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 811-1810
OPPENHEIMER GLOBAL 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: MARCH 31, 2006
ITEM 1. REPORTS TO STOCKHOLDERS.
TOP HOLDINGS AND ALLOCATIONS
- --------------------------------------------------------------------------------
TOP TEN COMMON STOCK HOLDINGS
- --------------------------------------------------------------------------------
Telefonaktiebolaget LM Ericsson, B Shares 2.8%
- --------------------------------------------------------------------------------
Vodafone Group plc 2.2
- --------------------------------------------------------------------------------
Advanced Micro Devices, Inc. 1.9
- --------------------------------------------------------------------------------
Reckitt Benckiser plc 1.8
- --------------------------------------------------------------------------------
Sanofi-Aventis SA 1.6
- --------------------------------------------------------------------------------
Hennes & Mauritz AB, B Shares 1.5
- --------------------------------------------------------------------------------
Royal Bank of Scotland Group plc (The) 1.5
- --------------------------------------------------------------------------------
Microsoft Corp. 1.4
- --------------------------------------------------------------------------------
eBay, Inc. 1.3
- --------------------------------------------------------------------------------
Transocean, Inc. 1.3
Portfolio holdings and allocations are subject to change. Percentages are as of
March 31, 2006, and are based on net assets.
For more current Fund holdings, please visit www.oppenheimerfunds.com.
TOP TEN GEOGRAPHICAL HOLDINGS
- --------------------------------------------------------------------------------
United States 39.4%
- --------------------------------------------------------------------------------
United Kingdom 12.2
- --------------------------------------------------------------------------------
Japan 11.1
- --------------------------------------------------------------------------------
France 6.8
- --------------------------------------------------------------------------------
Germany 4.7
- --------------------------------------------------------------------------------
Sweden 4.7
- --------------------------------------------------------------------------------
India 3.1
- --------------------------------------------------------------------------------
Switzerland 3.1
- --------------------------------------------------------------------------------
Korea, Republic of South 2.4
- --------------------------------------------------------------------------------
Mexico 1.9
Portfolio holdings and allocations are subject to change. Percentages are as of
March 31, 2006, and are based on the total market value of investments.
10 | OPPENHEIMER GLOBAL FUND
- --------------------------------------------------------------------------------
REGIONAL ALLOCATION
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
United States/Canada 41.1%
Europe 35.6
Asia 18.7
Latin America 4.6
Portfolio holdings and allocations are subject to change. Percentages are as of
March 31, 2006, and are based on the total market value of investments.
- --------------------------------------------------------------------------------
11 | OPPENHEIMER GLOBAL 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 12/22/69. Unless
otherwise noted, Class A returns include the current maximum initial sales
charge of 5.75%.
CLASS B shares of the Fund were first publicly offered on 8/17/93. 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 10/2/95. Unless
otherwise noted, Class C returns include the contingent deferred sales charge of
1% for the 1-year period. Class C shares are subject to an annual 0.75%
asset-based sales charge.
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 1-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 11/17/98. 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.
12 | OPPENHEIMER GLOBAL 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, 2006.
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 exceptions
13 | OPPENHEIMER GLOBAL FUND
FUND EXPENSES
- --------------------------------------------------------------------------------
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
(10/1/05) (3/31/06) MARCH 31, 2006
- --------------------------------------------------------------------------------
Class A Actual $1,000.00 $1,123.00 $ 5.73
- --------------------------------------------------------------------------------
Class A Hypothetical 1,000.00 1,019.55 5.45
- --------------------------------------------------------------------------------
Class B Actual 1,000.00 1,118.50 10.03
- --------------------------------------------------------------------------------
Class B Hypothetical 1,000.00 1,015.51 9.54
- --------------------------------------------------------------------------------
Class C Actual 1,000.00 1,118.80 9.76
- --------------------------------------------------------------------------------
Class C Hypothetical 1,000.00 1,015.76 9.29
- --------------------------------------------------------------------------------
Class N Actual 1,000.00 1,120.90 7.64
- --------------------------------------------------------------------------------
Class N Hypothetical 1,000.00 1,017.75 7.27
- --------------------------------------------------------------------------------
Class Y Actual 1,000.00 1,125.10 3.82
- --------------------------------------------------------------------------------
Class Y Hypothetical 1,000.00 1,021.34 3.63
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, 2006 are as follows:
CLASS EXPENSE RATIOS
- --------------------------------------------------------------------------------
Class A 1.08%
- --------------------------------------------------------------------------------
Class B 1.89
- --------------------------------------------------------------------------------
Class C 1.84
- --------------------------------------------------------------------------------
Class N 1.44
- --------------------------------------------------------------------------------
Class Y 0.72
14 | OPPENHEIMER GLOBAL FUND
STATEMENT OF INVESTMENTS March 31, 2006 / Unaudited
- --------------------------------------------------------------------------------
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
COMMON STOCKS--99.2%
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY--18.0%
- --------------------------------------------------------------------------------
AUTOMOBILES--2.3%
Bayerische Motoren
Werke AG 2,529,759 $ 139,489,608
- --------------------------------------------------------------------------------
Porsche AG,
Preference 89,019 85,040,449
- --------------------------------------------------------------------------------
Toyota Motor Corp. 2,601,812 142,138,073
-----------------
366,668,130
- --------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE--2.1%
Carnival Corp. 3,084,532 146,114,281
- --------------------------------------------------------------------------------
International Game
Technology 2,947,682 103,817,360
- --------------------------------------------------------------------------------
Starbucks Corp. 1 2,269,612 85,428,196
-----------------
335,359,837
- --------------------------------------------------------------------------------
HOUSEHOLD DURABLES--2.4%
Koninklijke (Royal)
Philips Electronics NV 5,330,846 180,175,592
- --------------------------------------------------------------------------------
Sony Corp. 4,409,628 203,338,812
-----------------
383,514,404
- --------------------------------------------------------------------------------
INTERNET & CATALOG RETAIL--1.9%
Amazon.com, Inc. 1 1,098,784 40,116,604
- --------------------------------------------------------------------------------
eBay, Inc. 1 5,388,110 210,459,577
- --------------------------------------------------------------------------------
GUS plc 2,673,742 48,853,805
-----------------
299,429,986
- --------------------------------------------------------------------------------
MEDIA--4.7%
Grupo Televisa SA,
Sponsored GDR 6,714,289 133,614,337
- --------------------------------------------------------------------------------
JC Decaux SA 1 1,938,699 52,462,673
- --------------------------------------------------------------------------------
Pearson plc 6,618,437 91,761,432
- --------------------------------------------------------------------------------
Singapore Press
Holdings Ltd. 22,875,786 63,707,050
- --------------------------------------------------------------------------------
Sirius Satellite
Radio, Inc. 1 26,479,500 134,515,860
- --------------------------------------------------------------------------------
Walt Disney
Co. (The) 3,470,700 96,797,823
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
MEDIA Continued
WPP Group plc 4,241,370 $ 50,882,881
- --------------------------------------------------------------------------------
Zee Telefilms Ltd. 2 21,515,942 115,557,531
-----------------
739,299,587
- --------------------------------------------------------------------------------
SPECIALTY RETAIL--2.5%
Hennes & Mauritz
AB, B Shares 6,647,906 242,409,360
- --------------------------------------------------------------------------------
Industria de Diseno
Textil SA 3,000,200 115,800,637
- --------------------------------------------------------------------------------
Tiffany & Co. 935,178 35,106,582
-----------------
393,316,579
