UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-6001
OPPENHEIMER GLOBAL OPPORTUNITIES FUND
(Exact name of registrant as specified in charter)
6803 SOUTH TUCSON WAY, CENTENNIAL, COLORADO 80112-3924
(Address of principal executive offices) (Zip code)
ROBERT G. ZACK, ESQ.
OPPENHEIMERFUNDS, INC.
TWO WORLD FINANCIAL CENTER, NEW YORK, NEW YORK 10281-1008
(Name and address of agent for service)
Registrant's telephone number, including area code: (303) 768-3200
Date of fiscal year end: SEPTEMBER
Date of reporting period: 09/30/2006
ITEM 1. REPORTS TO STOCKHOLDERS.
TOP HOLDINGS AND ALLOCATIONS
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TOP TEN COMMON STOCK HOLDINGS
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Advanced Micro Devices, Inc. 11.6%
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Telik, Inc. 3.9
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Nektar Therapeutics 3.8
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Oakley, Inc. 2.6
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Bombardier, Inc., Cl. B 2.4
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Saks, Inc. 2.3
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Cree, Inc. 2.2
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Interpublic Group of Cos., Inc. 2.0
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Continental Airlines, Inc., Cl. B 1.9
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Electrocomponents plc 1.6
Portfolio holdings and allocations are subject to change. Percentages are as of
September 30, 2006, and are based on net assets.
For more current Fund holdings, please visit www.oppenheimerfunds.com.
TOP TEN GEOGRAPHICAL HOLDINGS
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United States 64.6%
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Japan 7.0
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United Kingdom 6.3
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France 5.0
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Switzerland 4.0
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Sweden 3.4
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Canada 2.4
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Germany 2.0
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Spain 1.5
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Italy 1.4
Portfolio holdings and allocations are subject to change. Percentages are as of
September 30, 2006, and are based on the total market value of investments.
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8 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
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REGIONAL ALLOCATION
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
United States/Canada 67.0%
Europe 25.5
Asia 7.5
Portfolio holdings and allocations are subject to change. Percentages are as of
September 30, 2006, and are based on the total market value of investments.
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9 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
FUND PERFORMANCE DISCUSSION
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HOW HAS THE FUND PERFORMED? BELOW IS A DISCUSSION BY OPPENHEIMERFUNDS, INC., OF
THE FUND'S PERFORMANCE DURING ITS FISCAL YEAR ENDED SEPTEMBER 30, 2006, FOLLOWED
BY A GRAPHICAL COMPARISON OF THE FUND'S PERFORMANCE TO AN APPROPRIATE
BROAD-BASED MARKET INDEX.
MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE. The Fund's Class A shares (without
sales charge) generated strong returns, both in absolute terms and relative to
our benchmark, the Morgan Stanley Capital International, Inc. (MSCI) World
Index. We attribute this favorable performance to successful stock selection
overall during the past year, with a number of our top positions--including
microprocessor maker, Advanced Micro Devices, Inc. (AMD), our largest holding by
a wide margin as of September 30, 2006--contributing positively to the Fund's
results.
During the period, we continued to follow our bottom-up investment
strategy. In other words, we invest stock-by-stock, looking to buy companies
anywhere in the world that, in our view, offer a substantial amount of upside
growth potential relative to their risk. Our focus is on generating absolute
return, meaning that we invest in stocks because we believe they have good
appreciation prospects, and not just because they happen to be found in the
Fund's benchmark. We are long-term investors. Accordingly, we emphasize
companies with the potential to generate solid growth over the next three to
five years. In particular, we like businesses with a defensible market position,
such as an intellectual property advantage or a way of preserving their
competitive edge.
Our largest holding was AMD, the world's second-largest manufacturer of
microprocessors. This company provides an excellent example of the type of stock
we favor for the portfolio. Until recently, the microprocessor market was an
effective monopoly controlled by Intel. But through its innovative products, AMD
has helped break Intel's stranglehold on the marketplace and managed to turn
that monopoly into a duopoly. As a case in point: computer industry heavyweights
Hewlett-Packard Development Co. and Dell, Inc., have begun using AMD chips in
their products for the first time. AMD's emergence has made it a very strong
performer for the Fund during the current reporting period. We maintain a large
weighting in AMD because we believe it may continue to gain market share and
extend its competitive advantage over its less-innovative rival.
ABB Ltd., a Switzerland-based provider of infrastructure to the electric
utility industry, was another positive performer. We originally bought ABB
because the company has relatively few competitors and is well-positioned to
benefit as municipalities in emerging and developed markets look to upgrade
their aging energy infrastructure. When we first purchased ABB, it was trading
at a relatively low valuation because of several problems with the company that
we believed were temporary. This enabled us to establish a fairly large position
at an attractive price. Our decision to invest has since proved very profitable,
as
10 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
ABB has seen strong growth in its sales and profitability. We sold some of our
ABB holdings during the period to lock in gains but continue to own a meaningful
stake in the stock.
Also adding to performance were two of our U.S.-based airline holdings,
Continental Airlines, Inc. and AMR Corp., parent of American Airlines. Both
companies benefited from strong growth in air travel and were increasingly
profitable, despite the impact of rising oil prices.
In an environment of strong returns for the Fund, we had relatively few
significant detractors during the past year. One negative, however, was
U.S.-based biopharmaceutical company Nektar Therapeutics, our third-largest
holding at period end. Nektar, a maker of novel drug-delivery technologies, saw
its shares underperform in part because of as-yet-unanswered questions about the
safety of the company's inhaled insulin product for diabetics. Despite Nektar's
recent difficulties, we remain confident in its long-term growth potential and
have maintained our position in its stock. Another laggard during the period was
Biosite, Inc., a medical diagnostics company based in the United States. Biosite
provides medical professionals with testing systems for victims of heart
attacks, drug overdoses and other conditions. We sold our Biosite shares after
becoming concerned that the company was insufficiently forthcoming about its
troubles with the U.S. Food and Drug Administration, which was debating whether
to approve Biosite's innovative stroke diagnostic product. We were disappointed
to lose money on this sale, but in hindsight it proved to be the correct move
after the company's shares eventually fell even further.
Lastly, during the reporting period, the Fund received a special dividend
of $4 per share from Saks, Inc. This special dividend represented a significant
percentage of the current period's income.
IN CLOSING, PLEASE REMEMBER THAT INVESTING IN FOREIGN MARKETS ENTAILS
ADDITIONAL RISKS, INCLUDING THE RISKS ASSOCIATED WITH CURRENCY FLUCTUATIONS AND
POLITICAL UNCERTAINTIES, AS DESCRIBED IN THE PROSPECTUS.
COMPARING THE FUND'S PERFORMANCE TO THE MARKET. The graphs that follow show the
performance of a hypothetical $10,000 investment in each class of shares of the
Fund held until September 30, 2006. In the case of Class A, Class B and Class C
shares, performance is measured from a ten fiscal year period. In the case of
Class N shares, performance is measured from inception of the Class on March 1,
2001. In the case of Class Y shares, performance is measured from inception of
the Class on February 1, 2001. The Fund's performance reflects the deduction of
the maximum initial sales charge on Class A shares, the applicable contingent
deferred sales charge on Class B, Class C and Class N shares, and reinvestments
of all dividends and capital gains distributions. Past performance cannot
guarantee future results.
11 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
FUND PERFORMANCE DISCUSSION
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The Fund's performance is compared to the performance of the Morgan
Stanley Capital International, Inc. (MSCI) World Index, an unmanaged index of
issuers listed on the stock exchanges of 22 foreign countries and the United
States. It is widely recognized as a measure of global stock market performance.
Index performance reflects the reinvestment of dividends but does not consider
the effect of transaction costs, and none of the data in the graphs shows the
effect of taxes. The Fund's performance reflects the effects of the Fund's
business and operating expenses. While index comparisons may be useful to
provide a benchmark for the Fund's performance, it must be noted that the Fund's
investments are not limited to the investments in either index.
12 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
CLASS A SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Global Opportunities Fund (Class A)
MSCI World Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer Global
Opportunities Fund
(Class A) MSCI World Index
------------------ ----------------
09/30/1996 $ 9,425 $ 10,000
12/31/1996 $ 9,960 $ 10,469
03/31/1997 $ 10,637 $ 10,511
06/30/1997 $ 11,548 $ 12,105
09/30/1997 $ 13,085 $ 12,463
12/31/1997 $ 12,774 $ 12,168
03/31/1998 $ 14,174 $ 13,923
06/30/1998 $ 14,469 $ 14,219
09/30/1998 $ 11,938 $ 12,526
12/31/1998 $ 14,412 $ 15,185
03/31/1999 $ 15,063 $ 15,740
06/30/1999 $ 18,738 $ 16,505
09/30/1999 $ 20,301 $ 16,274
12/31/1999 $ 26,889 $ 19,033
03/31/2000 $ 31,266 $ 19,242
06/30/2000 $ 30,121 $ 18,574
09/30/2000 $ 27,720 $ 17,654
12/31/2000 $ 25,753 $ 16,574
03/31/2001 $ 21,962 $ 14,457
06/30/2001 $ 22,800 $ 14,858
09/30/2001 $ 17,105 $ 12,733
12/31/2001 $ 21,551 $ 13,836
03/31/2002 $ 21,465 $ 13,922
06/30/2002 $ 19,223 $ 12,646
09/30/2002 $ 14,367 $ 10,332
12/31/2002 $ 15,735 $ 11,132
03/31/2003 $ 14,295 $ 10,582
06/30/2003 $ 18,461 $ 12,407
09/30/2003 $ 21,312 $ 13,020
12/31/2003 $ 24,744 $ 14,891
03/31/2004 $ 27,421 $ 15,296
06/30/2004 $ 27,218 $ 15,455
09/30/2004 $ 25,256 $ 15,316
12/31/2004 $ 32,138 $ 17,161
03/31/2005 $ 29,741 $ 16,990
06/30/2005 $ 31,248 $ 17,092
09/30/2005 $ 33,819 $ 18,303
12/31/2005 $ 37,741 $ 18,881
03/31/2006 $ 43,166 $ 20,149
06/30/2006 $ 39,845 $ 20,083
09/30/2006 $ 40,704 $ 21,001
AVERAGE ANNUAL TOTAL RETURNS OF CLASS A SHARES WITH SALES CHARGE OF THE FUND AT
9/30/06
1-Year 13.43% 5-Year 17.53% 10-Year 15.07%
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH DOES NOT
GUARANTEE FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT
PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE QUOTED. FOR PERFORMANCE
DATA CURRENT TO THE MOST RECENT MONTH END, VISIT US AT WWW.OPPENHEIMERFUNDS.COM,
OR CALL US AT 1.800.525.7048. FUND RETURNS INCLUDE CHANGES IN SHARE PRICE,
REINVESTED DISTRIBUTIONS, AND THE APPLICABLE SALES CHARGE: FOR CLASS A SHARES,
THE CURRENT MAXIMUM INITIAL SALES CHARGE OF 5.75%; FOR CLASS B SHARES, THE
CONTINGENT DEFERRED SALES CHARGE OF 5% (1-YEAR) AND 2% (5-YEAR); AND FOR CLASS C
AND N SHARES, THE CONTINGENT 1% DEFERRED SALES CHARGE FOR THE 1-YEAR PERIOD.
THERE IS NO SALES CHARGE FOR CLASS Y SHARES. BECAUSE CLASS B SHARES CONVERT TO
CLASS A SHARES 72 MONTHS AFTER PURCHASE, SINCE-INCEPTION RETURN FOR CLASS B
SHARES USES CLASS A PERFORMANCE FOR THE PERIOD AFTER CONVERSION. SEE PAGE 18 FOR
FURTHER INFORMATION.
