[photo of satellite dishes]
Semiannual Report March 31, 2000
Oppenheimer
Global Growth &
Income Fund
[logo]
OppenheimerFunds(R)
The Right Way to Invest
<PAGE>
REPORT HIGHLIGHTS
#1 Lipper Ranking: The Fund's Class A shares were ranked by Lipper 1 of 105
(1-year), 1 of 83 (3-year) and 1 of 61 (5-year) among global flexible portfolio
funds for the periods ended March 31, 2000.(1)
We seek to invest in individual companies that we view as positioned to benefit
from far-reaching trends that will propel global growth for many years.
We added to our bond allocation during the period, maintaining the view that
there should be a sharp increase in demand for longer-term income securities
later in the year.
Contents
1 President's Letter
3 An Interview
with Your Fund's
Manager
8 Financial
Statements
28 Officers and Trustees
Cumulative
Total Returns
For the 6-Month Period
Ended 3/31/00(2)
Class A
Without With
Sales Chg. Sales Chg.
----------------------
54.01% 45.15%
Class B
Without With
Sales Chg. Sales Chg.
----------------------
53.43% 48.43%
Class C
Without With
Sales Chg. Sales Chg.
----------------------
53.48% 52.48%
1. Lipper rankings are based on the comparisons of changes in net asset values
without considering sales charges, and with dividends and capital gains
distributions reinvested.
2. See Notes, page 7, for further details.
<PAGE>
PRESIDENT'S LETTER
[photo]
Bridget A. Macaskill
President
Oppenheimer
Global Growth &
Income Fund
Dear Shareholder,
For many years, we have encouraged investors to consider whether they could
tolerate more risk in their long-term investments by participating in the stock
market, which has historically provided higher long-term returns than any other
asset class. Today, however, we have a very different concern: some investors
may be assuming too much risk by concentrating their investments in just a
handful of stocks or sectors or by "chasing performance."
Alan Greenspan, the Chairman of the Federal Reserve Board, has stated his
view that the recent spectacular returns of some sectors of the market are
partly responsible for pushing our economy to growth rates that could lead to
higher inflation. The dramatic rise in the prices of a narrow segment of the
market has created enormous wealth for some investors. In turn, those investors
are spending at a rate that the Fed believes may threaten the healthy growth of
our economy.
That's why the Fed has been raising interest rates steadily and decisively
over the past year. By making borrowing more expensive, the Fed is attempting to
slow economic growth. It is a precarious balancing act: too much tightening
creates the risk of recession, while too little opens the door to inflation.
The implications are clear: investors must be prepared for near-term market
volatility. In the bond market, higher interest rates usually lead to lower bond
prices. In the stock market, slower economic growth could reduce corporate
earnings and put downward pressure on stock prices. Highly valued stocks may be
particularly vulnerable to a correction. The Securities and Exchange Commission
Chairman, Arthur Levitt, has cautioned investors against the expectation that
the types of returns seen in the recent bull market will last forever. We agree.
1 | OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<PAGE>
PRESIDENT'S LETTER
Because of the prospect of continued market volatility, we encourage you to
consider diversifying your investments. Indeed, diversification may help you
mitigate the effects of sharp declines in any one area. It may also help you
better position your portfolio to seek greater returns over the long run.
While "new economy" stocks have risen since our last report to you, many "old
economy" stocks are selling at unusually low prices. In the bond market, higher
interest rates over the short term may reduce inflation concerns, which should
be beneficial over the long term. By buying out-of-favor investments, you may be
able to profit when and if they return to favor in the future. Of course, there
is no assurance that value investing will return to favor in the market, but it
may be a diversification strategy to consider for part of your portfolio.
What specific investments should you consider today so that you are prepared
for tomorrow? The answer depends on your individual investing goals, risk
tolerance and financial circumstances. We urge you to talk with your financial
advisor about ways to diversify your portfolio. This may include considering
global diversification as part of your strategy. While investing abroad has
special risks, such as the effects of foreign currency fluctuation, it also
offers opportunities to participate in global economic growth and to hedge
against the volatility in U.S. markets.
We thank you for your continued confidence in OppenheimerFunds, The Right Way
to Invest.
Sincerely,
/S/ Bridget A. Macaskill
Bridget A. Macaskill
April 24, 2000
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)
Willim Wilby
George Evans
Q How did the Fund perform during the six months that ended March 31, 2000?
A. We're very pleased with the performance of Oppenheimer Global Growth & Income
Fund during the past six months. In addition, the Fund's Class A shares were
rated 5-star (*****) overall by Morningstar for the combined 3- and 5-year
periods ended March 31, 2000, among 1,124 and 672 international equity funds.(1)
How did you achieve this strong performance?
It's not a secret. We've simply done more of the same. First, we seek to invest
in individual companies that we view as positioned to benefit from far-reaching
trends that will propel global growth for many years. Second, we allocate a
smaller portion of the portfolio to bonds that can help to moderate the impact
of short-term stock market fluctuations.
Many of our growth stocks appreciated considerably during the past six
months. To maintain the desired balance of assets between "growth" and "value,"
we strived to direct much of the new cash received from investors into value
stocks. In addition, we sought to add to our investment in long-term U.S.
Treasury bonds, which generally provided both current income and some capital
appreciation.
1. 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 1,124 and 672 international equity
funds, respectively for the periods ended 3/31/00.
3 | OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<PAGE>
AN INTERVIEW WITH YOUR FUND'S MANAGER
What occurred in the global markets to help or hurt the Fund's performance?
