UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
INVESTMENT COMPANIES
Investment Company Act file number 811-21917
Oppenheimer SMA International Bond Fund
(Exact name of registrant as specified in charter)
6803 South Tucson Way, Centennial, Colorado 80112-3924
(Address of principal executive offices) (Zip code)
(Address of principal executive offices) (Zip code)
Robert G. Zack, Esq.
OppenheimerFunds, Inc.
OppenheimerFunds, Inc.
Two World Financial Center, New York, New York 10281-1008
(Name and address of agent for service)
(Name and address of agent for service)
Registrant’s telephone number, including area code: (303) 768-3200
Date of fiscal year end: September 30
Date of reporting period: 03/31/2008
Item 1. Reports to Stockholders.
TOP HOLDINGS AND ALLOCATIONS
| Top Ten Geographical Holdings | ||||
| United States | 20.6 | % | ||
| France | 10.8 | |||
| Germany | 10.4 | |||
| Japan | 9.0 | |||
| United Kingdom | 8.2 | |||
| Peru | 3.8 | |||
| Canada | 3.4 | |||
| Australia | 3.3 | |||
| Turkey | 3.2 | |||
| European Union | 2.9 |
Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2008, and are based on the total market value of investments.
8 | OPPENHEIMER SMA INTERNATIONAL BOND FUND
NOTES
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 contacting your adviser or the “wrap-free” program sponsor. 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.
Shares of the Fund commenced operations on 7/23/07.
An explanation of the calculation of performance is in the Fund’s Statement of Additional Information.
An explanation of the calculation of performance is in the Fund’s Statement of Additional Information.
9 | OPPENHEIMER SMA INTERNATIONAL BOND 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 applicable); and (2) ongoing costs, including management fees; distribution and service fees; and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The examples are based on an investment of $1,000.00 invested at the beginning of the period and held for the entire 6-month period ended March 31, 2008.
Actual Expenses. The first section of the table provides information about actual account values and actual expenses. You may use the information in this section, 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 first section 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 second section of the table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio, and an assumed rate of return of 5% per year before expenses, which is not the 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 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), or a $12.00 fee imposed annually on accounts valued at less than $500.00 (subject to exceptions described in the Statement of Additional Information). Therefore, the
10 | OPPENHEIMER SMA INTERNATIONAL BOND FUND
“hypothetical” section of the table is 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 | ||||||||||
| Actual | October 1, 2007 | March 31, 2008 | March 31, 2008 | |||||||||
| $ | 1,000.00 | $ | 1,122.60 | $ | 0.00 | |||||||
Hypothetical | ||||||||||||
| (5% return before expenses) | ||||||||||||
| 1,000.00 | 1,025.00 | 0.00 | ||||||||||
Expenses are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period). The annualized expense ratio, excluding indirect expenses from affiliated fund, based on the 6-month period ended March 31, 2008 is as follows:
Expense Ratio
0.00%
0.00%
The expense ratio reflects reduction to custodian expenses and voluntary waivers or reimbursements of expenses by the Fund’s Manager that can be terminated at any time, without advance notice. The “Financial Highlights” table in the Fund’s financial statements, included in this report, also show the gross expense ratio, without such waivers or reimbursements and reduction to custodian expenses, if applicable.
11 | OPPENHEIMER SMA INTERNATIONAL BOND FUND
STATEMENT OF INVESTMENTS March 31, 2008 / Unaudited
| Principal | |||||||||
| Amount | Value | ||||||||
U.S. Government Obligations—9.9% | |||||||||
U.S. Treasury Nts., 4.25%, 11/15/171 (Cost $5,197,075) | $ | 5,190,000 | $ | 5,540,330 | |||||
Foreign Government Obligations—66.4% | �� | ||||||||
Argentina—0.4% | |||||||||
| Argentina (Republic of) Bonds: | |||||||||
3.092%, 8/3/122 | 25,000 | 21,252 | |||||||
Series GDP, 0.971%, 12/15/352 | 100,000 | 12,050 | |||||||
| Series V, 7%, 3/28/11 | 130,000 | 117,686 | |||||||
| Series VII, 7%, 9/12/13 | 55,000 | 45,056 | |||||||
Neuquen (Province Del) Sr. Sec. Nts., 8.656%, 10/18/143 | 25,000 | 24,438 | |||||||
| 220,482 | |||||||||
Australia—3.2% | |||||||||
| New South Wales Treasury Corp. Sr. Unsec. Nts., 6%, 10/1/09 | 1,910,000 | AUD | 1,722,908 | ||||||
| Queensland Treasury Corp. Unsec. Nts., Series 09G, 6%, 7/14/09 | 90,000 | AUD | 81,346 | ||||||
| 1,804,254 | |||||||||
Austria—0.8% | |||||||||
| Austria (Republic of) Unsec. Unsub. Nts., Series E, 4%, 9/15/16 | 274,000 | EUR | 431,645 | ||||||
Belgium—0.7% | |||||||||
| Belgium (Kingdom of) Bonds, Series 44, 5%, 3/28/35 | 255,000 | EUR | 415,216 | ||||||
Brazil—1.9% | |||||||||
| Brazil (Federal Republic of) Bonds: | |||||||||
| 6%, 1/17/17 | 175,000 | 178,850 | |||||||
| 8%, 1/15/18 | 230,000 | 258,175 | |||||||
| 8.875%, 10/14/19 | 155,000 | 191,813 | |||||||
| Brazil (Federal Republic of) Nts.: | |||||||||
| 10%, 1/1/12 | 190,000 | BRR | 100,822 | ||||||
| 10%, 1/1/17 | 180,000 | BRR | 88,288 | ||||||
Brazil (Federal Republic of) Treasury Bills, 10.697%, 7/1/084 | 420,000 | BRR | 232,972 | ||||||
| 1,050,920 | |||||||||
Canada—3.3% | |||||||||
| Canada (Government of) Nts.: | |||||||||
| 3.75%, 6/1/12 | 930,000 | CAD | 935,935 | ||||||
| 4.25%, 12/1/09 | 910,000 | CAD | 910,399 | ||||||
| 1,846,334 | |||||||||
Colombia—2.6% | |||||||||
| Colombia (Republic of) Bonds: | |||||||||
| 10.75%, 1/15/13 | 125,000 | 155,125 | |||||||
| 12%, 10/22/15 | 1,980,000,000 | COP | 1,133,907 | ||||||
12 | OPPENHEIMER SMA INTERNATIONAL BOND FUND
| Principal | |||||||||
| Amount | Value | ||||||||
Colombia Continued | |||||||||
| Colombia (Republic of) Nts., 8.25%, 12/22/14 | $ | 95,000 | $ | 110,675 | |||||
EEB International Ltd. Sr. Unsec. Bonds, 8.75%, 10/31/143 | 40,000 | 41,400 | |||||||
| 1,441,107 | |||||||||
Costa Rica—0.1% | |||||||||
| Costa Rica (Republic of) Unsec. Bonds, 9.995%, 8/1/20 | 25,000 | 32,531 | |||||||
Denmark—0.6% | |||||||||
| Denmark (Kingdom of) Bonds: | |||||||||
| 4%, 11/15/10 | 500,000 | DKK | 106,268 | ||||||
4%, 11/15/155 | 365,000 | DKK | 77,012 | ||||||
| 7%, 11/10/24 | 135,000 | DKK | 36,848 | ||||||
| Denmark (Kingdom of) Nts., 4%, 8/15/08 | 530,000 | DKK | 112,085 | ||||||
| 332,213 | |||||||||
El Salvador—0.1% | |||||||||
El Salvador (Republic of) Bonds, 7.65%, 6/15/353 | 40,000 | 42,600 | |||||||
France—10.4% | |||||||||
| France (Government of) Obligations Assimilables du Tresor Bonds: | |||||||||
| 3.25%, 4/25/16 | 1,115,000 | EUR | 1,670,722 | ||||||
| 4%, 10/25/38 | 835,000 | EUR | 1,180,556 | ||||||
| France (Government of) Treasury Nts.: | |||||||||
| 3.75%, 1/12/13 | 1,330,000 | EUR | 2,095,882 | ||||||
| 4.50%, 7/12/12 | 530,000 | EUR | 860,341 | ||||||
| 5,807,501 | |||||||||
Germany—10.0% | |||||||||
| Germany (Federal Republic of) Bonds: | |||||||||
| Series 03, 3.75%, 7/4/13 | 1,295,000 | EUR | 2,057,370 | ||||||
| Series 05, 4%, 1/4/37 | 2,150,000 | EUR | 3,096,389 | ||||||
| Series 07, 4.25%, 7/4/17 | 275,000 | EUR | 446,078 | ||||||
| 5,599,837 | |||||||||
Ghana—0.1% | |||||||||
Ghana (Republic of) Bonds, 8.50%, 10/4/173 | 40,000 | 42,000 | |||||||
Greece—1.7% | |||||||||
| Greece (Republic of) Bonds, 4.60%, 5/20/13 | 590,000 | EUR | 950,305 | ||||||
Guatemala—0.1% | |||||||||
| Guatemala (Republic of) Nts., 10.25%, 11/8/11 | 30,000 | 34,890 | |||||||
Indonesia—0.4% | |||||||||
| Indonesia (Republic of) Nts.: | |||||||||
6.75%, 3/10/143 | 35,000 | 36,838 | |||||||
6.90%, 1/17/183 | 40,000 | 42,164 | |||||||
7.25%, 4/20/153 | 80,000 | 85,600 | |||||||
Indonesia (Republic of) Unsec. Nts., 8.50%, 10/12/353 | 45,000 | 50,738 | |||||||
| 215,340 | |||||||||
13 | OPPENHEIMER SMA INTERNATIONAL BOND FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
| Principal | |||||||||
| Amount | Value | ||||||||
Israel—0.4% | |||||||||
| Israel (State of) Bonds, 5.50%, 2/28/17 | 880,000 | ILS | $ | 245,840 | |||||
Italy—2.4% | |||||||||
Italy (Republic of) Nts., Certificati di Credito del Tesoro, 4.20%, 7/1/092 | 860,000 | EUR | 1,359,889 | ||||||
Japan—8.7% | |||||||||
| Japan (Government of) Bonds: | |||||||||
| 2 yr., Series 252, 0.80%, 1/15/09 | 190,000,000 | JPY | 1,909,845 | ||||||
| 10 yr., Series 245, 0.90%, 12/20/12 | 88,000,000 | JPY | 889,252 | ||||||
| 10 yr., Series 288, 1.70%, 9/20/17 | 78,000,000 | JPY | 816,441 | ||||||
| 30 yr., Series 25, 2.30%, 12/20/36 | 127,000,000 | JPY | 1,252,418 | ||||||
| 4,867,956 | |||||||||
Mexico—2.1% | |||||||||
| United Mexican States Bonds: | |||||||||
| Series A, 6.375%, 1/16/13 | 300,000 | 330,300 | |||||||
Series M7, 8%, 12/24/082 | 6,190,000 | MXN | 583,885 | ||||||
| Series MI10, 8%, 12/19/13 | 2,670,000 | MXN | 258,028 | ||||||
| 1,172,213 | |||||||||
Nigeria—1.1% | |||||||||
Nigeria (Federal Republic of) Treasury Bills, Series 364, 9.130%, 2/5/094 | 7,000,000 | NGN | 55,221 | ||||||
