UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-6001
Oppenheimer Global Opportunities Fund
(Exact name of registrant as specified in charter)
6803 South Tucson Way, Centennial, Colorado 80112-3924
(Address of principal executive offices)
(Zip code)
Robert G. Zack, Esq.
OppenheimerFunds, Inc.
498 Seventh Avenue, New York, New York 10018
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(Name and address of agent for service)
Registrant's telephone number, including area code: (303) 768-3200
--------------
Date of fiscal year end: September 30
Date of reporting period: October 1, 2002 - September 30, 2003
ITEM 1. REPORTS TO STOCKHOLDERS.
FUND PERFORMANCE DISCUSSION
- --------------------------------------------------------------------------------
How has the Fund performed? Below is a discussion by OppenheimerFunds, Inc., of
the Fund's performance during its fiscal year ended September 30, 2003, followed
by a graphical comparison of the Fund's performance to an appropriate
broad-based market index.
Management's Discussion of Fund Performance. Oppenheimer Global Opportunities
Fund Class A shares (without sales charge) returned 48.34% for the fiscal year
ended September 30, 2003. This compares to a one-year total return of 26.16% for
its benchmark index, the Morgan Stanley Capital International (MSCI) World
Index. The Fund's portfolio manager considers the effect of worldwide growth
trends, such as mass affluence, new technologies, corporate restructuring and
aging, and seeks to identify well-managed, reasonably valued growth companies,
researched on a company by company basis.
During the period, the Fund profited from its heavy weighting in domestic
growth stocks, particularly its exposure to the information technology and
consumer discretionary sectors. As the Fund's two largest sector weightings,
these areas led in overall performance given their attractive valuations and
high sensitivity to an improving economy. Among these top performers, chipmaker,
National Semiconductor Corp. eliminated unprofitable units, enabling it to focus
on its broad product line of higher-margin analog chips.
Additional contributors to the Fund's strong performance included drug
delivery system developer, Nektar Therapeutics, which advanced on reports that
clinical data for its inhaled insulin product could help the treatment win
regulatory approval. Sirius Satellite Radio, Inc. also gained, having positioned
itself for robust subscriber growth through factory install programs with
leading automakers. Elsewhere, German performance car manufacturer Porsche AG's
significantly improved on the successful launch of its Cayenne sport utility
vehicle.
Conversely, financial and health care stocks worked against Fund performance.
Several financial holdings, particularly in the brokerage industry, came under
intense regulatory scrutiny.
Insurance stocks faced numerous obstacles ranging from asbestos liability to
weak investment performance. Health care stocks in the pharmaceutical and
biotechnology industries performed poorly due to the threat of
government-imposed pricing pressures in the United States. Alexion
Pharmaceuticals, Inc., plummeted after its experimental cardiac drug fell short
of key goals in a late-stage clinical trial. Japanese drug companies were
especially hard hit.
The Fund's portfolio manager selects the Fund's portfolio by individual stock
selection rather than following predetermined target allocations. The Fund's
holdings, allocations, management, and strategies are subject to change.
5 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
FUND PERFORMANCE DISCUSSION
- --------------------------------------------------------------------------------
Comparing the Fund's Performance to the Market. The graphs that follow show the
performance of a hypothetical $10,000 investment in each share class of the Fund
held until September 30, 2003. In the case of Class A shares, performance is
measured from a ten-year period. In the case of Class B shares, performance is
measured from inception of the Class on October 10, 1995. In the case of Class C
shares, performance is measured from inception of the Class on December 1, 1993.
In the case of Class N shares, performance is measured from inception of the
Class on March 1, 2001. In the case of Class Y shares, performance is measured
from inception of the Class on February 1, 2001. The Fund's performance reflects
the deduction of the maximum initial sales charge on Class A shares, the
applicable contingent deferred sales charge on Class B, Class C and Class N
shares, and reinvestments of all dividends and capital gains distributions.
The Fund's performance is compared to Morgan Stanley Capital International
(MSCI) World Index, an unmanaged index of issuers listed on the stock exchanges
of 20 foreign countries and the United States. It is widely recognized as a
measure of global stock market performance.
Index performance reflects the reinvestment of dividends but does not
consider the effect of capital gains or transaction costs, and none of the data
in the graphs that follow shows the effect of taxes. The Fund's performance
reflects the effects of Fund business and operating expenses. While the index
comparison may be useful to provide a benchmark for the Fund's performance, it
must be noted that the Fund's investments are not limited to the securities or
countries in the index.
6 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
Class A Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Global Opportunities Fund (Class A)
Morgan Stanley Capital International (MSCI) World Index
[LINE CHART]
Value of
Investment
Date in Fund MSCI World Index
09/30/1993 $ 9,425 $10,000
12/31/1993 10,708 10,174
03/31/1994 10,299 10,248
06/30/1994 10,201 10,568
09/30/1994 10,741 10,807
12/31/1994 10,205 10,742
03/31/1995 10,327 11,258
06/30/1995 11,003 11,754
09/30/1995 11,539 12,425
12/31/1995 11,978 13,031
03/31/1996 12,323 13,577
06/30/1996 12,703 13,986
09/30/1996 13,071 14,189
12/31/1996 13,813 14,855
03/31/1997 14,752 14,914
06/30/1997 16,015 17,176
09/30/1997 18,147 17,684
12/31/1997 17,715 17,266
03/31/1998 19,657 19,756
06/30/1998 20,066 20,176
09/30/1998 16,556 17,774
12/31/1998 19,987 21,547
03/31/1999 20,890 22,335
06/30/1999 25,986 23,419
09/30/1999 28,154 23,091
12/31/1999 37,290 27,007
03/31/2000 43,360 27,303
06/30/2000 41,772 26,355
09/30/2000 38,442 25,049
12/31/2000 35,714 23,518
03/31/2001 30,457 20,514
06/30/2001 31,620 21,083
09/30/2001 23,721 18,067
12/31/2001 29,887 19,632
03/31/2002 29,768 19,754
06/30/2002 26,659 17,943
09/30/2002 19,925 14,660
12/31/2002 21,822 15,796
03/31/2003 19,825 15,015
06/30/2003 25,602 17,605
09/30/2003 29,556 18,474
Average Annual Total Returns of Class A Shares of the Fund at 9/30/03*
1-Year 39.81% 5-Year 10.97% 10-Year 11.45%
Class B Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Global Opportunities Fund (Class B)
Morgan Stanley Capital International (MSCI) World Index
[LINE CHART]
Value of
Investment
Date in Fund MSCI World Index
10/10/1995 $10,000 $10,000
12/31/1995 10,539 10,488
03/31/1996 10,825 10,927
06/30/1996 11,136 11,257
09/30/1996 11,433 11,420
12/31/1996 12,053 11,956
03/31/1997 12,855 12,003
06/30/1997 13,927 13,824
09/30/1997 15,742 14,233
12/31/1997 15,346 13,896
03/31/1998 16,994 15,900
06/30/1998 17,321 16,238
09/30/1998 14,258 14,305
12/31/1998 17,185 17,341
03/31/1999 17,924 17,975
06/30/1999 22,249 18,849
09/30/1999 24,069 18,584
12/31/1999 31,815 21,736
03/31/2000 36,929 21,974
06/30/2000 35,507 21,211
09/30/2000 32,609 20,160
12/31/2000 30,236 18,928
03/31/2001 25,741 16,510
06/30/2001 26,672 16,968
09/30/2001 19,976 14,541
12/31/2001 25,162 15,801
03/31/2002 25,061 15,899
06/30/2002 22,444 14,441
09/30/2002 16,774 11,799
12/31/2002 18,372 12,713
03/31/2003 16,690 12,085
06/30/2003 21,554 14,169
09/30/2003 24,883 14,869
Average Annual Total Returns of Class B Shares of the Fund at 9/30/03*
1-Year 42.15% 5-Year 11.18% Since Inception 12.11%
*See Notes on page 10 for further details.
The performance information for the MSCI World Index in the graphs begins on
9/30/93 for Class A, 9/30/95 for Class B, 11/30/93 for Class C, 2/28/01 for
Class N and 1/31/01 for Class Y.
Past performance cannot guarantee future results. Graphs are not drawn to same
scale.
7 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
FUND PERFORMANCE DISCUSSION
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Class C Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Global Opportunities Fund (Class C)
Morgan Stanley Capital International (MSCI) World Index
[LINE CHART]
Value of
Investment
Date in Fund MSCI World Index
12/01/1993 $10,000 $10,000
12/31/1993 10,766 10,491
03/31/1994 10,341 10,568
06/30/1994 10,221 10,898
09/30/1994 10,741 11,144
12/31/1994 10,189 11,077
03/31/1995 10,287 11,610
06/30/1995 10,936 12,120
09/30/1995 11,451 12,813
12/31/1995 11,865 13,438
03/31/1996 12,189 14,001
06/30/1996 12,536 14,423
09/30/1996 12,877 14,632
12/31/1996 13,570 15,319
03/31/1997 14,480 15,379
06/30/1997 15,688 17,712
09/30/1997 17,736 18,236
12/31/1997 17,286 17,804
03/31/1998 19,140 20,373
06/30/1998 19,506 20,805
09/30/1998 16,064 18,329
12/31/1998 19,360 22,219
03/31/1999 20,191 23,031
06/30/1999 25,064 24,150
09/30/1999 27,113 23,812
12/31/1999 35,842 27,849
03/31/2000 41,611 28,155
06/30/2000 39,999 27,177
09/30/2000 36,736 25,831
12/31/2000 34,064 24,252
03/31/2001 29,004 21,154
06/30/2001 30,052 21,740
09/30/2001 22,501 18,631
12/31/2001 28,288 20,245
03/31/2002 28,134 20,371
06/30/2002 25,155 18,503
09/30/2002 18,761 15,117
12/31/2002 20,510 16,289
03/31/2003 18,595 15,484
06/30/2003 23,967 18,154
09/30/2003 27,617 19,051
Average Annual Total Returns of Class C Shares of the Fund at 9/30/03*
1-Year 46.20% 5-Year 11.45% Since Inception 10.89%
Class N Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Global Opportunities Fund (Class N)
Morgan Stanley Capital International (MSCI) World Index
[LINE CHART]
Value of
Investment
Date in Fund MSCI World Index
03/01/2001 $10,000 $10,000
03/31/2001 9,150 9,345
06/30/2001 9,492 9,604
09/30/2001 7,122 8,231
12/31/2001 8,966 8,944
03/31/2002 8,926 8,999
06/30/2002 7,988 8,174
09/30/2002 5,969 6,678
12/31/2002 6,533 7,196
03/31/2003 5,934 6,840
06/30/2003 7,658 8,020
09/30/2003 8,831 8,416
Average Annual Total Returns of Class N Shares of the Fund at 9/30/03*
1-Year 46.94% Since Inception -4.70%
*See Notes on page 10 for further details.