Over the reporting period, the markets were partial to "new economy" stocks, a
relatively narrow list of growth securities that is heavily concentrated in
technology-related areas. Investors were concerned that the Internet could be
detrimental to traditional "brick-and-mortar" businesses. At the same time, they
anticipated tremendous growth for many new businesses--such as cellular phones,
wireless computers, cable TV, Internet content providers and wireless data
transmission--and for the companies that provide hardware for these new
innovations, such as semiconductor manufacturers.
For the reporting period that ended March 31, 2000, the Fund had a fairly
high concentration in these "new economy" stocks (approximately 40% of total
assets), so the markets' fondness for technology served the Fund well.(2)
We saw sizable gains in companies like National Semiconductor Corp. (US),
our third largest holding, and Coherent, Inc. (US), an optical equipment
manufacturer.
As always, please keep in mind that investing in foreign securities
entails additional expenses and risks, including foreign currency fluctuations.
How did the value stocks in the portfolio fare?
The value stocks in the portfolio provided a reasonable income. However, they
were not major contributors to performance and some lost value during the
period. Investors have shunned value stocks for some time, and many of those
stocks have now been reduced to prices that are not reflective of the company's
worth. We saw this as an opportunity to invest in several that have histories of
paying high dividends and, in our opinion, still have good long-term potential.
[callout]
"The Fund performed exceptionally well over the reporting period, outperforming
its benchmark indices by a considerable margin."
2. The portfolio is subject to change. Technology stocks may be highly volatile.
4 | OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<PAGE>
Why did you increase your investment in bonds?
It is part of our long-term strategy for the Fund. We believe that perhaps later
this year, there will be a sharp increase in demand for longer-term income
securities, which are already somewhat scarce. Although there is much talk in
the United States about inflationary pressures and the Fed has already begun
tightening the money supply, we believe that our economy is actually deflating.
If we are correct, interest rates may decline once the deflation becomes more
evident, and investors will go in search of investments that will pay them
higher rates for a longer period of time. Demand for investments like the
long-term Treasuries that we hold in the portfolio would rise, driving up their
prices.
What do you foresee for world markets in the coming months?
When we look at the future of global investing, we tend to think in terms of
long-term themes, not in terms of countries, regions, and short-term market
gains or losses. Over the long term, we look for the markets, especially those
in the developed nations, to continue to favor companies that participate in
broad trends like new technology, aging, mass affluence and restructuring. We
will continue to pursue growth by taking positions in companies that fit these
trends and have competitive advantages. To provide income and, to a lesser
extent, some additional growth potential, we expect to invest in dividend-paying
stocks and fixed-income securities. We believe this approach will continue to be
part of The Right Way to Invest for more aggressive investors seeking long-term
capital appreciation.
Average Annual Total Returns
For the Periods Ended 3/31/00(3)
Class A Since
1-Year 5-Year Inception
.........................
95.63% 31.67% 20.37%
Class B Since
1-Year 5-Year Inception
.........................
101.03% N/A 33.74%
Class C Since
1-Year 5-Year Inception
.........................
105.09% 32.25% 25.25%
-------------------------
The Fund's returns at 3/31/00 include results for periods of exceptional market
performance that are not typical of historical results. You should not expect
those growth rates to continue. Because of ongoing market volatility, the Fund's
performance since 3/31/00 has been subject to substantial short-term
fluctuations and current performance may be less than the results shown.
3. See notes on page 7 for further details.
5 | OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<PAGE>
Geographic Diversification of Holdings(4)
----------------------------------------------------------
United States 51.9%
----------------------------------------------------------
Japan 15.1
----------------------------------------------------------
Great Britain 13.5
----------------------------------------------------------
France 7.5
----------------------------------------------------------
The Netherlands 4.2
----------------------------------------------------------
Germany 4.1
----------------------------------------------------------
Belgium 2.1
----------------------------------------------------------
Russia 0.8
----------------------------------------------------------
Lebanon 0.6
----------------------------------------------------------
Hong Kong 0.2
Top Ten Common Stock Holdings(4)
----------------------------------------------------------
QUALCOMM, Inc. 6.8%
----------------------------------------------------------
Toshiba Corp. 5.0
----------------------------------------------------------
National Semiconductor Corp. 4.1
----------------------------------------------------------
Sharp Corp. 4.1
----------------------------------------------------------
Coherent, Inc. 4.0
----------------------------------------------------------
Sybase, Inc. 3.8
----------------------------------------------------------
Toyo Communications Equipment Co. Ltd. 2.6
----------------------------------------------------------
Bass plc 2.4
----------------------------------------------------------
Reed International plc 2.2
----------------------------------------------------------
Porsche AG, Preference 2.2
Regional Allocation(4)
[pie chart]
United States/
Canada 51.9%
Europe 31.4
Asia 15.3
Emerging Europe 0.8
Middle East/
Africa 0.6
4. Portfolio is subject to change. Percentages are as of March 31, 2000, and are
based on total market value of investments.
6 | 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. For quarterly
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 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. The Fund's total returns shown do
not show the effects of income taxes on an individual's investment. Taxes may
reduce your actual investment returns on income or gains paid by the Fund or any
gains you may realize if you sell your shares.
Class A shares were first publicly offered on 10/22/90. Unless otherwise noted,
Class A returns include the current maximum initial sales charge of 5.75%.
Class B shares of the Fund were first publicly offered on 10/10/95. Unless
otherwise noted, Class B returns include the applicable contingent deferred
sales charge of 5% (1-year) and 2% (since inception). 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. Unless
otherwise noted, Class C returns include the contingent deferred sales charge of
1% for the 1-year period. Class C shares are subject to an annual 0.75%
asset-based sales charge.