- --------------------------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS--2.1%
Bulgari SpA 2,045,200 24,611,401
- --------------------------------------------------------------------------------
Burberry Group plc 6,030,519 48,563,086
- --------------------------------------------------------------------------------
Coach, Inc. 1 2,290,600 79,208,948
- --------------------------------------------------------------------------------
LVMH Moet
Hennessey Louis
Vuitton 1,874,304 183,755,294
-----------------
336,138,729
- --------------------------------------------------------------------------------
CONSUMER STAPLES--8.6%
- --------------------------------------------------------------------------------
BEVERAGES--1.7%
Companhia de
Bebidas das Americas,
ADR, Preference 2,180,210 93,661,822
- --------------------------------------------------------------------------------
Diageo plc 1,022,531 16,104,459
- --------------------------------------------------------------------------------
Fomento Economico
Mexicano SA
de CV, UBD 11,155,146 102,819,964
- --------------------------------------------------------------------------------
Grupo Modelo SA
de CV, Series C 15,408,976 56,287,527
-----------------
268,873,772
- --------------------------------------------------------------------------------
FOOD & STAPLES RETAILING--1.5%
Tesco plc 13,272,530 76,097,345
- --------------------------------------------------------------------------------
Wal-Mart
Stores, Inc. 3,363,500 158,891,740
-----------------
234,989,085
- --------------------------------------------------------------------------------
FOOD PRODUCTS--1.0%
Cadbury
Schweppes plc 15,748,615 156,509,335
15 | OPPENHEIMER GLOBAL FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS--3.3%
Hindustan Lever Ltd. 22,048,096 $ 134,765,890
- --------------------------------------------------------------------------------
Kao Corp. 2,118,000 55,784,197
- --------------------------------------------------------------------------------
Procter & Gamble
Co. (The) 1,000,000 57,620,000
- --------------------------------------------------------------------------------
Reckitt Benckiser plc 7,877,209 277,276,881
-----------------
525,446,968
- --------------------------------------------------------------------------------
PERSONAL PRODUCTS--0.9%
Avon Products, Inc. 2,323,300 72,417,261
- --------------------------------------------------------------------------------
Shiseido Co. Ltd. 3,840,160 71,452,425
-----------------
143,869,686
- --------------------------------------------------------------------------------
TOBACCO--0.2%
Altria Group, Inc. 514,876 36,484,113
- --------------------------------------------------------------------------------
ENERGY--7.4%
- --------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES--3.4%
GlobalSantaFe Corp. 2,537,316 154,141,947
- --------------------------------------------------------------------------------
Technip SA 2,705,910 183,695,589
- --------------------------------------------------------------------------------
Transocean, Inc. 1 2,549,032 204,687,270
-----------------
542,524,806
- --------------------------------------------------------------------------------
OIL & GAS--4.0%
BP plc, ADR 1,980,458 136,532,775
- --------------------------------------------------------------------------------
Burlington
Resources, Inc. 1,363,348 125,305,315
- --------------------------------------------------------------------------------
Chevron Corp. 1,603,116 92,932,635
- --------------------------------------------------------------------------------
Husky Energy, Inc. 3,067,483 185,569,785
- --------------------------------------------------------------------------------
Neste Oil Oyj 423,700 14,566,966
- --------------------------------------------------------------------------------
Total SA, B Shares 257,918 68,044,243
-----------------
622,951,719
- --------------------------------------------------------------------------------
FINANCIALS--15.3%
- --------------------------------------------------------------------------------
CAPITAL MARKETS--2.5%
3i Group plc 4,328,974 70,736,836
- --------------------------------------------------------------------------------
Credit Suisse Group 3,355,156 188,263,461
- --------------------------------------------------------------------------------
Northern
Trust Corp. 2,702,644 141,888,810
-----------------
400,889,107
- --------------------------------------------------------------------------------
COMMERCIAL BANKS--4.8%
Anglo Irish
Bank Corp. 3,997,300 65,880,511
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
COMMERCIAL BANKS Continued
HSBC Holdings plc 9,104,754 $ 152,427,462
- --------------------------------------------------------------------------------
ICICI Bank Ltd.,
Sponsored ADR 2,000,000 55,360,000
- --------------------------------------------------------------------------------
Resona
Holdings, Inc. 1 23,822 81,970,348
- --------------------------------------------------------------------------------
Royal Bank of
Scotland Group
plc (The) 7,112,019 231,436,864
- --------------------------------------------------------------------------------
Societe Generale,
Cl. A 1,101,243 165,617,509
-----------------
752,692,694
- --------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES--3.7%
American
Express Co. 1,721,342 90,456,522
- --------------------------------------------------------------------------------
Citigroup, Inc. 790,963 37,357,182
- --------------------------------------------------------------------------------
Credit Saison
Co. Ltd. 1,870,856 103,144,883
- --------------------------------------------------------------------------------
Investor AB, B Shares 3,237,995 58,827,283
- --------------------------------------------------------------------------------
JPMorgan
Chase & Co. 2,981,540 124,151,326
- --------------------------------------------------------------------------------
Morgan Stanley 2,728,602 171,410,778
-----------------
585,347,974
- --------------------------------------------------------------------------------
INSURANCE--4.3%
ACE Ltd. 1,799,251 93,579,045
- --------------------------------------------------------------------------------
Allianz AG 1,059,411 177,094,880
- --------------------------------------------------------------------------------
Berkshire Hathaway,
Inc., Cl. B 1 28,150 84,787,800
- --------------------------------------------------------------------------------
Everest Re
Group Ltd. 491,818 45,921,047
- --------------------------------------------------------------------------------
Manulife
Financial Corp. 1,300,000 81,549,857
- --------------------------------------------------------------------------------
Prudential plc 11,653,414 135,146,965
- --------------------------------------------------------------------------------
XL Capital Ltd., Cl. A 848,100 54,371,691
-----------------
672,451,285
- --------------------------------------------------------------------------------
HEALTH CARE--13.0%
- --------------------------------------------------------------------------------
BIOTECHNOLOGY--3.1%
Affymetrix, Inc. 1 1,500,000 49,395,000
- --------------------------------------------------------------------------------
Amgen, Inc. 1 1,776,366 129,230,627
- --------------------------------------------------------------------------------
Genentech, Inc. 1 863,952 73,012,584
16 | OPPENHEIMER GLOBAL FUND
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
BIOTECHNOLOGY Continued
Gilead Sciences, Inc. 1 2,096,702 $ 130,456,798
- --------------------------------------------------------------------------------
ImClone
Systems, Inc. 1 905,500 30,805,110
- --------------------------------------------------------------------------------
Nuvelo, Inc. 1 394,600 7,031,772
- --------------------------------------------------------------------------------
Wyeth 1,424,096 69,097,138
-----------------
489,029,029
- --------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES--2.6%
Biomet, Inc. 2,574,800 91,456,896
- --------------------------------------------------------------------------------
Boston
Scientific Corp. 1 5,225,300 120,443,165
- --------------------------------------------------------------------------------
Conor
Medsystems, Inc. 1 941,200 27,671,280
- --------------------------------------------------------------------------------
Guidant Corp. 100,100 7,813,806
- --------------------------------------------------------------------------------
Medtronic, Inc. 866,050 43,952,038
- --------------------------------------------------------------------------------
Nektar
Therapeutics 1,3 1,260,528 20,551,649
- --------------------------------------------------------------------------------
Smith & Nephew plc 10,391,247 92,255,107
- --------------------------------------------------------------------------------
Swiss Medical SA 1,2,3 960,000 12,992,130
-----------------
417,136,071
- --------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES--1.2%
Express Scripts, Inc. 1 839,800 73,818,420
- --------------------------------------------------------------------------------
Quest
Diagnostics, Inc. 2,125,594 109,042,972
-----------------
182,861,392
- --------------------------------------------------------------------------------
PHARMACEUTICALS--6.1%
AtheroGenics, Inc. 1 611,200 9,974,784
- --------------------------------------------------------------------------------
Chugai Pharmaceutical
Co. Ltd. 2,959,082 53,675,786
