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 811-21369
Oppenheimer International Value 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: April 30
Date of reporting period: May 1, 2004 - October 31, 2004
ITEM 1. REPORTS TO STOCKHOLDERS.
TOP HOLDINGS AND ALLOCATIONS
- --------------------------------------------------------------------------------
TOP TEN GEOGRAPHICAL HOLDINGS
- --------------------------------------------------------------------------------
Japan 17.4%
- --------------------------------------------------------------------------------
United Kingdom 16.9
- --------------------------------------------------------------------------------
France 14.1
- --------------------------------------------------------------------------------
United States 7.6
- --------------------------------------------------------------------------------
The Netherlands 5.7
- --------------------------------------------------------------------------------
Canada 5.0
- --------------------------------------------------------------------------------
Italy 4.7
- --------------------------------------------------------------------------------
Switzerland 3.6
- --------------------------------------------------------------------------------
Ireland 3.4
- --------------------------------------------------------------------------------
Korea, Republic of South 3.0
Portfolio holdings and allocations are subject to change. Percentages are as of
October 31, 2004, and are based on total investments.
TOP TEN COMMON STOCK HOLDINGS
- --------------------------------------------------------------------------------
GlaxoSmithKline plc 2.5%
- --------------------------------------------------------------------------------
Barratt Developments plc 2.3
- --------------------------------------------------------------------------------
easyJet plc 2.3
- --------------------------------------------------------------------------------
CFM Corp. 2.1
- --------------------------------------------------------------------------------
Converium Holding AG 2.0
- --------------------------------------------------------------------------------
Toyota Motor Corp. 2.0
- --------------------------------------------------------------------------------
Sysmex Corp. 1.9
- --------------------------------------------------------------------------------
Anglo Irish Bank Corp. 1.9
- --------------------------------------------------------------------------------
Total SA, B Shares 1.8
- --------------------------------------------------------------------------------
Muenchener Rueckversicherungs-Gesellschaft AG 1.8
Portfolio holdings and allocations are subject to change. Percentages are as of
October 31, 2004, and are based on net assets. For more current Fund holdings,
please visit www.oppenheimerfunds.com.
- --------------------------------------------------------------------------------
REGIONAL ALLOCATION
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Europe 43.5%
Asia 24.4
United Kingdom 16.9
United States/Canada 12.6
Latin America 1.7
Middle East/Africa 0.9
Portfolio holdings and allocations are subject to change. Percentages are as of
October 31, 2004, and are based on total investments.
- -------------------------------------------------------------------------------
6 | OPPENHEIMER INTERNATIONAL VALUE FUND
NOTES
- --------------------------------------------------------------------------------
Total returns include changes in share price and reinvestment of dividends and
capital gains distributions in a hypothetical investment for the periods shown.
Cumulative total returns are not annualized. The Fund's total returns shown do
not reflect the deduction of income taxes on an individual's investment. Taxes
may reduce your actual investment returns on income or gains paid by the Fund or
any gains you may realize if you sell your shares. Investors should consider the
Fund's investment objectives, risks, and other charges and expenses carefully
before investing. The Fund's prospectus contains this and other information
about the Fund, and may be obtained by asking your financial advisor, calling us
at 1.800.525.7048 or visiting our website at www.oppenheimerfunds.com. Read the
prospectus carefully before investing.
The Fund's investment strategy and focus can change over time. The mention of
specific fund holdings does not constitute a recommendation by OppenheimerFunds,
Inc.
Please remember this Fund has a limited operating history.
CLASS A shares of the Fund were first offered on 8/01/03. Unless otherwise
noted, Class A returns include the current maximum initial sales charge of
5.75%.
CLASS B shares of the Fund were first publicly offered on 5/6/04 and performance
data is not yet available. Unless otherwise noted, Class B returns include the
applicable contingent deferred sales charge of 5% (1-year). 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 5/6/04 and performance
data is not yet available. 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.
An explanation of the calculation of performance is in the Fund's Statement of
Additional Information.
7 | OPPENHEIMER INTERNATIONAL VALUE FUND
FUND EXPENSES
- --------------------------------------------------------------------------------
FUND EXPENSES. As a shareholder of the Fund, you incur two types of costs: (1)
transaction costs, which may include sales charges (loads) on purchase payments,
contingent deferred sales charges on redemptions; and redemption fees, if any;
and (2) ongoing costs, including management fees; distribution and service fees;
and other Fund expenses. These examples are intended to help you understand your
ongoing costs (in dollars) of investing in the Fund and to compare these costs
with the ongoing costs of investing in other mutual funds.
The Actual Expense examples for Class A based on an investment of $1,000.00
invested at the beginning of the period and held for the entire 6-month period
ended October 31, 2004. The Actual Expense examples for Classes B and C are
based on an investment of $1,000.00 invested at the beginning of the period, May
6, 2004 (inception of offering) and held for the period ended October 31, 2004.
The Hypothetical Examples for Comparison Purposes for all classes are based on
an investment of $1,000.00 invested on April 1, 2004 and held for the six months
ended September 30, 2004.
ACTUAL EXPENSES. The "actual" lines of the table provide information about
actual account values and actual expenses. You may use the information on this
line for the class of shares you hold, together with the amount you invested, to
estimate the expense that you paid over the period. Simply divide your account
value by $1,000.00 (for example, an $8,600.00 account value divided by $1,000.00
= 8.60), then multiply the result by the number in the "actual" line under the
heading entitled "Expenses Paid During Period" to estimate the expenses you paid
on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES. The "hypothetical" lines of the
table provide information about hypothetical account values and hypothetical
expenses based on the Fund's actual expense ratio for each class of shares, and
an assumed rate of return of 5% per year before expenses, which is not the
Fund's actual return. The hypothetical account values and expenses may not be
used to estimate the actual ending account balance or expenses you paid for the
period. You may use this information to compare the ongoing costs of investing
in the Fund and other funds. To do so, compare this 5% hypothetical example for
the class of shares you hold with the 5% hypothetical examples that appear in
the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as front-end
or contingent deferred sales charges (loads), redemption fees, or a $12.00 fee
imposed annually on accounts valued at less than $500.00 (subject to exceptions
described in the Statement of Additional Information). Therefore, the
"hypothetical" lines of the table are useful in comparing ongoing costs only,
and will not help you determine the relative total costs of owning different
funds. In addition, if these transactional costs were included, your costs would
have been higher.