8 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
Class Y Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Global Opportunities Fund (Class Y)
Morgan Stanley Capital International (MSCI) World Index
[LINE CHART]
Value of
Investment
Date in Fund MSCI World Index
02/01/2001 $10,000 $10,000
03/31/2001 8,120 8,556
06/30/2001 8,437 8,794
09/30/2001 6,335 7,536
12/31/2001 7,988 8,189
03/31/2002 7,966 8,240
06/30/2002 7,144 7,484
09/30/2002 5,348 6,115
12/31/2002 5,865 6,589
03/31/2003 5,334 6,263
06/30/2003 6,898 7,343
09/30/2003 7,971 7,706
Average Annual Total Returns of Class Y Shares of the Fund at 9/30/03*
1-Year 49.07% Since Inception -8.16%
The performance information for the MSCI World Index in the graphs begins on
9/30/93 for Class A, 9/30/95 for Class B, 11/30/93 for Class C, 2/28/01 for
Class N and 1/31/01 for Class Y.
Past performance cannot guarantee future results. Graphs are not drawn to same
scale.
9 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
NOTES
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In reviewing performance and rankings, please remember that past performance
cannot guarantee future results. Investment return and principal value of an
investment in the Fund will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than the original cost. Because of ongoing
market volatility, the Fund's performance may be subject to substantial
fluctuations, and current performance may be more or less than the results
shown. For updates on the Fund's performance, visit our website at
www.oppenheimerfunds.com.
Total returns and the ending account values in the graph includes changes in
share price and reinvestment of dividends and capital gains distributions in a
hypothetical investment for the periods shown. The Fund's total returns shown do
not reflect the deduction of income taxes on an individual's investment. Taxes
may reduce your actual investment returns on income or gains paid by the Fund or
any gains you may realize if you sell your shares. For more complete information
about the Fund, including charges, expenses and risks, please refer to the
prospectus. To obtain a copy, call your financial advisor, call OppenheimerFunds
Distributor, Inc. at 1.800.CALL OPP (1.800.225.5677) or visit the
OppenheimerFunds website at www.oppenheimerfunds.com. Read the prospectus
carefully before you invest or send money.
Class A shares of the Fund were first publicly offered on 10/22/90. Unless
otherwise noted, Class A returns include the maximum initial sales charge of
5.75%.
Class B shares of the Fund were first publicly offered on 10/10/95. Unless
otherwise noted, Class B returns include the applicable contingent deferred
sales charge of 5% (1-year) and 2% (5-year). Because Class B shares convert to
Class A shares 72 months after purchase, the "since inception" return for Class
B uses Class A performance for the period after conversion. Class B shares are
subject to an annual 0.75% asset-based sales charge.
Class C shares of the Fund were first publicly offered on 12/1/93. Unless
otherwise noted, Class C returns include the contingent deferred sales charge of
1% for the one-year period. Class C shares are subject to an annual 0.75%
asset-based sales charge.
Class N shares of the Fund were first publicly offered on 3/1/01. Class N shares
are offered only through retirement plans. Unless otherwise noted, Class N
returns include the contingent deferred sales charge of 1% for the one-year
period. Class N shares are subject to an annual 0.25% asset-based sales charge.
Class Y shares of the Fund were first publicly offered on 2/1/01. Class Y shares
are offered only to certain institutional investors under special agreement with
the Distributor.
An explanation of the calculation of performance is in the Fund's Statement of
Additional Information.
10 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
STATEMENT OF INVESTMENTS September 30, 2003
- --------------------------------------------------------------------------------
Market Value
Shares See Note 1
- --------------------------------------------------------------------------
Common Stocks--92.3%
- --------------------------------------------------------------------------
Consumer Discretionary--15.3%
- --------------------------------------------------------------------------
Automobiles--2.9%
- --------------------------------------------------------------------------
Bayerische Motoren
Werke AG (BMW) 600,000 $ 22,673,783
- --------------------------------------------------------------------------
Porsche AG, Preferred 100,000 42,089,156
---------------
64,762,939
- --------------------------------------------------------------------------
Distributors--0.3%
Medion AG 159,501 6,250,381
- --------------------------------------------------------------------------
Hotels, Restaurants & Leisure--0.6%
Sodexho Alliance SA 500,000 13,613,586
- --------------------------------------------------------------------------
Internet & Catalog Retail--0.9%
Amazon.com, Inc. 1 400,000 19,344,000
- --------------------------------------------------------------------------
Media--8.4%
Pixar, Inc. 1 200,000 13,312,000
- --------------------------------------------------------------------------
Sirius Satellite
Radio, Inc. 1,2 76,116,475 139,293,149
- --------------------------------------------------------------------------
Toei Animation
Co. Ltd. 200,000 11,099,673
- --------------------------------------------------------------------------
Vivendi Universal SA 1 500,000 8,850,578
- --------------------------------------------------------------------------
Wiley (John) & Sons,
Inc., Cl. A 500,000 12,995,000
---------------
185,550,400
- --------------------------------------------------------------------------
Specialty Retail--1.0%
Hennes & Mauritz AB
(H&M), B Shares 1,000,000 22,687,903
- --------------------------------------------------------------------------
Textiles, Apparel & Luxury Goods--1.2%
Luxottica Group SpA 1,000,000 14,242,443
- --------------------------------------------------------------------------
Tod's SpA 300,000 11,319,423
---------------
25,561,866
- --------------------------------------------------------------------------
Consumer Staples--3.5%
- --------------------------------------------------------------------------
Food & Staples Retailing--0.7%
Carrefour SA 300,000 15,092,564
- --------------------------------------------------------------------------
Food Products--0.9%
Delta & Pine Land Co. 330,400 7,602,504
- --------------------------------------------------------------------------
Thorntons plc 2 5,397,480 11,345,521
---------------
18,948,025
- --------------------------------------------------------------------------
Household Products--0.2%
Kao Corp. 251,000 5,302,421
Market Value
Shares See Note 1
- --------------------------------------------------------------------------
Personal Products--1.7%
Gillette Co. 100,200 $ 3,204,396
- --------------------------------------------------------------------------
Shiseido Co. Ltd. 3,000,000 34,212,058
---------------
37,416,454
- --------------------------------------------------------------------------
Energy--1.1%
- --------------------------------------------------------------------------
Oil & Gas--1.1%
Burlington
Resources, Inc. 500,000 24,100,000
- --------------------------------------------------------------------------
Financials--16.7%
- --------------------------------------------------------------------------
Capital Markets--0.1%
Northern Trust Corp. 74,900 3,178,756
- --------------------------------------------------------------------------
Commercial Banks--6.3%
Anglo Irish Bank Corp. 1,000,000 10,795,376
- --------------------------------------------------------------------------
Banco Comercial
Portugues SA 4,984,595 10,390,607
- --------------------------------------------------------------------------
Cassa di Risparmio
di Firenze SpA
(Carifirenze) 10,000,000 14,754,845
- --------------------------------------------------------------------------
Mitsubishi Tokyo
Financial Group, Inc. 4,000 25,242,805
- --------------------------------------------------------------------------
Nordbanken
Holding AB 2,000,000 11,402,125
- --------------------------------------------------------------------------
Resona Holdings, Inc. 1 10,000,000 14,053,619
- --------------------------------------------------------------------------
San Paolo IMI SpA 2,000,000 19,937,091
- --------------------------------------------------------------------------
Sumitomo Mitsui
Financial Group, Inc. 4,000 16,112,429
- --------------------------------------------------------------------------
UFJ Holdings, Inc. 1 4,000 15,718,570
---------------
138,407,467
- --------------------------------------------------------------------------
Diversified Financial Services--6.5%
3i Group plc 1,026,305 10,149,626
- --------------------------------------------------------------------------
DePfa Bank plc 200,000 19,408,385
- --------------------------------------------------------------------------
LaBranche & Co., Inc. 1,000,000 14,600,000
- --------------------------------------------------------------------------
MLP AG 1 3,491,927 53,271,446
- --------------------------------------------------------------------------
SFCG Co. Ltd. 200,000 26,657,119
- --------------------------------------------------------------------------
Van der Moolen
Holding NV 1,900,000 19,758,915
---------------
143,845,491
- --------------------------------------------------------------------------
Insurance--3.0%
Aegon NV 1,000,000 11,633,852
- --------------------------------------------------------------------------
Allianz AG 200,000 17,654,574
- --------------------------------------------------------------------------
Aviva plc 3,000,000 23,276,214
- --------------------------------------------------------------------------
Axa SA 800,000 13,480,827
---------------
66,045,467
11 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
Market Value
Shares See Note 1
- --------------------------------------------------------------------------
Real Estate--0.8%
Mitsubishi Estate
Co. Ltd. 1,000,000 $ 9,443,674
- --------------------------------------------------------------------------
Solidere, GDR 3 1,409,375 7,046,875
---------------
16,490,549
- --------------------------------------------------------------------------
Health Care--14.9%
- --------------------------------------------------------------------------
Biotechnology--6.6%
Affymetrix, Inc. 1 2,000,000 41,980,000
- --------------------------------------------------------------------------
Alexion
Pharmaceuticals, Inc. 1,2 2,800,000 46,676,000
- --------------------------------------------------------------------------
Myriad Genetics, Inc. 1 1,300,000 14,768,000
- --------------------------------------------------------------------------
Neurogen Corp. 1,2 2,000,000 11,700,000
- --------------------------------------------------------------------------