| Nigeria (Federal Republic of) Treasury Bonds: | |||||||||
| Series 3Y, 9.23%, 5/25/12 | 14,900,000 | NGN | 125,052 | ||||||
| Series 3Y, 12.50%, 7/31/09 | 3,100,000 | NGN | 27,540 | ||||||
| Series 3Y1S, 15%, 1/27/09 | 2,400,000 | NGN | 21,321 | ||||||
| Series 5 yr., 9.50%, 2/23/12 | 5,900,000 | NGN | 50,122 | ||||||
| Series 5Y, 9.50%, 8/31/12 | 16,000,000 | NGN | 135,583 | ||||||
| Series 10 yr., 9.35%, 8/31/17 | 12,600,000 | NGN | 99,399 | ||||||
Series 364, 9.163%, 1/8/094 | 10,000,000 | NGN | 79,426 | ||||||
| 593,664 | |||||||||
Panama—0.5% | |||||||||
| Panama (Republic of) Bonds: | |||||||||
| 6.70%, 1/26/36 | 70,000 | 71,575 | |||||||
7.25%, 3/15/156 | 170,000 | 187,000 | |||||||
| Panama (Republic of) Unsec. Bonds, 7.125%, 1/29/26 | 30,000 | 32,550 | |||||||
| 291,125 | |||||||||
Peru—3.6% | |||||||||
| Peru (Republic of) Bonds: | |||||||||
| Series 7, 8.60%, 8/12/17 | 680,000 | PEN | 285,479 | ||||||
| Series 8-1, 12.25%, 8/10/11 | 1,610,000 | PEN | 708,719 | ||||||
14 | OPPENHEIMER SMA INTERNATIONAL BOND FUND
| Principal | ||||||||
| Amount | Value | |||||||
Peru Continued | ||||||||
| Peru (Republic of) Certificate of Deposit: | ||||||||
5.365%, 4/11/084 | 663,000 | PEN | $ | 241,083 | ||||
5.500%, 5/2/084,7 | 863,000 | PEN | 307,356 | |||||
5.502%, 4/3/084 | 160,000 | PEN | 58,100 | |||||
5.516%, 5/16/084 | 310,000 | PEN | 112,128 | |||||
5.719%, 11/6/084 | 240,000 | PEN | 84,424 | |||||
5.818%, 1/5/094 | 570,000 | PEN | 198,546 | |||||
| 1,995,835 | ||||||||
Philippines—0.8% | ||||||||
| Philippines (Republic of the) Unsec. Bonds, 9%, 2/15/13 | 405,000 | 475,389 | ||||||
The Netherlands—1.4% | ||||||||
| Netherlands (Kingdom of the) Bonds, 5%, 7/15/11 | 320,000 | EUR | 524,955 | |||||
| Netherlands (Kingdom of the) Nts., 4.50%, 7/15/17 | 150,000 | EUR | 244,571 | |||||
| 769,526 | ||||||||
Turkey—3.1% | ||||||||
| Turkey (Republic of) Bonds, 6.75%, 4/3/18 | 125,000 | 124,688 | ||||||
| Turkey (Republic of) Nts.: | ||||||||
| 7.25%, 3/15/15 | 185,000 | 195,638 | ||||||
14%, 1/19/112 | 320,000 | TRY | 222,619 | |||||
15.861%, 10/7/094 | 390,000 | TRY | 225,667 | |||||
16%, 3/7/122 | 1,370,000 | TRY | 964,448 | |||||
| 1,733,060 | ||||||||
Ukraine—0.3% | ||||||||
| Ukraine (Republic of) Unsec. Unsub. Nts., 6.875%, 3/4/11 | 180,000 | 185,583 | ||||||
United Kingdom—4.8% | ||||||||
| United Kingdom Treasury Bonds: | ||||||||
5.75%, 12/7/098 | 755,000 | GBP | 1,544,598 | |||||
| 6%, 12/7/28 | 475,000 | GBP | 1,119,710 | |||||
| 2,664,308 | ||||||||
Uruguay—0.3% | ||||||||
| Uruguay (Oriental Republic of) Unsec. Bonds, 8%, 11/18/22 | 135,000 | 145,125 | ||||||
Venezuela—0.5% | ||||||||
| Venezuela (Republic of) Bonds, 9.25%, 9/15/27 | 160,000 | 152,400 | ||||||
| Venezuela (Republic of) Nts., 10.75%, 9/19/13 | 55,000 | 56,238 | ||||||
| Venezuela (Republic of) Unsec. Bonds, 7.65%, 4/21/25 | 75,000 | 60,516 | ||||||
| 269,154 | ||||||||
| Total Foreign Government Obligations (Cost $34,863,050) | 37,035,842 | |||||||
15 | OP PENHEIMER SMA INTERNATIONAL BOND FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
| Principal | ||||||||
| Amount | Value | |||||||
Loan Participations—0.7% | ||||||||
Bayerische Hypo- und Vereinsbank AG for the City of Kiev, Ukraine Loan Participation Nts., 8.625%, 7/15/117 | $ | 90,000 | $ | 94,520 | ||||
Gaz Capital SA Sr. Unsec. Loan Participation Nts., 7.288%, 8/16/373 | 130,000 | 120,652 | ||||||
VTB Capital SA Loan Participation Nts., 6.315%, 2/4/152 | 185,000 | 187,002 | ||||||
| Total Loan Participations (Cost $409,271) | 402,174 | |||||||
Corporate Bonds and Notes—13.0% | ||||||||
AES Dominicana Energia Finance SA, 11% Sr. Nts., 12/13/153 | 55,000 | 52,938 | ||||||
Alrosa Finance SA, 8.875% Nts., 11/17/143 | 245,000 | 263,118 | ||||||
Autopistas del Nordeste Cayman Ltd., 9.39% Nts., 1/15/263 | 71,784 | 71,784 | ||||||
| BA Covered Bond Issuer, 4.25% Sec. Nts., 4/5/17 | 205,000 | EUR | 315,502 | |||||
Banco BMG SA, 9.15% Nts., 1/15/163 | 60,000 | 60,000 | ||||||
Banco Hipotecario SA, 9.75% Sr. Unsec. Nts., 4/27/163 | 35,000 | 31,413 | ||||||
| Bank of Scotland plc: | ||||||||
| 4.375% Sr. Sec. Nts., 7/13/16 | 715,000 | EUR | 1,102,543 | |||||
| 4.50% Sr. Sec. Nts., 7/13/21 | 460,000 | EUR | 678,918 | |||||
C10 Capital SPV Ltd., 6.722% Unsec. Perpetual Debs.3,9 | 40,000 | 37,086 | ||||||
| Coriolanus Ltd., 10.62% Sec. Nts., 8/10/10 | 100,000 | 72,050 | ||||||
| Depfa ACS Bank, 3.875% Sec. Nts., 11/14/16 | 25,000 | EUR | 38,094 | |||||
Eirles Two Ltd., 6.482% Sec. Nts., Series 335, 4/30/122,7 | 100,000 | 76,250 | ||||||
Exsportfinans ASA, 3.50% Nts., 2/11/112 | 1,010,000 | EUR | 1,548,164 | |||||
HSBK Europe BV, 7.25% Unsec. Unsub. Nts., 5/3/173 | 15,000 | 13,050 | ||||||
| ICICI Bank Ltd.: | ||||||||
6.375% Bonds, 4/30/222,3 | 70,000 | 60,318 | ||||||
6.625% Nts., 10/3/123 | 70,000 | 69,979 | ||||||
IIRSA Norte Finance Ltd., 8.75% Sr.Nts., 5/30/247 | 73,653 | 82,307 | ||||||
Majapahit Holding BV, 7.75% Nts., 10/17/163 | 30,000 | 29,700 | ||||||
National Gas Co., 6.05% Nts., 1/15/363 | 40,000 | 37,646 | ||||||
| National Power Corp.: | ||||||||
6.875% Nts., 11/2/163 | 20,000 | 20,250 | ||||||
| 9.625% Unsec. Bonds, 5/15/28 | 35,000 | 41,866 | ||||||
Panama Canal Railway Co., 7% Sr. Sec. Nts., 11/1/267 | 40,000 | 36,800 | ||||||
| Petrobras International Finance Co., 5.785% Sr. Unsec. Nts., 3/1/18 | 120,000 | 116,148 | ||||||
Rabobank Nederland, 3% Nts., 3/11/112,7 | 770,000 | 766,150 | ||||||
TGI International Ltd., 9.50% Nts., 10/3/173 | 60,000 | 62,250 | ||||||
| WM Covered Bond Program: | ||||||||
| 3.875% Sec. Nts., Series 1, 9/27/11 | 540,000 | EUR | 819,732 | |||||
| 4% Sec. Mtg. Nts., Series 2, 9/27/16 | 530,000 | EUR | 750,582 | |||||
| Total Corporate Bonds and Notes (Cost $6,916,345) | 7,254,638 | |||||||
16 | OPPENHEIMER SMA INTERNATIONAL BOND FUND
| Principal | ||||||||
| Amount | Value | |||||||
Structured Securities—1.5% | ||||||||
| Citigroup Global Markets Holdings, Inc.: | ||||||||
Dominican Republic Unsec. Credit Linked Nts., 12.047%, 2/23/094 | 1,000,000 | DOP | $ | 26,528 | ||||
Dominican Republic Unsec. Credit Linked Nts., 13.182%, 2/23/094 | 1,800,000 | DOP | 47,158 | |||||
Dominican Republic Unsec. Credit Linked Nts., 9.342%, 8/11/084 | 1,500,000 | DOP | 42,245 | |||||
Egypt (The Arab Republic of) Credit Linked Nts., 5.765%, 2/5/094 | 410,000 | EGP | 70,202 | |||||
Egypt (The Arab Republic of) Credit Linked Nts., 6.089%, 3/5/094 | 270,000 | EGP | 45,951 | |||||
Egypt (The Arab Republic of) Credit Linked Nts., 6.267%, 3/26/094 | 350,000 | EGP | 59,297 | |||||
Egypt (The Arab Republic of) Credit Linked Nts., 6.641%, 2/19/094 | 370,000 | EGP | 63,161 | |||||
Egypt (The Arab Republic of) Credit Linked Nts., 7.024%, 7/10/084 | 280,000 | EGP | 50,341 | |||||
Egypt (The Arab Republic of) Credit Linked Nts., 7.981%, 4/2/094 | 160,000 | EGP | 27,067 | |||||
Egypt (The Arab Republic of) Unsec. Credit Linked Nts., 6.529%, 3/26/094 | 350,000 | EGP | 59,297 | |||||
Zimbabwe (Republic of) Credit Linked Nts., 10.076%, 11/26/084 | 40,000,000 | ZMK | 10,245 | |||||
Zimbabwe (Republic of) Credit Linked Nts., 10.717%, 3/4/094 | 80,000,000 | ZMK | 19,861 | |||||
Zimbabwe (Republic of) Credit Linked Nts., 10.793%, 2/25/094 | 80,000,000 | ZMK | 19,823 | |||||
| Deutsche Bank AG: | ||||||||
Egypt (The Arab Republic of) Total Return Linked Nts., 7.725%, 9/16/084 | 475,000 | EGP | 84,935 | |||||
Opic Reforma Credit Linked Nts., 9.94%, 10/3/152,7,10 | 140,000 | MXN | 13,154 | |||||
Russian Federation Total Return Linked Nts., 7.919%, 3/20/094 | 500,000 | RUR | 19,583 | |||||
Russian Federation Total Return Linked Nts., 7.949%, 1/15/094 | 950,000 | RUR | 37,766 | |||||
Morgan Stanley Capital Services, Inc., Ukraine (Republic of) Credit Linked Nts., 6.653%, 10/15/172,3 | 100,000 | 95,600 | ||||||
UBS AG,Egypt (The Arab Republic of) Credit Linked Nts., 7.449%, 11/26/084,7,11 | 270,000 | EGP | 47,079 | |||||
| Total Structured Securities (Cost $840,148) | 839,293 | |||||||
| Shares | ||||||||
Investment Company—5.3% | ||||||||
Oppenheimer Institutional Money Market Fund, Cl. E, 3.29%12,13 (Cost $2,919,945) | 2,919,945 | 2,919,945 | ||||||
Total Investments, at Value (Cost $51,145,834) | 96.8 | % | 53,992,222 | |||||
Other Assets Net of Liabilities | 3.2 | 1,784,829 | ||||||
Net Assets | 100.0 | % | $ | 55,777,051 | ||||
17 | OPPENHEIMER SMA INTERNATIONAL BOND FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
Footnotes to Statement of Investments
Principal amount is reported in U.S. Dollars, except for those denoted in the following currencies:
| AUD | Australian Dollar | ILS | Israeli Shekel | |||
| BRR | Brazilian Real | JPY | Japanese Yen | |||
| CAD | Canadian Dollar | MXN | Mexican Nuevo Peso | |||
| COP | Colombian Peso | NGN | Nigeria Naira | |||
| DKK | Danish Krone | PEN | Peruvian New Sol | |||
| DOP | Dominican Republic Peso | RUR | Russian Ruble | |||
| EGP | Egyptian Pounds | TRY | New Turkish Lira | |||
| EUR | Euro | ZMK | Zambian Kwacha | |||
| GBP | British Pound Sterling |
1. All or a portion of the security is held in collateralized accounts to cover initial margin requirements on open futures contracts. The aggregate market value of such securities is $435,967. See Note 6 of accompanying Notes.