13 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
FUND PERFORMANCE DISCUSSION
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CLASS B SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Global Opportunities Fund (Class B)
MSCI World Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer Global
Opportunities Fund
(Class B) MSCI World Index
------------------ ----------------
09/30/1996 $ 10,000 $ 10,000
12/31/1996 $ 10,542 $ 10,469
03/31/1997 $ 11,244 $ 10,511
06/30/1997 $ 12,182 $ 12,105
09/30/1997 $ 13,769 $ 12,463
12/31/1997 $ 13,423 $ 12,168
03/31/1998 $ 14,864 $ 13,923
06/30/1998 $ 15,150 $ 14,219
09/30/1998 $ 12,471 $ 12,526
12/31/1998 $ 15,031 $ 15,185
03/31/1999 $ 15,678 $ 15,740
06/30/1999 $ 19,461 $ 16,505
09/30/1999 $ 21,052 $ 16,274
12/31/1999 $ 27,828 $ 19,033
03/31/2000 $ 32,301 $ 19,242
06/30/2000 $ 31,057 $ 18,574
09/30/2000 $ 28,522 $ 17,654
12/31/2000 $ 26,447 $ 16,574
03/31/2001 $ 22,515 $ 14,457
06/30/2001 $ 23,329 $ 14,858
09/30/2001 $ 17,472 $ 12,733
12/31/2001 $ 21,969 $ 13,836
03/31/2002 $ 21,839 $ 13,922
06/30/2002 $ 19,524 $ 12,646
09/30/2002 $ 14,577 $ 10,332
12/31/2002 $ 15,965 $ 11,132
03/31/2003 $ 14,504 $ 10,582
06/30/2003 $ 18,730 $ 12,407
09/30/2003 $ 21,623 $ 13,020
12/31/2003 $ 25,104 $ 14,891
03/31/2004 $ 27,821 $ 15,296
06/30/2004 $ 27,615 $ 15,455
09/30/2004 $ 25,624 $ 15,316
12/31/2004 $ 32,606 $ 17,161
03/31/2005 $ 30,174 $ 16,990
06/30/2005 $ 31,704 $ 17,092
09/30/2005 $ 34,313 $ 18,303
12/31/2005 $ 38,291 $ 18,881
03/31/2006 $ 43,795 $ 20,149
06/30/2006 $ 40,426 $ 20,083
09/30/2006 $ 41,297 $ 21,001
AVERAGE ANNUAL TOTAL RETURNS OF CLASS B SHARES WITH SALES CHARGE OF THE FUND AT
9/30/06
1-Year 14.40% 5-Year 17.78% 10-Year 15.24%
14 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
CLASS C SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Global Opportunities Fund (Class C)
MSCI World Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer Global
Opportunities Fund
(Class C) MSCI World Index
------------------ ----------------
09/30/1996 $ 10,000 $ 10,000
12/31/1996 $ 10,539 $ 10,469
03/31/1997 $ 11,245 $ 10,511
06/30/1997 $ 12,183 $ 12,105
09/30/1997 $ 13,774 $ 12,463
12/31/1997 $ 13,424 $ 12,168
03/31/1998 $ 14,864 $ 13,923
06/30/1998 $ 15,148 $ 14,219
09/30/1998 $ 12,475 $ 12,526
12/31/1998 $ 15,035 $ 15,185
03/31/1999 $ 15,681 $ 15,740
06/30/1999 $ 19,464 $ 16,505
09/30/1999 $ 21,056 $ 16,274
12/31/1999 $ 27,835 $ 19,033
03/31/2000 $ 32,315 $ 19,242
06/30/2000 $ 31,063 $ 18,574
09/30/2000 $ 28,529 $ 17,654
12/31/2000 $ 26,454 $ 16,574
03/31/2001 $ 22,525 $ 14,457
06/30/2001 $ 23,338 $ 14,858
09/30/2001 $ 17,474 $ 12,733
12/31/2001 $ 21,968 $ 13,836
03/31/2002 $ 21,849 $ 13,922
06/30/2002 $ 19,535 $ 12,646
09/30/2002 $ 14,569 $ 10,332
12/31/2002 $ 15,928 $ 11,132
03/31/2003 $ 14,441 $ 10,582
06/30/2003 $ 18,613 $ 12,407
09/30/2003 $ 21,447 $ 13,020
12/31/2003 $ 24,850 $ 14,891
03/31/2004 $ 27,495 $ 15,296
06/30/2004 $ 27,225 $ 15,455
09/30/2004 $ 25,229 $ 15,316
12/31/2004 $ 32,036 $ 17,161
03/31/2005 $ 29,581 $ 16,990
06/30/2005 $ 31,028 $ 17,092
09/30/2005 $ 33,513 $ 18,303
12/31/2005 $ 37,323 $ 18,881
03/31/2006 $ 42,614 $ 20,149
06/30/2006 $ 39,254 $ 20,083
09/30/2006 $ 40,031 $ 21,001
AVERAGE ANNUAL TOTAL RETURNS OF CLASS C SHARES WITH SALES CHARGE OF THE FUND AT
9/30/06
1-Year 18.45% 5-Year 18.03% 10-Year 14.88%
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH DOES NOT
GUARANTEE FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT
PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE QUOTED. FOR PERFORMANCE
DATA CURRENT TO THE MOST RECENT MONTH END, VISIT US AT WWW.OPPENHEIMERFUNDS.COM,
OR CALL US AT 1.800.525.7048. FUND RETURNS INCLUDE CHANGES IN SHARE PRICE,
REINVESTED DISTRIBUTIONS, AND THE APPLICABLE SALES CHARGE: FOR CLASS A SHARES,
THE CURRENT MAXIMUM INITIAL SALES CHARGE OF 5.75%; FOR CLASS B SHARES, THE
CONTINGENT DEFERRED SALES CHARGE OF 5% (1-YEAR) AND 2% (5-YEAR); AND FOR CLASS C
AND N SHARES, THE CONTINGENT 1% DEFERRED SALES CHARGE FOR THE 1-YEAR PERIOD.
THERE IS NO SALES CHARGE FOR CLASS Y SHARES. BECAUSE CLASS B SHARES CONVERT TO
CLASS A SHARES 72 MONTHS AFTER PURCHASE, SINCE-INCEPTION RETURN FOR CLASS B
SHARES USES CLASS A PERFORMANCE FOR THE PERIOD AFTER CONVERSION. SEE PAGE 18 FOR
FURTHER INFORMATION.
15 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
FUND PERFORMANCE DISCUSSION
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CLASS N SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Global Opportunities Fund (Class N)
MSCI World Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer Global
Opportunities Fund
(Class N) MSCI World Index
------------------ ----------------
03/01/2001 $ 10,000 $ 10,000
03/31/2001 $ 9,150 $ 9,345
06/30/2001 $ 9,492 $ 9,604
09/30/2001 $ 7,122 $ 8,231
12/31/2001 $ 8,966 $ 8,944
03/31/2002 $ 8,926 $ 8,999
06/30/2002 $ 7,988 $ 8,174
09/30/2002 $ 5,969 $ 6,678
12/31/2002 $ 6,533 $ 7,196
03/31/2003 $ 5,934 $ 6,840
06/30/2003 $ 7,658 $ 8,020
09/30/2003 $ 8,831 $ 8,416
12/31/2003 $ 10,242 $ 9,625
03/31/2004 $ 11,343 $ 9,887
06/30/2004 $ 11,246 $ 9,990
09/30/2004 $ 10,429 $ 9,900
12/31/2004 $ 13,260 $ 11,093
03/31/2005 $ 12,257 $ 10,982
06/30/2005 $ 12,872 $ 11,048
09/30/2005 $ 13,916 $ 11,831
12/31/2005 $ 15,512 $ 12,205
03/31/2006 $ 17,727 $ 13,024
06/30/2006 $ 16,353 $ 12,982
09/30/2006 $ 16,690 $ 13,575
AVERAGE ANNUAL TOTAL RETURNS OF CLASS N SHARES WITH SALES CHARGE OF THE FUND AT
9/30/06
1-Year 18.94% 5-Year 18.57% Since Inception (3/1/01) 9.61%
16 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
CLASS Y SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Global Opportunities Fund (Class Y)
MSCI World Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer Global
Opportunities Fund
(Class Y) MSCI World Index
------------------ ----------------
02/01/2001 $ 10,000 $ 10,000
03/31/2001 $ 8,120 $ 8,556
06/30/2001 $ 8,437 $ 8,794
09/30/2001 $ 6,335 $ 7,536
12/31/2001 $ 7,988 $ 8,189
03/31/2002 $ 7,966 $ 8,240
06/30/2002 $ 7,144 $ 7,484
09/30/2002 $ 5,348 $ 6,115
12/31/2002 $ 5,865 $ 6,589
03/31/2003 $ 5,334 $ 6,263
06/30/2003 $ 6,898 $ 7,343
09/30/2003 $ 7,971 $ 7,706
12/31/2003 $ 9,262 $ 8,813
03/31/2004 $ 10,273 $ 9,053
06/30/2004 $ 10,205 $ 9,147
09/30/2004 $ 9,478 $ 9,064
12/31/2004 $ 12,073 $ 10,157
03/31/2005 $ 11,177 $ 10,055
06/30/2005 $ 11,758 $ 10,116
09/30/2005 $ 12,734 $ 10,833
12/31/2005 $ 14,221 $ 11,175
03/31/2006 $ 16,279 $ 11,925
06/30/2006 $ 15,041 $ 11,886
09/30/2006 $ 15,378 $ 12,430
AVERAGE ANNUAL TOTAL RETURNS OF CLASS Y SHARES OF THE FUND AT 9/30/06
1-Year 20.77% 5-Year 19.41% Since Inception (2/1/01) 7.89%
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH DOES NOT
GUARANTEE FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT
PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE QUOTED. FOR PERFORMANCE
DATA CURRENT TO THE MOST RECENT MONTH END, VISIT US AT WWW.OPPENHEIMERFUNDS.COM,
OR CALL US AT 1.800.525.7048. FUND RETURNS INCLUDE CHANGES IN SHARE PRICE,
REINVESTED DISTRIBUTIONS, AND THE APPLICABLE SALES CHARGE: FOR CLASS A SHARES,
THE CURRENT MAXIMUM INITIAL SALES CHARGE OF 5.75%; FOR CLASS B SHARES, THE
CONTINGENT DEFERRED SALES CHARGE OF 5% (1-YEAR) AND 2% (5-YEAR); AND FOR CLASS C
AND N SHARES, THE CONTINGENT 1% DEFERRED SALES CHARGE FOR THE 1-YEAR PERIOD.
THERE IS NO SALES CHARGE FOR CLASS Y SHARES. BECAUSE CLASS B SHARES CONVERT TO
CLASS A SHARES 72 MONTHS AFTER PURCHASE, SINCE-INCEPTION RETURN FOR CLASS B
SHARES USES CLASS A PERFORMANCE FOR THE PERIOD AFTER CONVERSION. SEE PAGE 18 FOR
FURTHER INFORMATION.
17 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
NOTES
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Total returns and the ending account values in the graphs include changes in
share price and reinvestment of dividends and capital gains distributions in a
hypothetical investment for the periods shown. The Fund's total returns shown do
not reflect the deduction of income taxes on an individual's investment. Taxes
may reduce your actual investment returns on income or gains paid by the Fund or
any gains you may realize if you sell your shares.
INVESTORS SHOULD CONSIDER THE FUND'S INVESTMENT OBJECTIVES, RISKS, AND OTHER
CHARGES AND EXPENSES CAREFULLY BEFORE INVESTING. THE FUND'S PROSPECTUS CONTAINS
THIS AND OTHER INFORMATION ABOUT THE FUND, AND MAY BE OBTAINED BY ASKING YOUR
FINANCIAL ADVISOR, CALLING US AT 1.800.525.7048 OR VISITING OUR WEBSITE AT
WWW.OPPENHEIMERFUNDS.COM. READ THE PROSPECTUS CAREFULLY BEFORE INVESTING.
The Fund's investment strategy and focus can change over time. The mention of
specific fund holdings does not constitute a recommendation by OppenheimerFunds,
Inc.
