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
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(Address of principal executive offices) (Zip code)
Robert G. Zack, Esq.
OppenheimerFunds, Inc.
Two World Financial Center, New York, New York 10281-1008
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(Name and address of agent for service)
Registrant's telephone number, including area code: (303) 768-3200
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Date of fiscal year end: NOVEMBER 30
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Date of reporting period: DECEMBER 1, 2003 - NOVEMBER 30, 2004
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ITEM 1. REPORTS TO STOCKHOLDERS.
TOP HOLDINGS AND ALLOCATIONS
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TOP TEN GEOGRAPHICAL HOLDINGS
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Japan 18.0%
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United Kingdom 15.1
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France 12.8
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Australia 6.9
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Germany 6.2
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Sweden 5.0
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India 4.9
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The Netherlands 4.6
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Brazil 3.7
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United States 3.6
Portfolio holdings and allocations are subject to change. Percentages are as of
November 30, 2004, and are based on total investments.
TOP TEN COMMON STOCK HOLDINGS
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Vodafone Group plc 2.8%
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Anglo Irish Bank Corp. 2.7
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Novogen Ltd. 2.6
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Telefonaktiebolaget LM Ericsson, B Shares 2.6
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Empresa Brasileira de Aeronautica SA, Preference 2.5
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Mitsubishi Tokyo Financial Group, Inc. 2.2
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Technip SA 1.8
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Tandberg ASA 1.7
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Infosys Technologies Ltd. 1.7
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Aalberts Industries NV 1.6
Portfolio holdings and allocations are subject to change. Percentages are as of
November 30, 2004, and are based on net assets.
For more current Fund holdings, please visit www.oppenheimerfunds.com.
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8 | OPPENHEIMER INTERNATIONAL GROWTH FUND
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REGIONAL ALLOCATION
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL]
Europe 57.6%
Asia 32.3
Latin America 4.5
United States/Canada 3.8
Middle East/Africa 1.8
Portfolio holdings and allocations are subject to change. Percentages are as of
November 30, 2004, and are based on total investments.
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9 | OPPENHEIMER INTERNATIONAL GROWTH FUND
FUND PERFORMANCE DISCUSSION
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HOW HAS THE FUND PERFORMED? BELOW IS A DISCUSSION BY OPPENHEIMERFUNDS, INC., OF
THE FUND'S PERFORMANCE DURING ITS FISCAL YEAR ENDED NOVEMBER 30, 2004, FOLLOWED
BY A GRAPHICAL COMPARISON OF THE FUND'S PERFORMANCE TO AN APPROPRIATE
BROAD-BASED MARKET INDEX.
MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE. The Fund participated well in the
international growth stock rally that began in early 2003 and reached a peak in
mid-February 2004. Those early fiscal-year gains were partly offset, however, by
the market correction that began in mid-March and persisted into late September
before the market moved ahead.
Throughout the period, the Fund continued to focus on its four global
themes--mass affluence, new technology, restructuring and aging. As the market
rose toward its mid-March peak, we took profits in several stocks whose upside
seemed limited, and reinvested proceeds in attractively priced companies
positioned to benefit from those global growth drivers.
In the mass affluence category, we found several opportunities in
companies with globally recognized brands and good earnings, whose valuations
had declined to very attractive levels. Examples include a major beauty products
company, a Dutch brewer, wine and spirits maker Pernod-Ricard SA, and a
U.K.-based retailer.
In technology, we continued to look beyond traditional high-tech companies
and found what we believe are exceptional opportunities in several Japanese
firms, including digital camera maker Canon, Inc. and a maker of high-end
halogen lighting systems. We also increased our holdings in a Japanese
manufacturer of mini-hard disk drives. Additionally, we added to positions in
two of the world's major communications players, Sweden's Telefonaktiebolaget LM
Ericsson and the U.K's Vodafone Group plc, as well as in India's Infosys
Technologies Ltd., an information technology services firm.
Several biotech and drug discovery firms in our holdings also fit into the
non-traditional growth company category. Our holdings of traditional
pharmaceutical firms are limited. Most of our healthcare holdings represent
small-to-midsize drug-discovery companies like a drug delivery system maker in
the U.K. and Australia's Novogen Ltd.
The Fund further benefited from substantial gains in several of its
long-term holdings. A Greek tanker fleet operator, for example, doubled during
the year, reflecting rising tanker-shipping rates. A global staffing and
employment services company rose significantly on a strong worldwide economic
outlook. German automotive systems and components supplier Continental AG also
was up strongly, in part reflecting its dominance in anti-lock brake,
anti-rollover, and other automotive safety technologies.