- --------------------------------------------------------------------------------
Johnson & Johnson 653,400 38,694,348
- --------------------------------------------------------------------------------
Novartis AG 1,561,448 86,836,942
- --------------------------------------------------------------------------------
Novo Nordisk
AS, Cl. B 647,000 40,241,807
- --------------------------------------------------------------------------------
Pfizer, Inc. 2,568,486 64,006,671
- --------------------------------------------------------------------------------
Roche Holdings AG 1,205,648 179,508,516
- --------------------------------------------------------------------------------
Sanofi-Aventis SA 2,690,063 255,907,736
- --------------------------------------------------------------------------------
Shionogi & Co. Ltd. 7,354,380 120,656,821
- --------------------------------------------------------------------------------
Takeda Pharmaceutical
Co. Ltd. 1,292,800 73,701,682
- --------------------------------------------------------------------------------
Theravance, Inc. 1 1,258,800 35,296,752
-----------------
958,501,845
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
INDUSTRIALS--9.1%
- --------------------------------------------------------------------------------
AEROSPACE & DEFENSE--4.2%
Boeing Co. 1,296,884 $ 101,066,170
- --------------------------------------------------------------------------------
Empresa Brasileira de
Aeronautica SA,
ADR 3,724,596 137,251,363
- --------------------------------------------------------------------------------
European Aeronautic
Defence & Space Co. 4,069,050 171,454,554
- --------------------------------------------------------------------------------
Lockheed
Martin Corp. 1,038,810 78,045,795
- --------------------------------------------------------------------------------
Northrop
Grumman Corp. 1,157,100 79,018,359
- --------------------------------------------------------------------------------
Raytheon Co. 2,257,684 103,492,235
-----------------
670,328,476
- --------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES--0.6%
Cendant Corp. 5,117,500 88,788,625
- --------------------------------------------------------------------------------
CONSTRUCTION & ENGINEERING--0.2%
JGC Corp. 1,909,040 37,548,238
- --------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--0.6%
Emerson Electric Co. 1,228,100 102,706,003
- --------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES--2.4%
3M Co. 2,087,000 157,965,030
- --------------------------------------------------------------------------------
Hutchison
Whampoa Ltd. 5,515,920 50,419,345
- --------------------------------------------------------------------------------
Siemens AG 1,813,118 169,033,626
-----------------
377,418,001
- --------------------------------------------------------------------------------
MACHINERY--0.8%
Fanuc Ltd. 486,100 46,792,804
- --------------------------------------------------------------------------------
Hyundai Heavy
Industries Co. Ltd. 915,000 79,860,025
-----------------
126,652,829
- --------------------------------------------------------------------------------
TRANSPORTATION INFRASTRUCTURE--0.3%
Macquarie Airports 17,836,205 43,031,422
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY--22.1%
- --------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT--5.7%
Cisco Systems, Inc. 1 4,337,406 93,991,588
- --------------------------------------------------------------------------------
Corning, Inc. 1 6,883,298 185,229,549
- --------------------------------------------------------------------------------
Juniper
Networks, Inc. 1 2,510,034 47,991,850
- --------------------------------------------------------------------------------
QUALCOMM, Inc. 2,684,986 135,887,141
17 | OPPENHEIMER GLOBAL FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT Continued
Telefonaktiebolaget LM
Ericsson, B Shares 116,513,336 $ 441,268,608
-----------------
904,368,736
- --------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS--0.7%
International Business
Machines Corp. 1,312,187 108,216,062
- --------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS--2.9%
Hoya Corp. 2,605,516 105,150,391
- --------------------------------------------------------------------------------
Keyence Corp. 326,851 84,975,706
- --------------------------------------------------------------------------------
Kyocera Corp. 468,800 41,300,779
- --------------------------------------------------------------------------------
Murata Manufacturing
Co. Ltd. 1,935,804 131,082,055
- --------------------------------------------------------------------------------
Nidec Corp. 642,308 52,716,188
- --------------------------------------------------------------------------------
Tandberg ASA 5,486,062 49,598,568
-----------------
464,823,687
- --------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES--0.2%
Yahoo!, Inc. 1 1,156,600 37,311,916
- --------------------------------------------------------------------------------
IT SERVICES--1.9%
Automatic Data
Processing, Inc. 2,125,300 97,083,704
- --------------------------------------------------------------------------------
First Data Corp. 490,000 22,941,800
- --------------------------------------------------------------------------------
Infosys
Technologies Ltd. 2,766,973 185,380,973
-----------------
305,406,477
- --------------------------------------------------------------------------------
OFFICE ELECTRONICS--0.4%
Canon, Inc. 820,788 54,324,032
- --------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT--5.1%
Advanced Micro
Devices, Inc. 1 9,136,642 302,971,049
- --------------------------------------------------------------------------------
Altera Corp. 1 3,417,018 70,527,252
- --------------------------------------------------------------------------------
Cree, Inc. 1 2,662,068 87,342,451
- --------------------------------------------------------------------------------
International
Rectifier Corp. 1 1,985,040 82,240,207
- --------------------------------------------------------------------------------
Samsung
Electronics Co. 244,440 158,498,559
- --------------------------------------------------------------------------------
Taiwan Semiconductor
Manufacturing
Co. Ltd. 50,000,000 98,895,513
-----------------
800,475,031
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
SOFTWARE--5.2%
Adobe Systems, Inc. 1 2,443,400 $ 85,323,528
- --------------------------------------------------------------------------------
Enix Corp. 2,805,468 72,460,686
- --------------------------------------------------------------------------------
Intuit, Inc. 1 2,434,600 129,496,374
- --------------------------------------------------------------------------------
Microsoft Corp. 8,002,102 217,737,195
- --------------------------------------------------------------------------------
Nintendo Co. Ltd. 422,400 63,162,617
- --------------------------------------------------------------------------------
Novell, Inc. 1 10,456,359 80,304,837
- --------------------------------------------------------------------------------
SAP AG 809,415 175,874,487
-----------------
824,359,724
- --------------------------------------------------------------------------------
MATERIALS--0.2%
- --------------------------------------------------------------------------------
CHEMICALS--0.2%
Syngenta AG 1 218,195 30,662,620
- --------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES--4.1%
- --------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES--4.1%
KDDI Corp. 29,336 156,774,376
- --------------------------------------------------------------------------------
SK Telecom Co.
Ltd., ADR 6,113,336 144,213,596
- --------------------------------------------------------------------------------
Vodafone Group plc 163,299,843 341,880,763
-----------------
642,868,735
- --------------------------------------------------------------------------------
UTILITIES--1.4%
- --------------------------------------------------------------------------------
ELECTRIC UTILITIES--0.9%
Energias de
Portugal SA 13,761,310 54,032,629
- --------------------------------------------------------------------------------
Fortum Oyj 3,500,000 88,308,006
-----------------
142,340,635
- --------------------------------------------------------------------------------
GAS UTILITIES--0.5%
Hong Kong & China
Gas Co. Ltd. 31,138,280 75,245,704
-----------------
Total Common Stocks
(Cost $10,622,086,860) 15,681,163,086
PRINCIPAL
AMOUNT
- --------------------------------------------------------------------------------
SHORT-TERM NOTES--0.4%
- --------------------------------------------------------------------------------
Gemini Securitization Corp.,
4.85%, 4/3/06 4
(Cost $59,983,833) $ 60,000,000 59,983,833
18 | OPPENHEIMER GLOBAL FUND
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------
JOINT REPURCHASE AGREEMENTS--0.3%
- --------------------------------------------------------------------------------
Undivided interest of 2.39% in joint
repurchase agreement (Principal Amount/Value
$2,051,676,000, with a maturity value of
$2,052,457,347) with UBS Warburg LLC, 4.57%,
dated 3/31/06, to be repurchased at
$48,959,638 on 4/3/06, collateralized
by Federal National Mortgage Assn., 5%--6%,
3/1/34--3/1/36, with a value of
$2,098,378,320 (Cost $48,941,000) $ 48,941,000 $ 48,941,000
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE
(COST $10,731,011,693) 99.9% 15,790,087,919
- --------------------------------------------------------------------------------