CLASS A shares of the Fund were first publicly offered on 10/22/90. Unless
otherwise noted, Class A returns include the maximum initial sales charge of
5.75%.
CLASS B shares of the Fund were first publicly offered on 10/10/95. Unless
otherwise noted, Class B returns include the applicable contingent deferred
sales charge of 5% (1-year) and 2% (5-year). Because Class B shares convert to
Class A shares 72 months after purchase, the 10-year return for Class B uses
Class A performance for the period after conversion. Class B shares are subject
to an annual 0.75% asset-based sales charge.
CLASS C shares of the Fund were first publicly offered on 12/1/93. Unless
otherwise noted, Class C returns include the contingent deferred sales charge of
1% for the 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 2/1/01. Class Y shares
are offered only to certain institutional investors under special agreement with
the Distributor.
An explanation of the calculation of performance is in the Fund's Statement of
Additional Information.
18 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
FUND EXPENSES
- --------------------------------------------------------------------------------
FUND EXPENSES. As a shareholder of the Fund, you incur two types of costs: (1)
transaction costs, which may include sales charges (loads) on purchase payments,
contingent deferred sales charges on redemptions; and redemption fees, if any;
and (2) ongoing costs, including management fees; distribution and service fees;
and other Fund expenses. These examples are intended to help you understand your
ongoing costs (in dollars) of investing in the Fund and to compare these costs
with the ongoing costs of investing in other mutual funds.
The examples are based on an investment of $1,000.00 invested at the beginning
of the period and held for the entire 6-month period ended September 30, 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
19 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
FUND EXPENSES
- --------------------------------------------------------------------------------
exceptions described in the Statement of Additional Information). Therefore, the
"hypothetical" lines of the table are useful in comparing ongoing costs only,
and will not help you determine the relative total costs of owning different
funds. In addition, if these transactional costs were included, your costs would
have been higher.
- --------------------------------------------------------------------------------
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT PAID DURING
VALUE VALUE 6 MONTHS ENDED
(4/1/06) (9/30/06) SEPTEMBER 30, 2006
- --------------------------------------------------------------------------------
Class A Actual $1,000.00 $ 943.00 $5.52
- --------------------------------------------------------------------------------
Class A Hypothetical 1,000.00 1,019.40 5.74
- --------------------------------------------------------------------------------
Class B Actual 1,000.00 939.40 9.33
- --------------------------------------------------------------------------------
Class B Hypothetical 1,000.00 1,015.49 9.70
- --------------------------------------------------------------------------------
Class C Actual 1,000.00 939.40 9.18
- --------------------------------------------------------------------------------
Class C Hypothetical 1,000.00 1,015.64 9.54
- --------------------------------------------------------------------------------
Class N Actual 1,000.00 941.50 7.13
- --------------------------------------------------------------------------------
Class N Hypothetical 1,000.00 1,017.75 7.41
- --------------------------------------------------------------------------------
Class Y Actual 1,000.00 944.70 3.71
- --------------------------------------------------------------------------------
Class Y Hypothetical 1,000.00 1,021.26 3.86
Hypothetical assumes 5% annual return before expenses.
Expenses are equal to the Fund's annualized expense ratio for that class,
multiplied by the average account value over the period, multiplied by 183/365
(to reflect the one-half year period). Those annualized expense ratios based on
the 6-month period ended September 30, 2006 are as follows:
CLASS EXPENSE RATIOS
- ---------------------------
Class A 1.13%
- ---------------------------
Class B 1.91
- ---------------------------
Class C 1.88
- ---------------------------
Class N 1.46
- ---------------------------
Class Y 0.76
- --------------------------------------------------------------------------------
20 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
STATEMENT OF INVESTMENTS September 30, 2006
- --------------------------------------------------------------------------------
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
COMMON STOCKS--85.8%
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY--13.5%
- --------------------------------------------------------------------------------
AUTO COMPONENTS--1.3%
Goodyear Tire &
Rubber Co. (The) 1 4,000,000 $ 58,000,000
- --------------------------------------------------------------------------------
AUTOMOBILES--1.0%
Bayerische Motoren
Werke AG 800,000 42,880,511
- --------------------------------------------------------------------------------
DISTRIBUTORS--0.9%
Inchcape plc 4,000,000 39,225,599
- --------------------------------------------------------------------------------
HOUSEHOLD DURABLES--0.2%
iRobot Corp. 1 500,087 10,031,745
- --------------------------------------------------------------------------------
LEISURE EQUIPMENT & PRODUCTS--2.7%
Oakley, Inc. 2 6,800,000 115,940,000
- --------------------------------------------------------------------------------
Shimano, Inc. 200,000 5,587,302
---------------
121,527,302
- --------------------------------------------------------------------------------
MEDIA--2.7%
Getty Images, Inc. 1 500,000 24,840,000
- --------------------------------------------------------------------------------
Interpublic Group
of Cos., Inc. 1 9,000,000 89,100,000
- --------------------------------------------------------------------------------
Toei Animation Co.
Ltd. 400,000 8,651,852
---------------
122,591,852
- --------------------------------------------------------------------------------
MULTILINE RETAIL--2.3%
Saks, Inc. 6,000,000 103,680,000
- --------------------------------------------------------------------------------
SPECIALTY RETAIL--1.3%
AutoNation, Inc. 1 700,000 14,630,000
- --------------------------------------------------------------------------------
Hennes & Mauritz
AB, B Shares 1,100,000 46,007,519
---------------
60,637,519
- --------------------------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS--1.1%
LVMH Moet
Hennessey Louis
Vuitton 500,000 51,514,690
- --------------------------------------------------------------------------------
CONSUMER STAPLES--4.3%
- --------------------------------------------------------------------------------
FOOD & STAPLES RETAILING--1.9%
Rite Aid Corp. 1 16,003,300 72,654,982
- --------------------------------------------------------------------------------
Tesco plc 2,000,000 13,480,874
---------------
86,135,856
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
FOOD PRODUCTS--2.4%
Nestle SA 170,000 $ 59,274,661
- --------------------------------------------------------------------------------
Parmalat SpA 1 7,954,000 28,543,665
- --------------------------------------------------------------------------------
Thorntons plc 2 6,300,000 18,047,520
---------------
105,865,846
- --------------------------------------------------------------------------------
FINANCIALS--7.4%
- --------------------------------------------------------------------------------
CAPITAL MARKETS--1.9%
Mediobanca SpA 703,300 15,339,344
- --------------------------------------------------------------------------------
Nomura Securities
Co. Ltd. 4,000,000 70,433,862
---------------
85,773,206
- --------------------------------------------------------------------------------
COMMERCIAL BANKS--4.2%
Banco Comercial
Portugues SA 8,000,000 24,853,857
- --------------------------------------------------------------------------------
Barclays plc 4,000,000 50,478,384
- --------------------------------------------------------------------------------
DBS Group Holdings
Ltd. 2,000,000 24,177,554
- --------------------------------------------------------------------------------
Lloyds TSB Group plc 5,000,000 50,506,469
- --------------------------------------------------------------------------------
Sumitomo Trust &
Banking Co. Ltd.
(The) 4,000,000 42,037,414
---------------
192,053,678
- --------------------------------------------------------------------------------
INSURANCE--1.3%
Assicurazioni
Generali SpA 500,000 18,703,795
- --------------------------------------------------------------------------------
Swiss Reinsurance Co. 500,000 38,266,224
---------------
56,970,019
- --------------------------------------------------------------------------------
HEALTH CARE--21.0%
- --------------------------------------------------------------------------------
BIOTECHNOLOGY--10.7%
Arena
Pharmaceuticals,
Inc. 1,2 4,000,000 47,920,000
- --------------------------------------------------------------------------------
Cepheid, Inc. 1,2 4,900,000 35,378,000
- --------------------------------------------------------------------------------
Kosan Biosciences,
Inc. 1,2 3,032,188 14,645,468
- --------------------------------------------------------------------------------
NicOx SA 1,2 5,077,849 66,643,508
- --------------------------------------------------------------------------------
Novavax, Inc. 1,2 6,009,883 22,777,457
- --------------------------------------------------------------------------------
Q-Med AB 3,999,900 57,038,891
- --------------------------------------------------------------------------------
Renovis, Inc. 1,2 2,900,000 39,904,000
21 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
BIOTECHNOLOGY Continued
Rigel Pharmaceuticals,
Inc. 1,2 2,001,730 $ 20,557,767
- --------------------------------------------------------------------------------
Telik, Inc. 1,2 10,000,000 177,900,000
---------------
482,765,091
- --------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES--6.4%
ArthroCare Corp. 1 900,000 42,174,000
- --------------------------------------------------------------------------------
Bio-Rad Laboratories,
Inc., Cl. A 1 400,000 28,292,000
- --------------------------------------------------------------------------------
bioMerieux 500,000 31,764,751
- --------------------------------------------------------------------------------
Carl Zeiss Meditec
AG 900,000 20,599,536
- --------------------------------------------------------------------------------
Elekta AB, B Shares 1,600,000 30,130,388
- --------------------------------------------------------------------------------
Essilor International
SA 300,000 30,718,606
- --------------------------------------------------------------------------------
Intuitive Surgical, Inc. 1 500,000 52,725,000
- --------------------------------------------------------------------------------
Kyphon, Inc. 1 1,000,000 37,420,000
- --------------------------------------------------------------------------------
Tecan AG 300,000 14,970,611
---------------
288,794,892
- --------------------------------------------------------------------------------
PHARMACEUTICALS--3.9%
Nektar Therapeutics 1,2 12,000,000 172,920,000
- --------------------------------------------------------------------------------
INDUSTRIALS--10.1%
- --------------------------------------------------------------------------------
AEROSPACE & DEFENSE--2.4%
Bombardier, Inc., Cl. B 1 34,000,000 106,159,696
- --------------------------------------------------------------------------------
AIRLINES--3.4%
AMR Corp. 1 3,000,000 69,420,000
- --------------------------------------------------------------------------------
Continental Airlines,
Inc., Cl. B 1 3,000,000 84,930,000
---------------
154,350,000
- --------------------------------------------------------------------------------
CONSTRUCTION & ENGINEERING--0.8%
JGC Corp. 2,000,000 33,573,291
- --------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--2.6%
ABB Ltd. 5,000,000 65,776,321
- --------------------------------------------------------------------------------
II-VI, Inc. 1 300,000 7,476,000
- --------------------------------------------------------------------------------
Schneider Electric SA 400,000 44,610,137
---------------
117,862,458
- --------------------------------------------------------------------------------
MACHINERY--0.9%
IWKA AG 1,2 1,361,000 27,682,175
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
MACHINERY Continued
SMC Corp. 100,000 $ 13,189,881
---------------
40,872,056
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY--24.6%
- --------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT--1.0%
Finisar Corp. 1 13,000,000 47,190,000
- --------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS--3.8%
Cogent, Inc. 1 1,500,600 20,603,238
- --------------------------------------------------------------------------------
Cognex Corp. 1,000,000 25,260,000
- --------------------------------------------------------------------------------
Electrocomponents
plc 14,000,000 72,937,145
- --------------------------------------------------------------------------------
Keyence Corp. 200,000 46,214,648
- --------------------------------------------------------------------------------
Shimadzu Corp. 1,000,000 7,695,238
---------------
172,710,269
- --------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES--1.3%
eBay, Inc. 1 2,000,000 56,720,000
- --------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT--16.7%
Advanced Micro
Devices, Inc. 1 21,000,000 521,850,000
- --------------------------------------------------------------------------------
Altera Corp. 1 2,000,000 36,760,000
- --------------------------------------------------------------------------------
ATMI, Inc. 1 500,000 14,535,000
- --------------------------------------------------------------------------------
Cree, Inc. 1,2 5,002,500 100,600,275
- --------------------------------------------------------------------------------
Rambus, Inc. 1 2,000,000 34,880,000
- --------------------------------------------------------------------------------
Xilinx, Inc. 2,000,000 43,900,000
---------------
752,525,275
- --------------------------------------------------------------------------------
SOFTWARE--1.8%
Autonomy Corp. plc 1 4,503,519 39,104,026
- --------------------------------------------------------------------------------
Nintendo Co. Ltd. 200,000 41,210,582
---------------
80,314,608
- --------------------------------------------------------------------------------
MATERIALS--3.4%
- --------------------------------------------------------------------------------
CHEMICALS--2.9%
Kuraray Co. Ltd. 4,000,000 44,495,238
- --------------------------------------------------------------------------------
Novozymes AS,
B Shares 800,000 61,021,965
- --------------------------------------------------------------------------------
Symyx Technologies,
Inc. 1 1,283,020 27,187,194
---------------
132,704,397
22 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS--0.5%
Holmen AB, B Shares 500,000 $ 20,878,394
- --------------------------------------------------------------------------------
UTILITIES--1.5%