Detractors from performance during the period included Empresa Brasileira
de Aeronautica (Embraer) and Novogen Ltd., both driven by short-term shifts in
investor
10 | OPPENHEIMER INTERNATIONAL GROWTH FUND
psychology rather than negative changes in the companies' fundamentals or
earnings prospects. Apparently many investors thought that Embraer would get
caught up in the airline industry's woes, but that was not the case. Embraer
dominates the global market for regional jets and represents a solution to
airlines' problems, allowing carriers to reconfigure their fleets and networks
and operate much more efficiently. Similarly, Novogen sold off in what we
believe is a knee-jerk reaction to general pharmaceutical companies' problems,
and investors simply did not take into account the company's business model and
its powerful new-product pipeline. Both stocks have been recovering since
September, as their business strengths were recognized.
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, 2004. Performance is measured from the inception of
Classes A, B, and C 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. Past performance cannot guarantee future results.
The Fund's performance is compared to the performance of the Morgan
Stanley Capital International (MSCI) EAFE(R) Index (Europe, Australasia, Far
East), 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
shows the effect of taxes. The Fund's performance reflects the effects of the
Fund's business and operating expenses. While index comparisons may be useful to
provide a benchmark for the Fund's performance, it must be noted that the Fund's
investments are not limited to the investments in the index.
11 | OPPENHEIMER INTERNATIONAL GROWTH FUND
FUND PERFORMANCE DISCUSSION
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CLASS A SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer International Growth Fund (Class A)
MSCI EAFE Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
Oppenheimer
International Growth MSCI EAFE
Date Fund (Class A) 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
02/29/2004 18,931 13,337
05/31/2004 18,188 13,165
08/31/2004 17,557 13,101
11/30/2004 20,149 14,858
AVERAGE ANNUAL TOTAL RETURNS OF CLASS A SHARES WITH SALES CHARGE OF THE FUND AT
11/30/04
1-Year 10.44% 5-Year -0.60% Since Inception (3/25/96) 8.41%
12 | OPPENHEIMER INTERNATIONAL GROWTH FUND
CLASS B SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer International Growth Fund (Class B)
MSCI EAFE Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
Oppenheimer
International Growth MSCI EAFE
Date Fund (Class B) 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
02/29/2004 19,152 13,337
05/31/2004 18,401 13,165
08/31/2004 17,763 13,101
11/30/2004 20,385 14,858
AVERAGE ANNUAL TOTAL RETURNS OF CLASS B SHARES WITH SALES CHARGE OF THE FUND AT
11/30/04
1-Year 11.25% 5-Year -0.56% Since Inception (3/25/96) 8.55%
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH DOES NOT
GUARANTEE FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT
PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE QUOTED. FOR PERFORMANCE
DATA CURRENT TO THE MOST RECENT MONTH END, VISIT US AT WWW.OPPENHEIMERFUNDS.COM,
OR CALL US AT 1.800.525.7048. FUND RETURNS INCLUDE CHANGES IN SHARE PRICE,
REINVESTED DISTRIBUTIONS, AND THE APPLICABLE SALES CHARGE: FOR CLASS A SHARES,
THE CURRENT MAXIMUM INITIAL SALES CHARGE OF 5.75%; FOR CLASS B SHARES, THE
CONTINGENT DEFERRED SALES CHARGE OF 5% (1-YEAR) AND 2% (5-YEAR); AND FOR CLASS C
AND N SHARES, THE CONTINGENT 1% DEFERRED SALES CHARGE FOR THE 1-YEAR PERIOD.
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. SEE PAGE 16 FOR FURTHER INFORMATION.
13 | OPPENHEIMER INTERNATIONAL GROWTH FUND
FUND PERFORMANCE DISCUSSION
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CLASS C SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer International Growth Fund (Class C)
MSCI EAFE Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
Oppenheimer
International Growth MSCI EAFE
Date Fund (Class C) 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
02/29/2004 18,883 13,337
05/31/2004 18,110 13,165
08/31/2004 17,453 13,101
11/30/2004 19,989 14,858
AVERAGE ANNUAL TOTAL RETURNS OF CLASS C SHARES WITH SALES CHARGE OF THE FUND AT
11/30/04
1-Year 15.34% 5-Year -0.17% Since Inception (3/25/96) 8.31%
14 | OPPENHEIMER INTERNATIONAL GROWTH FUND
CLASS N SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer International Growth Fund (Class N)
MSCI EAFE Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE CHART IN THE PRINTED MATERIAL.]