An explanation of the calculations of performance is in the Fund's Statement of
Additional Information.
7 | OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<PAGE>
STATEMENT OF INVESTMENTS March 31, 2000 / Unaudited
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
===================================================================================
<S> <C> <C>
Common Stocks--79.1%
-----------------------------------------------------------------------------------
Basic Materials--1.3%
-----------------------------------------------------------------------------------
Chemicals--1.3%
International Flavors & Fragrances, Inc.(1) 1,000,000 $ 35,062,500
-----------------------------------------------------------------------------------
Capital Goods--11.1%
-----------------------------------------------------------------------------------
Electrical Equipment--7.0%
Halma plc(2) 20,000,000 29,991,640
-----------------------------------------------------------------------------------
Toshiba Corp. 13,000,000 132,579,340
-----------------------------------------------------------------------------------
Ushio, Inc. 1,000,000 21,352,313
------------
183,923,293
-----------------------------------------------------------------------------------
Industrial Services--2.0%
Eurotunnel SA, ESA-Unites(3) 46,132,167 53,414,084
-----------------------------------------------------------------------------------
Manufacturing--2.1%
HAMAMATSU PHOTONICS K.K. 300,000 22,229,805
-----------------------------------------------------------------------------------
Shiseido Co., Ltd. 600,000 8,160,679
-----------------------------------------------------------------------------------
Societe BIC SA 600,000 24,400,950
------------
54,791,434
-----------------------------------------------------------------------------------
Communication Services--3.0%
-----------------------------------------------------------------------------------
Telecommunications: Long Distance--3.0%
Altran Technologies SA 41,523 10,132,007
-----------------------------------------------------------------------------------
Toyo Communications Equipment Co. Ltd. 2,958,000 69,360,796
------------
79,492,803
-----------------------------------------------------------------------------------
Consumer Cyclicals--14.6%
-----------------------------------------------------------------------------------
Autos & Housing--4.4%
General Motors Corp. 500,000 41,406,250
-----------------------------------------------------------------------------------
Porsche AG, Preference 20,000 58,370,901
-----------------------------------------------------------------------------------
Solidere, GDR(3) 19,800 155,925
-----------------------------------------------------------------------------------
Solidere, GDR(3,4) 2,055,200 16,184,700
------------
116,117,776
-----------------------------------------------------------------------------------
Consumer Services--0.1%
Central Parking Corp. 144,000 2,880,000
-----------------------------------------------------------------------------------
Leisure & Entertainment--2.3%
Hasbro, Inc. 2,000,000 33,000,000
-----------------------------------------------------------------------------------
Host Marriott Corp. 3,000,000 26,625,000
------------
59,625,000
8 | OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<PAGE>
Market Value
Shares See Note 1
-----------------------------------------------------------------------------------
Media--5.5%
Reed International plc 8,000,000 $ 58,419,887
-----------------------------------------------------------------------------------
True North Communications, Inc. 700,000 27,518,750
-----------------------------------------------------------------------------------
Wolters Kluwer NV 2,500,000 57,414,000
------------
143,352,637
-----------------------------------------------------------------------------------
Retail: Specialty--2.0%
Boots Co. plc 6,000,000 51,424,496
-----------------------------------------------------------------------------------
Textile/Apparel & Home Furnishings--0.3%
Hermes International SA 60,000 8,325,030
-----------------------------------------------------------------------------------
Consumer Staples--8.1%
-----------------------------------------------------------------------------------
Beverages--4.4%
Allied Domecq plc 10,000,000 52,605,018
-----------------------------------------------------------------------------------
Bass plc 4,999,999 62,934,573
------------
115,539,591
-----------------------------------------------------------------------------------
Broadcasting--1.0%
ProSieben Media AG, Preference 205,600 24,789,069
-----------------------------------------------------------------------------------
Food--0.4%
Thorntons plc(2) 6,265,000 10,594,228
-----------------------------------------------------------------------------------
Household Goods--2.3%
Hindustan Lever Ltd. 150 8,394
-----------------------------------------------------------------------------------
Reckitt Benckiser plc 3,823,700 36,370,944
-----------------------------------------------------------------------------------
Wella AG, Preference 1,000,000 24,908,107
------------
61,287,445
-----------------------------------------------------------------------------------
Financial--0.4%
-----------------------------------------------------------------------------------
Diversified Financial--0.4%
Edinburgh Fund Managers Group 1,000,000 10,449,215
-----------------------------------------------------------------------------------
ICICI Ltd. 10 31
------------
10,449,246
-----------------------------------------------------------------------------------
Healthcare--8.9%
-----------------------------------------------------------------------------------
Healthcare/Drugs--8.2%
ALZA Corp., Cl. A(3) 400,000 15,025,000
-----------------------------------------------------------------------------------
American Home Products Corp. 700,000 37,537,500
-----------------------------------------------------------------------------------
Genset, Sponsored ADR(3) 700,000 22,739,062