- --------------------------------------------------------------------------------
ELECTRIC UTILITIES--1.5%
Iberdrola SA 1,500,000 67,143,454
---------------
Total Common Stocks
(Cost $3,350,727,773) 3,864,371,704
PRINCIPAL
AMOUNT
- --------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--13.5%
- --------------------------------------------------------------------------------
U.S. Treasury Bonds:
4.50%, 2/15/36 $ 200,000,000 191,703,200
5.25%, 11/15/28-
2/15/29 200,000,000 211,523,600
5.375%, 2/15/31 100,000,000 108,039,100
- --------------------------------------------------------------------------------
U.S. Treasury Nts.,
4.50%, 2/15/16 100,000,000 99,027,400
---------------
Total U.S. Government
Obligations
(Cost $581,322,658) 610,293,300
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------
JOINT REPURCHASE AGREEMENTS--0.5%
- --------------------------------------------------------------------------------
Undivided interest of 2.34% in joint repurchase
agreement (Principal Amount/Value
$1,040,829,000, with a maturity value
of $1,041,284,363) with UBS Warburg
LLC, 5.25%, dated 9/29/06, to be
repurchased at $24,365,655
on 10/2/06, collateralized
by Federal National
Mortgage Assn., 5%,
7/1/35-12/1/35, with
a value of
$1,064,458,659
(Cost $24,355,000) $ 24,355,000 $ 24,355,000
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS,
AT VALUE
(COST $3,956,405,431) 99.8% 4,499,020,004
- --------------------------------------------------------------------------------
OTHER ASSETS NET
OF LIABILITIES 0.2 6,970,332
-------------------------------
NET ASSETS 100.0% $4,505,990,336
===============================
23 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
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 September 30, 2006. Transactions during the period in
which the issuer was an affiliate are as follows:
SHARES GROSS GROSS SHARES
SEPT. 30, 2005 ADDITIONS REDUCTIONS SEPT. 30, 2006
- --------------------------------------------------------------------------------------------------
AMR Corp.* 10,000,000 -- 7,000,000 3,000,000
Analogic Corp. 700,000 -- 700,000 --
Arena Pharmaceuticals, Inc. -- 4,000,000 -- 4,000,000
Cepheid, Inc. -- 4,900,000 -- 4,900,000
Continental Airlines, Inc., Cl. B* 6,305,700 1,800,000 5,105,700 3,000,000
Cree, Inc. 1,500,000 3,502,500 -- 5,002,500
IWKA AG 500,000 1,000,000 139,000 1,361,000
Kosan Biosciences, Inc. -- 3,032,188 -- 3,032,188
Nektar Therapeutics 12,000,000 -- -- 12,000,000
NicOx SA 5,077,849 -- -- 5,077,849
Novavax, Inc. -- 6,009,883 -- 6,009,883
Oakley, Inc. 2,000,000 4,800,000 -- 6,800,000
Renovis, Inc. -- 2,900,000 -- 2,900,000
Rigel Pharmaceuticals, Inc. -- 2,001,730 -- 2,001,730
Telik, Inc. 2,000,000 8,000,000 -- 10,000,000
Thorntons plc 4,300,000 2,000,000 -- 6,300,000
VALUE DIVIDEND REALIZED
SEE NOTE 1 INCOME GAIN (LOSS)
- --------------------------------------------------------------------------------------------------
AMR Corp.* $ --* $ -- $ 63,522,922
Analogic Corp. -- 126,000 9,315,105
Arena Pharmaceuticals, Inc. 47,920,000 -- --
Cepheid, Inc. 35,378,000 -- --
Continental Airlines, Inc., Cl. B* --* -- 67,552,352
Cree, Inc. 100,600,275 -- --
IWKA AG 27,682,175 -- (104,210)
Kosan Biosciences, Inc. 14,645,468 -- --
Nektar Therapeutics 172,920,000 -- --
NicOx SA 66,643,508 -- --
Novavax, Inc. 22,777,457 -- --
Oakley, Inc. 115,940,000 480,000 --
Renovis, Inc. 39,904,000 -- --
Rigel Pharmaceuticals, Inc. 20,557,767 -- --
Telik, Inc. 177,900,000 -- --
Thorntons plc 18,047,520 292,400 --
--------------------------------------------
$ 860,916,170 $ 898,400 $ 140,286,169
============================================
* No longer an affiliate as of September 30, 2006. The value of the security has
therefore been excluded from this table.
24 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
DISTRIBUTION OF INVESTMENTS REPRESENTING GEOGRAPHIC HOLDINGS, AS A PERCENTAGE OF
TOTAL INVESTMENTS AT VALUE, IS AS FOLLOWS:
GEOGRAPHIC HOLDINGS VALUE PERCENT
- --------------------------------------------------------------------------------
United States $ 2,907,450,426 64.6%
Japan 313,089,308 7.0
United Kingdom 283,780,017 6.3
France 225,251,692 5.0
Switzerland 178,287,817 4.0
Sweden 154,055,192 3.4
Canada 106,159,696 2.4
Germany 91,162,222 2.0
Spain 67,143,454 1.5
Italy 62,586,804 1.4
Denmark 61,021,965 1.4
Portugal 24,853,857 0.5
Singapore 24,177,554 0.5
-----------------------------------
Total $ 4,499,020,004 100.0%
===================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
25 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
STATEMENT OF ASSETS AND LIABILITIES September 30, 2006
- --------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------
ASSETS
- -----------------------------------------------------------------------------------------------------
Investments, at value--see accompanying statement of investments:
Unaffiliated companies (cost $2,972,902,628) $ 3,638,103,834
Affiliated companies (cost $983,502,803) 860,916,170
-----------------
4,499,020,004
- -----------------------------------------------------------------------------------------------------
Cash 1,247,862
- -----------------------------------------------------------------------------------------------------
Unrealized appreciation on foreign currency contracts 423
- -----------------------------------------------------------------------------------------------------
Receivables and other assets:
Interest and dividends 10,498,317
Shares of beneficial interest sold 9,402,528
Other 108,152
-----------------
Total assets 4,520,277,286
- -----------------------------------------------------------------------------------------------------
LIABILITIES
- -----------------------------------------------------------------------------------------------------
Payables and other liabilities:
Shares of beneficial interest redeemed 7,322,345
Investments purchased 2,676,896
Distribution and service plan fees 2,611,131
Transfer and shareholder servicing agent fees 677,189
Trustees' compensation 567,138
Shareholder communications 320,495
Other 111,756
-----------------
Total liabilities 14,286,950
- -----------------------------------------------------------------------------------------------------
NET ASSETS $ 4,505,990,336
=================
- -----------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- -----------------------------------------------------------------------------------------------------
Par value of shares of beneficial interest $ 114,591
- -----------------------------------------------------------------------------------------------------
Additional paid-in capital 3,460,787,286
- -----------------------------------------------------------------------------------------------------
Accumulated net investment income 3,497,211
- -----------------------------------------------------------------------------------------------------
Accumulated net realized gain on investments and foreign currency transactions 498,981,338
- -----------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation
of assets and liabilities denominated in foreign currencies 542,609,910
-----------------
NET ASSETS $ 4,505,990,336
=================
26 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
- -----------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
- -----------------------------------------------------------------------------------------------------
Class A Shares:
Net asset value and redemption price per share (based on net assets
of $2,975,115,696 and 74,682,052 shares of beneficial interest outstanding) $39.84
Maximum offering price per share (net asset value plus sales charge
of 5.75% of offering price) $42.27
- -----------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $643,743,138
and 16,888,253 shares of beneficial interest outstanding) $38.12
- -----------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $645,095,698
and 16,919,101 shares of beneficial interest outstanding) $38.13
- -----------------------------------------------------------------------------------------------------
Class N Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $107,367,158
and 2,746,094 shares of beneficial interest outstanding) $39.10
- -----------------------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share
(based on net assets of $134,668,646 and 3,355,115 shares of beneficial interest
outstanding) $40.14
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
27 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
STATEMENT OF OPERATIONS For the Year Ended September 30, 2006
- --------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------
INVESTMENT INCOME
- -----------------------------------------------------------------------------------------------------
Dividends:
Unaffiliated companies (net of foreign withholding taxes of $2,923,369) $ 50,466,272
Affiliated companies 898,400
- -----------------------------------------------------------------------------------------------------
Interest 20,176,779
- -----------------------------------------------------------------------------------------------------
Other income 54,022
-----------------
Total investment income 71,595,473
- -----------------------------------------------------------------------------------------------------
EXPENSES
- -----------------------------------------------------------------------------------------------------
Management fees 28,804,292
- -----------------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 6,480,441
Class B 7,416,517
Class C 5,839,561
Class N 477,941
- -----------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 4,235,933
Class B 1,453,930
Class C 968,899
Class N 251,311
Class Y 64,660
- -----------------------------------------------------------------------------------------------------
Shareholder communications:
Class A 490,723
Class B 238,519
Class C 118,744
Class N 7,745
- -----------------------------------------------------------------------------------------------------
Custodian fees and expenses 256,093
- -----------------------------------------------------------------------------------------------------
Trustees' compensation 129,103
- -----------------------------------------------------------------------------------------------------
Other 167,667
-----------------
Total expenses 57,402,079
Less reduction to custodian expenses (44,135)
-----------------
Net expenses 57,357,944
- -----------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 14,237,529
28 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
- -----------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
- -----------------------------------------------------------------------------------------------------
Net realized gain on:
Investments:
Unaffiliated companies $ 458,919,245
Affiliated companies 140,286,169
Foreign currency transactions 32,657,761
-----------------
Net realized gain 631,863,175
- -----------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on:
Investments (11,879,234)
Translation of assets and liabilities denominated in foreign currencies 31,239,710
-----------------
Net change in unrealized appreciation 19,360,476
- -----------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 665,461,180
=================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
29 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
YEAR ENDED SEPTEMBER 30, 2006 2005
- -----------------------------------------------------------------------------------------------------
OPERATIONS
- -----------------------------------------------------------------------------------------------------
Net investment income $ 14,237,529 $ 263,794
- -----------------------------------------------------------------------------------------------------
Net realized gain 631,863,175 479,370,294
- -----------------------------------------------------------------------------------------------------
Net change in unrealized appreciation 19,360,476 410,411,249
------------------------------------
Net increase in net assets resulting from operations 665,461,180 890,045,337
- -----------------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
- -----------------------------------------------------------------------------------------------------
Dividends from net investment income:
Class A (42,470,310) --
Class B (8,500,967) --
Class C (6,531,058) --
Class N (1,343,976) --
Class Y (1,185,283) --
- -----------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (79,241,734) --
Class B (28,212,263) --
Class C (18,797,318) --
Class N (2,902,677) --
Class Y (1,884,027) --
- -----------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
- -----------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from beneficial
interest transactions:
Class A 624,329,364 (38,322,000)
Class B (230,411,711) (145,999,322)
Class C 97,409,471 (26,752,036)
Class N 23,293,980 16,887,093
Class Y 85,322,878 17,793,178
- -----------------------------------------------------------------------------------------------------
NET ASSETS
- -----------------------------------------------------------------------------------------------------
Total increase 1,074,335,549 713,652,250
- -----------------------------------------------------------------------------------------------------
Beginning of period 3,431,654,787 2,718,002,537
------------------------------------
End of period (including accumulated net investment income
of $3,497,211 and $12,428,879, respectively) $ 4,505,990,336 $ 3,431,654,787
====================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
30 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
CLASS A YEAR ENDED SEPTEMBER 30, 2006 2005 2004 2003 2002
- ---------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 34.99 $ 26.13 $ 22.05 $ 15.06 $ 17.96
- ---------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .24 1,2 .10 1 (.06) (.07) (.03)
Net realized and unrealized gain (loss) 6.62 8.76 4.14 7.29 (2.83)
-------------------------------------------------------------------------------
Total from investment operations 6.86 8.86 4.08 7.22 (2.86)
- ---------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.70) -- -- (.21) (.02)
Tax return of capital -- -- -- (.02) --
Distributions from net realized gain (1.31) -- -- -- (.02)
-------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (2.01) -- -- (.23) (.04)
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 39.84 $ 34.99 $ 26.13 $ 22.05 $ 15.06
===============================================================================
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 20.36% 33.91% 18.50% 48.34% (16.01)%
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ---------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 2,975,115 $2,062,174 $ 1,572,487 $1,185,092 $ 865,444
- ---------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 2,634,453 $1,895,296 $ 1,533,808 $ 963,783 $ 1,209,791
- ---------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income (loss) 0.62% 2 0.32% (0.20)% (0.48)% (0.17)%
Total expenses 1.13% 1.17% 1.19% 1.36% 1.40%
Expenses after payments and waivers
and reduction to custodian expenses 1.13% 1.16% 1.19% 1.36% 1.40%
- ---------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 96% 107% 52% 61% 39%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Net investment income per share and the net investment income ratio include
$.19 and 0.48%, respectively, resulting from a special dividend from Saks, Inc.
