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, 2004 - MARCH 31, 2005
ITEM 1. REPORTS TO STOCKHOLDERS.
TOP HOLDINGS AND ALLOCATIONS
- --------------------------------------------------------------------------------
TOP TEN COMMON STOCK HOLDINGS
- --------------------------------------------------------------------------------
Advanced Micro Devices, Inc. 5.9%
- --------------------------------------------------------------------------------
Nektar Therapeutics 5.3
- --------------------------------------------------------------------------------
Merck & Co., Inc. 2.1
- --------------------------------------------------------------------------------
Nestle SA 1.9
- --------------------------------------------------------------------------------
Siemens AG 1.5
- --------------------------------------------------------------------------------
Electrocomponents plc 1.5
- --------------------------------------------------------------------------------
Hennes & Mauritz AB, B Shares 1.4
- --------------------------------------------------------------------------------
Pfizer, Inc. 1.3
- --------------------------------------------------------------------------------
Novozymes AS, B Shares 1.2
- --------------------------------------------------------------------------------
Iberdrola SA 1.2
Portfolio holdings and allocations are subject to change. Percentages are as of
March 31, 2005, and are based on net assets.
For more current Fund holdings, please visit www.oppenheimerfunds.com.
TOP TEN GEOGRAPHICAL HOLDINGS
- --------------------------------------------------------------------------------
United States 57.9%
- --------------------------------------------------------------------------------
Japan 9.5
- --------------------------------------------------------------------------------
Sweden 4.6
- --------------------------------------------------------------------------------
United Kingdom 4.5
- --------------------------------------------------------------------------------
Germany 4.3
- --------------------------------------------------------------------------------
France 4.1
- --------------------------------------------------------------------------------
Switzerland 4.1
- --------------------------------------------------------------------------------
Italy 3.0
- --------------------------------------------------------------------------------
Denmark 2.3
- --------------------------------------------------------------------------------
Spain 2.1
Portfolio holdings and allocations are subject to change. Percentages are as of
March 31, 2005, and are based on total investments.
9 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
TOP HOLDINGS AND ALLOCATIONS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
REGIONAL ALLOCATION
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
United States/Canada 58.9%
Europe 31.0
Asia 9.8
Middle East/Africa 0.3
Portfolio holdings and allocations are subject to change. Percentages are as of
March 31, 2005, and are based on total investments.
10 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
NOTES
- --------------------------------------------------------------------------------
Total returns include changes in share price and reinvestment of dividends and
capital gains distributions in a hypothetical investment for the periods shown.
Cumulative total returns are not annualized. The Fund's total returns shown do
not 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 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.
11 | 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 March 31, 2005.
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
12 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
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
(10/1/04) (3/31/05) MARCH 31, 2005
- --------------------------------------------------------------------------------
Class A Actual $1,000.00 $1,177.60 $ 6.31
- --------------------------------------------------------------------------------
Class A Hypothetical 1,000.00 1,019.15 5.86
- --------------------------------------------------------------------------------
Class B Actual 1,000.00 1,172.70 10.83
- --------------------------------------------------------------------------------
Class B Hypothetical 1,000.00 1,015.01 10.05
- --------------------------------------------------------------------------------
Class C Actual 1,000.00 1,172.50 10.55
- --------------------------------------------------------------------------------
Class C Hypothetical 1,000.00 1,015.26 9.79
- --------------------------------------------------------------------------------
Class N Actual 1,000.00 1,175.30 8.16
- --------------------------------------------------------------------------------
Class N Hypothetical 1,000.00 1,017.45 7.57
- --------------------------------------------------------------------------------
Class Y Actual 1,000.00 1,179.20 4.63
- --------------------------------------------------------------------------------
Class Y Hypothetical 1,000.00 1,020.69 4.29
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 182/365
(to reflect the one-half year period). Those annualized expense ratios based on
the 6-month period ended March 31, 2005 are as follows:
CLASS EXPENSE RATIOS
- -------------------------
Class A 1.16%
- -------------------------
Class B 1.99
- -------------------------
Class C 1.94
- -------------------------
Class N 1.50
- -------------------------
Class Y 0.85
- --------------------------------------------------------------------------------
13 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
STATEMENT OF INVESTMENTS March 31, 2005 / Unaudited
- --------------------------------------------------------------------------------
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
COMMON STOCKS--73.6%
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY--5.9%
- --------------------------------------------------------------------------------
AUTOMOBILES--0.8%
Bayerische Motoren
Werke AG 200,000 $ 9,071,465
- --------------------------------------------------------------------------------
Hero Honda
Motors Ltd. 625,825 7,854,516
- --------------------------------------------------------------------------------
Porsche AG, Preferred 10,000 7,272,209
--------------
24,198,190
- --------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE--0.3%
Accor SA 200,000 9,789,612
- --------------------------------------------------------------------------------
INTERNET & CATALOG RETAIL--0.1%
Amazon.com, Inc. 1 100,000 3,427,000
- --------------------------------------------------------------------------------
MEDIA--0.7%
Toei Animation
Co. Ltd. 200,000 7,721,720
- --------------------------------------------------------------------------------
Wiley (John) & Sons,
Inc., Cl. A 400,000 14,100,000
--------------
21,821,720
- --------------------------------------------------------------------------------
MULTILINE RETAIL--0.6%
Karstadt Quelle AG 2,000,000 20,092,555
- --------------------------------------------------------------------------------
SPECIALTY RETAIL--2.4%
Hennes & Mauritz
AB, B Shares 1,300,000 44,676,067
- --------------------------------------------------------------------------------
Industria de Diseno
Textil SA 1,000,000 29,905,500
--------------
74,581,567
- --------------------------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS--1.0%
Luxottica Group SpA 1,502,121 30,730,534
- --------------------------------------------------------------------------------
CONSUMER STAPLES--6.6%
- --------------------------------------------------------------------------------
BEVERAGES--0.9%
Ito En Ltd. 600,000 29,152,289
- --------------------------------------------------------------------------------
FOOD & STAPLES RETAILING--0.5%
FamilyMart Co. 500,000 14,734,682
- --------------------------------------------------------------------------------
FOOD PRODUCTS--2.9%
Ajinomoto Co., Inc. 1,500,000 18,297,118
- --------------------------------------------------------------------------------
Nestle SA 220,000 60,176,362
- --------------------------------------------------------------------------------
Thorntons plc 2 4,300,000 12,920,234
--------------
91,393,714
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS--0.7%
Kao Corp. 1,000,000 $ 22,914,408
- --------------------------------------------------------------------------------
PERSONAL PRODUCTS--1.6%
L'Oreal SA 300,000 24,013,844
- --------------------------------------------------------------------------------
Shiseido Co. Ltd. 2,000,000 26,391,868
--------------
50,405,712
- --------------------------------------------------------------------------------
FINANCIALS--9.2%
- --------------------------------------------------------------------------------
COMMERCIAL BANKS--3.2%
Banco Comercial
Portugues SA 12,000,000 32,666,606
- --------------------------------------------------------------------------------
Nordbanken
Holding AB 3,500,000 35,391,534
- --------------------------------------------------------------------------------
Sumitomo Trust
& Banking Co. Ltd.
