File No. 33-54849
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549-1004
POST-EFFECTIVE
AMENDMENT NO. 1
TO
FORM S-6
For Registration Under the Securities Act of 1933 of Securities
of Unit Investment Trusts Registered on Form N-8B-2
OPPENHEIMER GLOBAL GROWTH & TREASURY SECURITIES TRUST, SERIES 1
(Exact Name of Trust)
NIKE SECURITIES L.P.
(Exact Name of Depositor)
1001 Warrenville Road
Lisle, Illinois 60532
(Complete address of Depositor's principal executive offices)
NIKE SECURITIES L.P. CHAPMAN AND CUTLER
Attn: James A. Bowen Attn: Eric F. Fess
1001 Warrenville Road 111 West Monroe Street
Lisle, Illinois 60532 Chicago, Illinois 60603
(Name and complete address of agents for service)
It is proposed that this filing will become effective (check
appropriate box)
: : immediately upon filing pursuant to paragraph (b)
: x : December 29, 1995
: : 60 days after filing pursuant to paragraph (a)
: : on (date) pursuant to paragraph (a) of rule (485 or 486)
Pursuant to Rule 24f-2 under the Investment Company Act of 1940,
the issuer has registered an indefinite amount of securities. A
24f-2 Notice for the offering was last filed on October 24, 1995.
<PAGE>
OPPENHEIMER GLOBAL GROWTH & TREASURY SECURITIES TRUST, SERIES 1
977,846 Units
PROSPECTUS
Part One
Dated December 20, 1995
Note: Part One of this Prospectus may not be distributed unless accompanied by
Part Two.
The Trust
The Oppenheimer Global Growth & Treasury Securities Trust (the "Trust") is a
unit investment trust consisting of a portfolio of "zero coupon" U.S. Treasury
bonds (Treasury Obligations) and shares of Oppenheimer Global Fund, Inc.
("Oppenheimer"). Oppenheimer is an open-end diversified management investment
company, commonly known as a mutual fund. At November 16, 1995, each Unit
represented a 1/977,846 undivided interest in the principal and net income of
the Trust (see "The Trust" in Part Two).
The Units being offered by this Prospectus are issued and outstanding Units
which have been purchased by the Sponsor in the secondary market or from the
Trustee after having been tendered for redemption. The profit or loss
resulting from the sale of Units will accrue to the Sponsor. No proceeds from
the sale of Units will be received by the Trust.
Public Offering Price
The Public Offering Price per Unit is equal to the aggregate value of the
Securities in the Portfolio of the Trust divided by the number of Units
outstanding, plus a sales charge of 5.5% of the Public Offering Price (5.820%
of the amount invested). At November 16, 1995, the Public Offering Price per
Unit was $10.7421 (see "Public Offering" in Part Two).
Please retain both parts of this Prospectus for future reference.
___________________________________________________________________________
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY
IS A CRIMINAL OFFENSE.
___________________________________________________________________________
NIKE SECURITIES L.P.
Sponsor
<PAGE>
OPPENHEIMER GLOBAL GROWTH & TREASURY SECURITIES TRUST, SERIES 1
SUMMARY OF ESSENTIAL INFORMATION AS OF NOVEMBER 16, 1995
Sponsor: Nike Securities L.P.
Evaluator: FT Evaluators, L.P.
Trustee: The Chase Manhattan Bank (National Association)
<TABLE>
<CAPTION>
GENERAL INFORMATION
<S> <C>
Aggregate Maturity Value of Treasury Obligations in the Trust $9,779,000
Aggregate Number of Shares of Oppenheimer in the Trust 122,216
Number of Units 977,846
Fractional Undivided Interest in the Trust per Unit 1/977,846
Public Offering Price per Unit:
Aggregate Value of Securities in the Portfolio $9,926,436
Aggregate Value of Securities per Unit $10.1513
Sales Charge 5.820% (5.5% of Public Offering Price) $.5908
Public Offering Price per Unit $10.7421
Redemption Price and Sponsor's Repurchase Price per
Unit ($.5908 less than the Public Offering Price
per Unit) $10.1513
</TABLE>
Date Trust Established September 22, 1994
Mandatory Termination Date May 15, 2005
Evaluator's Annual Fee: $.0020 per $10 principal amount of Treasury
Obligations outstanding. Evaluations for purposes of sale, purchase or
redemption of Units are made as of the close of trading (4:00 p.m. Eastern
time) on the New York Stock Exchange on each day on which it is open.
Supervisory fee payable to an affiliate Maximum of $.0015 per Unit
of the Sponsor outstanding annually
Bookkeeping and administrative expenses payable Maximum of $.0010 per Unit
to the Sponsor outstanding annually
Trustee's Annual Fee: $.009 per Unit outstanding.
Record Date: As soon as practicable after Oppenheimer's ex-dividend date.
Distribution Date: As soon as practicable after Oppenheimer's distribution
date.
<PAGE>
THIS PAGE INTENTIONALLY LEFT BLANK.
<PAGE>
REPORT OF INDEPENDENT AUDITORS
The Unit Holders of Oppenheimer Global
Growth & Treasury Securities Trust, Series 1
We have audited the accompanying statement of assets and liabilities,
including the portfolio, of Oppenheimer Global Growth & Treasury Securities
Trust, Series 1 as of August 31, 1995, and the related statements of
operations and changes in net assets for the period from the Initial Date of
Deposit, September 22, 1994, to August 31, 1995. These financial statements
are the responsibility of the Trust's Sponsor. Our responsibility is to
express an opinion on these financial statements based on our audit.
We conducted our audit 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 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 August 31, 1995, by
correspondence with the Trustee. An audit also includes assessing the
accounting principles used and significant estimates made by the Sponsor, as
well as evaluating the overall financial statement presentation. We believe
that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Oppenheimer Global Growth &
Treasury Securities Trust, Series 1 at August 31, 1995, and the results of its
operations and changes in its net assets for the period from the Initial Date
of Deposit, September 22, 1994, to August 31, 1995, in conformity with
generally accepted accounting principles.
ERNST & YOUNG LLP
Chicago, Illinois
November 10, 1995
<PAGE>
OPPENHEIMER GLOBAL GROWTH & TREASURY SECURITIES TRUST, SERIES 1
STATEMENT OF ASSETS AND LIABILITIES
August 31, 1995
<TABLE>
<CAPTION>
ASSETS
<S> <C>
Securities, at market value (cost, including
accretion on the treasury obligations,
$9,137,546)(Note 1) $9,724,913
Cash 142
___________
9,725,055
</TABLE>
<TABLE>
<CAPTION>
LIABILITIES AND NET ASSETS
<S> <C> <C>
Accrued liabilities 6,245
___________
Net assets, applicable to 985,000 outstanding
units of fractional undivided interest:
Cost of Trust assets, including accretion
on the treasury obligations (Note 1) $9,137,546
Net unrealized appreciation (Note 2) 587,367
Distributable funds (deficit) (6,103)
___________
$9,718,810
===========
Net asset value per unit $9.8668
===========
</TABLE>
[FN]
See accompanying notes to financial statements.
<PAGE>
OPPENHEIMER GLOBAL GROWTH & TREASURY SECURITIES TRUST, SERIES 1
PORTFOLIO
August 31, 1995
<TABLE>
<CAPTION>
Maturity Market
value Name of Issuer and Title of Security (1) value
<C> <S> <C>
Zero Coupon U.S. Treasury bonds
$9,850,000 maturing May 15, 2005 $5,285,025
==========
</TABLE>
<TABLE>
<CAPTION>
Shares
<C> <S> <C>
123,125 Oppenheimer Global Fund 4,439,888
========== __________
Total investments $9,724,913
==========
</TABLE>
(1) The treasury obligations have been purchased at a discount from their
par value because there is no stated interest income thereon. Over the
life of the treasury obligations the value increases, so that upon
maturity the holders will receive 100% of the principal amount thereof.
[FN]
See accompanying notes to financial statements.
<PAGE>
OPPENHEIMER GLOBAL GROWTH & TREASURY SECURITIES TRUST, SERIES 1
STATEMENT OF OPERATIONS
Period from the Initial Date of Deposit,
September 22, 1994, to August 31, 1995
<TABLE>
<S> <C>
Interest income $239,515
Dividends:
Ordinary income 62,434
Capital gain 211,097
__________
Total investment income 513,046
Expenses:
Trustee's fees and related expenses (8,776)
Evaluator's fees (1,296)
Supervisory fees (1,044)
Administrative fees (726)
__________
Total expenses (11,842)
__________
Investment income - net 501,204
Net gain (loss) on investments:
Net realized gain (loss) -
Change in unrealized appreciation
or depreciation 587,367
__________
587,367
__________
Net increase (decrease) in net
assets resulting from operations $1,088,571
==========
</TABLE>
[FN]
See accompanying notes to financial statements.
<PAGE>
OPPENHEIMER GLOBAL GROWTH & TREASURY SECURITIES TRUST, SERIES 1
STATEMENT OF CHANGES IN NET ASSETS
Period from the Initial Date of Deposit,
September 22, 1994, to August 31, 1995
<TABLE>
<S> <C>
Net increase (decrease) in net assets
resulting from operations:
Investment income - net $501,204
Net realized gain (loss)
on investments -
Change in unrealized appreciation
or depreciation on investments 587,367
__________
1,088,571
Units issued (935,000) 8,440,156
Distributions to unit holders:
Investment income - net (267,792)
__________
Total increase (decrease) in net
assets 9,260,935
Net assets:
At the beginning of the period 457,875
__________
At the end of the period (including
distributable funds (deficit)
applicable to Trust units of $(6,103)) $9,718,810
==========
Trust units outstanding at the end
of the period 985,000
</TABLE>
[FN]
See accompanying notes to financial statements.
<PAGE>
OPPENHEIMER GLOBAL GROWTH & TREASURY SECURITIES TRUST, SERIES 1
NOTES TO FINANCIAL STATEMENTS
1. Significant accounting policies
Security valuation -
The treasury obligations are stated at values as determined by FT Evaluators
L.P., an affiliate of the Sponsor. The values are based on (1) current bid
prices for the securities obtained from dealers or brokers who customarily
deal in securities comparable to those held by the Trust, (2) current bid
prices for comparable securities, (3) appraisal or (4) any combination of the
above.
Shares of Oppenheimer Global Fund (Oppenheimer) are stated at Oppenheimer's
published net asset value as reported by the Evaluator. Net asset value is
determined by dividing the value of Oppenheimer's securities plus any cash and
other assets (including accrued interest and dividends receivable) less all
liabilities (including accrued expenses) by the number of shares outstanding,
adjusted to the nearest whole cent.
Investment income -
Dividends from the Oppenheimer shares are recorded on Oppenheimer's ex-
dividend date. Interest income consists of amortization of original issue
discount and market discount or premium on the treasury obligations. Such
amortization is included in the cost of the treasury obligations rather than
in distributable funds because it is not currently available for distribution
to unit holders.
Security cost -
Cost of the Trust's treasury obligations is based on the offering price of the
treasury obligations on the dates the treasury obligations were deposited in
the Trust, plus amortization of original issue discount and amortization of
market discount or premium. Cost of the Oppenheimer shares is based on the
net asset value of such shares on the dates the shares were deposited in the
Trust. The cost of securities sold is determined on the average cost method.
Sales of securities are recorded on the trade date.
Federal income taxes -
The Trust is not taxable for Federal income tax purposes. Each unit holder is
considered to be the owner of a pro rata portion of the Trust and,
accordingly, no provision has been made for Federal income taxes.
Expenses of the Trust -
The Trust pays a fee for Trustee services to United States Trust Company of
New York, which is based on $.009 per annum per unit outstanding based on the
largest aggregate number of units outstanding during the calendar year.
Effective September 1, 1995, The Chase Manhattan Bank (National Association)
will succeed United States Trust Company of New York as Trustee; the Trustee
fees will not be affected by the change. The Evaluator receives an annual fee
based on $0.002 per $10.00 principal amount of treasury obligations
outstanding. Additionally, the Trust pays recurring financial reporting
costs, an annual supervisory fee payable to an affiliate of the Sponsor and an
annual administrative fee payable to the Sponsor.
<PAGE>
2. Unrealized appreciation and depreciation
An analysis of net unrealized appreciation at August 31, 1995 follows:
<TABLE>
<CAPTION>
Treasury Oppenheimer
obligations shares Total
<S> <C> <C> <C>
Unrealized appreciation $536,923 50,444 587,367
Unrealized depreciation - - -
___________________________________
$536,923 50,444 587,367
===================================
</TABLE>
3. Other information
Cost to investors -
The cost to initial investors of units of the Trust was based on the aggregate
offering price of the treasury obligations and the net asset value of the
Oppenheimer shares on the date of an investor's purchase, plus a sales charge
of 5.5% of the public offering price which is equivalent to approximately
5.820% of the net amount invested.
Distributions to unit holders -
Distributions to unit holders are made as soon as practicable after
Oppenheimer's distribution date. During the period ended August 31, 1995, the
Trust made distributions totaling $.4463 as described below.
<PAGE>
Selected data per unit of the Trust outstanding
throughout the period -
<TABLE>
<CAPTION>
Period from the
Initial Date of Deposit
Sept. 22, 1994, to
Aug. 31, 1995
<S> <C>
Investment income - interest and dividends $.7097
Expenses (.0164)
_______
Investment income - net .6933
Distributions to unit holders:
Investment income - net (.4463)
Net gain (loss) on investments .4623
_______
Total increase (decrease) in net assets .7093
Net assets:
Beginning of the period 9.1575
_______
End of the period $9.8668
=======
</TABLE>
Investment income - interest and dividends, expenses and investment income -
net per unit have been calculated based on the weighted average number of
units outstanding during the period (772,892 units). Distributions to unit
holders of investment income - net per unit reflects the Trust's cash
distributions of approximately $.4463 per unit to 600,000 units on December
22, 1994. The net gain (loss) on investments per unit includes the effects of
changes arising from issuance of 935,000 additional units during the period at
net asset values which differed from the net asset value per unit of the
original 50,000 units ($9.1575 per unit) on September 22, 1994.
<PAGE>
OPPENHEIMER GLOBAL GROWTH & TREASURY SECURITIES TRUST, SERIES 1
PART ONE
Must be Accompanied by Part Two
___________________
P R O S P E C T U S
___________________
SPONSOR: Nike Securities L.P.
1001 Warrenville Road
Lisle, Illinois 60532
(800) 621-1675
TRUSTEE: The Chase Manhattan Bank
(National Association)
770 Broadway
New York, New York 10003
LEGAL COUNSEL Chapman and Cutler
TO SPONSOR: 111 West Monroe Street
Chicago, Illinois 60603
LEGAL COUNSEL Carter, Ledyard & Milburn
TO TRUSTEE: 2 Wall Street
New York, New York 10005
INDEPENDENT Ernst & Young, LLP
AUDITORS: Sears Tower
233 South Wacker Drive
Chicago, Illinois 60606
This Prospectus does not constitute an offer to sell, or a solicitation of an
offer to buy, securities in any jurisdiction to any person to whom it is not
lawful to make such offer in such jurisdiction.
This Prospectus does not contain all the information set forth in the
registration statement and exhibits relating thereto, which the Trust has
filed with the Securities and Exchange Commission, Washington, D.C., under the
Securities Act of 1933 and the Investment Company Act of 1940, and to which
reference is hereby made.
Oppenheimer Global Growth & Treasury Securities Trust
PROSPECTUS NOTE: THIS PART TWO PROSPECTUS MAY
Part Two ONLY BE USED WITH PART ONE
Dated December 29, 1995
The Trust. Oppenheimer Global Growth & Treasury Securities Trust
(the "Trust") is a unit investment trust consisting of a portfolio
of zero coupon U.S. Treasury bonds and shares of Oppenheimer Global
Fund (the "Fund"). The Fund is an open-end, diversified management
investment company, commonly known as a mutual fund.