OTHER ASSETS
NET OF LIABILITIES 0.1 19,226,797
-------------------------------
NET ASSETS 100.0% $15,809,314,716
===============================
FOOTNOTES TO STATEMENT OF INVESTMENTS
1. Non-income producing security.
2. 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, 2006. Transactions during the period in
which the issuer was an affiliate are as follows:
SHARES GROSS GROSS SHARES
SEPTEMBER 30, 2005 ADDITIONS REDUCTIONS MARCH 31, 2006
- --------------------------------------------------------------------------------------
Swiss Medical SA 960,000 -- -- 960,000
Zee Telefilms Ltd. 19,685,229 1,830,713 -- 21,515,942
VALUE DIVIDEND
SEE NOTE 1 INCOME
- --------------------------------------------------------------------------------------
Swiss Medical SA $ 12,992,130 $--
Zee Telefilms Ltd. 115,557,531 --
------------------------------
$ 128,549,661 $--
==============================
3. Illiquid or restricted security. The aggregate value of illiquid or
restricted securities as of March 31, 2006 was $33,543,779, which represents
0.21% of the Fund's net assets, all of which are considered restricted. See Note
6 of accompanying Notes.
4. Security issued in an exempt transaction without registration under the
Securities Act of 1933. Such securities amount to $59,983,833, or 0.38% of the
Fund's net assets, and have been determined to be liquid pursuant to guidelines
adopted by the Board of Trustees.
19 | OPPENHEIMER GLOBAL FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
DISTRIBUTION OF INVESTMENTS REPRESENTING GEOGRAPHIC HOLDINGS, AS A PERCENTAGE OF
TOTAL INVESTMENTS AT VALUE, IS AS FOLLOWS:
GEOGRAPHIC HOLDINGS VALUE PERCENT
- --------------------------------------------------------------------------------
United States $ 6,220,453,293 39.4%
United Kingdom 1,926,465,996 12.2
Japan 1,752,150,899 11.1
France 1,080,937,598 6.8
Germany 746,533,050 4.7
Sweden 742,505,251 4.7
India 491,064,394 3.1
Switzerland 485,271,539 3.1
Korea, Republic of South 382,572,180 2.4
Mexico 292,721,822 1.9
Canada 267,119,642 1.7
Brazil 230,913,185 1.5
The Netherlands 180,175,592 1.1
Cayman Islands 147,950,736 0.9
Hong Kong 125,665,055 0.8
Spain 115,800,637 0.7
Finland 102,874,972 0.7
Taiwan 98,895,513 0.6
Ireland 65,880,511 0.4
Singapore 63,707,050 0.4
Portugal 54,032,629 0.3
Norway 49,598,568 0.3
Bermuda 45,921,047 0.3
Australia 43,031,422 0.3
Denmark 40,241,807 0.3
Italy 24,611,401 0.2
Argentina 12,992,130 0.1
--------------------------
Total $ 15,790,087,919 100.0%
==========================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
20 | OPPENHEIMER GLOBAL FUND
STATEMENT OF ASSETS AND LIABILITIES Unaudited
- --------------------------------------------------------------------------------
March 31, 2006
- ---------------------------------------------------------------------------------------------------------
ASSETS
- ---------------------------------------------------------------------------------------------------------
Investments, at value--see accompanying statement of investments:
Unaffiliated companies (cost $10,646,304,480) $ 15,661,538,258
Affiliated companies (cost $84,707,213) 128,549,661
-----------------
15,790,087,919
- ---------------------------------------------------------------------------------------------------------
Cash 3,856,210
- ---------------------------------------------------------------------------------------------------------
Receivables and other assets:
Interest and dividends 39,018,689
Shares of beneficial interest sold 15,749,691
Other 419,122
-----------------
Total assets 15,849,131,631
- ---------------------------------------------------------------------------------------------------------
LIABILITIES
- ---------------------------------------------------------------------------------------------------------
Payables and other liabilities:
Shares of beneficial interest redeemed 16,146,915
Investments purchased 9,144,622
Distribution and service plan fees 8,853,556
Transfer and shareholder servicing agent fees 2,102,283
Trustees' compensation 1,921,022
Shareholder communications 470,728
Foreign capital gains tax 414,607
Other 763,182
-----------------
Total liabilities 39,816,915
- ---------------------------------------------------------------------------------------------------------
NET ASSETS $ 15,809,314,716
=================
- ---------------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- ---------------------------------------------------------------------------------------------------------
Paid-in capital $ 10,281,804,085
- ---------------------------------------------------------------------------------------------------------
Accumulated net investment loss (34,570,314)
- ---------------------------------------------------------------------------------------------------------
Accumulated net realized gain on investments and foreign currency transactions 503,391,402
- ---------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of assets and liabilities
denominated in foreign currencies 5,058,689,543
-----------------
NET ASSETS $ 15,809,314,716
=================
21 | OPPENHEIMER GLOBAL 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 $12,058,254,124 and
168,323,800 shares of beneficial interest outstanding) $71.64
Maximum offering price per share (net asset value plus sales charge of 5.75% of offering price) $76.01
- ---------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge) and
offering price per share (based on net assets of $1,535,206,491 and 22,964,874 shares
of beneficial interest outstanding) $66.85
- ---------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge) and
offering price per share (based on net assets of $1,330,913,353 and 19,577,350 shares
of beneficial interest outstanding) $67.98
- ---------------------------------------------------------------------------------------------------------
Class N Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge) and
offering price per share (based on net assets of $410,278,891 and 5,773,034 shares of beneficial
interest outstanding) $71.07
- ---------------------------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based on net assets of
$474,661,857 and 6,586,112 shares of beneficial interest outstanding) $72.07
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
22 | OPPENHEIMER GLOBAL FUND
STATEMENT OF OPERATIONS Unaudited
- --------------------------------------------------------------------------------
For the Six Months Ended March 31, 2006
- --------------------------------------------------------------------------------
INVESTMENT INCOME
- --------------------------------------------------------------------------------
Dividends (net of foreign withholding taxes of $6,254,845) $ 97,042,305
- --------------------------------------------------------------------------------
Interest 2,470,948
-------------
Total investment income 99,513,253
- --------------------------------------------------------------------------------
EXPENSES
- --------------------------------------------------------------------------------
Management fees 45,724,980
- --------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 13,330,770
Class B 7,425,448
Class C 6,047,650
Class N 877,828
- --------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 9,616,726
Class B 1,532,975
Class C 1,017,925
Class N 506,102
Class Y 108,270
- --------------------------------------------------------------------------------
Shareholder communications:
Class A 559,094
Class B 236,798
Class C 107,176
Class N 10,013
Class Y 1,662
- --------------------------------------------------------------------------------
Custodian fees and expenses 1,071,145
- --------------------------------------------------------------------------------
Trustees' compensation 301,395
- --------------------------------------------------------------------------------
Other 257,353
-------------
Total expenses 88,733,310
- --------------------------------------------------------------------------------
NET INVESTMENT INCOME 10,779,943
23 | OPPENHEIMER GLOBAL FUND
STATEMENT OF OPERATIONS Unaudited / Continued
- --------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
- -------------------------------------------------------------------------------------------
Net realized gain on:
Investments $ 608,817,214
Foreign currency transactions 2,337,823
-----------------
Net realized gain 611,155,037
- -------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on:
Investments (net of foreign capital gains tax of $414,607) 1,110,336,485
Translation of assets and liabilities denominated in foreign currencies (42,685,970)
-----------------
Net change in unrealized appreciation 1,067,650,515
- -------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 1,689,585,495