Neurogen Corp. 1,2,3 200,000 1,170,000
- --------------------------------------------------------------------------
Novozymes AS,
B Shares 600,000 18,867,037
- --------------------------------------------------------------------------
Q-Med AB 1 523,475 9,677,188
---------------
144,838,225
- --------------------------------------------------------------------------
Health Care Equipment & Supplies--5.5%
Elekta AB, B Shares 1 457,350 7,331,412
- --------------------------------------------------------------------------
GN Store Nord AS 1 2,000,000 11,103,792
- --------------------------------------------------------------------------
Nektar Therapeutics 1,2 8,000,000 102,400,000
---------------
120,835,204
- --------------------------------------------------------------------------
Health Care Providers & Services--0.8%
Nicox SA 1,2 3,000,000 14,813,072
- --------------------------------------------------------------------------
Oxford Health
Plans, Inc. 1 99,700 4,118,607
---------------
18,931,679
- --------------------------------------------------------------------------
Pharmaceuticals--2.0%
Fujisawa
Pharmaceutical
Co. Ltd. 1,500,000 34,104,641
- --------------------------------------------------------------------------
Santen
Pharmaceutical
Co. Ltd. 1,000,000 11,189,187
---------------
45,293,828
- --------------------------------------------------------------------------
Industrials--1.6%
- --------------------------------------------------------------------------
Commercial Services & Supplies--0.2%
Secom Co. Ltd. 100,249 3,768,928
- --------------------------------------------------------------------------
Electrical Equipment--0.9%
Schneider Electric SA 400,000 20,728,985
- --------------------------------------------------------------------------
Industrial Conglomerates--0.5%
Siemens AG 200,000 11,911,014
Market Value
Shares See Note 1
- --------------------------------------------------------------------------
Information Technology--37.7%
- --------------------------------------------------------------------------
Communications Equipment--6.5%
Cisco Systems, Inc. 1 1,000,000 $ 19,540,000
- --------------------------------------------------------------------------
JDS Uniphase Corp. 1 10,000,000 36,000,000
- --------------------------------------------------------------------------
QUALCOMM, Inc. 1,000,000 41,640,000
- --------------------------------------------------------------------------
Telefonaktiebolaget
LM Ericsson AB,
B Shares 1 15,000,000 21,912,247
- --------------------------------------------------------------------------
Toyo Communication
Equipment Co. Ltd. 1,2 4,000,000 23,488,341
---------------
142,580,588
- --------------------------------------------------------------------------
Computers & Peripherals--3.4%
Logitech
International SA 1 400,000 12,448,887
- --------------------------------------------------------------------------
Toshiba Corp. 15,000,000 63,107,013
---------------
75,555,900
- --------------------------------------------------------------------------
Electronic Equipment & Instruments--6.7%
Brillian Corp. 1,2 1,034,875 9,324,224
- --------------------------------------------------------------------------
Coherent, Inc. 1 500,000 12,315,000
- --------------------------------------------------------------------------
Electrocomponents
plc 7,000,000 37,389,807
- --------------------------------------------------------------------------
Keyence Corp. 110,000 23,355,861
- --------------------------------------------------------------------------
Murata
Manufacturing
Co. Ltd. 1,000,000 51,559,773
- --------------------------------------------------------------------------
Tandberg ASA 1 2,295,100 13,628,976
---------------
147,573,641
- --------------------------------------------------------------------------
Internet Software & Services--0.7%
EarthLink, Inc. 1 2,000,000 16,460,000
- --------------------------------------------------------------------------
IT Services--1.1%
Iron Mountain, Inc. 1 499,300 17,924,870
- --------------------------------------------------------------------------
United Internet AG 311,322 6,130,720
---------------
24,055,590
- --------------------------------------------------------------------------
Semiconductors & Semiconductor Equipment--19.3%
Advanced Micro
Devices, Inc. 1 7,000,000 77,770,000
- --------------------------------------------------------------------------
Altera Corp. 1 1,000,000 18,900,000
- --------------------------------------------------------------------------
ARM Holdings plc 1 15,000,000 24,422,580
- --------------------------------------------------------------------------
Cree, Inc. 1 3,650,000 67,598,000
- --------------------------------------------------------------------------
National
Semiconductor Corp. 1 5,996,900 193,639,901
- --------------------------------------------------------------------------
Three-Five
Systems, Inc. 1,2 4,139,500 22,808,645
- --------------------------------------------------------------------------
12 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
Market Value
Shares See Note 1
- --------------------------------------------------------------------------
Semiconductors & Semiconductor Equipment
Continued
Xilinx, Inc. 1 700,000 $ 19,957,000
---------------
425,096,126
- --------------------------------------------------------------------------
Materials--1.5%
- --------------------------------------------------------------------------
Metals & Mining--1.5%
Goldcorp, Inc. 1,000,000 13,960,000
- --------------------------------------------------------------------------
Newmont Mining
Corp. (Holding Co.) 500,000 19,545,000
---------------
33,505,000
---------------
Total Common Stocks
(Cost $2,173,356,844) 2,037,732,977
Units
- --------------------------------------------------------------------------
Rights, Warrants and Certificates--0.0%
AXA Rts., Exp. 10/3/03 1 800,000 37,266
- --------------------------------------------------------------------------
CD Radio, Inc. Wts.,
Exp. 5/15/09 1,3 18,000 180
---------------
Total Rights, Warrants
and Certificates
(Cost $880,147) 37,446
Principal Market Value
Amount See Note 1
- --------------------------------------------------------------------------
Joint Repurchase Agreements--8.8%
Undivided interest of 17.67% in joint repurchase agreement (Principal
Amount/Market Value $1,104,177,000, with a maturity value of
$1,104,207,672) with PaineWebber, Inc., 1%, dated 9/30/03, to be
repurchased at $195,134,420 on 10/1/03, collateralized by Federal
National Mortgage Assn., 5.50%, 6/1/33--10/1/33, with a value of
$964,587,698 and Federal Home Loan Mortgage Corp., 5%, 9/1/33, with a
value of $162,660,094
(Cost $195,129,000) $195,129,000 $ 195,129,000
- --------------------------------------------------------------------------
Total Investments,
at Value
(Cost $2,369,365,991) 101.1% 2,232,899,423
- --------------------------------------------------------------------------
Liabilities
in Excess of
Other Assets (1.1) (24,907,030)
--------------------------------------
Net Assets 100.0% $ 2,207,992,393
======================================
Footnotes to Statement of Investments
1. Non-income producing security.
2. Affiliated company. Represents ownership of at least 5% of the voting
securities of the issuer, and is or was an affiliate, as defined in the
Investment Company Act of 1940, at or during the period ended September 30,
2003. The aggregate fair value of securities of affiliated companies held by the
Fund as of September 30, 2003 amounts to $383,018,952. Transactions during the
period in which the issuer was an affiliate are as follows:
Shares/ Shares/ Unrealized Dividend/
Principal Gross Gross Principal Appreciation Interest Realized
Sept. 30, 2002 Additions Reductions Sept. 30, 2003 (Depreciation) Income Gain (Loss)
- ------------------------------------------------------------------------------------------------------------------------------------
Stocks and/or Warrants
Alexion Pharmaceuticals, Inc. 2,220,000 580,000 -- 2,800,000 $ (25,820,425) $ -- $ --
Brillian Corp. -- 1,034,875*** -- 1,034,875 (31,926,681) -- --
Coherent, Inc. * 3,100,000 -- 2,600,000 500,000 -- -- (13,545,584)
Halma plc 20,000,000 -- 20,000,000 -- -- 1,025,139 5,158,680
Nektar Therapeutics,
formerly Inhale Therapeutic
Systems, Inc. 8,000,000 -- -- 8,000,000 (90,590,632) -- --
Neurogen Corp. 2,000,000 -- -- 2,000,000 (15,035,884) -- --
Neurogen Corp. 200,000 -- -- 200,000 (3,830,000) -- --
Nicox SA 74,738 2,925,262 -- 3,000,000 (5,042,831) -- --
SanDisk Corp. 4,000,000 -- 4,000,000 -- -- -- 9,794,029
Sirius Satellite Radio, Inc. 8,500,000 73,117,316** 5,500,841 76,116,475 69,026,712 -- (116,647,637)
Thorntons plc 5,397,480 -- -- 5,397,480 (5,205,622) 575,543 --
Three-Five Systems, Inc. 3,200,000 965,200 25,700 4,139,500 (117,302,967) -- (1,903,664)
Toyo Communication
Equipment Co. Ltd. 4,000,000 -- -- 4,000,000 (36,408,957) -- --
XM Satellite Radio
Holdings, Inc. 7,100,000 -- 7,100,000 -- -- -- (67,255,589)
-----------------------------------------
(262,137,287) 1,600,682 (184,399,765)
-----------------------------------------
13 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
Footnotes to Statement of Investments Continued
2. Affiliated company Continued
Shares/ Shares/ Unrealized Dividend/
Principal Gross Gross Principal Appreciation Interest Realized
Sept. 30, 2002 Additions Reductions Sept. 30, 2003 (Depreciation) Income Gain (Loss)
- ------------------------------------------------------------------------------------------------------------------------------------
Bonds and Notes
Sirius Satellite
Radio, Inc.,0%/15%
Sr. Sec. Disc. Nts.,
12/1/07 $27,500,000 -- 27,500,000** -- $ -- $ -- $ --
Sirius Satellite
Radio, Inc., 14.50%
Sr. Sec. Nts.,
5/15/09 30,000,000 -- 30,000,000** -- -- -- --
----------------------------------------------
$(262,137,287) $1,600,682 $(184,399,765)
==============================================
*No longer an affiliate as of September 30, 2003.
**Result of a reorganization from defaulted bonds.
***Result of a spinoff.
3. Identifies issues considered to be illiquid or restricted. See Note 6 of
Notes to Financial Statements.
Distribution of investments representing geographic holdings, as a percentage of
total investments at value, is as follows:
Geographic Holdings Market Value Percent
- --------------------------------------------------------------------------
United States $1,228,994,232 54.9%
Japan 368,416,112 16.5
Germany 159,981,074 7.2
Great Britain 106,583,748 4.8
France 86,616,878 3.9
Sweden 73,010,875 3.3
Italy 60,253,802 2.7
The Netherlands 31,392,767 1.4
Ireland 30,203,761 1.4
Denmark 29,970,829 1.3
Canada 13,960,000 0.6
Norway 13,628,976 0.6
Switzerland 12,448,887 0.6
Portugal 10,390,607 0.5
Lebanon 7,046,875 0.3
-------------------------------
Total $2,232,899,423 100.0%
===============================
See accompanying Notes to Financial Statements.
