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.
Two World Financial Center, New York, New York 10281-1008
(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, 2003 - September 30, 2004
ITEM 1. REPORTS TO STOCKHOLDERS.
TOP HOLDINGS AND ALLOCATIONS
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TOP TEN COMMON STOCK HOLDINGS
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Advanced Micro Devices, Inc. 8.1%
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Sirius Satellite Radio, Inc. 7.8
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Nektar Therapeutics 6.4
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National Semiconductor Corp. 3.4
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Porsche AG, Preferred 2.4
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Telefonaktiebolaget LM Ericsson, B Shares 2.1
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H. Lundbeck AS 2.0
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Alexion Pharmaceuticals, Inc. 1.9
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Hennes & Mauritz AB, B Shares 1.8
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UCB SA 1.8
Portfolio holdings and allocations are subject to change. Percentages are as of
September 30, 2004, and are based on net assets.
For more current Fund holdings, please visit www.oppenheimerfunds.com.
TOP TEN GEOGRAPHICAL HOLDINGS
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United States 52.8%
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Japan 11.1
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Germany 7.6
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Sweden 6.4
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Denmark 5.2
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United Kingdom 4.7
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France 4.2
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Italy 2.6
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Belgium 1.8
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Portugal 0.9
Portfolio holdings and allocations are subject to change. Percentages are as of
September 30, 2004, and are based on total investments.
9 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
TOP HOLDINGS AND ALLOCATIONS
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REGIONAL ALLOCATION
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
United States/Canada 52.8%
Europe 34.7
Asia 11.6
Latin America 0.6
Middle East/Africa 0.3
Portfolio holdings and allocations are subject to change. Percentages are as of
September 30, 2004, and are based on total investments.
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10 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
FUND PERFORMANCE DISCUSSION
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HOW HAS THE FUND PERFORMED? BELOW IS A DISCUSSION BY OPPENHEIMERFUNDS, INC., OF
THE FUND'S PERFORMANCE DURING ITS FISCAL YEAR ENDED SEPTEMBER 30, 2004, FOLLOWED
BY A GRAPHICAL COMPARISON OF THE FUND'S PERFORMANCE TO AN APPROPRIATE
BROAD-BASED MARKET INDEX.
MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE. As some investors may know, we use
a thematic orientation to identify compelling investment opportunities within
longer-term global growth trends. The success of this approach over the last
twelve months was evident across a range of sectors, including consumer
discretionary, health care and information technology. And, although we were
underweighted in consumer staples and financials, our stocks in those industries
also performed very well.
In reviewing major contributors to the Fund's results, two of our largest
holdings--Advanced Micro Devices, Inc. (AMD) and National Semiconductor
Corp.--are certainly among the top ten. About two years ago, we predicted that
AMD, Intel's only direct competitor and a perennial underdog, would roll out a
new class of microprocessors that would challenge Intel in both performance and
price. On that belief, we bought a large stake in the company at rock bottom
prices. Since then, the market has confirmed our convictions. In the past year,
AMD's new chips have steadily gained share, leaving Intel to play catch-up.
Another strong performer was National Semiconductor, one of the portfolio's
long-term restructuring plays. During this period, it posted the highest
operating margins in its history and tripled its earnings, exceeding analysts'
estimates by a large margin.
Porsche AG Preferred, which we've owned for several years, is also a
continuing success story. With the introduction of their Cayenne sport utility
vehicle line and the new-generation Boxster, their sales remain on a phenomenal
trajectory. The top prize for performance, however, may go to Sirius Satellite
Radio, Inc., a subscription-based satellite radio system that had strong gains
over this time frame.
Of course, there were some disappointments along with these successes. Two
of them, which we continue to support, were semiconductor companies with
excellent products. In one case, production glitches and balance sheet problems
detracted from performance. In the other, the company was still feeling the
effects of the industry's over-capacity and excessive spending. A third example
was a well-managed and unique British software company that simply lost some
ground during the technology sell-off that began last April.
In terms of new holdings, we capitalized on the second quarter's low
technology valuations to build a small portfolio of software companies. We've
also been investing in oil services and drillers, which we think will benefit
from an increase in capital spending triggered by the run-up in energy prices.
11 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
FUND PERFORMANCE DISCUSSION
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In addition, we sold several favorites--among them, a Dublin-based public
finance bank and a large contract food service operator--because we believed
they had become fully valued.
In closing, we would remind shareholders that the Oppenheimer Global
Opportunities Fund is, as its name indicates, an opportunity-oriented fund. All
of our efforts are devoted to adding return--not matching an index. In that
sense, what we do is true investing. Consequently, the companies we buy are
frequently spurned by Wall Street--which isn't to say that everything Wall
Street rejects has value. However, we evaluate opportunities based on our own
disciplined measures of what we think they're worth, not whether they've
gathered a lot of support or consensus.
COMPARING THE FUND'S PERFORMANCE TO THE MARKET. The graphs that follow show the
performance of a hypothetical $10,000 investment in each class of shares of the
Fund held until September 30, 2004. In the case of Class A and Class C shares,
performance is measured from a ten-fiscal-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 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. Past
performance cannot guarantee future results.
The Fund's performance is compared to the performance of the Morgan
Stanley Capital International (MSCI) World Index, an unmanaged index of issuers
listed on the stock exchanges of 20 foreign countries and the United States. It
is widely recognized as a measure of global stock market performance. Index
performance reflects the reinvestment of dividends but does not consider the
effect of transaction costs, and none of the data in the graphs shows the effect
of taxes. The Fund's performance reflects the effects of the Fund's business and
operating expenses. While index comparisons may be useful to provide a benchmark
for the Fund's performance, it must be noted that the Fund's investments are not
limited to the investments in the index.
12 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
CLASS A SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Global Opportunities Fund (Class A)
MSCI World Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer Global
Opportunities Fund MSCI
Date (Class A) World Index
09/30/1994 9,425 10,000
12/31/1994 8,955 9,939
03/31/1995 9,062 10,417
06/30/1995 9,655 10,876
09/30/1995 10,125 11,497
12/31/1995 10,511 12,058
03/31/1996 10,813 12,563
06/30/1996 11,147 12,941
09/30/1996 11,470 13,129
12/31/1996 12,120 13,745
03/31/1997 12,945 13,800
06/30/1997 14,053 15,893
09/30/1997 15,924 16,363
12/31/1997 15,544 15,976
03/31/1998 17,249 18,280
06/30/1998 17,608 18,669
09/30/1998 14,528 16,447
12/31/1998 17,539 19,937
03/31/1999 18,331 20,666
06/30/1999 22,802 21,670
09/30/1999 24,705 21,366
12/31/1999 32,722 24,989
03/31/2000 38,048 25,264
06/30/2000 36,655 24,386
09/30/2000 33,733 23,178
12/31/2000 31,339 21,761
03/31/2001 26,726 18,981
06/30/2001 27,746 19,508
09/30/2001 20,815 16,718
12/31/2001 26,226 18,166
03/31/2002 26,121 18,279
06/30/2002 23,393 16,603
09/30/2002 17,484 13,565
12/31/2002 19,149 14,616
03/31/2003 17,396 13,893
06/30/2003 22,466 16,290
09/30/2003 25,936 17,094
12/31/2003 30,111 19,551
03/31/2004 33,369 20,082
06/30/2004 33,122 20,292
09/30/2004 30,734 20,108
AVERAGE ANNUAL TOTAL RETURNS OF CLASS A SHARES WITH SALES CHARGE OF THE FUND AT
9/30/04
1-Year 11.69% 5-Year 3.23% 10-Year 11.88%
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH DOES NOT
GUARANTEE FUTURE RESULTS. THE 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 THEIR ORIGINAL COST. CURRENT
PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE QUOTED. FOR PERFORMANCE
DATA CURRENT TO THE MOST RECENT MONTH END, VISIT US AT WWW.OPPENHEIMERFUNDS.COM,
OR CALL US AT 1.800.525.7048. FUND RETURNS INCLUDE CHANGES IN SHARE PRICE,
REINVESTED DISTRIBUTIONS, AND THE APPLICABLE SALES CHARGE: FOR CLASS A SHARES,
THE CURRENT MAXIMUM INITIAL SALES CHARGE OF 5.75%; FOR CLASS B SHARES, THE
CONTINGENT DEFERRED SALES CHARGE OF 5% (1-YEAR) AND 2% (5-YEAR); AND FOR CLASS C
AND N SHARES, THE CONTINGENT 1% DEFERRED SALES CHARGE FOR THE 1-YEAR PERIOD.
THERE IS NO SALES CHARGE FOR CLASS Y SHARES. SEE PAGE 18 FOR FURTHER
INFORMATION.