The objective of the Trust is to protect Unit holders' capital
by investing a portion of the Trust's portfolio in zero coupon
U.S. Treasury bonds ("Treasury Obligations") and to provide for
potential capital appreciation by investing a portion of the Trust's
portfolio in shares of Oppenheimer Global Fund. Collectively the
Treasury Obligations and the Fund shares are referred to herein
as the "Securities." The Fund's investment objective is capital
appreciation. Current income is not an objective. In seeking its
objective, the Fund will invest a substantial portion of its invested
assets in securities of foreign issuers, "growth-type" companies,
cyclical industries and special situations which are considered
to have appreciation possibilities. The Fund's techniques may
be considered speculative investment methods and increase risks
and costs to the Fund. See "What is Oppenheimer Global Fund?-Risk
Factors." The Treasury Obligations evidence the right to receive
a fixed payment at a future date from the U.S. Government and
are backed by the full faith and credit of the U.S. Government.
The guarantee of the U.S. Government does not apply to the market
value of the Treasury Obligations or the Units of the Trust, whose
net asset value will fluctuate and, prior to maturity, may be
worth more or less than a purchaser's acquisition cost. This Trust
is intended to achieve its objective over the life of the Trust
and as such is best suited for those investors capable of holding
Units to maturity. There is, of course, no guarantee that the
objective of the Trust will be achieved. See "Portfolio."
The Trust has a mandatory termination date ("Mandatory Termination
Date" or "Trust Ending Date") of May 15, 2005.
Each Unit of the Trust represents an undivided fractional interest
in all the Securities deposited in the Trust. The Trust has been
organized so that purchasers of Units should receive, at the termination
of the Trust, an amount per Unit at least equal to $10.00 (which
is equal to the per Unit value upon maturity of the Treasury Obligations),
even if the Trust never paid a dividend and the value of the underlying
Fund shares were to decrease to zero, which the Sponsor considers
highly unlikely. This feature of the Trust provides Unit holders
who purchase Units at a price of $10.00 or less per Unit with
total principal protection, including any sales charges paid,
although they might forego any earnings on the amount invested.
To the extent that Units are purchased at a price less than $10.00
per Unit, this feature may also provide a potential for capital
appreciation. As a result of the volatile nature of the market
for zero coupon U.S. Treasury bonds, Units sold or redeemed prior
to maturity will fluctuate in price and the underlying Treasury
Obligations may be valued at a price greater or less than their
value as of the Initial Date of Deposit. UNIT HOLDERS DISPOSING
OF THEIR UNITS PRIOR TO THE MATURITY OF THE TRUST MAY RECEIVE
MORE OR LESS THAN $10.00 PER UNIT, DEPENDING ON MARKET CONDITIONS
ON THE DATE UNITS ARE SOLD OR REDEEMED.
BOTH PARTS OF THE PROSPECTUS SHOULD BE RETAINED FOR FUTURE REFERENCE.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION
NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES
COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS.
ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
Page 1
The Fund shares deposited in the Trust's portfolio have no fixed
maturity date and the net asset value of the shares will fluctuate.
The Portfolio, essential information based thereon and financial
statements, including a report of independent auditors relating
to the Trust offered hereby, are contained in Part One for the
Trust to which reference should be made for such information.
Public Offering Price. The Public Offering Price per Unit of the
Trust will be based upon a pro rata share of the bid prices of
the Treasury Obligations and the net asset value of the Fund shares
in the Trust plus or minus a pro rata share of cash, if any, in
the Capital and Income Accounts of the Trust plus a maximum sales
charge of 5.5% (equivalent to 5.82% of the net amount invested).
The minimum purchase is $1,000. The sales charge is reduced on
a graduated scale for sales involving at least 10,000 Units. See
"How is the Public Offering Price Determined?"
Income and Capital Gains Distributions. Distributions of net income,
if any, other than amortized discount, will be made at least annually.
Distributions of realized capital gains, if any, received by the
Trust, will be made whenever the Fund makes such a distribution.
Any distribution of income and/or capital gains will be net of
the expenses of the Trust. INCOME WITH RESPECT TO THE ACCRUAL
OF ORIGINAL ISSUE DISCOUNT ON THE TREASURY OBLIGATIONS WILL NOT
BE DISTRIBUTED CURRENTLY, ALTHOUGH UNIT HOLDERS WILL BE SUBJECT
TO FEDERAL INCOME TAX AT ORDINARY INCOME RATES AS IF A DISTRIBUTION
HAD OCCURRED. See "What is the Federal Tax Status of Unit Holders?"
Additionally, upon termination of the Trust, the Trustee will
distribute, upon surrender of Units for redemption, to each Unit
holder his or her pro rata share of the Trust's assets, less expenses,
in the manner set forth under "Rights of Unit Holders-How are
Income and Capital Distributed?"
Reinvestment. Each Unit holder will, unless he or she elects to
receive cash payments, have distributions of principal (including,
if elected by Unit holders, the proceeds received upon the maturity
of the Treasury Obligations in the Trust at termination) and income
earned by the Trust, automatically invested in shares of the Fund
(if Fund shares are registered in the Unit holder's state of residence)
in the name of the Unit holder. Such distributions (including,
if elected by Unit holders, the proceeds received upon the maturity
of the Treasury Obligations in the Trust at termination) will
be reinvested without a sales charge to the Unit Holder on each
applicable distribution date. See "Rights of Unit Holders-How
Can Distributions to Unit Holders be Reinvested?"
Market for Units. While under no obligation to do so, the Sponsor
intends to maintain a market for Units of the Trust and offer
to resell such Units at prices which are based on the aggregate
bid side evaluation of the Treasury Obligations and the aggregate
net asset value of the Fund shares in the Trust plus or minus
a pro rata share of cash, if any, in the Capital and Income Accounts
of the Trust plus a maximum sales charge of 5.5% (equivalent to
5.82% of the net amount invested). In the absence of such a market,
a Unit holder may redeem Units through redemption at prices based
upon the aggregate bid price of the Treasury Obligations plus
the aggregate net asset value of the Fund shares in the Trust
plus or minus a pro rata share of cash, if any, in the Capital
and Income Accounts of the Trust. See "Rights of Unit Holders-How
May Units be Redeemed?"
Risk Factors. An investment in the Trust should be made with an
understanding of the risks associated therewith, including, among
other factors, the possible deterioration of either the Securities
which make up the Trust or the general condition of the stock
market, volatile interest rates, economic recession, currency
exchange fluctuations, foreign withholding, and differences between
domestic and foreign legal, auditing, brokerage and economic standards.
The Trust is not actively managed and Securities will not be sold
by the Trust to take advantage of market fluctuations or changes
in anticipated rates of appreciation. See "What are the Fund's
Investment Policies?-Risk Factors."
Page 2
Oppenheimer Global Growth & Treasury Securities Trust
What is Oppenheimer Global Growth & Treasury Securities Trust?
The Oppenheimer Global Growth & Treasury Securities Trust is one
of a series of investment companies created by the Sponsor under
the name of Oppenheimer Global Growth & Treasury Securities Trust,
all of which are generally similar but each of which is separate
and is designated by a different series number (the "Trust").
This series was created under the laws of the State of New York
pursuant to a Trust Agreement (the "Indenture"), dated the Initial
Date of Deposit, with Nike Securities L.P., as Sponsor, The Chase
Manhattan Bank (National Association), as Trustee, and First Trust
Advisors L.P., as Portfolio Supervisor and FT Evaluators L.P. as Evaluator.
The objective of the Trust is to protect Unit holders' capital
by investing a portion of the Trust's portfolio in zero coupon
U.S. Treasury bonds ("Treasury Obligations") and to provide for
potential capital appreciation by investing a portion of the Trust's
portfolio in shares of Oppenheimer Global Fund (the "Fund"). The
Fund is a mutual fund with the investment objective of capital
appreciation. Current income is not an objective. In seeking its
objective, the Fund will invest a substantial portion of its invested
assets in securities of foreign issuers, "growth-type" companies,
cyclical industries and special situations which are considered
to have appreciation possibilities. The Fund's techniques may
be considered speculative investment methods and increase risks
and costs to the Fund. See "What is Oppenheimer Global Fund?-Risk
Factors." In the Sponsor's opinion, the trend toward integration
and interdependence of certain of the world's economies as well
as the emergence of newly industrialized countries, with higher
standards of living and increasing consumer demands has translated
into more foreign investment opportunities. Foreign markets are
assuming a dominant role in the world economy. Over the past twenty
years, the major percentage of the world stock market capitalization
has shifted dramatically from the United States to foreign markets,
which now account for approximately 66% of the world's equities.
Oppenheimer Funds international experts have identified nine significant
global trends which they currently believe offer the most promising
areas for long-term growth: Specialized Communications, Emerging
Consumer Markets, Infrastructure Worldwide, Capital Market Development,
Healthcare/Biotechnology, Energy Logistics, Corporate Restructuring,
Efficiency-Enhancing Technologies, and Environment. The Treasury
Obligations evidence the right to receive a fixed payment at a
future date from the U.S. Government and are backed by the full
faith and credit of the U.S. Government. The guarantee of the
U.S. Government does not apply to the market value of the Treasury
Obligations or the Units of the Trust, whose net asset value will
fluctuate and, prior to maturity, may be more or less than a Unit
holder's acquisition cost. Collectively, the Treasury Obligations
and Fund shares in the Trust are referred to herein as the "Securities."
There is, of course, no guarantee that the objective of the Trust
will be achieved. The Trust has been organized so that purchasers
of Units should receive, at the termination of the Trust, an amount
per Unit at least equal to $10.00 per Unit (which is equal to
the per Unit value upon maturity of the Treasury Obligations),
even if the Fund shares never paid a dividend and the value of
the Fund shares in the Trust were to decrease to zero, which the
Sponsor considers highly unlikely. To the extent that Units of
the Trust are redeemed, the aggregate value of the Securities
in the Trust will be reduced and the undivided fractional interest
represented by each outstanding Unit of the Trust will increase.
See "How May Units be Redeemed?" The Trust has a Mandatory Termination
Date as set forth in Part One of the Prospectus.
What are the Expenses and Charges?
At no cost to the Trust, the Sponsor has borne all the expenses
of creating and establishing the Trust, including the cost of
the initial preparation, printing and execution of the Indenture
for the Units, legal and accounting expenses, expenses of the
Trustee and other out-of-pocket expenses. With the exception of
bookkeeping and other administrative services provided to the
Trust, for which the Sponsor will be reimbursed in amounts as
set forth in Part One, the Sponsor will not receive any fees in
connection with its activities relating to the Trust. Such bookkeeping
and administrative charges may be increased without approval
Page 3
of the Unit holders by amounts not exceeding proportionate increases
under the category "All Services Less Rent of Shelter" in the
Consumer Price Index published by the United States Department
of Labor. The fees payable to the Sponsor for such services may
exceed the actual costs of providing such services for the Fund,
but at no time will the total amount received for such services
rendered to unit investment trusts of which Nike Securities L.P.
is the Sponsor in any calendar year exceed the actual cost to
the Sponsor of supplying such services in such year. First Trust
Advisors L.P., an affiliate of the Sponsor, will receive an annual
supervisory fee, which is not to exceed the amount set forth in
Part One for providing portfolio supervisory services for the
Trust. Such fee is based on the number of Units outstanding in
the Trust on January 1 of each year except during the year or
years in which an initial offering period occurs in which case
the fee for a month is based on the number of Units outstanding
at the end of such month. The fee may exceed the actual costs
of providing such supervisory services for the Trust, but at no
time will the total amount received for portfolio supervisory
services rendered to unit investment trusts of which Nike Securities
L.P. is the Sponsor in any calendar year exceed the aggregate
cost of First Trust Advisors L.P. of supplying such services in such year.
The Evaluator will receive a fee as indicated in Part One. No
fee is paid to the Evaluator with respect to the Fund shares in
the Trust. The Trustee pays certain expenses of the Trust for
which it is reimbursed by the Trust. The Trustee will receive
for its ordinary recurring services to the Trust and for all normal
expenses of the Trustee incurred by or in connection with its
responsibilities under the Indenture, an annual fee as set forth
in Part One per annum per Unit in the Trust outstanding based
upon the number of Units outstanding in the Trust on January 1
of each year except during the year or years in which an initial
offering period occurs in which case the fee for a month is based
on the number of Units outstanding at the end of such month. For
a discussion of the services performed by the Trustee pursuant
to its obligations under the Indenture, reference is made to the
material set forth under "Rights of Unit Holders." Rule 12b-1
fees imposed on shares of the Fund held in the Trust, are rebated
to the Trust, deposited in the Income Account and are used to
pay expenses of the Trust.
The Trustee's and Evaluator's fees are payable from the Income
Account of the Trust to the extent funds are available and then
from the Capital Account of the Trust. Since the Trustee has the
use of the funds being held in the Capital and Income Accounts
for payment of expenses and redemptions and since such Accounts
are non-interest bearing to Unit holders, the Trustee benefits
thereby. Part of the Trustee's compensation for its services to
the Trust is expected to result from the use of these funds. Both
fees may be increased without approval of the Unit holders by
amounts not exceeding proportionate increases under the category
"All Services Less Rent of Shelter" in the Consumer Price Index
published by the United States Department of Labor.
The following additional charges are or may be incurred by the
Trust: all legal and annual auditing expenses of the Trustee incurred
by or in connection with its responsibilities under the Indenture;
the expenses and costs of any action undertaken by the Trustee
to protect the Trust and the rights and interests of the Unit
holders; fees of the Trustee for any extraordinary services performed
under the Indenture; indemnification of the Trustee for any loss,
liability or expense incurred by it without negligence, bad faith
or willful misconduct on its part, arising out of or in connection
with its acceptance or administration of the Trust; indemnification
of the Sponsor for any loss, liability or expense incurred without
gross negligence, bad faith or willful misconduct in acting as
depositor of the Trust; all taxes and other government charges
imposed upon the Securities or any part of the Trust (no such
taxes or charges are being levied or made or, to the knowledge
of the Sponsor, contemplated). The above expenses and the Trustee's
annual fee, when paid or owing to the Trustee, are secured by
a lien on the Trust. In addition, the Trustee is empowered to
sell Securities in the Trust in order to make funds available
to pay all these amounts if funds are not otherwise available
in the Income and Capital Accounts of the Trust except that the
Trustee shall not sell Treasury Obligations to pay Trust expenses.
Since the Fund shares consist primarily of common stock and the
income stream produced by dividends is unpredictable, the Sponsor
cannot provide any assurance that dividends will be sufficient
to meet any or all expenses of the Trust. As discussed above,
if dividends are insufficient
Page 4
to cover expenses, it is likely that Fund shares will have to
be sold to meet Trust expenses. These sales may result in capital
gains or losses to Unit holders. See "What is the Federal Tax
Status of Unit Holders?"
The Indenture requires the Trust to be audited on an annual basis
at the expense of the Trust by independent auditors selected by
the Sponsor. So long as the Sponsor is making a secondary market
for the Units, the Sponsor is required to bear the cost of such
annual audits to the extent such cost exceeds $0.005 per Unit.
Unit holders of the Trust covered by an audit may obtain a copy
of the audited financial statements upon request.
What is the Federal Tax Status of Unit Holders?
The following is a general discussion of certain of the Federal
income tax consequences of the purchase, ownership and disposition
of the Units. The summary is limited to investors who hold the
Units as "capital assets" (generally, property held for investment)
within the meaning of Section 1221 of the Internal Revenue Code
of 1986, as amended (the "Code"). Unit holders should consult
their tax advisers in determining the Federal, state, local and
any other tax consequences of the purchase, ownership and disposition
of Units in the Trust.
In the opinion of Chapman and Cutler, counsel for the Sponsor,
under existing law:
1. The Trust is not an association taxable as a corporation for
Federal income tax purposes; each Unit holder will be treated
as the owner of a pro rata portion of each of the assets of the
Trust under the Code; the income of the Trust will be treated
as income of the Unit holders thereof under the Code; and each
Unit holder will be considered to have received his or her pro
rata share of income derived from each Trust asset when such income
is received by the Trust.
2. Each Unit holder will have a taxable event when the Trust
disposes of a Security (whether by sale, exchange, liquidation,
redemption, or payment at maturity) or upon the sale or redemption
of Units by such Unit holder. The price a Unit holder pays for
his or her Units is allocated among his or her pro rata portion
of each Security held by the Trust (in proportion to the fair
market values thereof on the date the Unit holder purchases his
or her Units) in order to determine his or her tax basis for his
or her pro rata portion of each Security held by the Trust. The
Treasury Obligations held by the Trust are treated as stripped
bonds and may be treated as bonds issued at an original issue
discount as of the date a Unit holder purchases his or her Units.