-----------------------------------------------------------------------------------
Gilead Sciences, Inc.(3) 100,000 6,337,500
-----------------------------------------------------------------------------------
Human Genome Sciences, Inc. 480,000 39,870,000
-----------------------------------------------------------------------------------
Millennium Pharmaceuticals, Inc.(3) 370,000 48,053,750
-----------------------------------------------------------------------------------
Neurogen Corp.(2,3) 1,475,000 45,540,625
------------
215,103,437
9 | OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<PAGE>
STATEMENT OF INVESTMENTS Unaudited / Continued
Market Value
Shares See Note 1
-----------------------------------------------------------------------------------
Healthcare/Supplies & Services--0.7%
Affymetrix, Inc.(3) 126,400 $ 18,762,500
-----------------------------------------------------------------------------------
Technology--30.9%
-----------------------------------------------------------------------------------
Computer Services--2.1%
-----------------------------------------------------------------------------------
Getronics NV 700,000 53,519,417
-----------------------------------------------------------------------------------
Computer Software--8.7%
Hitachi Software Engineering Co., Ltd. 300,000 36,883,927
-----------------------------------------------------------------------------------
Lernout & Hauspie Speech Products NV(3) 500,000 55,250,000
-----------------------------------------------------------------------------------
Psion plc 540,000 35,854,049
-----------------------------------------------------------------------------------
Sybase, Inc.(2,3) 4,900,000 99,531,250
--------------
227,519,226
-----------------------------------------------------------------------------------
Communications Equipment--6.8%
QUALCOMM, Inc.(3) 1,200,000 179,175,000
-----------------------------------------------------------------------------------
Electronics--12.2%
Coherent, Inc.(2,3) 2,005,000 104,260,000
-----------------------------------------------------------------------------------
National Semiconductor Corp.(3) 1,800,000 109,125,000
-----------------------------------------------------------------------------------
Sharp Corp. 5,000,000 107,005,314
--------------
320,390,314
-----------------------------------------------------------------------------------
Photography--1.1%
Polaroid Corp. 1,200,000 28,500,000
-----------------------------------------------------------------------------------
Utilities--0.8%
-----------------------------------------------------------------------------------
Electric Utilities--0.8%
RAO Unified Energy Systems, Sponsored ADR(3) 1,000,000 19,400,000
--------------
Total Common Stocks (Cost $1,432,496,866) 2,073,438,526
Units
===================================================================================
Rights, Warrants and Certificates--0.1%
CD Radio, Inc. Wts., Exp. 5/15/09(4) (Cost $880,147) 18,000 2,187,000
Principal
Amount(5)
===================================================================================
U.S. Government Obligations--12.5%
U.S. Treasury Bonds, STRIPS:
6.27%, 8/15/25(6) $300,000,000 67,955,100
6.29%, 11/15/24(6) 100,000,000 23,559,200
6.31%, 11/15/27(6) 300,000,000 60,546,000
6.41%, 8/15/23(6) 100,000,000 25,178,000
6.43%, 8/15/26(6) 100,000,000 21,584,100
6.44%, 5/15/21(6) 100,000,000 28,349,000
6.44%, 11/15/26(6) 200,000,000 42,662,000
6.48%, 8/15/22(6) 100,000,000 26,535,500
-----------------------------------------------------------------------------------
U.S. Treasury Nts., STRIPS, 6.58%, 2/15/20(6) 100,000,000 30,305,300
--------------
Total U.S. Government Obligations (Cost $295,277,703) 326,674,200
</TABLE>
10 | OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<PAGE>
<TABLE>
<CAPTION>
Principal Market Value
Amount(5) See Note 1
===================================================================================
<S> <C> <C>
Foreign Government Obligations--3.0%
France (Government of) Obligations Assimilables
du Tresor Gtd. Principal Strips:
Series AP23, Zero Coupon, 5.74%, 4/25/23(6)[EUR] 200,000,000 $ 51,152,047
Series AP29, Zero Coupon, 5.81%, 4/25/29(6)[EUR] 150,000,000 28,308,690
--------------
Total Foreign Government Obligations
(Cost $79,958,466) 79,460,737
===================================================================================
Nonconvertible Corporate Bonds and Notes--0.8%
Bangkok Bank Public Co. Ltd., 8.75% Sub. Nts.,
3/15/07(4) 6,175,000 5,434,667
-----------------------------------------------------------------------------------
IBJ Preferred Capital Co. (The) LLC, 8.79% Bonds,
12/29/49(4,7) 10,000,000 9,541,300
-----------------------------------------------------------------------------------
Sirius Satellite Radio, Inc., 15.50% Sr. Sec. Nts.,
5/15/09 6,000,000 5,580,000
--------------
Total Nonconvertible Corporate Bonds and Notes
(Cost $19,659,265) 20,555,967
===================================================================================
Convertible Corporate Bonds and Notes--0.3%
Reckitt & Colman plc, 9.50% Cv. Capital Bonds, 3/31/05
(Cost $11,408,489) 3,800,000 8,032,336
===================================================================================
Structured Instruments--0.0%
Credit Suisse First Boston Corp. (New York Branch),
Russian OFZ Linked Nts.:
33.327%, 9/12/01(8) 2,000,000 574,436
Series 27004, 24.868%, 9/18/02(7,8)[RUR] 1,800,760 34,703
Series 27005, 24.868%, 10/9/02(7,8)[RUR] 1,904,570 35,517
Series 27006, 24.868%, 1/22/03(7,8)[RUR] 4,735,980 85,128
Series 27007, 25%, 2/5/03(7,8)[RUR] 1,852,310 33,179
Series 27009, 25%, 6/4/03(7,8)[RUR] 78,300 1,364
Series 27011, 24.868%, 10/8/03(7,8)[RUR] 452,520 7,451
--------------
Total Structured Instruments (Cost $3,245,732) 771,778
===================================================================================
Repurchase Agreements--4.7%
Repurchase agreement with Banc One Capital Markets,
Inc., 6.05%, dated 3/31/00, to be repurchased at
$124,162,567 on 4/3/00, collateralized by U.S.