in May 2006.
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.
31 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
CLASS B YEAR ENDED SEPTEMBER 30, 2006 2005 2004 2003 2002
- ---------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 33.53 $ 25.25 $ 21.48 $ 14.66 $ 17.60
- ---------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.11) 1,2 (.15) 1 (.33) (.26) (.20)
Net realized and unrealized gain (loss) 6.41 8.43 4.10 7.15 (2.72)
-------------------------------------------------------------------------------
Total from investment operations 6.30 8.28 3.77 6.89 (2.92)
- ---------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.40) -- -- (.05) --
Tax return of capital -- -- -- (.02) --
Distributions from net realized gain (1.31) -- -- -- (.02)
-------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (1.71) -- -- (.07) (.02)
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 38.12 $ 33.53 $ 25.25 $ 21.48 $ 14.66
===============================================================================
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 19.40% 32.79% 17.55% 47.15% (16.63)%
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ---------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 643,743 $ 771,194 $ 701,803 $ 659,224 $ 522,255
- ---------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 742,195 $ 777,123 $ 753,094 $ 564,030 $ 747,894
- ---------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment loss (0.30)% 2 (0.51)% (1.06)% (1.28)% (0.92)%
Total expenses 1.94% 1.99% 2.03% 2.23% 2.16%
Expenses after payments and waivers
and reduction to custodian expenses 1.94% 1.99% 2.03% 2.14% 2.16%
- ---------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 96% 107% 52% 61% 39%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Net investment loss per share and the net investment loss ratio include $.18
and 0.48%, respectively, resulting from a special dividend from Saks, Inc. in
May 2006.
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.
32 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
CLASS C YEAR ENDED SEPTEMBER 30, 2006 2005 2004 2003 2002
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 33.58 $ 25.28 $ 21.49 $ 14.67 $ 17.61
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.06) 1,2 (.14) 1 (.26) (.24) (.19)
Net realized and unrealized gain (loss) 6.38 8.44 4.05 7.14 (2.73)
----------------------------------------------------------------------------------
Total from investment operations 6.32 8.30 3.79 6.90 (2.92)
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.46) -- -- (.06) --
Tax return of capital -- -- -- (.02) --
Distributions from net realized gain (1.31) -- -- -- (.02)
----------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (1.77) -- -- (.08) (.02)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 38.13 $ 33.58 $ 25.28 $ 21.49 $ 14.67
==================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 19.45% 32.83% 17.64% 47.20% (16.62)%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 645,096 $ 482,907 $ 385,820 $ 332,257 $ 253,560
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 585,044 $ 451,817 $ 393,202 $ 276,023 $ 356,480
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment loss (0.16)% 2 (0.45)% (0.99)% (1.26)% (0.90)%
Total expenses 1.89% 5 1.93% 5 1.96% 5,6 2.15% 5 2.13% 5,6
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 96% 107% 52% 61% 39%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Net investment loss per share and the net investment loss ratio include $.18
and 0.48%, respectively, resulting from a special dividend from Saks, Inc. in
May 2006.
3. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on fund distributions or the redemption of fund shares.
4. Annualized for periods of less than one full year.
5. Reduction to custodian expenses less than 0.01%.
6. Voluntary waiver of transfer agent fees less than 0.01%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
33 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
CLASS N YEAR ENDED SEPTEMBER 30, 2006 2005 2004 2003 2002
- ---------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 34.40 $ 25.78 $ 21.83 $ 14.96 $ 17.94
- ---------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .10 1,2 .01 1 (.05) (.04) (.06)
Net realized and unrealized gain (loss) 6.52 8.61 4.00 7.15 (2.81)
-------------------------------------------------------------------------------
Total from investment operations 6.62 8.62 3.95 7.11 (2.87)
- ---------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.61) -- -- (.22) (.09)
Tax return of capital -- -- -- (.02) --
Distributions from net realized gain (1.31) -- -- -- (.02)
-------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (1.92) -- -- (.24) (.11)
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 39.10 $ 34.40 $ 25.78 $ 21.83 $ 14.96
===============================================================================
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 19.94% 33.44% 18.10% 47.94% (16.19)%
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ---------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 107,367 $ 73,690 $ 40,989 $ 22,900 $ 10,490
- ---------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 95,756 $ 59,502 $ 33,972 $ 15,577 $ 8,179
- ---------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income (loss) 0.27% 2 0.02% (0.54)% (0.68)% (1.33)%
Total expenses 1.48% 1.51% 1.54% 1.70% 1.61%
Expenses after payments and waivers
and reduction to custodian expenses 1.48% 1.51% 1.54% 1.64% 1.61%
- ---------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 96% 107% 52% 61% 39%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Net investment income per share and the net investment income ratio include
$.18 and 0.48%, respectively, resulting from a special dividend from Saks, Inc.
in May 2006.
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.
34 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
CLASS Y YEAR ENDED SEPTEMBER 30, 2006 2005 2004 2003 2002
- ---------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 35.24 $ 26.23 $ 22.06 $ 15.09 $ 17.99
- ---------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .42 1,2 .21 1 .07 .06 .09
Net realized and unrealized gain (loss) 6.62 8.80 4.10 7.25 (2.85)
-------------------------------------------------------------------------------
Total from investment operations 7.04 9.01 4.17 7.31 (2.76)
- ---------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.83) -- -- (.32) (.12)
Tax return of capital -- -- -- (.02) --
Distributions from net realized gain (1.31) -- -- -- (.02)
-------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (2.14) -- -- (.34) (.14)
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 40.14 $ 35.24 $ 26.23 $ 22.06 $ 15.09
===============================================================================
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 20.77% 34.35% 18.90% 49.07% (15.58)%
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ---------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 134,669 $ 41,690 $ 16,904 $ 8,519 $ 4,144
- ---------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 88,988 $ 26,698 $ 14,612 $ 5,743 $ 5,231
- ---------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income 1.09% 2 0.66% 0.19% 0.04% 0.34%
Total expenses 0.78% 0.83% 0.85% 0.90% 0.88%
Expenses after payments and waivers
and reduction to custodian expenses 0.78% 0.82% 0.85% 0.90% 0.88%
- ---------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 96% 107% 52% 61% 39%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Net investment income per share and the net investment income ratio include
$.19 and 0.48%, respectively, resulting from a special dividend from Saks, Inc.
in May 2006.
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.
35 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Global Opportunities Fund (the Fund) is registered under the
Investment Company Act of 1940, as amended, as an open-end management investment
company. The Fund's investment objective is to seek capital appreciation
consistent with preservation of principal, while providing current income. The
Fund's investment advisor is OppenheimerFunds, Inc. (the Manager).
The Fund offers Class A, Class B, Class C, Class N and Class Y shares.
Class A shares are sold at their offering price, which is normally net asset
value plus a front-end sales charge. Class B, Class C and Class N shares are
sold without a front-end sales charge but may be subject to a contingent
deferred sales charge (CDSC). Class N shares are sold only through retirement
plans. Retirement plans that offer Class N shares may impose charges on those
accounts. Class Y shares are sold to certain institutional investors without
either a front-end sales charge or a CDSC, however, the institutional investor
may impose charges on those accounts. All classes of shares have identical
rights and voting privileges with respect to the Fund in general and exclusive
voting rights on matters that affect that class alone. Earnings, net assets and
net asset value per share may differ due to each class having its own expenses,
such as transfer and shareholder servicing agent fees and shareholder
communications, directly attributable to that class. Class A, B, C and N have
separate distribution and/or service plans. No such plan has been adopted for
Class Y shares. Class B shares will automatically convert to Class A shares six
years after the date of purchase. The Fund assesses a 2% fee on the proceeds of
fund shares that are redeemed (either by selling or exchanging to another
Oppenheimer fund) within 30 days of their purchase. The fee, which is retained
by the Fund, is accounted for as an addition to paid-in capital.
The following is a summary of significant accounting policies consistently
followed by the Fund.
- --------------------------------------------------------------------------------
SECURITIES VALUATION. The Fund calculates the net asset value of its shares as
of the close of the New York Stock Exchange (the "Exchange"), normally 4:00 P.M.
Eastern time, on each day the Exchange is open for business. Securities 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(R) 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
36 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
having a remaining maturity in excess of sixty days and all mortgage-backed
securities will be valued at the mean between the "bid" and "asked" prices.
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.
37 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
ALLOCATION OF INCOME, EXPENSES, GAINS AND LOSSES. Income, expenses (other than
those attributable to a specific class), gains and losses are allocated on a
daily basis to each class of shares based upon the relative proportion of net
assets represented by such class. Operating expenses directly attributable to a
specific class are charged against the operations of that class.
- --------------------------------------------------------------------------------
FEDERAL TAXES. The Fund intends to comply with provisions of the Internal
Revenue Code applicable to regulated investment companies and to distribute
substantially all of its investment company taxable income, including any net
realized gain on investments not offset by capital loss carryforwards, if any,
to shareholders, therefore, no federal income or excise tax provision is
required.
The tax components of capital shown in the table below represent distribution
requirements the Fund must satisfy under the income tax regulations, losses the
Fund may be able to offset against income and gains realized in future years and
unrealized appreciation or depreciation of securities and other investments for
federal income tax purposes.
NET UNREALIZED
APPRECIATION
BASED ON COST OF
SECURITIES AND
UNDISTRIBUTED UNDISTRIBUTED ACCUMULATED OTHER INVESTMENTS
NET INVESTMENT LONG-TERM LOSS FOR FEDERAL INCOME
INCOME GAIN CARRYFORWARD 1,2,3 TAX PURPOSES
------------------------------------------------------------------------
$349,347,381 $162,067,487 $985,478 $535,202,512
1. The Fund had $985,478 of post-October foreign currency losses which were
deferred.
2. During the fiscal year ended September 30, 2006, the Fund did not utilize any
capital loss carryforward.
3. During the fiscal year ended September 30, 2005, the Fund utilized
$227,605,725 of capital loss carryforward to offset capital gains realized in
that fiscal year.