(The) 5,000,000 32,593,491
--------------
100,651,631
- --------------------------------------------------------------------------------
CONSUMER FINANCE--1.1%
Mediobanca SpA 2,003,300 34,772,030
- --------------------------------------------------------------------------------
INSURANCE--3.4%
Assicurazioni
Generali SpA 1,000,000 32,277,718
- --------------------------------------------------------------------------------
Aviva plc 2,036,886 24,442,478
- --------------------------------------------------------------------------------
Chubb Corp. 200,000 15,854,000
- --------------------------------------------------------------------------------
Prudential
Financial, Inc. 300,000 17,220,000
- --------------------------------------------------------------------------------
UnumProvident
Corp. 1,000,000 17,020,000
--------------
106,814,196
- --------------------------------------------------------------------------------
REAL ESTATE--1.5%
Mitsubishi Estate
Co. Ltd. 3,000,000 34,859,647
- --------------------------------------------------------------------------------
Solidere, GDR 1,3 1,000,000 11,000,000
--------------
45,859,647
- --------------------------------------------------------------------------------
HEALTH CARE--21.7%
- --------------------------------------------------------------------------------
BIOTECHNOLOGY--6.5%
Affymetrix, Inc. 1 300,000 12,852,000
- --------------------------------------------------------------------------------
Alexion
Pharmaceuticals, Inc. 1 1,000,000 21,665,000
- --------------------------------------------------------------------------------
Chiron Corp. 1 1,000,000 35,060,000
14 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
BIOTECHNOLOGY Continued
Gilead Sciences, Inc. 1 1,000,000 $ 35,800,000
- --------------------------------------------------------------------------------
Myriad Genetics, Inc. 1 1,000,000 18,390,000
- --------------------------------------------------------------------------------
Neurogen Corp. 1 1,502,900 10,640,532
- --------------------------------------------------------------------------------
Q-Med AB 999,975 29,698,447
- --------------------------------------------------------------------------------
Telik, Inc. 1 500,000 7,540,000
- --------------------------------------------------------------------------------
Wyeth 800,000 33,744,000
--------------
205,389,979
- --------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES--4.0%
Analogic Corp. 2 700,000 30,275,000
- --------------------------------------------------------------------------------
bioMerieux 1 647,900 28,673,121
- --------------------------------------------------------------------------------
Carl Zeiss
Meditec AG 1 500,000 10,312,018
- --------------------------------------------------------------------------------
Elekta AB, B Shares 1 600,000 21,637,981
- --------------------------------------------------------------------------------
GN Store Nord AS 3,000,000 34,450,960
--------------
125,349,080
- --------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES--0.8%
Nicox SA 1,2 5,077,849 26,790,306
- --------------------------------------------------------------------------------
PHARMACEUTICALS--10.4%
Merck & Co., Inc. 2,000,000 64,740,000
- --------------------------------------------------------------------------------
Nektar
Therapeutics 1,2 12,000,000 167,280,000
- --------------------------------------------------------------------------------
Pfizer, Inc. 1,500,000 39,405,000
- --------------------------------------------------------------------------------
Roche Holdings AG 100,000 10,715,480
- --------------------------------------------------------------------------------
UCB SA 700,000 33,873,456
- --------------------------------------------------------------------------------
Vicuron
Pharmaceuticals,
Inc. 1 700,000 11,032,000
--------------
327,045,936
- --------------------------------------------------------------------------------
INDUSTRIALS--11.0%
- --------------------------------------------------------------------------------
AEROSPACE & DEFENSE--0.7%
Bombardier, Inc.,
Cl. B 10,000,000 22,323,274
- --------------------------------------------------------------------------------
AIRLINES--2.7%
Continental Airlines,
Inc., Cl. B 1 2,000,000 24,080,000
- --------------------------------------------------------------------------------
easyJet plc 1,4 8,000,000 32,617,117
- --------------------------------------------------------------------------------
JetBlue Airways
Corp. 1 1,500,000 28,560,000
--------------
85,257,117
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES--1.1%
Secom Co. Ltd. 800,000 $ 33,274,270
- --------------------------------------------------------------------------------
CONSTRUCTION & ENGINEERING--0.7%
JGC Corp. 2,000,000 21,822,251
- --------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--1.8%
ABB Ltd. 1 5,000,000 30,958,116
- --------------------------------------------------------------------------------
Alstom 1 10,000,000 8,555,540
- --------------------------------------------------------------------------------
Schneider Electric SA 200,000 15,672,193
--------------
55,185,849
- --------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES--1.5%
Siemens AG 600,000 47,343,246
- --------------------------------------------------------------------------------
MACHINERY--1.5%
Danaher Corp. 400,000 21,364,000
- --------------------------------------------------------------------------------
Dover Corp. 400,000 15,116,000
- --------------------------------------------------------------------------------
IWKA AG 500,000 12,282,385
--------------
48,762,385
- --------------------------------------------------------------------------------
ROAD & RAIL--1.0%
Union Pacific Corp. 200,000 13,940,000
- --------------------------------------------------------------------------------
Yellow Roadway
Corp. 1 300,000 17,562,000
--------------
31,502,000
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY--10.7%
- --------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT--0.1%
Telefonaktiebolaget
LM Ericsson,
B Shares 1 1,000,000 2,814,352
- --------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS--1.9%
Electrocomponents
plc 10,000,000 46,771,359
- --------------------------------------------------------------------------------
Shimadzu Corp. 2,000,000 11,936,958
--------------
58,708,317
- --------------------------------------------------------------------------------
OFFICE ELECTRONICS--0.5%