8 | OPPENHEIMER INTERNATIONAL VALUE FUND
BEGINNING ENDING
ACCOUNT ACCOUNT EXPENSES PAID
VALUE VALUE DURING 6 MONTHS ENDED
(5/1/04) (10/31/04) OCTOBER 31, 2004 1,2
- --------------------------------------------------------------------------------
Class A Actual $1,000.00 $1,045.50 $ 7.64
- --------------------------------------------------------------------------------
Class A Hypothetical 1,000.00 1,017.70 7.53
- --------------------------------------------------------------------------------
Class B Actual1 1,000.00 1,040.00 11.87
- --------------------------------------------------------------------------------
Class B Hypothetical 1,000.00 1,013.17 12.12
- --------------------------------------------------------------------------------
Class C Actual1 1,000.00 1,039.30 11.82
- --------------------------------------------------------------------------------
Class C Hypothetical 1,000.00 1,013.22 12.06
Hypothetical assumes 5% annual return before expenses.
1. Actual expenses paid for Class A are equal to the Fund's annualized expense
ratio for that class, multiplied by the average account value over the period,
multiplied by 184/366 (to reflect the one-half year period). Actual expenses
paid for Classes B and C are equal to the Fund's annualized expense ratio for
that class, multiplied by the average account value over the period, multiplied
by 179/366 [to reflect the period from May 6, 2004 (inception of offering) to
October 31, 2004].
2. Hypothetical expenses paid for all classes are equal to the Fund's annualized
expense ratio for that class, multiplied by the average account value over the
period, multiplied by 184/366 (to reflect the one-half year period).
Those annualized expense ratios based on the 6-month period ended October 31,
2004 for Class A and for the period from May 6, 2004 (inception of offering) to
October 31, 2004 for Classes B and C are as follows:
CLASS EXPENSE RATIOS
- -----------------------------
Class A 1.48%
- -----------------------------
Class B 2.38
- -----------------------------
Class C 2.37
The expense ratios reflect voluntary waivers or reimbursements of expenses by
the Fund's Manager and Transfer Agent that can be terminated at any time,
without advance notice. The "Financial Highlights" tables in the Fund's
financial statements, included in this report, also show the gross expense
ratios, without such waivers or reimbursements.
9 | OPPENHEIMER INTERNATIONAL VALUE FUND
STATEMENT OF INVESTMENTS October 31, 2004 / Unaudited
- --------------------------------------------------------------------------------
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
COMMON STOCKS--94.1%
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY--20.4%
- --------------------------------------------------------------------------------
AUTOMOBILES--3.6%
- --------------------------------------------------------------------------------
PSA Peugeot Citroen 2,320 $ 142,956
- --------------------------------------------------------------------------------
Toyota Motor Corp. 4,400 171,701
-----------
314,657
- --------------------------------------------------------------------------------
DISTRIBUTORS--1.6%
Fujitsu Devices, Inc. 13,000 140,643
- --------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE--0.9%
Taito Corp. 56 75,665
- --------------------------------------------------------------------------------
HOUSEHOLD DURABLES--7.0%
Barratt Developments plc 21,770 202,429
- --------------------------------------------------------------------------------
CFM Corp. 1 46,290 184,309
- --------------------------------------------------------------------------------
JM AB 4,697 100,275
- --------------------------------------------------------------------------------
Matsushita Electric Industrial Co. 6,000 87,136
- --------------------------------------------------------------------------------
Waterford Wedgwood plc 1 231,696 26,675
-----------
600,824
- --------------------------------------------------------------------------------
INTERNET & CATALOG RETAIL--1.1%
LG Home Shopping, Inc. 1,919 93,773
- --------------------------------------------------------------------------------
LEISURE EQUIPMENT & PRODUCTS--1.9%
Agfa Gevaert NV 3,310 104,584
- --------------------------------------------------------------------------------
Sega Sammy Holdings, Inc. 1 1,200 55,785
-----------
160,369
- --------------------------------------------------------------------------------
MEDIA--1.2%
Vivendi Universal SA 1 3,930 107,633
- --------------------------------------------------------------------------------
SPECIALTY RETAIL--3.1%
Aoyama Trading Co. 2,773 60,525
- --------------------------------------------------------------------------------
Homestyle Group plc 1 38,293 75,295
- --------------------------------------------------------------------------------
New Dixons Group plc 41,922 132,313
-----------
268,133
- --------------------------------------------------------------------------------
CONSUMER STAPLES--9.9%
- --------------------------------------------------------------------------------
BEVERAGES--2.5%
Heineken NV 2,325 73,283
- --------------------------------------------------------------------------------
Scottish & Newcastle plc 20,018 148,340
-----------
221,623
- --------------------------------------------------------------------------------
FOOD & STAPLES RETAILING--0.8%
J Sainsbury plc 14,278 67,628
- --------------------------------------------------------------------------------
FOOD PRODUCTS--4.6%
CoolBrands International, Inc. 1 17,800 98,637
- --------------------------------------------------------------------------------
Nestle SA 596 141,388
- --------------------------------------------------------------------------------
Nutreco Holding NV 2,418 59,202
- --------------------------------------------------------------------------------
Unilever NV 1,706 99,514
-----------
398,741
- --------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS--1.1%
Reckitt Benckiser plc 3,360 92,247
- --------------------------------------------------------------------------------
PERSONAL PRODUCTS--0.9%
Amore Pacific Corp. 405 79,234
- --------------------------------------------------------------------------------
ENERGY--4.9%
- --------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES--1.6%
TGS Nopec Geophysical Co. ASA 1 7,200 137,001
- --------------------------------------------------------------------------------
OIL & GAS--3.3%
ENI SpA 5,800 132,065
- --------------------------------------------------------------------------------
Total SA, B Shares 750 156,382
-----------
288,447
- --------------------------------------------------------------------------------
FINANCIALS--20.3%
- --------------------------------------------------------------------------------
COMMERCIAL BANKS--8.5%
Anglo Irish Bank Corp. 8,507 162,144
- --------------------------------------------------------------------------------
Bank of Ireland 7,909 108,760
- --------------------------------------------------------------------------------
Credit Agricole SA 4,331 127,259
- --------------------------------------------------------------------------------
Danske Bank AS 3,400 95,275
- --------------------------------------------------------------------------------
Grupo Financiero Inbursa SA de CV 55,580 92,967
- --------------------------------------------------------------------------------
Industrial and Commercial Bank