=================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
24 | OPPENHEIMER GLOBAL FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
MARCH 31, 2006 SEPTEMBER 30,
(UNAUDITED) 2005
- ------------------------------------------------------------------------------------------------------------------------
OPERATIONS
- ------------------------------------------------------------------------------------------------------------------------
Net investment income $ 10,779,943 $ 61,597,049
- ------------------------------------------------------------------------------------------------------------------------
Net realized gain 611,155,037 1,098,709,972
- ------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation 1,067,650,515 1,723,669,353
------------------------------------------
Net increase in net assets resulting from operations 1,689,585,495 2,883,976,374
- ------------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
- ------------------------------------------------------------------------------------------------------------------------
Dividends from net investment income:
Class A (68,536,828) (53,439,395)
Class B -- --
Class C -- --
Class N (910,564) (747,836)
Class Y (2,848,372) (3,744,450)
- ------------------------------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (320,946,926) --
Class B (47,069,361) --
Class C (36,978,192) --
Class N (10,192,572) --
Class Y (8,652,855) --
- ------------------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
- ------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
beneficial interest transactions:
Class A 728,738,559 48,893,746
Class B (74,511,453) (162,051,963)
Class C 94,505,016 66,000,503
Class N 55,695,923 43,621,630
Class Y 192,842,032 (235,964,750)
- ------------------------------------------------------------------------------------------------------------------------
NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------
Total increase 2,190,719,902 2,586,543,859
- ------------------------------------------------------------------------------------------------------------------------
Beginning of period 13,618,594,814 11,032,050,955
------------------------------------------
End of period (including accumulated net investment income
(loss) of $(34,570,314) and $26,945,507, respectively) $ 15,809,314,716 $ 13,618,594,814
==========================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
25 | OPPENHEIMER GLOBAL FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
MARCH 31, 2006 SEPT. 30,
CLASS A (UNAUDITED) 2005 2004 2003 2002 2001
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 66.16 $ 52.64 $ 44.32 $ 35.25 $ 40.04 $ 67.48
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .10 1 .39 1 .21 .21 .07 .20
Net realized and unrealized gain (loss) 7.83 13.47 8.45 8.86 (4.86) (15.68)
-----------------------------------------------------------------------------------------
Total from investment operations 7.93 13.86 8.66 9.07 (4.79) (15.48)
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.43) (.34) (.34) -- -- --
Distributions from net realized gain (2.02) -- -- -- -- (11.96)
------------------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (2.45) (.34) (.34) -- -- (11.96)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 71.64 $ 66.16 $ 52.64 $ 44.32 $ 35.25 $ 40.04
==========================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 12.30% 26.40% 19.58% 25.73% (11.96)% (27.10)%
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $ 12,058,254 $ 10,418,176 $8,232,135 $5,904,063 $ 4,559,330 $4,876,120
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 11,075,489 $ 9,449,471 $7,542,447 $4,950,791 $ 5,552,582 $5,851,970
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 0.30% 0.66% 0.48% 0.59% 0.18% 0.42%
Total expenses 1.08% 1.12% 4 1.15% 4,5 1.23% 4 1.23% 4 1.12% 4
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 11% 29% 22% 46% 27% 36%
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 FUND
SIX MONTHS YEAR
ENDED ENDED
MARCH 31, 2006 SEPT. 30,
CLASS B (UNAUDITED) 2005 2004 2003 2002 2001
- ----------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 61.72 $ 49.24 $ 41.52 $ 33.30 $ 38.11 $ 65.26
- ----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment loss (.17) 1 (.09) 1 (.31) (.25) (.32) (.06)
Net realized and unrealized gain (loss) 7.32 12.57 8.03 8.47 (4.49) (15.13)
---------------------------------------------------------------------------------------
Total from investment operations 7.15 12.48 7.72 8.22 (4.81) (15.19)
- ----------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income -- -- -- 2 -- -- --
Distributions from net realized gain (2.02) -- -- -- -- (11.96)
---------------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (2.02) -- -- -- -- (11.96)
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 66.85 $ 61.72 $ 49.24 $ 41.52 $ 33.30 $ 38.11
=======================================================================================
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 11.85% 25.35% 18.60% 24.69% (12.62)% (27.68)%
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 1,535,207 $ 1,488,390 $ 1,329,910 $ 1,224,725 $ 1,119,360 $ 1,386,315
- ----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 1,490,924 $ 1,430,704 $ 1,361,457 $ 1,113,678 $ 1,456,440 $ 1,731,624
- ----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment loss (0.53)% (0.16)% (0.39)% (0.27)% (0.60)% (0.35)%
Total expenses 1.89% 1.93% 1.98% 2.07% 2.00% 1.89%
Expenses after payments and waivers and
reduction to custodian expenses 1.89% 1.93% 1.97% 2.07% 2.00% 1.89%
- ----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 11% 29% 22% 46% 27% 36%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Less than $0.005 per share.
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.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
27 | OPPENHEIMER GLOBAL FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
MARCH 31, 2006 SEPT. 30,
CLASS C (UNAUDITED) 2005 2004 2003 2002 2001
- -----------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 62.72 $ 50.00 $ 42.19 $ 33.82 $ 38.71 $ 66.09
- -----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.15) 1 (.06) 1 (.04) (.04) (.12) .07
Net realized and unrealized gain (loss) 7.43 12.78 7.91 8.41 (4.77) (15.49)
----------------------------------------------------------------------------------------
Total from investment operations 7.28 12.72 7.87 8.37 (4.89) (15.42)
- -----------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income -- -- (.06) -- -- --
Distributions from net realized gain (2.02) -- -- -- -- (11.96)
----------------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (2.02) -- (.06) -- -- (11.96)
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 67.98 $ 62.72 $ 50.00 $ 42.19 $ 33.82 $ 38.71
========================================================================================
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 11.88% 25.44% 18.66% 24.75% (12.63)% (27.67)%
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in
thousands) $ 1,330,913 $ 1,135,134 $ 846,382 $ 610,815 $ 463,949 $ 418,525
- -----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 1,214,419 $ 998,745 $ 778,637 $ 508,597 $ 521,168 $ 448,751
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment loss (0.46)% (0.10)% (0.29)% (0.20)% (0.56)% (0.33)%
Total expenses 1.84% 1.88% 1.91% 2.02% 1.99% 1.89%
Expenses after payments and waivers and
reduction to custodian expenses 1.84% 1.87% 1.91% 2.02% 1.99% 1.89%
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 11% 29% 22% 46% 27% 36%
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.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
28 | OPPENHEIMER GLOBAL FUND
SIX MONTHS YEAR
ENDED ENDED
MARCH 31, 2006 SEPT. 30,
CLASS N (UNAUDITED) 2005 2004 2003 2002 2001 1
- ----------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 65.53 $ 52.21 $ 44.04 $ 35.13 $ 39.98 $ 50.13
- ----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment income (loss) (.02) 2 .16 2 .09 .10 .07 .01
Net realized and unrealized gain (loss) 7.76 13.33 8.32 8.81 (4.92) (10.16)
---------------------------------------------------------------------------------------
Total from investment operations 7.74 13.49 8.41 8.91 (4.85) (10.15)
- ----------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.18) (.17) (.24) -- -- --
Distributions from net realized gain (2.02) -- -- -- -- --
---------------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (2.20) (.17) (.24) -- -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 71.07 $ 65.53 $ 52.21 $ 44.04 $ 35.13 $ 39.98
=======================================================================================