Oppenheimer
International Growth MSCI EAFE
Date Fund (Class N) 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
02/29/2004 9,284 10,380
05/31/2004 8,915 10,247
08/31/2004 8,602 10,197
11/30/2004 9,861 11,564
AVERAGE ANNUAL TOTAL RETURNS OF CLASS N SHARES WITH SALES CHARGE OF THE FUND AT
11/30/04
1-Year 15.94% 5-Year N/A Since Inception (3/1/01) -0.37%
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH DOES NOT
GUARANTEE FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT
PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE QUOTED. FOR PERFORMANCE
DATA CURRENT TO THE MOST RECENT MONTH END, VISIT US AT WWW.OPPENHEIMERFUNDS.COM,
OR CALL US AT 1.800.525.7048. FUND RETURNS INCLUDE CHANGES IN SHARE PRICE,
REINVESTED DISTRIBUTIONS, AND THE APPLICABLE SALES CHARGE: FOR CLASS A SHARES,
THE CURRENT MAXIMUM INITIAL SALES CHARGE OF 5.75%; FOR CLASS B SHARES, THE
CONTINGENT DEFERRED SALES CHARGE OF 5% (1-YEAR) AND 2% (5-YEAR); AND FOR CLASS C
AND N SHARES, THE CONTINGENT 1% DEFERRED SALES CHARGE FOR THE 1-YEAR PERIOD.
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. SEE PAGE 16 FOR FURTHER INFORMATION.
15 | OPPENHEIMER INTERNATIONAL GROWTH FUND
NOTES
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Total returns and the ending account values in the graphs include changes in
share price and reinvestment of dividends and capital gains distributions in a
hypothetical investment for the periods shown. The Fund's total returns shown do
not reflect the deduction of income taxes on an individual's investment. Taxes
may reduce your actual investment returns on income or gains paid by the Fund or
any gains you may realize if you sell your shares.
Investors should consider the Fund's investment objectives, risks, and other
charges and expenses carefully before investing. The Fund's prospectus contains
this and other information about the Fund, and may be obtained by asking your
financial advisor, calling us at 1.800.525.7048 or visiting our website at
www.oppenheimerfunds.com. Read the prospectus carefully before investing.
The Fund's investment strategy and focus can change over time. The mention of
specific fund holdings does not constitute a recommendation by OppenheimerFunds,
Inc.
CLASS A shares of the Fund were first publicly offered on 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.
16 | OPPENHEIMER INTERNATIONAL GROWTH FUND
FUND EXPENSES
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FUND EXPENSES. As a shareholder of the Fund, you incur two types of costs: (1)
transaction costs, which may include sales charges (loads) on purchase payments,
contingent deferred sales charges on redemptions; and redemption fees, if any;
and (2) ongoing costs, including management fees; distribution and service fees;
and other Fund expenses. These examples are intended to help you understand your
ongoing costs (in dollars) of investing in the Fund and to compare these costs
with the ongoing costs of investing in other mutual funds.
The examples are based on an investment of $1,000.00 invested at the beginning
of the period and held for the entire 6-month period ended November 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
17 | OPPENHEIMER INTERNATIONAL GROWTH FUND
FUND EXPENSES
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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.
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BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT PAID DURING
VALUE VALUE 6 MONTHS ENDED
(6/1/04) (11/30/04) NOVEMBER 30, 2004
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Class A Actual $1,000.00 $1,107.80 $ 7.40
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Class A Hypothetical 1,000.00 1,018.00 7.09
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Class B Actual 1,000.00 1,103.10 11.52
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Class B Hypothetical 1,000.00 1,014.10 11.04
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Class C Actual 1,000.00 1,103.80 11.37
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Class C Hypothetical 1,000.00 1,014.25 10.88
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Class N Actual 1,000.00 1,106.00 8.72
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Class N Hypothetical 1,000.00 1,016.75 8.35
Hypothetical assumes 5% return before expenses.
Expenses are equal to the Fund's annualized expense ratio for that class,
multiplied by the average account value over the period, multiplied by 183/366
(to reflect the one-half year period). Those annualized expense ratios based on
the 6-month period ended November 30, 2004 are as follows:
CLASS EXPENSE RATIOS
- ---------------------------
Class A 1.40%
- ---------------------------
Class B 2.18
- ---------------------------
Class C 2.15
- ---------------------------
Class N 1.65
The expense ratios reflect voluntary waivers or reimbursements of expenses by
the Fund's 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.