Because the Treasury Obligations represent interests in "stripped"
U.S. Treasury bonds, a Unit holder's initial cost for his or her
pro rata portion of each Treasury Obligation held by the Trust
shall be treated as its "purchase price" by the Unit holder. Original
issue discount is effectively treated as interest for Federal
income tax purposes and the amount of original issue discount
in this case is generally the difference between the bond's purchase
price and its stated redemption price at maturity. A Unit holder
will be required to include in gross income for each taxable year
the sum of his or her daily portions of original issue discount
attributable to the Treasury Obligations held by the Trust as
such original issue discount accrues and will in general be subject
to Federal income tax with respect to the total amount of such
original issue discount that accrues for such year even though
the income is not distributed to the Unit holders during such
year to the extent it is not less than a "de minimis" amount as
determined under a Treasury Regulation issued on December 28,
1992 relating to stripped bonds. To the extent the amount of such
discount is less than the respective "de minimis" amount, such
discount shall be treated as zero. In general, original issue
discount accrues daily under a constant interest rate method which
takes into account the semi-annual compounding of accrued interest.
In the case of the Treasury Obligations, this method will generally
result in an increasing amount of income to the Unit holders each
year. Unit holders should consult their tax advisers regarding
the Federal income tax consequences and accretion of original
issue discount under the stripped bond rules. For Federal income
tax purposes, a Unit holder's pro rata portion of dividends as
defined by Section 316 of the Code paid with respect to a Fund
share held by the Trust are taxable as ordinary income to the
extent of such Fund's current and accumulated "earnings and profits."
A Unit holder's pro rata portion of dividends
Page 5
paid on such Fund share which exceed such current and accumulated
earnings and profits will first reduce a Unit holder's tax basis
in such Fund share, and to the extent that such dividends exceed
a Unit holder's tax basis in such Fund share shall generally be
treated as capital gain. In general, any such capital gain will
be short term unless a Unit holder has held his Units for more
than one year.
3. A Unit holder's portion of gain, if any, upon the sale or
redemption of Units or the disposition of Securities held by the
Trust will generally be considered a capital gain except in the
case of a dealer or a financial institution and, in general, will
be long-term if the Unit holder has held his or her Units for
more than one year. A Unit holder's portion of loss, if any, upon
the sale or redemption of Units or the disposition of Securities
held by the Trust will generally be considered a capital loss
(except in the case of a dealer) and, in general, will be long-term
if the Unit holder has held his or her Units for more than one
year. Unit holders should consult their tax advisers regarding
the recognition of such capital gains and losses for Federal income
tax purposes.
Because Unit holders are deemed to directly own a pro rata portion
of the Fund shares as discussed above, Unit holders are advised
to read the discussion of tax consequences for the Fund set forth
under "Who is the Management of Oppenheimer Global Fund?-Tax Status
of the Fund." Distributions declared by the Fund on the Fund shares
in October, November or December that are held by the Trust and
paid during the following January will be treated as having been
received by Unit holders on December 31 in the year such distributions
were declared. Long-term capital gains distributions on the Fund
shares are taxable to the Unit holders as long-term capital gains
regardless of how long a person has been a Unit holder. If a Unit
holder holds his or her Units for six months or less or if the
Trust holds shares of the Fund for six months or less, any loss
incurred by a Unit holder related to the disposition of the Fund
shares will be treated as a long-term capital loss to the extent
of any long-term capital gains distributions received (or deemed
to have been received) with respect to such shares. For taxpayers
other than corporations, net capital gains are subject to a maximum
marginal tax rate of 28 percent. However, it should be noted that
legislative proposals are introduced from time to time that affect
relative differences at which ordinary income and capital gains are taxed.
The Revenue Reconciliation Act of 1993 (the "Tax Act") raised
tax rates on ordinary income while capital gains remain subject
to a 28% maximum stated rate. Because some or all capital gains
are taxed at a comparatively lower rate under the Tax Act, the
Tax Act includes a provision that recharacterizes capital gains
as ordinary income in the case of certain financial transactions
that are "conversion transactions" effective for transactions
entered into after April 30, 1993. Unit holders and prospective
investors should consult with their tax advisers regarding the
potential effect of this provision on their investment in Units.
Special Tax Consequences of In-Kind Distributions Upon Termination
of the Trust. As discussed in "Rights of Unit Holders-How are
Income and Capital Distributed?," under certain circumstances
a Unit Holder will receive an In-Kind Distribution upon the termination
of the Trust. The Unit Holder requesting an In-Kind Distribution
will be liable for expenses related thereto (the "Distribution
Expenses") and the amount of such In-Kind Distribution will be
reduced by the amount of the Distribution Expenses. See "Rights
of Unit Holder-How are Income and Capital Distributed?" Treasury
Obligations held by the Trust will not be distributed to a Unit
holder as part of an In-Kind Distribution. The tax consequences
relating to the sale of Treasury Obligations are discussed above.
As previously discussed, prior to the termination of the Trust,
a Unit holder is considered as owning a pro rata portion of each
of the Trust assets for Federal income tax purposes. The receipt
of an In-Kind Distribution upon the termination of the Trust would
be deemed an exchange of such Unit holder's pro rata portion of
each of the shares of stock (including the Fund shares) and other
assets held by the Trust in exchange for an undivided interest
in whole shares of the Fund plus, possibly, cash.
There are generally three different potential tax consequences
which may occur under an In-Kind Distribution with respect to
each Security owned by the Trust. A "Security" for this purpose
is a particular class of stock issued by a particular corporation
(and does not include the Treasury Obligations in the Trust). If
Page 6
the Unit holder receives only whole shares of the Fund in exchange
for his or her pro rata portion in each share of the Fund held
by the Trust, there is no taxable gain or loss recognized upon
such deemed exchange pursuant to Section 1036 of the Code. If
the Unit holder receives whole shares of the Fund plus cash in
lieu of a fractional share of the Fund, and if the fair market
value of the Unit holder's pro rata portion of the shares of the
Fund exceeds his tax basis in his pro rata portion of the Fund,
taxable gain would be recognized in an amount not to exceed the
amount of such cash received, pursuant to Section 1031(b) of the
Code. No taxable loss would be recognized upon such an exchange
pursuant to Section 1031(c) of the Code, whether or not cash is
received in lieu of a fractional share. Under either of these
circumstances, special rules will be applied under Section 1031(d)
of the Code to determine the Unit holder's tax basis in the shares
of the Fund which he receives as part of the In-Kind Distribution.
Finally, if a Unit holder's pro rata interest in the Fund does
not equal a whole share, he may receive entirely cash in exchange
for his pro rata portion of the Fund. In such case, taxable gain
or loss is measured by comparing the amount of cash received by
the Unit holder with his tax basis in the Fund share.
A Unit holder who requests an In-Kind Distribution has to analyze
the tax consequences with respect to each Security owned by the
Trust. In analyzing the tax consequences with respect to each
Security, such Unit holder must allocate the Distribution Expenses
among the Securities (the "Allocable Expenses"). The Allocable
Expenses will reduce the amount realized with respect to each
Security so that the fair market value of the shares of such Security
received (if any) and cash received in lieu thereof (as a result
of any fractional shares) by such Unit holder should equal the
amount realized for purposes of determining the applicable tax
consequences in connection with an In-Kind Distribution. A Unit
holder's tax basis in shares of such Security received will be
increased by the Allocable Expenses relating to such Security.
The amount of taxable gain (or loss) recognized upon such exchange
will generally equal the sum of the gain (or loss) recognized
under the rules described above by such Unit holder with respect
to each Security owned by the Trust. Unit holders who request
an In-Kind Distribution are advised to consult their tax advisers
in this regard.
The Fund may elect to pass through to its shareholders the foreign
income and similar taxes paid by the Fund in order to enable such
shareholders to take a credit (or deduction) for foreign income
taxes paid by the Fund. If such an election is made, Unit holders
of the Trust, because they are deemed to own a pro rata portion
of the Fund shares held by the Trust, as described above, must
include in their gross income, for Federal income tax purposes,
both their portion of dividends received by the Trust from the
Fund, and also their portion of the amount which the Fund deems
to be the Trust's portion of foreign income taxes paid with respect
to, or withheld from, dividends, interest or other income of the
Fund from its foreign investments. Unit holders may then subtract
from their Federal income tax the amount of such taxes withheld,
or else treat such foreign taxes as deductions from gross income;
however, as in the case of investors receiving income directly
from foreign sources, the above described tax credit or deduction
is subject to certain limitations. Unit holders should consult
their tax advisers regarding this election and its consequences to them.
General. Each Unit holder will be requested to provide its taxpayer
identification number to the Trustee and to certify that the Unit
holder has not been notified that payments to the Unit holder
are subject to back-up withholding. If the proper taxpayer identification
number and appropriate certification are not provided when requested,
distributions by the Trust to such Unit holder (including amounts
received upon the redemption of Units) will be subject to back-up
withholding. Distributions by the Trust will generally be subject
to United States income taxation and withholding in the case of
Units held by non-resident alien individuals, foreign corporations
or other non-United States persons (accrual of original issue
discount on the Treasury Obligations may not be subject to Federal
taxation or withholding provided certain requirements are met).
Such persons should consult their tax advisers.
Unit holders will be notified annually of the amounts of original
issue discount, income and long-term capital gains distributions
includable in the Unit holder's gross income and the amount of
Trust expenses which may be claimed as itemized deductions.
Page 7
Distributions of income, long-term capital gains and accrual of
original issue discount may also be subject to state and local
taxes. Foreign investors may be subject to different Federal income
tax consequences than those described above. Investors should
consult their tax advisers for specific information on the tax
consequences of particular types of distributions.
Unit holders desiring to purchase Units for tax-deferred plans
and IRAs should consult their broker for details on establishing
such accounts. Units may also be purchased by persons who already
have self-directed plans established. See "Why are Investments
in the Trust Suitable for Retirement Plans?"
In the opinion of Carter, Ledyard & Milburn, Special Counsel to
the Trust for New York tax matters, under the existing income
tax laws of the State of New York, the Trust is not an association
taxable as a corporation and the income of the Trust will be treated
as the income of the Unit holders thereof.
Why are Investments in the Trust Suitable for Retirement Plans?
Units of the Trust may be well suited for purchase by Individual
Retirement Accounts, pension funds and other tax-deferred retirement
plans. Generally, the Federal income tax relating to capital gains
and income received in each of the foregoing plans is deferred
until distributions are received. Distributions from such plans
are generally treated as ordinary income but may, in some cases,
be eligible for special averaging or tax-deferred rollover treatment.
Investors considering participation in any such plan should review
specific tax laws related thereto and should consult their attorneys
or tax advisers with respect to the establishment and maintenance
of any such plan. Such plans are offered by brokerage firms and
other financial institutions. Fees and charges with respect to
such plans may vary.
PORTFOLIO
What are Treasury Obligations?
The Treasury Obligations deposited in the Trust consist of U.S.
Treasury bonds which have been stripped of their unmatured interest
coupons. The Treasury Obligations evidence the right to receive
a fixed payment at a future date from the U.S. Government, and
are backed by the full faith and credit of the U.S. Government.
Treasury Obligations are purchased at a deep discount because
the buyer obtains only the right to a fixed payment at a fixed
date in the future and does not receive any periodic interest
payments. The effect of owning deep discount bonds which do not
make current interest payments (such as the Treasury Obligations)
is that a fixed yield is earned not only on the original investment
but also, in effect, on all earnings during the life of the discount
obligation. This implicit reinvestment of earnings at the same
rate eliminates the risk of being unable to reinvest the income
on such obligations at a rate as high as the implicit yield on
the discount obligation, but at the same time eliminates the holder's
ability to reinvest at higher rates in the future. For this reason,
the Treasury Obligations are subject to substantially greater
price fluctuations during periods of changing interest rates than
are securities of comparable quality which make regular interest
payments. The effect of being able to acquire the Treasury Obligations
at a lower price is to permit more of the Trust's portfolio to
be invested in shares of the Fund.
What is Oppenheimer Global Fund?
The portfolio of the Trust also contains shares of Oppenheimer
Global Fund.
Oppenheimer Global Fund (the "Fund") is a mutual fund with the
investment objective of capital appreciation. Current income is
not an objective. In seeking its objective, the Fund will invest
a substantial portion of its invested assets in securities of
foreign issuers, "growth-type" companies, cyclical industries
and special situations which are considered to have appreciation
possibilities. THE FUND'S TECHNIQUES MAY BE CONSIDERED SPECULATIVE
INVESTMENT METHODS AND INCREASE RISKS AND COSTS TO THE FUND. See
"Special Investment Methods."
The Fund offers two classes of shares ("Class A" and "Class B")
which may be purchased at a price equal to their respective net
asset value per share, plus a sales charge. The Trust has purchased
Class A shares for deposit in the Trust and any reference to Fund
shares in this prospectus shall refer to Class A shares.
This Prospectus sets forth concisely information about the Fund
that a prospective investor should know before investing. A Statement
of Additional Information about the Fund (the "Additional Statement")
Page 8
has been filed with the Securities and Exchange Commission ("SEC")
and is available without charge upon written request to Oppenheimer
Shareholder Services (the "Transfer Agent"), P.O. Box 5270, Denver,
Colorado 80217, or by calling the Transfer Agent at 1-800-525-7048.
The Additional Statement (which is incorporated in its entirety
by reference in the Fund's Prospectus) contains more detailed
information about the Fund and its management, including more
complete information as to certain risk factors.
Fund Expenses
The following table sets forth the fees that an investor in the
Fund might pay and the expenses paid by the Fund during its fiscal
year ended September 30, 1994.
<TABLE>
<CAPTION>
Shareholder Transaction Expenses
Class A
Shares
_______
<S> <C>
Maximum Sales Charge on Purchases (as a percentage
of offering price) { 5.75%
Sales Charge on Reinvested Dividends None
Maximum Contingent Deferred Sales Charge on Redemptions None
Redemption Fees None
Exchange Fee None
</TABLE>
<TABLE>
<CAPTION>
Annual Fund Operating Expenses
(as a percentage of average net assets)
Class A
Shares
_______
<S> <C>
Management Fees 0.73%
12b-1 (Distribution and/or Service Plan) Fees {{ 0.18%
Other Expenses 0.31%
_____
Total Fund Operating Expenses* 1.22%
</TABLE>
[FN]
__________________
{ There is no sales load payable upon the purchase of the Fund
shares deposited in the Trust. However, the maximum sales charge
on the Units, and therefore indirectly on the Fund shares is 5.5%
during the initial offering period and 5.5% in the secondary market.
{{ Effectively, there are no 12b-1 fees on Fund shares held in
the Trust. However, Unit holders who acquire shares of the Fund
through reinvestment of dividends or other distributions or through
reinvestment at the Trust's termination will begin to incur 12b-1
fees at such time as shares are acquired.
* Annual Fund Operating Expenses are less annual 12b-1 fees rebated
to the Sponsor of 0.25% on Fund shares deposited in the Trust.
See "Summary of Essential Information" for a description of estimated
fees and expenses charged per Unit.
The purpose of this table is to assist an investor in understanding
the various costs and expenses that an investor in shares of the
Fund will bear directly (Shareholder Transaction Expenses) or
indirectly (Annual Fund Operating Expenses). The sales charge
rate shown for Class A shares is the current maximum rate applicable
to purchases of Class A shares of the Fund. "Total Fund Operating
Expenses," similarly restated, would be 1.27% for Class A shares.
For further details, see "Purchase, Redemption and Pricing of
Shares-Dual Class Methodology" and the Fund's financial statements,
both included in the Additional Statement.
The following examples apply the above-stated expenses and the
current maximum sales charge to a hypothetical $1,000 investment
in shares of the Fund over the time period shown below, assuming
a 5% annual rate of return on the investment. The amounts shown
below are the cumulative costs of such hypothetical $1,000 investment
for the periods shown and, except as indicated in line 2, assumes
that the shares are redeemed at the end of each stated period.
Page 9
<TABLE>
<CAPTION>
1 year 3 years 5 years 10 years
______ _______ _______ ________
<S> <C> <C> <C> <C>
1. Class A Shares $69 $94 $121 $197
2. Class A Shares, assuming no redemption $69 $94 $121 $197
</TABLE>
These examples should not be considered a representation of past
or future expenses or performance. Expenses are subject to change
and actual performance and expenses may be less or greater than
those illustrated above.