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 12.09% 25.88% 19.13% 25.36% (12.13)% (20.25)%
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in
thousands) $ 410,279 $ 324,647 $ 219,888 $ 108,641 $ 51,077 $ 5,971
- ----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 354,394 $ 272,659 $ 173,134 $ 77,891 $ 33,737 $ 1,717
- ----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income (loss) (0.05)% 0.27% 0.14% 0.36% 0.14% 0.13%
Total expenses 1.44% 1.51% 1.58% 1.66% 1.45% 1.41%
Expenses after payments and waivers and
reduction to custodian expenses 1.44% 1.51% 1.53% 1.53% 1.45% 1.41%
- ----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 11% 29% 22% 46% 27% 36%
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.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
29 | OPPENHEIMER GLOBAL FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
MARCH 31, 2006 SEPT. 30,
CLASS Y (UNAUDITED) 2005 2004 2003 2002 2001
- -----------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 66.65 $ 52.99 $ 44.57 $ 35.38 $ 40.11 $ 67.53
- -----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .25 1 .49 1 .28 .20 .12 .22
Net realized and unrealized gain (loss) 7.85 13.64 8.55 8.99 (4.85) (15.68)
---------------------------------------------------------------------------------------
Total from investment operations 8.10 14.13 8.83 9.19 (4.73) (15.46)
- -----------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.66) (.47) (.41) -- -- --
Distributions from net realized gain (2.02) -- -- -- -- (11.96)
---------------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (2.68) (.47) (.41) -- -- (11.96)
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 72.07 $ 66.65 $ 52.99 $ 44.57 $ 35.38 $ 40.11
=======================================================================================
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 12.51% 26.76% 19.89% 25.98% (11.79)% (27.04)%
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 474,662 $ 252,248 $ 403,736 $ 263,670 $ 164,363 $ 165,281
- -----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 342,613 $ 252,837 $ 350,225 $ 207,637 $ 191,788 $ 194,016
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 0.73% 0.82% 0.73% 0.82% 0.37% 0.54%
Total expenses 0.72% 0.81% 0.91% 1.06% 1.15% 1.06%
Expenses after payments and waivers and
reduction to custodian expenses 0.72% 0.81% 0.91% 1.03% 1.05% 1.00%
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 11% 29% 22% 46% 27% 36%
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.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
30 | OPPENHEIMER GLOBAL FUND
NOTES TO FINANCIAL STATEMENTS Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Global 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. 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 may be
valued primarily using dealer-supplied valuations or a portfolio pricing service
authorized by the Board of Trustees. Securities listed or traded on National
Stock Exchanges or other domestic exchanges are valued based on the last sale
price of the security traded on that exchange prior to the time when the Fund's
assets are valued. Securities traded on NASDAQ are valued based on the closing
price provided by NASDAQ prior to the time when the Fund's assets are valued. In
the absence of a sale, the security is valued at the last sale price on the
prior trading day, if it is within the spread of the closing "bid" and "asked"
prices, and if not, at the closing bid price. Securities traded on foreign
exchanges are valued based on the last sale price on the principal exchange on
which the security is traded, as identified by the portfolio pricing service,
prior to the time when the Fund's assets are valued. In the absence of a sale,
the security is valued at the official closing price on the principal exchange.
Corporate, government and municipal debt instruments having a remaining maturity
in excess of sixty days and all mortgage-backed securities
31 | OPPENHEIMER GLOBAL FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
will be valued at the mean between the "bid" and "asked" prices. Futures
contracts traded on a commodities or futures exchange will be valued at the
final settlement price or official closing price on the principal exchange as
reported by such principal exchange at its trading session ending at, or most
recently prior to, the time when the Fund's assets are valued. Securities
(including restricted securities) for which market quotations are not readily
available are valued at their fair value. Foreign and domestic securities whose
values have been materially 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.
- --------------------------------------------------------------------------------
JOINT REPURCHASE AGREEMENTS. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the Fund, along with other affiliated funds
advised by the Manager, may transfer uninvested cash balances into joint trading
accounts on a daily basis. These balances are invested in one or more repurchase
agreements. Securities pledged as collateral for repurchase agreements are held
by a custodian bank until the agreements mature. Each agreement requires that
the market value of the collateral be sufficient to cover payments of interest
and principal. In the event of default by the other party to the agreement,
retention of the collateral may be subject to legal proceedings.
32 | OPPENHEIMER GLOBAL 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.
During the year ended September 30, 2005, the Fund utilized $722,207,750
of capital loss carryforward to offset capital gains realized in that fiscal
year.
As of September 30, 2005, the Fund had available for federal income tax
purposes post-October losses of $3,167,345.
Certain foreign countries impose a tax on capital gains which is accrued
by the Fund based on unrealized appreciation, if any, on affected securities.
The tax is paid when the gain is realized.
- --------------------------------------------------------------------------------
TRUSTEES' COMPENSATION. The Fund has adopted an unfunded retirement plan for the
Fund's independent trustees. Benefits are based on years of service and fees
paid to each trustee during the years of service. During the six months ended
March 31, 2006, the Fund's projected benefit obligations were increased by
$110,468 and payments of $137,761 were made to retired trustees, resulting in an
accumulated liability of $1,440,878 as of March 31, 2006.
The Board of Trustees has adopted a deferred compensation plan for
independent trustees that enables trustees to elect to defer receipt of all or a
portion of the annual compensation they are entitled to receive from the Fund.
For purposes of determining the amount owed to the Trustee under the plan,
deferred amounts are treated as though equal dollar amounts had been invested in
shares of the Fund or in other Oppenheimer funds selected by the Trustee. The
Fund purchases shares of the funds selected for deferral by the Trustee in
amounts equal to his or her deemed investment, resulting in a Fund asset equal
to the deferred compensation liability. Such assets are included as a component
of "Other" within the asset section of the Statement of Assets and Liabilities.
Deferral of trustees' fees under the plan will not affect the net assets of the
Fund, and will not materially affect the Fund's assets, liabilities or net
investment income per share. Amounts will be deferred until distributed in
accordance to the Plan.
33 | OPPENHEIMER GLOBAL FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations,
are recorded on the ex-dividend date. 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, to the extent they are not
offset by positive cash balances maintained by the Fund, 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. At March 31, 2006, the Fund had $213 of such earnings on cash
balances available to offset future custodian fees or interest expenses incurred
during the next fiscal year.
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
INDEMNIFICATIONS. The Fund's organizational documents provide current and former
trustees and officers with a limited indemnification against liabilities arising
in connection with the performance of their duties to the Fund. In the normal
course of business, the Fund may also enter into contracts that provide general
indemnifications. The Fund's maximum exposure under these arrangements is
unknown as this would be dependent on future claims that may be made against the
Fund. The risk of material loss from such claims is considered remote.
- --------------------------------------------------------------------------------
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.