Treasury Nts., 5%-7.50%, 5/31/00-2/15/07, with a
value of $83,020,670 and U.S. Treasury Bonds,
5.25%-12%, 11/15/09-2/15/29, with a value of
$43,669,969 (Cost $124,100,000) 124,100,000 124,100,000
-----------------------------------------------------------------------------------
Total Investments, at Value (Cost $1,966,666,668) 100.5% 2,635,220,544
-----------------------------------------------------------------------------------
Liabilities in Excess of Other Assets (0.5) (11,947,208)
---------------------------
Net Assets 100.0% $2,623,273,336
===========================
</TABLE>
11 | OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<PAGE>
STATEMENT OF INVESTMENTS Unaudited / Continued
FOOTNOTES TO STATEMENT OF INVESTMENTS
Distribution of investments representing geographic diversification, as a
percentage of total investments at value, is as follows:
<TABLE>
<CAPTION>
Geographic Diversification Market Value Percent
--------------------------------------------------------------------------------------
<S> <C> <C>
United States $1,366,293,125 51.9%
Japan 397,572,173 15.1
Great Britain 356,676,385 13.5
France 198,471,871 7.5
The Netherlands 110,933,418 4.2
Germany 108,068,077 4.1
Belgium 55,250,000 2.1
Russia 20,171,778 0.8
Lebanon 16,340,625 0.6
Hong Kong 5,434,667 0.2
India 8,425 0.0
--------------------------------
Total $2,635,220,544 100.0%
================================
</TABLE>
1. A sufficient amount of securities has been designated to cover outstanding
foreign currency contracts. See Note 5 of Notes to Financial Statements.
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, 2000.
The aggregate fair value of securities of affiliated companies held by the Fund
as of March 31, 2000 amounts to $289,917,743. Transactions during the period in
which the issuer was an affiliate are as follows:
<TABLE>
<CAPTION>
Shares Shares
Sept. 30, Gross Gross March 31, Dividend
1999 Additions Reductions 2000 Income
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Coherent, Inc. 1,900,000 105,000 -- 2,005,000 $ --
Halma plc* 10,000,000 10,000,000 -- 20,000,000 261,891
Neurogen Corp. 1,225,000 250,000 -- 1,475,000 --
Piccadilly Cafeterias, Inc. 650,000 -- 650,000 -- --
Sybase, Inc.* 3,300,000 1,600,000 -- 4,900,000 --
Thorntons plc 6,265,000 -- -- 6,265,000 694,934
--------
$956,825
========
</TABLE>
*Not an affiliate as of September 30, 1999.
3. Non-income producing security.
4. Represents securities sold under Rule 144A, which are exempt from
registration under the Securities Act of 1933, as amended. These securities have
been determined to be liquid under guidelines established by the Board of
Trustees. These securities amount to $33,347,667 or 1.27% of the Fund's net
assets as of March 31, 2000.
5. Principal amount is reported in U.S. Dollars, except for those denoted in the
following currencies:
EUR Euro
RUR Russian Ruble
6. For zero coupon bonds, the interest rate shown is the effective yield on the
date of purchase.
7. Represents the current interest rate for a variable or increasing 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.
12 | OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES Unaudited
<TABLE>
<CAPTION>
March 31, 2000
===================================================================================
<S> <C>
Assets
Investments, at value--see accompanying statement:
Unaffiliated companies (cost $1,794,140,840) $2,345,302,801
Affiliated companies (cost $172,525,828) 289,917,743
-----------------------------------------------------------------------------------
Cash 465,455
-----------------------------------------------------------------------------------
Unrealized appreciation on foreign currency contracts 272,412
-----------------------------------------------------------------------------------
Receivables and other assets:
Shares of beneficial interest sold 37,013,596
Investments sold 27,775,913
Interest and dividends 3,548,780
Other 23,835
--------------
Total assets 2,704,320,535
===================================================================================
Liabilities
Unrealized depreciation on foreign currency contracts 195,883
-----------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 75,082,067
Shares of beneficial interest redeemed 3,624,156
Distribution and service plan fees 1,310,191
Transfer and shareholder servicing agent fees 259,989
Trustees' compensation 109,806
Other 465,107
--------------
Total liabilities 81,047,199
===================================================================================
Net Assets $2,623,273,336
==============
===================================================================================
Composition of Net Assets
Paid-in capital $1,895,280,407
-----------------------------------------------------------------------------------
Undistributed net investment income 2,461,471
-----------------------------------------------------------------------------------
Accumulated net realized gain on investments and
foreign currency transactions 57,613,223
-----------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of
assets and liabilities denominated in foreign currencies 667,918,235
--------------
Net assets $2,623,273,336
==============
</TABLE>
13 | OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES Continued
<TABLE>
<CAPTION>
Unaudited
================================================================================
<S> <C>
Net Asset Value Per Share
Class A Shares:
Net asset value and redemption price per share (based on
net assets of $1,339,548,898 and 39,557,955 shares of
beneficial interest outstanding) $33.86
Maximum offering price per share (net asset value plus
sales charge of 5.75% of offering price) $35.93
--------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable
contingent deferred sales charge) and offering price per
share (based on net assets of $838,237,429 and 25,011,224
shares of beneficial interest outstanding) $33.51
--------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable
contingent deferred sales charge) and offering price per
share (based on net assets of $445,487,009 and 13,283,508
shares of beneficial interest outstanding) $33.54
</TABLE>
See accompanying Notes to Financial Statements.