2. Represents the current interest rate for a variable or increasing rate security.
3. Represents securities sold under Rule 144A, which are exempt from registration under the Securities Act of 1933, as amended. These securities have been determined to be liquid under guidelines established by the Board of Trustees. These securities amount to
$1,391,562 or 2.49% of the Fund’s net assets as of March 31, 2008.
$1,391,562 or 2.49% of the Fund’s net assets as of March 31, 2008.
4. Zero coupon bond reflects effective yield on the date of purchase.
5. A sufficient amount of liquid assets has been designated to cover outstanding written call options.
6. A sufficient amount of liquid assets has been designated to cover outstanding written put options.
7. Illiquid or restricted security. The aggregate value of illiquid or restricted securities as of March 31, 2008 was $1,423,616, which represents 2.55% of the Fund’s net assets, of which $13,154 is considered restricted. See Note 9 of accompanying Notes. Information concerning restricted securities is as follows:
| Acquisition | Unrealized | |||||||||||||||
| Security | Date | Cost | Value | Appreciation | ||||||||||||
| Deutsche Bank AG, Opic Reforma | ||||||||||||||||
| Credit Linked Nts., 9.94%, 10/3/15 | 12/27/07 | $ | 12,866 | $ | 13,154 | $ | 288 | |||||||||
8. A sufficient amount of securities has been designated to cover outstanding foreign currency contracts. See Note 5 of accompanying Notes.
9. This bond has no contractual maturity date, is not redeemable and contractually pays an indefinite stream of interest. Rate reported represents the current interest rate for this variable rate security.
10. Represents the current interest rate on a security whose interest rate is linked to the performance of underlying foreign currencies, interest rate spreads, stock market indices, prices of individual securities, commodities or other financial instruments or the occurrence of other specific events. See Note 1 of accompanying Notes.
11. When-issued security or delayed delivery to be delivered and settled after March 31, 2008. See Note 1 of accompanying Notes.
12. Rate shown is the 7-day yield as of March 31, 2008.
13. Is or was an affiliate, as defined in the Investment Company Act of 1940, at or during the period ended March 31, 2008, by virtue of the Fund owning at least 5% of the voting securities of the issuer or as a result of the Fund and the issuer having the same investment adviser. Transactions during the period in which the issuer was an affiliate are as follows:
| Shares | Gross | Gross | Shares | |||||||||||||
| September 30, 2007 | Additions | Reductions | March 31, 2008 | |||||||||||||
| Oppenheimer Institutional | ||||||||||||||||
| Money Market Fund, Cl. E | 21,228,294 | 49,054,202 | 67,362,551 | 2,919,945 | ||||||||||||
| Dividend | ||||||||
| Value | Income | |||||||
| Oppenheimer Institutional Money Market Fund, Cl. E | $ | 2,919,945 | $ | 146,803 | ||||
18 | OPPENHEIMER SMA INTERNATIONAL BOND FUND
Foreign Currency Exchange Contracts as of March 31, 2008 are as follows:
| Contract | ||||||||||||||||||||||||
| Amount | Expiration | Unrealized | Unrealized | |||||||||||||||||||||
| Contract Description | Buy/Sell | (000s) | Date | Value | Appreciation | Depreciation | ||||||||||||||||||
| Argentine Peso (ARP) | Sell | 1,750 | ARP | 4/21/08 | $ | 550,912 | $ | 2,397 | $ | — | ||||||||||||||
| Australian Dollar (AUD) | Sell | 730 | AUD | 4/8/08-4/28/08 | 665,149 | 3,311 | 7,838 | |||||||||||||||||
| Australian Dollar (AUD) | Buy | 755 | AUD | 4/28/08-5/9/08 | 687,605 | 5,538 | 145 | |||||||||||||||||
| Brazilian Real (BRR) | Buy | 5,415 | BRR | 5/5/08 | 3,065,237 | — | 36,545 | |||||||||||||||||
| British Pound Sterling (GBP) | Sell | 608 | GBP | 4/2/08-5/14/08 | 1,204,404 | 11,660 | 7,156 | |||||||||||||||||
| British Pound Sterling (GBP) | Buy | 665 | GBP | 4/10/08-5/9/08 | 1,318,271 | 11,146 | 965 | |||||||||||||||||
| Canadian Dollar (CAD) | Sell | 2,155 | CAD | 4/8/08-4/10/08 | 2,099,132 | 74,253 | 6,273 | |||||||||||||||||
| Canadian Dollar (CAD) | Buy | 565 | CAD | 4/25/08-5/9/08 | 550,201 | — | 1,440 | |||||||||||||||||
| Chilean Peso (CLP) | Buy | 347,000 | CLP | 4/21/08-6/17/08 | 792,607 | 5,084 | 2,765 | |||||||||||||||||
| Colombian Peso (COP) | Sell | 1,430,000 | COP | 5/6/08-6/9/08 | 771,961 | — | 28,815 | |||||||||||||||||
| Czech Koruna (CZK) | Buy | 9,838 | CZK | 4/2/08-4/30/08 | 615,001 | 55,955 | 2 | |||||||||||||||||
| Egyptian Pounds (EGP) | Buy | 406 | EGP | 4/1/08-4/7/08 | 74,417 | 171 | — | |||||||||||||||||
| Euro (EUR) | Sell | 5,655 | EUR | 4/2/08-4/10/08 | 8,924,885 | — | 477,871 | |||||||||||||||||
| Euro (EUR) | Buy | 5,460 | EUR | 4/7/08-6/27/08 | 8,608,997 | 569,878 | — | |||||||||||||||||
| Hungarian Forint (HUF) | Sell | 132,000 | HUF | 4/21/08-10/2/08 | 790,733 | 1,013 | 7,406 | |||||||||||||||||
| Hungarian Forint (HUF) | Buy | 39,000 | HUF | 4/21/08 | 235,477 | — | 1,174 | |||||||||||||||||
| Indonesia Rupiah (IDR) | Buy | 6,230,000 | IDR | 5/30/08 | 672,423 | — | 10,266 | |||||||||||||||||
| Israeli Shekel (ILS) | Buy | 2,580 | ILS | 4/30/08-5/2/08 | 731,737 | 49,330 | — | |||||||||||||||||
| Japanese Yen (JPY) | Sell | 72,000 | JPY | 4/2/08-5/14/08 | 723,888 | — | 32,720 | |||||||||||||||||
| Japanese Yen (JPY) | Buy | 1,044,000 | JPY | 4/10/08-6/10/08 | 10,485,325 | 862,091 | 1,838 | |||||||||||||||||
| Kuwaiti Dinar (KWD) | Buy | 14 | KWD | 1/29/09 | 53,792 | 1,593 | — | |||||||||||||||||
| Malaysian Ringgit (MYR) | Buy | 4,230 | MYR | 4/10/08-6/17/08 | 1,321,841 | 16,819 | 4,624 | |||||||||||||||||
| Mexican Nuevo Peso (MXN) | Sell | 6,000 | MXN | 4/25/08 | 561,889 | — | 4,814 | |||||||||||||||||
| Mexican Nuevo Peso (MXN) | Buy | 4,500 | MXN | 5/27/08 | 419,674 | 6,034 | — | |||||||||||||||||
| New Taiwan Dollar (TWD) | Sell | 17,000 | TWD | 4/30/08 | 563,810 | 8,581 | — | |||||||||||||||||
| New Taiwan Dollar (TWD) | Buy | 10,000 | TWD | 4/28/08 | 331,487 | — | 6,145 | |||||||||||||||||
| New Turkish Lira (TRY) | Sell | 910 | TRY | 4/28/08 | 674,948 | 27,153 | — | |||||||||||||||||
| New Zealand Dollar (NZD) | Sell | 735 | NZD | 4/8/08-4/28/08 | 576,348 | 5,821 | 11,536 | |||||||||||||||||
| New Zealand Dollar (NZD) | Buy | 1,170 | NZD | 5/14/08 | 912,784 | 47,753 | — | |||||||||||||||||
| Norwegian Krone (NOK) | Sell | 1,630 | NOK | 4/28/08 | 319,332 | — | 11,768 | |||||||||||||||||
| Norwegian Krone (NOK) | Buy | 14,610 | NOK | 4/10/08-5/14/08 | 2,863,675 | 90,225 | — | |||||||||||||||||
| Peruvian New Sol (PEN) | Buy | 690 | PEN | 4/18/08 | 251,839 | 14,399 | — | |||||||||||||||||
| Philippines Peso (PHP) | Buy | 47,000 | PHP | 4/25/08-5/30/08 | 1,120,725 | — | 25,479 | |||||||||||||||||
| Polish Zloty (PLZ) | Buy | 3,370 | PLZ | 4/10/08-10/2/08 | 1,507,707 | 99,968 | 664 | |||||||||||||||||
| Qatari Riyal (QAR) | Buy | 180 | QAR | 1/29/09 | 50,833 | — | 478 | |||||||||||||||||
| Saudi Riyal (SAR) | Buy | 190 | SAR | 1/29/09 | 51,557 | 101 | — | |||||||||||||||||
| Singapore Dollar (SGD) | Sell | 920 | SGD | 4/28/08 | 669,294 | — | 7,237 | |||||||||||||||||
| Slovak Koruna (SKK) | Buy | 9,390 | SKK | 4/30/08 | 455,770 | 44,181 | — | |||||||||||||||||
| South Korean Won (KRW) | Buy | 861,000 | KRW | 4/28/08-6/30/08 | 870,097 | 1,747 | 31,086 | |||||||||||||||||
| Swedish Krona (SEK) | Sell | 3,400 | SEK | 5/14/08 | 570,866 | — | 46,726 | |||||||||||||||||
| Swedish Krona (SEK) | Buy | 4,010 | SEK | 4/10/08 | 674,536 | 55,752 | — | |||||||||||||||||
| Swiss Franc (CHF) | Sell | 460 | CHF | 4/8/08-4/28/08 | 463,256 | — | 11,712 | |||||||||||||||||