of China Ltd. 44,000 59,074
- --------------------------------------------------------------------------------
Lloyds TSB Group plc 11,592 91,812
-----------
737,291
- --------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES--3.1%
Ichiyoshi Securities Co. Ltd. 11,000 82,733
- --------------------------------------------------------------------------------
Investor AB, B Shares 10,915 121,526
- --------------------------------------------------------------------------------
Van der Moolen Holding NV 1 10,690 62,493
-----------
266,752
- --------------------------------------------------------------------------------
INSURANCE--8.7%
Aegon NV 11,445 125,615
- --------------------------------------------------------------------------------
Aksigorta AS 14,260,000 45,741
- --------------------------------------------------------------------------------
AMP Ltd. 17,671 84,260
- --------------------------------------------------------------------------------
Converium Holding AG 23,728 176,867
- --------------------------------------------------------------------------------
Fondiaria-Sai SpA 9,171 129,985
- --------------------------------------------------------------------------------
HHG plc 1 35,353 30,433
- --------------------------------------------------------------------------------
Muenchener Rueckversicherungs-
Gesellschaft AG 1,585 155,714
-----------
748,615
- --------------------------------------------------------------------------------
HEALTH CARE--8.1%
- --------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES--1.9%
Sysmex Corp. 4,300 168,205
- --------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES--0.1%
Kuraya Sanseido, Inc. 800 7,619
10 | OPPENHEIMER INTERNATIONAL VALUE FUND
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
PHARMACEUTICALS--6.1%
GlaxoSmithKline plc 10,431 $ 219,863
- --------------------------------------------------------------------------------
Sanofi-Synthelabo SA 1,145 83,926
- --------------------------------------------------------------------------------
Takeda Pharmaceutical Co. Ltd. 2,200 106,430
- --------------------------------------------------------------------------------
UCB SA 2,220 117,625
-----------
527,844
- --------------------------------------------------------------------------------
INDUSTRIALS--13.3%
- --------------------------------------------------------------------------------
AIRLINES--2.3%
easyJet plc 1 69,730 201,820
- --------------------------------------------------------------------------------
BUILDING PRODUCTS--0.5%
Royal Group Technologies Ltd. 1 5,880 42,383
- --------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES--4.0%
Bacou-Dalloz SA 1,230 94,798
- --------------------------------------------------------------------------------
Jarvis plc 78,510 56,267
- --------------------------------------------------------------------------------
Quebecor World, Inc. 5,366 112,289
- --------------------------------------------------------------------------------
Rentokil Initial plc 28,530 81,264
-----------
344,618
- --------------------------------------------------------------------------------
CONSTRUCTION & ENGINEERING--3.5%
Koninklijke Boskalis Westminster NV 3,145 84,887
- --------------------------------------------------------------------------------
Okumura Corp. 14,000 67,596
- --------------------------------------------------------------------------------
Technical Olympic SA 13,000 62,527
- --------------------------------------------------------------------------------
Vinci 710 84,783
-----------
299,793
- --------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--1.6%
Alstom 1 211,650 143,494
- --------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES--0.4%
Alarko Holding AS 1 1,293,000 31,853
- --------------------------------------------------------------------------------
TRADING COMPANIES & DISTRIBUTORS--1.0%
Sumitomo Corp. 12,000 89,460
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY--5.8%
- --------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT--2.1%
SunCorp Technologies Ltd. 412,000 115,128
- --------------------------------------------------------------------------------
Wavecom SA 1 13,952 63,894
-----------
179,022
- --------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS--1.3%
Japan Digital Laboratory Co. Ltd. 10,100 114,709
- --------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS--2.4%
Hankuk Electric Glass Co. Ltd. 2,250 94,872
- --------------------------------------------------------------------------------
Nichicon Corp. 10,100 116,713
-----------
211,585
- --------------------------------------------------------------------------------
MATERIALS--1.8%
- --------------------------------------------------------------------------------
CHEMICALS--0.8%
Metallgesellschaft AG 1 5,987 70,918
- --------------------------------------------------------------------------------
METALS & MINING--1.0%
Maruichi Steel Tube Ltd. 5,000 80,786
- --------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES--8.3%
- --------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES--6.1%
Cable & Wireless plc 44,680 85,801
- --------------------------------------------------------------------------------
France Telecom SA 4,561 130,925
- --------------------------------------------------------------------------------
PCCW Ltd. 1 158,000 95,914
- --------------------------------------------------------------------------------
Telecom Italia SpA 60,369 150,587
- --------------------------------------------------------------------------------
Telefonos de Mexico SA de CV, Cl. L 35,940 61,517
-----------
524,744
- --------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES--2.2%
KDDI Corp. 22 106,014
- --------------------------------------------------------------------------------
STET Hellas Telecommunications
SA, ADR 5,200 85,800
-----------
191,814
- --------------------------------------------------------------------------------
UTILITIES--1.3%
- --------------------------------------------------------------------------------
MULTI-UTILITIES & UNREGULATED POWER--1.3%
Veolia Environnement 3,635 110,432
-----------
Total Common Stocks
(Cost $6,935,601) 8,140,375
PRINCIPAL
AMOUNT
- --------------------------------------------------------------------------------
NON-CONVERTIBLE CORPORATE BONDS AND NOTES--3.0%
- --------------------------------------------------------------------------------
Zurich Reinsurance Centre
Holdings, Inc., 7.125% Sr. Nts.,
10/15/23 (Cost $199,581) $400,000 258,000
- --------------------------------------------------------------------------------
JOINT REPURCHASE AGREEMENTS--4.7%
- --------------------------------------------------------------------------------
Undivided interest of 0.07% in joint repurchase
agreement (Principal Amount/Value $595,058,000,
with a maturity value of $595,147,755) with UBS
Warburg LLC, 1.81%, dated 10/29/04, to be
repurchased at $412,062 on 11/1/04, collateralized
by Federal National Mortgage Assn., 5.50%,
1/1/34--4/1/34, with a value of
$607,720,116 (Cost $412,000) 412,000 412,000
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE
(COST $7,547,182) 101.8% 8,810,375
- --------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS (1.8) (159,154)
--------------------------
NET ASSETS 100.0% $8,651,221
==========================
11 | OPPENHEIMER INTERNATIONAL VALUE FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
