, 1999, was $20,000.
- --------------------------------------------------------------------------------
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,
1999.
31 | OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<PAGE>
INDEPENDENT AUDITORS' REPORT
- --------------------------------------------------------------------------------
To the Board of Trustees and Shareholders of
Oppenheimer Global Growth & Income Fund:
We have audited the accompanying statement of assets and liabilities, including
the statement of investments, of Oppenheimer Global Growth & Income Fund as of
September 30, 1999, 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, 1999, 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, 1999, 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 LLP
Denver, Colorado
October 21, 1999
32 | OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<PAGE>
FEDERAL INCOME TAX INFORMATION Unaudited
- --------------------------------------------------------------------------------
In early 2000 shareholders will receive information regarding all dividends and
distributions paid to them by the Fund during calendar year 1999. Regulations of
the U.S. Treasury Department require the Fund to report this information to the
Internal Revenue Service.
Distributions of $2.6619, $2.6349 and $2.6346 per share were paid to Class
A, Class B and Class C shareholders, respectively, on December 4, 1998, of which
$0.6917 was designated as a "capital gain distribution" for federal income tax
purposes. Whether received in stock or in cash, the capital gain distribution
should be treated by shareholders as a gain from the sale of capital assets held
for more than one year (long-term capital gains).
Dividends paid by the Fund during the fiscal year ended September 30,
1999, which are not designated as capital gain distributions should be
multiplied by 4.09% 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.
33 | OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<PAGE>
OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<TABLE>
- ----------------------------------------------------------------------------------
<S> <C>
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
Phillip A. Griffiths, 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
Andrew J. Donohue, Secretary
Brian W. Wixted, Treasurer
Robert G. Zack, Assistant Secretary
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
- ----------------------------------------------------------------------------------
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 LLP
- ----------------------------------------------------------------------------------
Legal Counsel Mayer, Brown & Platt
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.
</TABLE>
34 | OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<PAGE>
OPPENHEIMERFUNDS FAMILY
<TABLE>
- ------------------------------------------------------------------------------------------------------
<S> <C> <C>
Global Equity
Developing Markets Fund Global Fund
International Small Company Fund Quest Global Value Fund
Europe Fund Global Growth & Income Fund
International Growth Fund
- ------------------------------------------------------------------------------------------------------
Equity
Stock Stock & Bond
Enterprise Fund(1) Main Street(R) Growth & Income Fund
Discovery Fund Quest Opportunity Value Fund
Main Street(R) Small Cap Fund Total Return Fund
Quest Small Cap Value Fund Quest Balanced Value Fund
MidCap Fund Capital Income Fund(2)
Capital Appreciation Fund Multiple Strategies Fund
Growth Fund Disciplined Allocation Fund
Disciplined Value Fund Convertible Securities Fund
Quest Value Fund
Trinity Growth Fund Specialty
Trinity Core Fund Real Asset Fund
Trinity Value Fund Gold & Special Minerals Fund
- ------------------------------------------------------------------------------------------------------
Fixed Income
Taxable Municipal
International Bond Fund Main Street(R) California Municipal Fund(3)
World Bond Fund California Municipal Fund(3)
High Yield Fund Florida Municipal Fund(3)
Champion Income Fund New Jersey Municipal Fund(3)
Strategic Income Fund New York Municipal Fund(3)
Bond Fund Pennsylvania Municipal Fund(3)
Senior Floating Rate Fund Municipal Bond Fund
U.S. Government Trust Insured Municipal Fund
Limited-Term Government Fund Intermediate Municipal Fund
Rochester Division
Rochester Fund Municipals
Limited Term New York Municipal Fund
- ------------------------------------------------------------------------------------------------------
Money Market(4)
Money Market Fund Cash Reserves
</TABLE>
1. Effective July 1, 1999, this fund is closed to new investors. See prospectus
for details.
2. On 4/1/99, the Fund's name was changed from "Oppenheimer Equity Income Fund."
3. Available to investors only in certain states.
4. An investment in money market funds is neither insured nor guaranteed by the
Federal Deposit Insurance Corporation or any other government agency. Although
these funds may seek to preserve the value of your investment at $1.00 per
share, it is possible to lose money by investing in these funds.
Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc., Two
World Trade Center, New York, NY 10048-0203.
(C) Copyright 1999 OppenheimerFunds, Inc. All rights reserved.
35 | OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<PAGE>
THIS PAGE INTENTIONALLY LEFT BLANK
<PAGE>
INFORMATION AND SERVICES
As an Oppenheimer fund shareholder, you can benefit from special services
designed to make investing simple. Whether it's automatic investment plans,
timely market updates, or immediate account access, you can count on us whenever
you need assistance. So call us today, or visit our website--we're here to
help.
Internet
24-hr access to account information and transactions
www.oppenheimerfunds.com
- --------------------------------------------------------------------------------
General Information
Mon-Fri 8:30am-9pm ET, Sat 10am-4pm ET
1.800.525.7048
- --------------------------------------------------------------------------------
Telephone 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
- --------------------------------------------------------------------------------
Telecommunications Device for the Deaf (TDD)
Mon-Fri 8:30am-7pm ET
1.800.843.4461
- --------------------------------------------------------------------------------
OppenheimerFunds Information Hotline
24 hours a day, timely and insightful messages on the economy and issues that
may affect your investments
1.800.835.3104
- --------------------------------------------------------------------------------
Transfer and Shareholder Servicing Agent
OppenheimerFunds Services
P.O. Box 5270, Denver, CO 80217-5270
[logo]OppenheimerFunds(R)
Distributor, Inc.
RA0215.001.0999 November 29, 1999