THE RULE 12B-1 FEES IMPOSED ON SHARES HELD IN THE TRUST ARE REBATED
TO THE TRUST AND ARE USED TO REDUCE EXPENSES OF THE TRUST RESULTING
IN INCREASED DISTRIBUTIONS TO UNIT HOLDERS. UNIT HOLDERS WHO ACQUIRE
SHARES OF SPECIAL SITUATIONS THROUGH REINVESTMENT OF DIVIDENDS
OR OTHER DISTRIBUTIONS OR THROUGH REINVESTMENT AT THE TRUST'S
TERMINATION WILL BEGIN TO INCUR RULE 12B-1 FEES AT SUCH TIME AS
SHARES ARE ACQUIRED.
Page 10
Financial Highlights
Selected data for a Class A share of the Fund outstanding throughout
each period
The information in the table below has been derived from financial
statements which are covered by another certified public accountant's
report appearing in the Additional Statement.
<TABLE>
<CAPTION>
Class A
Year Ended September 30,
1994 1993 1992 1991 1990 1989
Per Share Operating Data:
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 35.04 $ 30.03 $ 32.05 $ 27.63 $ 30.43 $ 22.94
__________ __________ __________ __________ _________ _________
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .17 0.26 0.17 0.05 0.02 0.20
Net realized and unrealized gain (loss) on
investments and translation of assets
and liabilities in foreign currencies 6.10 4.99 (1.50) 6.14 0.29 9.11
__________ __________ __________ __________ _________ _________
Total income (loss)
from investment operations 6.27 5.25 (1.33) 6.19 0.31 9.31
__________ __________ __________ __________ _________ _________
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.25) (0.12) (0.11) (0.08) (0.11) (0.09)
Distributions from net realized gains
on investments (3.37) (0.12) (0.58) (1.69) (3.00) (1.73)
__________ __________ __________ __________ _________ _________
Total dividends and distributions
to shareholders (3.62) (0.24) (0.69) (1.77) (3.11) (1.82)
__________ __________ __________ __________ _________ _________
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 37.69 $ 35.04 $ 30.03 $ 32.05 $ 27.63 $ 30.43
========== ========== ========== ========== ========= =========
- ------------------------------------------------------------------------------------------------------------------------------------
Total return, at Net Asset Value* 19.19% 17.67% (4.23)% 23.71% 0.79% 42.87%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data:
Net assets, end of period (in thousands) $ 1,921 $1,388,773 $1,214,615 $1,076,336 $ 719,893 $ 522,866
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 1,711 $1,213,098 $1,193,870 $ 898,592 $ 672,246 445,819
- ------------------------------------------------------------------------------------------------------------------------------------
Number of shares outstanding at
end of period (in thousands) 50,955 39,632 40,441 33,585 26,056 17,183
Amount of debt outstanding at
end of period (in thousands) N/A $ - $ 60,000 $ 60,000 $ 60,000 $ 30,000
Average amount of debt outstanding
throughout each period
(in thousands){ N/A $ 18,247 $ 60,000 $ 60,000 $ 42,877 $ 30,000
Average number of shares outstanding
throughout each period
(in thousands){{ N/A 39,853 37,435 30,607 21,982 16,968
Average amount of debt per share
outstanding throughout each period N/A $ 0.46 $ 1.60 $ 1.96 $ 1.95 $ 1.77
Ratios to average net assets:
Net investment income .38% 0.84% 0.55% 0.22% 0.16% 0.73%
Expenses 1.15% 1.18% 1.36% 1.65% 1.68% 1.90%
Portfolio turnover rate** 78.30% 86.9% 18.0% 19.9% 27.2% 62.6%
</TABLE>
<TABLE>
<CAPTION>
Class A
Year Ended September 30,
1988 1987 1986 1985
Per Share Operating Data:
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 38.29 $ 28.88 $ 17.36 $ 16.47
__________ __________ __________ __________
Income (loss) from investment operations:
Net investment income 0.04 0.05 0.12 0.14
Net realized and unrealized gain
(loss) on investments and
translation of assets and
liabilities in foreign currencies (9.70) 13.28 11.56 1.71
__________ __________ __________ __________
Total income (loss)
from investment operations (9.66) 13.33 11.68 1.85
__________ __________ __________ __________
Dividends and distributions to shareholders:
Dividends from net investment income (0.07) (0.11) (0.10) (0.04)
Distributions from net realized gains
on investments (5.62) (3.81) (0.06) (0.92)
__________ __________ __________ __________
Total dividends and distributions
to shareholders (5.69) (3.92) (0.16) (0.96)
__________ __________ __________ __________
Net asset value, end of period $ 22.94 $ 38.29 $ 28.88 $ 17.36
========== ========== ========== ==========
Total return, at Net Asset Value* (25.17)% 52.65% 67.63% 12.00%
Ratios/Supplemental Data:
Net assets, end of period (in thousands) $ 371,438 $ 601,417 $ 372,243 $ 231,645
Average net assets (in thousands) $ 398,220 $ 473,418 $ 330,827 $ 225,843
Number of shares outstanding at
end of period (in thousands) 16,191 15,708 12,891 13,347
Amount of debt outstanding at
end of period (in thousands) $ 30,000 $ 35,000 $ 22,000 $ 14,000
Average amount of debt outstanding
throughout each period
(in thousands){ $ 31,052 $ 26,290 $ 19,058 $ 3,877
Average number of shares outstanding
throughout each period
(in thousands){{ 17,173 15,099 13,205 14,476
Average amount of debt per share
outstanding throughout each period $ 1.81 $ 1.74 $ 1.44 $ 0.27
Ratios to average net assets:
Net investment income 0.15% 0.16% 0.47% 0.81%
Expenses 1.89% 1.49% 1.60% 1.21%
Portfolio turnover rate** 25.2% 37.0% 25.2% 29.0%
</TABLE>
[FN]
* Assumes a hypothetical initial investment on the business day
before the first day of the fiscal period, 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.
** 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.
{ Based upon daily outstanding borrowings.
{{ Based upon month-end balances.
Page 11
What are the Fund's Investment Policies?
The Fund is an open-end, diversified management investment company
presently organized as a Massachusetts business trust. It was
initially organized as a Maryland corporation in 1969. In seeking
its objective of capital appreciation, the Fund emphasizes investment
in foreign and domestic securities considered by the Fund's investment
manager, Oppenheimer Management Corporation (the "Manager"), to
have appreciation possibilities, primarily common stocks or securities
having investment characteristics of common stocks (such as convertible
securities) of "growth-type" companies. As a matter of fundamental
policy, under normal market conditions, the Fund will invest its
total assets in securities of issuers traded in markets in at
least three different countries (which may include the United
States). The portfolio may also emphasize securities of cyclical
industries and "special situations" when the Manager believes
that they present opportunities for capital growth. The remainder
of the Fund's invested assets will be invested in securities for
liquidity purposes. The Fund's investment policies and practices
are not "fundamental" policies (as defined below) unless a particular
policy is identified as fundamental. The Board of Trustees of
the Fund (the "Board") may change non-fundamental policies without
shareholder approval.
The Fund currently emphasizes investment in "foreign securities"
(as defined below), because the Manager believes that certain
foreign securities may present investment opportunities. In the
Manager's opinion, investments in foreign securities offer potential
benefits not available from investing solely in securities of
domestic issuers, such as the opportunity to invest in foreign
issuers that appear to offer growth potential, or to invest in
foreign countries with economic policies or business cycles different
from those of the U.S. or foreign stock markets that do not move
in a manner parallel to U.S. markets, thereby reducing fluctuations
in portfolio value. "Foreign securities" include securities issued
by companies organized under the laws of countries other than
the United States that are traded on foreign securities exchanges
or foreign over-the-counter markets. Securities of foreign issuers
(i) represented by American Depository Receipts, (ii) traded in
the U.S. over-the-counter markets or (iii) listed on a U.S. securities
exchange are not considered "foreign securities" because they
are not subject to many of the special considerations and risks
(discussed below) that apply to investments in foreign securities
traded and held abroad. The Fund has no restrictions on the amount
of its assets that may be invested in securities of foreign issuers,
and thus the relative amount of such investments will change from
time to time. The Fund may purchase securities issued by issuers
in any country, developed or underdeveloped. As of September 30,
1993, approximately 82% of the Fund's net assets were invested
in foreign securities, and it is currently anticipated that the
Fund may continue to invest 80% or more of its total assets in
foreign securities. Risks of investing in foreign securities may
include foreign taxation, changes in currency rates or currency
blockage, currency exchange costs, and differences between domestic
and foreign legal, auditing, brokerage and economic standards.
When more than 50% of its assets are invested in foreign securities
at the end of any fiscal year, the Fund intends to elect the application
of Section 853 of the Internal Revenue Code of 1986, as amended
(the "Internal Revenue Code"), discussed in "Dividends, Distributions
and Taxes." Securities held abroad by foreign sub-custodians for
the Fund may be held only in those countries and by those sub-custodians
approved from time to time by the Board under applicable rules.
See "Investment Objective and Policies-Foreign Securities" in
the Additional Statement for further discussion as to the possible
rewards and risks of investing in foreign securities.
The Fund invests in securities of smaller, less well-known companies
as well as those of large, well-known companies (not generally
included in the definition of "growth-type" companies). Current
income is not a consideration in the selection of portfolio securities,
whether selected for appreciation possibilities or liquidity purposes.
The Fund is intended for investors seeking capital appreciation
over the long term and who are willing to assume greater risks
in the hope of achieving greater gains, and is not meant for investors
seeking assured income and conservation of capital. The Fund's
investment policies are speculative and involve substantial risks,
and no assurance can be given that the Fund's investment objective
will be met.
Page 12
In an uncertain market or economic environment when it would be
appropriate to maintain a defensive position, the Fund may invest
in debt securities, such as rated or unrated bonds and debentures,
cash equivalents and preferred stocks. It is expected that short-term
(i.e., those maturing in one year or less from the date of purchase)
debt securities will be emphasized for defensive or liquidity
purposes, since such securities usually may be disposed of quickly
at prices not involving significant losses. When circumstances
warrant, securities may be sold without regard to the length of
time held, although short-term trading may increase brokerage
costs borne by the Fund.
Risk Factors. The Fund may use the following special investment
methods when their use appears appropriate to the Manager. Since
certain of such investment methods are speculative, they may subject
an investment in the Fund to relatively greater risks and costs
than would be the case with an investment in a fund that does
not use such methods.
Special Situations. The Fund may invest in "special situations"
that the Manager believes may present opportunities for capital
growth. A "special situation" exists when a merger, reorganization,
or other unusual development is expected to occur which, in the
opinion of the Manager, may prompt an increase in the value of
an issuer's securities, regardless of general business conditions
or the movement of the market as a whole. There is a risk that
the price of the security may decline if the anticipated development
fails to occur.
Small, Unseasoned Companies. The Fund may invest in securities
of small, unseasoned companies as well as those of large, well-known
companies. In view of the limited liquidity and volatility of
price movements of the former, the Fund will not permit a substantial
portion of its assets to be invested in securities of companies
(including their predecessors) that have operated less than three
years. See "Investment Objective and Policies-Small, Unseasoned
Companies" in the Additional Statement for a further discussion
of the risks involved in such investments.
Restricted and Illiquid Securities. The Fund will not purchase
or otherwise acquire securities that may be illiquid by virtue
of the absence of a readily available market or because their
disposition would be subject to legal restrictions ("restricted
securities") if, as a result, more than 15% of its net assets
(taken at current value) would be invested in securities that
are illiquid (including repurchase agreements maturing in more
than seven days). This policy does not limit purchases of restricted
securities eligible for resale to qualified institutional buyers
pursuant to Rule 144A under the Securities Act of 1933, as amended
(the "Securities Act"), that are determined to be liquid by the
Board, or by the Manager under Board-approved guidelines. Such
guidelines take into account trading activity for such securities
and the availability of reliable pricing information, among other
factors. If there is a lack of trading interest in particular
Rule 144A securities, the Fund's holdings of those securities
may be illiquid. The Fund currently intends to invest no more
than 10% of its net assets in illiquid and restricted securities,
excluding securities eligible for resale pursuant to Rule 144A
under the Securities Act that are determined to be liquid by the
Board or by the Manager under Board-approved guidelines. If due
to changes in relative market values of the Fund's portfolio securities,
more than 15% of the Fund's assets consisted of illiquid securities,
the Manager would consider appropriate steps to protect the Fund's
flexibility. There may be undesirable delays in selling such securities
at prices representing their fair value. See "Investment Objective
and Policies-Restricted and Illiquid Securities" in the Additional
Statement for further details.
Warrants and Rights. The Fund may invest up to 5% of its total
assets in warrants and rights (other than those that have been
acquired in units or are attached to other securities). No more
than 2% of the Fund's total assets may be invested in warrants
that are not listed on either The New York Stock Exchange or The
American Stock Exchange. Warrants are options to purchase equity
securities at specified prices valid for a specific period of
time. Rights are similar to warrants, but normally have a short
duration and are distributed directly by the issuer to its shareholders.
For further details, see "Investment Objective and Policies-Warrants
and Rights" in the Additional Statement.
Repurchase Agreements. The Fund may acquire securities subject
to repurchase agreements to generate income for liquidity purposes
to meet anticipated redemptions, or pending the investment of
proceeds from sales of Fund shares or settlement of purchases
of portfolio investments. The Fund's repurchase
Page 13
agreements will be fully collateralized. However, if the seller
of the securities fails to pay the agreed-upon repurchase price
on the delivery date, the Fund's risks may include the costs of
disposing of the collateral for the agreement and losses that
might result from any delays in foreclosing on the collateral.
The Fund's investments in repurchase agreements maturing in more
than seven days are subject to the limitation described above
on illiquid or restricted securities. There is no limit on the
amount of the Fund's net assets that may be subject to repurchase
agreements maturing in seven days or less. See "Investment Objective
and Policies-Repurchase Agreements" in the Additional Statement
for more details.
Loans of Portfolio Securities. The Fund has entered into a Securities
Lending Agreement and Guaranty (the "Securities Lending Agreement")
with The Bank of New York pursuant to which portfolio securities
of the Fund may be loaned to brokers, dealers and other financial
institutions. The Securities Lending Agreement provides, among
other things, for the division of responsibility and income between
the Fund and The Bank of New York and that loans must be adequately
collateralized and may be made only in conformity with the Fund's
Securities Lending Guidelines. The value of the securities loaned
may not exceed 25% of the value of the Fund's total assets. The
Fund presently does not intend that the value of the securities
loaned in the current fiscal year will exceed 5% of the value
of the Fund's total assets. In connection with securities lending,
the Fund might experience risks of delay in receiving additional
collateral, risks of delay in the return of the loaned securities
or loss of rights in the collateral should the borrower fail financially
(although the Fund is the beneficiary of a guaranty provided by
The Bank of New York, under certain circumstances). See "Investment
Objectives and Policies-Loans of Portfolio Securities" in the
Additional Statement for further information.
Borrowing. From time to time, the Fund may increase its ownership
of securities by borrowing up to 10% of the value of its net assets
from banks on an unsecured basis and investing the borrowed funds
(on which the Fund will pay interest), subject to the 300% asset
coverage requirement of the Investment Company Act of 1940, as
amended (the "Investment Company Act"). Purchasing securities
with borrowed funds is a speculative investment method known as
leverage. There are risks associated with leveraging purchases
of portfolio securities by borrowing, including possible reduction
of income and increased fluctuation of net asset value per share.
The Fund may be subject to relatively greater risks and costs
than a fund that does not use leverage. For further discussion
of such risks and other details, see "Financial Highlights" above
and "Investment Objective and Policies-Borrowing" in the Additional
Statement.