13 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
FUND PERFORMANCE DISCUSSION
- --------------------------------------------------------------------------------
CLASS B SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Global Opportunities Fund (Class B)
MSCI World Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer Global
Opportunities Fund MSCI
Date (Class B) 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
12/31/2003 28,889 17,005
03/31/2004 32,015 17,468
06/30/2004 31,778 17,650
09/30/2004 29,488 17,490
AVERAGE ANNUAL TOTAL RETURNS OF CLASS B SHARES WITH SALES CHARGE OF THE FUND AT
9/30/04
1-Year 12.55% 5-Year 3.31% Since Inception (10/10/95) 12.81%
14 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
CLASS C SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Global Opportunities Fund (Class C)
MSCI World Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer Global
Opportunities Fund MSCI
Date (Class C) World Index
09/30/1994 10,000 10,000
12/31/1994 9,486 9,939
03/31/1995 9,577 10,417
06/30/1995 10,181 10,876
09/30/1995 10,661 11,497
12/31/1995 11,046 12,058
03/31/1996 11,348 12,563
06/30/1996 11,671 12,941
09/30/1996 11,988 13,129
12/31/1996 12,634 13,745
03/31/1997 13,481 13,800
06/30/1997 14,605 15,893
09/30/1997 16,512 16,363
12/31/1997 16,093 15,976
03/31/1998 17,819 18,280
06/30/1998 18,160 18,669
09/30/1998 14,955 16,447
12/31/1998 18,024 19,937
03/31/1999 18,798 20,666
06/30/1999 23,334 21,670
09/30/1999 25,242 21,366
12/31/1999 33,368 24,989
03/31/2000 38,739 25,264
06/30/2000 37,238 24,386
09/30/2000 34,200 23,178
12/31/2000 31,713 21,761
03/31/2001 27,003 18,981
06/30/2001 27,978 19,508
09/30/2001 20,948 16,718
12/31/2001 26,335 18,166
03/31/2002 26,193 18,279
06/30/2002 23,419 16,603
09/30/2002 17,466 13,565
12/31/2002 19,094 14,616
03/31/2003 17,312 13,893
06/30/2003 22,313 16,290
09/30/2003 25,711 17,094
12/31/2003 29,790 19,551
03/31/2004 32,961 20,082
06/30/2004 32,638 20,292
09/30/2004 30,246 20,108
AVERAGE ANNUAL TOTAL RETURNS OF CLASS C SHARES WITH SALES CHARGE OF THE FUND AT
9/30/04
1-Year 16.64% 5-Year 3.68% 10-Year 11.70%
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH DOES NOT
GUARANTEE FUTURE RESULTS. THE 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 THEIR ORIGINAL COST. CURRENT
PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE QUOTED. FOR PERFORMANCE
DATA CURRENT TO THE MOST RECENT MONTH END, VISIT US AT WWW.OPPENHEIMERFUNDS.COM,
OR CALL US AT 1.800.525.7048. FUND RETURNS INCLUDE CHANGES IN SHARE PRICE,
REINVESTED DISTRIBUTIONS, AND THE APPLICABLE SALES CHARGE: FOR CLASS A SHARES,
THE CURRENT MAXIMUM INITIAL SALES CHARGE OF 5.75%; FOR CLASS B SHARES, THE
CONTINGENT DEFERRED SALES CHARGE OF 5% (1-YEAR) AND 2% (5-YEAR); AND FOR CLASS C
AND N SHARES, THE CONTINGENT 1% DEFERRED SALES CHARGE FOR THE 1-YEAR PERIOD.
THERE IS NO SALES CHARGE FOR CLASS Y SHARES. BECAUSE CLASS B SHARES CONVERT TO
CLASS A SHARES 72 MONTHS AFTER PURCHASE, SINCE-INCEPTION RETURN FOR CLASS B
SHARES USES CLASS A PERFORMANCE FOR THE PERIOD AFTER CONVERSION. SEE PAGE 18 FOR
FURTHER INFORMATION.
15 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
FUND PERFORMANCE DISCUSSION
- --------------------------------------------------------------------------------
CLASS N SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Global Opportunities Fund (Class N)
MSCI World Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer Global
Opportunities Fund MSCI
Date (Class N) 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
12/31/2003 10,242 9,625
03/31/2004 11,343 9,887
06/30/2004 11,246 9,990
09/30/2004 10,429 9,900
AVERAGE ANNUAL TOTAL RETURNS OF CLASS N SHARES WITH SALES CHARGE OF THE FUND AT
9/30/04
1-Year 17.10% 5-Year N/A Since Inception (3/1/01) 1.18%
16 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
CLASS Y SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Global Opportunities Fund (Class Y)
MSCI World Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer Global
Opportunities Fund MSCI
Date (Class Y) 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
12/31/2003 9,262 8,813
03/31/2004 10,273 9,053
06/30/2004 10,205 9,147
09/30/2004 9,478 9,064
AVERAGE ANNUAL TOTAL RETURNS OF CLASS Y SHARES AT 09/30/04
1 Year 18.90% 5-Year N/A Since Inception (2/1/01) -1.45%
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH DOES NOT
GUARANTEE FUTURE RESULTS. THE 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 THEIR ORIGINAL COST. CURRENT
PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE QUOTED. FOR PERFORMANCE
DATA CURRENT TO THE MOST RECENT MONTH END, VISIT US AT WWW.OPPENHEIMERFUNDS.COM,
OR CALL US AT 1.800.525.7048. FUND RETURNS INCLUDE CHANGES IN SHARE PRICE,
REINVESTED DISTRIBUTIONS, AND THE APPLICABLE SALES CHARGE: FOR CLASS A SHARES,
THE CURRENT MAXIMUM INITIAL SALES CHARGE OF 5.75%; FOR CLASS B SHARES, THE
CONTINGENT DEFERRED SALES CHARGE OF 5% (1-YEAR) AND 2% (5-YEAR); AND FOR CLASS C
AND N SHARES, THE CONTINGENT 1% DEFERRED SALES CHARGE FOR THE 1-YEAR PERIOD.
THERE IS NO SALES CHARGE FOR CLASS Y SHARES. SEE PAGE 18 FOR FURTHER
INFORMATION.
17 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
NOTES
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Total returns and the ending account values in the graphs include changes in
share price and reinvestment of dividends and capital gains distributions in a
hypothetical investment for the periods shown. 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.
Investors should consider the Fund's investment objectives, risks, and other
charges and expenses carefully before investing. The Fund's prospectus contains
this and other information about the Fund, and may be obtained by asking your
financial advisor, calling us at 1.800.525.7048 or visiting our website at
www.oppenheimerfunds.com. Read the prospectus carefully before investing.
The Fund's investment strategy and focus can change over time. The mention of
specific fund holdings does not constitute a recommendation by OppenheimerFunds,
Inc.
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.
18 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
FUND EXPENSES
- --------------------------------------------------------------------------------
FUND EXPENSES. As a shareholder of the Fund, you incur two types of costs: (1)
transaction costs, which may include sales charges (loads) on purchase payments,
contingent deferred sales charges on redemptions; and redemption fees, if any;
and (2) ongoing costs, including management fees; distribution and service fees;
and other Fund expenses. These examples are intended to help you understand your
ongoing costs (in dollars) of investing in the Fund and to compare these costs
with the ongoing costs of investing in other mutual funds.
The examples are based on an investment of $1,000.00 invested at the beginning
of the period and held for the entire 6-month period ended September 30, 2004.
ACTUAL EXPENSES. The "actual" lines of the table provide information about
actual account values and actual expenses. You may use the information on this
line for the class of shares you hold, together with the amount you invested, to
estimate the expense that you paid over the period. Simply divide your account
value by $1,000.00 (for example, an $8,600.00 account value divided by $1,000.00
= 8.60), then multiply the result by the number in the "actual" line under the
heading entitled "Expenses Paid During Period" to estimate the expenses you paid
on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES. The "hypothetical" lines of the
table provide information about hypothetical account values and hypothetical
expenses based on the Fund's actual expense ratio for each class of shares, and
an assumed rate of return of 5% per year before expenses, which is not the
Fund's actual return. The hypothetical account values and expenses may not be
used to estimate the actual ending account balance or expenses you paid for the
period. You may use this information to compare the ongoing costs of investing
in the Fund and other funds. To do so, compare this 5% hypothetical example for
the class of shares you hold with the 5% hypothetical examples that appear in
the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as front-end
or contingent deferred sales charges (loads), redemption fees, or a $12.00 fee
imposed annually on accounts valued at less than $500.00 (subject to
19 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
FUND EXPENSES
- --------------------------------------------------------------------------------
exceptions described in the Statement of Additional Information). Therefore, the
"hypothetical" lines of the table are useful in comparing ongoing costs only,
and will not help you determine the relative total costs of owning different
funds. In addition, if these transactional costs were included, your costs would
have been higher.
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT PAID DURING
VALUE VALUE 6-MONTHS ENDED
(4/1/04) (9/30/04) SEPTEMBER 30, 2004
- -------------------------------------------------------------------
Class A Actual $ 1,000.00 $ 921.10 $ 5.64
- -------------------------------------------------------------------
Class A Hypothetical 1,000.00 1,019.15 5.92
- -------------------------------------------------------------------
Class B Actual 1,000.00 917.20 9.68
- -------------------------------------------------------------------
Class B Hypothetical 1,000.00 1,014.95 10.18
- -------------------------------------------------------------------
Class C Actual 1,000.00 917.60 9.40
- -------------------------------------------------------------------
Class C Hypothetical 1,000.00 1,015.25 9.87
- -------------------------------------------------------------------
Class N Actual 1,000.00 919.40 7.37
- -------------------------------------------------------------------
Class N Hypothetical 1,000.00 1,017.35 7.75
- -------------------------------------------------------------------
Class Y Actual 1,000.00 922.60 4.14
- -------------------------------------------------------------------
Class Y Hypothetical 1,000.00 1,020.70 4.35
Hypothetical assumes 5% annual return before expenses.