34 | OPPENHEIMER GLOBAL FUND
- --------------------------------------------------------------------------------
2. SHARES OF BENEFICIAL INTEREST
The Fund has authorized an unlimited number of no par value shares of beneficial
interest of each class. Transactions in shares of beneficial interest were as
follows:
SIX MONTHS ENDED MARCH 31, 2006 YEAR ENDED SEPTEMBER 30, 2005
SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------------------------
CLASS A
Sold 18,901,334 $ 1,285,444,364 35,961,963 $ 2,131,410,668
Dividends and/or
distributions reinvested 5,556,414 366,223,238 841,709 50,266,867
Redeemed (13,606,939) (922,929,043) 1 (35,702,882) (2,132,783,789) 2
-------------------------------------------------------------------------
Net increase 10,850,809 $ 728,738,559 1,100,790 $ 48,893,746
=========================================================================
- -----------------------------------------------------------------------------------------------------
CLASS B
Sold 1,633,739 $ 103,756,661 3,391,199 $ 187,952,048
Dividends and/or
distributions reinvested 696,243 42,930,350 -- --
Redeemed (3,479,163) (221,198,464) 1 (6,288,270) (350,004,011) 2
-------------------------------------------------------------------------
Net decrease (1,149,181) $ (74,511,453) (2,897,071) $ (162,051,963)
=========================================================================
- -----------------------------------------------------------------------------------------------------
CLASS C
Sold 2,497,647 $ 161,090,790 4,062,463 $ 229,916,707
Dividends and/or
distributions reinvested 505,614 31,696,959 -- --
Redeemed (1,524,498) (98,282,733) 1 (2,890,444) (163,916,204) 2
-------------------------------------------------------------------------
Net increase 1,478,763 $ 94,505,016 1,172,019 $ 66,000,503
=========================================================================
- -----------------------------------------------------------------------------------------------------
CLASS N
Sold 1,513,242 $ 102,607,876 2,249,401 $ 132,942,125
Dividends and/or
distributions reinvested 164,841 10,788,852 12,325 731,377
Redeemed (859,498) (57,700,805) 1 (1,519,197) (90,051,872) 2
-------------------------------------------------------------------------
Net increase 818,585 $ 55,695,923 742,529 $ 43,621,630
=========================================================================
- -----------------------------------------------------------------------------------------------------
CLASS Y
Sold 2,999,545 $ 206,830,681 2,741,373 $ 164,137,908
Dividends and/or
distributions reinvested 166,020 10,995,532 62,062 3,724,357
Redeemed (363,982) (24,984,181) 1 (6,638,267) (403,827,015) 2
-------------------------------------------------------------------------
Net increase (decrease) 2,801,583 $ 192,842,032 (3,834,832) $ (235,964,750)
=========================================================================
1. Net of redemption fees of $20,881, $2,811, $2,290, $668 and $646 for Class A,
Class B, Class C, Class N and Class Y, respectively.
2. Net of redemption fees of $67,936, $10,286, $7,180, $1,960 and $1,818 for
Class A, Class B, Class C, Class N and Class Y, respectively.
35 | OPPENHEIMER GLOBAL FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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, 2006, were as
follows:
PURCHASES SALES
---------------------------------------------------------
Investment securities $ 1,965,833,571 $ 1,552,717,464
- --------------------------------------------------------------------------------
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% on the next $1.5 billion, 0.65% on the next $2.5
billion, 0.63% of the next $2.5 billion, 0.60% of the next $2.5 billion, 0.58%
of the next $4 billion, and beginning January 1, 2006, 0.56% of average annual
net assets in excess of $15 billion.
- --------------------------------------------------------------------------------
TRANSFER AGENT FEES. OppenheimerFunds Services (OFS), a division of the Manager,
acts as the transfer and shareholder servicing agent for the Fund. The Fund pays
OFS a per account fee. For the six months ended March 31, 2006, the Fund paid
$12,953,576 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
periodically 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 periodically 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
periods. 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% on Class B and
Class C shares and 0.25% on Class N shares.
36 | OPPENHEIMER GLOBAL FUND
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, 2006
for Class B, Class C and Class N shares were $7,278,666, $13,677,537 and
$3,242,475, 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 following table for the period
indicated.
CLASS A CLASS B CLASS C CLASS N
CLASS A CONTINGENT CONTINGENT CONTINGENT CONTINGENT
FRONT-END DEFERRED DEFERRED DEFERRED DEFERRED
SALES CHARGES SALES CHARGES SALES CHARGES SALES CHARGES SALES CHARGES
SIX MONTHS RETAINED BY RETAINED BY RETAINED BY RETAINED BY RETAINED BY
ENDED DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR
- --------------------------------------------------------------------------------------------------------------
March 31, 2006 $ 1,545,128 $ 6,777 $ 1,049,526 $ 54,050 $ 82,346
- --------------------------------------------------------------------------------------------------------------
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, 2006, the Fund had no outstanding foreign currency
contracts.
37 | OPPENHEIMER GLOBAL FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
6. ILLIQUID OR RESTRICTED SECURITIES
As of March 31, 2006, investments in securities included issues that are
illiquid or restricted. Restricted securities are purchased in private placement
transactions, are not registered under the Securities Act of 1933, may have
contractual restrictions on resale, and are valued under methods approved by the
Board of Trustees as reflecting fair value. A security may also be considered
illiquid if it lacks a readily available market or if its valuation has not
changed for a certain period of time. The Fund will not invest more than 10% of
its net assets (determined at the time of purchase and reviewed periodically) in
illiquid or restricted securities. Certain restricted securities, eligible for
resale to qualified institutional investors, are not subject to that limitation.
Securities that are illiquid or restricted are marked with the applicable
footnote on the Statement of Investments. Information concerning restricted
securities is as follows:
UNREALIZED
ACQUISITION VALUATION AS OF APPRECIATION
SECURITY DATES COST MARCH 31, 2006 (DEPRECIATION)
- ----------------------------------------------------------------------------------------------------
Nektar Therapeutics 6/25/03 $ 14,307,000 $ 20,551,649 $ 6,244,649
Swiss Medical SA 5/19/94-7/10/02 30,390,000 12,992,130 (17,397,870)
----------------------------------------------------
$ 44,697,000 $ 33,543,779 $ (11,153,221)
====================================================
- --------------------------------------------------------------------------------
7. LITIGATION
A complaint was filed as a putative class action against the Manager and the
Transfer Agent (and other defendants) in the U.S. District Court for the
Southern District of New York on January 10, 2005 and was amended on March 4,
2005. The complaint alleged, among other things, that the Manager charged
excessive fees for distribution and other costs, and that by permitting and/or
participating in those actions, the Directors/Trustees and the Officers of the
funds breached their fiduciary duties to fund shareholders under the Investment
Company Act of 1940 and at common law. The plaintiffs sought unspecified
damages, an accounting of all fees paid, and an award of attorneys' fees and
litigation expenses.
In response to the defendants' motions to dismiss the suit, seven of the
eight counts in the complaint, including the claims against certain of the
Oppenheimer funds, as nominal defendants, and against certain present and former
Directors, Trustees and Officers of the funds, and the Distributor, as
defendants, were dismissed with prejudice, by court order dated March 10, 2006,
and the remaining count against the Manager and the Transfer Agent was dismissed
with prejudice by court order dated April 5, 2006. The plaintiffs filed an
appeal of those dismissals on May 11, 2006.
The Manager believes that it is premature to render any opinion as to the
likelihood of an outcome unfavorable to them, the Funds, the Directors/Trustees
or the Officers on the appeal of the decisions of the district court, and that
no estimate can yet be made with any degree of certainty as to the amount or
range of any potential loss. However, the Manager believes that the allegations
contained in the complaints are without merit and that there are substantial
grounds to sustain the district court's rulings.
38 | OPPENHEIMER GLOBAL 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.
39 | OPPENHEIMER GLOBAL 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 Fund's
investment advisory agreement (the "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 Agreement. The Board employs an independent consultant to prepare a
report that provides information, including comparative information that the
Board requests for that purpose. In addition, the Board receives information
throughout the year regarding Fund services, fees, expenses and performance.
The Manager and the independent consultant provided information to the
Board on the following factors: (i) the nature, quality and extent of the
Manager's services, (ii) the investment performance of the Fund and the Manager,
(iii) the fees and expenses of the Fund, including comparative expense
information, (iv) the profitability of the Manager and its affiliates, including
an analysis of the cost of providing services by the Manager and its affiliates,
(v) the extent to which economies of scale are realized as the Fund grows and
whether fee levels reflect these economies of scale for Fund investors and (vi)
other benefits to the Manager from its relationship with the Fund. The Board was
aware that there are alternatives to retaining the Manager.