FOOTNOTE TO STATEMENT OF INVESTMENTS
1. Non-income producing security.
DISTRIBUTION OF INVESTMENTS REPRESENTING GEOGRAPHIC HOLDINGS, AS A PERCENTAGE OF
TOTAL INVESTMENTS AT VALUE, IS AS FOLLOWS:
GEOGRAPHIC HOLDINGS VALUE PERCENT
- -------------------------------------------------------------------------------
Japan $1,531,720 17.4%
United Kingdom 1,485,512 16.9
France 1,246,482 14.1
United States 670,000 7.6
The Netherlands 504,994 5.7
Canada 437,618 5.0
Italy 412,637 4.7
Switzerland 318,255 3.6
Ireland 297,579 3.4
Korea, Republic of South 267,879 3.0
Germany 226,632 2.6
Belgium 222,209 2.5
Sweden 221,801 2.5
Hong Kong 174,202 2.0
Mexico 154,484 1.7
Greece 148,327 1.7
Norway 137,001 1.5
China 95,914 1.1
Denmark 95,275 1.1
Australia 84,260 1.0
Turkey 77,594 0.9
-----------------------
Total $8,810,375 100.0%
=======================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
12 | OPPENHEIMER INTERNATIONAL VALUE FUND
STATEMENT OF ASSETS AND LIABILITIES Unaudited
- --------------------------------------------------------------------------------
October 31, 2004
- --------------------------------------------------------------------------------------------------------------
ASSETS
- --------------------------------------------------------------------------------------------------------------
Investments, at value (cost $7,547,182)--see accompanying statement of investments $ 8,810,375
- --------------------------------------------------------------------------------------------------------------
Cash 187,961
- --------------------------------------------------------------------------------------------------------------
Unrealized appreciation on foreign currency contracts 444
- --------------------------------------------------------------------------------------------------------------
Receivables and other assets:
Shares of beneficial interest sold 164,454
Interest and dividends 24,751
Other 3,031
------------
Total assets 9,191,016
- --------------------------------------------------------------------------------------------------------------
LIABILITIES
- --------------------------------------------------------------------------------------------------------------
Bank overdraft-foreign currencies (cost $7,294) 7,287
- --------------------------------------------------------------------------------------------------------------
Unrealized depreciation on foreign currency contracts 37,807
- --------------------------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 464,991
Shareholder communications 8,679
Distribution and service plan fees 1,040
Transfer and shareholder servicing agent fees 930
Trustees' compensation 400
Shares of beneficial interest redeemed 358
Other 18,303
------------
Total liabilities 539,795
- --------------------------------------------------------------------------------------------------------------
NET ASSETS $ 8,651,221
============
- --------------------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- --------------------------------------------------------------------------------------------------------------
Par value of shares of beneficial interest $ 638
- --------------------------------------------------------------------------------------------------------------
Additional paid-in capital 6,770,350
- --------------------------------------------------------------------------------------------------------------
Accumulated net investment loss (24,192)
- --------------------------------------------------------------------------------------------------------------
Accumulated net realized gain on investments and foreign currency transactions 680,233
- --------------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of assets and liabilities
denominated in foreign currencies 1,224,192
------------
NET ASSETS $ 8,651,221
============
- --------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
- --------------------------------------------------------------------------------------------------------------
Class A Shares:
Net asset value and redemption price per share (based on net assets
of $6,312,487 and 465,053 shares of beneficial interest outstanding) $13.57
Maximum offering price per share (net asset value plus sales charge of 5.75% of offering price) $14.40
- --------------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net assets
of $1,064,186 and 78,783 shares of beneficial interest outstanding) $13.51
- --------------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net
assets of $1,274,548 and 94,378 shares of beneficial interest outstanding) $13.50
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
13 | OPPENHEIMER INTERNATIONAL VALUE FUND
STATEMENT OF OPERATIONS Unaudited
- --------------------------------------------------------------------------------
For the Six Months Ended October 31, 2004
- ------------------------------------------------------------------------------------
INVESTMENT INCOME
- ------------------------------------------------------------------------------------
Dividends (net of foreign withholding taxes of $9,547) $ 96,429
- ------------------------------------------------------------------------------------
Interest 5,164
----------
Total investment income 101,593
- ------------------------------------------------------------------------------------
EXPENSES
- ------------------------------------------------------------------------------------
Management fees 29,700
- ------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 1,886
Class B 1,914
Class C 1,820
- ------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 1,784
Class B 596
Class C 415
- ------------------------------------------------------------------------------------
Shareholder communications:
Class A 4,577
Class B 1,239
Class C 782
- ------------------------------------------------------------------------------------
Legal, auditing and other professional fees 12,273
- ------------------------------------------------------------------------------------
Trustees' compensation 3,852
- ------------------------------------------------------------------------------------
Custodian fees and expenses 3,404
- ------------------------------------------------------------------------------------
Other 3,804
----------
Total expenses 68,046
Less reduction to custodian expenses (21)
Less payments and waivers of expenses (12,676)
----------
Net expenses 55,349
- ------------------------------------------------------------------------------------
NET INVESTMENT INCOME 46,244
- ------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
- ------------------------------------------------------------------------------------
Net realized gain on:
Investments 211,964
Foreign currency transactions 59,000
----------
Net realized gain 270,964
- ------------------------------------------------------------------------------------
Net change in unrealized appreciation on:
Investments (180,821)
Translation of assets and liabilities denominated in foreign currencies 196,517
----------
Net change in unrealized appreciation 15,696
- ------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 332,904
==========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
14 | OPPENHEIMER INTERNATIONAL VALUE FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SIX MONTHS PERIOD
ENDED ENDED
OCTOBER 31, 2004 APRIL 30,
(UNAUDITED) 2004 1
- ---------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
- ---------------------------------------------------------------------------------------------------------------------------------