Expenses are equal to the Fund's annualized expense ratio for that class,
multiplied by the average account value over the period, multiplied by 183/366
(to reflect the one-half year period). Those annualized expense ratios based on
the 6-month period ended September 30, 2004 are as follows:
CLASS EXPENSE RATIOS
- ------------------------
Class A 1.17%
- ------------------------
Class B 2.01
- ------------------------
Class C 1.95
- ------------------------
Class N 1.53
- ------------------------
Class Y 0.86
20 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
STATEMENT OF INVESTMENTS September 30, 2004
- --------------------------------------------------------------------------------
VALUE
SHARES SEE NOTE 1
- -------------------------------------------------------------------------------
COMMON STOCKS--96.4%
- -------------------------------------------------------------------------------
CONSUMER DISCRETIONARY--18.2%
- -------------------------------------------------------------------------------
AUTOMOBILES--3.2%
Bayerische Motoren
Werke AG 300,000 $ 12,368,095
- -------------------------------------------------------------------------------
Hero Honda
Motors Ltd. 1,000,000 9,752,221
- -------------------------------------------------------------------------------
Porsche AG, Preferred 100,000 64,831,454
----------------
86,951,770
- -------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE--0.9%
Krispy Kreme
Doughnuts, Inc. 1 1,000,000 12,660,000
- -------------------------------------------------------------------------------
Six Flags, Inc. 1 2,000,000 10,880,000
----------------
23,540,000
- -------------------------------------------------------------------------------
HOUSEHOLD DURABLES--0.2%
Brillian Corp. 1,2 1,376,475 6,097,784
- -------------------------------------------------------------------------------
INTERNET & CATALOG RETAIL--1.0%
Amazon.com, Inc. 1 700,000 28,602,000
- -------------------------------------------------------------------------------
MEDIA--9.2%
Pixar, Inc. 1 200,000 15,780,000
- -------------------------------------------------------------------------------
Sirius Satellite
Radio, Inc. 1,2 66,116,475 211,572,720
- -------------------------------------------------------------------------------
Toei Animation
Co. Ltd. 200,000 9,380,539
- -------------------------------------------------------------------------------
Wiley (John) & Sons,
Inc., Cl. A 400,000 12,780,000
----------------
249,513,259
- -------------------------------------------------------------------------------
MULTILINE RETAIL--1.2%
Sears Roebuck & Co. 800,000 31,880,000
- -------------------------------------------------------------------------------
SPECIALTY RETAIL--1.8%
Hennes & Mauritz
AB, B Shares 1,800,000 49,572,133
- -------------------------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS--0.7%
Luxottica Group SpA 1,000,000 17,933,427
- -------------------------------------------------------------------------------
CONSUMER STAPLES--3.2%
- -------------------------------------------------------------------------------
BEVERAGES--0.7%
Ito En Ltd. 400,000 17,488,524
- -------------------------------------------------------------------------------
FOOD PRODUCTS--0.6%
Nestle SA 20,000 4,594,009
- -------------------------------------------------------------------------------
Thorntons plc 2 4,300,000 12,700,915
----------------
17,294,924
- -------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS--0.8%
Kao Corp. 1,000,000 22,133,345
- -------------------------------------------------------------------------------
PERSONAL PRODUCTS--1.1%
Gillette Co. 100,000 4,174,000
- -------------------------------------------------------------------------------
Shiseido Co. Ltd. 2,000,000 24,633,005
----------------
28,807,005
- -------------------------------------------------------------------------------
FINANCIALS--13.9%
- -------------------------------------------------------------------------------
CAPITAL MARKETS--0.5%
Northern Trust Corp. 300,000 12,240,000
- -------------------------------------------------------------------------------
COMMERCIAL BANKS--5.6%
Anglo Irish Bank
Corp. 1,000,000 18,343,832
- -------------------------------------------------------------------------------
Banco Bradesco SA,
Sponsored ADR 200,000 10,540,000
- -------------------------------------------------------------------------------
Banco Comercial
Portugues SA 12,000,000 26,116,642
- -------------------------------------------------------------------------------
Commerce Bancorp,
Inc. 600,700 33,158,640
- -------------------------------------------------------------------------------
Itausa-Investimentos
Itau SA, Preference 5,101,303 6,836,246
- -------------------------------------------------------------------------------
Nordbanken
Holding AB 3,500,000 28,604,590
- -------------------------------------------------------------------------------
Sumitomo Trust &
Banking Co. Ltd.
(The) 5,000,000 29,632,323
----------------
153,232,273
- -------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES--1.6%
Instinet Group, Inc. 1 2,000,000 10,060,000
- -------------------------------------------------------------------------------
MLP AG 2,000,000 32,135,906
----------------
42,195,906
- -------------------------------------------------------------------------------
INSURANCE--5.5%
Aegon NV 1,000,000 10,794,879
- -------------------------------------------------------------------------------
Allianz AG 200,000 20,122,251
- -------------------------------------------------------------------------------
Assicurazioni
Generali SpA 1,000,000 27,521,966
21 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
VALUE
SHARES SEE NOTE 1
- -------------------------------------------------------------------------------
INSURANCE Continued
Aviva plc 2,000,000 $ 19,842,348
- -------------------------------------------------------------------------------
Axa SA 1,150,000 23,297,910
- -------------------------------------------------------------------------------
Chubb Corp. 200,000 14,056,000
- -------------------------------------------------------------------------------
Muenchener
Rueckversicherungs-
Gesellschaft AG 200,000 19,226,823
- -------------------------------------------------------------------------------
Prudential Financial,
Inc. 300,000 14,112,000
----------------
148,974,177
- -------------------------------------------------------------------------------
REAL ESTATE--0.7%
Mitsubishi Estate
Co. Ltd. 1,000,000 10,453,120
- -------------------------------------------------------------------------------
Solidere, GDR 1,3 1,344,575 9,277,568
----------------
19,730,688
- -------------------------------------------------------------------------------
HEALTH CARE--23.4%
- -------------------------------------------------------------------------------
BIOTECHNOLOGY--5.8%
Affymetrix, Inc. 1 1,500,000 46,065,000
- -------------------------------------------------------------------------------
Alexion
Pharmaceuticals, Inc. 1,2 2,800,000 50,400,000
- -------------------------------------------------------------------------------
Myriad Genetics, Inc. 1 1,300,000 22,230,000
- -------------------------------------------------------------------------------
Neurogen Corp. 1,2 2,000,000 12,920,000
- -------------------------------------------------------------------------------
Neurogen Corp. 1,2,4 200,000 1,292,000
- -------------------------------------------------------------------------------
Q-Med AB 999,975 24,998,345
----------------
157,905,345
- -------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES--4.1%
Analogic Corp. 2 700,000 29,183,000
- -------------------------------------------------------------------------------
bioMerieux 1 647,900 22,553,239
- -------------------------------------------------------------------------------
Elekta AB, B Shares 1 600,000 14,587,311
- -------------------------------------------------------------------------------
GN Store Nord AS 4,500,000 45,496,324
----------------
111,819,874
- -------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES--0.7%
Nicox SA 1,2 5,077,849 20,018,756
- -------------------------------------------------------------------------------
PHARMACEUTICALS--12.8%
H. Lundbeck AS 3,000,000 54,395,053
- -------------------------------------------------------------------------------
Merck & Co., Inc. 600,000 19,800,000
- -------------------------------------------------------------------------------
Nektar Therapeutics 1,2 12,000,000 173,760,000
- -------------------------------------------------------------------------------
Sanofi-Synthelabo SA 400,000 29,051,655
- -------------------------------------------------------------------------------
Santen Pharmaceutical
Co. Ltd. 1,000,000 18,042,994
- -------------------------------------------------------------------------------
Tong Ren Tang
Technologies Co. Ltd. 2,009,000 4,380,274
- -------------------------------------------------------------------------------
UCB SA 900,000 47,983,733
----------------
347,413,709
- -------------------------------------------------------------------------------
INDUSTRIALS--3.1%
- -------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES--1.0%
Secom Co. Ltd. 800,000 27,850,748
- -------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--0.5%
Schneider Electric SA 200,000 12,946,392
- -------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES--1.6%
Siemens AG 600,000 44,025,196
- -------------------------------------------------------------------------------
INFORMATION TECHNOLOGY--31.5%
- -------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT--5.5%
JDS Uniphase Corp. 1 10,000,000 33,700,000
- -------------------------------------------------------------------------------
QUALCOMM, Inc. 301,600 11,774,464
- -------------------------------------------------------------------------------
Telefonaktiebolaget
LM Ericsson,
B Shares 1 18,000,000 55,876,818
- -------------------------------------------------------------------------------
Toyo Communication
Equipment Co. Ltd. 1,2 4,000,000 16,252,329
- -------------------------------------------------------------------------------
Uniden Corp. 1,500,000 31,563,878
----------------
149,167,489
- -------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS--0.7%
Synaptics, Inc. 1 1,000,000 20,160,000
- -------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS--4.3%
Coherent, Inc. 1 500,000 12,970,000
- -------------------------------------------------------------------------------
Electrocomponents
plc 8,000,000 45,084,715
- -------------------------------------------------------------------------------
Epcos AG 1 1,000,000 15,060,597
- -------------------------------------------------------------------------------
Murata
Manufacturing
Co. Ltd. 900,000 43,357,724
----------------
116,473,036
- -------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES--0.7%
EarthLink, Inc. 1 2,000,000 20,600,000
- -------------------------------------------------------------------------------
OFFICE ELECTRONICS--0.5%
Canon, Inc. 300,000 14,125,347
22 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
VALUE
SHARES SEE NOTE 1
- -------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT--15.9%
Advanced Micro
Devices, Inc. 1 17,000,000 $ 221,000,000
- -------------------------------------------------------------------------------
ARM Holdings plc 10,000,000 15,130,923
- -------------------------------------------------------------------------------
Cree, Inc. 1 1,500,200 45,801,106
- -------------------------------------------------------------------------------
National
Semiconductor Corp. 1 6,000,000 92,940,000
- -------------------------------------------------------------------------------
Three-Five
Systems, Inc. 1,2 4,139,500 11,342,230
- -------------------------------------------------------------------------------
Transmeta Corp. 1,2 17,000,000 21,420,000
- -------------------------------------------------------------------------------
TriQuint
Semiconductor, Inc. 1 6,000,000 23,400,000
----------------
431,034,259
- -------------------------------------------------------------------------------
SOFTWARE--3.9%
Autonomy Corp.