14 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
STATEMENT OF ASSETS AND LIABILITIES September 30, 2003
- --------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------
Assets
Investments, at value--see accompanying statement:
Unaffiliated companies (cost $1,724,209,752) $1,849,880,471
Affiliated companies (cost $645,156,239) 383,018,952
---------------
2,232,899,423
- -----------------------------------------------------------------------------------------------------------
Cash 1,207,623
- -----------------------------------------------------------------------------------------------------------
Cash--foreign currencies (cost $8,046,262) 8,061,405
- -----------------------------------------------------------------------------------------------------------
Unrealized appreciation on foreign currency contracts 76,599
- -----------------------------------------------------------------------------------------------------------
Receivables and other assets:
Investments sold 42,897,490
Shares of beneficial interest sold 3,151,426
Interest and dividends 2,338,749
Other 3,475
---------------
Total assets 2,290,636,190
- -----------------------------------------------------------------------------------------------------------
Liabilities
Unrealized depreciation on foreign currency contracts 36,749
- -----------------------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 75,722,786
Shares of beneficial interest redeemed 3,593,378
Distribution and service plan fees 1,299,718
Shareholder reports 903,371
Transfer and shareholder servicing agent fees 594,533
Trustees' compensation 459,838
Other 33,424
---------------
Total liabilities 82,643,797
- -----------------------------------------------------------------------------------------------------------
Net Assets $2,207,992,393
===============
- -----------------------------------------------------------------------------------------------------------
Composition of Net Assets
Par value of shares of beneficial interest $ 101,339
- -----------------------------------------------------------------------------------------------------------
Additional paid-in capital 2,851,599,891
- -----------------------------------------------------------------------------------------------------------
Overdistributed net investment income (11,766,828)
- -----------------------------------------------------------------------------------------------------------
Accumulated net realized loss on investments and foreign currency transactions (495,468,953)
- -----------------------------------------------------------------------------------------------------------
Net unrealized depreciation on investments and translation of assets and liabilities
denominated in foreign currencies (136,473,056)
---------------
Net Assets $2,207,992,393
===============
15 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
STATEMENT OF ASSETS AND LIABILITIES Continued
- --------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------
Net Asset Value Per Share
- ----------------------------------------------------------------------------------------------
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$1,185,092,144 and 53,752,549 shares of beneficial interest outstanding) $22.05
Maximum offering price per share (net asset value plus sales charge of
5.75% of offering price) $23.40
- ----------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $659,224,079
and 30,688,301 shares of beneficial interest outstanding) $21.48
- ----------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $332,256,650
and 15,462,535 shares of beneficial interest outstanding) $21.49
- ----------------------------------------------------------------------------------------------
Class N Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $22,900,063
and 1,049,160 shares of beneficial interest outstanding) $21.83
- ----------------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based on net
assets of $8,519,457 and 386,268 shares of beneficial interest outstanding) $22.06
See accompanying Notes to Financial Statements.
16 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
STATEMENT OF OPERATIONS For the Year Ended September 30, 2003
- --------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------
Investment Income
Dividends:
Unaffiliated companies (net of foreign withholding taxes of $1,680,581) $ 13,910,925
Affiliated companies (net of foreign withholding taxes of $177,854) 1,600,682
- -------------------------------------------------------------------------------------------------------------
Interest 922,865
---------------
Total investment income 16,434,472
- -------------------------------------------------------------------------------------------------------------
Expenses
Management fees 13,352,468
- -------------------------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 2,359,276
Class B 5,636,549
Class C 2,758,083
Class N 77,716
- -------------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 2,874,540
Class B 2,331,790
Class C 905,056
Class N 59,799
Class Y 4,683
- -------------------------------------------------------------------------------------------------------------
Shareholder reports 1,205,283
- -------------------------------------------------------------------------------------------------------------
Custodian fees and expenses 144,947
- -------------------------------------------------------------------------------------------------------------
Trustees' compensation 113,230
- -------------------------------------------------------------------------------------------------------------
Other 63,728
---------------
Total expenses 31,887,148
Less reduction to custodian expenses (4,405)
Less voluntary waiver of transfer and shareholder servicing agent fees--Class A (4,389)
Less voluntary waiver of transfer and shareholder servicing agent fees--Class B (535,251)
Less voluntary waiver of transfer and shareholder servicing agent fees--Class N (8,817)
---------------
Net expenses 31,334,286
- -------------------------------------------------------------------------------------------------------------
Net Investment Loss (14,899,814)
- -------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments:
Unaffiliated companies (net of foreign capital gains tax of $502,390) (182,656,410)
Affiliated companies (184,399,765)
Foreign currency transactions 36,791,884
Net increase from payments by affiliates 15,243
---------------
Net realized loss (330,249,048)
- -------------------------------------------------------------------------------------------------------------
Net change in unrealized depreciation on:
Investments 996,135,313
Translation of assets and liabilities denominated in foreign currencies 69,949,450
---------------
Net change in unrealized depreciation 1,066,084,763
- -------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations $ 720,935,901
===============
See accompanying Notes to Financial Statements.
17 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
Year Ended September 30, 2003 2002
- --------------------------------------------------------------------------------------------------------------
Operations
Net investment loss $ (14,899,814) $ (12,288,255)
- --------------------------------------------------------------------------------------------------------------
Net realized loss (330,249,048) (49,321,729)
- --------------------------------------------------------------------------------------------------------------
Net change in unrealized depreciation 1,066,084,763 (270,803,681)
- --------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations 720,935,901 (332,413,665)
- --------------------------------------------------------------------------------------------------------------
Dividends and/or Distributions to Shareholders
Dividends from net investment income:
Class A (11,724,633) (1,112,438)
Class B (1,829,181) --
Class C (1,066,122) --
Class N (163,722) (20,494)
Class Y (90,153) (29,272)
- --------------------------------------------------------------------------------------------------------------
Tax return of capital:
Class A (1,191,522) --
Class B (697,308) --
Class C (341,246) --
Class N (19,258) --
Class Y (7,100) --
- --------------------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A -- (1,125,488)
Class B -- (721,322)
Class C -- (338,744)
Class N -- (4,116)
Class Y -- (4,486)
- --------------------------------------------------------------------------------------------------------------
Beneficial Interest Transactions
Net increase (decrease) in net assets resulting from beneficial interest
transactions:
Class A (52,577,512) (22,763,208)
Class B (80,332,764) (46,784,493)
Class C (27,020,179) (12,049,522)
Class N 6,106,633 12,116,547
Class Y 2,118,152 908,586
- --------------------------------------------------------------------------------------------------------------
Net Assets
Total increase (decrease) 552,099,986 (404,342,115)
- --------------------------------------------------------------------------------------------------------------
Beginning of period 1,655,892,407 2,060,234,522
----------------------------------------
End of period [including undistributed (overdistributed) net
investment income of $(11,766,828) and $13,965,163, respectively] $2,207,992,393 $1,655,892,407
========================================
See accompanying Notes to Financial Statements.
18 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Class A Year Ended September 30, 2003 2002 2001 2000 1999
- -----------------------------------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $ 15.06 $ 17.96 $ 30.02 $ 23.37 $ 16.03
- -----------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.07) (.03) .08 .11 .41
Net realized and unrealized gain (loss) 7.29 (2.83) (11.28) 8.19 9.64
------------------------------------------------------------------
Total from investment operations 7.22 (2.86) (11.20) 8.30 10.05
- -----------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.21) (.02) (.05) (.33) (.15)
Tax return of capital (.02) -- -- -- --
Distributions from net realized gain -- (.02) (.81) (1.32) (2.56)
------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.23) (.04) (.86) (1.65) (2.71)
- -----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $22.05 $15.06 $17.96 $30.02 $23.37
==================================================================
- -----------------------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 1 48.34% (16.01)% (38.30)% 36.54% 70.06%
- -----------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $1,185,092 $ 865,444 $1,061,527 $1,566,609 $482,481
- -----------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 963,783 $1,209,791 $1,444,832 $1,159,085 $309,772
- -----------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income (loss) (0.48)% (0.17)% 0.38% 0.72% 2.51%
Total expenses 1.36% 3,4 1.40% 3,4 1.22% 3 1.20% 3 1.33% 3
- -----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 61% 39% 53% 48% 98%
<FN>
1. Assumes an 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. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the redemption of Fund shares.
2. Annualized for periods of less than one full year.
3. Reduction to custodian expenses less than 0.01%.
4. Voluntary waiver of transfer agent fees less than 0.01%.
See accompanying Notes to Financial Statements.
</FN>
19 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
FINANCIAL highlights Continued
- --------------------------------------------------------------------------------
Class B Year Ended September 30, 2003 2002 2001 2000 1999
- -----------------------------------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $ 14.66 $ 17.60 $ 29.59 $ 23.15 $ 15.95
- -----------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.26) (.20) (.08) (.02) .29
Net realized and unrealized gain (loss) 7.15 (2.72) (11.10) 8.02 9.55
------------------------------------------------------------------
Total from investment operations 6.89 (2.92) (11.18) 8.00 9.84
- -----------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.05) -- -- (.24) (.08)
Tax return of capital (.02) -- -- -- --
Distributions from net realized gain -- (.02) (.81) (1.32) (2.56)
------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.07) (.02) (.81) (1.56) (2.64)
- -----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $21.48 $14.66 $17.60 $29.59 $23.15
==================================================================
- -----------------------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 1 47.15% (16.63)% (38.74)% 35.48% 68.80%
- -----------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $659,224 $522,255 $674,707 $1,013,614 $235,032
- -----------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $564,030 $747,894 $922,355 $ 711,304 $134,974
- -----------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income (loss) (1.28)% (0.92)% (0.37)% (0.05)% 1.76%
Total expenses 2.23% 2.16% 1.97% 1.97% 2.08%
Expenses after expense reimbursement or fee
waiver and reduction to custodian expenses 2.14% N/A 3,4 N/A 3 N/A 3 N/A 3
- -----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 61% 39% 53% 48% 98%
<FN>
1. Assumes an 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. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the redemption of Fund shares.
