UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-07489
Oppenheimer International Growth Fund
(Exact name of registrant as specified in charter)
6803 South Tucson Way, Centennial, Colorado 80112-3924
(Address of principal executive offices)
(Zip code)
Robert G. Zack, Esq.
OppenheimerFunds, Inc.
Two World Financial Center, New York, New York 10281-1008
- --------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (303) 768-3200
--------------
Date of fiscal year end: November 30
Date of reporting period: December 1, 2002 - November 30, 2003
ITEM 1. REPORTS TO STOCKHOLDERS.
FUND PERFORMANCE DISCUSSION
How has the Fund performed? Below is a discussion by OppenheimerFunds, Inc., of
the Fund's performance during its fiscal year ended November 30, 2003, followed
by a graphical comparison of the Fund's performance to an appropriate
broad-based market index.
Management's Discussion of Fund Performance. Oppenheimer International Growth
Fund Class A shares returned 36.55% (without sales charge) for the fiscal year
ended November 30, 2003. This compares to a one-year total return of 24.22% for
its benchmark index, the Morgan Stanley Capital International (MSCI) Europe,
Australasia and Far East (EAFE) Index. The Fund considered the effect of
worldwide growth themes and sought to identify well-managed, reasonably valued
companies that may benefit from these investment themes.
Adherence to the Fund's growth principles greatly benefited performance
during the period. Entering our current fiscal year (which began in December of
2002), the Fund's long-term, growth oriented investment style was at odds with
the highly risk averse, short-term style favored by many investors during that
time. However, we did not abandon our style, but instead used the negative
sentiment to re-acquire well-managed Internet, media and communications
equipment stocks at very attractive prices. Those stocks, along with other
growth stocks in the portfolio provided a strong catalyst once uncertainty over
the war with Iraq dissipated. Indeed, we were able to fully capture the early
gains in the market rally, rather than play catch-up after it was clear the
market had already turned. Examples of this strategy included investments in
Spanish cable company Sogecable and Swedish telecom equipment company
Telefonaktiebolaget LM Ericsson AB.
Positions in Japanese financial stocks, namely banking companies UFJ
Holdings, Inc. and Mitsubishi Tokyo Financial Group, Inc., also worked to the
Fund's advantage. Most Japanese financial shares reacted positively to news that
the non-performing loan problem was abating. Non-performing loans have been a
major problem for the Japanese financial system since the collapse of asset
prices, particularly property, after the market peaked in 1989. Like their
European counterparts, Japanese technology and media stocks also bolstered
returns, as evidenced by strong gains from Yahoo Japan Corp., an Internet
company and Canon, Inc., whose growth is being driven by digital cameras and
copiers.
Meanwhile, selective exposure to emerging market stocks, predominantly within
the higher-quality markets of Brazil and India, added to the Fund's
outperformance. Brazilian aircraft manufacturer Empresa Brasileira de
Aeronautica SA (Embraer) is well positioned to profit from rising global demand
for regional jets. At the same time, Indian IT leader Infosys Technologies Ltd.
has assumed a leadership role in offshore technology outsourcing.
6 | OPPENHEIMER INTERNATIONAL GROWTH FUND
Weakness at the sector level proved to be the principal detractor from
performance, with the most notable laggards being healthcare and consumer
staples. In light of their defensive nature, these groups did not fully
participate in a rally driven primarily by economically sensitive sectors such
as information technology and financials.
Country, sector and market capitalization weightings were the result of
individual stock selection and do not reflect predetermined target allocations.
The Fund's holdings, allocations, management, and strategies are subject to
change. Investing in foreign securities poses additional risks, such as currency
fluctuations and higher expenses.
Comparing the Fund's Performance to the Market. The graphs that follow show the
performance of a hypothetical $10,000 investment in each class of shares of the
Fund held until November 30, 2003. In case Class A, Class B and Class C shares,
performance is measured since the inception of the Fund on March 25, 1996. In
the case of Class N shares, performance is measured from inception of the class
on March 1, 2001. The Fund's performance reflects the deduction of the maximum
initial sales charge on Class A shares, the applicable contingent deferred sales
charge on Class B, Class C and Class N shares, and reinvestments of all
dividends and capital gains distributions.
The Fund's performance is compared to the performance of the Morgan Stanley
Capital International EAFE (Europe, Australasia, Far East) Index, which is a
free float-adjusted market capitalization index that is designed to measure
developed market equity performance, excluding the US & Canada.
Index performance reflects the reinvestment of income but does not consider
the effect of transaction costs, and none of the data in the graphs that follow
shows the effect of taxes. The Fund's performance reflects the effects of Fund
business and operating expenses. While index comparisons may be useful to
provide a benchmark for the Fund's performance, it must be noted that the Fund's
investments are not limited to the investments in the index.
7 | OPPENHEIMER INTERNATIONAL GROWTH FUND
FUND PERFORMANCE DISCUSSION
Class A Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer International Growth Fund (Class A)
MSCI EAFE Index
[LINE CHART]
Value of Investment Morgan Stanley EAFE
Date In Fund (Europe Australasia & Far East Index)
03/25/1996 9,425 10,000
05/31/1996 9,849 10,106
08/31/1996 10,085 9,895
11/30/1996 11,065 10,462
02/28/1997 12,026 10,136
05/31/1997 13,082 10,900
08/31/1997 13,261 10,821
11/30/1997 13,544 10,449
02/28/1998 14,375 11,737
05/31/1998 16,634 12,143
08/31/1998 14,040 10,836
11/30/1998 14,461 12,202
02/28/1999 14,467 12,353
05/31/1999 14,935 12,709
08/31/1999 16,136 13,656
11/30/1999 19,567 14,816
02/29/2000 28,739 15,536
05/31/2000 22,865 14,924
08/31/2000 25,519 14,996
11/30/2000 20,335 13,415
02/28/2001 20,242 12,848
05/31/2001 19,951 12,396
08/31/2001 16,993 11,385
11/30/2001 16,151 10,884
02/28/2002 15,808 10,441
05/31/2002 16,425 11,241
08/31/2002 13,350 9,713
11/30/2002 12,592 9,555
02/28/2003 10,621 8,647
05/31/2003 12,776 9,899
08/31/2003 14,865 10,643
11/30/2003 17,195 11,919
Average Annual Total Return of Class A Shares of the Fund at 11/30/03
1 Year 28.70% 5 Year 2.30% Since Inception 7.31%
Class B Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer International Growth Fund (Class B)
MSCI EAFE Index
[LINE CHART]
Value of Investment Morgan Stanley EAFE
Date In Fund (Europe Australasia & Far East Index)
03/25/1996 10,000 10,000
05/31/1996 10,420 10,106
08/31/1996 10,640 9,895
11/30/1996 11,650 10,462
02/28/1997 12,630 10,136
05/31/1997 13,720 10,900
08/31/1997 13,890 10,821
11/30/1997 14,150 10,449
02/28/1998 14,992 11,737
05/31/1998 17,318 12,143
08/31/1998 14,586 10,836
11/30/1998 14,992 12,202
02/28/1999 14,982 12,353
05/31/1999 15,433 12,709
08/31/1999 16,636 13,656
11/30/1999 20,137 14,816
02/29/2000 29,521 15,536
05/31/2000 23,443 14,924
08/31/2000 26,113 14,996
11/30/2000 20,773 13,415
02/28/2001 20,630 12,848
05/31/2001 20,299 12,396
08/31/2001 17,252 11,385
11/30/2001 16,362 10,884
02/28/2002 15,986 10,441
05/31/2002 16,617 11,241
08/31/2002 13,506 9,713
11/30/2002 12,739 9,555
02/28/2003 10,745 8,647
05/31/2003 12,925 9,899
08/31/2003 15,039 10,643
11/30/2003 17,396 11,919
Average Annual Total Return of Class B Shares of the Fund at 11/30/03
1 Year 30.49% 5 Year 2.38% Since Inception 7.47%
*See Notes on page 10 for further details.
8 | OPPENHEIMER INTERNATIONAL GROWTH FUND
Class C Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer International Growth Fund (Class C)
MSCI EAFE Index
[LINE CHART]
Value of Investment Morgan Stanley EAFE
Date In Fund (Europe Australasia & Far East Index)
03/25/1996 10,000 10,000
05/31/1996 10,420 10,106
08/31/1996 10,650 9,895
11/30/1996 11,660 10,462
02/28/1997 12,650 10,136
05/31/1997 13,730 10,900
08/31/1997 13,900 10,821
11/30/1997 14,170 10,449
02/28/1998 15,012 11,737
05/31/1998 17,338 12,143
08/31/1998 14,606 10,836
11/30/1998 15,012 12,202
02/28/1999 15,003 12,353
05/31/1999 15,454 12,709
08/31/1999 16,657 13,656
11/30/1999 20,158 14,816
02/29/2000 29,563 15,536
05/31/2000 23,475 14,924
08/31/2000 26,145 14,996
11/30/2000 20,794 13,415
02/28/2001 20,662 12,848
05/31/2001 20,331 12,396
08/31/2001 17,273 11,385
11/30/2001 16,395 10,884
02/28/2002 16,018 10,441
05/31/2002 16,600 11,241
08/31/2002 13,474 9,713
11/30/2002 12,687 9,555
02/28/2003 10,669 8,647
05/31/2003 12,821 9,899
08/31/2003 14,893 10,643
11/30/2003 17,183 11,919
Average Annual Total Return of Class C Shares of the Fund at 11/30/03
1 Year 34.44% 5 Year 2.74% Since Inception 7.30%
Class N Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer International Growth Fund (Class N)
MSCI EAFE Index
[LINE CHART]
Value of Investment Morgan Stanley EAFE
Date In Fund (Europe Australasia & Far East Index)
03/01/2001 10,000 10,000
05/31/2001 9,856 9,648
08/31/2001 8,388 8,861
11/30/2001 7,967 8,471
02/28/2002 7,794 8,126
05/31/2002 8,090 8,749
08/31/2002 6,576 7,560
11/30/2002 6,200 7,437
02/28/2003 5,219 6,730
05/31/2003 6,280 7,704
08/31/2003 7,302 8,284
11/30/2003 8,433 9,277
Average Annual Total Return of Class N Shares of the Fund at 11/30/03
1 Year 35.01% Since Inception -6.02%
The performance information for the MSCI EAFE Index in the graphs begins on
3/31/96 for Class A, Class B and Class C, and on 2/28/01 for Class N shares.