plc 1,2 10,002,346 34,301,785
- -------------------------------------------------------------------------------
BEA Systems, Inc. 1 1,000,000 6,910,000
- -------------------------------------------------------------------------------
Business Objects SA 1 300,000 6,939,565
- -------------------------------------------------------------------------------
Nintendo Co. Ltd. 300,000 36,758,624
- -------------------------------------------------------------------------------
Novell, Inc. 1 2,000,000 12,620,000
- -------------------------------------------------------------------------------
Siebel Systems, Inc. 1 1,000,000 7,540,000
----------------
105,069,974
- -------------------------------------------------------------------------------
MATERIALS--2.2%
- -------------------------------------------------------------------------------
CHEMICALS--2.2%
Eastman
Chemical Co. 400,000 19,020,000
- -------------------------------------------------------------------------------
Novozymes AS,
B Shares 900,000 40,608,289
----------------
59,628,289
- -------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES--0.9%
- -------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES--0.9%
e.Biscom 1 500,000 24,866,774
----------------
Total Common Stocks
(Cost $2,505,421,453) 2,619,292,403
UNITS
- -------------------------------------------------------------------------------
RIGHTS, WARRANTS AND CERTIFICATES--0.0%
- -------------------------------------------------------------------------------
Sirius Satellite Radio,
Inc. Wts., Exp. 5/15/09 1,2,4
(Cost $880,147) 18,000 180
PRINCIPAL
AMOUNT
- -------------------------------------------------------------------------------
JOINT REPURCHASE AGREEMENTS--3.7%
- -------------------------------------------------------------------------------
Undivided interest of 13.72% in joint
repurchase agreement (Principal Amount/
Value $729,739,000, with a maturity value
of $729,775,487) with UBS Warburg LLC,
1.80%, dated 9/30/04, to be repurchased
at $100,107,005 on 10/1/04, collateralized
by Federal National Mortgage Assn.,
5%, 3/1/34, with a value
of $745,857,878
(Cost $100,102,000) $ 100,102,000 100,102,000
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS,
AT VALUE
(COST $2,606,403,600) 100.1% 2,719,394,583
- -------------------------------------------------------------------------------
LIABILITIES
IN EXCESS OF
OTHER ASSETS (0.1) (1,392,046)
--------------------------------
NET ASSETS 100.0% $ 2,718,002,537
================================
23 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
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,
2004. The aggregate fair value of securities of affiliated companies held by the
Fund as of September 30, 2004 amounts to $601,261,699. Transactions during the
period in which the issuer was an affiliate are as follows:
SHARES GROSS GROSS SHARES
SEPT. 30, 2003 ADDITIONS REDUCTIONS SEPT. 30, 2004
- ------------------------------------------------------------------------------------------------------------
STOCKS AND/OR WARRANTS
Alexion Pharmaceuticals, Inc. 2,800,000 -- -- 2,800,000
Analogic Corp. -- 700,000 -- 700,000
Autonomy Corp. plc -- 10,002,346 -- 10,002,346
Brillian Corp. 1,034,875 341,600 -- 1,376,475
Nektar Therapeutics 8,000,000 4,000,000 -- 12,000,000
Neurogen Corp. 2,000,000 -- -- 2,000,000
Neurogen Corp. 200,000 -- -- 200,000
Nicox SA 3,000,000 2,077,849 -- 5,077,849
Sirius Satellite Radio, Inc. 76,116,475 -- 10,000,000 66,116,475
Sirius Satellite Radio, Inc. Wts., Exp. 5/15/09 -- 18,000 * -- 18,000
Thorntons plc 5,397,480 -- 1,097,480 4,300,000
Three-Five Systems, Inc. 4,139,500 -- -- 4,139,500
Toyo Communication Equipment Co. Ltd. 4,000,000 -- -- 4,000,000
Transmeta Corp. -- 17,000,000 -- 17,000,000
UNREALIZED
APPRECIATION DIVIDEND REALIZED
(DEPRECIATION) INCOME GAIN (LOSS)
- --------------------------------------------------------------------------------------------
STOCKS AND/OR WARRANTS
Alexion Pharmaceuticals, Inc. $ (22,096,425) $ -- $ --
Analogic Corp. 533,769 -- --
Autonomy Corp. plc (13,383,963) -- --
Brillian Corp. (38,017,645) -- --
Nektar Therapeutics (89,562,419) -- --
Neurogen Corp. (13,815,884) -- --
Neurogen Corp. (3,708,000) -- --
Nicox SA (7,679,979) -- --
Sirius Satellite Radio, Inc. 158,360,342 -- 20,556,175
Sirius Satellite Radio, Inc. Wts., Exp. 5/15/09 (879,967) -- --
Thorntons plc (81,392) 519,082 (1,264,101)
Three-Five Systems, Inc. (128,769,383) -- --
Toyo Communication Equipment Co. Ltd. (43,644,968) -- --
Transmeta Corp. (29,826,405) -- --
------------------------------------------
$ (232,572,319) $ 519,082 $ 19,292,074
==========================================
* Received as the result of a corporate action.
24 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
3. Represents securities sold under Rule 144A, which are exempt from
registration under the Securities Act of 1933, as amended. These securities have
been determined to be liquid under guidelines established by the Board of
Trustees. These securities amount to $9,277,568 or 0.34% of the Fund's net
assets as of September 30, 2004.
4. Illiquid or restricted security. 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 VALUE PERCENT
- -------------------------------------------------
United States $ 1,435,003,124 52.8%
Japan 301,672,500 11.1
Germany 207,770,322 7.6
Sweden 173,639,197 6.4
Denmark 140,499,666 5.2
United Kingdom 127,060,686 4.7
France 114,807,517 4.2
Italy 70,322,167 2.6
Belgium 47,983,733 1.8
Portugal 26,116,642 0.9
Ireland 18,343,832 0.7
Brazil 17,376,246 0.6
The Netherlands 10,794,879 0.4
India 9,752,221 0.3
Lebanon 9,277,568 0.3
Switzerland 4,594,009 0.2
Hong Kong 4,380,274 0.2
---------------------------
Total $ 2,719,394,583 100.0%
===========================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
25 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
STATEMENT OF ASSETS AND LIABILITIES September 30, 2004
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------
ASSETS
- ------------------------------------------------------------------------------------
Investments, at value--see accompanying statement of investments:
Unaffiliated companies (cost $1,772,569,582) $ 2,118,132,884
Affiliated companies (cost $833,834,018) 601,261,699
----------------
2,719,394,583
- ------------------------------------------------------------------------------------
Cash 1,263,265
- ------------------------------------------------------------------------------------
Unrealized appreciation on foreign currency contracts 4
- ------------------------------------------------------------------------------------
Receivables and other assets:
Investments sold 4,919,762
Interest and dividends 3,637,580
Shares of beneficial interest sold 2,208,417
Other 47,361
----------------
Total assets 2,731,470,972
- ------------------------------------------------------------------------------------
LIABILITIES
- ------------------------------------------------------------------------------------
Unrealized depreciation on foreign currency contracts 35,057
- ------------------------------------------------------------------------------------
Payables and other liabilities:
Shares of beneficial interest redeemed 5,291,635
Investments purchased 4,772,883
Distribution and service plan fees 1,648,007
Transfer and shareholder servicing agent fees 546,349
Trustees' compensation 519,302
Shareholder communications 367,663
Foreign capital gains tax 159,480
Other 128,059
----------------
Total liabilities 13,468,435
- ------------------------------------------------------------------------------------
NET ASSETS $ 2,718,002,537
================
- ------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- ------------------------------------------------------------------------------------
Par value of shares of beneficial interest $ 105,463
- ------------------------------------------------------------------------------------
Additional paid-in capital 2,958,550,643
- ------------------------------------------------------------------------------------
Accumulated net investment loss (23,767,130)
- ------------------------------------------------------------------------------------
Accumulated net realized loss on investments and foreign currency
transactions (329,724,624)
- ------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of
assets and liabilities denominated in foreign currencies 112,838,185
----------------
NET ASSETS $ 2,718,002,537
================
26 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
- --------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
- --------------------------------------------------------------------------------------------------
Class A Shares:
Net asset value and redemption price per share (based on net assets of $1,572,486,995
and 60,170,177 shares of beneficial interest outstanding) $ 26.13
Maximum offering price per share (net asset value plus sales charge of 5.75% of offering
price) $ 27.72
- --------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $701,802,625 and 27,794,252 shares
of beneficial interest outstanding) $ 25.25
- --------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $385,819,580 and 15,264,636 shares
of beneficial interest outstanding) $ 25.28
- --------------------------------------------------------------------------------------------------
Class N Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $40,989,135 and 1,589,857 shares
of beneficial interest outstanding) $ 25.78
- --------------------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based on net assets
of $16,904,202 and 644,405 shares of beneficial interest outstanding) $ 26.23
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
27 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
STATEMENT OF OPERATIONS For the Year Ended September 30, 2004
- --------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------
INVESTMENT INCOME
- ----------------------------------------------------------------------------------------
Dividends:
Unaffiliated companies (net of foreign withholding taxes of $3,056,486) $ 25,529,597
Affiliated companies (net of foreign withholding taxes of $57,676) 519,082
- ----------------------------------------------------------------------------------------
Interest 747,417
--------------
Total investment income 26,796,096
- ----------------------------------------------------------------------------------------
EXPENSES
- ----------------------------------------------------------------------------------------
Management fees 19,459,888
- ----------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 3,768,012
Class B 7,528,746
Class C 3,930,373
Class N 169,531
- ----------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 3,178,067
Class B 2,109,547
Class C 879,893
Class N 104,413
Class Y 18,758
- ----------------------------------------------------------------------------------------
Shareholder communications:
Class B 113,400
Class C 14,456
- ----------------------------------------------------------------------------------------
Custodian fees and expenses 379,192
- ----------------------------------------------------------------------------------------
Trustees' compensation 119,539
- ----------------------------------------------------------------------------------------
Other 159,695
--------------
Total expenses 41,933,510
Less reduction to custodian expenses (7,626)
Less payments and waivers of expenses (125,426)
--------------
Net expenses 41,800,458
- ----------------------------------------------------------------------------------------
NET INVESTMENT LOSS (15,004,362)
28 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
- ----------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
- ----------------------------------------------------------------------------------------
Net realized gain on:
Investments:
Unaffiliated companies $ 67,686,458
Affiliated companies 19,292,074
Foreign currency transactions 65,150,078
Net increase from payment by affiliate 113,172
--------------
Net realized gain 152,241,782
- ----------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on:
Investments (net of foreign capital gains tax of $159,480) 261,878,589