2. Annualized for periods of less than one full year.
3. Reduction to custodian expenses less than 0.01%.
4. Voluntary waiver of transfer agent fees less than 0.01%.
See accompanying Notes to Financial Statements.
</FN>
20 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
Class C Year Ended September 30, 2003 2002 2001 2000 1999
- -----------------------------------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $ 14.67 $ 17.61 $ 29.61 $ 23.15 $ 15.95
- -----------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.24) (.19) (.09) (.07) .29
Net realized and unrealized gain (loss) 7.14 (2.73) (11.10) 8.07 9.55
------------------------------------------------------------------
Total from investment operations 6.90 (2.92) (11.19) 8.00 9.84
- -----------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.06) -- -- (.22) (.08)
Tax return of capital (.02) -- -- -- --
Distributions from net realized gain -- (.02) (.81) (1.32) (2.56)
------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.08) (.02) (.81) (1.54) (2.64)
- -----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $21.49 $14.67 $17.61 $29.61 $23.15
==================================================================
- -----------------------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 1 47.20% (16.62)% (38.75)% 35.49% 68.79%
- -----------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $332,257 $253,560 $318,082 $494,774 $157,362
- -----------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $276,023 $356,480 $446,283 $377,158 $104,560
- -----------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income (loss) (1.26)% (0.90)% (0.36)% (0.05)% 1.76%
Total expenses 2.15% 3 2.13% 3,4 1.97% 3 1.98% 3 2.08% 3
- -----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 61% 39% 53% 48% 98%
<FN>
1. Assumes an 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. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the redemption of Fund shares.
2. Annualized for periods of less than one full year.
3. Reduction to custodian expenses less than 0.01%.
4. Voluntary waiver of transfer agent fees less than 0.01%.
See accompanying Notes to Financial Statements.
</FN>
21 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
Class N Year Ended September 30, 2003 2002 2001 1
- ---------------------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $ 14.96 $ 17.94 $ 25.19
- ---------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.04) (.06) (.06)
Net realized and unrealized gain (loss) 7.15 (2.81) (7.19)
--------------------------------------
Total from investment operations 7.11 (2.87) (7.25)
- ---------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.22) (.09) --
Tax return of capital (.02) -- --
Distributions from net realized gain -- (.02) --
--------------------------------------
Total dividends and/or distributions
to shareholders (.24) (.11) --
- ---------------------------------------------------------------------------------------------------------------
Net asset value, end of period $21.83 $14.96 $17.94
======================================
- ---------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 2 47.94% (16.19)% (28.78)%
- ---------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $22,900 $10,490 $1,704
- ---------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $15,577 $ 8,179 $ 407
- ---------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment loss (0.68)% (1.33)% (2.44)%
Total expenses 1.70% 1.61% 1.58%
Expenses after expense reimbursement or fee waiver
and reduction to custodian expenses 1.64% N/A 4,5 N/A 4
- ---------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 61% 39% 53%
<FN>
1. For the period from March 1, 2001 (inception of offering) to September 30,
2001.
2. Assumes an investment on the business day before the first day of the fiscal
period (or inception of offering), with all dividends and distributions
reinvested in additional shares on the reinvestment date, and redemption at the
net asset value calculated on the last business day of the fiscal period. Sales
charges are not reflected in the total returns. Total returns are not annualized
for periods of less than one full year. Returns do not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or the redemption of
Fund shares.
3. Annualized for periods of less than one full year.
4. Reduction to custodian expenses less than 0.01%.
5. Voluntary waiver of transfer agent fees less than 0.01%.
See accompanying Notes to Financial Statements.
</FN>
22 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
Class Y Year Ended September 30, 2003 2002 2001 1
- ---------------------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $ 15.09 $ 17.99 $ 28.40
- ---------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .06 .09 (.05)
Net realized and unrealized gain (loss) 7.25 (2.85) (10.36)
--------------------------------------
Total from investment operations 7.31 (2.76) (10.41)
- ---------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.32) (.12) --
Tax return of capital (.02) -- --
Distributions from net realized gain -- (.02) --
--------------------------------------
Total dividends and/or distributions
to shareholders (.34) (.14) --
- ---------------------------------------------------------------------------------------------------------------
Net asset value, end of period $22.06 $15.09 $17.99
======================================
- ---------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 2 49.07% (15.58)% (36.66)%
- ---------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $8,519 $4,144 $4,215
- ---------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $5,743 $5,231 $1,240
- ---------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income (loss) 0.04% 0.34% (1.52)%
Total expenses 0.90% 0.88% 1.08%
Expenses after expense reimbursement or fee waiver
and reduction to custodian expenses N/A 4 N/A 4 1.06%
- ---------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 61% 39% 53%
<FN>
1. For the period from February 1, 2001 (inception of offering) to September 30,
2001.
2. Assumes an investment on the business day before the first day of the fiscal
period (or inception of offering), with all dividends and distributions
reinvested in additional shares on the reinvestment date, and redemption at the
net asset value calculated on the last business day of the fiscal period. Sales
charges are not reflected in the total returns. Total returns are not annualized
for periods of less than one full year. Returns do not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or the redemption of
Fund shares.
3. Annualized for periods of less than one full year.
4. Reduction to custodian expenses less than 0.01%.
See accompanying Notes to Financial Statements.
</FN>
23 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. Significant Accounting Policies
Oppenheimer Global Opportunities Fund (the Fund), formerly Oppenheimer Global
Growth & Income Fund, is registered under the Investment Company Act of 1940,
as amended, as an open-end management investment company. The Fund's investment
objective is to seek capital appreciation consistent with preservation of
principal, while providing current income. The Fund's investment advisor is
OppenheimerFunds, Inc. (the Manager).
The Fund offers Class A, Class B, Class C, Class N and Class Y shares. Class
A shares are sold at their offering price, which is normally net asset value
plus a front-end sales charge. Class B, Class C and Class N shares are sold
without a front-end sales charge but may be subject to a contingent deferred
sales charge (CDSC). Class N shares are sold only through retirement plans.
Retirement plans that offer Class N shares may impose charges on those
accounts. Class Y shares are sold to certain institutional investors without
either a front-end sales charge or a CDSC. All classes of shares have identical
rights and voting privileges. Earnings, net assets and net asset value per
share may differ by minor amounts due to each class having its own expenses
directly attributable to that class. Classes A, B, C and N have separate
distribution and/or service plans. No such plan has been adopted for Class Y
shares. Class B shares will automatically convert to Class A shares six years
after the date of purchase. The Fund assesses a 2% fee on the proceeds of fund
shares that are redeemed (either by selling or exchanging to another
Oppenheimer fund) within 30 days of their purchase. The fee, which is retained
by the Fund, is accounted for as an addition to paid-in capital.
The following is a summary of significant accounting policies consistently
followed by the Fund.
- --------------------------------------------------------------------------------
Securities Valuation. Securities listed or traded on National Stock Exchanges
or other domestic or foreign exchanges are valued based on the last sale price
of the security traded on that exchange prior to the time when the Fund's
assets are valued. Securities traded on NASDAQ are valued based on the closing
price provided by NASDAQ prior to the time when the Fund's assets are valued.
In the absence of a sale, the security is valued at the last sale price on the
prior trading day, if it is within the spread of the closing bid and asked
prices, and if not, at the closing bid price. Securities (including restricted
securities) for which quotations are not readily available are valued primarily
using dealer-supplied valuations, a portfolio pricing service authorized by the
Board of Trustees, or at their fair value. Fair value is determined in good
faith using consistently applied procedures under the supervision of the Board
of Trustees. Short-term "money market type" debt securities with remaining
maturities of sixty days or less are valued at amortized cost (which
approximates market value).
24 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
Foreign Currency Translation. The Fund's accounting records are maintained in
U.S. dollars. Prices of securities denominated in foreign currencies are
translated into U.S. dollars at the closing rates of exchange. Amounts related
to the purchase and sale of foreign securities and investment income are
translated at the rates of exchange prevailing on the respective dates of such
transactions.
The effect of changes in foreign currency exchange rates on investments is
separately identified from the fluctuations arising from changes in market
values of securities held and reported with all other foreign currency gains
and losses in the Fund's Statement of Operations.
- --------------------------------------------------------------------------------
Joint Repurchase Agreements. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the Fund, along with other affiliated funds
advised by the Manager, may transfer uninvested cash balances into joint
trading accounts on a daily basis. Secured by U.S. government securities, these
balances are invested in one or more repurchase agreements. Securities pledged
as collateral for repurchase agreements are held by a custodian bank until the
agreements mature. Each agreement requires that the market value of the
collateral be sufficient to cover payments of interest and principal. In the
event of default by the other party to the agreement, retention of the
collateral may be subject to legal proceedings.
- --------------------------------------------------------------------------------
Allocation of Income, Expenses, Gains and Losses. Income, expenses (other than
those attributable to a specific class), gains and losses are allocated on a
daily basis to each class of shares based upon the relative proportion of net
assets represented by such class. Operating expenses directly attributable to a
specific class are charged against the operations of that class.
- --------------------------------------------------------------------------------
Federal Taxes. The Fund intends to comply with provisions of the Internal
Revenue Code applicable to regulated investment companies and to distribute
substantially all of its investment company taxable income, including any net
realized gain on investments not offset by capital loss carryforwards, if any,
to shareholders, therefore, no federal income or excise tax provision is
required.
The tax components of capital shown in the table below represent distribution
requirements the Fund must satisfy under the income tax regulations, losses the
Fund may be able to offset against income and gains realized in future years
and unrealized appreciation or depreciation of securities and other investments
for federal income tax purposes.
25 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. Significant Accounting Policies Continued
Net Unrealized
Depreciation
Based on Cost of
Securities and
Undistributed Undistributed Accumulated Other Investments
Net Investment Long-Term Loss for Federal Income
Income Gain Carryforward 1,2 Tax Purposes
----------------------------------------------------------------------------------------
$-- $-- $346,662,880 $296,602,619
1. As of September 30, 2003, the Fund had $150,052,256 of net capital loss
carryforwards available to offset future realized capital gains, if any, and
thereby reduce future taxable gain distributions. As of September 30, 2003,
details of the capital loss carryforwards were as follows:
Expiring
-------------------------------
2010 $ 83,673,627
2011 66,378,629
------------
Total $150,052,256
============
2. As of September 30, 2003, the Fund had $176,870,781 of post-October losses
available to offset future realized capital gains, if any. Such losses, if
unutilized, will expire in 2012. Additionally, the Fund had $19,739,843 of
post-October foreign currency losses which were deferred.