Net investment income $ 46,244 $ 6,564
- ---------------------------------------------------------------------------------------------------------------------------------
Net realized gain 270,964 357,446
- ---------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation 15,696 1,208,496
----------------------------
Net increase in net assets resulting from operations 332,904 1,572,506
- ---------------------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
- ---------------------------------------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A -- (25,177)
Class B -- --
Class C -- --
- ---------------------------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from beneficial interest transactions:
Class A (690,687) 5,105,499
Class B 1,026,064 --
Class C 1,230,112 --
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS
- ---------------------------------------------------------------------------------------------------------------------------------
Total increase 1,898,393 6,652,828
- ---------------------------------------------------------------------------------------------------------------------------------
Beginning of period 6,752,828 100,000 2
----------------------------
End of period (including accumulated net investment loss of $24,192 and $70,436, respectively) $ 8,651,221 $ 6,752,828
============================
1. For the period from August 1, 2003 (commencement of operations) to April 30,
2004
2. Reflects the value of the Manager's initial seed money investment on July 16,
2003.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
15 | OPPENHEIMER INTERNATIONAL VALUE FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
CLASS A CLASS B CLASS C
SIX MONTHS PERIOD PERIOD PERIOD
ENDED ENDED ENDED ENDED
OCT. 31, 2004 APRIL 30, OCT. 31, OCT. 31,
(UNAUDITED) 2003 1 2004 2 2004 2
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $12.98 $10.00 $12.99 $12.99
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.05) .01 -- (.02)
Net realized and unrealized gain .64 3.02 .52 .53
--------------------------------------------------
Total from investment operations .59 3.03 .52 .51
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Distributions from net realized gain -- (.05) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $13.57 $12.98 $13.51 $13.50
==================================================
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 4.55% 30.35% 4.00% 3.93%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $6,312 $6,753 $1,064 $1,275
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $6,199 $6,126 $ 402 $ 381
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income (loss) 1.53% 0.14% (0.38)% (0.28)%
Total expenses 1.82% 2.13% 3.05% 2.75%
Expenses after payments and waivers and reduction to custodian expenses 1.48% 1.70% 2.38% 2.37%
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 18% 30% 18% 18%
1. For the period from August 1, 2003 (commencement of operations) to April 30,
2004
2. For the period from May 6, 2004 (commencement of operations) to October 31,
2004.
3. Assumes an investment at net asset value 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 a shareholder would pay on Fund distributions or the redemption of Fund
shares.
4. Annualized for periods of less than one full year.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
16 | OPPENHEIMER INTERNATIONAL VALUE FUND
NOTES TO FINANCIAL STATEMENTS Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer International Value Fund (the Fund), a series of Oppenheimer
International Value Trust, is an open-end management investment company
registered under the Investment Company Act of 1940, as amended. 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 and Class C shares. Class A shares are
sold at their offering price, which is normally net asset value plus a front-end
sales charge. Class B and Class C shares are sold without a front-end sales
charge but may be subject to a contingent deferred sales charge (CDSC). All
classes of shares have identical rights and voting privileges with respect to
the Fund in general and exclusive voting rights on matters that affect that
class alone. Earnings, net assets and net asset value per share may differ due
to each class having its own expenses, such as transfer and shareholder
servicing agent fees and shareholder communications, directly attributable to
that class. Classes A, B and C 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. The Fund calculates the net asset value of its shares as
of the close of The New York Stock Exchange (the Exchange), normally 4:00 P.M.
Eastern time, on each day the Exchange is open for business. Securities listed
or traded on National Stock Exchanges or other domestic or foreign exchanges are
valued based on the last sale price of the security traded on that exchange
prior to the time when the Fund's assets are valued. Securities traded on NASDAQ
are valued based on the closing price provided by NASDAQ prior to the time when
the Fund's assets are valued. In the absence of a sale, the security is valued
at the last sale price on the prior trading day, if it is within the spread of
the closing bid and asked prices, and if not, at the closing bid price.
Corporate, government and municipal debt instruments having a remaining maturity
in excess of 60 days and all mortgage-backed securities will be valued at the
mean between the "bid" and "asked" prices. Securities may be valued primarily
using dealer-supplied valuations or a portfolio pricing service authorized by
the Board of Trustees. Securities (including restricted securities) for which
market quotations are not readily available are valued at their fair value.
Foreign and domestic securities whose values have been materially affected by
what the Manager identifies as a significant event occurring before the Fund's
assets are valued but after the close of their respective exchanges will be fair
valued. Fair value is determined in good faith using consistently applied
procedures under the supervision of the Board of Trustees. Short-term "money
market type" debt securities with remaining maturities of sixty days or less are
valued at amortized cost (which approximates market value).
- --------------------------------------------------------------------------------
FOREIGN CURRENCY TRANSLATION. The Fund's accounting records are maintained in
U.S. dollars. Prices of securities denominated in foreign currencies are
translated into U.S. dollars as of the close of The New York Stock Exchange (the
Exchange), normally 4:00 P.M. Eastern time, on each day the Exchange is open for
business. 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. Foreign exchange rates may be valued
primarily using dealer supplied valuations or a portfolio pricing service
authorized by the Board of Trustees.
Reported net realized foreign exchange gains or losses arise from sales of
portfolio securities, sales and maturities of short-term securities, sales of
foreign currencies, currency gains or losses realized between the trade and
settlement dates on securities transactions, and the difference between the
amounts of dividends, interest, and foreign withholding taxes recorded on the
Fund's books and the U.S. dollar equivalent of the amounts actually received or
paid. Net unrealized foreign exchange gains and losses arise from changes in the
values of assets and liabilities, including investments in securities at
fiscal period end, resulting from changes in exchange rates.