| Swiss Franc (CHF) | Buy | 1,914 | CHF | 4/7/08-5/9/08 | 1,927,405 | 115,976 | 7 | |||||||||||||||||
| Ukraine Hryvnia (UAH) | Buy | 270 | UAH | 1/28/09 | 50,310 | — | 1,503 | |||||||||||||||||
| United Arab Emirates | ||||||||||||||||||||||||
| Dirham (AED) | Buy | 190 | AED | 1/29/09 | 53,037 | — | 110 | |||||||||||||||||
| Vietnam Dong (VND) | Buy | 820,000 | VND | 1/30/09 | 49,026 | — | 2,579 | |||||||||||||||||
| Total unrealized appreciation and depreciation | $ | 2,187,930 | $ | 789,687 | ||||||||||||||||||||
19 | OPPENHEIMER SMA INTERNATIONAL BOND FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
Footnotes to Statement of Investments Continued
Futures Contracts as of March 31, 2008 are as follows:
| Unrealized | ||||||||||||||||||||
| Number of | Expiration | Appreciation | ||||||||||||||||||
| Contract Description | Buy/Sell | Contracts | Date | Value | (Depreciation) | |||||||||||||||
| Canada (Government of) | ||||||||||||||||||||
| Bonds, 10 yr. | Buy | 10 | 6/19/08 | $ | 1,166,935 | $ | 39,822 | |||||||||||||
| DAX Index | Sell | 2 | 6/20/08 | 520,634 | (13,955 | ) | ||||||||||||||
| Euro-Bundesobligation, 10 yr. | Sell | 28 | 6/6/08 | 5,126,916 | 68,475 | |||||||||||||||
| Euro-Schatz | Buy | 27 | 6/6/08 | 4,454,674 | (31,130 | ) | ||||||||||||||
| Japan (Government of) Bonds, 10 yr. | Buy | 11 | 6/10/08 | 1,550,020 | 14,779 | |||||||||||||||
| OMXS 30 Index | Sell | 26 | 4/25/08 | 407,053 | (11,117 | ) | ||||||||||||||
| Standard & Poor’s 500 E-Mini Index | Buy | 6 | 6/20/08 | 397,200 | 13,324 | |||||||||||||||
| Standard & Poor’s/Toronto Stock | ||||||||||||||||||||
| Exchange 60 Index | Buy | 3 | 6/19/08 | 459,331 | 2,612 | |||||||||||||||
| U.S. Long Bonds | Buy | 11 | 6/19/08 | 1,306,766 | 39,553 | |||||||||||||||
| U.S. Treasury Nts., 5 yr. | Sell | 8 | 6/30/08 | 913,875 | (13,754 | ) | ||||||||||||||
| U.S. Treasury Nts., 10 yr. | Sell | 21 | 6/19/08 | 2,498,016 | (87,898 | ) | ||||||||||||||
| U.S. Treasury Nts., 10 yr. | Buy | 14 | 6/19/08 | 1,665,344 | 45,330 | |||||||||||||||
| $ | 66,041 | |||||||||||||||||||
Written Options as of March 31, 2008 are as follows:
| Number of | Exercise | Expiration | Premiums | |||||||||||||||||||||
| Description | Type | Contracts | Price | Date | Received | Value | ||||||||||||||||||
| British Pound Sterling (GBP) | Call | 9,000 | $ | 1.9845 | 4/7/08 | $ | 94 | $ | 82 | |||||||||||||||
| British Pound Sterling (GBP) | Call | 9,000 | 1.9925 | 4/1/08 | 89 | 13 | ||||||||||||||||||
| British Pound Sterling (GBP) | Call | 8,000 | 1.9965 | 4/4/08 | 86 | 27 | ||||||||||||||||||
| British Pound Sterling (GBP) | Put | 9,000 | 1.9925 | 4/1/08 | 93 | 96 | ||||||||||||||||||
| British Pound Sterling (GBP) | Put | 8,000 | 1.9965 | 4/4/08 | 86 | 142 | ||||||||||||||||||
| British Pound Sterling (GBP) | Put | 9,000 | 1.9845 | 4/7/08 | 94 | 105 | ||||||||||||||||||
| Euro (EUR) | Call | 35,000 | 1.5585 | 4/1/08 | 337 | 734 | ||||||||||||||||||
| Euro (EUR) | Call | 30,000 | 1.5725 | 4/2/08 | 297 | 276 | ||||||||||||||||||
| Euro (EUR) | Call | 45,000 | 1.5790 | 4/3/08 | 463 | 350 | ||||||||||||||||||
| Euro (EUR) | Call | 30,000 | 1.5805 | 4/4/08 | 317 | 226 | ||||||||||||||||||
| Euro (EUR) | Call | 35,000 | 1.5805 | 4/7/08 | 349 | 312 | ||||||||||||||||||
| Euro (EUR) | Put | 35,000 | 1.5585 | 4/1/08 | 344 | 19 | ||||||||||||||||||
| Euro (EUR) | Put | 30,000 | 1.5725 | 4/2/08 | 297 | 111 | ||||||||||||||||||
| Euro (EUR) | Put | 45,000 | 1.5790 | 4/3/08 | 463 | 363 | ||||||||||||||||||
| Euro (EUR) | Put | 30,000 | 1.5805 | 4/4/08 | 317 | 306 | ||||||||||||||||||
| Euro (EUR) | Put | 35,000 | 1.5805 | 4/7/08 | 349 | 408 | ||||||||||||||||||
| Japanese Yen (JPY) | Call | 3,000,000 | 100.0500 | 4/1/08 | 265 | 187 | ||||||||||||||||||
| Japanese Yen (JPY) | Call | 3,000,000 | 99.1500 | 4/2/08 | 292 | 121 | ||||||||||||||||||
| Japanese Yen (JPY) | Call | 6,000,000 | 99.3000 | 4/3/08 | 544 | 302 | ||||||||||||||||||
| Japanese Yen (JPY) | Call | 3,000,000 | 99.7000 | 4/4/08 | 287 | 270 | ||||||||||||||||||
| Japanese Yen (JPY) | Call | 4,000,000 | 99.4500 | 4/7/08 | 397 | 397 | ||||||||||||||||||
| Japanese Yen (JPY) | Put | 3,000,000 | 100.0500 | 4/1/08 | 265 | 87 | ||||||||||||||||||
| Japanese Yen (JPY) | Put | 3,000,000 | 99.1500 | 4/2/08 | 284 | 309 | ||||||||||||||||||
| Japanese Yen (JPY) | Put | 6,000,000 | 99.3000 | 4/3/08 | 574 | 572 | ||||||||||||||||||
| Japanese Yen (JPY) | Put | 3,000,000 | 99.7000 | 4/4/08 | 287 | 265 | ||||||||||||||||||
| Japanese Yen (JPY) | Put | 4,000,000 | 99.4500 | 4/7/08 | 397 | 397 | ||||||||||||||||||
| $ | 7,667 | $ | 6,477 | |||||||||||||||||||||
20 | OPPENHEIMER SMA INTERNATIONAL BOND FUND
Credit Default Swap Contracts as of March 31, 2008 are as follows:
| Pay/ | ||||||||||||||||||||||
| Notional | Receive | |||||||||||||||||||||
| Buy/Sell | Amount | Fixed | Termination | |||||||||||||||||||
| Counterparty | Reference Entity | Credit Protection | (000s) | Rate | Date | Value | ||||||||||||||||
| Citibank NA, New York | Pakistan | Sell | $ | 30 | 5.10 | % | 3/20/13 | $ | 357 | |||||||||||||
| Credit Suisse International: | ||||||||||||||||||||||
| Development Bank of Kazakhstan | Sell | 90 | 3.75 | 2/20/13 | 555 | |||||||||||||||||
| Joint Stock Co.“Halyk Bank of Kazakhstan” | Sell | 20 | 4.95 | 3/20/13 | 148 | |||||||||||||||||
| Deutsche Bank AG | Republic of Peru | Sell | 60 | 1.50 | 4/20/17 | (2,382 | ) | |||||||||||||||
| Morgan Stanley | ||||||||||||||||||||||
| Capital Services, Inc.: | ||||||||||||||||||||||
| Joint Stock Co.“Halyk Bank of Kazakhstan” | Sell | 40 | 4.88 | 3/20/13 | 186 | |||||||||||||||||
| Joint Stock Co.“Halyk Bank of Kazakhstan” | Sell | 40 | 4.78 | 3/20/13 | 30 | |||||||||||||||||
| UBS AG | Republic of The Philippines | Sell | 230 | 2.50 | 6/20/17 | (7,110 | ) | |||||||||||||||
| $ | (8,216 | ) | ||||||||||||||||||||
Interest Rate Swap Contracts as of March 31, 2008 are as follows:
| Swap | Notional | Paid by | Received by | Termination | ||||||||||||||||
| Counterparty | Amount | the Fund | the Fund | Date | Value | |||||||||||||||
| Banco Santander Central | Six-Month | |||||||||||||||||||
| Hispano SA | 33,000,000 | CLP | TNA-Chile | 6.60000 | % | 8/21/17 | $ | 1,852 | ||||||||||||
| Six-Month | ||||||||||||||||||||
| Citibank NA, New York | 26,000,000 | CLP | TNA-Chile | 6.53000 | 8/25/17 | 628 | ||||||||||||||
| Six-Month | ||||||||||||||||||||
| Credit Suisse International | 26,000,000 | CLP | TNA-Chile | 6.58000 | 8/21/17 | 1,627 | ||||||||||||||
| Deutsche Bank AG: | ||||||||||||||||||||
| Three-Month | ||||||||||||||||||||
| 680,000 | NZD | NZD-BBR | 7.58750 | 1/8/18 | 3,128 | |||||||||||||||
| Three-Month | ||||||||||||||||||||
| 3,360,000 | SEK | SEK-STIBOR | 4.78750 | 11/14/17 | 6,401 | |||||||||||||||
| Goldman Sachs | ||||||||||||||||||||
| Capital Markets LP | 1,320,000 | MXN | MXN TIIE | 8.14000 | 1/10/18 | 1,370 | ||||||||||||||
| J Aron & Co.: | ||||||||||||||||||||
| 2,800,000 | BRR | BZDI | 12.77000 | 1/4/10 | (9,014 | ) | ||||||||||||||
| 1,700,000 | BRR | BZDI | 13.00000 | 1/2/15 | (14,423 | ) | ||||||||||||||
| 210,000 | BRR | BZDI | 13.10000 | 1/2/17 | 4 | |||||||||||||||
| 2,000,000 | BRR | BZDI | 11.46000 | 1/2/12 | (38,138 | ) | ||||||||||||||
| Six-Month | ||||||||||||||||||||
| JPMorgan Chase Bank NA | 9,000,000 | CZK | 4.4000 | % | CZK-PRIBOR | 4/4/18 | — | |||||||||||||
| Lehman Brothers | ||||||||||||||||||||
| Special Financing, Inc. | 520,000 | BRR | BZDI | 12.90000 | 1/2/14 | (7,813 | ) | |||||||||||||
| Merrill Lynch | ||||||||||||||||||||
| Capital Services, Inc.: | ||||||||||||||||||||
| Six-Month | ||||||||||||||||||||