Past performance cannot guarantee future results. Graphs are not drawn to same
scale.
9 | OPPENHEIMER INTERNATIONAL GROWTH FUND
NOTES
In reviewing performance and rankings, please remember that past performance
cannot guarantee future results. Investment return and principal value of an
investment in the Fund will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than the original cost. Because of ongoing
market volatility, the Fund's performance may be subject to substantial
fluctuations, and current performance may be more or less than the results
shown. For updates on the Fund's performance, visit our website at
www.oppenheimerfunds.com.
Total returns and the ending account values in the graphs include changes in
share price and reinvestment of dividends and capital gains distributions in a
hypothetical investment for the periods shown. The Fund's total returns shown do
not reflect the deduction of income taxes on an individual's investment. Taxes
may reduce your actual investment returns on income or gains paid by the Fund or
any gains you may realize if you sell your shares. For more complete information
about the Fund, including charges, expenses and risks, please refer to the
prospectus. To obtain a copy, call your financial advisor, call OppenheimerFunds
Distributor, Inc. at 1.800.CALL OPP (1.800.225.5677) or visit the
OppenheimerFunds website at www.oppenheimerfunds.com. Read the prospectus
carefully before you invest or send money.
Class A shares of the Fund were first publicly offered on 3/25/96. Unless
otherwise noted, Class A returns include the maximum initial sales charge of
5.75%.
Class B shares of the Fund were first publicly offered on 3/25/96. Unless
otherwise noted, Class B returns include the applicable contingent deferred
sales charge of 5% (1-year) and 2% (5-year). Because Class B shares convert to
Class A shares 72 months after purchase, the "since inception" return for Class
B uses Class A performance for the period after conversion. Class B shares are
subject to an annual 0.75% asset-based sales charge.
Class C shares of the Fund were first publicly offered on 3/25/96. Unless
otherwise noted, Class C returns include the contingent deferred sales charge of
1% for the 1-year period. Class C shares are subject to an annual 0.75%
asset-based sales charge.
Class N shares of the Fund were first publicly offered on 3/1/01. Class N shares
are offered only through retirement plans. Unless otherwise noted, Class N
returns include the contingent deferred sales charge of 1% for the 1-year
period. Class N shares are subject to an annual 0.25% asset-based sales charge.
An explanation of the calculation of performance is in the Fund's Statement of
Additional Information.
10 | OPPENHEIMER INTERNATIONAL GROWTH FUND
STATEMENT OF INVESTMENTS November 30, 2003
Market Value
Shares See Note 1
- ------------------------------------------------------------------------------
Common Stocks--96.3%
- ------------------------------------------------------------------------------
Consumer Discretionary--14.8%
- ------------------------------------------------------------------------------
Auto Components--1.4%
Continental AG 335,665 $ 11,668,489
- ------------------------------------------------------------------------------
Automobiles--0.6%
Porsche AG, Preferred 8,944 4,626,187
- ------------------------------------------------------------------------------
Distributors--0.4%
Medion AG 83,981 3,281,778
- ------------------------------------------------------------------------------
Household Durables--1.6%
Groupe SEB SA 43,059 5,254,390
- ------------------------------------------------------------------------------
Thomson SA 396,970 8,403,476
--------------
13,657,866
- ------------------------------------------------------------------------------
Internet & Catalog Retail--1.1%
LG Home
Shopping, Inc. 207,880 9,667,228
- ------------------------------------------------------------------------------
Media--6.9%
British Sky
Broadcasting
Group plc 1 342,639 3,971,799
- ------------------------------------------------------------------------------
Grupo Televisa SA,
Sponsored GDR 137,200 5,604,621
- ------------------------------------------------------------------------------
Mediaset SpA 760,000 8,618,175
- ------------------------------------------------------------------------------
News Corp. Ltd. (The) 617,789 5,270,509
- ------------------------------------------------------------------------------
Societe Television
Francaise 1 249,860 8,071,719
- ------------------------------------------------------------------------------
Sogecable SA 1 225,700 6,736,612
- ------------------------------------------------------------------------------
Vivendi Universal SA 1 560,670 12,870,241
- ------------------------------------------------------------------------------
Zee Telefilms Ltd. 2,339,700 6,624,976
--------------
57,768,652
- ------------------------------------------------------------------------------
Specialty Retail--1.8%
Hennes & Mauritz
AB (H&M), B Shares 345,900 8,079,744
- ------------------------------------------------------------------------------
New Dixons
Group plc 3,108,555 7,297,630
--------------
15,377,374
- ------------------------------------------------------------------------------
Textiles, Apparel & Luxury Goods--1.0%
Luxottica Group SpA 471,700 8,283,503
- ------------------------------------------------------------------------------
Consumer Staples--3.9%
- ------------------------------------------------------------------------------
Beverages--2.1%
Foster's Group Ltd. 1,564,295 4,980,465
- ------------------------------------------------------------------------------
Pernod-Ricard SA 120,160 12,768,774
--------------
17,749,239
Market Value
Shares See Note 1
- ------------------------------------------------------------------------------
Food & Staples Retailing--1.0%
Carrefour SA 116,050 $ 6,252,956
- ------------------------------------------------------------------------------
Woolworths Ltd. 255,600 2,097,357
--------------
8,350,313
- ------------------------------------------------------------------------------
Food Products--0.8%
Cadbury
Schweppes plc 598,060 3,810,865
- ------------------------------------------------------------------------------
Parmalat
Finanziaria SpA 1,050,244 2,882,944
--------------
6,693,809
- ------------------------------------------------------------------------------
Energy--1.0%
- ------------------------------------------------------------------------------
Energy Equipment & Services--0.4%
Technip-Coflexip SA 33,580 3,612,648
- ------------------------------------------------------------------------------
Oil & Gas--0.6%
Tsakos Energy
Navigation Ltd. 287,200 4,577,968
- ------------------------------------------------------------------------------
Financials--15.5%
- ------------------------------------------------------------------------------
Commercial Banks--8.4%
ABN Amro
Holding NV 189,300 4,166,140
- ------------------------------------------------------------------------------
Anglo Irish Bank
Corp 1,767,515 23,941,541
- ------------------------------------------------------------------------------
ICICI Bank Ltd.,
Sponsored ADR 689,900 9,175,670
- ------------------------------------------------------------------------------
Mitsubishi Tokyo
Financial Group, Inc. 1,683 12,570,252
- ------------------------------------------------------------------------------
Royal Bank of
Scotland Group
plc (The) 152,660 4,261,224
- ------------------------------------------------------------------------------
Societe Generale,
Cl. A 109,830 8,794,436
- ------------------------------------------------------------------------------
UFJ Holdings,
Inc. 1 1,714 7,324,251
--------------
70,233,514
- ------------------------------------------------------------------------------
Diversified Financial Services--5.7%
3i Group plc 1,275,471 13,359,140
- ------------------------------------------------------------------------------
Ackermans &
van Haaren NV 147,642 3,167,915
- ------------------------------------------------------------------------------
Collins Stewart
Tullett plc 2,126,861 16,460,470
- ------------------------------------------------------------------------------
MLP AG 1 790,035 14,868,136
--------------
47,855,661
11 | OPPENHEIMER INTERNATIONAL GROWTH FUND
STATEMENT OF INVESTMENTS Continued
Market Value
Shares See Note 1
- ------------------------------------------------------------------------------
Real Estate--1.0%
Solidere, GDR 2 877,092 $ 4,319,678
- ------------------------------------------------------------------------------
Sumitomo Realty &
Development Co. Ltd. 560,000 4,366,691
--------------
8,686,369
- ------------------------------------------------------------------------------
Thrifts & Mortgage Finance--0.4%
Housing Development
Finance Corp. Ltd. 265,500 3,204,330
- ------------------------------------------------------------------------------
Health Care--16.4%
- ------------------------------------------------------------------------------
Health Care Equipment & Supplies--1.4%
Art Advanced
Research
Technologies, Inc. 1,3,4 1,901,125 4,753,178
- ------------------------------------------------------------------------------
Essilor International
SA 83,170 4,146,352
- ------------------------------------------------------------------------------
Ortivus AB, B Shares 1,4 710,800 2,963,195
--------------
11,862,725
- ------------------------------------------------------------------------------
Health Care Providers & Services--0.4%
Nicox SA 1 850,949 3,876,124
- ------------------------------------------------------------------------------
Pharmaceuticals--14.6%
AstraZeneca plc 128,760 5,844,010
- ------------------------------------------------------------------------------
Aventis SA 92,350 5,330,203
- ------------------------------------------------------------------------------
Biovail Corp. 1 64,500 1,209,375
- ------------------------------------------------------------------------------
Dr. Reddy's
Laboratories Ltd.,
Sponsored ADR 265,900 7,445,200
- ------------------------------------------------------------------------------
Fujisawa
Pharmaceutical
Co. Ltd. 153,000 2,856,875
- ------------------------------------------------------------------------------
GlaxoSmithKline plc 277,345 6,253,363
- ------------------------------------------------------------------------------
H. Lundbeck AS 230,100 3,614,660
- ------------------------------------------------------------------------------
Marshall Edwards,
Inc. 1,3 1,750,000 15,048,689
- ------------------------------------------------------------------------------
NeuroSearch AS 1 273,200 7,350,949
- ------------------------------------------------------------------------------
Novogen Ltd. 1,4 6,323,015 32,988,156
- ------------------------------------------------------------------------------