Translation of assets and liabilities denominated in foreign currencies (12,567,348)
--------------
Net change in unrealized appreciation (depreciation) 249,311,241
- ----------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 386,548,661
==============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
29 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
YEAR ENDED SEPTEMBER 30, 2004 2003
- ---------------------------------------------------------------------------------------------
OPERATIONS
- ---------------------------------------------------------------------------------------------
Net investment loss $ (15,004,362) $ (14,899,814)
- ---------------------------------------------------------------------------------------------
Net realized gain (loss) 152,241,782 (330,249,048)
- ---------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) 249,311,241 1,066,084,763
----------------------------------
Net increase in net assets resulting from operations 386,548,661 720,935,901
- ---------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
- ---------------------------------------------------------------------------------------------
Dividends from net investment income:
Class A -- (11,724,633)
Class B -- (1,829,181)
Class C -- (1,066,122)
Class N -- (163,722)
Class Y -- (90,153)
- ---------------------------------------------------------------------------------------------
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)
- ---------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
- ---------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
beneficial interest transactions:
Class A 178,635,656 (52,577,512)
Class B (72,891,348) (80,332,764)
Class C (3,835,712) (27,020,179)
Class N 14,305,000 6,106,633
Class Y 7,247,887 2,118,152
- ---------------------------------------------------------------------------------------------
NET ASSETS
- ---------------------------------------------------------------------------------------------
Total increase 510,010,144 552,099,986
- ---------------------------------------------------------------------------------------------
Beginning of period 2,207,992,393 1,655,892,407
----------------------------------
End of period (including accumulated net investment loss
of $23,767,130 and $11,766,828, respectively) $ 2,718,002,537 $ 2,207,992,393
==================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
30 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
CLASS A YEAR ENDED SEPTEMBER 30, 2004 2003 2002 2001 2000
- --------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 22.05 $ 15.06 $ 17.96 $ 30.02 $ 23.37
- --------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.06) (.07) (.03) .08 .11
Net realized and unrealized gain (loss) 4.14 7.29 (2.83) (11.28) 8.19
------------------------------------------------------------------------------------
Total from investment operations 4.08 7.22 (2.86) (11.20) 8.30
- --------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to
shareholders:
Dividends from net investment income -- (.21) (.02) (.05) (.33)
Tax return of capital -- (.02) -- -- --
Distributions from net realized gain -- -- (.02) (.81) (1.32)
------------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders -- (.23) (.04) (.86) (1.65)
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 26.13 $ 22.05 $ 15.06 $ 17.96 $ 30.02
====================================================================================
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 1 18.50% 48.34% (16.01)% (38.30)% 36.54%
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 1,572,487 $ 1,185,092 $ 865,444 $ 1,061,527 $ 1,566,609
- --------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 1,533,808 $ 963,783 $ 1,209,791 $ 1,444,832 $ 1,159,085
- --------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income (loss) (0.20)% (0.48)% (0.17)% 0.38% 0.72%
Total expenses 1.19% 3,4 1.36% 3,4 1.40% 3,4 1.22% 3 1.20% 3
- --------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 52% 61% 39% 53% 48%
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.
31 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
CLASS B YEAR ENDED SEPTEMBER 30, 2004 2003 2002 2001 2000
- -----------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -----------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 21.48 $ 14.66 $ 17.60 $ 29.59 $ 23.15
- -----------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.33) (.26) (.20) (.08) (.02)
Net realized and unrealized gain (loss) 4.10 7.15 (2.72) (11.10) 8.02
---------------------------------------------------------------------
Total from investment operations 3.77 6.89 (2.92) (11.18) 8.00
- -----------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- (.05) -- -- (.24)
Tax return of capital -- (.02) -- -- --
Distributions from net realized gain -- -- (.02) (.81) (1.32)
---------------------------------------------------------------------
Total dividends and/or distributions
to shareholders -- (.07) (.02) (.81) (1.56)
- -----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 25.25 $ 21.48 $ 14.66 $ 17.60 $ 29.59
=====================================================================
- -----------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 1 17.55% 47.15% (16.63)% (38.74)% 35.48%
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 701,803 $ 659,224 $ 522,255 $ 674,707 $ 1,013,614
- -----------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 753,094 $ 564,030 $ 747,894 $ 922,355 $ 711,304
- -----------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment loss (1.06)% (1.28)% (0.92)% (0.37)% (0.05)%
Total expenses 2.03% 2.23% 2.16% 1.97% 1.97%
Expenses after payments and waivers
and reduction to custodian expenses N/A 3,4 2.14% N/A 3,4 N/A 3 N/A 3
- -----------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 52% 61% 39% 53% 48%
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.
32 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
CLASS C YEAR ENDED SEPTEMBER 30, 2004 2003 2002 2001 2000
- --------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 21.49 $ 14.67 $ 17.61 $ 29.61 $ 23.15
- --------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.26) (.24) (.19) (.09) (.07)
Net realized and unrealized gain (loss) 4.05 7.14 (2.73) (11.10) 8.07
------------------------------------------------------------------------
Total from investment operations 3.79 6.90 (2.92) (11.19) 8.00
- --------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- (.06) -- -- (.22)
Tax return of capital -- (.02) -- -- --
Distributions from net realized gain -- -- (.02) (.81) (1.32)
------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders -- (.08) (.02) (.81) (1.54)
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 25.28 $ 21.49 $ 14.67 $ 17.61 $ 29.61
========================================================================
- --------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 1 17.64% 47.20% (16.62)% (38.75)% 35.49%
- --------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 385,820 $ 332,257 $ 253,560 $ 318,082 $ 494,774
- --------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 393,202 $ 276,023 $ 356,480 $ 446,283 $ 377,158
- --------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment loss (0.99)% (1.26)% (0.90)% (0.36)% (0.05)%
Total expenses 1.96% 3,4 2.15% 3 2.13% 3,4 1.97% 3 1.98% 3
- --------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 52% 61% 39% 53% 48%
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.
33 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
CLASS N YEAR ENDED SEPTEMBER 30, 2004 2003 2002 2001 1
- ----------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ----------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 21.83 $ 14.96 $ 17.94 $ 25.19
- ----------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.05) (.04) (.06) (.06)
Net realized and unrealized gain (loss) 4.00 7.15 (2.81) (7.19)
--------------------------------------------------
Total from investment operations 3.95 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 $ 25.78 $ 21.83 $ 14.96 $ 17.94
==================================================
- ----------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 18.10% 47.94% (16.19)% (28.78)%
- ----------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ----------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 40,989 $ 22,900 $ 10,490 $ 1,704
- ----------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 33,972 $ 15,577 $ 8,179 $ 407
- ----------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment loss (0.54)% (0.68)% (1.33)% (2.44)%
Total expenses 1.54% 1.70% 1.61% 1.58%
Expenses after payments and waivers and
reduction to custodian expenses N/A 4,5 1.64% N/A 4,5 N/A 4
- ----------------------------------------------------------------------------------------------------
Portfolio turnover rate 52% 61% 39% 53%
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, 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.
34 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
CLASS Y YEAR ENDED SEPTEMBER 30, 2004 2003 2002 2001 1
- -----------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -----------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 22.06 $ 15.09 $ 17.99 $ 28.40
- -----------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .07 .06 .09 (.05)
Net realized and unrealized gain (loss) 4.10 7.25 (2.85) (10.36)
---------------------------------------------
Total from investment operations 4.17 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 $ 26.23 $ 22.06 $ 15.09 $ 17.99
=============================================
- -----------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 18.90% 49.07% (15.58)% (36.66)%
- -----------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 16,904 $ 8,519 $ 4,144 $ 4,215
- -----------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 14,612 $ 5,743 $ 5,231 $ 1,240
- -----------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income (loss) 0.19% 0.04% 0.34% (1.52)%
Total expenses 0.85% 0.90% 0.88% 1.08%
Expenses after payments and waivers and
reduction to custodian expenses N/A 4 N/A 4 N/A 4 1.06%
- -----------------------------------------------------------------------------------------------
Portfolio turnover rate 52% 61% 39% 53%
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, 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.
35 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Global Opportunities Fund (the Fund) is registered under the
Investment Company Act of 1940, as amended, as an open-end management investment
company. The Fund's investment objective is to seek capital appreciation
consistent with preservation of principal, while providing current income. The
Fund's investment advisor is OppenheimerFunds, Inc. (the Manager).
The Fund offers Class A, Class B, 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, however, the institutional investor
may impose charges on those accounts. All classes of shares have identical
rights and voting privileges with respect to the Fund in general and exclusive
voting rights on matters that affect that class alone. Earnings, net assets and
net asset value per share may differ due to each class having its own expenses,
such as transfer and shareholder servicing agent fees and shareholder
communications, directly attributable to that class. Class 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. The Fund calculates the net asset value of its shares as
of the close of The New York Stock Exchange (the Exchange), normally 4:00 P.M.
Eastern time, on each day the Exchange is open for business. 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.
Corporate, government and municipal debt instruments having a remaining maturity
in excess of 60 days and all mortgage-backed securities will be valued at the
mean between the "bid" and "asked" prices. Securities may be valued primarily
using dealer-supplied valuations or a portfolio pricing service authorized by
the Board of Trustees. Securities (including restricted securities) for which
market quotations are not readily available are valued at their fair value.