17 | OPPENHEIMER INTERNATIONAL VALUE FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
The effect of changes in foreign currency exchange rates on investments is
separately identified from the fluctuations arising from changes in market
values of securities held and reported with all other foreign currency gains and
losses in the Fund's Statement of Operations.
- --------------------------------------------------------------------------------
JOINT REPURCHASE AGREEMENTS. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the Fund, along with other affiliated funds
advised by the Manager, may transfer uninvested cash balances into joint trading
accounts on a daily basis. These balances are invested in one or more repurchase
agreements. Securities pledged as collateral for repurchase agreements are held
by a custodian bank until the agreements mature. Each agreement requires that
the market value of the collateral be sufficient to cover payments of interest
and principal. In the event of default by the other party to the agreement,
retention of the collateral may be subject to legal proceedings.
- --------------------------------------------------------------------------------
ALLOCATION OF INCOME, EXPENSES, GAINS AND LOSSES. Income, expenses (other than
those attributable to a specific class), gains and losses are allocated on a
daily basis to each class of shares based upon the relative proportion of net
assets represented by such class. Operating expenses directly attributable to a
specific class are charged against the operations of that class.
- --------------------------------------------------------------------------------
FEDERAL TAXES. The Fund intends to comply with provisions of the Internal
Revenue Code applicable to regulated investment companies and to distribute
substantially all of its investment company taxable income, including any net
realized gain on investments not offset by capital loss carryforwards, if any,
to shareholders, therefore, no federal income or excise tax provision is
required.
Net investment income (loss) and net realized gain (loss) may differ for
financial statement and tax purposes. The character of dividends and
distributions made during the fiscal year from net investment income or net
realized gains may differ from their ultimate characterization for federal
income tax purposes. Also, due to timing of dividends and distributions, the
fiscal year in which amounts are distributed may differ from the fiscal year in
which the income or net realized gain was recorded by the Fund.
As of October 31, 2004, the Fund had no capital loss carryforward
available for federal income tax purposes. During the period ended April 30,
2004, the Fund had no capital loss carryforward to offset realized capital
gains.
- --------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations,
are recorded on the ex-dividend date. Income and capital gain distributions, if
any, are declared and paid annually.
- --------------------------------------------------------------------------------
INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date or upon
ex-dividend notification in the case of certain foreign dividends where the
ex-dividend date may have passed. Non-cash dividends included in dividend
income, if any, are recorded at the fair market value of the securities
received. Interest income, which includes accretion of discount and amortization
of premium, is accrued as earned.
- --------------------------------------------------------------------------------
CUSTODIAN FEES. Custodian Fees and Expenses in the Statement of Operations may
include interest expense incurred by the Fund on any cash overdrafts of its
custodian account during the period. The Fund pays interest to its custodian on
such cash overdrafts at a rate equal to the Federal Funds Rate plus 0.50%. The
Reduction to Custodian Expenses line item, if applicable, represents earnings on
cash balances maintained by the Fund during the period. Such interest expense
and other custodian fees may be paid with these earnings.
- --------------------------------------------------------------------------------
SECURITY TRANSACTIONS. Security transactions are recorded on the trade date.
Realized gains and losses on securities sold are determined on the basis of
identified cost.
- --------------------------------------------------------------------------------
OTHER. The preparation of financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of income and expenses during the reporting
period. Actual results could differ from those estimates.
18 | OPPENHEIMER INTERNATIONAL VALUE FUND
- --------------------------------------------------------------------------------
2. SHARES OF BENEFICIAL INTEREST
The Fund has authorized an unlimited number of $0.001 par value shares of
beneficial interest of each class. Transactions in shares of beneficial interest
were as follows:
SIX MONTHS ENDED OCTOBER 31, 2004 1 PERIOD ENDED APRIL 30, 2004 2,3
SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------------------------------------
CLASS A
Sold 450,753 $ 5,860,570 510,303 $5,105,000
Dividends and/or distributions reinvested -- -- 44 499
Redeemed (506,047) (6,551,257) 4 -- --
--------------------------------------------------------------
Net increase (decrease) (55,294) $ (690,687) 510,347 $5,105,499
==============================================================
- -----------------------------------------------------------------------------------------------------------------
CLASS B
Sold 86,451 $ 1,126,214 -- $ --
Dividends and/or distributions reinvested -- -- -- --
Redeemed (7,668) (100,147) 4 -- --
--------------------------------------------------------------
Net increase 78,783 $ 1,026,064 -- $ --
==============================================================
- -----------------------------------------------------------------------------------------------------------------
CLASS C
Sold 96,303 $ 1,255,600 -- $ --
Dividends and/or distributions reinvested -- -- -- --
Redeemed (1,925) (25,488) 4 -- --
--------------------------------------------------------------
Net increase 94,378 $ 1,230,112 -- $ --
==============================================================
1. For the six months ended October 31, 2004, for Class A shares and for the
period from May 6, 2004 (inception of offering) to October 31, 2004, for Class B
and Class C shares.
2. For the period from August 1, 2003 (commencement of operations) to April 30,
2004.
3. The Fund sold 10,000 to the Manager upon seeding of the Fund on July 16,
2003.
4. Net of redemptions fees of $40, $3 and $2 for Class A, Class B and Class C,
respectively.
- --------------------------------------------------------------------------------
3. PURCHASES AND SALES OF SECURITIES
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations, for the six months ended October 31, 2004, were
$2,661,675 and $1,258,442, 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 0.85% of the first $500 million of average annual net assets of
the Fund, 0.75% of the next $500 million, and 0.70% of average annual net assets
in excess of $1 billion.
- --------------------------------------------------------------------------------
TRANSFER AGENT FEES. OppenheimerFunds Services (OFS), a division of the Manager,
acts as the transfer and shareholder servicing agent for the Fund. The Fund pays
OFS a per account fee. For the six months ended April 30, 2004, the Fund paid
$1,824 to OFS for services to the Fund.