Covered Call Options and Hedging. The Fund may write (i.e., sell)
covered call options to generate income for liquidity or defensive
reasons. For hedging purposes it may purchase certain put and
call options, Stock Index Futures (described below) and options
on Stock Index Futures and broadly-based stock indices and enter
into interest rate swap transactions, all of which are referred
to as "Hedging Instruments." In general, the Fund may use Hedging
Instruments (i) to attempt to protect against declines in the
market value of the Fund's portfolio securities or Stock Index
Futures, and thus protect the Fund's net asset value per share
against downward market trends, or (ii) to establish a position
in the equity securities markets as a temporary substitute for
purchasing particular equity securities. The Fund will not use
Hedging Instruments for speculation. The principal risks associated
with covered calls and hedging are described below and in greater
detail under "Investment Objective and Policies-Covered Calls
and Hedging" in the Additional Statement.
Writing Covered Call Options. The Fund may sell (i.e., write)
call options ("calls") if: (i) after any sale, not more than 25%
of the Fund's total assets are subject to calls; (ii) the calls
are listed on a domestic securities exchange or quoted on the
Automated Quotation System of the National Association of Securities
Dealers, Inc. ("NASDAQ"); and (iii) the calls are "covered," i.e.,
the Fund owns the securities or Futures subject to the call (or
other securities acceptable for applicable escrow arrangements)
while the call is outstanding.
Purchasing Puts and Calls. The Fund may purchase put options ("puts")
which relate to (i) securities held by it; (ii) Stock Index Futures
(whether or not it holds such Stock Index Futures in its portfolio);
or (iii) broadly-based stock indices. The Fund may not write puts
other than those it previously purchased. The Fund may purchase
calls as to securities, broadly-based stock indices or Stock Index
Futures, or to effect a "closing
Page 14
purchase transaction" to terminate its obligation on a call it
has previously written. A call or put may be purchased only if,
after such purchase, the value of all put and call options held
by the Fund would not exceed 5% of the Fund's total assets.
Stock Index Futures. The Fund may buy and sell futures contracts
only if they relate to broadly-based stock indices ("Stock Index
Futures" or "Futures"). A stock index is "broadly-based" if it
includes stocks that are not limited to issuers in any particular
industry or group of industries. Stock Index Futures obligate
the seller to deliver (and the purchaser to take) cash to settle
the futures transaction, or to enter into an offsetting contract.
No physical delivery of the underlying stocks in the index is made.
Foreign Currency Options. The Fund may purchase and write puts
and calls on foreign currencies that are traded on a securities
or commodities exchange or quoted by major recognized dealers
in such options, for the purpose of protecting against declines
in the dollar value of foreign securities and against increases
in the dollar cost of foreign securities to be acquired. If a
rise is anticipated in the dollar value of a foreign currency
in which securities to be acquired are denominated, the increased
cost of such securities may be partially offset by purchasing
calls or writing puts on that foreign currency. If a decline in
the dollar value of a foreign currency is anticipated, the decline
in value of portfolio securities denominated in that currency
may be partially offset by writing calls or purchasing puts on
that foreign currency. However, in the event of currency rate
fluctuations adverse to the Fund's position, it would lose the
premium it paid and transactions costs.
Forward Contracts. The Fund may enter into foreign currency exchange
contracts ("Forward Contracts"), which obligate the seller to
deliver and the purchaser to take a specific amount of foreign
currency at a specific future date for a fixed price. The Fund
may enter into a Forward Contract in order to "lock in" the U.S.
dollar price of a security denominated in a foreign currency which
it has purchased or sold but which has not yet settled, or to
protect against a possible loss resulting from an adverse change
in the relationship between the U.S. dollar and a foreign currency.
There is a risk that the use of Forward Contracts may reduce the
gain that would otherwise result from a change in the relationship
between the U.S. dollar and a foreign currency. Forward Contracts
include standardized foreign currency futures contracts which
are traded on exchanges and are subject to procedures and regulations
applicable to other Futures. The Fund may also enter into a Forward
Contract to sell a foreign currency denominated in a currency
other than that in which the underlying security is denominated.
This is done in the expectation that there is a greater correlation
between the foreign currency of the Forward Contract and the foreign
currency of the underlying investment than between the U.S. dollar
and the foreign currency of the underlying investment. This technique
is referred to as "cross hedging." The success of cross hedging
is dependent on many factors, including the ability of the Manager
to correctly identify and monitor the correlation between foreign
currencies and the U.S. dollar. To the extent that the correlation
is not identical, the Fund may experience losses or gains on both
the underlying security and the cross currency hedge. The Fund
will not speculate in foreign currency exchange. There is no limitation
as to the percentage of the Fund's assets that may be committed
to foreign currency exchange contracts. The Fund does not enter
into such Forward Contracts or maintain a net exposure in such
contracts to the extent that the Fund would be obligated to deliver
an amount of foreign currency in excess of the value of the Fund's
assets denominated in that currency, or enter into a "cross hedge"
unless it is denominated in a currency or currencies that the
Manager believes will have price movements that tend to correlate
closely with the currency in which the investment being hedged
is denominated. See "Investment Objective and Policies-Additional
Information about Hedging Instruments and Their Use-Tax Aspects
of Covered Calls and Hedging Instruments" in the Additional Statement
for a discussion of the tax treatment of Forward Contracts.
Interest Rate Swap Transactions. The Fund may enter into interest
rate swaps. In an interest rate swap, the Fund and another party
exchange their respective commitments to pay or receive interest
on a security (e.g., an exchange of floating rate payments for
fixed rate payments). The Fund will not use interest rate swaps
for leverage. Swap transactions will be entered into only as to
security positions held by the Fund. The Fund may not enter into
swap transactions with respect to more than 50% of its total assets.
The Fund will
Page 15
segregate liquid assets (e.g., cash, U.S. Government securities
or other appropriate high grade debt obligations) equal to the
net excess, if any, of its obligations over its entitlements under
the swap and will mark to market that amount daily. The interest
rate risk of a swap is that the Fund will incur a net payment
obligation as a result of movements in interest rates. The credit
risk of a swap depends on the counterparty's ability to perform.
The value of the swap may decline if the counterparty's creditworthiness
deteriorates. If the counterparty defaults, the Fund risks the
loss of the net amount of interest payments that it is contractually
entitled to receive. The Fund may be able to reduce or eliminate
its exposure to losses under swap agreements either by assigning
them to another party, or by entering into an offsetting swap
agreement with the same counterparty or another creditworthy counterparty.
See "Investment Objective and Policies-Covered Calls and Hedging"
in the Additional Statement for further details.
Risks of Options and Futures Trading. "Investment Objective and
Policies-Covered Calls and Hedging" in the Additional Statement
contains more information about options and Futures, Forward Contracts,
options on Futures contracts and foreign currencies, interest
swap transactions, asset segregation requirements for Forward
Contracts, the payment of premiums for options trades, and on
the tax effects, risks and possible benefits to the Fund from
options trading, and information as to the Fund's other limitations
(which are not fundamental policies) on investment in Futures
and options thereon. There are certain risks in writing calls.
If a call written by the Fund is exercised, the Fund forgoes any
profit from any increase in the market price above the call price
of the underlying investment on which the call was written. The
principal risks of Futures trading are: (a) possible imperfect
correlation between the prices of the Futures and the market value
of the debt securities in the Fund's portfolio; (b) possible lack
of a liquid secondary market for closing out a Futures position;
(c) the need for additional skills and techniques beyond those
required for normal portfolio management; and (d) losses on Futures
resulting from interest rate movements not anticipated by the Manager.
Short Sales Against-the-Box. The Fund may not sell securities
short except in transactions referred to as "short sales against-the-box."
No more than 15% of the Fund's net assets will be held as collateral
for such short sales at any one time. See "Investment Objective
and Policies-Short Sales Against-the-Box" in the Additional Statement
for further details.
Investment Restrictions. The Fund has certain investment restrictions
that, together with its investment objective, are fundamental
policies changeable only by a vote of a "majority" (as defined
in the Investment Company Act) of the Fund's outstanding voting
securities. Under some of those restrictions, the Fund cannot:
(1) buy securities issued or guaranteed by any one issuer (except
the U.S. Government or any of its agencies or instrumentalities)
if with respect to 75% of its total assets, more than 5% of the
Fund's total assets would be invested in securities of that issuer,
or the Fund would then own more than 10% of that issuer's voting
securities; (2) concentrate investments in any particular industry;
therefore the Fund will not purchase the securities of companies
in any one industry if, thereafter, more than 25% of the value
of the Fund's assets would consist of securities of companies
in that industry; or (3) deviate from the percentage requirement
listed under "Borrowing," "Warrants and Rights" and "Short Sales
Against-the-Box." The percentage restrictions described above
and in the Additional Statement apply only at the time of investment
and require no action by the Fund as a result of subsequent changes
in value of the investment or size of the Fund. A supplementary
list of investment restrictions is contained in "Investment Restrictions"
in the Additional Statement.
Who is the Management of Oppenheimer Global Fund?
The Board has overall responsibility for the management of the
Fund under the laws of Massachusetts governing the responsibilities
of trustees of business trusts. Subject to the authority of the
Board, the Manager is responsible for the day-to-day management
of the Fund's business, supervises the investment operations of
the Fund and the composition of its portfolio and furnishes the
Fund advice and recommendations with respect to investments, investment
policies and the purchase and sale of securities pursuant to an
investment advisory agreement (the "Agreement") with the Fund.
Page 16
Subject to the Agreement, the Manager may consider sales of shares
of the Fund and other investment companies managed by the Manager
or its affiliates as a factor in the selection of broker-dealers
for the Fund's portfolio transactions. Under a new investment
advisory agreement, which was approved by the Fund's shareholders
at a meeting called for June 20, 1994, the Fund pays a monthly
management fee to the Manager at the following annual rates, computed
on the net assets of the Fund as of the close of business each
day, which are higher than those paid by most other investment
companies: 0.80% of the first $250 million of aggregate net assets;
0.77% of the next $250 million; 0.75% of the next $500 million;
0.69% of the next $1 billion; and 0.67% thereafter. The management
fee rates in effect during the Fund's fiscal year ending September
30, 1993 are in Note 4 to the financial statements included in
the Additional Statement. "Investment Management Services" in
the Additional Statement contains more information about the Agreement,
including a more complete description of expense reimbursement
arrangements, exculpation provisions and brokerage practices of the Fund.
William B. Wilby, a Senior Vice President of the Manager, serves
as the Portfolio Manager and a Vice President of the Fund and
has been primarily responsible for the day-to-day management of
the Fund's portfolio since December 1992. During the past five
years, Mr. Wilby has also served as an officer and portfolio manager
for other Oppenheimer funds, prior to which he was international
investment strategist at Brown Brothers, Harriman & Co. and a
Managing Director and Portfolio Manager at AIG Global Investors.
For more information about the Fund's other officers and Trustees,
see "Trustees and Officers" in the Additional Statement.
The Manager has operated as an investment adviser since April
30, 1959. The Manager and its affiliates currently advise U.S.
investment companies with assets aggregating over $25 billion
as of September 30, 1993, and having more than 1.8 million shareholder
accounts. The Manager is owned by Oppenheimer Acquisition Corp.,
a holding company owned in part by senior management of the Manager
and ultimately controlled by Massachusetts Mutual Life Insurance
Company, a mutual life insurance company which also advises pension
plans and investment companies.
Determination of Net Asset Value. The net asset value per share
of each class is determined as of 4:00 p.m. (all references to
time in this Prospectus mean New York time) each day the New York
Stock Exchange is open (a "regular business day") by dividing
the value of the Fund's net assets attributable to that class
by the number of shares of the class outstanding. The Board has
established procedures for valuing the Fund's securities. In general,
those valuations are based on market value, with special provisions
for: (i) securities not having readily-available market quotations;
(ii) short-term debt securities; and (iii) covered calls and Hedging
Instruments. Further details are in "Purchase, Redemption and
Pricing of Shares" in the Additional Statement. The net asset
values per share of Class A and Class B shares are expected to
be substantially the same; however, from time to time the net
asset value of each class may differ, due to differences in expenses
borne by each class, as described under "Purchase, Redemption
and Pricing of Shares-Dual Class Methodology" in the Additional Statement.
Class A Service Plan. The Fund has adopted a service plan (the
"Class A Plan") pursuant to Rule 12b-1 of the Investment Company
Act under which the Fund will reimburse the Distributor quarterly
for a portion of its costs incurred in connection with the personal
service and maintenance of accounts that hold Class A shares.
The distributor of the Fund's shares, Oppenheimer Funds Distributor,
Inc. (the "Distributor") will use such fees received from the
Fund in their entirety: (i) to compensate brokers, dealers, banks
and other institutions ("Recipients") each quarter for providing
personal service and maintenance of accounts that hold Class A
shares, and (ii) to reimburse itself (to the extent authorized
by the Board) for its other expenditures under the Class A Plan
and its direct costs for personal service and maintenance of accounts.
For the fiscal year ended September 30, 1993 the Board has not
presently authorized any reimbursement to the Distributor under
(ii) above. The services to be provided under the Class A Plan
include, but are not limited to, the following: answering routine
inquiries from the Recipient's customers concerning the Fund,
providing such customers with information on their investment
in Class A shares, assisting in the establishment and maintenance
of accounts or sub-accounts in the Fund, making the Fund's investment
Page 17
plans and dividend payment options available, and providing such other
information and customer liaison services and the maintenance
of accounts as the Distributor or the Fund may reasonably request.
The Distributor will be reimbursed only for quarterly payments
made to each Recipient at a rate not to exceed 0.0625% (0.25%
annually) of the average during the calendar quarter of the aggregate
net asset value of Class A shares of the Fund, computed as of
the close of each business day, held in accounts of the Recipient
or its customers; that rate may be reduced for such assets which
are attributable to sales prior to April 1, 1991.
The Class A Plan has the effect of increasing annual expenses
of Class A shares of the Fund by up to 0.25% of the class's average
annual net assets from what its expenses would otherwise be. In
addition, the Manager and the Distributor may, under the Class
A Plan, from time to time from their own resources (which, as
to the Manager, may include profits derived from the advisory
fee it receives from the Fund) make similar payments to Recipients
for distribution and administrative services they perform. For
further details, see "Distribution and Service Plans" in the Additional
Statement.
THE RULE 12B-1 FEES IMPOSED ON SHARES HELD IN THE TRUST ARE REBATED
TO THE TRUST AND ARE USED TO REDUCE EXPENSES OF THE TRUST RESULTING
IN INCREASED DISTRIBUTIONS TO UNIT HOLDERS. UNIT HOLDERS WHO ACQUIRE
SHARES OF SPECIAL SITUATIONS THROUGH REINVESTMENT OF DIVIDENDS
OR OTHER DISTRIBUTIONS OR THROUGH REINVESTMENT AT THE TRUST'S
TERMINATION WILL BEGIN TO INCUR RULE 12B-1 FEES AT SUCH TIME AS
SHARES ARE ACQUIRED.
Dividends, Distributions and Taxes. This discussion relates solely
to Federal tax laws and is not exhaustive; a qualified tax adviser
should be consulted. The Fund's dividends and distributions may
also be subject to state and local taxation. See "Tax Aspects
of Covered Calls and Hedging Instruments" and "Tax Status of the
Fund's Dividends and Distributions" in the Additional Statement
for more information on the tax aspects of the Fund's investments
in Hedging Instruments and other tax matters.
Dividends and Distributions. The Fund intends to declare dividends
for Class A shares from net investment income, if any, on an annual
basis in December each year, on a date set by the Board. As current
income is not an objective of the Fund, the amount of dividends,
if any, will likely be small. In addition, distributions may be
made annually in December out of any net short-term or long-term
capital gains derived from the sale of securities, premiums from
expired calls written by the Fund, and net profits from hedging
transactions realized in the twelve months ending on October 31
of that year. The Fund may make a supplemental distribution of
capital gains and ordinary income following the end of its fiscal
year. A shareholder purchasing Fund shares immediately prior to
the declaration of a dividend or capital gain distribution will
receive a distribution subject to income tax, and the distribution
will have the effect of reducing the Fund's net asset value per
share by the amount of the distribution. Any long-term capital
gains distributions and any non-taxable return of capital will
be identified separately when tax information is distributed by
the Fund. There is no fixed dividend rate and there can be no
assurance as to the payment of any dividends or the realization
of any gains.
All dividends and capital gains distributions to Fund shareholders
are automatically reinvested in shares of the same class at net
asset value, as of a date selected by the Board, unless the shareholder
notifies the Transfer Agent in writing to pay dividends or capital
gains distributions in cash, or to reinvest them in another Eligible
Fund, as described in "Performance, Dividend and Tax Information"
in the Additional Statement. That request must be received prior
to the record date for a dividend to be effective as to that dividend.