Canon, Inc. 300,000 16,086,916
- --------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT--7.2%
Advanced Micro
Devices, Inc. 1 11,468,800 184,877,056
- --------------------------------------------------------------------------------
Cree, Inc. 1 805,700 17,523,975
- --------------------------------------------------------------------------------
Texas Instruments,
Inc. 1,000,000 25,490,000
--------------
227,891,031
15 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
SOFTWARE--1.0%
Autonomy Corp. plc 1 3,002,346 $ 10,439,588
- --------------------------------------------------------------------------------
Nintendo Co. Ltd. 200,000 21,822,251
--------------
32,261,839
- --------------------------------------------------------------------------------
MATERIALS--7.3%
- --------------------------------------------------------------------------------
CHEMICALS--6.2%
Agrium, Inc. 500,000 9,125,000
- --------------------------------------------------------------------------------
Bayer AG 1,000,000 33,055,494
- --------------------------------------------------------------------------------
Ciba Specialty
Chemicals AG 200,000 12,938,816
- --------------------------------------------------------------------------------
Clariant AG 1,000,002 17,260,148
- --------------------------------------------------------------------------------
Eastman
Chemical Co. 600,000 35,400,000
- --------------------------------------------------------------------------------
Imperial Chemical
Industries plc 4,000,000 20,220,345
- --------------------------------------------------------------------------------
Kuraray Co. Ltd. 2,000,000 17,849,482
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
CHEMICALS Continued
Novozymes AS,
B Shares 800,000 $ 39,253,215
- --------------------------------------------------------------------------------
Symyx
Technologies, Inc. 1 500,000 11,025,000
--------------
196,127,500
- --------------------------------------------------------------------------------
CONSTRUCTION MATERIALS--0.6%
Lafarge SA 200,000 19,366,631
- --------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS--0.5%
Holmen AB, B Shares 500,000 15,733,499
- --------------------------------------------------------------------------------
UTILITIES--1.2%
- --------------------------------------------------------------------------------
ELECTRIC UTILITIES--1.2%
Iberdrola SA 1,500,000 39,238,817
--------------
Total Common Stocks
(Cost $2,140,883,751) 2,319,614,082
DATE STRIKE CONTRACTS
- -----------------------------------------------------------------------------------------------------------
OPTIONS PURCHASED--0.0%
- -----------------------------------------------------------------------------------------------------------
Crude Oil Futures, 5/20/05 Put 1 5/17/05 $45.50 250 47,500
- -----------------------------------------------------------------------------------------------------------
Crude Oil Futures, 5/20/05 Put 1 5/17/05 46.50 450 117,000
- -----------------------------------------------------------------------------------------------------------
Crude Oil Futures, 5/20/05 Put 1 5/17/05 47.50 100 36,000
----------------
Total Options Purchased (Cost $3,540,501) 200,500
PRINCIPAL
AMOUNT
- -----------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS--29.6% 5
Repurchase agreement (Principal Amount/Value $465,500,000,
with a maturity value of $465,533,878) with Cantor Fitzgerald
& Co./Cantor Fitzgerald Securities, 2.62%, dated 3/31/05, to
be repurchased at $465,533,878 on 4/1/05, collateralized by
U.S. Treasury Bonds, 2.50%--2.75%, 5/31/06--6/30/06, with a
value of $475,172,378 $ 465,500,000 465,500,000
- -----------------------------------------------------------------------------------------------------------
Undivided interest of 34.12% in joint repurchase agreement
(Principal Amount/Value $1,365,685,000, with a maturity value
of $1,365,789,323) with UBS Warburg LLC, 2.75%, dated
3/31/05, to be repurchased at $465,970,592 on 4/1/05,
collateralized by Federal National Mortgage Assn., 5%--6%,
2/1/34--8/1/34, with a value of $1,394,346,245 465,935,000 465,935,000
----------------
Total Repurchase Agreements (Cost $931,435,000) 931,435,000
- -----------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $3,075,859,252) 103.2% 3,251,249,582
- -----------------------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS (3.2) (101,752,495)
-----------------------------------------
NET ASSETS 100.0% $ 3,149,497,087
=========================================
16 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
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 March 31, 2005.
The aggregate fair value of securities of affiliated companies held by the Fund
as of March 31, 2005 amounts to $237,265,540. Transactions during the period in
which the issuer was an affiliate are as follows:
SHARES GROSS GROSS SHARES
SEPTEMBER 30, 2004 ADDITIONS REDUCTIONS MARCH 31, 2005
- -------------------------------------------------------------------------------------------------------------------------
Alexion Pharmaceuticals, Inc.* 2,800,000 -- 1,800,000 1,000,000
Analogic Corp. 700,000 -- -- 700,000
Autonomy Corp. plc* 10,002,346 -- 7,000,000 3,002,346
Brillian Corp. 1,376,475 -- 1,376,475 --
Nektar Therapeutics 12,000,000 -- -- 12,000,000
Neurogen Corp.* 2,000,000 -- 497,100 1,502,900
Neurogen Corp. 200,000 -- 200,000 --
Nicox SA 5,077,849 -- -- 5,077,849
Sirius Satellite Radio, Inc. 66,116,475 -- 66,116,475 --
Sirius Satellite Radio, Inc. Wts., Exp
5/15/09 18,000 -- 18,000 --
Thorntons plc 4,300,000 -- -- 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)
- -------------------------------------------------------------------------------------------------------------------------
Alexion Pharmaceuticals, Inc.* $ --* $ -- $ (16,298,101)
Analogic Corp. 1,625,769 112,000 --
Autonomy Corp. plc* --* -- (10,940,805)
Brillian Corp. -- -- (41,747,279)
Nektar Therapeutics (96,042,419) -- --
Neurogen Corp.* --* -- (4,110,538)
Neurogen Corp. -- -- (3,008,870)
Nicox SA (908,429) -- --
Sirius Satellite Radio, Inc. -- -- 375,445,990
Sirius Satellite Radio, Inc. Wts., Exp
5/15/09 -- -- (879,787)
Thorntons plc 137,927 398,529 --
Three-Five Systems, Inc. -- -- (132,029,399)
Toyo Communication Equipment Co. Ltd. -- -- (42,902,362)
Transmeta Corp. -- -- (32,615,121)
-------------------------------------------------------
$ (95,187,152) $ 510,529 $ 90,913,728
=======================================================
*No longer an affiliate as of March 31, 2005.