Net investment income (loss) and net realized gain (loss) may differ for
financial statement and tax purposes. The character of dividends and
distributions made during the fiscal year from net investment income or net
realized gains may differ from their ultimate characterization for federal
income tax purposes. Also, due to timing of dividends and distributions, the
fiscal year in which amounts are distributed may differ from the fiscal year in
which the income or net realized gain was recorded by the Fund. Accordingly, the
following amounts have been reclassified for September 30, 2006. Net assets of
the Fund were unaffected by the reclassifications.
REDUCTION TO REDUCTION TO
ACCUMULATED ACCUMULATED NET
INCREASE TO NET INVESTMENT REALIZED GAIN
PAID-IN CAPITAL LOSS ON INVESTMENTS 4
-----------------------------------------------------
$65,131,850 $36,862,397 $101,994,247
4. $65,131,850, including $25,258,095 of long-term capital gain, was distributed
in connection with Fund share redemptions.
38 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
The tax character of distributions paid during the years ended September 30,
2006 and September 30, 2005 was as follows:
YEAR ENDED YEAR ENDED
SEPT. 30, 2006 SEPT. 30, 2005
------------------------------------------------------------------
Distributions paid from:
Ordinary income $ 60,031,594 $ --
Long-term capital gain 131,038,019 --
--------------------------------
Total $ 191,069,613 $ --
================================
The aggregate cost of securities and other investments and the composition of
unrealized appreciation and depreciation of securities and other investments for
federal income tax purposes as of September 30, 2006 are noted below. The
primary difference between book and tax appreciation or depreciation of
securities and other investments, if applicable, is attributable to the tax
deferral of losses or tax realization of financial statement unrealized gain or
loss.
Federal tax cost of securities $ 3,963,812,829
Federal tax cost of other investments 2,685,921
---------------
Total federal tax cost $ 3,966,498,750
===============
Gross unrealized appreciation $ 743,833,881
Gross unrealized depreciation (208,631,369)
---------------
Net unrealized appreciation $ 535,202,512
===============
- --------------------------------------------------------------------------------
TRUSTEES' COMPENSATION. The Fund has adopted an unfunded retirement plan for the
Fund's independent trustees. Benefits are based on years of service and fees
paid to each trustee during the years of service. During the year ended
September 30, 2006, the Fund's projected benefit obligations were increased by
$32,025 and payments of $40,868 were made to retired trustees, resulting in an
accumulated liability of $440,799 as of September 30, 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.
39 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations,
are recorded on the ex-dividend date. Income and capital gain distributions, if
any, are declared and paid annually.
- --------------------------------------------------------------------------------
INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date or upon
ex-dividend notification in the case of certain foreign dividends where the
ex-dividend date may have passed. Non-cash dividends included in dividend
income, if any, are recorded at the fair market value of the securities
received. Interest income, which includes accretion of discount and amortization
of premium, is accrued as earned.
- --------------------------------------------------------------------------------
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. Such interest expense and other custodian fees may be paid
with these earnings.
- --------------------------------------------------------------------------------
SECURITY TRANSACTIONS. Security transactions are recorded on the trade date.
Realized gains and losses on securities sold are determined on the basis of
identified cost.
- --------------------------------------------------------------------------------
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.
40 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
2. SHARES OF BENEFICIAL INTEREST
The Fund has authorized an unlimited number of $0.001 par value shares of
beneficial interest of each class. Transactions in shares of beneficial interest
were as follows:
YEAR ENDED SEPTEMBER 30, 2006 YEAR ENDED SEPTEMBER 30, 2005
SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------------------------------------------
CLASS A
Sold 29,179,760 $ 1,151,367,267 14,537,229 $ 456,667,803
Dividends and/or
distributions reinvested 3,127,768 110,566,604 -- --
Redeemed (16,560,412) (637,604,507) 1 (15,772,470) (494,989,803) 2
---------------------------------------------------------------------
Net increase (decrease) 15,747,116 $ 624,329,364 (1,235,241) $ (38,322,000)
=====================================================================
- ------------------------------------------------------------------------------------------------
CLASS B
Sold 3,438,672 $ 130,155,828 2,228,833 $ 67,303,963
Dividends and/or
distributions reinvested 983,040 33,462,697 -- --
Redeemed (10,533,656) (394,030,236) 1 (7,022,888) (213,303,285) 2
---------------------------------------------------------------------
Net decrease (6,111,944) $ (230,411,711) (4,794,055) $ (145,999,322)
=====================================================================
- ------------------------------------------------------------------------------------------------
CLASS C
Sold 5,027,963 $ 191,508,896 2,361,766 $ 71,576,874
Dividends and/or
distributions reinvested 643,821 21,915,663 -- --
Redeemed (3,132,442) (116,015,088) 1 (3,246,643) (98,328,910) 2
---------------------------------------------------------------------
Net increase (decrease) 2,539,342 $ 97,409,471 (884,877) $ (26,752,036)
=====================================================================
- ------------------------------------------------------------------------------------------------
CLASS N
Sold 1,375,227 $ 53,147,288 1,141,689 $ 35,239,277
Dividends and/or
distributions reinvested 118,786 4,132,554 -- --
Redeemed (890,038) (33,985,862) 1 (589,427) (18,352,184) 2
---------------------------------------------------------------------
Net increase 603,975 $ 23,293,980 552,262 $ 16,887,093
=====================================================================
- ------------------------------------------------------------------------------------------------
CLASS Y
Sold 2,510,463 $ 98,857,921 867,787 $ 28,327,735
Dividends and/or
distributions reinvested 86,433 3,069,235 -- --
Redeemed (424,839) (16,604,278) 1 (329,134) (10,534,557) 2
---------------------------------------------------------------------
Net increase 2,172,057 $ 85,322,878 538,653 $ 17,793,178
=====================================================================
1. Net of redemption fees of $41,689, $ 11,745, $9,258, $1,515 and $1,408 for
Class A, Class B, Class C, Class N and Class Y, respectively.
2. Net of redemption fees of $17,953, $7,362, $4,280, $564 and $253 for Class
A, Class B, Class C, Class N and Class Y, respectively.
41 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
NOTES TO FINANCIAL STATEMENTS 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 year ended September 30, 2006, were as
follows:
PURCHASES SALES
--------------------------------------------------------------
Investment securities $3,326,469,402 $3,352,460,153
U.S. government and
government agency obligations 981,521,682 406,719,532
- --------------------------------------------------------------------------------
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
average annual rate as shown in the following table:
FEE SCHEDULE
----------------------------------------------
Up to $250 million of net assets 0.80%
Next $250 million of net assets 0.77
Next $500 million of net assets 0.75
Next $1 billion of net assets 0.69
Next $1.5 billion of net assets 0.67
Over $3.5 billion of net assets 0.65
- --------------------------------------------------------------------------------
TRANSFER AGENT FEES. OppenheimerFunds Services (OFS), a division of the Manager,
acts as the transfer and shareholder servicing agent for the Fund. The Fund pays
OFS a per account fee. For the year ended September 30, 2006, the Fund paid
$6,865,851 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.
42 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
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. 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 September 30, 2006 for Class B, Class C
and Class N shares were $11,949,528, $9,173,630 and $735,838, 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
RETAINED BY RETAINED BY RETAINED BY RETAINED BY RETAINED BY
YEAR ENDED DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR
- --------------------------------------------------------------------------------------------------
September 30, 2006 $ 1,815,019 $ 20,868 $ 908,685 $ 56,627 $ 72,155
- --------------------------------------------------------------------------------
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
43 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
5. FOREIGN CURRENCY CONTRACTS Continued
depreciation on foreign currency contracts are reported in the Statement of
Assets and Liabilities as a receivable or payable and in the Statement of
Operations with the change in unrealized appreciation or depreciation.
The Fund may realize a gain or loss upon the closing or settlement of the
foreign transaction. Contracts closed or settled with the same broker are
recorded as net realized gains or losses. Such realized gains and losses are
reported with all other foreign currency gains and losses in the Statement of
Operations.
As of September 30, 2006, the Fund had outstanding foreign currency contracts as
follows:
CONTRACT VALUATION AS OF
EXPIRATION AMOUNT SEPTEMBER 30, UNREALIZED
CONTRACT DESCRIPTION DATE (000s) 2006 APPRECIATION
- --------------------------------------------------------------------------------
CONTRACTS TO PURCHASE
Singapore Dollar (SGD) 10/2/06 4,267SGD $ 2,686,344 $ 423
- --------------------------------------------------------------------------------
6. RECENT ACCOUNTING PRONOUNCEMENTS
In June 2006, the Financial Accounting Standards Board ("FASB") issued FASB
Interpretation No. 48 ("FIN 48"), ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES.
FIN 48 clarifies the accounting for uncertainty in income taxes recognized in an
enterprise's financial statements in accordance with FASB Statement No. 109,
ACCOUNTING FOR INCOME TAXES. FIN 48 requires the evaluation of tax positions
taken in the course of preparing the Fund's tax returns to determine whether it
is "more-likely-than-not" that tax positions taken in the Fund's tax return will
be ultimately sustained. A tax liability and expense must be recorded in respect
of any tax position that, in Management's judgment, will not be fully realized.
FIN 48 is effective for fiscal years beginning after December 15, 2006. As of
September 30, 2006, the Manager is evaluating the implications of FIN 48. Its
impact in the Fund's financial statements has not yet been determined.
In September 2006, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards ("SFAS") No. 157, FAIR VALUE
MEASUREMENTS. This standard establishes a single authoritative definition of
fair value, sets out a framework for measuring fair value and expands
disclosures about fair value measurements. SFAS No. 157 applies to fair value
measurements already required or permitted by existing standards. SFAS No. 157
is effective for financial statements issued for fiscal years beginning after
November 15, 2007 and interim periods within those fiscal years. As of September
30, 2006, the Manager does not believe the adoption of SFAS No. 157 will
materially impact the financial statement amounts; however, additional
disclosures may be required about the inputs used to develop the measurements
and the effect of certain of the measurements on changes in net assets for the
period.
44 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
7. LITIGATION
A consolidated amended complaint was filed as a putative class action against
the Manager and the Transfer Agent and other defendants (including 51 of the
Oppenheimer funds including the Fund) 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 the allegations contained in the complaint are
without merit and that there are substantial grounds to sustain the district
court's rulings. The Manager also believes that it is premature to render any
opinion as to the likelihood of an outcome unfavorable to it, 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.
45 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
THE BOARD OF TRUSTEES AND SHAREHOLDERS OF OPPENHEIMER GLOBAL OPPORTUNITIES FUND:
We have audited the accompanying statement of assets and liabilities of
Oppenheimer Global Opportunities Fund, including the statement of investments,
as of September 30, 2006, and the related statement of operations for the year
then ended, the statements of changes in net assets for each of the years in the
two-year period then ended, and the financial highlights for each of the years
in the five-year period then ended. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. Our procedures included
confirmation of securities owned as of September 30, 2006, by correspondence
with the custodian and brokers or by other appropriate auditing procedures where
replies from brokers were not received. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Oppenheimer Global Opportunities Fund as of September 30, 2006, the results of
its operations for the year then ended, the changes in its net assets for each
of the years in the two-year period then ended, and the financial highlights for
each of the years in the five-year period then ended, in conformity with U.S.
generally accepted accounting principles.
KPMG LLP
Denver, Colorado
November 15, 2006
46 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
FEDERAL INCOME TAX INFORMATION Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
In early 2007, if applicable, shareholders of record will receive information
regarding all dividends and distributions paid to them by the Fund during
calendar year 2006. Regulations of the U.S. Treasury Department require the
Fund to report this information to the Internal Revenue Service.
Capital gain distributions of $1.3128 per share were paid to Class A,
Class B, Class C, Class N and Class Y shareholders, respectively, on December 5,
2005. Whether received in stock or in cash, the capital gain distribution should
be treated by shareholders as a gain from the sale of the capital assets held
for more than one year (long-term capital gains).