Dividends and distributions to Fund shareholders may be automatically
transferred to a designated account at a financial institution.
See the Fund's prospectus for more details.
The amount of a class's distributions may vary from time to time
depending upon market conditions, the composition of the Fund's
portfolio, expenses borne by the Fund, or borne separately by
that class as described in "Purchase, Redemption and Pricing of
Shares-Dual Class Methodology" in the Additional Statement. Dividends
are calculated in the same manner, at the same time, and on the
same day for shares of each class. However, dividends on Class
B shares are expected to be lower than on Class A shares on a
pro rata basis as a result of the asset-based sales charge on
Class B shares, and such dividends also will differ
Page 18
in amount as a consequence of any difference in the net asset
value between Class A and Class B shares.
Tax Status of the Fund's Dividends and Distributions. Dividends
paid by the Fund derived from net investment income or net short-term
capital gains are taxable to shareholders as ordinary income,
whether received in cash or reinvested. Long-term capital gains
distributions, if any, are taxable as long-term capital gains,
whether received in cash or reinvested and regardless of how long
Fund shares have been held. For information as to "backup" withholding
on dividends, see "How to Redeem Shares-General Information on
Redemptions" in the Fund's Prospectus.
The Fund currently intends to invest more than 50% of its total
assets in securities of foreign issuers, and when its assets are
so invested at the end of any fiscal year in which it qualifies
as a "regulated investment company" under the Internal Revenue
Code, it may elect the application of Section 853 of the Internal
Revenue Code to permit shareholders to take a credit (or a deduction)
for foreign income taxes paid by the Fund. The Fund elected the
application of Section 853 in its fiscal year ended September
30, 1993. Such foreign tax credit or deduction is subject to certain
limitations under the Internal Revenue Code. See "Tax Status of
the Fund's Dividends and Distributions" in the Additional Statement
for further discussion of this provision.
Tax Status of the Fund. If the Fund qualifies as a "regulated
investment company" under the Internal Revenue Code, it will not
be liable for Federal income taxes on amounts paid by it as dividends
and distributions. The Fund so qualified during its last fiscal
year, and intends to qualify in current and future years, but
reserves the right not to do so. The Internal Revenue Code contains
a number of complex tests relating to qualification which the
Fund might not meet in any particular year. For example, if the
Fund derives 30% or more of its gross income from the sale of
securities held for less than three months, it may fail to qualify
(see "Tax Aspects of Covered Calls and Hedging Instruments" in
the Additional Statement). If it did not qualify, the Fund would
be treated for tax purposes as an ordinary corporation and receive
no tax deduction for dividends and distributions paid to shareholders.
Fund Performance Information
Total Return Information. From time to time, the "average annual
total return," "total return" and "total return at net asset value"
of an investment in each class of shares of the Fund may be advertised.
The "average annual total return" of each class for a particular
period is computed by determining the average annual compounded
rate of return over the period, using the initial amount invested
at the beginning of the period and the redeemable value of the
investment at the end of the period. The "total return" of each
class for a period is a cumulative rate of return of a hypothetical
investment over the entire period, also using the initial amount
invested and the redeemable value at the end of the period. The
initial amount invested assumes the payment of the Fund's current
maximum initial sales charge applicable to Class A shares sold
to investors other than the Trust. The Fund may also quote a "total
return at net asset value" of each class which is total return
calculated without considering either initial sales charge. The
redeemable value of the investment assumes that all dividends
and capital gains distributions have been reinvested at net asset
value without sales charge. The "average annual total return,"
"total return" and "total return at net asset value" indicate
the investment results an investor would have experienced over
the stated period from changes in share price and reinvestment
of dividends and distributions. All such performance information
is based on historical earnings and is not intended to indicate
future performance. "Performance, Dividend and Tax Information"
in the Additional Statement contains more information about calculating
the Fund's returns and other performance information.
Management's Discussion of Performance. During the Fund's fiscal
year ended September 30, 1993, the Fund's foreign investments
reflected a shift by the Manager toward emerging growth markets
in Asia and Latin America, and a reduction in European investments.
During this time, the Manager diversified the Fund's U.S. investments
among a broad range of industries perceived to have growth opportunities.
During the past fiscal year, the performance of the securities
markets was impacted by a number of economic
Page 19
factors, which as to the European markets included slow growth
rates and currency turmoil and as to the U.S. markets included
a low interest rate environment.
Please refer to the APPENDIX following the last page of this document
for details on the chart included at this point.
The performance graph set forth above compares the Fund's total
return over a ten-year period with respect to Class A shares against
the performance of the Morgan Stanley World Index, an unmanaged
index of issuers listed on the stock exchanges of 20 foreign countries
and the United States and widely recognized as a measure of global
stock market performance. The Morgan Stanley World Index includes
a factor for the reinvestment of dividends but does not reflect
expenses or taxes. The Fund's return on Class A shares reflects
the deduction of the current maximum sales charge of 5.75%, and
includes reinvestment of all dividends and capital gains distributions,
but does not consider taxes.
Additional Information
Description of the Fund and its Shares. The Board is empowered
to issue full and fractional shares of one or more series and
classes of series. Shares of one series having two classes (Class
A and Class B) have been authorized, which constitute the shares
of beneficial interest described herein. As explained in this
Prospectus, each class has different dividends, distributions
and expenses, and may have different net asset values.
Each shareholder is entitled to one vote per share held (and a
fractional vote for a fractional share) on matters submitted to
his or her vote. Only shareholders of a particular class vote
on matters affecting only that class. On all other matters submitted
to a vote of the shareholders, the holders of separate classes
vote together
Page 20
as a single class. Shares do not have preemptive or subscription
or cumulative voting rights. The Trustees may divide or combine
the shares of a class into a greater or lesser number of shares
without thereby changing the proportionate beneficial interest
in the Fund. The Fund does not anticipate holding annual meetings.
Under certain circumstances, shareholders of the Fund have the
right to remove a Trustee. Although the Fund's Declaration of
Trust states that when issued, shares are fully-paid and non-assessable,
shareholders may be held personally liable as "partners" for the
Fund's obligations; however, the risk of a shareholder incurring
any financial loss is limited to the relatively remote circumstances
in which the Fund is unable to meet its obligations. See "Additional
Information" in the Additional Statement for details.
The Custodian and the Transfer Agent. The Custodian of the assets
of the Fund is The Bank of New York. The Manager and its affiliates
presently have banking relationships with the Custodian. See "Additional
Information" in the Additional Statement for further information.
The Fund's cash balances in excess of $100,000 held by the Custodian
are not protected by Federal deposit insurance. Such uninsured
balances at times may be substantial.
The Transfer Agent, a division of the Manager, acts as transfer
agent and shareholder servicing agent on an at-cost basis for
the Fund and certain of the other open-end funds advised by the
Manager, and as transfer agent for unit investment trusts for
the accumulation of shares of one of such funds. Shareholders
should direct any inquiries concerning the Fund to the Fund's
Transfer Agent at the address or toll-free phone number listed
on page 9 of this Prospectus.
What are Some Additional Considerations for Investors?
Investors should be aware of certain other considerations before
making a decision to invest in the Trust described herein.
The Sponsor has obtained an exemptive order of the Securities
and Exchange Commission ("SEC") to enable it to deposit Oppenheimer
Global Fund shares purchased for deposit in the Trust. Under the
terms of the exemptive order, the Sponsor has agreed to take certain
steps to ensure that investment in the Fund shares is equitable
to all parties and particularly that the interests of the Unit
holders are protected. The Fund has agreed to waive any sales
charge on shares sold to the Trust. Furthermore, First Trust Advisors
L.P. has agreed to waive its usual fee for acting as Evaluator
of the Trust's portfolio with respect to that portion of the portfolio
comprised of Fund shares, since information with respect to the
price of the Fund's shares is readily available to it. In addition,
the Indenture requires the Trustee to vote all shares of the Fund
held in the Trust in the same manner and ratio on all proposals
as the vote of owners of Fund shares not held by the Trust.
The value of the Fund's shares, like the value of the Treasury
Obligations, will fluctuate over the life of the Trust and may
be more or less than the price at which they were deposited in
the Trust. The Fund's shares may appreciate or depreciate in value
(or pay dividends or other distributions) depending on the full
range of economic and market influences affecting the securities
in which it is invested and the success of the Fund's Adviser
in anticipating or taking advantage of such opportunities as they
may occur. However, the Sponsor believes that, upon termination
of the Trust, even if the Fund shares deposited in the Trust are
worthless, an event which the Sponsor considers highly unlikely,
the Treasury Obligations will provide sufficient principal to
at least equal $10.00 per Unit (which is equal to the per Unit
value upon maturity of the Treasury Obligations) for those individuals
purchasing on the Initial Date of Deposit (or any other Date when
the value of the Units is $10.00 or less). This feature of the
Trust provides Unit holders with principal protection, although
they might forego any earnings on the amount invested. To the
extent that Units are purchased at a price less than $10.00 per
Unit, this feature may also provide a potential for capital appreciation.
Unless a Unit holder purchases Units of the Trust on the Initial
Date of Deposit (or another date when the value of the Units is
$10.00 or less), total distributions, including distributions
made upon termination of the Trust, may be less than the amount
paid for a Unit.
The Sponsor, Adviser, Underwriter, Fund and the Trustee shall
not be liable in any way for any default, failure or defect in any Security.
Page 21
The Trust consists of the Securities listed in Part One as may
continue to be held from time to time in the Trust.
The Trustee has no power to vary the investments of the Trust,
i.e., the Trustee will have no managerial power to take advantage
of market variations to improve a Unit holder's investment but
may dispose of Securities only under limited circumstances. See
"How May Securities be Removed from the Trust?" Of course, the
portfolio of the Fund will be changing as the Adviser attempts
to achieve the Fund's objective.
To the best of the Sponsor's knowledge, there is no litigation
pending as of the date of this Prospectus in respect of any Security
which might reasonably be expected to have a material adverse
effect on the Trust. At any time after the date of this Prospectus,
litigation may be instituted on a variety of grounds with respect
to the Securities. The Sponsor is unable to predict whether any
such litigation will be instituted, or if instituted, whether
such litigation might have a material adverse effect on the Trust.
PUBLIC OFFERING
How is the Public Offering Price Determined?
Units are offered at the Public Offering Price as indicated in
Part One attached hereto. The Public Offering Price is based on
the aggregate bid side evaluation of the Treasury Obligations
and the net asset value of the Fund shares in the Trust, plus
or minus cash, if any, in the Capital and Income Accounts held
or owned by the Trust, plus a maximum sales charge of 5.5% of
the Public Offering Price (equivalent to 5.82% of the net amount
invested) divided by the number of outstanding Units of the Trust.
The minimum purchase in the Trust is $1,000. The applicable sales
charge is reduced by a discount as indicated below for volume purchases:
Percent of Percent of
Offering Net Amount
Number of Units Price Invested
_______________ _________ __________
10,000 but less than 50,000 0.60% 0.6036%
50,000 but less than 100,000 1.30% 1.3171%
100,000 or more 2.10% 2.1450%
Any such reduced sales charge shall be the responsibility of the
selling Underwriter or dealer. The reduced sales charge structure
will apply on all purchases of Units in the Trust by the same
person on any one day from any one underwriter or dealer. Additionally,
Units purchased in the name of the spouse of a purchaser or in
the name of a child of such purchaser under 21 years of age will
be deemed, for the purposes of calculating the applicable sales
charge, to be additional purchases by the purchaser. The reduced
sales charges will also be applicable to a trustee or other fiduciary
purchasing securities for a single trust estate or single fiduciary
account. The purchaser must inform the Underwriter or dealer of
any such combined purchase prior to the sale in order to obtain
the indicated discount. With respect to the employees, officers
and directors (including their immediate families and trustees,
custodians or a fiduciary for the benefit of such person) of the
Sponsor, Underwriters, dealers and their subsidiaries, the sales
charge is reduced by 2.0% of the Public Offering Price for purchases
of Units during the initial and secondary offering periods.
The Public Offering Price will be equal to the bid price per Unit
of the Treasury Obligations and the net asset value of the Fund
shares therein plus or minus a pro rata share of cash, if any,
in the Capital and Income Accounts of the Trust plus the applicable
sales charge.
The offering price of the Treasury Obligations in the Trust may
be expected to be greater than the bid price of the Treasury Obligations
by less than 2%.
Although payment is normally made three business days following
the order for purchase, payment may be made prior thereto. Cash,
if any, made available to the Sponsor prior to the date of settlement
for the purchase of Units may be used in the Sponsor's business
and may be deemed to be a benefit to the Sponsor, subject to the
limitations of the Securities Exchange Act of 1934. Delivery of
Units so ordered will be
Page 22
made five business days following such order or shortly thereafter.
See "Rights of Unit Holders-How May Units be Redeemed?" for information
regarding the ability to redeem Units ordered for purchase.
How are Units Distributed?
It is the intention of the Sponsor to qualify Units of the Trust
for sale in a number of states. Sales will be made to dealers
and others at prices which represent a concession or agency commission
of 65% of the total sales charge for Units sold by such dealers.
Volume concessions or agency commissions of an additional 0.40%
of the Public Offering Price will be given to any broker/dealer
or bank, who purchase from the Sponsor at least $250,000 on any
day. The Sponsor reserves the right to change the amount of the
concession or agency commission from time to time. Certain commercial
banks are making Units of the Trust available to their customers
on an agency basis. A portion of the sales charge paid by these
customers is retained by or remitted to the banks in the amounts
indicated above. Under the Glass-Steagall Act, banks are prohibited
from underwriting Trust Units; however, the Glass-Steagall Act
does permit certain agency transactions and the banking regulators
have not indicated that these particular agency transactions are
not permitted under such Act. In Texas and in certain other states,
any banks making Units available must be registered as broker/dealers
under state law.
Underwriters, dealers and others who, in a single month, purchase
from the Sponsor Units of any Series of The First Trust GNMA,
The First Trust of Insured Municipal Bonds, The First Trust Combined
Series, The First Trust Special Situations Trust, Templeton Growth
and Treasury Trust, Templeton Foreign Fund & U.S. Treasury Securities
Trust, The Advantage Growth and Treasury Securities Trust or any
other unit investment trust of which Nike Securities L.P. is the
Sponsor (the "UIT Units"), which sale of UIT Units are in the
following aggregate dollar amounts, will receive additional concessions
from the Sponsor as indicated in the following table:
Aggregate Monthly Amount Additional Concession
of UIT Units Sold (per $1,000 sold)
________________________ _____________________
$ 1,000,000 - $2,499,999 $0.50
$ 2,500,000 - $4,999,999 $1.00
$ 5,000,000 - $7,499,999 $1.50
$ 7,500,000 - $9,999,999 $2.00
$10,000,000 or more $2.50
Aggregate Monthly Dollar Amount of UIT Units Sold is based on
settled trades for a month (including sales of UIT Units to the
Sponsor in the secondary market which are resold), net of redemptions.
From time to time the Sponsor may implement programs under which
dealers of the Trust may receive nominal awards from the Sponsor
for each of their registered representatives who have sold a minimum
number of UIT Units during a specified time period. In addition,
at various times the Sponsor may implement other programs under
which the sales force of a dealer may be eligible to win other
nominal awards for certain sales efforts, or under which the Sponsor
will reallow to any such dealer that sponsors sales contests or
recognition programs conforming to criteria established by the
Sponsor, or participates in sales programs sponsored by the Sponsor,
an amount not exceeding the total applicable sales charges on
the sales generated by such person at the public offering price
during such programs. Also, the Sponsor in its discretion may
from time to time pursuant to objective criteria established by
the Sponsor pay fees to qualifying dealers for certain services
or activities which are primarily intended to result in sales
of Units of the Trust. Such payments are made by the Sponsor out
of its own assets, and not out of the assets of the Trust. These
programs will not change the price Unit holders pay for their
Units or the amount that the Trust will receive from the Units sold.
The Sponsor may from time to time in its advertising and sales
materials compare the then current estimated returns on the Trust
and returns over specified periods on other similar Trusts sponsored
by Nike Securities L.P. with returns on other taxable investments
such as corporate or U.S. Government bonds, bank CDs and money
market accounts or money market funds, each of which has investment
characteristics that may differ from those of the Trust. U.S.