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 $11,000,000 or 0.35% of the Fund's net
assets as of March 31, 2005.
4. A sufficient amount of securities has been designated to cover outstanding
foreign currency contracts. See Note 5 of Notes to Financial Statements.
5. The Fund may have elements of risk due to concentrated investments. Such
concentrations may subject the Fund to additional risks.
17 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
FOOTNOTES TO STATEMENT OF INVESTMENTS Continued
DISTRIBUTION OF INVESTMENTS REPRESENTING GEOGRAPHIC HOLDINGS, AS A PERCENTAGE OF
TOTAL INVESTMENTS AT VALUE, IS AS FOLLOWS:
GEOGRAPHIC HOLDINGS VALUE PERCENT
- --------------------------------------------------------------------------------
United States $1,882,618,063 57.9%
Japan 309,457,351 9.5
Sweden 149,951,880 4.6
United Kingdom 147,411,121 4.5
Germany 139,429,372 4.3
France 132,861,247 4.1
Switzerland 132,048,922 4.1
Italy 97,780,282 3.0
Denmark 73,704,175 2.3
Spain 69,144,317 2.1
Belgium 33,873,456 1.1
Portugal 32,666,606 1.0
Canada 31,448,274 1.0
Lebanon 11,000,000 0.3
India 7,854,516 0.2
----------------------------
Total $3,251,249,582 100.0%
============================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
18 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
STATEMENT OF ASSETS AND LIABILITIES Unaudited
- --------------------------------------------------------------------------------
MARCH 31, 2005
- ---------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (including cost and market value of $931,435,000
in repurchase agreements)--see accompanying statement of investments:
Unaffiliated companies (cost $2,743,406,560) $ 3,013,984,042
Affiliated companies (cost $332,452,692) 237,265,540
----------------
3,251,249,582
- ---------------------------------------------------------------------------------------------------
Cash 1,654,450
- ---------------------------------------------------------------------------------------------------
Unrealized appreciation on foreign currency contracts 6,506,538
- ---------------------------------------------------------------------------------------------------
Receivables and other assets:
Interest and dividends 5,097,659
Shares of beneficial interest sold 3,130,084
Closed foreign currency contracts 1,172,713
Other 74,636
----------------
Total assets 3,268,885,662
- ---------------------------------------------------------------------------------------------------
LIABILITIES
- ---------------------------------------------------------------------------------------------------
Unrealized depreciation on foreign currency contracts 93,082
- ---------------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 108,296,358
Shares of beneficial interest redeemed 7,124,179
Distribution and service plan fees 1,964,026
Transfer and shareholder servicing agent fees 526,441
Trustees' compensation 518,464
Shareholder communications 421,821
Closed foreign currency contracts 292,500
Other 151,704
----------------
Total liabilities 119,388,575
- ---------------------------------------------------------------------------------------------------
NET ASSETS $ 3,149,497,087
================
- ---------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- ---------------------------------------------------------------------------------------------------
Par value of shares of beneficial interest $ 103,913
- ---------------------------------------------------------------------------------------------------
Additional paid-in capital 2,916,447,073
- ---------------------------------------------------------------------------------------------------
Accumulated net investment loss (29,365,461)
- ---------------------------------------------------------------------------------------------------
Accumulated net realized gain on investments and foreign currency transactions 80,613,799
- ---------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of assets and
liabilities denominated in foreign currencies 181,697,763
----------------
NET ASSETS $ 3,149,497,087
================
19 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
STATEMENT OF ASSETS AND LIABILITIES Unaudited / Continued
- --------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
- ----------------------------------------------------------------------------------------------------------
Class A Shares:
Net asset value and redemption price per share (based on net assets of $1,855,612,178
and 60,308,152 shares of beneficial interest outstanding) $30.77
Maximum offering price per share (net asset value plus sales charge of 5.75% of offering price) $32.65
- ----------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $768,838,203 and 25,969,854 shares
of beneficial interest outstanding) $29.61
- ----------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $442,368,383 and 14,922,783 shares
of beneficial interest outstanding) $29.64
- ----------------------------------------------------------------------------------------------------------
Class N Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $58,888,669 and 1,943,293 shares
of beneficial interest outstanding) $30.30
- ----------------------------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based on net assets of
$23,789,654 and 769,055 shares of beneficial interest outstanding) $30.93
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
20 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
STATEMENT OF OPERATIONS Unaudited
- --------------------------------------------------------------------------------
For the Six Months Ended March 31, 2005
- -----------------------------------------------------------------------------------------
INVESTMENT INCOME
- -----------------------------------------------------------------------------------------
Dividends:
Unaffiliated companies (net of foreign withholding taxes of $1,328,326) $ 11,877,527
Affiliated companies (net of foreign withholding taxes of $44,281) 510,529
- -----------------------------------------------------------------------------------------
Interest 5,360,282
-------------
Total investment income 17,748,338
- -----------------------------------------------------------------------------------------
EXPENSES
- -----------------------------------------------------------------------------------------
Management fees 11,108,575
- -----------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 2,260,494
Class B 3,923,148
Class C 2,213,160
Class N 129,945
- -----------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 1,670,364
Class B 959,673
Class C 437,674
Class N 70,442
Class Y 13,909
- -----------------------------------------------------------------------------------------
Shareholder communications:
Class A 139,124
Class B 122,754
Class C 41,325
Class N 1,567
- -----------------------------------------------------------------------------------------
Custodian fees and expenses 170,555
- -----------------------------------------------------------------------------------------
Trustees' compensation 52,981
- -----------------------------------------------------------------------------------------
Other 45,358
-------------
Total expenses 23,361,048
Less reduction to custodian expenses (14,379)
-------------
Net expenses 23,346,669
- -----------------------------------------------------------------------------------------
NET INVESTMENT LOSS (5,598,331)
21 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
STATEMENT OF OPERATIONS Unaudited / Continued
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
- ------------------------------------------------------------------------------------------
Net realized gain on:
Investments:
Unaffiliated companies $ 266,251,427
Affiliated companies 90,913,728
Foreign currency transactions 53,173,268
--------------
Net realized gain 410,338,423
- ------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on:
Investments 97,735,723
Translation of assets and liabilities denominated in foreign currencies (28,876,145)
--------------
Net change in unrealized appreciation 68,859,578
- ------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 473,599,670
==============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
22 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
MARCH 31, 2005 SEPTEMBER 30,
(UNAUDITED) 2004
- -------------------------------------------------------------------------------------------------------
OPERATIONS
- -------------------------------------------------------------------------------------------------------
Net investment loss $ (5,598,331) $ (15,004,362)
- -------------------------------------------------------------------------------------------------------
Net realized gain 410,338,423 152,241,782
- -------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation 68,859,578 249,311,241
--------------------------------------
Net increase in net assets resulting from operations 473,599,670 386,548,661
- -------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
- -------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
beneficial interest transactions:
Class A 6,225,188 178,635,656
Class B (53,138,849) (72,891,348)
Class C (9,892,453) (3,835,712)
Class N 10,684,420 14,305,000
Class Y 4,016,574 7,247,887
- -------------------------------------------------------------------------------------------------------
NET ASSETS
- -------------------------------------------------------------------------------------------------------
Total increase 431,494,550 510,010,144
- -------------------------------------------------------------------------------------------------------
Beginning of period 2,718,002,537 2,207,992,393
--------------------------------------
End of period (including accumulated net investment loss of
$29,365,461 and $23,767,130, respectively) $ 3,149,497,087 $ 2,718,002,537
======================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
23 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR
MARCH 31, ENDED
2005 SEPT. 30,
CLASS A (UNAUDITED) 2004 2003 2002 2001 2000
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of
period $ 26.13 $ 22.05 $ 15.06 $ 17.96 $ 30.02 $ 23.37
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment income (loss) (.01) 1 (.06) (.07) (.03) .08 .11
Net realized and unrealized gain
(loss) 4.65 4.14 7.29 (2.83) (11.28) 8.19
----------------------------------------------------------------------------------------------
Total from investment operations 4.64 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 $ 30.77 $ 26.13 $ 22.05 $ 15.06 $ 17.96 $ 30.02
==============================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 17.76% 18.50% 48.34% (16.01)% (38.30)% 36.54%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in
thousands) $1,855,612 $1,572,487 $1,185,092 $ 865,444 $1,061,527 $1,566,609
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $1,847,199 $1,533,808 $ 963,783 $1,209,791 $1,444,832 $1,159,085
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income (loss) (0.03)% (0.20)% (0.48)% (0.17)% 0.38% 0.72%
Total expenses 1.16% 4 1.19% 4,5 1.36% 4,5 1.40% 4,5 1.22% 4 1.20% 4
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 51% 52% 61% 39% 53% 48%
1. Per share amounts calculated based on the average shares outstanding during
the period.
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.
24 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
SIX MONTHS
ENDED YEAR
MARCH 31, ENDED
2005 SEPT. 30,
CLASS B (UNAUDITED) 2004 2003 2002 2001 2000
- -----------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 25.25 $ 21.48 $ 14.66 $ 17.60 $ 29.59 $ 23.15
- -----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment loss (.13) 1 (.33) (.26) (.20) (.08) (.02)
Net realized and unrealized gain
(loss) 4.49 4.10 7.15 (2.72) (11.10) 8.02
---------------------------------------------------------------------------------------------
Total from investment operations 4.36 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 $ 29.61 $ 25.25 $ 21.48 $ 14.66 $ 17.60 $ 29.59
=============================================================================================
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 17.27% 17.55% 47.15% (16.63)% (38.74)% 35.48%
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in
thousands) $ 768,838 $ 701,803 $ 659,224 $ 522,255 $ 674,707 $1,013,614
- -----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 789,173 $ 753,094 $ 564,030 $ 747,894 $ 922,355 $ 711,304
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment loss (0.88)% (1.06)% (1.28)% (0.92)% (0.37)% (0.05)%
Total expenses 1.99% 2.03% 2.23% 2.16% 1.97% 1.97%
Expenses after payments and waivers
and reduction to custodian expenses N/A 4 N/A 4,5 2.14% N/A 4,5 N/A 4 N/A 4
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 51% 52% 61% 39% 53% 48%
1. Per share amounts calculated based on the average shares outstanding during
the period.
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.
25 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR
MARCH 31, ENDED
2005 SEPT. 30,
CLASS C (UNAUDITED) 2004 2003 2002 2001 2000
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 25.28 $ 21.49 $ 14.67 $ 17.61 $ 29.61 $ 23.15
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment loss (.12) 1 (.26) (.24) (.19) (.09) (.07)
Net realized and unrealized gain
(loss) 4.48 4.05 7.14 (2.73) (11.10) 8.07
----------------------------------------------------------------------------------------------
Total from investment operations 4.36 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 $ 29.64 $ 25.28 $ 21.49 $ 14.67 $ 17.61 $ 29.61
==============================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 17.25% 17.64% 47.20% (16.62)% (38.75)% 35.49%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in
thousands) $ 442,368 $ 385,820 $ 332,257 $ 253,560 $ 318,082 $ 494,774
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 445,249 $ 393,202 $ 276,023 $ 356,480 $ 446,283 $ 377,158
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment loss (0.81)% (0.99)% (1.26)% (0.90)% (0.36)% (0.05)%
Total expenses 1.94% 4 1.96% 4,5 2.15% 4 2.13% 4,5 1.97% 4 1.98% 4
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 51% 52% 61% 39% 53% 48%
1. Per share amounts calculated based on the average shares outstanding during
the period.
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.
26 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
SIX MONTHS
ENDED YEAR
MARCH 31, ENDED
2005 SEPT. 30,
CLASS N (UNAUDITED) 2004 2003 2002 2001 1
- -------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 25.78 $ 21.83 $ 14.96 $ 17.94 $ 25.19
- -------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.05) 2 (.05) (.04) (.06) (.06)
Net realized and unrealized gain (loss) 4.57 4.00 7.15 (2.81) (7.19)
-------------------------------------------------------------------------
Total from investment operations 4.52 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 $ 30.30 $ 25.78 $ 21.83 $ 14.96 $ 17.94
=========================================================================
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 17.53% 18.10% 47.94% (16.19)% (28.78)%
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $58,889 $40,989 $22,900 $10,490 $ 1,704
- -------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $52,330 $33,972 $15,577 $ 8,179 $ 407
- -------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment loss (0.32)% (0.54)% (0.68)% (1.33)% (2.44)%
Total expenses 1.50% 1.54% 1.70% 1.61% 1.58%
Expenses after payments and waivers and
reduction to custodian expenses N/A 5 N/A 5,6 1.64% N/A 5,6 N/A 5
- -------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 51% 52% 61% 39% 53%
1. For the period from March 1, 2001 (inception of offering) to September 30,
2001.