Pliva d.d., GDR 2 221,950 3,493,493
- ------------------------------------------------------------------------------
Sanofi-Synthelabo SA 99,420 6,733,374
- ------------------------------------------------------------------------------
Schering AG 122,691 6,176,928
- ------------------------------------------------------------------------------
Shionogi & Co. Ltd. 457,000 7,556,857
- ------------------------------------------------------------------------------
SkyePharma plc 1 6,771,550 8,792,769
- ------------------------------------------------------------------------------
Takeda Chemical
Industries Ltd. 48,000 1,840,760
--------------
122,535,661
Market Value
Shares See Note 1
- ------------------------------------------------------------------------------
Industrials--16.5%
- ------------------------------------------------------------------------------
Aerospace & Defense--4.7%
Empresa Brasileira
de Aeronautica SA
(Embraer), Preference 5,488,546 $ 39,855,746
- ------------------------------------------------------------------------------
Air Freight & Logistics--0.2%
Sinotrans Ltd. 4,200,000 1,919,833
- ------------------------------------------------------------------------------
Commercial Services & Supplies--3.2%
BTG plc 1 2,499,460 8,382,459
- ------------------------------------------------------------------------------
Buhrmann NV 1,105,458 8,401,214
- ------------------------------------------------------------------------------
Prosegur Compania
de Seguridad SA 205,149 3,368,996
- ------------------------------------------------------------------------------
Randstad Holding NV 342,500 6,835,737
--------------
26,988,406
- ------------------------------------------------------------------------------
Construction & Engineering--2.3%
Koninklijke Boskalis
Westminster NV 703,061 17,428,263
- ------------------------------------------------------------------------------
Leighton
Holdings Ltd. 270,439 2,273,914
--------------
19,702,177
- ------------------------------------------------------------------------------
Electrical Equipment--1.5%
Ushio, Inc. 787,000 12,402,867
- ------------------------------------------------------------------------------
Industrial Conglomerates--3.2%
Aalberts
Industries NV 1,037,153 26,480,915
- ------------------------------------------------------------------------------
Machinery--1.4%
GSI Lumonics, Inc. 1 203,400 2,145,870
- ------------------------------------------------------------------------------
Halma plc 521,316 1,219,356
- ------------------------------------------------------------------------------
Hyundai Heavy
Industries Co. Ltd. 1 259,846 8,192,807
--------------
11,558,033
- ------------------------------------------------------------------------------
Information Technology--22.0%
- ------------------------------------------------------------------------------
Communications Equipment--2.1%
Nokia Oyj 225,800 4,068,117
- ------------------------------------------------------------------------------
Telefonaktiebolaget
LM Ericsson AB, B
Shares 1 8,262,900 13,341,192
--------------
17,409,309
- ------------------------------------------------------------------------------
Computers & Peripherals--0.6%
Logitech
International SA 1 115,393 4,998,652
- ------------------------------------------------------------------------------
Electronic Equipment & Instruments--6.2%
Alps Electric Co. Ltd. 238,000 3,368,335
12 | OPPENHEIMER INTERNATIONAL GROWTH FUND
Market Value
Shares See Note 1
- ------------------------------------------------------------------------------
Electronic Equipment & Instruments Continued
Epcos AG 1 587,582 $ 13,403,488
- ------------------------------------------------------------------------------
Keyence Corp. 33,500 7,527,712
- ------------------------------------------------------------------------------
Nippon Electric
Glass Co. Ltd. 340,000 6,364,134
- ------------------------------------------------------------------------------
Omron Corp. 553,318 10,508,596
- ------------------------------------------------------------------------------
Tandberg ASA 1 1,583,700 11,488,869
--------------
52,661,134
- ------------------------------------------------------------------------------
Internet Software & Services--1.6%
T-Online
International AG 1 549,744 6,932,451
- ------------------------------------------------------------------------------
Yahoo Japan Corp. 1 495 6,508,400
--------------
13,440,851
- ------------------------------------------------------------------------------
IT Services--4.5%
Amadeus Global
Travel Distribution SA 1,007,600 6,280,613
- ------------------------------------------------------------------------------
Getronics NV 1 2,822,400 5,819,123
- ------------------------------------------------------------------------------
Infosys
Technologies Ltd. 96,794 10,414,290
- ------------------------------------------------------------------------------
NIIT Ltd. 1,208,400 5,706,700
- ------------------------------------------------------------------------------
NTT Data Corp. 1,221 4,481,757
- ------------------------------------------------------------------------------
United Internet AG 219,317 5,152,748
--------------
37,855,231
- ------------------------------------------------------------------------------
Office Electronics--2.3%
Canon, Inc. 239,000 11,042,184
- ------------------------------------------------------------------------------
Konica Minolta
Holdings, Inc. 676,000 7,999,416
--------------
19,041,600
- ------------------------------------------------------------------------------
Semiconductors & Semiconductor Equipment--3.0%
ASM
International NV 1 752,700 14,248,611
- ------------------------------------------------------------------------------
Jenoptik AG 1,043,368 11,093,579
--------------
25,342,190
- ------------------------------------------------------------------------------
Software--1.7%
UBI Soft
Entertainment SA 1 272,336 8,438,712
- ------------------------------------------------------------------------------
Unit 4 Agresso NV 1 590,830 6,303,229
--------------
14,741,941
Market Value
Shares See Note 1
- ------------------------------------------------------------------------------
Materials--1.2%
- ------------------------------------------------------------------------------
Metals & Mining--1.2%
Companhia Vale do
Rio Doce,
Sponsored ADR 260,400 $ 10,124,352
- ------------------------------------------------------------------------------
Telecommunication Services--5.0%
- ------------------------------------------------------------------------------
Diversified Telecommunication Services--0.7%
BT Group plc 631,890 1,888,239
- ------------------------------------------------------------------------------
Videsh Sanchar
Nigam Ltd. 1,320,000 3,891,938
--------------
5,780,177
- ------------------------------------------------------------------------------
Wireless Telecommunication Services--4.3%
KDDI Corp. 2,495 13,008,081
- ------------------------------------------------------------------------------
SK Telecom Co. Ltd. 20,100 3,243,958
- ------------------------------------------------------------------------------
Telecom Italia
Mobile SpA 744,900 3,830,591
- ------------------------------------------------------------------------------
Vodafone Group plc 7,086,390 16,270,351
--------------
36,352,981
--------------
Total Common Stocks
(Cost $683,825,866) 810,225,833
- ------------------------------------------------------------------------------
Preferred Stocks--1.0%
Ceres, Inc.:
$4.00 Cv., Series C-1 1,3 44,515 289,348
Cv., Series C 1,3 600,000 3,900,000
Cv., Series D 1,3 418,000 2,717,000
- ------------------------------------------------------------------------------
Oxagen Ltd., Cv. 1,3 2,142,875 1,289,898
--------------
Total Preferred Stocks
(Cost $7,296,760) 8,196,246
Units
- ------------------------------------------------------------------------------
Rights, Warrants and Certificates--0.0%
Ceres Group, Inc.:
Series C Wts.,
Exp. 8/28/06 1,3 20,032 --
Series D Wts.,
Exp. 12/31/30 1,3 41,800 --
- ------------------------------------------------------------------------------
UBI Soft
Entertainment SA
Wts., Exp. 5/14/06 1 603,021 390,334
--------------
Total Rights, Warrants
and Certificates (Cost $0) 390,334
13 | OPPENHEIMER INTERNATIONAL GROWTH FUND
STATEMENT OF INVESTMENTS Continued
Principal Market Value
Amount See Note 1
- ------------------------------------------------------------------------------
Joint Repurchase Agreements--2.5%
Undivided interest of 7.81% in joint
repurchase agreement (Principal Amount/
Market Value $269,201,000, with a maturity
value of $269,223,658) with Banc One Capital
Markets, Inc., 1.01%, dated 11/28/03, to be
repurchased at $21,034,770 on 12/1/03,
collateralized by U.S. Treasury Bonds,
7.25%--12%, 8/15/13--8/15/22, with a value
of $29,442,516 and U.S. Treasury Nts.,
1.50%--7.875%, 2/15/04--2/15/10,
with a value of $245,568,795
(Cost $21,033,000) $21,033,000 $ 21,033,000
Market Value
See Note 1
- ------------------------------------------------------------------------------
Total Investments,
at Value
(Cost $712,155,626) 99.8% $839,845,413
- ------------------------------------------------------------------------------
Other Assets
Net of Liabilities 0.2 1,315,980
---------------------------
Net Assets 100.0% $841,161,393
===========================
Footnotes to Statement of Investments
1. Non-income producing security.
2. 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 $7,813,171 or 0.93% of the Fund's net
assets as of November 30, 2003.
3. Identifies issues considered to be illiquid or restricted. See Note 6 of
Notes to Financial Statements.
4. Affiliated company. Represents ownership of at least 5% of the voting
securities of the issuer, and is or was an affiliate, as defined in the
Investment Company Act of 1940, at or during the period ended November 30, 2003.
The aggregate fair value of securities of affiliated companies held by the Fund
as of November 30, 2003 amounts to $40,704,529. Transactions during the period
in which the issuer was an affiliate are as follows:
Unrealized
Shares Gross Gross Shares Appreciation Realized
Nov. 30, 2002 Additions Reductions Nov. 30, 2003 (Depreciation) Loss
- ------------------------------------------------------------------------------------------------------------
Stocks and/or Warrants
Art Advanced Research
Technologies, Inc. 1,901,125 -- -- 1,901,125 $(2,746,822) $ --
Magnus Holding NV 1,206,580 1,043,300 2,249,880 -- -- 4,965,742
Novogen Ltd. 6,549,983 158,100 385,068 6,323,015 23,992,211 71,793
Ortivus AB, B Shares 698,400 26,800 14,400 710,800 (5,396,900) 278,606
Oxagen Ltd., Cv.* 1,250,000 892,875 -- 2,142,875 -- --
UBI Soft Entertainment SA* 938,841 -- 666,505 272,336 -- 9,656,872
-------------------------
$15,848,489 $14,973,013
=========================
<FN>
* No longer an affiliate as of November 30, 2003.