| 750,000 | SGD | 3.3350 | SGD-SOR | 1/8/18 | (2,578 | ) | ||||||||||||||
21 | OPPENHEIMER SMA INTERNATIONAL BOND FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
Footnotes to Statement of Investments Continued
Interest Rate Swap Contracts: Continued
| Swap | Notional | Paid by | Received by | Termination | ||||||||||||||||
| Counterparty | Amount | the Fund | the Fund | Date | Value | |||||||||||||||
| Merrill Lynch | ||||||||||||||||||||
| Capital Services, Inc.: Continued | Three-Month | |||||||||||||||||||
| 1,640,000 | CAD | CAD-BA-CDOR | 4.03000 | % | 1/16/11 | $ | 27,163 | |||||||||||||
| Morgan Stanley | ||||||||||||||||||||
| Capital Services, Inc.: | ||||||||||||||||||||
| Three-Month | ||||||||||||||||||||
| 2,740,000 | SEK | SEK-STIBOR | 4.49375 | 1/25/18 | (11,024 | ) | ||||||||||||||
| Six-Month | ||||||||||||||||||||
| 790,000 | EUR | 4.7130 | % | EURIBOR | 8/22/17 | (63,150 | ) | |||||||||||||
| Six-Month NOK- | ||||||||||||||||||||
| 8,600,000 | NOK | 4.9850 | NIBOR-NIBR | 1/18/11 | 34,345 | |||||||||||||||
| Three-Month | ||||||||||||||||||||
| 3,420,000 | SEK | SEK-STIBOR | 4.26000 | 1/18/11 | (4,954 | ) | ||||||||||||||
| Six-Month | ||||||||||||||||||||
| 360,000 | EUR | EUR-EURIBOR | 3.99600 | 1/18/11 | (3,982 | ) | ||||||||||||||
| Six-Month | ||||||||||||||||||||
| 590,000 | CHF | CHF-BBA LIBOR | 2.66000 | 1/18/11 | (3,900 | ) | ||||||||||||||
| Westpac Banking Corp.: | ||||||||||||||||||||
| Six-Month | ||||||||||||||||||||
| 590,000 | AUD | AUD-BBR | 7.01000 | 1/8/18 | (5,342 | ) | ||||||||||||||
| Six-Month | ||||||||||||||||||||
| EUR-EURIBOR- | ||||||||||||||||||||
| 1,460,000 | EUR | Telerate | 4.24000 | 11/29/10 | 4,926 | |||||||||||||||
| Three-Month | ||||||||||||||||||||
| 950,000 | NZD | 7.9700 | NZD-BBR-FRA | 11/29/10 | (11,280 | ) | ||||||||||||||
| Three-Month | ||||||||||||||||||||
| 940,000 | NZD | 7.8400 | NZD-BBR-FRA | 10/13/10 | (1,354 | ) | ||||||||||||||
| Three-Month | ||||||||||||||||||||
| 2,080,000 | NZD | 7.9325 | NZD-BBR-FRA | 1/18/1 | 1 5,079 | |||||||||||||||
| Three-Month | ||||||||||||||||||||
| 940,000 | NZD | 7.9075 | NZD-BBR-FRA | 10/19/10 | (9,838 | ) | ||||||||||||||
| $ | (100,267 | ) | ||||||||||||||||||
| Notional amount is reported in U.S. Dollars (USD), except for those denoted in the following currencies: | ||||||
| AUD | Australian Dollar | EUR | Euro | |||
| BRR | Brazilian Real | MXN | Mexican Nuevo Peso | |||
| CAD | Canadian Dollar | NOK | Norwegian Krone | |||
| CHF | Swiss Franc | NZD | New Zealand Dollar | |||
| CLP | Chilean Peso | SEK | Swedish Krona | |||
| CZK | Czech Koruna | SGD | Singapore Dollar | |||
| Abbreviations are as follows: | ||||||
| BA-CDOR | Bankers’ Acceptance Rate | NIBOR-NIBR | Norwegian Interbank Offered Rate | |||
| BBA LIBOR | British Bankers’ Association London | PRIBOR | Prague Interbank Offering Rate | |||
| Interbank Offered Rate | SOR | Swap Offer Rate | ||||
| BBR | Bank Bill Rate | STIBOR | Stockholm Interbank Offered Rate | |||
| BBR-FRA | Bank Bill Rate Forward Rate Agreement | TIIE | Interbank Equilibrium Interest Rate | |||
| BZDI | Brazil Interbank Deposit Rate | TNA | Tasa Nominal Annual | |||
| EURIBOR | Euro Interbank Offered Rate | |||||
22 | OPPENHEIMER SMA INTERNATIONAL BOND FUND
Total Return Swap Contract as of March 31, 2008 is as follows:
| Swap | Notional | Paid by | Received by | Termination | ||||||||||||||||
| Counterparty | Amount | the Fund | the Fund | Date | Value | |||||||||||||||
| The Constant Maturity | ||||||||||||||||||||
| Merrill Lynch Capital | Option Price divided by | |||||||||||||||||||
| Services, Inc. | $ | 880,000 | 5.33 | % | 10,000 | 8/13/17 | $ | (28,870 | ) | |||||||||||
Distribution of investments representing geographic holdings, as a percentage of total investments at value, is as follows:
| Geographic Holdings | Value | Percent | ||||||
| United States | $ | 11,112,241 | 20.6 | % | ||||
| France | 5,807,501 | 10.8 | ||||||
| Germany | 5,637,931 | 10.4 | ||||||
| Japan | 4,867,956 | 9.0 | ||||||
| United Kingdom | 4,445,769 | 8.2 | ||||||
| Peru | 2,078,142 | 3.8 | ||||||
| Canada | 1,846,334 | 3.4 | ||||||
| Australia | 1,804,254 | 3.3 | ||||||
| Turkey | 1,733,060 | 3.2 | ||||||
| European Union | 1,548,164 | 2.9 | ||||||
| Colombia | 1,503,357 | 2.8 | ||||||
| Italy | 1,359,889 | 2.5 | ||||||
| Brazil | 1,227,068 | 2.3 | ||||||
| Mexico | 1,222,453 | 2.3 | ||||||
| Greece | 950,305 | 1.8 | ||||||
| The Netherlands | 769,526 | 1.4 | ||||||
| Russia | 700,171 | 1.3 | ||||||
| Nigeria | 593,664 | 1.1 | ||||||
| Philippines | 537,505 | 1.0 | ||||||
| Egypt | 507,330 | 0.9 | ||||||
| Austria | 431,645 | 0.8 | ||||||
| Belgium | 415,216 | 0.8 | ||||||
| Ukraine | 375,703 | 0.7 | ||||||
| Denmark | 332,213 | 0.6 | ||||||
| Panama | 327,925 | 0.6 | ||||||
| Venezuela | 269,154 | 0.5 | ||||||
| Argentina | 251,895 | 0.5 | ||||||
| Israel | 245,840 | 0.5 | ||||||
| Indonesia | 245,040 | 0.4 | ||||||
| Dominican Republic | 240,653 | 0.4 | ||||||
| Uruguay | 145,125 | 0.3 | ||||||
| India | 130,297 | 0.2 | ||||||
| Supranational | 76,250 | 0.1 | ||||||
| Zambia | 49,929 | 0.1 | ||||||
| El Salvador | 42,600 | 0.1 | ||||||
| Ghana | 42,000 | 0.1 | ||||||
| Trinidad & Tobago | 37,646 | 0.1 | ||||||
| Guatemala | 34,890 | 0.1 | ||||||
| Costa Rica | 32,531 | 0.1 | ||||||
| Kazakhstan | 13,050 | 0.0 | ||||||
| Total | $ | 53,992,222 | 100.0 | % | ||||
See accompanying Notes to Financial Statements.
23 | OPPENHEIMER SMA INTERNATIONAL BOND FUND
STATEMENT OF ASSETS AND LIABILITIES Unaudited
March 31, 2008
Assets | ||||
| Investments, at value—see accompanying statement of investments: | ||||
| Unaffiliated companies (cost $48,225,889) | $ | 51,072,277 | ||
| Affiliated companies (cost $2,919,945) | 2,919,945 | |||
| 53,992,222 | ||||
| Cash—foreign currencies (cost $1,213) | 1,213 | |||
| Cash used for collateral on futures | 50,000 | |||
| Unrealized appreciation on foreign currency exchange contracts | 2,187,930 | |||
| Swaps, at value | 87,799 | |||
| Receivables and other assets: | ||||
| Interest and dividends | 874,177 | |||
| Closed foreign currency contracts | 519,872 | |||
| Investments sold | 3,059 | |||
| Futures margins | 816 | |||
| Other | 5,132 | |||
| Total assets | 57,722,220 | |||
Liabilities | ||||
| Bank overdraft | 8,984 | |||
| Options written, at value (premiums received $7,667)—see accompanying statement of investments | 6,477 | |||
| Unrealized depreciation on foreign currency exchange contracts | 789,687 | |||
| Swaps, at value | 225,152 | |||
| Payables and other liabilities: | ||||
| Closed foreign currency contracts | 589,515 | |||
| Dividends | 213,196 | |||
| Investments purchased (including $47,247 purchased on a when-issued or delayed delivery basis) | 74,438 | |||
| Trustees’ compensation | 451 | |||
| Shares of beneficial interest redeemed | 251 | |||
| Other | 37,018 | |||
| Total liabilities | 1,945,169 | |||
Net Assets | $ | 55,777,051 | ||
24 | OPPENHEIMER SMA INTERNATIONAL BOND FUND
Composition of Net Assets | ||||
| Par value of shares of beneficial interest | $ | 5,016 | ||
| Additional paid-in capital | 50,153,900 | |||
| Accumulated net investment loss | (79,768 | ) | ||
| Accumulated net realized gain on investments and foreign currency transactions | 1,493,686 | |||
| Net unrealized appreciation on investments and translation of assets and liabilities denominated in foreign currencies | 4,204,217 | |||
Net Assets—applicable to 5,015,897 shares of beneficial interest outstanding | $ | 55,777,051 | ||
Net Asset Value, Redemption Price Per Share and Offering Price Per Share | $ | 11.12 | ||
See accompanying Notes to Financial Statements.