2. Per share amounts calculated based on the average shares outstanding during
the period.
3. 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.
4. Annualized for periods of less than one full year.
5. Reduction to custodian expenses less than 0.01%.
6. Voluntary waiver of transfer agent fees less than 0.01%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
27 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR
MARCH 31, ENDED
2005 SEPT. 30,
CLASS Y (UNAUDITED) 2004 2003 2002 2001 1
- -------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 26.23 $ 22.06 $ 15.09 $ 17.99 $ 28.40
- -------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .05 2 .07 .06 .09 (.05)
Net realized and unrealized gain (loss) 4.65 4.10 7.25 (2.85) (10.36)
-------------------------------------------------------------------------
Total from investment operations 4.70 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 $ 30.93 $ 26.23 $ 22.06 $ 15.09 $ 17.99
=========================================================================
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 17.92% 18.90% 49.07% (15.58)% (36.66)%
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $23,790 $16,904 $ 8,519 $ 4,144 $ 4,215
- -------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $22,622 $14,612 $ 5,743 $ 5,231 $ 1,240
- -------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income (loss) 0.32% 0.19% 0.04% 0.34% (1.52)%
Total expenses 0.85% 0.85% 0.90% 0.88% 1.08%
Expenses after payments and waivers and
reduction to custodian expenses N/A 5 N/A 5 N/A 5 N/A 5 1.06%
- -------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 51% 52% 61% 39% 53%
1. For the period from February 1, 2001 (inception of offering) to September 30,
2001.
2. Per share amounts calculated based on the average shares outstanding during
the period.
3. 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.
4. Annualized for periods of less than one full year.
5. Reduction to custodian expenses less than 0.01%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
28 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
NOTES TO FINANCIAL STATEMENTS Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 sixty 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
29 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
materially 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. The values of securities denominated in foreign currencies and
amounts related to the purchase and sale of foreign securities and foreign
investment income 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 for business. 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.
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS. The Fund requires its custodian bank to take possession,
to have legally segregated in the Federal Reserve Book Entry System or to have
segregated within the custodian's vault, all securities held as collateral for
repurchase agreements. The market value of the underlying securities is required
to be at least 102% of the resale price at the time of purchase. If the seller
of the agreement defaults and the value of the collateral declines, or if the
seller enters an insolvency proceeding, realization of the value of the
collateral by the Fund may be delayed or limited.
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.
30 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
ALLOCATION OF INCOME, EXPENSES, GAINS AND LOSSES. Income, expenses (other than
those attributable to a specific class), gains and losses are allocated on a
daily basis to each class of shares based upon the relative proportion of net
assets represented by such class. Operating expenses directly attributable to a
specific class are charged against the operations of that class.
- --------------------------------------------------------------------------------
FEDERAL TAXES. The Fund intends to comply with provisions of the Internal
Revenue Code applicable to regulated investment companies and to distribute
substantially all of its investment company taxable income, including any net
realized gain on investments not offset by capital loss carryforwards, if any,
to shareholders, therefore, no federal income or excise tax provision is
required.
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.
As of March 31, 2005, the Fund had available for federal income tax
purposes an estimated capital loss carryforward of zero. This estimated capital
loss carryforward represents carryforward as of the end of the last fiscal year,
increased for losses deferred under tax accounting rules to the current fiscal
year and is increased or decreased by capital losses or gains realized in the
first six months of the current fiscal year. As of March 31, 2005, it is
estimated that the Fund will utilize $227,605,725 of capital loss carryforward
to offset realized capital gains. During the year ended September 30, 2004, the
Fund did not utilize any capital loss carryforward to offset capital gains
realized in that fiscal year.
As of September 30, 2004, the Fund had available for federal income tax purposes
unused capital loss carryforwards as follows:
EXPIRING
------------------------
2010 $ 83,673,627
2011 66,378,629
2012 77,553,469
------------
Total $227,605,725
============
- --------------------------------------------------------------------------------
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 six months ended
March 31, 2005, the Fund's projected benefit obligations were increased by
$13,948 and payments of $29,163 were made to retired trustees, resulting in an
accumulated liability of $439,410 as of March 31, 2005.
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
31 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
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.
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
CUSTODIAN FEES. Custodian Fees and Expenses in the Statement of Operations may
include interest expense incurred by the Fund on any cash overdrafts of its
custodian account during the period. Such cash overdrafts may result from the
effects of failed trades in portfolio securities and from cash outflows
resulting from unanticipated shareholder redemption activity. The Fund pays
interest to its custodian on such cash overdrafts at a rate equal to the Federal
Funds Rate plus 0.50%. The Reduction to Custodian Expenses line item, if
applicable, represents earnings on cash balances maintained by the Fund during
the period. Such interest expense and other custodian fees may be paid with
these earnings.
- --------------------------------------------------------------------------------
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.
32 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
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:
SIX MONTHS ENDED MARCH 31, 2005 YEAR ENDED SEPTEMBER 30, 2004
SHARES AMOUNT SHARES AMOUNT
- -------------------------------------------------------------------------------------------
CLASS A
Sold 8,487,807 $ 260,279,987 21,621,658 $ 573,487,391
Redeemed (8,349,832) (254,054,799) 1 (15,204,030) (394,851,735)
------------------------------------------------------------------------
Net increase 137,975 $ 6,225,188 6,417,628 $ 178,635,656
========================================================================
- -------------------------------------------------------------------------------------------
CLASS B
Sold 1,332,790 $ 39,496,176 4,237,789 $ 108,712,948
Redeemed (3,157,188) (92,635,025) 1 (7,131,838) (181,604,296)
------------------------------------------------------------------------
Net decrease (1,824,398) $ (53,138,849) (2,894,049) $ (72,891,348)
========================================================================
- -------------------------------------------------------------------------------------------
CLASS C
Sold 1,398,052 $ 41,439,239 3,105,310 $ 79,586,392
Redeemed (1,739,905) (51,331,692) 1 (3,303,209) (83,422,104)
------------------------------------------------------------------------
Net decrease (341,853) $ (9,892,453) (197,899) $ (3,835,712)
========================================================================
- -------------------------------------------------------------------------------------------
CLASS N
Sold 639,362 $ 19,384,074 955,663 $ 24,957,737
Redeemed (285,926) (8,699,654) 1 (414,966) (10,652,737)
------------------------------------------------------------------------
Net increase 353,436 $ 10,684,420 540,697 $ 14,305,000
========================================================================
- -------------------------------------------------------------------------------------------
CLASS Y
Sold 322,085 $ 10,174,341 489,607 $ 13,193,036
Redeemed (197,435) (6,157,767) 1 (231,470) (5,945,149)
------------------------------------------------------------------------
Net increase 124,650 $ 4,016,574 258,137 $ 7,247,887
========================================================================
1. Net of redemption fees of $8,206, $3,506, $1,979, $232 and $100 for Class A,
Class B, Class C, Class N and Class Y, respectively.