</FN>
14 | OPPENHEIMER INTERNATIONAL GROWTH FUND
Distribution of investments representing geographic holdings, as a percentage
of total investments at value, is as follows:
Geographic Holdings Market Value Percent
- -----------------------------------------------------------------------
Japan $119,727,168 14.3%
Great Britain 99,101,573 11.8
France 94,943,739 11.3
The Netherlands 89,683,232 10.7
Germany 77,203,784 9.2
Australia 62,659,090 7.5
Brazil 49,980,098 6.0
India 46,463,104 5.3
United States 29,148,723 3.5
Sweden 24,384,131 2.9
Ireland 23,941,541 2.9
Italy 23,615,213 2.8
Korea, Republic of South 21,103,993 2.5
Spain 16,386,221 2.0
Norway 16,066,837 1.9
Denmark 10,965,609 1.3
Canada 6,899,048 0.8
Mexico 5,604,621 0.7
Switzerland 4,998,652 0.6
Lebanon 4,319,678 0.5
Finland 4,068,117 0.5
Croatia 3,493,493 0.4
Belgium 3,167,915 0.4
China 1,919,833 0.2
------------------------------
Total $839,845,413 100.0%
==============================
See accompanying Notes to Financial Statements.
15 | OPPENHEIMER INTERNATIONAL GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES November 30, 2003
- --------------------------------------------------------------------------------------------------
Assets
Investments, at value--see accompanying statement:
Unaffiliated companies (cost $687,299,586) $ 799,140,884
Affiliated companies (cost $24,856,040) 40,704,529
----------------
839,845,413
- -------------------------------------------------------------------------------------------------
Receivables and other assets:
Investments sold 8,186,586
Shares of beneficial interest sold 2,038,116
Interest and dividends 827,560
Other 586
----------------
Total assets 850,898,261
- -------------------------------------------------------------------------------------------------
Liabilities
Bank overdraft 2,130,220
- -------------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 5,298,139
Shares of beneficial interest redeemed 1,295,264
Distribution and service plan fees 328,212
Transfer and shareholder servicing agent fees 228,292
Shareholder reports 210,201
Trustees' compensation 159,121
Other 87,419
----------------
Total liabilities 9,736,868
- -------------------------------------------------------------------------------------------------
Net Assets $ 841,161,393
================
- -------------------------------------------------------------------------------------------------
Composition of Net Assets
Paid-in capital $1,099,786,533
- -------------------------------------------------------------------------------------------------
Overdistributed net investment income (4,665,046)
- -------------------------------------------------------------------------------------------------
Accumulated net realized loss on investments and foreign currency transactions (381,677,390)
- -------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of assets and
liabilities denominated in foreign currencies 127,717,296
----------------
Net Assets $ 841,161,393
================
16 | OPPENHEIMER INTERNATIONAL GROWTH FUND
- ------------------------------------------------------------------------------------------------
Net Asset Value Per Share
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$528,362,591 and 33,619,499 shares of beneficial interest outstanding) $15.72
Maximum offering price per share (net asset value plus sales charge of 5.75% of
offering price) $16.68
- ------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $174,959,488
and 11,667,335 shares of beneficial interest outstanding) $15.00
- ------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $116,659,190
and 7,773,560 shares of beneficial interest outstanding) $15.01
- ------------------------------------------------------------------------------------------------
Class N Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $21,180,124
and 1,365,331 shares of beneficial interest outstanding) $15.51
See accompanying Notes to Financial Statements.
17 | OPPENHEIMER INTERNATIONAL GROWTH FUND
STATEMENT OF OPERATIONS For the Year Ended November 30, 2003
- -------------------------------------------------------------------------------------------------
Investment Income
Dividends (net of foreign withholding taxes of $1,261,453) $ 10,289,857
- -------------------------------------------------------------------------------------------------
Interest 133,468
---------------
Total investment income 10,423,325
- -------------------------------------------------------------------------------------------------
Expenses
Management fees 5,003,528
- -------------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 929,840
Class B 1,487,996
Class C 904,573
Class N 73,498
- -------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 3,020,016
Class B 900,472
Class C 459,280
Class N 78,524
- -------------------------------------------------------------------------------------------------
Shareholder reports 249,780
- -------------------------------------------------------------------------------------------------
Custodian fees and expenses 249,409
- -------------------------------------------------------------------------------------------------
Trustees' compensation 36,573
- -------------------------------------------------------------------------------------------------
Other 80,390
---------------
Total expenses 13,473,879
Less reduction to custodian expenses (2,123)
Less voluntary waiver of transfer and shareholder servicing agent fees--Class A (1,778,024)
Less voluntary waiver of transfer and shareholder servicing agent fees--Class B (425,286)
Less voluntary waiver of transfer and shareholder servicing agent fees--Class C (146,804)
Less voluntary waiver of transfer and shareholder servicing agent fees--Class N (25,436)
---------------
Net expenses 11,096,206
- -------------------------------------------------------------------------------------------------
Net Investment Loss (672,881)
- -------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments:
Unaffiliated companies (196,913,773)
Affiliated companies (14,973,013)
Foreign currency transactions 58,197,059
---------------
Net realized loss (153,689,727)
- -------------------------------------------------------------------------------------------------
Net change in unrealized appreciation on:
Investments 322,851,024
Translation of assets and liabilities denominated in foreign currencies 49,826,921
---------------
Net change in unrealized appreciation 372,677,945
- -------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations $ 218,315,337
===============
See accompanying Notes to Financial Statements.
18 | OPPENHEIMER INTERNATIONAL GROWTH FUND
STATEMENTS OF CHANGES IN NET ASSETS
Year Ended November 30, 2003 2002
- -------------------------------------------------------------------------------------------------------------------------
Operations
Net investment income (loss) $ (672,881) $ 2,798,149
- -------------------------------------------------------------------------------------------------------------------------
Net realized loss (153,689,727) (140,431,293)
- -------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) 372,677,945 (85,001,129)
--------------------------------
Net increase (decrease) in net assets resulting from operations 218,315,337 (222,634,273)
- -------------------------------------------------------------------------------------------------------------------------
Dividends and/or Distributions to Shareholders
Dividends from net investment income:
Class A (3,451,367) (1,561,357)
Class B (393,792) --
Class C (280,451) --
Class N (141,834) (22,162)
- -------------------------------------------------------------------------------------------------------------------------
Beneficial Interest Transactions
Net increase (decrease) in net assets resulting from beneficial interest transactions:
Class A 35,842,844 (31,271,131)
Class B (31,008,777) (19,682,917)
Class C (2,213,224) 2,247,648
Class N 4,032,418 10,497,750
- -------------------------------------------------------------------------------------------------------------------------
Net Assets
Total increase (decrease) 220,701,154 (262,426,442)
- -------------------------------------------------------------------------------------------------------------------------
Beginning of period 620,460,239 882,886,681
--------------------------------
End of period [including undistributed (overdistributed) net
investment income of $(4,665,046) and $1,579,437, respectively] $ 841,161,393 $ 620,460,239
================================
See accompanying Notes to Financial Statements.
19 | OPPENHEIMER INTERNATIONAL GROWTH FUND
FINANCIAL HIGHLIGHTS
Class A Year Ended November 30, 2003 2002 2001 2000 1999
- --------------------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $11.63 $14.96 $19.77 $19.22 $15.11
- --------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .01 .12 .06 (.01) (.02)
Net realized and unrealized gain (loss) 4.19 (3.41) (3.93) .77 5.02
------------------------------------------------------------
Total from investment operations 4.20 (3.29) (3.87) .76 5.00
- --------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.11) (.04) -- -- (.13)
Distributions from net realized gain -- -- (.94) (.21) (.76)
------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.11) (.04) (.94) (.21) (.89)
- --------------------------------------------------------------------------------------------------------------
Net asset value, end of period $15.72 $11.63 $14.96 $19.77 $19.22
============================================================
- --------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 1 36.55% (22.04)% (20.58)% 3.92% 35.31%
- --------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $528,363 $358,097 $535,615 $478,680 $208,981
- --------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $390,315 $512,319 $536,366 $418,537 $180,719
- --------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income (loss) 0.18% 0.62% 0.62% 0.22% (0.15)%
Total expenses 1.88% 1.64% 1.42% 1.38% 1.55%
Expenses after expense reimbursement or fee
waiver and reduction to custodian expenses 1.42% 1.56% N/A 3,4 N/A 3 N/A 3
- --------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 61% 46% 33% 61% 75%
<FN>
1. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the redemption of Fund shares.
2. Annualized for periods of less than one full year.
3. Reduction to custodian expenses less than 0.01%.
4. Voluntary waiver of transfer agent fees less than 0.01%.
</FN>
See accompanying Notes to Financial Statements
20 | OPPENHEIMER INTERNATIONAL GROWTH FUND
Class B Year Ended November 30, 2003 2002 2001 2000 1999
- --------------------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $11.10 $14.34 $19.14 $18.75 $14.76
- --------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.13) (.03) (.01) (.08) (.14)
Net realized and unrealized gain (loss) 4.06 (3.21) (3.85) .68 4.92
------------------------------------------------------------
Total from investment operations 3.93 (3.24) (3.86) .60 4.78
- --------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.03) -- -- -- (.03)
Distributions from net realized gain -- -- (.94) (.21) (.76)
------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.03) -- (.94) (.21) (.79)
- --------------------------------------------------------------------------------------------------------------
Net asset value, end of period $15.00 $11.10 $14.34 $19.14 $18.75
============================================================
- --------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 1 35.49% (22.59)% (21.23)% 3.16% 34.32%
- --------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $174,959 $161,074 $230,085 $273,243 $176,021
- --------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $148,838 $200,304 $262,745 $276,393 $145,203
- --------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment loss (0.55)% (0.12)% (0.15)% (0.56)% (0.91)%
Total expenses 2.48% 2.39% 2.17% 2.14% 2.31%
Expenses after expense reimbursement or fee
waiver and reduction to custodian expenses 2.19% 2.31% N/A 3,4 N/A 3 N/A 3
- --------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 61% 46% 33% 61% 75%
<FN>
1. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the redemption of Fund shares.