NATURE AND EXTENT OF SERVICES. The Board considered information on the
nature and extent of the services provided to the Fund and information regarding
the Manager's key personnel that provide such services. The Manager's duties
include providing the Fund with the services of the portfolio manager and the
Manager's investment team, who provide research, analysis and other advisory
services in regard to the Fund's investments; securities trading services;
oversight of third party service providers; monitoring compliance with
applicable Fund policies and procedures and adherence to the Fund's investment
restrictions. The Manager is responsible for providing certain administrative
services to the Fund as well. Those services include providing, and supervising
the activities of, all administrative and clerical personnel that are necessary
in order to provide effective corporate administration for the Fund; compiling
and maintaining records with respect to the Fund's operations; preparing and
filing reports required by the Securities and Exchange Commission; preparing
periodic reports regarding the operations of the Fund for its shareholders;
preparing proxy materials for shareholder meetings; and preparing the
registration statements required by Federal and state securities laws for the
sale of the Fund's shares. The Manager also provides the Fund with office space,
facilities and equipment.
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 took
40 | OPPENHEIMER GLOBAL FUND
account of the facts 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 has received regarding the experience and professional qualifications of
the Manager's personnel and the size and functions of its staff. In its
evaluation of the quality of the portfolio management services provided, the
Board considered the experience of Rajeev Bhaman and the Manager's Global
investment team and analysts. Mr. Bhaman has had over 16 years of experience
managing global/international investments. The Board members also considered
their experiences with the Manager and its officers and other personnel through
their service as directors or trustees of the Fund and other funds advised by
the Manager. The Board considered 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.
In light of the foregoing, the Board concluded that the Fund benefits from the
services provided under the Agreement as a result of the Manager's experience,
reputation, personnel, operations, and resources.
INVESTMENT PERFORMANCE OF THE MANAGER AND THE FUND. During the year, the
Manager provided information on the performance of the Fund and the Manager at
each Board meeting, including comparative performance information. The Board
also 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 multi-cap growth funds advised
the Manager and by other investment advisers. The Board noted that the Fund's
one-year, three-year, five-year and ten-year performance were all better than
its peer group average.
MANAGEMENT FEES AND EXPENSES. The Board reviewed the fees paid to the
Manager and its affiliates and the other expenses borne by the Fund. The Board
also evaluated the comparability of the fees charged and the services provided
to the Fund to those of other clients or accounts advised by the Manager. The
independent consultant provided comparative data in regard to the fees and
expenses of the Fund, other global multi-cap growth, global multi-cap value, and
global large-cap growth funds and other funds with comparable asset levels and
distribution features. The Board noted that the Fund's contractual and actual
management fees and total expenses were lower than its peer group median and
average.
ECONOMIES OF SCALE. The Board reviewed the extent to which the Manager may
realize economies of scale in managing and supporting the Fund, to what extent
those economies of scale benefit the Fund shareholders and the current level of
Fund assets in
41 | OPPENHEIMER GLOBAL FUND
BOARD APPROVAL OF THE FUND'S INVESTMENT
ADVISORY AGREEMENT Unaudited / Continued
- --------------------------------------------------------------------------------
relation to the Fund's breakpoint schedule for its management fees. The Board
also noted the Fund's breakpoints, which are intended to share economies of
scale that may exist as the Fund grows with its shareholders. Based on this
evaluation, the Board requested and the Manager agreed to a revised breakpoint
schedule that, effective January 1, 2006, reduced the management fee on average
annual net assets over $15.0 billion to 0.56%.
PROFITS AND OTHER BENEFITS TO THE MANAGER. The Board considered
information regarding the Manager's costs in serving as the Fund's investment
adviser, including the costs associated with the personnel and systems necessary
to manage the Fund, and information regarding the Manager's profitability from
its relationship with the Fund. 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 to
considering the profits realized by the Manager, the Board considered
information 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 for services provided and research provided to the Manager
in connection with permissible brokerage arrangements (soft dollar
arrangements).
CONCLUSIONS. These factors were also considered by the independent
Trustees meeting separately from the full Board, assisted by experienced counsel
to the Fund and the independent Trustees. Fund counsel is independent of the
Manager within the meaning and intent of the Securities and Exchange Commission
Rules.
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, and the revised fee structure
adopted by the Board and the Manager, are reasonable in relation to the services
provided. Accordingly, the Board elected to continue the 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.
42 | OPPENHEIMER GLOBAL 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. AUDIT COMMITTEE OF LISTED REGISTRANTS
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS.
Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES 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.
THE FUND'S GOVERNANCE COMMITTEE PROVISIONS WITH RESPECT TO NOMINATIONS OF
DIRECTORS/TRUSTEES TO THE RESPECTIVE BOARDS
1. The Fund's Governance Committee (the "Committee") will evaluate potential
Board candidates to assess their qualifications. The Committee shall have
the authority, upon approval of the Board, to retain an executive search
firm to assist in this effort. The Committee may consider recommendations
by business and personal contacts of current Board members and by
executive search firms which the Committee may engage from time to time
and may also consider shareholder recommendations. The Committee may
consider the advice and recommendation of the Funds' investment manager
and its affiliates in making the selection.
2. The Committee shall screen candidates for Board membership. The Committee
has not established specific qualifications that it believes must be met
by a trustee nominee. In evaluating trustee nominees, the Committee
considers, among other things, an individual's
background, skills, and experience; whether the individual is an
"interested person" as defined in the Investment Company Act of 1940; and
whether the individual would be deemed an "audit committee financial
expert" within the meaning of applicable SEC rules. The Committee also
considers whether the individual's background, skills, and experience will
complement the background, skills, and experience of other nominees and
will contribute to the Board. There are no differences in the manner in
which the Committee evaluates nominees for trustees based on whether the
nominee is recommended by a shareholder.
3. The Committee may consider nominations from shareholders for the Board at
such times as the Committee meets to consider new nominees for the Board.
The Committee shall have the sole discretion to determine the candidates
to present to the Board and, in such cases where required, to
shareholders. Recommendations for trustee nominees should, at a minimum,
be accompanied by the following:
o the name, address, and business, educational, and/or other pertinent
background of the person being recommended;
o a statement concerning whether the person is an "interested person"
as defined in the Investment Company Act of 1940;
o any other information that the Funds would be required to include in
a proxy statement concerning the person if he or she was nominated;
and
o the name and address of the person submitting the recommendation
and, if that person is a shareholder, the period for which that
person held Fund shares.
The recommendation also can include any additional information which the
person submitting it believes would assist the Committee in evaluating the
recommendation.
4. Shareholders should note that a person who owns securities issued by
Massachusetts Mutual Life Insurance Company (the parent company of the
Funds' investment adviser) would be deemed an "interested person" under
the Investment Company Act of 1940. In addition, certain other
relationships with Massachusetts Mutual Life Insurance Company or its
subsidiaries, with registered broker-dealers, or with the Funds' outside
legal counsel may cause a person to be deemed an "interested person."
5. Before the Committee decides to nominate an individual as a trustee,
Committee members and other directors customarily interview the individual
in person. In addition, the individual customarily is asked to complete a
detailed questionnaire which is designed to elicit information which must
be disclosed under SEC and stock exchange rules and to determine whether
the individual is subject to any statutory disqualification from serving
as a trustee of a registered investment company.
ITEM 11. CONTROLS AND PROCEDURES.
Based on their evaluation of the 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, 2006, the registrant's principal executive officer
and principal financial officer found the registrant's disclosure controls and
procedures to provide reasonable assurances that information required to be
disclosed by the 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.
There have been no changes in the registrant's internal controls over financial
reporting that occurred during the registrant's second fiscal quarter of the
period covered by this report that have materially affected, or are reasonably
likely to materially affect, the registrant's internal control over financial
reporting.
ITEM 12. EXHIBITS.
(a) (1) Not applicable to semiannual reports.
(2) Exhibits attached hereto.
(3) Not applicable.
(b) Exhibit attached hereto.
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 Fund
By: /s/ John V. Murphy
----------------------------
John V. Murphy
Principal Executive Officer
Date: May 15, 2006
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 15, 2006
By: /s/ Brian W. Wixted
----------------------------
Brian W. Wixted
Principal Financial Officer
Date: May 15, 2006