25 | OPPENHEIMER SMA INTERNATIONAL BOND FUND
STATEMENT OF OPERATIONS Unaudited
For the Six Months Ended March 31, 2008
Investment Income | ||||
| Interest (net of foreign withholding taxes of $6,091) | $ | 1,170,030 | ||
| Dividends from affiliated companies | 146,803 | |||
| Total investment income | 1,316,833 | |||
Expenses | ||||
| Management fees | 127,671 | |||
| Legal, auditing and other professional fees | 80,489 | |||
| Interest expense | 20,074 | |||
| Shareholder communications | 9,623 | |||
| Custodian fees and expenses | 3,426 | |||
| Trustees’ compensation | 587 | |||
| Other | 3,533 | |||
| Total expenses | 245,403 | |||
| Less reduction to custodian expenses | (994 | ) | ||
| Less waivers and reimbursements of expenses | (243,822 | ) | ||
| Net expenses | 587 | |||
Net Investment Income | 1,316,246 | |||
Realized and Unrealized Gain (Loss) | ||||
| Net realized gain (loss) on: | ||||
| Investment from unaffiliated companies (including premiums on options exercised) | 9,361 | |||
| Closing and expiration of option contracts written | 66,619 | |||
| Closing and expiration of futures contracts | 413,724 | |||
| Foreign currency transactions | 1,216,464 | |||
| Swap contracts | (96,176 | ) | ||
| Net realized gain | 1,609,992 | |||
| Net change in unrealized appreciation (depreciation) on: | ||||
| Investments | 174,404 | |||
| Translation of assets and liabilities denominated in foreign currencies | 3,163,633 | |||
| Futures contracts | 49,802 | |||
| Option contracts written | 1,687 | |||
| Swap contracts | (151,128 | ) | ||
| Net change in unrealized appreciation | 3,238,398 | |||
Net Increase in Net Assets Resulting from Operations | $ | 6,164,636 | ||
See accompanying Notes to Financial Statements.
26 | OPPENHEIMER SMA INTERNATIONAL BOND FUND
STATEMENTS OF CHANGES IN NET ASSETS
| Six Months | Period | |||||||
| Ended | Ended | |||||||
| March 31, 2008 | September 30, | |||||||
| (Unaudited) | 20071 | |||||||
Operations | ||||||||
| Net investment income | $ | 1,316,246 | $ | 486,139 | ||||
| Net realized gain | 1,609,992 | 158,774 | ||||||
| Net change in unrealized appreciation | 3,238,398 | 965,819 | ||||||
| Net increase in net assets resulting from operations | 6,164,636 | 1,610,732 | ||||||
Dividends and/or Distributions to Shareholders | ||||||||
| Dividends from net investment income | (1,509,595 | ) | (486,076 | ) | ||||
| Distributions from net realized gain | (161,562 | ) | — | |||||
Beneficial Interest Transactions | ||||||||
| Net increase in net assets resulting from beneficial interest transactions | — | 50,058,916 | ||||||
Net Assets | ||||||||
| Total increase | 4,493,479 | 51,183,572 | ||||||
| Beginning of period | 51,283,572 | 100,0002 | ||||||
| End of period (including accumulated net investment income (loss) of $(79,768) and $113,581, respectively) | $ | 55,777,051 | $ | 51,283,572 | ||||
1. For the period from July 23, 2007 (commencement of operations) to September 30, 2007.
2. Reflects the value of the Manager’s initial seed money investment on May 14, 2007.
2. Reflects the value of the Manager’s initial seed money investment on May 14, 2007.
See accompanying Notes to Financial Statements.
27 | OPPENHEIMER SMA INTERNATIONAL BOND FUND
FINANCIAL HIGHLIGHTS
| Six Months | Period | |||||||
| Ended | Ended | |||||||
| March 31, 2008 | Sept. 30, | |||||||
| (Unaudited) | 20071 | |||||||
Per Share Operating Data | ||||||||
| Net asset value, beginning of period | $ | 10.22 | $ | 10.00 | ||||
| Income (loss) from investment operations: | ||||||||
Net investment income2 | .26 | .10 | ||||||
| Net realized and unrealized gain | .97 | .22 | ||||||
| Total from investment operations | 1.23 | .32 | ||||||
| Dividends and/or distributions to shareholders: | ||||||||
| Dividends from net investment income | (.30 | ) | (.10 | ) | ||||
| Distributions from net realized gain | (.03 | ) | — | |||||
| Total dividends and/or distributions to shareholders | (.33 | ) | — | |||||
| Net asset value, end of period | $ | 11.12 | $ | 10.22 | ||||
Total Return, at Net Asset Value3 | 12.26 | % | 3.19 | % | ||||
Ratios/Supplemental Data | ||||||||
| Net assets, end of period (in thousands) | $ | 55,777 | $ | 51,284 | ||||
| Average net assets (in thousands) | $ | 53,149 | $ | 50,199 | ||||
Ratios to average net assets:4 | ||||||||
| Net investment income | 4.95 | % | 5.05 | % | ||||
| Total expenses | 0.92 | % | 0.92 | % | ||||
| Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses | 0.00 | % | 0.00 | % | ||||
| Portfolio turnover rate | 50 | % | 30 | % | ||||
1. For the period from July 23, 2007 (commencement of operations) to September 30, 2007.
2. Per share amounts calculated based on the average shares outstanding during the period.
3. Assumes an investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods 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 less than one full year.
2. Per share amounts calculated based on the average shares outstanding during the period.
3. Assumes an investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods 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 less than one full year.
See accompanying Notes to Financial Statements.
28 | OPPENHEIMER SMA INTERNATIONAL BOND FUND
NOTES TO FINANCIAL STATEMENTS Unaudited
1. Significant Accounting Policies
Oppenheimer SMA International Bond Fund (the “Fund”) is a registered investment company organized as a Massachusetts Business Trust. The Fund is registered as a non-diversified, open-end management investment company under the Investment Company Act of 1940, as amended. The Fund’s primary objective is to seek total return. The Fund’s investment adviser is OppenheimerFunds, Inc. (the “Manager”).
Oppenheimer SMA International Bond Fund (the “Fund”) is a registered investment company organized as a Massachusetts Business Trust. The Fund is registered as a non-diversified, open-end management investment company under the Investment Company Act of 1940, as amended. The Fund’s primary objective is to seek total return. The Fund’s investment adviser is OppenheimerFunds, Inc. (the “Manager”).
As of March 31, 2008, 100% of the shares of were owned by the Manager and its affiliates.
Shares of the Fund may be purchased only by or on behalf of separately managed account clients (“wrap-fee” accounts) who have retained OFI Private Investments Inc. or certain of its affiliates (individually or collectively referred to as “OFI PI”), to manage their accounts pursuant to an investment management agreement with OFI PI and/or a managed account program sponsor as part of a “wrap-fee” program.
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 trading. Securities may be valued primarily using dealer-supplied valuations or a portfolio pricing service authorized by the Board of Trustees. Securities traded on a registered U.S. securities exchange 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 whose principal exchange is NASDAQ® are valued based on the closing price reported by NASDAQ prior to the time when the Fund’s assets are valued. In the absence of a sale, the security is valued at the last sale price on the prior trading day, if it is within the spread of the closing “bid” and “asked” prices, and if not, at the closing bid price. Securities traded on foreign exchanges are valued based on the last sale price on the principal exchange on which the security is traded, as identified by the portfolio pricing service, prior to the time when the Fund’s assets are valued. In the absence of a sale, the security is valued at the official closing price on the principal exchange. Corporate, government and municipal debt instruments having a remaining maturity in excess of sixty days and all mortgage-backed securities, collateralized mortgage obligations and other asset-backed securities will be valued at the mean between the “bid” and “asked” prices. Securities for which market quotations are not readily available are valued at their fair value. 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. Shares of a registered investment company that are not traded on an exchange are valued at the acquired investment company’s net asset value per share. “Money market-type” debt instruments with remaining maturities of sixty days or less are valued at cost adjusted by the amortization of discount or premium to maturity (amortized cost), which approximates market value.
29 | OPPENHEIMER SMA INTERNATIONAL BOND FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
1. Significant Accounting Policies Continued
Structured Securities. The Fund invests in structured securities whose market values, interest rates and/or redemption prices are linked to the performance of underlying foreign currencies, interest rate spreads, stock market indices, prices of individual securities, commodities or other financial instruments or the occurrence of other specific events. The structured securities are often leveraged, increasing the volatility of each note’s market value relative to the change in the underlying linked financial element or event. Fluctuations in value of these securities are recorded as unrealized gains and losses in the accompanying Statement of Operations. The Fund records a realized gain or loss when a structured security is sold or matures.
Structured Securities. The Fund invests in structured securities whose market values, interest rates and/or redemption prices are linked to the performance of underlying foreign currencies, interest rate spreads, stock market indices, prices of individual securities, commodities or other financial instruments or the occurrence of other specific events. The structured securities are often leveraged, increasing the volatility of each note’s market value relative to the change in the underlying linked financial element or event. Fluctuations in value of these securities are recorded as unrealized gains and losses in the accompanying Statement of Operations. The Fund records a realized gain or loss when a structured security is sold or matures.
Securities on a When-Issued or Delayed Delivery Basis. The Fund may purchase securities on a “when-issued” basis, and may purchase or sell securities on a “delayed delivery” basis. “When-issued” or “delayed delivery” refers to securities whose terms and indenture are available and for which a market exists, but which are not available for immediate delivery. Delivery and payment for securities that have been purchased by the Fund on a when-issued basis normally takes place within six months and possibly as long as two years or more after the trade date. During this period, such securities do not earn interest, are subject to market fluctuation and may increase or decrease in value prior to their delivery. The purchase of securities on a when-issued basis may increase the volatility of the Fund’s net asset value to the extent the Fund executes such transactions while remaining substantially fully invested. When the Fund engages in when-issued or delayed delivery transactions, it relies on the buyer or seller, as the case may be, to complete the transaction. Their failure to do so may cause the Fund to lose the opportunity to obtain or dispose of the security at a price and yield it considers advantageous. The Fund maintains internally designated assets with a market value equal to or greater than the amount of its purchase commitments. The Fund may also sell securities that it purchased on a when-issued basis or forward commitment prior to settlement of the original purchase.