2. Annualized for periods of less than one full year.
3. Reduction to custodian expenses less than 0.01%.
4. Voluntary waiver of transfer agent fees less than 0.01%.
</FN>
See accompanying Notes to Financial Statements
21 | OPPENHEIMER INTERNATIONAL GROWTH FUND
FINANCIAL HIGHLIGHTS Continued
Class C Year Ended November 30, 2003 2002 2001 2000 1999
- --------------------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $11.12 $14.37 $19.16 $18.77 $14.78
- --------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.08) (.01) -- 1 (.04) (.13)
Net realized and unrealized gain (loss) 4.01 (3.24) (3.85) .64 4.91
------------------------------------------------------------
Total from investment operations 3.93 (3.25) (3.85) .60 4.78
- --------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.04) -- -- -- (.03)
Distributions from net realized gain -- -- (.94) (.21) (.76)
------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.04) -- (.94) (.21) (.79)
- --------------------------------------------------------------------------------------------------------------
Net asset value, end of period $15.01 $11.12 $14.37 $19.16 $18.77
============================================================
- --------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 2 35.44% (22.62)% (21.16)% 3.16% 34.28%
- --------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $116,659 $ 89,456 $114,084 $113,230 $49,242
- --------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 90,532 $106,551 $122,775 $ 98,110 $39,641
- --------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment loss (0.59)% (0.12)% (0.14)% (0.53)% (0.92)%
Total expenses 2.38% 2.37% 2.17% 2.14% 2.32%
Expenses after expense reimbursement or fee
waiver and reduction to custodian expenses 2.22% 2.29% N/A 4,5 N/A 4 N/A 4
- --------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 61% 46% 33% 61% 75%
<FN>
1. Less than $0.005 per share.
2. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the redemption of Fund shares.
3. Annualized for periods of less than one full year.
4. Reduction to custodian expenses less than 0.01%.
5. Voluntary waiver of transfer agent fees less than 0.01%.
</FN>
See accompanying Notes to Financial Statements
22 | OPPENHEIMER INTERNATIONAL GROWTH FUND
Class N Year Ended November 30, 2003 2002 2001 1
- ---------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $11.55 $14.93 $18.74
- ---------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .02 .09 .01
Net realized and unrealized gain (loss) 4.08 (3.38) (3.82)
-------------------------------------
Total from investment operations 4.10 (3.29) (3.81)
- ---------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.14) (.09) --
Distributions from net realized gain -- -- --
-------------------------------------
Total dividends and/or distributions to shareholders (.14) (.09) --
- ---------------------------------------------------------------------------------------------------
Net asset value, end of period $15.51 $11.55 $14.93
=====================================
- ---------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 2 36.01% (22.18)% (20.33)%
- ---------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $21,180 $11,833 $3,102
- ---------------------------------------------------------------------------------------------------
Average net assets (in thousands) $14,722 $ 9,195 $1,152
- ---------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income (loss) (0.16)% 0.19% 0.18%
Total expenses 1.90% 1.80% 1.74%
Expenses after expense reimbursement or fee
waiver and reduction to custodian expenses 1.73% 1.72% N/A 4,5
- ---------------------------------------------------------------------------------------------------
Portfolio turnover rate 61% 46% 33%
<FN>
1. For the period from March 1, 2001 (inception of offering) to November 30,
2001.
2. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the redemption of Fund shares.
3. Annualized for periods of less than one full year.
4. Reduction to custodian expenses less than 0.01%.
5. Voluntary waiver of transfer agent fees less than 0.01%.
</FN>
See accompanying Notes to Financial Statements
23 | OPPENHEIMER INTERNATIONAL GROWTH FUND
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1. Significant Accounting Policies
Oppenheimer International Growth Fund (the Fund) is registered under the
Investment Company Act of 1940, as amended, as an open-end management
investment company. The Fund's investment objective is to seek long-term
capital appreciation. The Fund's investment advisor is OppenheimerFunds, Inc.
(the Manager).
The Fund offers Class A, Class B, Class C and Class N shares. Class A shares
are sold at their offering price, which is normally net asset value plus a
front-end sales charge. Class B, Class C and Class N shares are sold without a
front-end sales charge but may be subject to a contingent deferred sales charge
(CDSC). Class N shares are sold only through retirement plans. Retirement plans
that offer Class N shares may impose charges on those accounts. All classes of
shares have identical rights and voting privileges. Earnings, net assets and
net asset value per share may differ by minor amounts due to each class having
its own expenses directly attributable to that class. Classes A, B, C and N
have separate distribution and/or service plans. Class B shares will
automatically convert to Class A shares six years after the date of purchase.
The Fund assesses a 2% fee on the proceeds of fund shares that are redeemed
(either by selling or exchanging to another Oppenheimer fund) within 30 days of
their purchase. The fee, which is retained by the Fund, is accounted for as an
addition to paid-in capital.
The following is a summary of significant accounting policies consistently
followed by the Fund.
- --------------------------------------------------------------------------------
Securities Valuation. Securities listed or traded on National Stock Exchanges
or other domestic or foreign exchanges are valued based on the last sale price
of the security traded on that exchange prior to the time when the Fund's
assets are valued. Securities traded on NASDAQ are valued based on the closing
price provided by NASDAQ prior to the time when the Fund's assets are valued.
In the absence of a sale, the security is valued at the last sale price on the
prior trading day, if it is within the spread of the closing bid and asked
prices, and if not, at the closing bid price. Securities (including restricted
securities) for which quotations are not readily available are valued primarily
using dealer-supplied valuations, a portfolio pricing service authorized by the
Board of Trustees, or at their fair value. Fair value is determined in good
faith using consistently applied procedures under the supervision of the Board
of Trustees. Short-term "money market type" debt securities with remaining
maturities of sixty days or less are valued at amortized cost (which
approximates market value).
- --------------------------------------------------------------------------------
Foreign Currency Translation. The Fund's accounting records are maintained in
U.S. dollars. Prices of securities denominated in foreign currencies are
translated into U.S. dollars at the closing rates of exchange. Amounts related
to the purchase and sale of foreign securities and investment income are
translated at the rates of exchange prevailing on the respective dates of such
transactions.
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
24 | OPPENHEIMER INTERNATIONAL GROWTH FUND
and reported with all other foreign currency gains and losses in the Fund's
Statement of Operations.
- --------------------------------------------------------------------------------
Joint Repurchase Agreements. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the Fund, along with other affiliated funds
advised by the Manager, may transfer uninvested cash balances into joint
trading accounts on a daily basis. Secured by U.S. government securities, these
balances are invested in one or more repurchase agreements. Securities pledged
as collateral for repurchase agreements are held by a custodian bank until the
agreements mature. Each agreement requires that the market value of the
collateral be sufficient to cover payments of interest and principal. In the
event of default by the other party to the agreement, retention of the
collateral may be subject to legal proceedings.
- --------------------------------------------------------------------------------
Allocation of Income, Expenses, Gains and Losses. Income, expenses (other than
those attributable to a specific class), gains and losses are allocated on a
daily basis to each class of shares based upon the relative proportion of net
assets represented by such class. Operating expenses directly attributable to a
specific class are charged against the operations of that class.
- --------------------------------------------------------------------------------
Federal Taxes. The Fund intends to comply with provisions of the Internal
Revenue Code applicable to regulated investment companies and to distribute
substantially all of its investment company taxable income, including any net
realized gain on investments not offset by capital loss carryforwards, if any,
to shareholders, therefore, no federal income or excise tax provision is
required.
The tax components of capital shown in the table below represent distribution
requirements the Fund must satisfy under the income tax regulations, losses the
Fund may be able to offset against income and gains realized in future years
and unrealized appreciation or depreciation of securities and other investments
for federal income tax purposes.
Net Unrealized
Appreciation
Based on Cost of
Undistributed Undistributed Accumulated Securities and Other
Net Investment Long-Term Loss Investments for Federal
Income Gain Carryforward 1,2,3 Income Tax Purposes
--------------------------------------------------------------------------
$8,832,904 $-- $375,050,410 $107,747,015
1. As of November 30, 2003, the Fund had $367,266,054 of net capital loss
carryforwards available to offset future realized capital gains, if any, and
thereby reduce future taxable gain distributions. As of November 30, 2003,
details of the capital loss carryforwards were as follows:
Expiring
----------------------
2009 $ 80,843,212
2010 110,808,862
2011 175,613,980
------------
Total $367,266,054
============
2. During the fiscal years ended November 30, 2003 and November 30, 2002, the
Fund did not utilize any capital loss carryforwards.
3. As of November 30, 2003, the Fund had $7,784,356 of post-October losses
available to offset future realized capital gains, if any. Such losses, if
unutilized, will expire in 2012.
25 | OPPENHEIMER INTERNATIONAL GROWTH FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
1. Significant Accounting Policies Continued
Net investment income (loss) and net realized gain (loss) may differ for
financial statement and tax purposes. The character of dividends and
distributions made during the fiscal year from net investment income or net
realized gains may differ from their ultimate characterization for federal
income tax purposes. Also, due to timing of dividends and distributions, the
fiscal year in which amounts are distributed may differ from the fiscal year in
which the income or net realized gain was recorded by the Fund. Accordingly,
the following amounts have been reclassified for November 30, 2003. Net assets
of the Fund were unaffected by the reclassifications.