- --------------------------------------------------------------------------------
3. PURCHASES AND SALES OF SECURITIES
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations, for the six months ended March 31, 2005, were
$1,375,495,846 and $2,151,052,866, 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.
33 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued
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 six months ended March 31, 2005, the Fund paid
$3,171,970 to OFS for services to the Fund.
Additionally, Class Y shares are subject to minimum fees of $10,000 per
annum 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.
- --------------------------------------------------------------------------------
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 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 March 31, 2005
for Class B, Class C and Class N shares were $15,741,582, $6,593,599 and
$462,553, 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.
34 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
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
SIX MONTHS RETAINED BY RETAINED BY RETAINED BY RETAINED BY RETAINED BY
ENDED DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR
- -----------------------------------------------------------------------------------------------------
March 31, 2005 $486,075 $34,609 $709,703 $29,083 $23,288
- -----------------------------------------------------------------------------------------------------
WAIVERS AND REIMBURSEMENTS OF EXPENSES. 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. 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 March 31, 2005, the Fund had outstanding foreign currency contracts as
follows:
CONTRACT VALUATION
EXPIRATION AMOUNT AS OF UNREALIZED UNREALIZED
CONTRACT DESCRIPTION DATES (000S) MARCH 31, 2005 APPRECIATION DEPRECIATION
- ------------------------------------------------------------------------------------------------------------------
CONTRACTS TO PURCHASE
Canadian Dollar [CAD] 4/1/05 12,073CAD $ 9,981,994 $ 60,554 $ --
Euro [EUR] 4/1/05 6,928EUR 8,981,118 27,449 --
Japanese Yen [JPY] 4/1/05 762,505JPY 7,110,931 11,678 1,365
Swiss Franc [CHF] 4/1/05 7,508CHF 6,275,150 29,329 --
--------------------------
129,010 1,365
--------------------------
CONTRACTS TO SELL
British Pound Sterling [GBP] 6/1/05 53,000GBP 99,831,704 383,346 --
Euro [EUR] 5/13/05 191,000EUR 247,876,017 -- 91,717
Swedish Krona [SEK] 6/13/05 663,340SEK 94,005,818 5,994,182 --
--------------------------
6,377,528 91,717
--------------------------
Total unrealized appreciation and depreciation $6,506,538 $93,082
==========================
35 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
6. LITIGATION
A consolidated amended complaint has been filed as putative derivative and class
actions against the Manager, OFS and the Distributor (collectively, the
"Oppenheimer defendants"), as well as 51 of the Oppenheimer funds (as "Nominal
Defendants") including the Fund, 30 present and former Directors or Trustees and
8 present and former officers of the funds. This complaint, initially filed in
the U.S. District Court for the Southern District of New York on January 10,
2005 and amended on March 4, 2005, consolidates into a single action and amends
six individual previously-filed putative derivative and class action complaints.
Like those prior complaints, the complaint alleges 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 assets of the funds to make those payments in violation of the Investment
Company Act of 1940 and the Investment Advisers Act of 1940. Also, like those
prior complaints, the complaint further alleges that by permitting and/or
participating in those actions, the Directors/Trustees and the Officers breached
their fiduciary duties to shareholders of the funds under the Investment Company
Act of 1940 and at common law. The complaint seeks unspecified compensatory and
punitive damages, rescission of the funds' investment advisory agreements, an
accounting of all fees paid, and an award of attorneys' fees and litigation
expenses.
The Oppenheimer defendants believe that the allegations contained in the
Complaints are without merit and that they, the funds named as Nominal
Defendants, and the Directors/Trustees of those funds have meritorious defenses
against the claims asserted. The Oppenheimer defendants intend to defend these
lawsuits vigorously and to contest any claimed liability. The Oppenheimer
defendants believe that it is premature to render any opinion as to the
likelihood of an outcome unfavorable to them and that no estimate can yet be
made with any degree of certainty as to the amount or range of any potential
loss.
36 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
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 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 voting record is
available (i) without charge, upon request, by calling the Fund toll-free at
1.800.525.7048, and (ii) in the Form N-PX filing 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
http://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.
37 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
BOARD APPROVAL OF THE FUND'S INVESTMENT
ADVISORY AGREEMENT Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Each year, the Board of Trustees (the "Board"), including a majority of the
independent Trustees, is required to determine whether to renew the advisory
agreement. The Investment Company Act of 1940, as amended, requires that the
Board request and evaluate, and that the Manager provide, such information as
may be reasonably necessary to evaluate the terms of the advisory agreement. The
Board employs an independent consultant to prepare a report that provides
information, including comparative information, that the Board requests for this
purpose. In addition, the Board receives information throughout the year
regarding Fund services, fees, expenses and performance.
NATURE AND EXTENT OF SERVICES. In considering the renewal of the Fund's
advisory agreement for the current year, the Board evaluated the nature and
extent of the services provided by the Manager and its affiliates. The Manager
provides the Fund with office space, facilities and equipment; administrative,
accounting, clerical, legal and compliance personnel; securities trading
services; oversight of third party service providers and the services of the
portfolio managers and the Manager's investment team, who provide research,
analysis and other advisory services in regard to the Fund's investments.