As of March 31, 2008, the Fund had purchased securities issued on a when-issued or delayed delivery basis and sold securities issued on a delayed delivery basis as follows:
| When-Issued or | ||||
| Delayed Delivery | ||||
| Basis Transactions | ||||
| Purchased securities | $ | 47,247 | ||
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 Exchange, normally 4:00 P.M. Eastern time, on each day the Exchange is open for trading. Foreign exchange rates may be valued primarily using a reliable bank, dealer or service authorized by the Board of Trustees.
Reported net realized gains and losses from foreign currency transactions arise from sales of portfolio securities, sales and maturities of short-term securities, sales of foreign
30 | OPPENHEIMER SMA INTERNATIONAL BOND FUND
currencies, exchange rate fluctuations 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 appreciation and depreciation on the translation of assets and liabilities denominated in foreign currencies 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.
Investment in Oppenheimer Institutional Money Market Fund. The Fund is permitted to invest daily available cash balances in an affiliated money market fund. The Fund may invest the available cash in Class E shares of Oppenheimer Institutional Money Market Fund (“IMMF”) to seek current income while preserving liquidity. IMMF is a registered open-end management investment company, regulated as a money market fund under the Investment Company Act of 1940, as amended. The Manager is also the investment adviser of IMMF. The Fund’s investment in IMMF is included in the Statement of Investments. As a shareholder, the Fund is subject to its proportional share of IMMF’s Class E expenses, including its management fee. The Manager will waive fees and/or reimburse Fund expenses in an amount equal to the indirect management fees incurred through the Fund’s investment in IMMF.
Investments With Off-Balance Sheet Risk. The Fund enters into financial instrument transactions (such as swaps, futures, options and other derivatives) that may have off-balance sheet market risk. Off-balance sheet market risk exists when the maximum potential loss on a particular financial instrument is greater than the value of such financial instrument, as reflected in the Fund’s Statement of Assets and Liabilities.
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 Fund files income tax returns in U.S. federal and applicable state jurisdictions. The statute of limitations on the Fund’s tax return filings generally remain open for the three preceding fiscal reporting period ends.
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.
31 | OPPENHEIMER SMA INTERNATIONAL BOND FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
1. Significant Accounting Policies Continued.
The approximate 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 March 31, 2008 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.
The approximate 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 March 31, 2008 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.
| Federal tax cost of securities | $ | 51,145,834 | ||
| Federal tax cost of other investments | 1,461,279 | |||
| Total federal tax cost | $ | 52,607,113 | ||
| Gross unrealized appreciation | $ | 3,463,622 | ||
| Gross unrealized depreciation | (687,356 | ) | ||
| Net unrealized appreciation | $ | 2,776,266 | ||
Trustees’ Compensation. The Board of Trustees has adopted a compensation deferral 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 compensation deferral plan.
Dividends and Distributions to Shareholders. Dividends and distributions to shareholders, which are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles, are recorded on the ex-dividend date. Income distributions, if any, are declared daily and paid monthly. 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 is recognized on an accrual basis. Discount and premium, which are included in interest income on the Statement of Operations, are amortized or accreted daily.
32 | OPPENHEIMER SMA INTERNATIONAL BOND FUND
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 accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.
2. Shares of Beneficial Interest
The Fund has authorized an unlimited number of $0.001 par value shares of beneficial interest. Transactions in shares of beneficial interest were as follows:
The Fund has authorized an unlimited number of $0.001 par value shares of beneficial interest. Transactions in shares of beneficial interest were as follows:
| Six Months Ended March 31, 2008 | Period Ended September 30, 20071,2 | |||||||||||||||
| Shares | Amount | Shares | Amount | |||||||||||||
| Sold | — | $ | — | 5,005,903 | $ | 50,058,970 | ||||||||||
| Dividends and/or distributions reinvested | 185 | 1,965 | 54 | 544 | ||||||||||||
| Redeemed | (185 | ) | (1,965 | ) | (60 | ) | (598 | ) | ||||||||
| Net increase | — | $ | — | 5,005,897 | $ | 50,058,916 | ||||||||||
1. For the period from July 23, 2007 (commencement of operations) to September 30, 2007.
2. The Fund sold 10,000 shares at a value of $100,000 to the Manager upon seeding of the Fund on May 14, 2007.
2. The Fund sold 10,000 shares at a value of $100,000 to the Manager upon seeding of the Fund on May 14, 2007.
33 | OPPENHEIMER SMA INTERNATIONAL BOND FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
3. Purchases and Sales of Securities.
The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations and investments in IMMF, for the six months ended March 31, 2008, were as follows:
The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations and investments in IMMF, for the six months ended March 31, 2008, were as follows:
| Purchases | Sales | |||||||
| Investment securities | $ | 27,569,183 | $ | 15,287,002 | ||||
| U.S. government and government agency obligations | 7,810,969 | 2,641,969 | ||||||
4. Fees and Other Transactions with affiliates
Management Fees. The Manager has contractually agreed to waive the entire amount of its advisory fee, which is 0.48%, and the Fund does not pay any other fee for the Manager’s services. A portion of the “wrap-fee” that investors pay to the “wrap–fee” program sponsor may be attributed to the management of the Fund.
Management Fees. The Manager has contractually agreed to waive the entire amount of its advisory fee, which is 0.48%, and the Fund does not pay any other fee for the Manager’s services. A portion of the “wrap-fee” that investors pay to the “wrap–fee” program sponsor may be attributed to the management of the Fund.
Transfer Agent Fees. OppenheimerFunds Services (“OFS”), a division of the Manager, acts as the transfer and shareholder servicing agent for the Fund. The Fund pays OFS a per account fee. For the six months ended March 31, 2008, the Fund paid no fees to OFS for services to the Fund.
Offering and Organizational Costs. The Manager paid all initial offering and organizational costs associated with the registration and seeding of the Fund.
Waivers and Reimbursements of Expenses. The Manager has contractually agreed to waive all Management Fees and pay or reimburse all expenses of the Fund, except extraordinary expenses, transfer agent fees and fees paid to the independent Trustees. This agreement has no fixed term. Investors should be aware that even though the Fund does not pay any fees or expenses to the Manager, investors will pay a “wrap fee” to their program sponsor. During the six months ended March 31, 2008, the Manager waived management fees in the amount of $127,671. During the six months ended March 31, 2008, the Manager reimbursed expenses in the amount of $116,151.
OFS has voluntarily agreed to limit transfer and shareholder servicing agent fees for all classes to 0.35% of average annual net assets. This undertaking may be amended or withdrawn at any time.
5. Foreign Currency Exchange Contracts
The Fund may enter into foreign currency exchange contracts (“forward contracts”) for the purchase or sale of a foreign currency at a negotiated rate at a future date.
The Fund may enter into foreign currency exchange contracts (“forward contracts”) for the purchase or sale of a foreign currency at a negotiated rate at a future date.
Forward contracts are reported on a schedule following the Statement of Investments. Forward contracts will be valued daily based upon the closing prices of the forward currency rates determined at the close of the Exchange as provided by a bank, dealer or pricing service. The resulting unrealized appreciation (depreciation) is reported in the Statement of Assets and Liabilities as a receivable or payable and in the Statement of
34 | OPPENHEIMER SMA INTERNATIONAL BOND FUND
Operations within the change in unrealized appreciation (depreciation). At contract close, the difference between the original cost of the contract and the value at the close date is recorded as a realized gain (loss) in the Statement of Operations.
Risks to the Fund include both market and credit risk. Market risk is the risk that the value of the forward contract will depreciate due to unfavorable changes in the exchange rates. Credit risk arises from the possibility that the counterparty will default. If the counterparty defaults, the Fund’s loss will consist of the net amount of contractual payments that the Fund has not yet received.
6. Futures Contracts
A futures contract is a commitment to buy or sell a specific amount of a financial instrument at a negotiated price on a stipulated future date. The Fund may buy and sell futures contracts and may also buy or write put or call options on these futures contracts.
A futures contract is a commitment to buy or sell a specific amount of a financial instrument at a negotiated price on a stipulated future date. The Fund may buy and sell futures contracts and may also buy or write put or call options on these futures contracts.
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.
Upon entering into a futures contract, the Fund is required to deposit either cash or securities (initial margin) in an amount equal to a certain percentage of the contract value. Subsequent payments (variation margin) are made or received by the Fund each day. The variation margin payments are equal to the daily changes in the contract value and are recorded as unrealized gains and losses.
Futures contracts are reported on a schedule following the Statement of Investments. Securities held in collateralized accounts to cover initial margin requirements on open futures contracts are noted in the Statement of Investments. Cash held by the broker to cover initial margin requirements on open futures contracts and the receivable and/or payable for the daily mark to market for the variation margin are noted in the Statement of Assets and Liabilities. The net change in unrealized appreciation and depreciation is reported in the Statement of Operations. Realized gains (losses) are reported in the Statement of Operations at the closing or expiration of futures contracts.
Risks of entering into futures contracts (and related options) include the possibility that there may be an illiquid market where the Fund is unable to liquidate the contract or enter into an offsetting position and, if used for hedging purposes, the risk that the price of the contract will correlate imperfectly with the prices of the Fund’s securities.
7. Option Activity
The Fund may buy and sell put and call options, or write put and covered call options. When an option is written, the Fund receives a premium and becomes obligated to sell or purchase the underlying security at a fixed price, upon exercise of the option.
The Fund may buy and sell put and call options, or write put and covered call options. When an option is written, the Fund receives a premium and becomes obligated to sell or purchase the underlying security at a fixed price, upon exercise of the option.
Options are valued daily based upon the last sale price on the principal exchange on which the option is traded. The difference between the premium received or paid, and market value of the option, is recorded as unrealized appreciation or depreciation. The
35 | OPPENHEIMER SMA INTERNATIONAL BOND FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
7. Option Activity Continued
net change in unrealized appreciation or depreciation is reported in the Statement of Operations. When an option is exercised, the cost of the security purchased or the proceeds of the security sale are adjusted by the amount of premium received or paid. Upon the expiration or closing of the option transaction, a gain or loss is reported in the Statement of Operations.
net change in unrealized appreciation or depreciation is reported in the Statement of Operations. When an option is exercised, the cost of the security purchased or the proceeds of the security sale are adjusted by the amount of premium received or paid. Upon the expiration or closing of the option transaction, a gain or loss is reported in the Statement of Operations.
Securities designated to cover outstanding call or put options are noted in the Statement of Investments where applicable. Options written are reported in a schedule following the Statement of Investments and as a liability in the Statement of Assets and Liabilities.
The risk in writing a call option is that the Fund gives up the opportunity for profit if the market price of the security increases and the option is exercised. The risk in writing a put option is that the Fund may incur a loss if the market price of the security decreases and the option is exercised. The risk in buying an option is that the Fund pays a premium whether or not the option is exercised. The Fund also has the additional risk that there may be an illiquid market where the Fund is unable to close the contract.