Increase Increase to Reduction to
to Paid-in Accumulated Net Accumulated Net Realized
Capital Investment Loss Loss on Investments
---------------------------------------------------------
$60,352 $1,304,158 $1,243,806
The tax character of distributions paid during the years ended November 30,
2003 and November 30, 2002 was as follows:
Year Ended Year Ended
November 30, 2003 November 30, 2002
---------------------------------------------------------------
Distributions paid from:
Ordinary income $4,267,444 $1,583,519
The aggregate cost of securities and other investments and the composition of
unrealized appreciation and depreciation of securities and other investments
for federal income tax purposes as of November 30, 2003 are noted below. The
primary difference between book and tax appreciation or depreciation of
securities and other investments, if applicable, is attributable to the tax
deferral of losses or tax realization of financial statement unrealized gain or
loss.
Federal tax cost of securities
and other investments $732,125,907
============
Gross unrealized appreciation $170,514,601
Gross unrealized depreciation (62,767,586)
------------
Net unrealized appreciation $107,747,015
============
- --------------------------------------------------------------------------------
Trustees' Compensation. The Fund has adopted an unfunded retirement plan for
the Fund's independent trustees. Benefits are based on years of service and
fees paid to each trustee during the years of service. During the year ended
November 30, 2003, the Fund's projected benefit obligations were increased by
$15,186 and payments of $6,363 were made to retired trustees, resulting in an
accumulated liability of $154,642 as of November 30, 2003.
The Board of Trustees has adopted a deferred compensation plan for
independent trustees that enables trustees to elect to defer receipt of all or
a portion of the annual compensation they are entitled to receive from the
Fund. Under the plan, deferred amounts are treated as though equal dollar
amounts had been invested in shares of the Fund or are invested in other
Oppenheimer funds selected by the Trustee. Deferral of trustees' fees under the
plan will not affect the net assets of the Fund, and will not
26 | OPPENHEIMER INTERNATIONAL GROWTH FUND
materially affect the Fund's assets, liabilities or net investment income
per share. Amounts will be deferred until distributed in accordance to the
Plan.
- --------------------------------------------------------------------------------
Dividends and Distributions to Shareholders. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations,
are recorded on the ex-dividend date. Income and capital gain distributions, if
any, are declared and paid annually.
- --------------------------------------------------------------------------------
Investment Income. Dividend income is recorded on the ex-dividend date or upon
ex-dividend notification in the case of certain foreign dividends where the
ex-dividend date may have passed. Non-cash dividends included in dividend
income, if any, are recorded at the fair market value of the securities
received. Interest income, which includes accretion of discount and
amortization of premium, is accrued as earned.
- --------------------------------------------------------------------------------
Expense Offset Arrangement. The reduction of custodian fees represents earnings
on cash balances maintained by the Fund.
- --------------------------------------------------------------------------------
Security Transactions. Security transactions are recorded on the trade date.
Realized gains and losses on securities sold are determined on the basis of
identified cost.
- --------------------------------------------------------------------------------
Other. The preparation of financial statements in conformity with 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 income and
expenses during the reporting period. Actual results could differ from those
estimates.
- --------------------------------------------------------------------------------
2. Shares of Beneficial Interest
The Fund has authorized an unlimited number of no par value shares of
beneficial interest of each class. Transactions in shares of beneficial
interest were as follows:
Year Ended November 30, 2003 Year Ended November 30, 2002
Shares Amount Shares Amount
- ----------------------------------------------------------------------------------------
Class A
Sold 40,205,063 $ 471,582,861 33,647,674 $ 459,353,682
Dividends and/or
distributions reinvested 273,353 2,963,156 72,548 1,078,074
Redeemed (37,646,102) (438,703,173) (38,737,554) (491,702,887)
-------------------------------------------------------------
Net increase (decrease) 2,832,314 $ 35,842,844 (5,017,332) $ (31,271,131)
=============================================================
- ----------------------------------------------------------------------------------------
Class B
Sold 2,549,035 $ 30,239,637 3,357,028 $ 43,682,417
Dividends and/or
distributions reinvested 32,768 341,309 -- --
Redeemed (5,425,773) (61,589,723) (4,887,846) (63,365,334)
-------------------------------------------------------------
Net decrease (2,843,970) $ (31,008,777) (1,530,818) $ (19,682,917)
=============================================================
27 | OPPENHEIMER INTERNATIONAL GROWTH FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
2. Shares of Beneficial Interest Continued
Year Ended November 30, 2003 Year Ended November 30, 2002
Shares Amount Shares Amount
- ----------------------------------------------------------------------------------------
Class C
Sold 3,339,291 $ 38,386,072 3,445,371 $ 45,475,541
Dividends and/or
distributions reinvested 21,255 221,691 -- --
Redeemed (3,631,625) (40,820,987) (3,342,511) (43,227,893)
-------------------------------------------------------------
Net increase (decrease) (271,079) $ (2,213,224) 102,860 $ 2,247,648
=============================================================
- ----------------------------------------------------------------------------------------
Class N
Sold 1,277,146 $ 14,871,049 5,337,188 $ 69,369,904
Dividends and/or
distributions reinvested 12,795 137,297 1,499 22,157
Redeemed (949,418) (10,975,928) (4,521,688) (58,894,311)
-------------------------------------------------------------
Net increase 340,523 $ 4,032,418 816,999 $ 10,497,750
=============================================================
- --------------------------------------------------------------------------------
3. Purchases and Sales of Securities
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations, for the year ended November 30, 2003, were
$390,925,428 and $408,956,961, respectively.
- --------------------------------------------------------------------------------
4. Fees and Other Transactions with Affiliates
Management Fees. Management fees paid to the Manager were in accordance with
the investment advisory agreement with the Fund which provides for a fee at an
annual rate of 0.80% of the first $250 million of average annual net assets of
the Fund, 0.77% of the next $250 million, 0.75% of the next $500 million, 0.69%
of the next $1 billion, and 0.67% of average annual net assets in excess of $2
billion.
- --------------------------------------------------------------------------------
Transfer Agent Fees. OppenheimerFunds Services (OFS), a division of the
Manager, acts as the transfer and shareholder servicing agent for the Fund. The
Fund pays OFS a per account fee. For the year ended November 30, 2003, the Fund
paid $2,196,403 to OFS for services to the Fund.
OFS has voluntarily agreed to limit transfer and shareholder servicing agent
fees for all classes, up to an annual rate of 0.35% of average net assets per
class. This undertaking may be amended or withdrawn at any time.
- --------------------------------------------------------------------------------
Distribution and Service Plan (12b-1) Fees. Under its General Distributor's
Agreement with the Manager, OppenheimerFunds Distributor, Inc. (the
Distributor) acts as the Fund's principal underwriter in the continuous public
offering of the different classes of shares of the Fund.
28 | OPPENHEIMER INTERNATIONAL GROWTH FUND
The compensation paid to (or retained by) the Distributor from the sale of
shares or on the redemption of shares is shown in the table below for the
period indicated.
Aggregate Class A Concessions Concessions Concessions Concessions
Front-End Front-End on Class A on Class B on Class C on Class N
Sales Charges Sales Charges Shares Shares Shares Shares
on Class A Retained by Advanced by Advanced by Advanced by Advanced by
Year Ended Shares Distributor Distributor 1 Distributor 1 Distributor 1 Distributor 1
- ----------------------------------------------------------------------------------------------------------------
November 30, 2003 $1,079,823 $192,617 $532,929 $540,733 $193,930 $51,806
<FN>
1. The Distributor advances concession payments to dealers for certain sales of
Class A shares and for sales of Class B, Class C and Class N shares from its
own resources at the time of sale.
</FN>
Class A Class B Class C Class N
Contingent Contingent Contingent Contingent
Deferred Deferred Deferred Deferred
Sales Charges Sales Charges Sales Charges Sales Charges
Retained by Retained by Retained by Retained by
Year Ended Distributor Distributor Distributor Distributor
- --------------------------------------------------------------------------------
November 30, 2003 $175,702 $403,610 $95,694 $33,706
- --------------------------------------------------------------------------------
Service Plan for Class A Shares. The Fund has adopted a Service Plan for Class
A shares. It reimburses the Distributor for a portion of its costs incurred for
services provided to accounts that hold Class A shares. Reimbursement is made
quarterly at an annual rate of up to 0.25% of the average annual net assets of
Class A shares of the Fund. For the year ended November 30, 2003, expense under
the Class A Plan totaled $929,840, all of which were paid by the Distributor to
recipients, which included $15,856 retained by the Distributor and $43,593
which was paid to an affiliate of the Manager. Any unreimbursed expenses the
Distributor incurs with respect to Class A shares in any fiscal year cannot be
recovered in subsequent years.
- --------------------------------------------------------------------------------
Distribution and Service Plans for Class B, Class C and Class N Shares. The
Fund has adopted Distribution and Service Plans for Class B, Class C and Class
N shares. Under the plans, the Fund pays the Distributor an annual asset-based
sales charge of 0.75% per year on Class B shares and on Class C shares and the
Fund pays the Distributor an annual asset-based sales charge of 0.25% per year
on Class N shares. The Distributor also receives a service fee of 0.25% per
year under each plan.
Distribution fees paid to the Distributor for the year ended November 30, 2003,
were as follows:
Distributor's
Distributor's Aggregate
Aggregate Uncompensated
Uncompensated Expenses as %
Total Payments Amount Retained Expenses of Net Assets
Under Plan by Distributor Under Plan of Class
- --------------------------------------------------------------------------------
Class B Plan $1,487,996 $1,075,394 $4,383,619 2.51%
Class C Plan 904,573 202,601 2,306,111 1.98
Class N Plan 73,498 59,391 168,153 0.79
29 | OPPENHEIMER INTERNATIONAL GROWTH FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
5. Foreign Currency Contracts
A foreign currency contract is a commitment to purchase or sell a foreign
currency at a future date, at a negotiated rate. The Fund may enter into
foreign currency contracts to settle specific purchases or sales of securities
denominated in a foreign currency and for protection from adverse exchange rate
fluctuation. Risks to the Fund include the potential inability of the
counterparty to meet the terms of the contract.