Government bonds, for example, are backed by the
Page 23
full faith and credit of the U.S. Government and bank CDs and
money market accounts are insured by an agency of the federal
government. Money market accounts and money market funds provide
stability of principal, but pay interest at rates that vary with
the condition of the short-term debt market. The investment characteristics
of the Trust are described more fully elsewhere in this Prospectus.
Trust performance may be compared to performance on a total return
basis with the Dow Jones Industrial Average, the S&P 500 Composite
Price Stock Index, the Morgan Stanley World Index or other global
indices, or performance data from Lipper Analytical Services,
Inc. and Morningstar Publications, Inc. or from publications such
as Money Magazine, The New York Times, U.S. News and World Report,
Business Week, Forbes Magazine or Fortune Magazine. As with other
performance data, performance comparisons should not be considered
representative of the Trust's relative performance for any future period.
What are the Sponsor's Profits?
The Sponsor of the Trust will receive a gross sales commission
equal to 5.5% of the Public Offering Price of the Units (equivalent
to 5.82% of the net amount invested), less any reduced sales charge
for quantity purchases as described under "Public Offering-How
is the Public Offering Price Determined?" See "Public Offering-How
are Units Distributed?" for information regarding the receipt
of the excess gross sales commissions by the Sponsor from the
Underwriters and additional concessions available to the dealers
and others.
In maintaining a market for the Units, the Sponsor or Underwriters
will also realize profits or sustain losses in the amount of any
difference between the price at which Units are purchased and
the price at which Units are resold (which price includes a sales
charge of 5.5%) or redeemed. The secondary market public offering
price of Units may be greater or less than the cost of such Units
to the Sponsor or Underwriters.
Will There be a Secondary Market?
Although it is not obligated to do so, the Sponsor intends to,
and the Underwriters may, maintain a market for the Units and
continuously to offer to purchase Units at prices, subject to
change at any time, based upon the aggregate bid price of the
Treasury Obligations in the portfolio of the Trust and the net
asset value of the Fund shares in the Trust plus or minus cash,
if any, in the Capital and Income Accounts of the Trust. All expenses
incurred in maintaining a secondary market, other than the fees
of the Evaluator, the supervisory and audit expenses and the costs
of the Trustee in transferring and recording the ownership of
Units, will be borne by the Sponsor. If the supply of Units exceeds
demand, or for some other business reason, the Sponsor may discontinue
purchases of Units at such prices. IF A UNIT HOLDER WISHES TO
DISPOSE OF HIS OR HER UNITS, HE OR SHE SHOULD INQUIRE OF THE SPONSOR
AS TO CURRENT MARKET PRICES PRIOR TO MAKING A TENDER FOR REDEMPTION
TO THE TRUSTEE.
RIGHTS OF UNIT HOLDERS
How is Evidence of Ownership Issued and Transferred?
The Trustee is authorized to treat as the record owner of Units
that person who is registered as such owner on the books of the
Trustee. Ownership of Units may be evidenced by registered certificates
executed by the Trustee and the Sponsor. Delivery of certificates
representing Units ordered for purchase is normally made five
business days following such order or shortly thereafter. Certificates
are transferable by presentation and surrender to the Trustee
properly endorsed or accompanied by a written instrument or instruments
of transfer. Certificates to be redeemed must be properly endorsed
or accompanied by a written instrument or instruments of transfer.
A Unit holder must sign exactly as his name appears on the face
of the certificate with signature guaranteed by a participant
in the Securities Transfer Agents Medallion Program ("STAMP")
or such other signature guaranty program in addition to, or in
substitution for, STAMP, as may be accepted by the Trustee. In
certain instances the Trustee may require additional documents
such as, but not limited to, trust instruments, certificates of
death, appointments as executor or administrator or certificates
of corporate authority. Record ownership may occur before settlement.
Certificates will be issued in fully registered form, transferable
only on the books of the Trustee in denominations of one Unit
or any multiple thereof, numbered serially for purposes of identification.
Page 24
Unit holders may elect to hold their Units in uncertificated form.
The Trustee will maintain an account for each such Unit holder
and will credit each such account with the number of Units purchased
by that Unit holder. Within two business days of the issuance
or transfer of Units held in uncertificated form, the Trustee
will send to the registered owner of Units a written initial transaction
statement containing a description of the Trust; the number of
Units issued or transferred; the name, address and taxpayer identification
number, if any, of the new registered owner; a notation of any
liens and restrictions of the issuer and any adverse claims to
which such Units are or may be subject or a statement that there
are no such liens, restrictions or adverse claims; and the date
the transfer was registered. Uncertificated Units are transferable
through the same procedures applicable to Units evidenced by certificates
(described above), except that no certificate need be presented
to the Trustee and no certificate will be issued upon the transfer
unless requested by the Unit holder. A Unit holder may at any
time request the Trustee to issue certificates for Units.
Although no such charge is now made or contemplated, a Unit holder
may be required to pay $2.00 to the Trustee per certificate reissued
or transferred and to pay any governmental charge that may be
imposed in connection with each such transfer or exchange. For
new certificates issued to replace destroyed, stolen or lost certificates,
the Unit holder may be required to furnish indemnity satisfactory
to the Trustee and pay such expenses as the Trustee may incur.
Mutilated certificates must be surrendered to the Trustee for replacement.
How are Income and Capital Distributed?
The Trustee will distribute any net income (other than accreted
interest) received with respect to any of the Securities in the
Trust on or about the Distribution Dates to Unit holders of record
on the preceding Record Date. See Part One of the Prospectus.
Proceeds received from rebated Rule 12b-1 fees or on the sale
of any Securities in the Trust, to the extent not used to meet
redemptions of Units or pay expenses, will be distributed at least
annually on each Distribution Date to Unit holders of record on
the preceding Record Date. Income with respect to the original
issue discount on the Treasury Obligations in the Trust, will
not be distributed currently, although Unit holders will be subject
to Federal income tax as if a distribution had occurred. See "What
is the Federal Tax Status of Unit Holders?"
The Record Date and Distribution Date were established so as to
occur shortly after the record date and the payment dates of the
Fund. The Fund normally pays dividends on its net investment income
annually. Net realized capital gains, if any, will be distributed
at least annually.
Within a reasonable time after the Trust is terminated, each Unit
holder will, upon surrender of his or her Units for redemption,
receive: (i) the number of shares of the Fund attributable to
his or her Units, which will be distributed "in-kind" directly
to his or her account, rather than redeemed, (ii) a pro rata share
of the amounts realized upon the disposition of the Treasury Obligations
and (iii) a pro rata share of any other assets of the Trust, less
expenses of the Trust, subject to the limitation that Treasury
Obligations may not be sold to pay for Trust expenses. Not less
than 60 days prior to the termination of the Trust, Unit holders
will be offered the option of having the proceeds from the disposition
of the Treasury Obligations in the Trust invested on the date
such proceeds become available to the Trust, in additional shares
of the Fund at net asset value. Such shares will not be subject
to a sales charge or a contingent deferred sales load but such
shares will incur Rule 12b-1 fees as do all other shares held
directly by investors in the Fund. Unless a Unit holder indicates
that he or she wishes to reinvest such amounts, they will be paid
in cash, as indicated above. A Unit holder may, of course, at
any time after the Fund shares are distributed to his or her account,
instruct the Fund to redeem all or a portion of the shares in
his or her account. Shares of the Fund, as more fully described
in its prospectus, will be redeemed at the then current net asset
value. If within 180 days after the termination of the Trust a
registered owner of Units has not surrendered the Units, the Trustee
shall liquidate the shares of the Fund held for such Unit holder
and hold the funds to which such Unit holder is entitled until
such Units are surrendered.
The Trustee will credit to the Income Account of the Trust any
dividends, distributions or rebated Rule 12b-1 fees received on
the Fund shares therein. All other receipts (e.g., return of principal,
capital gains, etc.) are credited to the Capital Account of the Trust.
Page 25
The Trustee may establish reserves (the "Reserve Account") within
the Trust for state and local taxes, if any, and any governmental
charges payable out of the Trust.
How Can Distributions to Unit Holders be Reinvested?
Each Unit holder of the Trust will have distributions of principal,
capital gains, if any, or income automatically invested in Fund
shares (if Fund shares are registered in the Unit holder's state
of residence) deposited at such share's net asset value next computed,
unless he or she indicates at the time of purchase, or subsequently
notifies the Trustee in writing, that he or she wishes to receive
cash payments. Shares of the Fund obtained through reinvestment
will not be subject to a sales charge, although such shares will
incur Rule 12b-1 fees as do all other shares held directly by
investors in the Fund. Reinvestment by the Trust in Fund shares
will normally be made as of the distribution date of the Trust
after the Trustee deducts therefrom the expenses of the Trust.
Additional information with respect to the investment objective
and policies of the Fund is contained in its Additional Statement,
which can be obtained from the Underwriter.
Unit holders who are receiving distributions in cash may elect
to participate in the automatic reinvestment feature by filing
with the Trustee an election to have such distributions reinvested
without a sales charge. Such election must be received by the
Trustee at least ten days prior to the Record Date applicable
to any distribution in order to be in effect for such Record Date.
Any such election shall remain in effect until a subsequent notice
is received by the Trustee.
Exchange Privilege. Shares of the Fund held in a Unit holder's
reinvestment account and of the Eligible Funds listed in "Right
of Accumulation" in the Fund's Prospectus may be exchanged at
net asset value per share at the time of exchange, without sales
charge, if all of the following conditions are met: (1) shares
of the fund selected for exchange are available for sale in the
shareholder's state of residence; (2) the respective prospectuses
of the funds the shares of which are to be exchanged and acquired
offer the Exchange Privilege to the investor; (3) newly-purchased
(by initial or subsequent investment) shares are held in an account
for at least seven days and all other shares at least one day
prior to the exchange; and (4) the aggregate net asset value of
shares surrendered for exchange is at least equal to the minimum
investment requirements of the fund the shares of which are to
be acquired. See "Exchange Privilege" in the Fund's prospectus
for additional information regarding the exchange procedure. THE
EXCHANGE PRIVILEGE DOES NOT APPLY TO OPPENHEIMER GLOBAL FUND SHARES
IN THE TRUST'S PORTFOLIO, ONLY TO A UNIT HOLDER'S REINVESTMENT ACCOUNT.
General Information on Exchanges. Shares to be exchanged are redeemed
on the regular business day the Transfer Agent receives an exchange
request in proper form (the "Redemption Date"). Normally, shares
of the fund to be acquired are purchased on the Redemption Date,
but such purchases may be delayed by either fund up to five business
days, if it determines that it would be disadvantaged by an immediate
transfer of the redemption proceeds. The Fund in its discretion
reserves the right to refuse any exchange requests that will disadvantage
it, for example, if the receipt of multiple exchange requests
from a dealer might require the disposition of securities at a
time or a price disadvantageous to the Fund.
The Eligible Funds have different investment objectives and policies.
For complete information, including sales charges and expenses,
a prospectus of the fund into which the exchange is being made
should be read prior to an exchange. Dealers or brokers who process
exchange orders on behalf of their customers may charge for their
services. Those charges may be avoided by requesting the Fund
directly to exchange shares. For Federal tax purposes, an exchange
is treated as a redemption and purchase of shares. See "How to
Redeem Shares-Reinvestment Privilege" in the Fund's prospectus
for a discussion of certain tax effects of exchanges. No sales
commissions are paid by the Distributor on exchanges of shares
(unless a front-end sales charge is assessed on the exchange).
Pursuant to telephone exchange agreements with the Distributor,
certain dealers, brokers and investment advisors may exchange
their client's Fund shares by telephone, subject to the terms
of the agreements and the Distributor's right to reject or suspend
such telephone exchanges at any time. Because of the restrictions
and procedures under those agreements, such exchanges may be subject
to timing limitations
Page 26
and other restrictions that do not apply to exchanges requested
by shareholders directly, as described above.
What Reports Will Unit Holders Receive?
The Trustee shall furnish Unit holders in connection with each
distribution a statement of the amount of income, if any, and
the amount of other receipts, if any, which are being distributed,
expressed in each case as a dollar amount per Unit. Within a reasonable
time after the end of each calendar year, the Trustee will furnish
to each person who at any time during the calendar year was a
Unit holder of the Trust the following information in reasonable
detail: (1) a summary of transactions in the Trust for such year;
(2) any Securities sold during the year and the Securities held
at the end of such year by the Trust; (3) the redemption price
per Unit based upon a computation thereof on the 31st day of December
of such year (or the last business day prior thereto); and (4)
amounts of income and capital gains distributed during such year.
How May Units be Redeemed?
A Unit holder may redeem all or a portion of his or her Units
by tender to the Trustee at its corporate trust office in the
City of New York of the certificates representing the Units to
be redeemed, or in the case of uncertificated Units, delivery
of a request for redemption, duly endorsed or accompanied by proper
instruments of transfer with signature guaranteed as explained
above (or by providing satisfactory indemnity, as in connection
with lost, stolen or destroyed certificates), and payment of applicable
governmental charges, if any. No redemption fee will be charged.
On the third business day following such tender, the Unit holder
will be entitled to receive in cash an amount for each Unit equal
to the redemption price per Unit next computed after receipt by
the Trustee of such tender of Units. The day of tender is deemed
to be the date on which Units are received by the Trustee, except
that as regards Units received after 4:00 p.m. Eastern time, the
date of tender is the next day on which the NYSE is open for trading
and such Units will be deemed to have been tendered to the Trustee
on such day for redemption at the redemption price computed on
that day. Units so redeemed shall be cancelled.
Any amounts paid on redemption representing income shall be withdrawn
from the Income Account of the Trust to the extent that funds
are available for such purpose. All other amounts paid on redemption
shall be withdrawn from the Capital Account of the Trust.
The Trustee is empowered to sell Securities of the Trust in order
to make funds available for redemption. To the extent that Securities
are sold, the size and diversity of the Trust will be reduced.
Such sales may be required at a time when Securities would not
otherwise be sold and might result in lower prices than might
otherwise be realized. Shares of the Fund will be sold to meet
redemptions of Units before Treasury Obligations, although Treasury
Obligations may be sold if the Trust is assured of retaining a
sufficient principal amount of Treasury Obligations to provide
funds upon maturity of the Trust at least equal to $10.00 per Unit.
The redemption price per Unit (as well as the secondary market
Public Offering Price) will be determined on the basis of the
bid price of the Treasury Obligations and the net asset value
of the Fund shares in the Trust, plus or minus cash, if any, in
the Capital and Income Accounts of the Trust, as of the close
of trading on the NYSE on the date any such determination is made.
The Redemption Price per Unit is the pro rata share of each Unit
determined by the Trustee by adding: (1) the cash on hand in the
Trust other than cash deposited in the Trust to purchase Securities
not applied to the purchase of such Securities; (2) the aggregate
value of the Securities (including "when issued" contracts, if
any) held in the Trust, as determined by the Evaluator on the
basis of bid prices of the Treasury Obligations and the net asset
value of the Fund shares next computed; and (3) dividends or other
distributions receivable on Fund shares trading ex-dividend as
of the date of computation and amounts accrued, if any, for rebated
Rule 12b-1 fees; and deducting therefrom: (1) amounts representing
any applicable taxes or governmental charges payable out of the
Trust; (2) an amount representing estimated accrued expenses of
the Trust, including but not limited to fees and expenses of the
Trustee (including legal and auditing fees), the Evaluator, the
Supervisor and counsel fees, if any; (3) cash held for distribution
to Unit holders of record of the Trust as of the business day prior
Page 27
to the evaluation being made; and (4) other liabilities incurred
by the Trust; and finally dividing the results of such computation
by the number of Units of the Trust outstanding as of the date thereof.
The right of redemption may be suspended and payment postponed
for any period during which the NYSE is closed (other than for
customary weekend and holiday closings) or during which the SEC
determines that trading on the NYSE is restricted or any emergency
exists, as a result of which disposal or evaluation of the Securities
is not reasonably practicable, or for such other periods as the
SEC may by order permit. Under certain extreme circumstances,
the Sponsor may apply to the SEC for an order permitting a full
or partial suspension of the right of Unit holders to redeem their
Units. The Trustee is not liable to any person in any way for
any loss or damage which may result from any such suspension or postponement.