Net investment income (loss) and net realized gain (loss) may differ for
financial statement and tax purposes. The character of dividends and
distributions made during the fiscal year from net investment income or net
realized gains may differ from their ultimate characterization for federal
income tax purposes. Also, due to timing of dividends and distributions, the
fiscal year in which amounts are distributed may differ from the fiscal year in
which the income or net realized gain was recorded by the Fund. Accordingly,
the following amounts have been reclassified for September 30, 2003. Net assets
of the Fund were unaffected by the reclassifications.
From To Net
Ordinary Capital Tax Return Investment
Loss Loss of Capital Loss
---------------------------------------------------------------
$6,298,068 $1,643,986 $2,256,434 $2,407,628
The tax character of distributions paid during the years ended September 30,
2003 and September 30, 2002 was as follows:
Year Ended Year Ended
September 30, 2003 September 30, 2002
-------------------------------------------------------------------
Distributions paid from:
Ordinary income $14,873,811 $3,356,360
Return of capital 2,256,434 --
----------------------------------
Total $17,130,245 $3,356,360
==================================
The aggregate cost of securities and other investments and the composition of
unrealized appreciation and depreciation of securities and other investments
for federal income tax purposes as of September 30, 2003 are noted below. The
primary difference between book and tax appreciation or depreciation of
securities and other investments, if applicable, is attributable to the tax
deferral of losses or tax realization of financial statement unrealized gain or
loss.
26 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
Federal tax cost of securities
and other investments $2,563,557,560
==============
Gross unrealized appreciation $ 313,063,182
Gross unrealized depreciation (609,665,801)
--------------
Net unrealized depreciation $ (296,602,619)
==============
Certain foreign countries impose a tax on capital gains which is accrued by the
Fund based on unrealized appreciation, if any, on affected securities. The tax
is paid when the gain is realized.
- --------------------------------------------------------------------------------
Trustees' Compensation. The Fund has adopted an unfunded retirement plan for
the Fund's independent trustees. Benefits are based on years of service and
fees paid to each trustee during the years of service. During the year ended
September 30, 2003, the Fund's projected benefit obligations were increased by
$47,409 and payments of $16,586 were made to retired trustees, resulting in an
accumulated liability of $443,335 as of September 30, 2003.
The Board of Trustees has adopted a deferred compensation plan for
independent trustees that enables trustees to elect to defer receipt of all or
a portion of the annual compensation they are entitled to receive from the
Fund. Under the plan, deferred amounts are treated as though equal dollar
amounts had been invested in shares of the Fund or are invested in other
selected Oppenheimer funds. Deferral of trustees' fees under the plan will not
affect the net assets of the Fund, and will not materially affect the Fund's
assets, liabilities or net investment income per share. Amounts will be
deferred until distributed in accordance to the Plan.
- --------------------------------------------------------------------------------
Dividends and Distributions to Shareholders. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations,
are recorded on the ex-dividend date. Income and capital gain distributions, if
any, are declared and paid annually.
- --------------------------------------------------------------------------------
Investment Income. Dividend income is recorded on the ex-dividend date or upon
ex-dividend notification in the case of certain foreign dividends where the
ex-dividend date may have passed. Non-cash dividends included in dividend
income, if any, are recorded at the fair market value of the securities
received. Interest income, which includes accretion of discount and
amortization of premium, is accrued as earned.
- --------------------------------------------------------------------------------
Expense Offset Arrangement. The reduction of custodian fees represents earnings
on cash balances maintained by the Fund.
- --------------------------------------------------------------------------------
Security Transactions. Security transactions are recorded on the trade date.
Realized gains and losses on securities sold are determined on the basis of
identified cost.
- --------------------------------------------------------------------------------
Other. The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts
of assets and liabilities and disclosure of contingent assets and liabilities
at the date of the financial statements and
27 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. Significant Accounting Policies Continued
the reported amounts of income and expenses during the reporting period. Actual
results could differ from those estimates.
- --------------------------------------------------------------------------------
2. Shares of Beneficial Interest
The Fund has authorized an unlimited number of $0.001 par value shares of
beneficial interest of each class. Transactions in shares of beneficial
interest were as follows:
Year Ended September 30, 2003 Year Ended September 30, 2002
Shares Amount Shares Amount
- --------------------------------------------------------------------------------------------------------------
Class A
Sold 11,916,203 $ 216,100,084 15,126,532 $ 310,388,550
Dividends and/or
distributions reinvested 678,297 11,870,200 92,582 2,049,812
Redeemed (16,310,647) (280,547,796) (16,862,834) (335,201,570)
---------------------------------------------------------------------------
Net decrease (3,716,147) $ (52,577,512) (1,643,720) $ (22,763,208)
===========================================================================
- ---------------------------------------------------------------------------------------------------------------
Class B
Sold 3,326,912 $ 57,161,347 6,644,755 $ 133,360,938
Dividends and/or
distributions reinvested 131,897 2,262,045 29,486 639,282
Redeemed (8,402,647) (139,756,156) (9,382,021) (180,784,713)
---------------------------------------------------------------------------
Net decrease (4,943,838) $ (80,332,764) (2,707,780) $ (46,784,493)
===========================================================================
- ---------------------------------------------------------------------------------------------------------------
Class C
Sold 2,524,449 $ 44,906,958 4,021,058 $ 80,542,780
Dividends and/or
distributions reinvested 69,591 1,194,190 13,064 283,492
Redeemed (4,413,256) (73,121,327) (4,815,409) (92,875,794)
---------------------------------------------------------------------------
Net decrease (1,819,216) $ (27,020,179) (781,287) $ (12,049,522)
===========================================================================
- ---------------------------------------------------------------------------------------------------------------
Class N
Sold 619,077 $ 11,010,107 1,032,576 $ 21,261,150
Dividends and/or
distributions reinvested 10,164 176,447 1,116 24,605
Redeemed (281,294) (5,079,921) (427,482) (9,169,208)
---------------------------------------------------------------------------
Net increase 347,947 $ 6,106,633 606,210 $ 12,116,547
===========================================================================
- ---------------------------------------------------------------------------------------------------------------
Class Y
Sold 248,140 $ 4,594,560 122,435 $ 2,563,443
Dividends and/or
distributions reinvested 5,575 97,241 1,528 33,752
Redeemed (142,045) (2,573,649) (83,698) (1,688,609)
---------------------------------------------------------------------------
Net increase 111,670 $ 2,118,152 40,265 $ 908,586
===========================================================================
28 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
3. Purchases and Sales of Securities
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations, for the year ended September 30, 2003, were
$1,076,620,367 and $1,395,054,961, respectively.
- --------------------------------------------------------------------------------
4. Fees and Other Transactions with Affiliates
Management Fees. Management fees paid to the Manager were in accordance with
the investment advisory agreement with the Fund which provides for a fee at an
annual rate of 0.80% of the first $250 million of average annual net assets of
the Fund, 0.77% of the next $250 million, 0.75% of the next $500 million, 0.69%
of the next $1 billion, 0.67% of the next $1.5 billion and 0.65% of average
annual net asset in excess of $3.5 billion.
For the year ended September 30, 2003, the Manager voluntarily reimbursed
the Fund in the amount of $15,243 for an error in the calculation of the Fund's
net asset value per share.
- --------------------------------------------------------------------------------
Transfer Agent Fees. OppenheimerFunds Services (OFS), a division of the
Manager, acts as the transfer and shareholder servicing agent for the Fund. The
Fund pays OFS a per account fee. For the year ended September 30, 2003 the Fund
paid $5,978,626 to OFS for services to the Fund.
Additionally, Class Y shares are subject to minimum fees of $5,000 for
assets of less than $10 million and $10,000 for assets of $10 million or more.
The Class Y shares are subject to the minimum fees in the event that the per
account fee does not equal or exceed the applicable minimum fees. OFS may
voluntarily waive the minimum fees.
OFS has voluntarily agreed to limit transfer and shareholder servicing agent
fees up to an annual rate of 0.35% of average annual net assets for all
classes. This undertaking may be amended or withdrawn at any time.
- --------------------------------------------------------------------------------
Distribution and Service Plan (12b-1) Fees. Under its General Distributor's
Agreement with the Manager, OppenheimerFunds Distributor, Inc. (the
Distributor) acts as the Fund's principal underwriter in the continuous public
offering of the different classes of shares of the Fund.
The compensation paid to (or retained by) the Distributor from the sale of
shares or on the redemption of shares is shown in the table below for the
period indicated.
Aggregate Class A Concessions Concessions Concessions Concessions
Front-End Front-End on Class A on Class B on Class C on Class N
Sales Charges Sales Charges Shares Shares Shares Shares
on Class A Retained by Advanced by Advanced by Advanced by Advanced by
Year Ended Shares Distributor Distributor 1 Distributor 1 Distributor 1 Distributor 1
- --------------------------------------------------------------------------------------------------------------------------
September 30, 2003 $1,513,467 $449,808 $177,000 $1,561,426 $279,291 $81,444
1. The Distributor advances concession payments to dealers for certain sales of
Class A shares and for sales of Class B, Class C and Class N shares from its
own resources at the time of sale.
29 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
4. Fees and Other Transactions with Affiliates Continued
Class A Class B Class C Class N
Contingent Contingent Contingent Contingent
Deferred Deferred Deferred Deferred
Sales Charges Sales Charges Sales Charges Sales Charges
Retained by Retained by Retained by Retained by
Year Ended Distributor Distributor Distributor Distributor
- ---------------------------------------------------------------------------------------------
September 30, 2003 $22,369 $1,815,446 $45,172 $40,014
- --------------------------------------------------------------------------------
Service Plan for Class A Shares. The Fund has adopted a Service Plan for Class
A shares. It reimburses the Distributor for a portion of its costs incurred for
services provided to accounts that hold Class A shares. Reimbursement is made
quarterly at an annual rate of up to 0.25% of the average annual net assets of
Class A shares of the Fund. For the year ended September 30, 2003, expense
under the Class A Plan totaled $2,359,276, all of which were paid by the
Distributor to recipients, which included $27,413 retained by the Distributor
and $126,041 which was paid to an affiliate of the Manager. Any unreimbursed
expenses the Distributor incurs with respect to Class A shares in any fiscal
year cannot be recovered in subsequent years.