The net U.S. dollar value of foreign currency underlying all contractual
commitments held by the Fund and the resulting unrealized appreciation or
depreciation are determined using prevailing foreign currency exchange rates.
Unrealized appreciation and depreciation on foreign currency contracts are
reported in the Statement of Assets and Liabilities as a receivable or payable
and in the Statement of Operations with the change in unrealized appreciation
or depreciation.
The Fund may realize a gain or loss upon the closing or settlement of the
foreign transaction. Contracts closed or settled with the same broker are
recorded as net realized gain or loss. Such realized gains and losses are
reported with all other foreign currency gains and losses in the Statement of
Operations.
As of November 30, 2003, the Fund had no outstanding foreign currency
contracts.
- --------------------------------------------------------------------------------
6. Illiquid or Restricted Securities
As of November 30, 2003, investments in securities included issues that are
illiquid or restricted. Restricted securities are purchased in private
placement transactions, are not registered under the Securities Act of 1933,
may have contractual restrictions on resale, and are valued under methods
approved by the Board of Trustees as reflecting fair value. A security may also
be considered illiquid if it lacks a readily available market or if its
valuation has not changed for a certain period of time. The Fund intends to
invest no more than 10% of its net assets (determined at the time of purchase
and reviewed periodically) in illiquid or restricted securities. Certain
restricted securities, eligible for resale to qualified institutional
investors, are not subject to that limitation. The aggregate value of illiquid
or restricted securities subject to this limitation as of November 30, 2003 was
$27,998,113, which represents 3.33% of the Fund's net assets, of which
$12,949,424 is considered restricted. Information concerning restricted
securities is as follows:
Unrealized
Acquisition Valuation as of Appreciation
Security Dates Cost Nov. 30, 2003 (Depreciation)
- ------------------------------------------------------------------------------------------------
Stocks and/or Warrants
Art Advanced Research
Technologies, Inc. 6/19/01 $7,500,000 $4,753,178 $(2,746,822)
Ceres Group, Inc., Series C Wts.,
Exp. 8/28/06 10/25/01 -- -- --
Ceres Group, Inc., Series D Wts.,
Exp. 12/31/30 10/4/01 -- -- --
Ceres, Inc., $4.00 Cv., Series C-1 2/6/01 178,060 289,348 111,288
Ceres, Inc., Cv., Series C 1/6/99 2,400,000 3,900,000 1,500,000
Ceres, Inc., Cv., Series D 3/15/01 2,508,000 2,717,000 209,000
Oxagen Ltd., Cv. 12/20/00 2,210,700 1,289,898 (920,802)
30 | OPPENHEIMER INTERNATIONAL GROWTH FUND
- --------------------------------------------------------------------------------
7. Borrowing and Lending Arrangements
The Fund entered into an "interfund borrowing and lending arrangement" with
other funds in the Oppenheimer funds complex, to allow funds to borrow for
liquidity purposes. The arrangement was initiated pursuant to exemptive relief
granted by the Securities and Exchange Commission to allow these affiliated
funds to lend money to, and borrow money from, each other, in an attempt to
reduce borrowing costs below those of bank loan facilities. Under the
arrangement the Fund may lend money to other Oppenheimer funds and may borrow
from other Oppenheimer funds at a rate set by the Fund's Board of Trustees,
based upon a recommendation by the Manager. The Fund's borrowings, if any, are
subject to asset coverage requirements under the Investment Company Act and the
provisions of the SEC order and other applicable regulations. If the Fund
borrows money, there is a risk that the loan could be called on one day's
notice, in which case the Fund might have to borrow from a bank at higher rates
if a loan were not available from another Oppenheimer fund. If the Fund lends
money to another fund, it will be subject to the risk that the other fund might
not repay the loan in a timely manner, or at all.
The Fund had no interfund borrowings or loans outstanding during the year
ended or at November 30, 2003.
31 | OPPENHEIMER INTERNATIONAL GROWTH FUND
INDEPENDENT AUDITORS' REPORT
- --------------------------------------------------------------------------------
The Board of Trustees and Shareholders of
Oppenheimer International Growth Fund:
We have audited the accompanying statement of assets and liabilities of
Oppenheimer International Growth Fund, including the statement of investments,
as of November 30, 2003, and the related statement of operations for the year
then ended, the statements of changes in net assets for each of the two years
in the period then ended, and the financial highlights for each of the five
years in the period then ended. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures
included confirmation of securities owned as of November 30, 2003, by
correspondence with the custodian and brokers or by other appropriate auditing
procedures where replies from brokers were not received. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Oppenheimer International Growth Fund as of November 30, 2003, the results of
its operations for the year then ended, the changes in its net assets for each
of the two years in the period then ended, and the financial highlights for
each of the five years in the period then ended, in conformity with accounting
principles generally accepted in the United States of America.
KPMG LLP
Denver, Colorado
December 19, 2003
32 | OPPENHEIMER INTERNATIONAL GROWTH FUND
FEDERAL INCOME TAX INFORMATION Unaudited
- --------------------------------------------------------------------------------
In early 2004, if applicable, shareholders of record will receive information
regarding all dividends and distributions paid to them by the Fund during
calendar year 2003. Regulations of the U.S. Treasury Department require the
Fund to report this information to the Internal Revenue Service.
Dividends of $0.1110, $0.0273, $0.0352 and $0.1375 per share were paid to
Class A, Class B, Class C and Class N shareholders, respectively, on December
19, 2002, all of which was designated as an ordinary income for federal income
tax purposes.
Dividends, if any, paid by the Fund during the fiscal year ended November
30, 2003 which are not designated as capital gain distributions should be
multiplied by 0.19% to arrive at the amount eligible for the corporate
dividend-received deduction.
A portion, if any, of the dividends paid by the Fund during the fiscal year
ended November 30, 2003 which are not designated as capital gain distributions
are eligible for lower individual income tax rates to the extent that the Fund
has received qualified dividend income as stipulated by recent tax legislation.
$10,302,859 of the Fund's fiscal year taxable income may be eligible for the
lower individual income tax rates. In early 2004, shareholders of record will
receive information regarding the percentage of distributions that are eligible
for lower individual income tax rates.
The Fund has elected the application of Section 853 of the Internal Revenue
Code to permit shareholders to take a federal income tax credit or deduction,
at their option, on a per share basis for an aggregate amount of $1,189,166 of
foreign income taxes paid by the Fund during the fiscal year ended November 30,
2003. A separate notice will be mailed to each shareholder in January of 2004,
which will reflect the proportionate share of such foreign taxes (as well as
the dividend expected to be paid by the Fund in December of 2003) which must be
treated by shareholders as gross income for federal income tax purposes.
The foregoing information is presented to assist shareholders in reporting
distributions received from the Fund to the Internal Revenue Service. Because
of the complexity of the federal regulations which may affect your individual
tax return and the many variations in state and local tax regulations, we
recommend that you consult your tax advisor for specific guidance.
PORTFOLIO PROXY VOTING
POLICIES AND PROCEDURES 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 1.800.225.5677, (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 will be required to file new Form N-PX, with its complete
proxy voting record for the 12 months ended June 30th, no later than August
31st of each year. The first such filing is due no later than August 31, 2004,
for the twelve months ended June 30, 2004. Once filed, the Fund's Form N-PX
filing will be available (i) without charge, upon request, by calling the Fund
toll-free at 1.800.225.5677, and (ii) on the SEC's website at www.sec.gov.
33 | OPPENHEIMER INTERNATIONAL GROWTH FUND
TRUSTEES AND OFFICERS Unaudited
Name, Position(s) Held with Principal Occupation(s) During Past 5 Years;
Fund, Length of Service, Age Other Trusteeships/Directorships Held by
Trustee; Number of Portfolios in Fund Complex
Currently Overseen by Trustee
INDEPENDENT The address of each Trustee in the chart below
TRUSTEES is 6803 S. Tucson Way, Centennial, CO
80112-3924. Each Trustee serves for an
indefinite term, until his or her resignation,
retirement, death or removal. Mr. Motley was
elected as Trustee to the Board I funds
effective October 10, 2002 and did not hold
shares of Board I funds during the calendar
year ended December 31, 2002.
Clayton K. Yeutter, Of Counsel (since 1993), Hogan & Hartson (a law
Chairman of the Board firm). Other directorships: Weyerhaeuser Corp.
of Trustees (since 2003), (since 1999) and Danielson Holding Corp. (since
Trustee (since 1996) 2002); formerly a director of Caterpillar, Inc.
Age: 72 (1993-December 2002). Oversees 25 portfolios in
the OppenheimerFunds complex.
Robert G. Galli, A trustee or director of other Oppenheimer
Trustee (since 1996) funds. Oversees 35 portfolios in the
Age: 70 OppenheimerFunds complex.
Phillip A. Griffiths, A director (since 1991) of the Institute for
Trustee (since 1999) Advanced Study, Princeton, N.J., a director
Age: 65 (since 2001) of GSI Lumonics, a trustee (since
1983) of Woodward Academy, a Senior Advisor
(since 2001) of The Andrew W. Mellon
Foundation. A member of: the National Academy
of Sciences (since 1979), American Academy of
Arts and Sciences (since 1995), American
Philosophical Society (since 1996) and Council
on Foreign Relations (since 2002). Formerly a
director of Bankers Trust New York Corporation
(1994-1999). Oversees 25 portfolios in the
OppenheimerFunds complex.
Joel W. Motley, Director (since 2002) Columbia Equity Financial
Trustee (since 2002) Corp. (privately-held financial adviser);
Age: 51 Managing Director (since 2002) Carmona Motley,
Inc. (privately-held financial adviser);
Formerly he held the following positions:
Managing Director (January 1998-December 2001),
Carmona Motley Hoffman Inc. (privately-held
financial adviser); Managing Director (January
1992-December 1997), Carmona Motley & Co.