Foreign and domestic securities whose values have been materially
36 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
affected by what the Manager identifies as a significant event occurring before
the Fund's assets are valued but after the close of their respective exchanges
will be fair valued. 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).
- --------------------------------------------------------------------------------
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 as of the close of The New York Stock Exchange (the
Exchange), normally 4:00 P.M. Eastern time, on each day the Exchange is open.
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. Foreign exchange rates may be valued primarily using
dealer supplied valuations or a portfolio pricing service authorized by the
Board of Trustees.
Reported net realized foreign exchange gains or losses arise from sales of
portfolio securities, sales and maturities of short-term securities, sales of
foreign currencies, currency gains or losses realized between the trade and
settlement dates on securities transactions, and the difference between the
amounts of dividends, interest, and foreign withholding taxes recorded on the
Fund's books and the U.S. dollar equivalent of the amounts actually received or
paid. Net unrealized foreign exchange gains and losses arise from changes in the
values of assets and liabilities, including investments in securities at fiscal
period end, resulting from changes in exchange rates.
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. 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.
37 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
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.
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 1,2,3,4,5 TAX PURPOSES
----------------------------------------------------------------------------
$ -- $ -- $ 240,026,253 $ 128,234
1. As of September 30, 2004, the Fund had $227,605,725 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, 2004,
details of the capital loss carryforwards were as follows:
EXPIRING
------------------------
2010 $ 83,673,627
2011 66,378,629
2012 77,553,469
-------------
Total $ 227,605,725
=============
2. The Fund had $586,393 of post-October foreign currency losses which were
deferred.
3. The Fund had $11,834,135 of post-October passive foreign investment company
losses which were deferred.
4. During the fiscal year ended September 30, 2004, the Fund did not utilize any
capital loss carryforward.
5. During the fiscal year ended September 30, 2003, the Fund did not utilize any
capital loss carryforward.
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, 2004. Net assets of
the Fund were unaffected by the reclassifications.
REDUCTION TO
REDUCTION TO ACCUMULATED NET
REDUCTION TO ACCUMULATED NET REALIZED LOSS
PAID-IN CAPITAL INVESTMENT LOSS ON INVESTMENTS
---------------------------------------------------
$ 16,506,607 $ 3,004,060 $ 13,502,547
38 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
The tax character of distributions paid during the years ended September 30,
2004 and September 30, 2003 was as follows:
YEAR ENDED YEAR ENDED
SEPTEMBER 30, 2004 SEPTEMBER 30, 2003
------------------------------------------------------------------
Distributions paid from:
Ordinary income $ -- $ 14,873,811
Return of capital -- 2,256,434
-------------------------
Total $ -- $ 17,130,245
=========================
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, 2004 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.
Federal tax cost of securities $ 2,719,370,019
================
Gross unrealized appreciation $ 559,613,092
Gross unrealized depreciation (559,741,326)
----------------
Net unrealized depreciation $ (128,234)
================
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, 2004, the Fund's projected benefit obligations were increased by
$40,958 and payments of $29,668 were made to retired trustees, resulting in an
accumulated liability of $454,625 as of September 30, 2004.
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.
For purposes of determining the amount owed to the Trustee under the plan,
deferred amounts are treated as though equal dollar amounts had been invested in
shares of the Fund or in other Oppenheimer funds selected by the Trustee. The
Fund purchases shares of the funds selected for deferral by the Trustee in
amounts equal to his or her deemed investment, resulting in a Fund asset equal
to the deferred compensation liability. Such assets are included as a component
of "Other" within the asset section of the Statement of Assets and Liabilities.
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.
39 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations,
are recorded on the ex-dividend date. 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, if applicable,
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 U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of income and expenses during the reporting
period. Actual results could differ from those estimates.
- --------------------------------------------------------------------------------
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, 2004 YEAR ENDED SEPTEMBER 30, 2003
SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------------
CLASS A
Sold 21,621,658 $ 573,487,391 11,916,203 $ 216,100,084
Dividends and/or
distributions reinvested -- -- 678,297 11,870,200
Redeemed (15,204,030) (394,851,735) (16,310,647) (280,547,796)
--------------------------------------------------------------
Net increase (decrease) 6,417,628 $ 178,635,656 (3,716,147) $ (52,577,512)
==============================================================
- -----------------------------------------------------------------------------------------
CLASS B
Sold 4,237,789 $ 108,712,948 3,326,912 $ 57,161,347
Dividends and/or
distributions reinvested -- -- 131,897 2,262,045
Redeemed (7,131,838) (181,604,296) (8,402,647) (139,756,156)
--------------------------------------------------------------
Net decrease (2,894,049) $ (72,891,348) (4,943,838) $ (80,332,764)
==============================================================
40 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
YEAR ENDED SEPTEMBER 30, 2004 YEAR ENDED SEPTEMBER 30, 2003
SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------------
CLASS C
Sold 3,105,310 $ 79,586,392 2,524,449 $ 44,906,958
Dividends and/or
distributions reinvested -- -- 69,591 1,194,190
Redeemed (3,303,209) (83,422,104) (4,413,256) (73,121,327)
--------------------------------------------------------------
Net decrease (197,899) $ (3,835,712) (1,819,216) $ (27,020,179)
==============================================================
- -----------------------------------------------------------------------------------------
CLASS N
Sold 955,663 $ 24,957,737 619,077 $ 11,010,107
Dividends and/or
distributions reinvested -- -- 10,164 176,447
Redeemed (414,966) (10,652,737) (281,294) (5,079,921)
--------------------------------------------------------------
Net increase 540,697 $ 14,305,000 347,947 $ 6,106,633
==============================================================
- -----------------------------------------------------------------------------------------
CLASS Y
Sold 489,607 $ 13,193,036 248,140 $ 4,594,560
Dividends and/or
distributions reinvested -- -- 5,575 97,241
Redeemed (231,470) (5,945,149) (142,045) (2,573,649)
--------------------------------------------------------------
Net increase 258,137 $ 7,247,887 111,670 $ 2,118,152
==============================================================
- --------------------------------------------------------------------------------
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, 2004, were
$1,561,474,386 and $1,382,792,877, 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.
- --------------------------------------------------------------------------------
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, 2004, the Fund paid
$6,213,436 to OFS for services to the Fund.
Additionally, Class Y shares are subject to minimum fees of $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.
41 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued
DISTRIBUTION AND SERVICE PLAN (12b-1) FEES. Under its General Distributor's
Agreement with the Fund, OppenheimerFunds Distributor, Inc. (the Distributor)
acts as the Fund's principal underwriter in the continuous public offering of
the Fund's classes of shares.
- --------------------------------------------------------------------------------
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. The Distributor currently uses all of those fees to
pay dealers, brokers, banks and other financial institutions quarterly for
providing personal services and maintenance of accounts of their customers that
hold Class A shares. Any unreimbursed expenses the Distributor incurs with
respect to Class A shares in any fiscal year cannot be recovered in subsequent
years. Fees incurred by the Fund under the Plan are detailed in the Statement of
Operations.
- --------------------------------------------------------------------------------
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 to compensate the Distributor for its services in connection with the
distribution of those shares and servicing accounts. Under the plans, the Fund
pays the Distributor an annual asset-based sales charge of 0.75% per year on
Class B and Class C shares and 0.25% per year on Class N shares. The Distributor
also receives a service fee of up to 0.25% per year under each plan. If either
the Class B, Class C or Class N plan is terminated by the Fund or by the
shareholders of a class, the Board of Trustees and its independent trustees must
determine whether the Distributor shall be entitled to payment from the Fund of
all or a portion of the service fee and/or asset-based sales charge in respect
to shares sold prior to the effective date of such termination. The
Distributor's aggregate uncompensated expenses under the plan at September 30,
2004 for Class B, Class C and Class N shares were $17,852,997, $6,273,612 and
$365,266, respectively. Fees incurred by the Fund under the plans are detailed
in the Statement of Operations.
- --------------------------------------------------------------------------------
SALES CHARGES. Front-end sales charges and contingent deferred sales charges
(CDSC) do not represent expenses of the Fund. They are deducted from the
proceeds of sales of Fund shares prior to investment or from redemption proceeds
prior to remittance, as applicable. The sales charges retained by the
Distributor from the sale of shares and the CDSC retained by the Distributor on
the redemption of shares is shown in the table below for the period indicated.
CLASS A CLASS B CLASS C CLASS N
CLASS A CONTINGENT CONTINGENT CONTINGENT CONTINGENT
FRONT-END DEFERRED DEFERRED DEFERRED DEFERRED
SALES CHARGES SALES CHARGES SALES CHARGES SALES CHARGES SALES CHARGES
RETAINED BY RETAINED BY RETAINED BY RETAINED BY RETAINED BY
YEAR ENDED DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR
- --------------------------------------------------------------------------------------------------
September 30, 2004 $ 846,869 $ 17,822 $ 1,455,288 $ 47,121 $ 51,086
42 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
PAYMENTS AND WAIVERS OF EXPENSES. Following a review of its use of brokerage
commissions for sales that is permitted under its investment advisory agreement,
the Fund's Manager terminated that practice in July 2003. Subsequently, the
Manager paid the Fund $113,172, an amount equivalent to certain of such
commissions incurred in prior years.
OFS has voluntarily agreed to limit transfer and shareholder servicing
agent fees for all classes to 0.35% of average annual net assets per class.
During the year ended September 30, 2004, OFS waived $59,242, $39,168, $26,906
and $110 for Class A, Class B, Class C and Class N shares, respectively. This
undertaking may be amended or withdrawn at any time.
- --------------------------------------------------------------------------------
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 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 gains or losses. Such realized gains and losses are
reported with all other foreign currency gains and losses in the Statement of
Operations.