QUALITY OF SERVICES. The Board also considered the quality of the services
provided and the quality of the Manager's resources that are available to the
Fund. The Board noted that the Manager has had over forty years of experience as
an investment adviser and that its assets under management rank it among the top
mutual fund managers in the United States. The Board evaluated the Manager's
administrative, accounting, legal and compliance services and information the
Board received regarding the experience and professional qualifications of the
Manager's personnel and the size and functions of its staff. The Board members
also considered their experiences as directors or trustees of the Fund and other
funds advised by the Manager. The Board received and reviewed information
regarding the quality of services provided by affiliates of the Manager, which
it also reviews at other times during the year in connection with the renewal of
the Fund's service agreements. The Board noted that the relatively low
redemption rate for funds advised by the Manager provided an indication of
shareholder satisfaction with the overall level of services provided by the
Manager.
PORTFOLIO MANAGEMENT SERVICES AND PERFORMANCE. In its evaluation of the
quality of the portfolio management services provided, the Board considered the
experience of Frank Jennings and Randall C. Dishmon and the Manager's global
investment team and analysts. Messrs. Jennings and Dishmon are primarily
responsible for the day-to-day management of the Fund's investments. Mr.
Jennings has been a portfolio manager of the Fund since October 1995 and has
been a Vice President of the Manager since September 1995. Mr. Jennings has had
over 26 years of experience managing equity investments. Mr.
38 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
Dishmon has been a manager of the Fund's portfolio since August 2004 and has
been a Vice President of the Manager since January 2005. Mr. Dishmon was an
Assistant Vice President and Senior Research Analyst of the Manager from June
2001 through January 2005. Prior to joining the Manager, he was a management
consultant with Booz, Allen & Hamilton from May 1998 through June 2001.
The Board reviewed information, prepared by the Manager and by the
independent consultant, comparing the Fund's historical performance to relevant
market indices and to the performance of other global flexible portfolio funds
(including both funds advised by the Manager and funds advised by other
investment advisers). The Board also receives and reviews comparative
performance information regarding the Fund and other funds at each Board
meeting. The Board noted that the Fund's one-, three-, five- and ten-year
performance were each better than its peer group average.
MANAGEMENT FEES AND EXPENSES. The Board also reviewed information,
including comparative information, regarding the fees paid to the Manager and
its affiliates and the other expenses borne by the Fund. The independent
consultant provided comparative data in regard to the fees and expenses of the
Fund, other global equity funds and other funds with comparable asset levels
and distribution features. The Board noted that the Fund's contractual and
actual management fees as well as its total expenses are lower than its peer
group average. In addition, the Board evaluated the comparability of the fees
charged and services provided to the Fund to the fees charged and services
provided to other types of entities advised by the Manager.
PROFITABILITY OF THE MANAGER AND AFFILIATES. The Board also reviewed
information regarding the cost of services provided by the Manager and its
affiliates and the Manager's profitability. The Board considered that the
Manager must be able to pay and retain experienced professional personnel at
competitive rates to provide services to the Fund and that maintaining the
financial viability of the Manager is important in order for the Manager to
continue to provide significant services to the Fund and its shareholders. In
addition the Board considered information that was provided regarding the direct
and indirect benefits the Manager receives as a result of its relationship with
the Fund, including compensation paid to the Manager's affiliates and research
provided to the Manager in connection with permissible brokerage arrangements
(soft dollar arrangements).
ECONOMIES OF SCALE. The Board reviewed the extent to which the Manager may
realize economies of scale in managing and supporting the Fund and the current
level of Fund assets in relation to the Fund's breakpoint schedule for its
management fees. The Board noted that the Fund has recently experienced
significant asset growth. Based
39 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
BOARD APPROVAL OF THE FUND'S INVESTMENT
ADVISORY AGREEMENT Unaudited / Continued
- --------------------------------------------------------------------------------
on current asset levels, the Fund is nearing, but has not yet reached, its last
management fee breakpoint.
CONCLUSIONS. These factors were also considered by the independent
Trustees meeting separately from the full Board, assisted by experienced counsel
to the Fund. Fund counsel is independent of the Manager within the meaning and
intent of the Securities and Exchange Commission Rules. The Board was aware that
there are alternatives to retaining the Manager.
Based on its review of the information it received and its evaluations
described above, the Board, including a majority of the independent Trustees,
concluded that the nature, extent and quality of the services provided to the
Fund by the Manager are a benefit to the Fund and in the best interest of the
Fund's shareholders and that the amount and structure of the compensation
received by the Manager and its affiliates are reasonable in relation to the
services provided. Accordingly, the Board elected to continue the investment
advisory agreement for another year. In arriving at this decision, the Board did
not single out any factor or factors as being more important than others, but
considered all of the factors together. The Board judged the terms and
conditions of the advisory agreement, including the management fee, in light of
all of the surrounding circumstances.
40 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
ITEM 2. CODE OF ETHICS
Not applicable to semiannual reports.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
Not applicable to semiannual reports.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
Not applicable to semiannual reports.
ITEM 5. NOT APPLICABLE
ITEM 6. SCHEDULE OF INVESTMENTS
Not applicable.
ITEM 7. DISCLOSURE OF PROXY POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT
INVESTMENT COMPANIES
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT COMPANIES
Not applicable.
ITEM 9. PURCHASE OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS
Not applicable.
ITEM 10. 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 11. CONTROLS AND PROCEDURES
(a) Based on their evaluation of registrant's disclosure controls and
procedures (as defined in rule 30a-3(c) under the Investment Company
Act of 1940 (17 CFR 270.30a-3(c)) as of March 31, 2005, 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 changes in registrant's internal controls over
financial reporting that occurred during the registrant's last
fiscal quarter that has materially affected, or is reasonably likely
to materially affect, the registrant's internal control over
financial reporting.
ITEM 12. EXHIBITS.
(A) EXHIBIT ATTACHED HERETO. (ATTACH CODE OF ETHICS AS EXHIBIT)(NOT
APPLICABLE TO SEMIANNUAL REPORTS)
(B) EXHIBITS ATTACHED HERETO. (ATTACH CERTIFICATIONS AS EXHIBITS)
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Oppenheimer Global Opportunities Fund
By: /s/ John V. Murphy
----------------------------
John V. Murphy
Principal Executive Officer
Date: May 13, 2005
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ John V. Murphy
----------------------------
John V. Murphy
Principal Executive Officer
Date: May 13, 2005
By: /s/ Brian W. Wixted
----------------------------
Brian W. Wixted
Chief Financial Officer
Date: May 13, 2005