14 | OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<PAGE>
STATEMENT OF OPERATIONS Unaudited
<TABLE>
<CAPTION>
For the Six Months Ended March 31, 2000
===================================================================================
<S> <C>
Investment Income
Interest (net of foreign withholding taxes of $28,700) $ 10,246,202
-----------------------------------------------------------------------------------
Dividends:
Unaffiliated companies (net of foreign withholding taxes of $230,493) 4,796,763
Affiliated companies (net of foreign withholding taxes of $106,314) 956,825
------------
Total income 15,999,790
===================================================================================
Expenses
Management fees 5,950,231
-----------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 1,034,677
Class B 2,414,273
Class C 1,401,679
-----------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees 1,292,569
-----------------------------------------------------------------------------------
Custodian fees and expenses 152,038
-----------------------------------------------------------------------------------
Trustees' compensation 31,107
-----------------------------------------------------------------------------------
Other 598,679
------------
Total expenses 12,875,253
Less expenses paid indirectly (17,346)
------------
Net expenses 12,857,907
===================================================================================
Net Investment Income 3,141,883
===================================================================================
Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments 67,539,499
Foreign currency transactions (4,949,328)
------------
Net realized gain 62,590,171
-----------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments 536,495,435
Translation of assets and liabilities denominated in
foreign currencies (14,956,670)
------------
Net change 521,538,765
------------
Net realized and unrealized gain 584,128,936
===================================================================================
Net Increase in Net Assets Resulting from Operations $587,270,819
============
</TABLE>
See accompanying Notes to Financial Statements.
15 | OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months Year
Ended Ended
March 31, 2000 September 30,
(Unaudited) 1999
===================================================================================
<S> <C> <C>
Operations
Net investment income $ 3,141,883 $ 11,989,973
-----------------------------------------------------------------------------------
Net realized gain 62,590,171 57,344,608
-----------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation 521,538,765 202,378,947
-----------------------------
Net increase in net assets resulting from operations 587,270,819 271,713,528
===================================================================================
Dividends and/or Distributions to Shareholders
Dividends from net investment income:
Class A (7,834,922) (2,129,087)
Class B (3,084,035) (473,352)
Class C (1,772,323) (381,559)
-----------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (31,268,616) (34,264,677)
Class B (16,980,328) (13,697,971)
Class C (10,491,615) (11,497,333)
===================================================================================
Beneficial Interest Transactions
Net increase in net assets resulting from
beneficial interest transactions:
Class A 580,155,996 152,013,727
Class B 453,853,832 101,665,724
Class C 198,549,046 46,473,370
===================================================================================
Net Assets
Total increase 1,748,397,854 509,422,370
-----------------------------------------------------------------------------------
Beginning of period 874,875,482 365,453,112
-----------------------------
End of period (including undistributed net investment
income of $2,461,471 and $12,010,868, respectively) $2,623,273,336 $874,875,482
=============================
</TABLE>
See accompanying Notes to Financial Statements.
16 | OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Six Months Year
Ended Ended
March 31, 2000 Sept. 30,
Class A (Unaudited) 1999 1998 1997 1996 1995
============================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $23.37 $16.03 $19.36 $15.62 $14.98 $15.21
----------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .04 .41 .29 .40 .47 .45
Net realized and unrealized gain (loss) 12.10 9.64 (1.90) 5.12 1.40 .54
--------------------------------------------------------------------
Total income (loss) from investment
operations 12.14 10.05 (1.61) 5.52 1.87 .99
----------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.33) (.15) (.63) (.40) (.40) (.40)
Dividends in excess of net investment income -- -- (.02) -- -- --
Distributions from net realized gain (1.32) (2.56) (1.07) (1.38) (.83) (.82)
--------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (1.65) (2.71) (1.72) (1.78) (1.23) (1.22)
----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $33.86 $23.37 $16.03 $19.36 $15.62 $14.98
====================================================================
============================================================================================================================
Total Return, at Net Asset Value(1) 54.01% 70.06% (8.77)% 38.83% 13.28% 7.43%
============================================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in millions) $1,340 $482 $213 $182 $120 $113
--------------------------------------------------------------------
Average net assets (in millions) $ 860 $310 $216 $142 $115 $120
----------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(2)
Net investment income (loss) 0.75% 2.51% 1.62% 2.47% 2.65% 3.09%
Expenses 1.23% 1.33% 1.36%(3) 1.43%(3) 1.52%(3) 1.63%(3)
----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(4) 13% 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 has not been grossed up to reflect the effect of expenses paid
indirectly.
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 March 31, 2000, were $1,270,051,128 and $213,873,875, respectively.