How May Units be Purchased by the Sponsor?
The Trustee shall notify the Sponsor of any tender of Units for
redemption. If the Sponsor's bid in the secondary market at that
time equals or exceeds the Redemption Price per Unit, it may purchase
such Units by notifying the Trustee before 1:00 p.m. Eastern time
on the same business day and by making payment therefor to the
Unit holder not later than the day on which the Units would otherwise
have been redeemed by the Trustee. Units held by the Sponsor may
be tendered to the Trustee for redemption as any other Units.
In the event the Sponsor does not purchase Units, the Trustee
may sell Units tendered for redemption in the over-the-counter
market, if any, as long as the amount to be received by the Unit
holder is equal to the amount he or she would have received on
redemption of the Units.
The offering price of any Units acquired by the Sponsor will be
in accord with the Public Offering Price described in the then
effective prospectus describing such Units. Any profit or loss
resulting from the resale or redemption of such Units will belong
to the Sponsor.
How May Securities be Removed from the Trust?
The portfolio of the Trust is not "managed" by the Sponsor or
the Trustee; their activities described herein are governed solely
by the provisions of the Indenture. The Indenture provides that
the Sponsor may (but need not) direct the Trustee to dispose of
a Security in the unlikely event that an issuer of a Security
defaults in the payment of dividends or interest or there exist
certain other materially adverse conditions described in the Indenture.
The Trustee may also sell Securities designated by the Sponsor,
or if not so directed, in its own discretion, for the purpose
of redeeming Units of the Trust tendered for redemption and the
payment of expenses; provided, however, that in the case of Securities
sold to meet redemption requests, Treasury Obligations may only
be sold if the Trust is assured of retaining a sufficient principal
amount of Treasury Obligations to provide funds upon maturity
of the Trust at least equal to $10.00 per Unit. Treasury Obligations
may not be sold to meet Trust expenses.
INFORMATION AS TO SPONSOR, TRUSTEE AND EVALUATOR
Who is the Sponsor?
Nike Securities L.P., the Sponsor, specializes in the underwriting,
trading and distribution of unit investment trusts and other securities.
Nike Securities L.P., an Illinois limited partnership formed in
1991, acts as Sponsor for successive series of The First Trust
Combined Series, The First Trust Special Situations Trust, The
First Trust Insured Corporate Trust, The First Trust of Insured
Municipal Bonds and The First Trust GNMA. First Trust introduced
the first insured unit investment trust in 1974 and to date more
than $8 billion in First Trust unit investment trusts have been
deposited. The Sponsor's employees include a team of professionals
with many years of experience in the unit investment trust industry.
The Sponsor is a member of the National Association of Securities
Dealers, Inc. and Securities Investor Protection Corporation and
has its principal offices at 1001 Warrenville Road, Lisle, Illinois
60532; telephone number (708) 241-4141. As of December 31, 1994,
the total partners' capital of Nike Securities L.P. was $10,863,058
(audited). (This paragraph relates only to the Sponsor and not
to the Trust or to any series thereof or to any other Underwriter.
The information is included herein only for the purpose of informing
investors as to the financial responsibility
Page 28
of the Sponsor and its ability to carry out its contractual obligations.
More detailed financial information will be made available by
the Sponsor upon request.)
Who is the Trustee?
The Trustee is The Chase Manhattan Bank (National Association),
a national banking association with its principal executive office
located at 1 Chase Manhattan Plaza, New York, New York 10081 and
its unit investment trust offices at 770 Broadway, New York, New
York 10003. Unit holders who have questions regarding this Trust,
may call Shareholder Financial Services, Inc. via the Customer
Service Help Line at 1-800-682-7520. The Trustee is subject to
supervision and examination by the Comptroller of the Currency,
the Federal Deposit Insurance Corporation and the Board of Governors
of the Federal Reserve System.
The Trustee, whose duties are ministerial in nature, has not participated
in the selection of the Securities. For information relating to
the responsibilities of the Trustee under the Indenture, reference
is made to the material set forth under "Rights of Unit Holders."
The Trustee and any successor Trustee may resign by executing
an instrument in writing and filing the same with the Sponsor
and mailing a copy of a notice of resignation to all Unit holders.
Upon receipt of such notice, the Sponsor is obligated to appoint
a successor Trustee promptly. If the Trustee becomes incapable
of acting or becomes bankrupt or its affairs are taken over by
public authorities, the Sponsor may remove the Trustee and appoint
a successor as provided in the Indenture. If upon resignation
of the Trustee no successor has accepted the appointment within
30 days after notification, the retiring Trustee may apply to
a court of competent jurisdiction for the appointment of a successor.
The resignation or removal of the Trustee becomes effective only
when the successor Trustee accepts its appointment as such or
when a court of competent jurisdiction appoints a successor Trustee.
Any corporation into which the Trustee may be merged or with which
it may be consolidated, or any corporation resulting from any
merger or consolidation to which a Trustee shall be a party, shall
be the successor Trustee. The Trustee must be a banking corporation
organized under the laws of the United States or any State and
having at all times an aggregate capital, surplus and undivided
profits of not less than $5,000,000.
Limitations on Liabilities of Sponsor and Trustee
The Sponsor and the Trustee shall be under no liability to Unit
holders for taking any action or for refraining from taking any
action in good faith pursuant to the Indenture, or for errors
in judgment, but shall be liable only for their own willful misfeasance,
bad faith, gross negligence (ordinary negligence in the case of
the Trustee) or reckless disregard of their obligations and duties.
The Trustee shall not be liable for depreciation or loss incurred
by reason of the sale by the Trustee of any of the Securities.
In the event of the failure of the Sponsor to act under the Indenture,
the Trustee may act thereunder and shall not be liable for any
action taken by it in good faith under the Indenture.
The Trustee shall not be liable for any taxes or other governmental
charges imposed upon or in respect of the Securities or upon the
interest thereon or upon it as Trustee under the Indenture or
upon or in respect of the Trust which the Trustee may be required
to pay under any present or future law of the United States of
America or of any other taxing authority having jurisdiction.
In addition, the Indenture contains other customary provisions
limiting the liability of the Trustee.
If the Sponsor shall fail to perform any of its duties under the
Indenture or become incapable of acting or become bankrupt or
its affairs are taken over by public authorities, then the Trustee
may (a) appoint a successor Sponsor at rates of compensation deemed
by the Trustee to be reasonable and not exceeding amounts prescribed
by the SEC, or (b) terminate the Indenture and liquidate the Trust
as provided herein, or (c) continue to act as Trustee without
terminating the Indenture.
Who is the Evaluator?
The Evaluator is FT Evaluators L.P., an Illinois limited partnership
formed in 1994 and an affiliate of the Sponsor. The Evaluator's
address is 1001 Warrenville Road, Lisle, Illinois 60532. The Evaluator
may resign or may be removed by the Sponsor and the Trustee, in
which event the Sponsor and the Trustee are to use their
Page 29
best efforts to appoint a satisfactory successor. Such resignation
or removal shall become effective upon the acceptance of appointment
by the successor Evaluator. If upon resignation of the Evaluator
no successor has accepted appointment within 30 days after notice
of resignation, the Evaluator may apply to a court of competent
jurisdiction for the appointment of a successor.
The Trustee, Sponsor and Unit holders may rely on any evaluation
furnished by the Evaluator and shall have no responsibility for
the accuracy thereof. Determinations by the Evaluator under the
Indenture shall be made in good faith upon the basis of the best
information available to it, provided, however, that the Evaluator
shall be under no liability to the Trustee, Sponsor or Unit holders
for errors in judgment. This provision shall not protect the Evaluator
in any case of willful misfeasance, bad faith, gross negligence
or reckless disregard of its obligations and duties.
OTHER INFORMATION
How May the Indenture Be Amended or Terminated?
The Sponsor and the Trustee have the power to amend the Indenture
without the consent of any of the Unit holders when such an amendment
is (1) to cure any ambiguity or to correct or supplement any provision
of the Indenture which may be defective or inconsistent with any
other provision contained therein, or (2) to make such other provisions
as shall not adversely affect the interest of the Unit holders
(as determined in good faith by the Sponsor and the Trustee).
The Indenture provides that the Trust shall terminate upon the
maturity, redemption or other disposition of the last of the Treasury
Obligations held in the Trust but in no event beyond the Mandatory
Termination Date indicated herein under "Summary of Essential
Information." The Trust may be liquidated at any time by consent
of 100% of the Unit holders of the Trust or by the Trustee in
the event that Units of the Trust not yet sold aggregating more
than 60% of the Units of the Trust are tendered for redemption
by the Underwriter, including the Sponsor. If the Trust is liquidated
because of the redemption of unsold Units of the Trust by the
Underwriter, the Sponsor will refund to each purchaser of Units
of the Trust the entire sales charge paid by such purchaser. In
the event of termination, written notice thereof will be sent
by the Trustee to all Unit holders of the Trust. Within a reasonable
period after termination, the Trustee will follow the procedures
set forth under "How are Income and Principal Distributed?"
Legal Opinions
The legality of the Units offered hereby and certain matters relating
to Federal tax law have been passed upon by Chapman and Cutler,
111 West Monroe Street, Chicago, Illinois 60603, as counsel for
the Sponsor. Carter, Ledyard & Milburn will act as counsel for
the Trustee and as special New York tax counsel for the Trust.
Experts
The statement of net assets, including the portfolio, of the Trust
contained in Part One of this Prospectus has been audited by Ernst
& Young LLP, independent auditors, as set forth in their report
thereon appearing therein and is included in reliance upon such
report given upon the authority of such firm as experts in accounting
and auditing.
Page 30
This page is intentionally left blank.
Page 31
CONTENTS:
Oppenheimer Global Growth & Treasury Securities
Trust
What is Oppenheimer Global Growth & Treasury
Securities Trust? 3
What are the Expenses and Charges? 3
What is the Federal Tax Status of Unit Holders? 5
Why are Investments in the Trust Suitable for
Retirement Plans? 8
Portfolio:
What are Treasury Obligations? 8
What is Oppenheimer Global Fund? 8
Fund Expenses 9
What are the Fund's Investment Policies? 11
Risk Factors 12
Who is the Management of Oppenheimer
Global Fund? 15
Fund Performance Information 18
Additional Information 19
What are Some Additional Considerations
for Investors? 20
Public Offering:
How is the Public Offering Price Determined? 21
How are Units Distributed? 22
What are the Sponsor's Profits? 23
Will There be a Secondary Market? 23
Rights of Unit Holders:
How is Evidence of Ownership Issued
and Transferred? 23
How are Income and Capital Distributed? 24
How Can Distributions to Unit Holders
be Reinvested? 25
What Reports Will Unit Holders Receive? 26
How May Units be Redeemed? 26
How May Units be Purchased by the Sponsor? 27
How May Securities be Removed
from the Trust? 27
Information as to Sponsor, Trustee and Evaluator:
Who is the Sponsor? 27
Who is the Trustee? 28
Limitations on Liabilities of Sponsor and Trustee 28
Who is the Evaluator? 28
Other Information:
How May the Indenture Be Amended
or Terminated? 29
Legal Opinions 29
Experts 29
___________
THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFER TO SELL,
OR A SOLICITATION OF AN OFFER TO BUY, SECURITIES IN ANY JURISDICTION
TO ANY PERSON TO WHOM IT IS NOT LAWFUL TO MAKE SUCH OFFER IN SUCH
JURISDICTION.
THIS PROSPECTUS DOES NOT CONTAIN ALL THE INFORMATION SET
FORTH IN THE REGISTRATION STATEMENTS AND EXHIBITS RELATING THERETO,
WHICH THE TRUST HAS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION,
WASHINGTON, D.C. UNDER THE SECURITIES ACT OF 1933 AND THE INVESTMENT
COMPANY ACT OF 1940, AND TO WHICH REFERENCE IS HEREBY MADE.
FIRST TRUST (registered trademark)
Oppenheimer Global
Growth & Treasury
Securities Trust
Prospectus
Part Two
December 29, 1995
First Trust (registered trademark)
1001 Warrenville Road, Suite 300
Lisle, Illinois 60532
1-708-241-4141
Trustee:
The Chase Manhattan Bank
(National Association)
770 Broadway
New York, New York 10003
THIS PART TWO MUST BE
ACCOMPANIED BY PART ONE
PLEASE RETAIN THIS PROSPECTUS
FOR FUTURE REFERENCE
Page 32
-APPENDIX-
The graph which appears on page 20 of the prospectus represents
a comparison between a $10,000 investment made on June 30, 1984
in Class A shares of Oppenheimer Global Fund and the Morgan Stanley
World Index. The chart indicates that $10,000 invested on June
30, 1984 in Class A shares of Oppenheimer Global Fund would be
worth $44,894 as of June 30, 1994 as opposed to $42,707 had the
$10,000 been invested in the Morgan Stanley World Index.
CONTENTS OF POST-EFFECTIVE AMENDMENT
OF REGISTRATION STATEMENT
This Post-Effective Amendment of Registration Statement
comprises the following papers and documents:
The facing sheet
The prospectus
The signatures
The Consent of Independent Auditors
Financial Data Schedule
S-1
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933,
the Registrant, Oppenheimer Global Growth & Treasury Securities
Trust, Series 1, certifies that it meets all of the requirements
for effectiveness of this Registration Statement pursuant to Rule
485(b) under the Securities Act of 1933 and has duly caused this
Post-Effective Amendment of its Registration Statement to be
signed on its behalf by the undersigned thereunto duly authorized
in the Village of Lisle and State of Illinois on December 29,
1995.
OPPENHEIMER GLOBAL GROWTH & TREASURY
SECURITIES TRUST, SERIES 1
(Registrant)
By NIKE SECURITIES L.P.
(Depositor)
By Carlos E. Nardo
Senior Vice President
Pursuant to the requirements of the Securities Act of 1933,
this Post-Effective Amendment of Registration Statement has been
signed below by the following person in the capacity and on the
date indicated:
Signature Title* Date
Robert D. Van Kampen Sole Director of )
Nike Securities )
Corporation, ) December 29, 1995
the General Partner )
of Nike Securities L.P. )
)
) Carlos E. Nardo
) Attorney-in-Fact**
*The title of the person named herein represents his capacity in
and relationship to Nike Securities L.P., Depositor.
**An executed copy of the related power of attorney was filed wi
th the Securities and Exchange Commission in connection with
the Amendment No. 1 to Form S-6 of The First Trust Special
Situations Trust, Series 18 (File No. 33-42683) and the same
is hereby incorporated herein by this reference.
S-2
CONSENT OF INDEPENDENT AUDITORS
We consent to the reference to our firm under the caption
"Experts" and to the use of our report dated November 10, 1995 in
this Post-Effective Amendment to the Registration Statement and
related Prospectus of Oppenheimer Global Growth & Treasury
Securities Trust dated December 20, 1995.
ERNST & YOUNG
Chicago, Illinois
December 19, 1995
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from Post
Effective Amendment to form S-6 and is qualified in its entirety by reference to
such Post Effective Amendment to form S-6.
</LEGEND>
<SERIES>
<NUMBER> 001
<NAME> OPPENHEIMER GLOBAL G&T
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> OTHER
<FISCAL-YEAR-END> AUG-31-1995
<PERIOD-START> SEP-22-1994
<PERIOD-END> AUG-31-1995
<INVESTMENTS-AT-COST> 9,137,546
<INVESTMENTS-AT-VALUE> 9,724,913
<RECEIVABLES> 0
<ASSETS-OTHER> 142
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 9,725,055
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 6,245
<TOTAL-LIABILITIES> 6,245
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 9,137,546
<SHARES-COMMON-STOCK> 985,000
<SHARES-COMMON-PRIOR> 50,000
<ACCUMULATED-NII-CURRENT> (6,103)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 587,367
<NET-ASSETS> 9,718,810
<DIVIDEND-INCOME> 273,531
<INTEREST-INCOME> 239,515
<OTHER-INCOME> 0
<EXPENSES-NET> 11,842
<NET-INVESTMENT-INCOME> 501,204
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 587,367
<NET-CHANGE-FROM-OPS> 1,088,571
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (267,792)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 935,000
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 9,260,935
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