As of September 30, 2004, the Fund had outstanding foreign currency contracts as
follows:
CONTRACT VALUATION
EXPIRATION AMOUNT AS OF UNREALIZED UNREALIZED
CONTRACT DESCRIPTION DATES (000S) SEPT. 30, 2004 APPRECIATION DEPRECIATION
- -----------------------------------------------------------------------------------------------------
CONTRACTS TO PURCHASE
Hong Kong Dollar [HKD] 10/4/04 85HKD $ 10,878 $ 4 $ --
-------------------
CONTRACTS TO SELL
Danish Krone [DKK] 10/1/04-10/4/04 22,313DKK 3,728,694 -- 35,057
-------------------
Total unrealized appreciation and depreciation $ 4 $ 35,057
===================
43 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
6. ILLIQUID OR RESTRICTED SECURITIES
As of September 30, 2004, 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 will not invest 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, 2004 was $1,292,180, which represents 0.05% of
the Fund's net assets, of which $1,292,000 is considered restricted. Information
concerning restricted securities is as follows:
ACQUISITION VALUATION AS OF UNREALIZED
SECURITY DATE COST SEPTEMBER 30, 2004 DEPRECIATION
- --------------------------------------------------------------------------------------
STOCKS AND/OR WARRANTS
Neurogen Corp. 6/26/00 $ 5,000,000 $ 1,292,000 $ 3,708,000
- --------------------------------------------------------------------------------
7. LITIGATION
Six complaints have been filed as putative derivative and class actions against
the Manager, OFS and the Distributor (collectively, "OppenheimerFunds"), as well
as 51 of the Oppenheimer funds (collectively, the "Funds") including this Fund,
and nine Directors/ Trustees of certain of the Funds (collectively, the
"Directors/Trustees"). The complaints allege that the Manager charged excessive
fees for distribution and other costs, improperly used assets of the Funds in
the form of directed brokerage commissions and 12b-1 fees to pay brokers to
promote sales of the Funds, and failed to properly disclose the use of Fund
assets to make those payments in violation of the Investment Company Act of 1940
and the Investment Advisers Act of 1940. The complaints further allege that by
permitting and/or participating in those actions, the Directors/Trustees
breached their fiduciary duties to Fund shareholders under the Investment
Company Act of 1940 and at common law. By order dated October 27, 2004, these
six actions, and future related actions, were consolidated by the U.S. District
Court for the Southern District of New York into a single consolidated
proceeding in contemplation of the filing of a superceding consolidated and
amended complaint.
OppenheimerFunds believes that it is premature to render any opinion as to
the likelihood of an outcome unfavorable to them, the Funds or the
Directors/Trustees and that no estimate can yet be made with any degree of
certainty as to the amount or range of any potential loss. However,
OppenheimerFunds, the Funds and the Directors/Trustees believe that the
allegations contained in the complaints are without merit and intend to defend
these lawsuits vigorously.
44 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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, including the statement of investments,
as of September 30, 2004, 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 the standards of the Public
Company Accounting Oversight Board (United States). 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, 2004, by correspondence
with the custodian and brokers 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, 2004, 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 U.S. generally
accepted accounting principles.
KPMG LLP
Denver, Colorado
October 21, 2004
45 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
FEDERAL INCOME TAX INFORMATION Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
In early 2005, if applicable, shareholders of record will receive information
regarding all dividends and distributions paid to them by the Fund during
calendar year 2004. Regulations of the U.S. Treasury Department require the Fund
to report this information to the Internal Revenue Service.
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; UPDATES TO STATEMENTS OF
INVESTMENTS 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
1.800.525.7048, (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 is 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 Fund's Form N-PX
filing is available (i) without charge, upon request, by calling the Fund
toll-free at 1.800.525.7048, and (ii) on the SEC's website at www.sec.gov.
The Fund files its complete schedule of portfolio holdings with the SEC
for the first quarter and the third quarter of each fiscal year on Form N-Q. The
Fund's Form N-Q filings are available on the SEC's website at www.sec.gov. Those
forms may be reviewed and copied at the SEC's Public Reference Room in
Washington D.C. Information on the operation of the Public Reference Room may be
obtained by calling 1-800-SEC-0330.
46 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
TRUSTEES AND OFFICERS Unaudited
- --------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------
NAME, POSITION(S) HELD WITH PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS; OTHER TRUSTEESHIPS/DIRECTORSHIPS HELD
FUND, LENGTH OF SERVICE, AGE BY TRUSTEE; NUMBER OF PORTFOLIOS IN FUND COMPLEX CURRENTLY OVERSEEN BY TRUSTEE
INDEPENDENT THE ADDRESS OF EACH TRUSTEE IN THE CHART BELOW IS 6803 S. TUCSON WAY,
TRUSTEES CENTENNIAL, CO 80112-3924. EACH TRUSTEE SERVES FOR AN INDEFINITE TERM, UNTIL
HIS OR HER RESIGNATION, RETIREMENT, DEATH OR REMOVAL.
CLAYTON K. YEUTTER, Of Counsel (since June 1993) Hogan & Hartson (a law firm); a director (since
Chairman of the Board 2002) of Danielson Holding Corp. Formerly a director of Weyerhaeuser Corp.
of Trustees (since 2003); (1999-April 2004), Caterpillar, Inc. (1993-December 2002), ConAgra Foods
Trustee (since 1993) (1993-2001), Texas Instruments (1993-2001) and FMC Corporation (1993-2001).
Age: 73 Oversees 25 portfolios in the OppenheimerFunds complex.
ROBERT G. GALLI, A trustee or director of other Oppenheimer funds. Oversees 35 portfolios in
Trustee (since 1993) the OppenheimerFunds complex.
Age: 71
PHILLIP A. GRIFFITHS, A director (since 1991) of the Institute for Advanced Study, Princeton, N.J.,
Trustee (since 1999) a director (since 2001) of GSI Lumonics, a trustee (since 1983) of Woodward
Age: 66 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). Oversees 25 portfolios in the
OppenheimerFunds complex.
MARY F. MILLER, Formerly a Senior Vice President and General Auditor, American Express Company
Trustee (since 2004) (July 1998-February 2003). Member of Trustees of the American Symphony
Age: 62 Orchestra (October 1998 to present). Oversees 14 portfolios in the
OppenheimerFunds complex.
JOEL W. MOTLEY, Director (since January 2002) Columbia Equity Financial Corp. (privately-held
Trustee (since 2002) financial adviser); Managing Director (since January 2002) Carmona Motley,
Age: 52 Inc. (privately-held financial adviser). Formerly a Managing Director of
Carmona Motley Hoffman Inc. (privately-held financial adviser) (January
1998-December 2001). Oversees 25 portfolios in the OppenheimerFunds complex.
KENNETH A. RANDALL, A director (since February 1972) of Dominion Resources, Inc. (electric utility
Trustee (since 1990) holding company); formerly a director of Prime Retail, Inc. (real estate
Age: 77 investment trust) and 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. Oversees 25 portfolios in the
OppenheimerFunds complex.
EDWARD V. REGAN, President, Baruch College, CUNY; a director of RBAsset (real estate manager);
Trustee (since 1993) a director of OffitBank; formerly Trustee, Financial Accounting Foundation
Age: 74 (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. Oversees 25 investment companies in the OppenheimerFunds
complex.
47 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
TRUSTEES AND OFFICERS Unaudited / Continued
- --------------------------------------------------------------------------------
RUSSELL S. REYNOLDS, JR., Chairman (since 1993) of The Directorship Search Group, Inc. (corporate
Trustee (since 1990) governance consulting and executive recruiting); a Life Trustee of
Age: 72 International House (non-profit educational organization); a former trustee of
The Historical Society of the Town of Greenwich. Oversees 25 portfolios in the
OppenheimerFunds complex.
DONALD W. SPIRO, * Chairman Emeritus (since January 1991) of the Manager. Formerly a director
Vice Chairman of (January 1969-August 1999) of the Manager. Oversees 25 portfolios in the
the Board of Trustees, OppenheimerFunds complex.
Trustee (since 1985)
Age: 78
* Mr. Spiro is expected to retire as Trustee of the Board I Funds effective
October 31, 2004.
- -----------------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEE THE ADDRESS OF MR. MURPHY IN THE CHART BELOW IS TWO WORLD FINANCIAL CENTER,
AND OFFICER 225 LIBERTY STREET, 11TH FLOOR, NEW YORK, NY 10281-1008. MR. MURPHY SERVES FOR
AN INDEFINITE TERM, UNTIL HIS RESIGNATION, DEATH OR REMOVAL.
JOHN V. MURPHY, Chairman, Chief Executive Officer and director (since June 2001) and President
President and Trustee (since September 2000) of the Manager; President and a director or trustee of
(since 2001) other Oppenheimer funds; President and a director (since July 2001) of
Age: 55 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 following investment advisory
subsidiaries of the Manager: OFI Institutional Asset Management, Inc.,
Centennial Asset Management Corporation, Trinity Investment Management
Corporation and Tremont Capital Management, Inc. (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.; 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 Babson
Capital Management LLC); a member of the Investment Company Institute's Board
of Governors (elected to serve from October 3, 2003 through September 30,
2006). 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 74 portfolios as
Trustee/Director and 10 portfolios as Officer in the OppenheimerFunds complex.
48 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
- -----------------------------------------------------------------------------------------------------------------
OFFICERS THE ADDRESS OF THE OFFICERS IN THE CHART BELOW IS AS FOLLOWS: FOR MESSRS.
DISHMON, JENNINGS AND ZACK, TWO WORLD FINANCIAL CENTER, 225 LIBERTY STREET,
11TH FLOOR, NEW YORK, NY 10281-1008, AND FOR MR. WIXTED AND MR. VANDEHEY, 6803
S. TUCSON WAY, CENTENNIAL, CO 80112-3924. EACH OFFICER SERVES FOR AN
INDEFINITE TERM OR UNTIL HIS OR HER EARLIER RESIGNATION, DEATH OR REMOVAL.