- --------------------------------------------------------------------------------
Distribution and Service Plans for Class B, Class C and Class N Shares. The
Fund has adopted Distribution and Service Plans for Class B, Class C and Class
N shares. Under the plans, the Fund pays the Distributor an annual asset-based
sales charge of 0.75% per year on Class B shares and on Class C shares and the
Fund pays the Distributor an annual asset-based sales charge of 0.25% per year
on Class N shares. The Distributor also receives a service fee of 0.25% per
year under each plan.
Distribution fees paid to the Distributor for the year ended September 30,
2003, were as follows:
Distributor's
Distributor's Aggregate
Aggregate Uncompensated
Uncompensated Expenses as %
Total Expenses Amount Retained Expenses of Net Assets
Under Plan by Distributor Under Plan of Class
- --------------------------------------------------------------------------------
Class B Plan $5,636,549 $3,987,149 $21,823,794 3.31%
Class C Plan 2,758,083 405,003 5,561,568 1.67
Class N Plan 77,716 63,539 181,692 0.79
- --------------------------------------------------------------------------------
5. Foreign Currency Contracts
A foreign currency contract is a commitment to purchase or sell a foreign
currency at a future date, at a negotiated rate. The Fund may enter into
foreign currency contracts to settle specific purchases or sales of securities
denominated in a foreign currency and for protection from adverse exchange rate
fluctuation. Risks to the Fund include the potential inability of the
counterparty to meet the terms of the contract.
The net U.S. dollar value of foreign currency underlying all contractual
commitments held by the Fund and the resulting unrealized appreciation or
depreciation are determined using prevailing foreign currency exchange rates.
Unrealized appreciation and
30 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
depreciation on foreign currency contracts are reported in the Statement of
Assets and Liabilities as a receivable or payable and in the Statement of
Operations with the change in unrealized appreciation or depreciation.
The Fund may realize a gain or loss upon the closing or settlement of the
foreign transaction. Contracts closed or settled with the same broker are
recorded as net realized gain or loss. Such realized gains and losses are
reported with all other foreign currency gains and losses in the Statement of
Operations.
As of September 30, 2003, the Fund had outstanding foreign currency contracts
as follows:
Contract Valuation
Expiration Amount as of Unrealized Unrealized
Contract Description Dates (000s) Sept. 30, 2003 Appreciation Depreciation
- -------------------------------------------------------------------------------------------------------------
Contracts to Purchase
Danish Krone [DKK] 10/1/03-10/2/03 18,171DKK $2,849,803 $ 16,732 $ --
Euro [EUR] 10/1/03-10/2/03 5,247EUR 6,110,962 44,170 --
Japanese Yen [JPY] 10/1/03 1,077,063JPY 9,641,171 10,991 --
Swedish Krona [SEK] 10/1/03-10/2/03 3,146SEK 406,731 2,459 1,034
-----------------------
74,352 1,034
-----------------------
Contracts to Sell
Australian [AUD] 10/1/03 9,874AUD 6,683,092 -- 35,715
Norwegian Krone [NOK] 10/2/03 2,567NOK 363,834 2,247 --
-----------------------
2,247 35,715
-----------------------
Total unrealized appreciation and depreciation $76,599 $36,749
=======================
- --------------------------------------------------------------------------------
6. Illiquid or Restricted Securities
As of September 30, 2003, investments in securities included issues that are
illiquid or restricted. Restricted securities are purchased in private
placement transactions, are not registered under the Securities Act of 1933,
may have contractual restrictions on resale, and are valued under methods
approved by the Board of Trustees as reflecting fair value. A security may also
be considered illiquid if it lacks a readily available market or if its
valuation has not changed for a certain period of time. The Fund intends to
invest no more than 10% of its net assets (determined at the time of purchase
and reviewed periodically) in illiquid or restricted securities. Certain
restricted securities, eligible for resale to qualified institutional
investors, are not subject to that limitation. The aggregate value of illiquid
or restricted securities subject to this limitation as of September 30, 2003
was $8,217,055, which represents 0.37% of the Fund's net assets, of which
$1,170,000 are considered restricted. Information concerning restricted
securities is as follows:
Acquisition Valuation as of Unrealized
Security Date Cost September 30, 2003 Depreciation
- ----------------------------------------------------------------------------------------
Stocks and/or Warrants
Neurogen Corp. 6/26/00 $5,000,000 $1,170,000 $3,830,000
31 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
7. Borrowing and Lending Arrangements
The Fund entered into an "interfund borrowing and lending arrangement" with
other funds in the Oppenheimer funds complex, to allow funds to borrow for
liquidity purposes. The arrangement was initiated pursuant to exemptive relief
granted by the Securities and Exchange Commission to allow these affiliated
funds to lend money to, and borrow money from, each other, in an attempt to
reduce borrowing costs below those of bank loan facilities. Under the
arrangement the Fund may lend money to other Oppenheimer funds and may borrow
from other Oppenheimer funds at a rate set by the Fund's Board of Trustees,
based upon a recommendation by the Manager. The Fund's borrowings, if any, are
subject to asset coverage requirements under the Investment Company Act and the
provisions of the SEC order and other applicable regulations. If the Fund
borrows money, there is a risk that the loan could be called on one day's
notice, in which case the Fund might have to borrow from a bank at higher rates
if a loan were not available from another Oppenheimer fund. If the Fund lends
money to another fund, it will be subject to the risk that the other fund might
not repay the loan in a timely manner, or at all.
The Fund had no interfund borrowings or loans outstanding during the year
ended or at September 30, 2003.
32 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
INDEPENDENT AUDITORS' REPORT
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Board of Trustees and Shareholders of
Oppenheimer Global Opportunities Fund:
We have audited the accompanying statement of assets and liabilities of
Oppenheimer Global Opportunities Fund, formerly Oppenheimer Global Growth &
Income Fund, including the statement of investments, as of September 30, 2003,
and the related statement of operations for the year then ended, the statements
of changes in net assets for each of the two years in the period then ended,
and the financial highlights for each of the five years in the period then
ended. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures
included confirmation of securities owned as of September 30, 2003, by
correspondence with the custodian and broker or by other appropriate auditing
procedures where replies from brokers were not received. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Oppenheimer Global Opportunities Fund as of September 30, 2003, the results of
its operations for the year then ended, the changes in its net assets for each
of the two years in the period then ended, and the financial highlights for
each of the five years in the period then ended, in conformity with accounting
principles generally accepted in the United States of America.
KPMG LLP
Denver, Colorado
October 21, 2003
33 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
FEDERAL INCOME TAX INFORMATION Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
In early 2004, if applicable, shareholders of record will receive information
regarding all dividends and distributions paid to them by the Fund during
calendar year 2003. Regulations of the U.S. Treasury Department require the
Fund to report this information to the Internal Revenue Service.
Dividends of $0.2301, $0.0732, $0.0839, $0.2395 and $0.3433 per share were
paid to Class A, Class B, Class C, Class N and Class Y shareholders,
respectively, on December 5, 2002, all of which was designated as ordinary
income for federal income tax purposes.
A portion, if any, of the dividends paid by the Fund during the fiscal year
ended September 30, 2003, which are not designated as capital gain
distributions are eligible for lower individual income tax rates to the extent
that the Fund has received qualified dividend income as stipulated by recent
tax legislation. $17,370,042 of the Fund's fiscal year taxable income may be
eligible for the lower individual income tax rates. In early 2004, shareholders
of record will receive information regarding the percentage of distributions
that are eligible for lower individual income tax rates.
The foregoing information is presented to assist shareholders in reporting
distributions received from the Fund to the Internal Revenue Service. Because
of the complexity of the federal regulations which may affect your individual
tax return and the many variations in state and local tax regulations, we
recommend that you consult your tax advisor for specific guidance.
Portfolio Proxy Voting
Policies and Procedures Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which
the Fund votes proxies relating to securities ("portfolio proxies") held by the
Fund. A description of the Fund's Portfolio Proxy Voting Policies and
Procedures is available (i) without charge, upon request, by calling the Fund
toll-free at 1.800.225.5677, (ii) on the Fund's website at
www.oppenheimerfunds.com, and (iii) on the SEC's website at www.sec.gov. In
addition, the Fund will be required to file new Form N-PX, with its complete
proxy voting record for the 12 months ended June 30th, no later than August
31st of each year. The first such filing is due no later than August 31, 2004,
for the twelve months ended June 30, 2004. Once filed, the Fund's Form N-PX
filing will be available (i) without charge, upon request, by calling the Fund
toll-free at 1.800.225.5677, and (ii) on the SEC's website at www.sec.gov.
34 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
TRUSTEES AND OFFICERS Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Name, Position(s) Held with Principal Occupation(s) During Past 5 Years;
Fund, Length of Service, Age Other Trusteeships/Directorships Held by
Trustee; Number of Portfolios in Fund Complex
Currently Overseen by Trustee
INDEPENDENT The address of each Trustee in the chart
TRUSTEES below is 6803 S. Tucson Way, Centennial, CO
80112-3924. Each Trustee oversees 25
portfolios in the OppenheimerFunds complex
except for Mr. Galli who also serves as
trustee of 10 other Oppenheimer funds that
are not Board I funds. Each Trustee serves
for an indefinite term, until his or her
resignation, retirement, death or removal.
Clayton K. Yeutter, Of Counsel (since 1993), Hogan & Hartson (a
Chairman of the Board law firm). Other directorships: Weyerhaeuser
of Trustees (since 2003), Corp. (since 1999) and Danielson Holding
Trustee (since 1991) Corp. (since 2002); formerly a director of
Age: 72 Caterpillar, Inc. (1993-December 2002).
Robert G. Galli, A trustee or director of other Oppenheimer
Trustee (since 1996) funds. Formerly Trustee (May 2000-2002) of
Age: 70 Research Foundation of AIMR (investment
research, non-profit) and Vice Chairman
(October 1995-December 1997) of
OppenheimerFunds, Inc. (the Manager.)