(privately-held financial adviser). Oversees 25
portfolios in the OppenheimerFunds complex.
Kenneth A. Randall, A director of Dominion Resources, Inc.
Trustee (since 1996) (electric utility holding company); formerly a
Age: 76 director of Prime Retail, Inc. (real estate
investment trust) and Dominion Energy, Inc.
(electric power and oil & gas producer),
President and Chief Executive Officer of The
Conference Board, Inc. (international economic
and business research) and a director of
Lumbermens Mutual Casualty Company, American
Motorists Insurance Company and American
Manufacturers Mutual Insurance Company.
Oversees 25 portfolios in the OppenheimerFunds
complex.
Edward V. Regan, President, Baruch College, CUNY; a director of
Trustee (since 1996) RBAsset (real estate manager); a director of
Age: 73 OffitBank; formerly Trustee, Financial
Accounting Foundation (FASB and GASB), Senior
Fellow of Jerome Levy Economics Institute, Bard
College, Chairman of Municipal Assistance
Corporation for the City of New York, New York
State Comptroller and Trustee of New York State
and Local Retirement Fund. Oversees 25
investment companies in the OppenheimerFunds
complex.
Russell S. Reynolds, Jr., Chairman (since 1993) of The Directorship
Trustee (since 1996) Search Group, Inc. (corporate governance
Age: 71 consulting and executive recruiting); a life
trustee of International House (non-profit
educational organization), and a trustee (since
1996) of the Greenwich Historical Society.
Oversees 25 portfolios in the OppenheimerFunds
complex.
34 | OPPENHEIMER INTERNATIONAL GROWTH FUND
Donald W. Spiro, Chairman Emeritus (since January 1991) of the
Vice Chairman of the Manager. Formerly a director (January
Board of Trustees, 1969-August 1999) of the Manager. Oversees 25
Trustee (since 1996) portfolios in the OppenheimerFunds complex.
Age: 77
INTERESTED TRUSTEE The address of Mr. Murphy in the chart below is
AND OFFICER Two World Financial Center, 225 Liberty Street,
New York, NY 10281-1008. Mr. Murphy serves for
an indefinite term, until his resignation,
death or removal.
John V. Murphy, Chairman, Chief Executive Officer and director
President and Trustee, (since June 2001) and President (since
Trustee (since 2001) September 2000) of the Manager; President and a
Age: 54 director or trustee of other Oppenheimer funds;
President and a director (since July 2001) of
Oppenheimer Acquisition Corp. (the Manager's
parent holding company) and of Oppenheimer
Partnership Holdings, Inc. (a holding company
subsidiary of the Manager); a director (since
November 2001) of OppenheimerFunds Distributor,
Inc. (a subsidiary of the Manager); Chairman
and a director (since July 2001) of Shareholder
Services, Inc. and of Shareholder Financial
Services, Inc. (transfer agent subsidiaries of
the Manager); President and a director (since
July 2001) of OppenheimerFunds Legacy Program
(a charitable trust program established by the
Manager); a director of the investment advisory
subsidiaries of the Manager: OFI Institutional
Asset Management, Inc. and Centennial Asset
Management Corporation (since November 2001),
HarbourView Asset Management Corporation and
OFI Private Investments, Inc. (since July
2001); President (since November 1, 2001) and a
director (since July 2001) of Oppenheimer Real
Asset Management, Inc.; a director (since
November 2001) of Trinity Investment Management
Corp. and Tremont Advisers, Inc. (investment
advisory affiliates of the Manager); Executive
Vice President (since February 1997) of
Massachusetts Mutual Life Insurance Company
(the Manager's parent company); a director
(since June 1995) of DLB Acquisition
Corporation (a holding company that owns the
shares of David L. Babson & Company, Inc.);
formerly, Chief Operating Officer (September
2000-June 2001) of the Manager; President and
trustee (November 1999-November 2001) of MML
Series Investment Fund and MassMutual
Institutional Funds (open-end investment
companies); a director (September 1999-August
2000) of C.M. Life Insurance Company;
President, Chief Executive Officer and director
(September 1999-August 2000) of MML Bay State
Life Insurance Company; a director (June
1989-June 1998) of Emerald Isle Bancorp and
Hibernia Savings Bank (a wholly-owned
subsidiary of Emerald Isle Bancorp). Oversees
72 portfolios as Trustee/Officer and 10
portfolios as Officer in the OppenheimerFunds
complex.
OFFICERS The address of the Officers in the chart below
is as follows: for Messrs. Evans and Zack, Two
World Financial Center, 225 Liberty Street, New
York, NY 10281-1008, for Mr. Wixted, 6803 S.
Tucson Way, Centennial, CO 80112-3924. Each
Officer serves for an annual term or until his
or her earlier resignation, death or removal.
George Evans, Vice President of the Manager (since October
Vice President and Portfolio 1993) and of HarbourView Asset Management
Manager (since 1996) Corporation (since July 1994). An officer of 2
Age: 44 portfolios in the OppenheimerFunds complex.
35 | OPPENHEIMER INTERNATIONAL GROWTH FUND
TRUSTEES AND OFFICERS Unaudited / Continued
Brian W. Wixted, Senior Vice President and Treasurer (since
Treasurer (since 1999) March 1999) of the Manager; Treasurer (since
Age: 44 March 1999) of HarbourView Asset Management
Corporation, Shareholder Services, Inc.,
Oppenheimer Real Asset Management Corporation,
Shareholder Financial Services, Inc.,
Oppenheimer Partnership Holdings, Inc., OFI
Private Investments, Inc. (since March 2000),
OppenheimerFunds International Ltd. and
OppenheimerFunds plc (since May 2000) and OFI
Institutional Asset Management, Inc. (since
November 2000) (offshore fund management
subsidiaries of the Manager); Treasurer and
Chief Financial Officer (since May 2000) of
Oppenheimer Trust Company (a trust company
subsidiary of the Manager); Assistant Treasurer
(since March 1999) of Oppenheimer Acquisition
Corp. and OppenheimerFunds Legacy Program
(since April 2000); formerly Principal and
Chief Operating Officer (March 1995-March
1999), Bankers Trust Company-Mutual Fund
Services Division. An officer of 82 portfolios
in the OppenheimerFunds complex.
Robert G. Zack, Senior Vice President (since May 1985) and
Secretary (since 2001) General Counsel (since February 2002) of the
Age: 55 Manager; General Counsel and a director (since
November 2001) of OppenheimerFunds Distributor,
Inc.; Senior Vice President and General Counsel
(since November 2001) of HarbourView Asset
Management Corporation; Vice President and a
director (since November 2000) of Oppenheimer
Partnership Holdings, Inc.; Senior Vice
President, General Counsel and a director
(since November 2001) of Shareholder Services,
Inc., Shareholder Financial Services, Inc., OFI
Private Investments, Inc., Oppenheimer Trust
Company and OFI Institutional Asset Management,
Inc.; General Counsel (since November 2001) of
Centennial Asset Management Corporation; a
director (since November 2001) of Oppenheimer
Real Asset Management, Inc.; Assistant
Secretary and a director (since November 2001)
of OppenheimerFunds International Ltd.; Vice
President (since November 2001) of
OppenheimerFunds Legacy Program; Secretary
(since November 2001) of Oppenheimer
Acquisition Corp.; formerly Acting General
Counsel (November 2001-February 2002) and
Associate General Counsel (May 1981-October
2001) of the Manager; Assistant Secretary of
Shareholder Services, Inc. (May 1985-November
2001), Shareholder Financial Services, Inc.
(November 1989-November 2001); OppenheimerFunds
International Ltd. and OppenheimerFunds plc
(October 1997-November 2001). An officer of 82
portfolios in the OppenheimerFunds complex.
The Fund's Statement of Additional Information contains additional information
about the Fund's Trustees and is available without charge upon request.
36 | OPPENHEIMER INTERNATIONAL GROWTH FUND
ITEM 2. CODE OF ETHICS
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
The Board of Directors of the Fund has determined that the
Fund does not have an audit committee financial expert serving on its Audit
Committee. In this regard, no member of the Audit Committee was identified as
having all of the technical attributes identified in Instruction 2(b) to Item 3
of Form N-CSR to qualify as an "audit committee financial expert," whether
through the type of specialized education or experience described in that
Instruction. The Board has concluded that while the members of the Audit
Committee collectively have the necessary attributes and experience required to
serve effectively as an Audit Committee, no single member possesses all of the
required technical attributes through the particular methods of education or
experience set forth in the Instructions to be designated as an audit committee
financial expert.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES - NOT REQUIRED
ITEM 5. NOT APPLICABLE
ITEM 6. RESERVED
ITEM 7. NOT APPLICABLE
ITEM 8. RESERVED
ITEM 9. CONTROLS AND PROCEDURES
(a) Based on their evaluation of registrant's disclosure controls and
procedures (as defined in rule 30a-2(c) under the Investment Company
Act of 1940 (17 CFR 270.30a-2(c)) as of November 30, 2003, registrant's
principal executive officer and principal financial officer found
registrant's disclosure controls and procedures to be appropriately
designed to ensure that information required to be disclosed by
registrant in the reports that it files under the Securities Exchange
Act of 1934 (a) is accumulated and communicated to registrant's
management, including its principal executive officer and principal
financial officer, to allow timely decisions regarding required
disclosure, and (b) is recorded, processed, summarized and reported,
within the time periods specified in the rules and forms adopted by the
U.S. Securities and Exchange Commission.
(b) There have been no significant changes in registrant's internal
controls or in other factors that could significantly affect
registrant's internal controls subsequent to the date of the most
recent evaluation as indicated, including no significant deficiencies
or material weaknesses that required corrective action.
ITEM 10. EXHIBITS.
(A) EXHIBIT ATTACHED HERETO. (ATTACH CODE OF ETHICS AS EXHIBIT)
(B) EXHIBITS ATTACHED HERETO. (ATTACH CERTIFICATIONS AS EXHIBITS)