FRANK V. JENNINGS, Vice President of the Manager since September 1995; an officer of 1 portfolio
Vice President and Portfolio in the OppenheimerFunds complex.
Manager (since 1995)
Age: 57
RANDALL DISHMON, Assistant Vice President of the Manager (since June 2001); formerly an
Assistant Vice President associate with Booz Allen & Hamilton (May 1998-June 2001); manager of
and Assistant Portfolio environmental affairs at UtiliCorp United, Inc. (January 1996-August 1999).
Manager (since 2004)
Age: 38
BRIAN W. WIXTED, Senior Vice President and Treasurer (since March 1999) of the Manager;
Treasurer (since 1999) Treasurer of HarbourView Asset Management Corporation, Shareholder Financial
Age: 45 Services, Inc., Shareholder Services, Inc., Oppenheimer Real Asset Management
Corporation, and Oppenheimer Partnership Holdings, Inc. (since March 1999), of
OFI Private Investments, Inc. (since March 2000), of OppenheimerFunds
International Ltd. and OppenheimerFunds plc (since May 2000), of OFI
Institutional Asset Management, Inc. (since November 2000), and of
OppenheimerFunds Legacy Program (a Colorado non-profit corporation) (since
June 2003); Treasurer and Chief Financial Officer (since May 2000) of OFI
Trust Company (a trust company subsidiary of the Manager); Assistant Treasurer
(since March 1999) of Oppenheimer Acquisition Corp. Formerly Assistant
Treasurer of Centennial Asset Management Corporation (March 1999-October 2003)
and OppenheimerFunds Legacy Program (April 2000-June 2003); Principal and
Chief Operating Officer (March 1995-March 1999) at Bankers Trust
Company-Mutual Fund Services Division. An officer of 84 portfolios in the
OppenheimerFunds complex.
ROBERT G. ZACK, Executive Vice President (since January 2004) and General Counsel (since
Secretary (since 2001) February 2002) of the Manager; General Counsel and a director (since November
Age: 56 2001) of the Distributor; General Counsel (since November 2001) of Centennial
Asset Management Corporation; Senior Vice President and General Counsel (since
November 2001) of HarbourView Asset Management Corporation; Secretary and
General Counsel (since November 2001) of Oppenheimer Acquisition Corp.;
Assistant Secretary and a director (since October 1997) of OppenheimerFunds
International Ltd. and OppenheimerFunds plc; Vice President and a director
(since November 2001) of Oppenheimer Partnership Holdings, Inc.; a director
(since November 2001) of Oppenheimer Real Asset Management, Inc.; Senior Vice
President, General Counsel and a director (since November 2001) of Shareholder
Financial Services, Inc., Shareholder Services, Inc., OFI Private Investments,
Inc. and OFI Trust Company; Vice President (since November 2001) of
OppenheimerFunds Legacy Program; Senior Vice President and General Counsel
(since November 2001) of OFI Institutional Asset Management, Inc.; a director
(since June 2003) of OppenheimerFunds (Asia) Limited. Formerly Senior Vice
President (May 1985-December 2003), 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); and OppenheimerFunds International Ltd. (October
1997-November 2001). An officer of 84 portfolios in the OppenheimerFunds
complex.
49 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
TRUSTEES AND OFFICERS Unaudited / Continued
- --------------------------------------------------------------------------------
MARK S. VANDEHEY, Senior Vice President and Chief Compliance Officer (since March 2004) of the
Vice President and Manager; Vice President (since June 1983) of OppenheimerFunds Distributor,
Chief Compliance Officer Inc., Centennial Asset Management Corporation and Shareholder Services, Inc.
(since 2004) Formerly (until February 2004) Vice President and Director of Internal Audit
Age: 54 of OppenheimerFunds, Inc. An officer of 84 portfolios in the Oppenheimer funds
complex.
THE FUND'S STATEMENT OF ADDITIONAL INFORMATION CONTAINS ADDITIONAL INFORMATION
ABOUT THE FUND'S TRUSTEES AND IS AVAILABLE WITHOUT CHARGE UPON REQUEST, BY
CALLING 1.800.525.7048.
50 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
ITEM 2. CODE OF ETHICS
The registrant has adopted a code of ethics that applies to the
registrant's principal executive officer, principal financial officer, principal
accounting officer or controller or persons performing similar functions.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
The Board of Trustees of the registrant 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
(a) Audit Fees
The principal accountant for the audit of the registrant's annual
financial statements billed $28,000 in fiscal 2004 and $25,000 in
fiscal 2003.
(b) Audit-Related Fees
The principal accountant for the audit of the registrant's annual
financial statements billed no such fees to the registrant during
the last two fiscal years.
The principal accountant for the audit of the registrant's annual
financial statements billed $44,500 in fiscal 2004 and no such fees
in fiscal 2003 to the registrant's investment adviser or any entity
controlling, controlled by, or under common control with the adviser
that provides ongoing services to the registrant.
Such fees would include, among others: due diligence related to
mergers and acquisitions, accounting consultations and audits in
connection with acquisitions, internal control reviews and
consultation concerning financial accounting and reporting
standards.
(c) Tax Fees
The principal accountant for the audit of the registrant's annual
financial statements billed $3,365 to the registrant in fiscal 2004
and no such fees in fiscal 2003.
The principal accountant for the audit of the registrant's annual
financial statements billed $6,000 in fiscal 2004 and $5,000 in
fiscal 2003 to the registrant's investment adviser or any entity
controlling, controlled by, or under common control with the adviser
that provides ongoing services to the registrant.
Such fees would include, among others: tax compliance, tax planning
and tax advice. Tax compliance generally involves preparation of
original and amended tax returns,
claims for a refund and tax payment-planning services. Tax planning
and tax advice includes assistance with tax audits and appeals, tax
advice related to mergers and acquisitions and requests for rulings
or technical advice from taxing authorities.
(d) All Other Fees
The principal accountant for the audit of the registrant's annual
financial statements billed no such fees in fiscal 2004 and $438 in
fiscal 2003.
The principal accountant for the audit of the registrant's annual
financial statements billed no such fees during the last two fiscal
years to the registrant's investment adviser or any entity
controlling, controlled by, or under common control with the adviser
that provides ongoing services to the registrant.
Such fees would include consultations regarding the registrant's
retirement plan with respect to its directors.
(e) (1) During its regularly scheduled periodic meetings, the
registrant's audit committee will pre-approve all audit,
audit-related, tax and other services to be provided by the
principal accountants of the registrant.
The audit committee has delegated pre-approval authority to its
Chairman for any subsequent new engagements that arise between
regularly scheduled meeting dates provided that any fees such
pre-approved are presented to the audit committee at its next
regularly scheduled meeting.
Pre-approval of non-audit services is waived provided that: 1) the
aggregate amount of all such services provided constitutes no more
than five percent of the total amount of fees paid by the registrant
to it principal accountant during the fiscal year in which services
are provided 2) such services were not recognized by the registrant
at the time of engagement as non-audit services and 3) such services
are promptly brought to the attention of the audit committee of the
registrant and approved prior to the completion of the audit.
(2) 100%
(f) Not applicable as less than 50%.
(g) The principal accountant for the audit of the registrant's annual
financial statements billed $53,865 in fiscal 2004 and $5,438 in
fiscal 2003 to the registrant and the registrant's investment
adviser or any entity controlling, controlled by, or under common
control with the adviser that provides ongoing services to the
registrant related to non-audit fees. Those billings did not include
any prohibited non-audit services as defined by the Securities
Exchange Act of 1934.
(h) The registrant's audit committee of the board of directors has
considered whether the provision of non-audit services that were
rendered to the registrant's investment adviser, and any entity
controlling, controlled by, or under common control with the
investment adviser that provides ongoing services to the registrant
that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule
2-01 of Regulation S-X is
compatible with maintaining the principal account's independence. No
such services were rendered.
ITEM 5. NOT APPLICABLE
ITEM 6. SCHEDULE OF INVESTMENTS
Not applicable
ITEM 7. NOT APPLICABLE
ITEM 8. NOT APPLICABLE
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
At a meeting of the Board of Trustees of the registrant held on February
18, 2004, the Board adopted (1) a policy that, should the Board determine that a
vacancy exists or is likely to exist on the Board, the Governance Committee of
the Board, which is comprised entirely of independent trustees, shall consider
any candidates for Board membership recommended by the registrant's security
holders and (2) a policy that security holders wishing to submit a nominee for
election to the Board may do so by mailing their submission to the offices of
OppenheimerFunds, Inc., Two World Financial Center, 225 Liberty Street - 11th
Floor, New York, NY 10281-1008, to the attention of the Chair of the Governance
Committee. Prior to February 18, 2004, the Board did not have a formalized
policy with respect to consideration of security holder nominees or a procedure
by which security holders may make their submissions. In addition to security
holder nominees, the Governance Committee may also consider nominees recommended
by independent Board members or recommended by any other Board members and is
authorized under its Charter, upon Board approval, to retain an executive search
firm to assist in screening potential candidates. Upon Board approval, the
Governance Committee may also obtain legal, financial, or other external counsel
that may be necessary or desirable in the screening process.
ITEM 10. 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, 2004,
registrant's principal executive officer and principal financial
officer found registrant's disclosure controls and procedures to
provide reasonable assurances 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 over financial reporting that occurred during the
registrant's last fiscal half-year that has materially affected, or
is reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 11. EXHIBITS.
(A) EXHIBIT ATTACHED HERETO. (ATTACH CODE OF ETHICS AS EXHIBIT)(NOT
APPLICABLE TO SEMIANNUAL REPORTS)
(B) EXHIBITS ATTACHED HERETO. (ATTACH CERTIFICATIONS AS EXHIBITS)