Phillip A. Griffiths, A director (since 1991) of the Institute for
Trustee (since 1999) Advanced Study, Princeton, N.J., a director
Age: 64 (since 2001) of GSI Lumonics, a trustee
(since 1983) of Woodward Academy, a Senior
Advisor (since 2001) of The Andrew W. Mellon
Foundation. A member of: the National Academy
of Sciences (since 1979), American Academy of
Arts and Sciences (since 1995), American
Philosophical Society (since 1996) and
Council on Foreign Relations (since 2002).
Formerly a director of Bankers Trust New York
Corporation (1994-1999).
Joel W. Motley, Director (since 2002) Columbia Equity
Trustee (since 2002) Financial Corp. (privately-held financial
Age: 51 adviser); Managing Director (since 2002)
Carmona Motley, Inc. (privately-held
financial adviser); Formerly he held the
following positions: Managing Director
(January 1998-December 2001), Carmona Motley
Hoffman Inc. (privately-held financial
adviser); Managing Director (January
1992-December 1997), Carmona Motley & Co.
(privately-held financial adviser).
Kenneth A. Randall, A director of Dominion Resources, Inc.
Trustee (since 1980) (electric utility holding company) and Prime
Age: 76 Retail, Inc. (real estate investment trust);
formerly a director of Dominion Energy, Inc.
(electric power and oil & gas producer),
President and Chief Executive Officer of The
Conference Board, Inc. (international
economic and business research) and a
director of Lumbermens Mutual Casualty
Company, American Motorists Insurance Company
and American Manufacturers Mutual Insurance
Company.
Edward V. Regan, President, Baruch College, CUNY; a director
Trustee (since 1993) of RBAsset (real estate manager); a director
Age: 73 of OffitBank; formerly Trustee, Financial
Accounting Foundation (FASB and GASB), Senior
Fellow of Jerome Levy Economics Institute,
Bard College, Chairman of Municipal
Assistance Corporation for the City of New
York, New York State Comptroller and Trustee
of New York State and Local Retirement Fund.
Russell S. Reynolds, Jr., Chairman (since 1993) of The Directorship
Trustee (since 1989) Search Group, Inc. (corporate governance
Age: 71 consulting and executive recruiting); a life
trustee of International House (non-profit
educational organization), and a trustee
(since 1996) of the Greenwich Historical
Society.
35 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
TRUSTEES AND OFFICERS Unaudited / Continued
- --------------------------------------------------------------------------------
Donald W. Spiro, Chairman Emeritus (since January 1991) of the
Vice Chairman of the Manager. Formerly a director (January
Board of Trustees, 1969-August 1999) of the Manager.
Trustee (since 1985)
Age: 77
- --------------------------------------------------------------------------------
INTERESTED TRUSTEE The address of Mr. Murphy in the chart below
AND OFFICER is Two World Financial Center, New York, NY
10080. Mr. Murphy serves for an indefinite
term, until his resignation, death or
removal.
John V. Murphy, Chairman, Chief Executive Officer and
President and Trustee director (since June 2001) and President
(since 2001) (since September 2000) of the Manager;
Age: 54 President and a director or trustee of other
Oppenheimer funds; President and a director
(since July 2001) of Oppenheimer Acquisition
Corp. (the Manager's parent holding company)
and of Oppenheimer Partnership Holdings, Inc.
(a holding company subsidiary of the
Manager); a director (since November 2001) of
OppenheimerFunds Distributor, Inc. (a
subsidiary of the Manager); Chairman and a
director (since July 2001) of Shareholder
Services, Inc. and of Shareholder Financial
Services, Inc. (transfer agent subsidiaries
of the Manager); President and a director
(since July 2001) of OppenheimerFunds Legacy
Program (a charitable trust program
established by the Manager); a director of
the investment advisory subsidiaries of the
Manager: OFI Institutional Asset Management,
Inc. and Centennial Asset Management
Corporation (since November 2001),
HarbourView Asset Management Corporation and
OFI Private Investments, Inc. (since July
2001); President (since November 1, 2001) and
a director (since July 2001) of Oppenheimer
Real Asset Management, Inc.; a director
(since November 2001) of Trinity Investment
Management Corp. and Tremont Advisers, Inc.
(investment advisory affiliates of the
Manager); Executive Vice President (since
February 1997) of Massachusetts Mutual Life
Insurance Company (the Manager's parent
company); a director (since June 1995) of DLB
Acquisition Corporation (a holding company
that owns the shares of David L. Babson &
Company, Inc.); formerly, Chief Operating
Officer (September 2000-June 2001) of the
Manager; President and trustee (November
1999-November 2001) of MML Series Investment
Fund and MassMutual Institutional Funds
(open-end investment companies); a director
(September 1999-August 2000) of C.M. Life
Insurance Company; President, Chief Executive
Officer and director (September 1999-August
2000) of MML Bay State Life Insurance
Company; a director (June 1989-June 1998) of
Emerald Isle Bancorp and Hibernia Savings
Bank (a wholly-owned subsidiary of Emerald
Isle Bancorp). Oversees 83 portfolios in the
OppenheimerFunds complex.
- --------------------------------------------------------------------------------
OFFICERS The address of the Officers in the chart
below is as follows: for Messrs. Jennings and
Zack Two World Financial Center, New York, NY
10080, for Mr. Wixted, 6803 S. Tucson Way,
Centennial, CO 80112-3924. Each Officer
oversees 83 portfolios, except for Mr.
Jennings, in the OppenheimerFunds complex.
Each Officer serves for an annual term or
until his or her earlier resignation, death
or removal.
Frank Jennings, Vice President (since September 1995) of the
Vice President (since 1995) Manager; an officer of 1 portfolio in the
Age: 55 OppenheimerFunds complex.
36 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
Brian W. Wixted, Senior Vice President and Treasurer (since
Treasurer (since 1999) March 1999) of the Manager; Treasurer (since
Age: 43 March 1999) of HarbourView Asset Management
Corporation, Shareholder Services, Inc.,
Oppenheimer Real Asset Management
Corporation, Shareholder Financial Services,
Inc., Oppenheimer Partnership Holdings, Inc.,
OFI Private Investments, Inc. (since March
2000), OppenheimerFunds International Ltd.
and OppenheimerFunds plc (since May 2000) and
OFI Institutional Asset Management, Inc.
(since November 2000) (offshore fund
management subsidiaries of the Manager);
Treasurer and Chief Financial Officer (since
May 2000) of Oppenheimer Trust Company (a
trust company subsidiary of the Manager);
Assistant Treasurer (since March 1999) of
Oppenheimer Acquisition Corp. and
OppenheimerFunds Legacy Program (since April
2000); formerly Principal and Chief Operating
Officer (March 1995-March 1999), Bankers
Trust Company-Mutual Fund Services Division.
Robert G. Zack, Senior Vice President (since May 1985) and
Secretary (since 2001) General Counsel (since February 2002) of the
Age: 55 Manager; General Counsel and a director
(since November 2001) of OppenheimerFunds
Distributor, Inc.; Senior Vice President and
General Counsel (since November 2001) of
HarbourView Asset Management Corporation;
Vice President and a director (since November
2000) of Oppenheimer Partnership Holdings,
Inc.; Senior Vice President, General Counsel
and a director (since November 2001) of
Shareholder Services, Inc., Shareholder
Financial Services, Inc., OFI Private
Investments, Inc., Oppenheimer Trust Company
and OFI Institutional Asset Management, Inc.;
General Counsel (since November 2001) of
Centennial Asset Management Corporation; a
director (since November 2001) of Oppenheimer
Real Asset Management, Inc.; Assistant
Secretary and a director (since November
2001) of OppenheimerFunds International Ltd.;
Vice President (since November 2001) of
OppenheimerFunds Legacy Program; Secretary
(since November 2001) of Oppenheimer
Acquisition Corp.; formerly Acting General
Counsel (November 2001-February 2002) and
Associate General Counsel (May 1981-October
2001) of the Manager; Assistant Secretary of
Shareholder Services, Inc. (May 1985-November
2001), Shareholder Financial Services, Inc.
(November 1989-November 2001);
OppenheimerFunds International Ltd. and
OppenheimerFunds plc (October 1997-November
2001).
The Fund's Statement of Additional Information contains additional information
about the Fund's Trustees and is available without charge upon request.
37 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
ITEM 2. CODE OF ETHICS
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
The Board of Trustees of the Fund has determined that Edward V. Regan,
the Chairman of the Board's Audit Committee, possesses the technical attributes
identified in Instruction 2(b) of Item 3 to Form N-CSR to qualify as an "audit
committee financial expert," and has designated Mr. Regan as the Audit
Committee's financial expert. Mr. Regan is an "independent" Trustee pursuant to
paragraph (a)(2) of Item 3 to Form N-CSR.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES - NOT REQUIRED
ITEM 5. NOT APPLICABLE
ITEM 6. RESERVED
ITEM 7. NOT APPLICABLE
ITEM 8. RESERVED
ITEM 9. CONTROLS AND PROCEDURES
(a) Based on their evaluation of registrant's disclosure controls and
procedures (as defined in rule 30a-2(c) under the Investment Company
Act of 1940 (17 CFR 270.30a-2(c)) as of September 30, 2003,
registrant's principal executive officer and principal financial
officer found registrant's disclosure controls and procedures to be
appropriately designed to ensure that information required to be
disclosed by registrant in the reports that it files under the
Securities Exchange Act of 1934 (a) is accumulated and communicated to
registrant's management, including its principal executive officer and
principal financial officer, to allow timely decisions regarding
required disclosure, and (b) is recorded, processed, summarized and
reported, within the time periods specified in the rules and forms
adopted by the U.S. Securities and Exchange Commission.
(b) There have been no significant changes in registrant's internal
controls or in other factors that could significantly affect
registrant's internal controls subsequent to the date of the most
recent evaluation as indicated, including no significant deficiencies
or material weaknesses that required corrective action.
ITEM 10. EXHIBITS.
(A) EXHIBIT ATTACHED HERETO. (ATTACH CODE OF ETHICS AS EXHIBIT)
(B) EXHIBITS ATTACHED HERETO. (ATTACH CERTIFICATIONS AS EXHIBITS)