- --------------------------------------------------------------------------------
DISTRIBUTION AND SERVICE PLAN (12B-1) FEES. Under its General Distributor's
Agreement with the Fund, OppenheimerFunds Distributor, Inc. (the Distributor)
acts as the Fund's principal underwriter in the continuous public offering of
the Fund's classes of shares.
- --------------------------------------------------------------------------------
SERVICE PLAN FOR CLASS A SHARES. The Fund has adopted a Service Plan for Class A
shares. It reimburses the Distributor for a portion of its costs incurred for
services provided to accounts that hold Class A shares. Reimbursement is made
quarterly at an annual rate of up to 0.25% of the average annual net assets of
Class A shares of the Fund. The Distributor currently uses all of those fees to
pay dealers, brokers, banks and other financial institutions quarterly for
providing personal services and maintenance of accounts of their customers that
hold Class A shares. Any unreimbursed
19 | OPPENHEIMER INTERNATIONAL VALUE FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued
expenses the Distributor incurs with respect to Class A shares in any fiscal
year cannot be recovered in subsequent years. Fees incurred by the Fund under
the Plan are detailed in the Statement of Operations.
- --------------------------------------------------------------------------------
DISTRIBUTION AND SERVICE PLANS FOR CLASS B AND CLASS C SHARES. The Fund has
adopted Distribution and Service Plans for Class B and Class C shares to
compensate the Distributor for its services in connection with the distribution
of those shares and servicing accounts. Under the plans, the Fund pays the
Distributor an annual asset-based sales charge of 0.75% per year on Class B and
Class C shares. The Distributor also receives a service fee of up to 0.25% per
year under each plan. If either the Class B or Class C plan is terminated by the
Fund or by the shareholders of a class, the Board of Trustees and its
independent trustees must determine whether the Distributor shall be entitled to
payment from the Fund of all or a portion of the service fee and/or asset-based
sales charge in respect to shares sold prior to the effective date of such
termination. The Distributor's aggregate uncompensated expenses under the plan
at October 31, 2004 for Class B and Class C shares were $5,426 and $6,504,
respectively. Fees incurred by the Fund under the plans are detailed in the
Statement of Operations.
- --------------------------------------------------------------------------------
SALES CHARGES. Front-end sales charges and contingent deferred sales charges
(CDSC) do not represent expenses of the Fund. They are deducted from the
proceeds of sales of Fund shares prior to investment or from redemption proceeds
prior to remittance, as applicable. The sales charges retained by the
Distributor from the sale of shares and the CDSC retained by the Distributor on
the redemption of shares is shown in the table below for the period indicated.
CLASS A CLASS B CLASS C
CLASS A CONTINGENT DEFERRED CONTINGENT DEFERRED CONTINGENT DEFERRED
FRONT-END SALES SALES CHARGES SALES CHARGES SALES CHARGES
SIX MONTHS CHARGES RETAINED RETAINED BY RETAINED BY RETAINED BY
ENDED BY DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR
- -----------------------------------------------------------------------------------------------------------
October 31, 2004 $7,602 $-- $-- $--
- --------------------------------------------------------------------------------
PAYMENTS AND WAIVERS OF EXPENSES. The Manager has voluntarily agreed to waive
management fees and/or reimburse the Fund for certain expenses so that "Total
Annual Operating Expenses" will not exceed 1.70% for Class A shares, 2.45% for
Class B shares and Class C shares. During the six months ended October 31, 2004,
the Manager reimbursed the Fund $10,605, $1,356 and $698 for Class A, Class B
and Class C shares, respectively. The voluntary waiver and/or expense
reimbursements may be amended or withdrawn at any time without prior notice to
shareholders.
OFS has voluntarily agreed to limit transfer and shareholder servicing
agent fees for all classes to 0.35% of average annual net assets per class.
During the six months ended October 31, 2004, OFS waived $15 and $2 for Class B
and Class C shares, respectively. This undertaking may be amended or withdrawn
at any time.
- --------------------------------------------------------------------------------
5. FOREIGN CURRENCY CONTRACTS
A foreign currency contract is a commitment to purchase or sell a foreign
currency at a future date, at a negotiated rate. The Fund may enter into foreign
currency contracts to settle specific purchases or sales of securities
denominated in a foreign currency and for protection from adverse exchange rate
fluctuation. Risks to the Fund include the potential inability of the
counterparty to meet the terms of the contract.
The net U.S. dollar value of foreign currency underlying all contractual
commitments held by the Fund and the resulting unrealized appreciation or
depreciation are determined using prevailing foreign currency exchange rates.
Unrealized appreciation and depreciation on foreign currency contracts are
reported in the Statement of Assets and Liabilities as a receivable or payable
and in the Statement of Operations with the change in unrealized appreciation or
depreciation.
The Fund may realize a gain or loss upon the closing or settlement of the
foreign transaction. Contracts closed or settled with the same broker are
recorded as net realized gains or losses. Such realized gains and losses are
reported with all other foreign currency gains and losses in the Statement of
Operations.
20 | OPPENHEIMER INTERNATIONAL VALUE FUND
As of October 31, 2004, the Fund had outstanding foreign currency contracts as
follows:
EXPIRATION CONTRACT AMOUNT VALUATION AS OF UNREALIZED UNREALIZED
CONTRACT DESCRIPTION DATES (000S) OCTOBER 31, 2004 APPRECIATION DEPRECIATION
- -------------------------------------------------------------------------------------------------------------------
CONTRACTS TO PURCHASE
British Pound Sterling [GBP] 11/1/04 81GBP $ 74,357 $330 $ --
Canadien Dollar [CAD] 11/1/04 45CAD 18,471 21 --
Euro [EUR] 11/1/04 12,377EUR 7,916 34 --
Japanese Yen [JPY] 11/1/04 968JPY 4,575 35 --
Turkish Lira [TRL] 11/1/04 23,649,949TRL 8,036 24 --
--------------------
444 --
- -------------------------------------------------------------------------------------------------------------------
CONTRACTS TO SELL
Euro [EUR] 12/21/04 1,470EUR 940,125 -- 29,408
Japanese Yen [JPY] 12/21/04 44,400JPY 210,401 -- 8,399
--------------------
-- 37,807
--------------------
Total unrealized appreciation and depreciation $444 $37,807
====================
6. LITIGATION
Six complaints have been filed as putative derivative and class actions against
the Manager, OFS and the Distributor (collectively, "OppenheimerFunds"), as well
as 51 of the Oppenheimer funds (collectively, the "Funds") including this Fund,
and nine Directors/Trustees of certain of the Funds other than this Fund
(collectively, the "Directors/Trustees"). The complaints allege that the Manager
charged excessive fees for distribution and other costs, improperly used assets
of the Funds in the form of directed brokerage commissions and 12b-1 fees to pay
brokers to promote sales of the Funds, and failed to properly disclose the use
of Fund assets to make those payments in violation of the Investment Company Act
of 1940 and the Investment Advisers Act of 1940. The complaints further allege
that by permitting and/or participating in those actions, the Directors/Trustees
breached their fiduciary duties to Fund shareholders under the Investment
Company Act of 1940 and at common law. By order dated October 27, 2004, these
six actions, and future related actions, were consolidated by the U.S. District
Court for the Southern District of New York into a single consolidated
proceeding in contemplation of the filing of a superseding consolidated and
amended complaint.