See accompanying Notes to Financial Statements
17 | OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<PAGE>
FINANCIAL HIGHLIGHTS Continued
<TABLE>
<CAPTION>
Six Months Year
Ended Ended
March 31, 2000 Sept. 30,
Class B (Unaudited) 1999 1998 1997 1996(5)
===========================================================================================================
<S> <C> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $23.15 $15.95 $19.27 $15.57 $14.72
-----------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.02) .29 .23 .30 .36
Net realized and unrealized gain (loss) 11.94 9.55 (1.96) 5.06 1.63
-----------------------------------------------------
Total income (loss) from investment operations 11.92 9.84 (1.73) 5.36 1.99
-----------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.24) (.08) (.51) (.28) (.31)
Dividends in excess of net investment income -- -- (.01) -- --
Distributions from net realized gain (1.32) (2.56) (1.07) (1.38) (.83)
-----------------------------------------------------
Total dividends and/or distributions
to shareholders (1.56) (2.64) (1.59) (1.66) (1.14)
-----------------------------------------------------------------------------------------------------------
Net asset value, end of period $33.51 $23.15 $15.95 $19.27 $15.57
=====================================================
===========================================================================================================
Total Return, at Net Asset Value(1) 53.43% 68.80% (9.42)% 37.69% 14.33%
===========================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in millions) $838 $235 $82 $37 $8
-----------------------------------------------------------------------------------------------------------
Average net assets (in millions) $486 $135 $63 $17 $4
-----------------------------------------------------------------------------------------------------------
Ratios to average net assets:(2)
Net investment income (loss) (0.03)% 1.76% 1.42% 1.77% 1.64%
Expenses 1.98% 2.08% 2.11%(3) 2.15%(3) 2.28%(3)
-----------------------------------------------------------------------------------------------------------
Portfolio turnover rate(4) 13% 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 has not been grossed up to reflect the effect of expenses paid
indirectly.
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 March 31, 2000, were $1,270,051,128 and $213,873,875, respectively.
5. For the period from October 10, 1995 (inception of offering) to September 30,
1996.
See accompanying Notes to Financial Statements
18 | OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<PAGE>
<TABLE>
<CAPTION>
Six Months Year
Ended Ended
March 31, 2000 Sept. 30,
Class C (Unaudited) 1999 1998 1997 1996 1995
============================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $23.15 $15.95 $19.26 $15.55 $14.92 $15.17
----------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.06) .29 .17 .28 .35 .35
Net realized and unrealized gain (loss) 11.99 9.55 (1.91) 5.08 1.40 .53
----------------------------------------------------------------------
Total income (loss) from investment
operations 11.93 9.84 (1.74) 5.36 1.75 .88
----------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.22) (.08) (.48) (.27) (.29) (.31)
Dividends in excess of net investment income -- -- (.02) -- -- --
Distributions from net realized gain (1.32) (2.56) (1.07) (1.38) (.83) (.82)
----------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (1.54) (2.64) (1.57) (1.65) (1.12) (1.13)
----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $33.54 $23.15 $15.95 $19.26 $15.55 $14.92
======================================================================
============================================================================================================================
Total Return, at Net Asset Value(1) 53.48% 68.79% (9.43)% 37.74% 12.45% 6.61%
============================================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in millions) $445 $157 $71 $56 $36 $28
----------------------------------------------------------------------------------------------------------------------------
Average net assets (in millions) $280 $105 $66 $43 $31 $22
----------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(2)
Net investment income (loss) (0.01)% 1.76% 0.86% 1.71% 1.87% 2.36%
Expenses 1.99% 2.08% 2.12%(3) 2.18%(3) 2.28%(3) 2.39%(3)
----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(4) 13% 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 has not been grossed up to reflect the effect of expenses paid
indirectly.
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 March 31, 2000, were $1,270,051,128 and $213,873,875, respectively.
See accompanying Notes to Financial Statements
19 | OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<PAGE>
================================================================================
1. Significant Accounting Policies
Oppenheimer Global Growth & Income Fund (the Fund) is registered under the
Investment Company Act of 1940, as amended, as an 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 at their offering price, which is normally net asset value plus an initial
sales charge. Class B and Class C shares are sold without an initial sales
charge but 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 shares 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. Securities for which quotations are readily available are
valued at the last sale price, or if in the absence of a sale, at the last sale
price on the prior trading day if it is within the spread of the closing bid and
asked prices, and if not, at the closing bid price. Securities (including
restricted securities) for which quotations are not readily available are valued
primarily using dealer-supplied valuations, a portfolio pricing service
authorized by the Board of Trustees, or at their fair value. Fair value is
determined in good faith under consistently applied procedures under the
supervision of the Board of Trustees. Foreign currency contracts are valued
based on the closing prices of the forward currency contract rates in the London
foreign exchange markets on a daily basis as provided by a reliable bank, dealer
or pricing service. Short-term "money market type" debt securities with
remaining maturities of sixty days or less are valued at cost (or last
determined market value) and adjusted for amortization or accretion to maturity
of any premium or discount.
--------------------------------------------------------------------------------
Structured Notes. The Fund invests in foreign currency-linked structured notes
whose market value and redemption price are linked to foreign currency exchange
rates. The structured notes may be leveraged, which increases the notes'
volatility relative to the face of the security. Fluctuations in value of these
securities are recorded as unrealized gains and losses in the accompanying
financial statements.
20 | OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<PAGE>
--------------------------------------------------------------------------------
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 an unfunded retirement plan for the
Fund's independent Board of 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, 2000, a provision of $10,252 was made for the Fund's projected
benefit obligations and payments of $4,006 were made to retired trustees,
resulting in an accumulated liability of $100,260 as of March 31, 2000.
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 Board of Trustees in shares of one
or more Oppenheimer funds selected by the trustee. The amount paid to the Board
of Trustees 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 investment income per share.
21 | OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<PAGE>
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
================================================================================
1. Significant Accounting Policies Continued
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.
--------------------------------------------------------------------------------
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. Certain dividends from foreign
securities will be recorded as soon as the Fund is informed of the dividend if
such information is obtained subsequent to the ex-dividend 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.