Written option activity for the six months ended March 31, 2008 was as follows:
| Call Options | Put Options | |||||||||||||||
| Number of | Amount of | Number of | Amount of | |||||||||||||
| Contracts | Premiums | Contracts | Premiums | |||||||||||||
| Options outstanding as of September 30, 2007 | 128,000 | $ | 805 | 128,000 | $ | 805 | ||||||||||
| Options written | 397,172,000 | 70,898 | 242,232,000 | 54,519 | ||||||||||||
| Options closed or expired | (251,732,000 | ) | (39,776 | ) | (131,467,000 | ) | (30,349 | ) | ||||||||
| Options exercised | (126,367,000 | ) | (28,110 | ) | (91,692,000 | ) | (21,125 | ) | ||||||||
| Options outstanding as of March 31, 2008 | 19,201,000 | $ | 3,817 | 19,201,000 | $ | 3,850 | ||||||||||
8. Swap Contracts.
The Fund may enter into swap contract agreements with a counterparty to exchange a series of cash flows based on either specified reference rates, or the occurrence of a credit event, over a specified period. Such contracts may include interest rate, equity, debt, index, total return, credit and currency swaps.
The Fund may enter into swap contract agreements with a counterparty to exchange a series of cash flows based on either specified reference rates, or the occurrence of a credit event, over a specified period. Such contracts may include interest rate, equity, debt, index, total return, credit and currency swaps.
Swaps are marked to market daily using primarily quotations from pricing services, counterparties and brokers. Swap contracts are reported on a schedule following the Statement of Investments. The value of the contracts is separately disclosed on the Statement of Assets and Liabilities. The unrealized appreciation (depreciation) related to the change in the valuation of the notional amount of the swap is combined with the accrued interest due to (owed by) the Fund at termination or settlement. The net change in this amount during the period is included on the Statement of Operations. The Fund also records any periodic payments received from (paid to) the counterparty, including at termination, under such contracts as realized gain (loss) on the Statement of Operations.
36 | OPPENHEIMER SMA INTERNATIONAL BOND FUND
Risks of entering into swap contracts include credit, market and liquidity risk. Credit risk arises from the possibility that the counterparty will default. If the counterparty defaults, the Fund’s loss will consist of the net amount of contractual payments that the Fund has not yet received. Market risk is the risk that the value of the contract will depreciate due to unfavorable changes in the reference asset. If there is an illiquid market for the agreement, the Fund may be unable to close the contract prior to contract termination.
Credit Default Swap Contracts. A credit default swap is a bilateral contract that enables an investor to buy or sell protection against a defined-issuer credit event. The Fund may enter into credit default swaps on a single security, or a basket of securities.
In a credit default swap contract, the purchaser of the contract will pay a periodic interest fee, similar to an insurance premium, on the notional amount of the swap contract to the counterparty (the seller of the contract). If there is a credit event (for example, bankruptcy or a failure to timely pay interest or principal), the purchaser will exercise the contract and will receive a payment from the seller of the contract equal to the notional value of the credit default swap contract less the value of the underlying security. In the event that the credit default swap is exercised due to a credit event, the difference between the value of the underlying security and the notional amount is recorded as realized gain (loss) and is included on the Statement of Operations.
Risks of credit default swaps include, but are not limited to, the cost of paying for credit protection if there are no credit events, or the cost of selling protection (paying the notional amount) when a credit event occurs, pricing transparency when assessing the cost of a credit default swap, and the need to fund the delivery obligation (either cash or defaulted securities).
Interest Rate Swap Contracts. An interest rate swap is an agreement between counterparties to exchange periodic interest payments on the notional amount of the contract. One cash flow stream will typically be a floating rate payment based upon a specified index while the other is typically a fixed rate.
Interest rate swap agreements include interest rate risk. There is a risk, based on future movements of interest rates where the payments made by the Fund under a swap agreement will be greater than the payments it received.
Total Return Swap Contracts. A total return swap is an agreement between counterparties to exchange a set of future cash flows on the notional amount of the contract. One cash flow is typically based on a reference interest rate or index and the other on the total return of a reference asset such as a security, a basket of securities, or an index. The total return includes appreciation or depreciation on the reference asset, plus any interest or dividend payments.
37 | OPPENHEIMER SMA INTERNATIONAL BOND FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
9. Illiquid or Restricted Securities
As of March 31, 2008, investments in securities included issues that are illiquid or restricted. Investments may be illiquid because they do not have an active trading market, making it difficult to value them or dispose of them promptly at an acceptable price. A restricted security may have a contractual restriction on its resale and is valued under methods approved by the Board of Trustees as reflecting fair value. The Fund will not invest more than 15% of its net assets (determined at the time of purchase and reviewed periodically) in illiquid and restricted securities. Certain restricted securities, eligible for resale to qualified institutional purchasers, may not be subject to that limitation. Securities that are illiquid or restricted are marked with an applicable footnote on the Statement of Investments. Restricted securities are reported on a schedule following the Statement of Investments.
As of March 31, 2008, investments in securities included issues that are illiquid or restricted. Investments may be illiquid because they do not have an active trading market, making it difficult to value them or dispose of them promptly at an acceptable price. A restricted security may have a contractual restriction on its resale and is valued under methods approved by the Board of Trustees as reflecting fair value. The Fund will not invest more than 15% of its net assets (determined at the time of purchase and reviewed periodically) in illiquid and restricted securities. Certain restricted securities, eligible for resale to qualified institutional purchasers, may not be subject to that limitation. Securities that are illiquid or restricted are marked with an applicable footnote on the Statement of Investments. Restricted securities are reported on a schedule following the Statement of Investments.
10. Unfunded Purchase Commitments
Pursuant to the terms of certain indenture agreements, the Fund has unfunded purchase commitments of $127,273 at March 31, 2008. The Fund generally will maintain with its custodian, liquid investments having an aggregate value at least equal to the amount of unfunded purchase commitments. The following commitments are subject to funding based on the borrower’s discretion. The Fund is obligated to fund these commitments at the time of the request by the borrower. These commitments have been excluded from the Statement of Investments.
As of March 31, 2008, the Fund had unfunded purchase commitments as follows:
Pursuant to the terms of certain indenture agreements, the Fund has unfunded purchase commitments of $127,273 at March 31, 2008. The Fund generally will maintain with its custodian, liquid investments having an aggregate value at least equal to the amount of unfunded purchase commitments. The following commitments are subject to funding based on the borrower’s discretion. The Fund is obligated to fund these commitments at the time of the request by the borrower. These commitments have been excluded from the Statement of Investments.
As of March 31, 2008, the Fund had unfunded purchase commitments as follows:
| Commitment | ||||||||
| Termination | Unfunded | |||||||
| Date | Amount | |||||||
| Deutsche Bank AG, Optic | ||||||||
| Reforma Credit Linked Nts. | 10/20/13 | $ | 127,273 | |||||
11. Recent Accounting Pronouncement
In September 2006, Financial Accounting Standards Board (“FASB”) 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 March 31, 2008, 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.
In September 2006, Financial Accounting Standards Board (“FASB”) 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 March 31, 2008, 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.
38 | OPPENHEIMER SMA INTERNATIONAL BOND FUND
PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES; UPDATES TO STATEMENTS OF INVESTMENTS Unaudited
The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which the Fund votes proxies relating to securities (“portfolio proxies”) held by the Fund. A description of the Fund’s Portfolio Proxy Voting Policies and Procedures is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.525.7048, (ii) on the Fund’s website at www.oppenheimerfunds.com, and (iii) on the SEC’s website at www.sec.gov. In addition, the Fund is required to file Form N-PX, with its complete proxy voting record for the 12 months ended June 30th, no later than August 31st of each year. The Fund’s voting record is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.525.7048, and (ii) in the Form N-PX filing on the SEC’s website at www.sec.gov.
The Fund files its complete schedule of portfolio holdings with the SEC for the first quarter and the third quarter of each fiscal year on Form N-Q. The Fund’s Form N-Q filings are available on the SEC’s website at http://www.sec.gov. Those forms may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
39 | OPPENHEIMER SMA INTERNATIONAL BOND FUND
Item 2. Code of Ethics.
Not applicable to semiannual reports.
Item 3. Audit Committee Financial Expert.
Not applicable to semiannual reports.
Item 4. Principal Accountant Fees and Services.
Not applicable to semiannual reports.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. Schedule of Investments.
Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
The Fund’s Governance Committee Provisions with Respect to Nominations of Directors/Trustees to the Respective Boards
| 1. | The Fund’s Governance Committee (the “Committee”) will evaluate potential Board candidates to assess their qualifications. The Committee shall have the authority, upon approval of the Board, to retain an executive search firm to assist in this effort. The Committee may consider recommendations by business and personal contacts of current Board members and by executive search firms which the Committee may engage from time to time and may also consider shareholder recommendations. The Committee may consider the advice and recommendation of the Funds’ investment manager and its affiliates in making the selection. | |
| 2. | The Committee shall screen candidates for Board membership. The Committee has not established specific qualifications that it believes must be met by a trustee nominee. In evaluating trustee nominees, the Committee considers, among other things, an individual’s background, skills, and experience; whether the individual is an “interested person” as defined in the Investment Company Act of 1940; and |
| whether the individual would be deemed an “audit committee financial expert” within the meaning of applicable SEC rules. The Committee also considers whether the individual’s background, skills, and experience will complement the background, skills, and experience of other nominees and will contribute to the Board. There are no differences in the manner in which the Committee evaluates nominees for trustees based on whether the nominee is recommended by a shareholder. | ||
| 3. | The Committee may consider nominations from shareholders for the Board at such times as the Committee meets to consider new nominees for the Board. The Committee shall have the sole discretion to determine the candidates to present to the Board and, in such cases where required, to shareholders. Recommendations for trustee nominees should, at a minimum, be accompanied by the following: |
| • | the name, address, and business, educational, and/or other pertinent background of the person being recommended; | ||
| • | a statement concerning whether the person is an “interested person” as defined in the Investment Company Act of 1940; | ||
| • | 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 | ||
| • | 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 03/31/2008, the registrant’s principal executive officer and principal financial officer found the registrant’s disclosure controls and procedures to provide reasonable assurances that information required to be disclosed by the registrant in the reports that it files under the Securities Exchange Act of 1934 (a) is accumulated and communicated to registrant’s management, including its principal executive officer and principal financial officer, to allow timely decisions regarding required disclosure, and (b) is recorded, processed, summarized and reported, within the time periods specified in the rules and forms adopted by the U.S. Securities and Exchange Commission.
There have been no changes in the registrant’s internal controls over financial reporting that occurred during the registrant’s second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Exhibits.
| (a) | (1) Not applicable to semiannual reports. | |
| (2) Exhibits attached hereto. | ||
| (3) Not applicable. | ||
| (b) | Exhibit attached hereto. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Oppenheimer SMA International Bond Fund
| By: | /s/ John V. Murphy | |||
| John V. Murphy | ||||
| Principal Executive Officer | ||||
Date: 05/14/2008
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: 05/14/2008
| By: | /s/ Brian W. Wixted | |||
| Brian W. Wixted | ||||
| Principal Financial Officer | ||||
Date: 05/14/2008