Dividends, if any, paid by the Fund during the fiscal year ended September
30, 2006 which are not designated as capital gain distributions should be
multiplied by 5.83% to arrive at the amount eligible for the corporate
dividend-received deduction.
A portion, if any, of the dividends paid by the Fund during the fiscal
year ended September 30, 2006 which are not designated as capital gain
distributions are eligible for lower individual income tax rates to the extent
that the Fund has received qualified dividend income as stipulated by recent tax
legislation. $53,145,275 of the Fund's fiscal year taxable income may be
eligible for the lower individual income tax rates. In early 2007, shareholders
of record will receive information regarding the percentage of distributions
that are eligible for lower individual income tax rates.
Recent tax legislation allows a regulated investment company to designate
distributions not designated as capital gain distributions, as either interest
related dividends or short-term capital gain dividends, both of which are exempt
from the U.S. withholding tax applicable to non U.S. taxpayers. For the fiscal
year ended September 30, 2006, $5,100,039 or 8.50% of the ordinary distributions
paid by the Fund qualifies as an interest related dividend.
The foregoing information is presented to assist shareholders in reporting
distributions received from the Fund to the Internal Revenue Service. Because of
the complexity of the federal regulations which may affect your individual tax
return and the many variations in state and local tax regulations, we recommend
that you consult your tax advisor for specific guidance.
47 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES;
UPDATES TO STATEMENTS OF INVESTMENTS Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which
the Fund votes proxies relating to securities ("portfolio proxies") held by the
Fund. A description of the Fund's Portfolio Proxy Voting Policies and Procedures
is available (i) without charge, upon request, by calling the Fund toll-free at
1.800.525.7048, (ii) on the Fund's website at www.oppenheimerfunds.com, and
(iii) on the SEC's website at www.sec.gov. In addition, the Fund is required to
file Form N-PX, with its complete proxy voting record for the 12 months ended
June 30th, no later than August 31st of each year. The Fund's voting record is
available (i) without charge, upon request, by calling the Fund toll-free at
1.800.525.7048, and (ii) in the Form N-PX filing on the SEC's website at
www.sec.gov.
The Fund files its complete schedule of portfolio holdings with the SEC
for the first quarter and the third quarter of each fiscal year on Form N-Q. The
Fund's Form N-Q filings are available on the SEC's website at
http://www.sec.gov. Those forms may be reviewed and copied at the SEC's Public
Reference Room in Washington D.C. Information on the operation of the Public
Reference Room may be obtained by calling 1-800-SEC-0330.
48 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
TRUSTEES AND OFFICERS Unaudited
- --------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
NAME, POSITION(S) HELD PRINCIPAL OCCUPATION(S) DURING THE PAST 5 YEARS; OTHER
WITH THE FUND, LENGTH OF TRUSTEESHIPS/DIRECTORSHIPS HELD; NUMBER OF PORTFOLIOS IN THE FUND COMPLEX
SERVICE, AGE CURRENTLY OVERSEEN
INDEPENDENT TRUSTEES THE ADDRESS OF EACH TRUSTEE IN THE CHART BELOW IS 6803 S. TUCSON WAY,
CENTENNIAL, COLORADO 80112-3924. EACH TRUSTEE SERVES FOR AN INDEFINITE TERM,
OR UNTIL HIS OR HER RESIGNATION, RETIREMENT, DEATH OR REMOVAL.
CLAYTON K. YEUTTER, Director of American Commercial Lines (barge company) (since January 2005);
Chairman of the Board Attorney at Hogan & Hartson (law firm) (since June 1993); Director of Covanta
of Trustees (since 2003), Holding Corp. (waste-to-energy company) (since 2002); Director of Weyerhaeuser
Trustee (since 1993) Corp. (1999-April 2004); Director of Caterpillar, Inc. (1993-December 2002);
Age: 75 Director of ConAgra Foods (1993-2001); Director of Texas Instruments
(1993-2001); Director of FMC Corporation (1993-2001). Oversees 45 portfolios
in the OppenheimerFunds complex.
MATTHEW P. FINK, Trustee of the Committee for Economic Development (policy research foundation)
Trustee (since 2005) (since 2005); Director of ICI Education Foundation (education foundation)
Age: 65 (October 1991-August 2006); President of the Investment Company Institute
(trade association) (October 1991-June 2004); Director of ICI Mutual Insurance
Company (insurance company) (October 1991-June 2004). Oversees 45 portfolios
in the OppenheimerFunds complex.
ROBERT G. GALLI, A director or trustee of other Oppenheimer funds. Oversees 55 portfolios in
Trustee (since 1993) the OppenheimerFunds complex.
Age: 73
PHILLIP A. GRIFFITHS, Distinguished Presidential Fellow for International Affairs (since 2002) and
Trustee (since 1999) Member (since 1979) of the National Academy of Sciences; Council on Foreign
Age: 68 Relations (since 2002); Director of GSI Lumonics Inc. (precision medical
equipment supplier) (since 2001); Senior Advisor of The Andrew W. Mellon
Foundation (since 2001); Chair of Science Initiative Group (since 1999);
Member of the American Philosophical Society (since 1996); Trustee of Woodward
Academy (since 1983); Foreign Associate of Third World Academy of Sciences;
Director of the Institute for Advanced Study (1991-2004); Director of Bankers
Trust New York Corporation (1994-1999); Provost at Duke University (1983-
1991). Oversees 45 portfolios in the OppenheimerFunds complex.
MARY F. MILLER, Trustee of the American Symphony Orchestra (not-for-profit) (since October
Trustee (since 2004) 1998); and Senior Vice President and General Auditor of American Express
Age: 64 Company (financial services company) (July 1998-February 2003). Oversees 45
portfolios in the OppenheimerFunds complex.
JOEL W. MOTLEY, Director of Columbia Equity Financial Corp. (privately-held financial adviser)
Trustee (since 2002) (since 2002); Managing Director of Carmona Motley, Inc. (privately-held financial
Age: 54 adviser) (since January 2002); Managing Director of Carmona Motley Hoffman
Inc. (privately-held financial adviser) (January 1998-December 2001); Member
of the Finance and Budget Committee of the Council on Foreign Relations, the
Investment Committee of the Episcopal Church of America, the Investment
Committee and Board of Human Rights Watch and the Investment Committee of
Historic Hudson Valley. Oversees 45 portfolios in the OppenheimerFunds
complex.
49 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
TRUSTEES AND OFFICERS Unaudited / Continued
- --------------------------------------------------------------------------------
KENNETH A. RANDALL, Director of Dominion Resources, Inc. (electric utility holding company)
Trustee (since 1990) (February 1972-October 2005); Former Director of Prime Retail, Inc. (real
Age: 79 estate investment trust), Dominion Energy Inc. (electric power and oil & gas
producer), Lumberman's Mutual Casualty Company, American Motorists Insurance
Company and American Manufacturers Mutual Insurance Company; Former President
and Chief Executive Officer of The Conference Board, Inc. (international
economic and business research). Oversees 45 portfolios in the
OppenheimerFunds complex.
RUSSELL S. REYNOLDS, JR., Chairman of The Directorship Search Group, Inc. (corporate governance consulting
Trustee (since 1990) and executive recruiting) (since 1993); Life Trustee of International House
Age: 74 (non-profit educational organization); Founder, Chairman and Chief Executive
Officer of Russell Reynolds Associates, Inc. (1969-1993); Banker at J.P.
Morgan & Co. (1958-1966); 1st Lt. Strategic Air Command, U.S. Air Force
(1954-1958). Oversees 45 portfolios in the OppenheimerFunds complex.
JOSEPH M. WIKLER, Director of the following medical device companies: Medintec (since 1992) and
Trustee (since 2005) Cathco (since 1996); Director of Lakes Environmental Association (since 1996);
Age: 65 Member of the Investment Committee of the Associated Jewish Charities of
Baltimore (since 1994); Director of Fortis/Hartford mutual funds (1994-
December 2001). Oversees 45 portfolios in the OppenheimerFunds complex.
PETER I. WOLD, President of Wold Oil Properties, Inc. (oil and gas exploration and production
Trustee (since 2005) company) (since 1994); Vice President, Secretary and Treasurer of Wold Trona
Age: 58 Company, Inc. (soda ash processing and production) (since 1996); Vice
President of Wold Talc Company, Inc. (talc mining) (since 1999); Managing
Member of Hole-in-the-Wall Ranch (cattle ranching) (since 1979); Director and
Chairman of the Denver Branch of the Federal Reserve Bank of Kansas City
(1993-1999); and Director of PacifiCorp. (electric utility) (1995-1999).
Oversees 45 portfolios in the OppenheimerFunds complex.
BRIAN F. WRUBLE, General Partner of Odyssey Partners, L.P. (hedge fund) (since September 1995);
Trustee (since 2005) Director of Special Value Opportunities Fund, LLC (registered investment company)
Age: 63 (since September 2004); Member of Zurich Financial Investment Advisory Board
(insurance) (since October 2004); Board of Governing Trustees of The Jackson
Laboratory (non-profit) (since August 1990); Trustee of the Institute for
Advanced Study (non-profit educational institute) (since May 1992); Special
Limited Partner of Odyssey Investment Partners, LLC (private equity
investment) (January 1999-September 2004); Trustee of Research Foundation of
AIMR (2000-2002) (investment research, non-profit); Governor, Jerome Levy
Economics Institute of Bard College (August 1990-September 2001) (economics
research); Director of Ray & Berendtson, Inc. (May 2000-April 2002) (executive
search firm). Oversees 55 portfolios in the OppenheimerFunds complex.
- ---------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEE THE ADDRESS OF MR. MURPHY IS TWO WORLD FINANCIAL CENTER, 225 LIBERTY STREET,
AND OFFICER 11TH FLOOR, NEW YORK, NEW YORK 10281-1008. MR. MURPHY SERVES AS A TRUSTEE FOR
AN INDEFINITE TERM, OR UNTIL HIS RESIGNATION, RETIREMENT, DEATH OR REMOVAL
AND AS AN OFFICER FOR AN INDEFINITE TERM, OR UNTIL HIS RESIGNATION,
RETIREMENT, DEATH OR REMOVAL. MR. MURPHY IS AN INTERESTED TRUSTEE DUE TO HIS
POSITIONS WITH OPPENHEIMERFUNDS, INC. AND ITS AFFILIATES.
50 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
JOHN V. MURPHY, Chairman, Chief Executive Officer and Director (since June 2001) and President
Trustee, President and (since September 2000) of the Manager; President and a director or trustee of
Principal Executive other Oppenheimer funds; President and Director of Oppenheimer Acquisition
Officer (since 2001) Corp. ("OAC") (the Manager's parent holding company) and of Oppenheimer
Age: 57 Partnership Holdings, Inc. (holding company subsidiary of the Manager) (since
July 2001); Director of OppenheimerFunds Distributor, Inc. (subsidiary of the
Manager) (since November 2001); Chairman and Director of Shareholder Services,
Inc. and of Shareholder Financial Services, Inc. (transfer agent subsidiaries
of the Manager) (since July 2001); President and Director of OppenheimerFunds
Legacy Program (charitable trust program established by the Manager) (since
July 2001); Director of the following investment advisory subsidiaries of the
Manager: OFI Institutional Asset Management, Inc., Centennial Asset Management
Corporation, Trinity Investment Management Corporation and Tremont Capital
Management, Inc. (since November 2001), HarbourView Asset Management
Corporation and OFI Private Investments, Inc. (since July 2001); President
(since November 1, 2001) and Director (since July 2001) of Oppenheimer Real
Asset Management, Inc.; Executive Vice President of Massachusetts Mutual Life
Insurance Company (OAC's parent company) (since February 1997); Director of
DLB Acquisition Corporation (holding company parent of Babson Capital
Management LLC) (since June 1995); Member of the Investment Company
Institute's Board of Governors (since October 3, 2003); Chief Operating
Officer of the Manager (September 2000-June 2001); President and Trustee of
MML Series Investment Fund and MassMutual Select Funds (open-end investment
companies) (November 1999-November 2001); Director of C.M. Life Insurance
Company (September 1999-August 2000); President, Chief Executive Officer and
Director of MML Bay State Life Insurance Company (September 1999-August 2000);
Director of Emerald Isle Bancorp and Hibernia Savings Bank (wholly-owned
subsidiary of Emerald Isle Bancorp) (June 1989-June 1998). Oversees 92
portfolios in the OppenheimerFunds complex.