22 | OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<PAGE>
================================================================================
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, 2000 Year Ended September 30, 1999
Shares Amount Shares Amount
------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Sold 25,999,833 $802,153,726 12,286,834 $ 257,043,828
Dividends and/or
distributions reinvested 1,338,496 35,175,350 2,127,688 34,784,772
Redeemed (8,423,111) (257,173,080) (7,045,802) (139,814,873)
-------------------------------------------------------
Net increase 18,915,218 $580,155,996 7,368,720 $ 152,013,727
=======================================================
------------------------------------------------------------------------------------
Class B
Sold 15,547,067 $477,715,075 5,723,532 $ 117,423,335
Dividends and/or
distributions reinvested 726,225 18,932,692 827,997 13,450,551
Redeemed (1,414,006) (42,793,935) (1,531,721) (29,208,162)
-------------------------------------------------------
Net increase 14,859,286 $453,853,832 5,019,808 $ 101,665,724
=======================================================
------------------------------------------------------------------------------------
Class C
Sold 6,645,262 $205,464,410 2,812,202 $ 56,628,274
Dividends and/or
distributions reinvested 441,194 11,506,357 682,703 11,089,724
Redeemed (600,277) (18,421,721) (1,138,460) (21,244,628)
-------------------------------------------------------
Net increase 6,486,179 $198,549,046 2,356,445 $ 46,473,370
=======================================================
</TABLE>
================================================================================
3. Unrealized Gains and Losses on Securities
As of March 31, 2000, net unrealized appreciation on securities of $668,553,876
was composed of gross appreciation of $742,199,114, and gross depreciation of
$73,645,238.
23 | OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<PAGE>
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
================================================================================
4. 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 six months ended March 31, 2000, was 0.73% of average
annual net assets for each class of shares, annualized for periods of less than
one full year.
--------------------------------------------------------------------------------
Transfer Agent Fees. OppenheimerFunds Services (OFS), a division of the Manager,
is the transfer and shareholder servicing agent for the Fund and for other
Oppenheimer funds. OFS's total costs of providing such services are allocated
ratably to these funds.
--------------------------------------------------------------------------------
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
Six Months Ended Shares Distributor Distributor(1) Distributor(1) Distributor(1)
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
March 31, 2000 $4,331,993 $1,117,861 $427,939 $9,771,816 $1,279,778
</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
Six Months Ended Retained by Distributor Retained by Distributor Retained by Distributor
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
March 31, 2000 $5,586 $217,535 $20,920
</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.
24 | OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<PAGE>
--------------------------------------------------------------------------------
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 purchased. 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 six months ended March 31, 2000, payments
under the Class A plan totaled $1,034,677, all of which was paid by the
Distributor to recipients. That included $68,661 paid to an affiliate of the
Manager. Any unreimbursed expenses the Distributor incurs with respect to Class
A shares in any fiscal year cannot be recovered in subsequent years.
--------------------------------------------------------------------------------
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 asset-based sales charges from the Fund under
the plans. If any 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 six months ended March 31,
2000, 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 $2,414,273 $2,120,196 $14,590,207 1.74%
Class C Plan 1,401,679 614,244 2,806,321 0.63
</TABLE>
25 | OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<PAGE>
================================================================================
5. Foreign Currency Contracts
A foreign currency 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 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.
As of March 31, 2000, the Fund had outstanding foreign currency contracts as
follows:
<TABLE>
<CAPTION>
Expiration Contract Valuation as of Unrealized Unrealized
Contract Description Date Amount (000s) March 31, 2000 Appreciation Depreciation
----------------------------------------------------------------------------------------------------------------
Contracts to Purchase
<S> <C> <C> <C> <C> <C>
British Pound Sterling (GBP) 4/3/00-4/6/00 GBP 10,124 $16,150,865 $ 29,228 $ 9,089
Japanese Yen (JPY) 4/3/00-4/4/00 JPY 1,231,501 12,015,299 122,494 20,502
Euro (EUR) 4/4/00-4/5/00 EUR 36,242 34,691,262 -- 65,266
-----------------------
151,722 94,857
-----------------------
Contracts to Sell
Euro (EUR) 4/28/00 EUR 29,027 27,829,016 120,690 101,026
-----------------------
Total Unrealized Appreciation and Depreciation $272,412 $195,883
=======================
</TABLE>
================================================================================
6. Illiquid Securities
As of March 31, 2000, 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. The
aggregate value of illiquid securities subject to this limitation as of March
31, 2000, was $771,778, which represents 0.03% of the Fund's net assets.
26 | OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<PAGE>
================================================================================
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 0.45%. 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 0.08%
per annum.
The Fund had no borrowings outstanding during the six months ended March
31, 2000.
27 | OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<PAGE>
OPPENHEIMER GLOBAL GROWTH & INCOME FUND 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
Clayton K. Yeutter, Trustee
Frank Jennings, Vice President
Andrew J. Donohue, Secretary
Brian W. Wixted, Treasurer
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Robert G. Zack, Assistant Secretary
===================================================================================
Investment Advisor OppenheimerFunds, Inc.
===================================================================================
Distributor OppenheimerFunds Distributor, Inc.
===================================================================================
Transfer and Shareholder OppenheimerFunds Services
Servicing Agent
===================================================================================
Custodian of The Bank of New York
Portfolio Securities
===================================================================================
Independent Auditors KPMG LLP
===================================================================================
Legal Counsel Mayer, Brown & Platt
The financial statements included herein have been
taken from the records of the Fund without examination
of those records by 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 more
complete 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>
28 | OPPENHEIMER GLOBAL GROWTH & INCOME FUND
<PAGE>
INFORMATION AND SERVICES
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timely market updates, or immediate account access, you can count on us whenever
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Ticker Symbols
Class A: OPGIX Class B: OGGIX Class C: OGICX
RS0215.001.0300 May 30, 2000
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