OppenheimerFunds believes that it is premature to render any opinion as to
the likelihood of an outcome unfavorable to them, the Funds or the
Directors/Trustees and that no estimate can yet be made with any degree of
certainty as to the amount or range of any potential loss. However,
OppenheimerFunds, the Funds and the Directors/Trustees believe that the
allegations contained in the complaints are without merit and intend to defend
these lawsuits vigorously.
21 | OPPENHEIMER INTERNATIONAL VALUE FUND
PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES;
UPDATES TO STATEMENTS OF INVESTMENTS Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which
the Fund votes proxies relating to securities ("portfolio proxies") held by the
Fund. A description of the Fund's Portfolio Proxy Voting Policies and Procedures
is available (i) without charge, upon request, by calling the Fund toll-free at
1.800.525.7048, (ii) on the Fund's website at www.oppenheimerfunds.com, and
(iii) on the SEC's website at www.sec.gov. In addition, the Fund is required to
file 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 Fund's Form N-PX
filing is available (i) without charge, upon request, by calling the Fund
toll-free at 1.800.525.7048, and (ii) on the SEC's website at www.sec.gov.
The Fund files its complete schedule of portfolio holdings with the SEC
for the first quarter and the third quarter of each fiscal year on Form N-Q. The
Fund's Form N-Q filings are available on the SEC's website at www.sec.gov. Those
forms may be reviewed and copied at the SEC's Public Reference Room in
Washington D.C. Information on the operation of the Public Reference Room may be
obtained by calling 1-800-SEC-0330.
22 | OPPENHEIMER INTERNATIONAL VALUE FUND
ITEM 2. CODE OF ETHICS
Not applicable to semiannual reports.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
Not applicable to semiannual reports.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
Not applicable to semiannual reports.
ITEM 5. NOT APPLICABLE
ITEM 6. SCHEDULE OF INVESTMENTS
Not applicable
ITEM 7. NOT APPLICABLE
ITEM 8. NOT APPLICABLE
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
The Board is responsible for approving nominees for election as trustees.
To assist in this task, the Board has designated the Audit Committee as the
nominating committee for the Board. It reviews and recommends nominees to the
Board. The Committee is comprised entirely of disinterested trustees as defined
in Section 2(a)(19) of the Investment Company Act of 1940.
The Audit Committee charter describes the responsibilities of the
Committee in nominating candidates for election as independent Trustees of the
Registrant. The Registrant's Board has adopted a written charter for the
Committee. A current copy of the Audit Committee charter is available to
shareholders on the OppenheimerFunds website at WWW.OPPENHEIMERFUNDS.COM.
Under the current policy, if the Board determines that a vacancy exists or
is likely to exist on the Board, the Audit Committee of the Board will consider
candidates for Board membership including recommended by Registrant
shareholders. The Audit Committee will consider nominees recommended by
independent Board members or recommended by any other Board members including
Board members affiliated with the Registrant's investment advisors. The
Committee may, upon Board approval, retain an executive search firm to assist in
screening potential candidates. Upon Board approval, the Audit Committee may
also use the services of legal, financial, or other external counsel that it
deems necessary or desirable in the screening process. Shareholders wishing to
submit a nominee for election to the Board may do so by mailing their submission
to the offices of OppenheimerFunds, Inc., 6803 South Tucson Way, Centennial, CO
80112, to the attention of the Board of Trustees of the named Registrant, c/o
the Secretary of the Registrant.
The Committee's process for identifying and evaluating nominees for trustees
includes a number of factors. In screening candidates for board membership,
whether the candidate is suggested by Board members, shareholders or others, the
Committee considers the candidate's professional experience, soundness of
judgment, integrity, ability to make independent, analytical inquiries,
collegiality, willingness and ability to devote the time required to perform
Board activities adequately, ability to represent the interests of all
shareholders of the Registrant, and diversity relative to the board's
composition. Candidates are expected to provide a mix of attributes, experience,
perspective and skills necessary to effectively advance the interests of
shareholders.
ITEM 10. 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 October 31, 2004,
registrant's principal executive officer and principal financial
officer found registrant's disclosure controls and procedures to
provide reasonable assurances that information required to be
disclosed by registrant in the reports that it files under the
Securities Exchange Act of 1934 (a) is accumulated and communicated
to registrant's management, including its principal executive
officer and principal financial officer, to allow timely decisions
regarding required disclosure, and (b) is recorded, processed,
summarized and reported, within the time periods specified in the
rules and forms adopted by the U.S. Securities and Exchange
Commission.
(b) There have been no significant changes in registrant's internal
controls over financial reporting that occurred during the
registrant's last fiscal half-year that has materially affected, or
is reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 11. EXHIBITS.
(A) EXHIBIT ATTACHED HERETO. (ATTACH CODE OF ETHICS AS EXHIBIT)(NOT
APPLICABLE TO SEMIANNUAL REPORTS)
(B) EXHIBITS ATTACHED HERETO. (ATTACH CERTIFICATIONS AS EXHIBITS)