- ---------------------------------------------------------------------------------------------------------
OTHER OFFICERS THE ADDRESSES OF THE OFFICERS IN THE CHART BELOW ARE AS FOLLOWS: FOR MESSRS.
OF THE FUND JENNINGS, DISHMON, ZACK, GILLESPIE AND MS. BLOOMBERG, TWO WORLD FINANCIAL
CENTER, 225 LIBERTY STREET, NEW YORK, NEW YORK 10281-1008, FOR MESSRS.
VANDEHEY, WIXTED, PETERSEN, SZILAGYI AND MS. IVES, 6803 S. TUCSON WAY,
CENTENNIAL, COLORADO 80112-3924. EACH OFFICER SERVES FOR AN INDEFINITE TERM
OR UNTIL HIS OR HER RESIGNATION, RETIREMENT, DEATH OR REMOVAL.
FRANK V. JENNINGS, PHD Vice President of the Manager (since September 1995). An officer of 1
Vice President and portfolio in the OppenheimerFunds complex.
Portfolio Manager
(since 1995)
Age: 59
RANDALL C. DISHMON, Vice President of the Manager (since January 2005); Assistant Vice President
Assistant Vice President and Senior Research Analyst (June 2001-January 2005) of the Manager;
and Assistant Portfolio management consultant with Booz, Allen & Hamilton (May 1998-June 2001). An
Manager (since 2001) officer of 1 portfolio in the OppenheimerFunds complex.
Age: 40
51 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
TRUSTEES AND OFFICERS Unaudited / Continued
- --------------------------------------------------------------------------------
MARK S. VANDEHEY, Senior Vice President and Chief Compliance Officer of the Manager (since March
Vice President and Chief 2004); Vice President of OppenheimerFunds Distributor, Inc., Centennial Asset
Compliance Officer Management Corporation and Shareholder Services, Inc. (since June 1983).
(since 2004) Former Vice President and Director of Internal Audit of the Manager (1997-
Age: 56 February 2004). An officer of 92 portfolios in the OppenheimerFunds complex.
BRIAN W. WIXTED, Senior Vice President and Treasurer of the Manager (since March 1999);
Treasurer and Principal Treasurer of the following: HarbourView Asset Management Corporation,
Financial and Accounting Shareholder Financial Services, Inc., Shareholder Services, Inc., Oppenheimer
Officer (since 1999) Real Asset Management Corporation, and Oppenheimer Partnership Holdings, Inc.
Age: 47 (since March 1999), OFI Private Investments, Inc. (since March 2000),
OppenheimerFunds International Ltd. (since May 2000), OppenheimerFunds plc
(since May 2000), OFI Institutional Asset Management, Inc. (since November
2000), and OppenheimerFunds Legacy Program (charitable trust program
established by the Manager) (since June 2003); Treasurer and Chief Financial
Officer of OFI Trust Company (trust company subsidiary of the Manager) (since
May 2000); Assistant Treasurer of the following: OAC (since March 1999),
Centennial Asset Management Corporation (March 1999-October 2003) and
OppenheimerFunds Legacy Program (April 2000-June 2003); Principal and Chief
Operating Officer of Bankers Trust Company-Mutual Fund Services Division
(March 1995-March 1999). An officer of 92 portfolios in the OppenheimerFunds
complex.
BRIAN S. PETERSEN, Assistant Vice President of the Manager (since August 2002); Manager/Financial
Assistant Treasurer Product Accounting of the Manager (November 1998-July 2002). An officer of 92
(since 2004) portfolios in the OppenheimerFunds complex.
Age: 36
BRIAN C. SZILAGYI, Assistant Vice President of the Manager (since July 2004); Director of
Assistant Treasurer Financial Reporting and Compliance of First Data Corporation (April 2003-July
(since 2005) 2004); Manager of Compliance of Berger Financial Group LLC (May 2001-March
Age: 36 2003); Director of Mutual Fund Operations at American Data Services, Inc.
(September 2000-May 2001). An officer of 92 portfolios in the OppenheimerFunds
complex.
ROBERT G. ZACK, Executive Vice President (since January 2004) and General Counsel (since March
Secretary (since 2001) 2002) of the Manager; General Counsel and Director of the Distributor (since
Age: 58 December 2001); General Counsel of Centennial Asset Management Corporation
(since December 2001); Senior Vice President and General Counsel of
HarbourView Asset Management Corporation (since December 2001); Secretary and
General Counsel of OAC (since November 2001); Assistant Secretary (since
September 1997) and Director (since November 2001) of OppenheimerFunds
International Ltd. and OppenheimerFunds plc; Vice President and Director of
Oppenheimer Partnership Holdings, Inc. (since December 2002); Director of
Oppenheimer Real Asset Management, Inc. (since November 2001); Senior Vice
President, General Counsel and Director of Shareholder Financial Services,
Inc. and Shareholder Services, Inc. (since December 2001); Senior Vice
President, General Counsel and Director of OFI Private Investments, Inc. and
OFI Trust Company (since November 2001); Vice President of OppenheimerFunds
Legacy Program (since June 2003); Senior Vice President and General Counsel of
OFI Institutional Asset Management, Inc. (since November 2001); Director of
OppenheimerFunds (Asia) Limited (since December 2003); Senior Vice President
(May 1985-December 2003), Acting General Counsel (November 2001-February 2002)
and Associate General Counsel (May 1981-October 2001) of the Manager;
Assistant Secretary of the following: Shareholder Services, Inc. (May
1985-November 2001), Shareholder Financial Services, Inc. (November
1989-November 2001), and
52 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
ROBERT G. ZACK, Continued OppenheimerFunds International Ltd. (September 1997-November 2001). An officer
of 92 portfolios in the OppenheimerFunds complex.
LISA I. BLOOMBERG, Vice President and Associate Counsel of the Manager (since May 2004); First
Assistant Secretary Vice President (April 2001-April 2004), Associate General Counsel (December
(since 2004) 2000-April 2004), Corporate Vice President (May 1999-April 2001) and Assistant
Age: 38 General Counsel (May 1999-December 2000) of UBS Financial Services Inc.
(formerly, PaineWebber Incorporated). An officer of 92 portfolios in the
OppenheimerFunds complex.
KATHLEEN T. IVES, Vice President (since June 1998) and Senior Counsel and Assistant Secretary
Assistant Secretary (since October 2003) of the Manager; Vice President (since 1999) and Assistant
(since 2001) Secretary (since October 2003) of the Distributor; Assistant Secretary of
Age: 41 Centennial Asset Management Corporation (since October 2003); Vice President
and Assistant Secretary of Shareholder Services, Inc. (since 1999); Assistant
Secretary of OppenheimerFunds Legacy Program and Shareholder Financial
Services, Inc. (since December 2001); Assistant Counsel of the Manager (August
1994-October 2003). An officer of 92 portfolios in the OppenheimerFunds
complex.
PHILLIP S. GILLESPIE, Senior Vice President and Deputy General Counsel of the Manager (since
Assistant Secretary September 2004); First Vice President (2000-September 2004), Director (2000-
(since 2004) September 2004) and Vice President (1998-2000) of Merrill Lynch Investment
Age: 42 Management. An officer of 92 portfolios in the OppenheimerFunds complex.
THE FUND'S STATEMENT OF ADDITIONAL INFORMATION CONTAINS ADDITIONAL INFORMATION
ABOUT THE FUND'S TRUSTEES AND OFFICERS AND IS AVAILABLE WITHOUT CHARGE UPON
REQUEST, BY CALLING 1.800.525.7048.
53 | OPPENHEIMER GLOBAL OPPORTUNITIES FUND
ITEM 2. CODE OF ETHICS.
The registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller or persons performing similar functions.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The Board of Trustees of the registrant has determined that the registrant does
not have an audit committee financial expert serving on its Audit Committee. In
this regard, no member of the Audit Committee was identified as having all of
the technical attributes identified in Instruction 2(b) to Item 3 of Form N-CSR
to qualify as an "audit committee financial expert," whether
through the type of specialized education or experience described in that
Instruction. The Board has concluded that while the members of the Audit
Committee collectively have the necessary attributes and experience required to
serve effectively as an Audit Committee, no single member possesses all of the
required technical attributes through the particular methods of education or
experience set forth in the Instructions to be designated as an audit committee
financial expert.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Audit Fees
The principal accountant for the audit of the registrant's annual financial
statements billed $33,000 in fiscal 2006 and $33,000 in fiscal 2005.
(b) Audit-Related Fees
The principal accountant for the audit of the registrant's annual financial
statements billed no such fees during the last two fiscal years.
The principal accountant for the audit of the registrant's annual financial
statements billed $169,654 in fiscal 2006 and $156,805 in fiscal 2005 to the
registrant's investment adviser or any entity controlling, controlled by, or
under common control with the adviser that provides ongoing services to the
registrant.
Such services include: Internal control reviews
(c) Tax Fees
The principal accountant for the audit of the registrant's annual financial
statements billed no such fees to the registrant for the last two fiscal years.
The principal accountant for the audit of the registrant's annual financial
statements billed $1,536 in fiscal 2006 and $5,000 in fiscal 2005 to the
registrant's investment adviser or any entity controlling, controlled by, or
under common control with the adviser that provides ongoing services to the
registrant.
Such services include: preparation of form 5500.
(d) All Other Fees
The principal accountant for the audit of the registrant's annual financial
statements billed no such fees in during to the registrant during the last two
fiscal years.
The principal accountant for the audit of the registrant's annual financial
statements billed no such fees during the last two fiscal years to the
registrant's investment adviser or any entity
controlling, controlled by, or under common control with the adviser that
provides ongoing services to the registrant.
(e) (1) During its regularly scheduled periodic meetings, the registrant's
audit committee will pre-approve all audit, audit-related, tax and other
services to be provided by the principal accountants of the registrant.
The audit committee has delegated pre-approval authority to its Chairman
for any subsequent new engagements that arise between regularly scheduled
meeting dates provided that any fees such pre-approved are presented to
the audit committee at its next regularly scheduled meeting.
Under applicable laws, pre-approval of non-audit services maybe waived
provided that: 1) the aggregate amount of all such services provided
constitutes no more than five percent of the total amount of fees paid by
the registrant to it principal accountant during the fiscal year in which
services are provided 2) such services were not recognized by the
registrant at the time of engagement as non-audit services and 3) such
services are promptly brought to the attention of the audit committee of
the registrant and approved prior to the completion of the audit.
(2) 100%
(f) Not applicable as less than 50%.
(g) The principal accountant for the audit of the registrant's annual
financial statements billed $155,336 in fiscal 2006 and $161,805 in fiscal
2005 to the registrant and the registrant's investment adviser or any
entity controlling, controlled by, or under common control with the
adviser that provides ongoing services to the registrant related to
non-audit fees. Those billings did not include any prohibited non-audit
services as defined by the Securities Exchange Act of 1934.
(h) No such services were rendered.
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 08/31/2006, 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) Exhibit attached hereto.
(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 Opportunities Fund
By: /S/ JOHN V. MURPHY
----------------------------
John V. Murphy
Principal Executive Officer
Date: 11/15/2006
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: 11/15/2006
By: /S/ BRIAN W. WIXTED
----------------------------
Brian W. Wixted
Principal Financial Officer
Date: 11/15/2006