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18 | OPPENHEIMER INTERNATIONAL GROWTH FUND
STATEMENT OF INVESTMENTS November 30, 2004
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VALUE
SHARES SEE NOTE 1
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COMMON STOCKS--98.9%
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CONSUMER DISCRETIONARY--19.1%
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AUTO COMPONENTS--1.5%
Continental AG 245,498 $ 14,996,475
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AUTOMOBILES--1.4%
Porsche AG,
Preferred 15,702 10,019,635
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Toyota Motor Corp. 124,200 4,658,782
----------------
14,678,417
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HOTELS, RESTAURANTS & LEISURE--1.5%
Carnival Corp. 162,700 8,624,727
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William Hill plc 698,320 6,939,163
----------------
15,563,890
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HOUSEHOLD DURABLES--2.9%
Daito Trust
Construction
Co. Ltd. 158,632 7,183,569
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Groupe SEB SA 39,224 3,957,759
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Sharp Corp. 718,000 11,533,492
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Sony Corp. 188,100 6,854,623
----------------
29,529,443
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INTERNET & CATALOG RETAIL--1.9%
LG Home
Shopping, Inc. 164,880 9,253,389
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Next plc 339,130 10,394,889
----------------
19,648,278
- --------------------------------------------------------------------------------------
MEDIA--5.9%
British Sky Broadcasting
Group plc 199,599 2,127,390
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Gestevision Telecinco
SA 1 196,002 3,705,235
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Grupo Televisa SA,
Sponsored GDR 137,200 8,543,444
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Mediaset SpA 633,800 7,675,847
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News Corp., Inc.,
Chess Depositary
Interest, Cl. B 403,994 7,243,176
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Societe Television
Francaise 1 278,200 8,861,345
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Sogecable SA 1 47,100 1,998,663
- --------------------------------------------------------------------------------------
Vivendi Universal SA 1 407,160 12,016,384
- --------------------------------------------------------------------------------------
Zee Telefilms Ltd. 2,536,600 8,638,136
----------------
60,809,620
- --------------------------------------------------------------------------------------
SPECIALTY RETAIL--2.4%
Hennes & Mauritz
AB, B Shares 493,800 15,877,814
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New Dixons
Group plc 3,374,051 9,397,438
----------------
25,275,252
- --------------------------------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS--1.6%
Compagnie Financiere
Richemont AG,
A Shares 171,134 5,202,486
- --------------------------------------------------------------------------------------
Luxottica Group SpA 558,800 10,905,313
----------------
16,107,799
- --------------------------------------------------------------------------------------
CONSUMER STAPLES--5.7%
- --------------------------------------------------------------------------------------
BEVERAGES--2.9%
Foster's Group Ltd. 2,041,110 8,506,777
- --------------------------------------------------------------------------------------
Heineken NV 262,825 8,315,710
- --------------------------------------------------------------------------------------
Pernod-Ricard SA 86,830 12,962,992
----------------
29,785,479
- --------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING--0.5%
Carrefour SA 57,730 2,742,912
- --------------------------------------------------------------------------------------
Woolworths Ltd. 255,964 2,963,296
----------------
5,706,208
- --------------------------------------------------------------------------------------
FOOD PRODUCTS--1.5%
Cadbury
Schweppes plc 598,060 5,337,168
- --------------------------------------------------------------------------------------
Nestle SA 18,518 4,752,163
- --------------------------------------------------------------------------------------
Unilever plc 568,370 5,202,546
----------------
15,291,877
- --------------------------------------------------------------------------------------
PERSONAL PRODUCTS--0.8%
L'Oreal SA 114,850 8,305,879
19 | OPPENHEIMER INTERNATIONAL GROWTH FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------------
ENERGY--4.7%
- --------------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES--1.8%
Technip SA 112,530 $ 18,924,070
- --------------------------------------------------------------------------------------
OIL & GAS--2.9%
BP plc, ADR 159,800 9,803,730
- --------------------------------------------------------------------------------------
Total SA, B Shares 65,910 14,431,139
- --------------------------------------------------------------------------------------
Tsakos Energy
Navigation Ltd. 113,500 4,795,375
----------------
29,030,244
- --------------------------------------------------------------------------------------
FINANCIALS--18.6%
- --------------------------------------------------------------------------------------
COMMERCIAL BANKS--10.2%
ABN Amro
Holding NV 299,700 7,362,824
- --------------------------------------------------------------------------------------
Anglo Irish
Bank Corp. 1,249,482 28,321,098
- --------------------------------------------------------------------------------------
ICICI Bank Ltd.,
Sponsored ADR 727,800 13,486,134
- --------------------------------------------------------------------------------------
Joyo Bank Ltd. (The) 1,607,000 7,527,078
- --------------------------------------------------------------------------------------
Mitsubishi Tokyo
Financial Group, Inc. 2,355 22,313,056
- --------------------------------------------------------------------------------------
National Australia
Bank Ltd. 136,600 2,958,307
- --------------------------------------------------------------------------------------
Royal Bank of
Scotland Group
plc (The) 404,011 12,414,479
- --------------------------------------------------------------------------------------
Societe Generale,
Cl. A 109,830 10,607,482
----------------
104,990,458
- --------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES--3.7%
3i Group plc 1,098,637 13,719,841
- --------------------------------------------------------------------------------------
Collins Stewart
Tullett plc 1,830,121 13,158,476
- --------------------------------------------------------------------------------------
MLP AG 562,828 11,111,120
----------------
37,989,437
- --------------------------------------------------------------------------------------
INSURANCE--2.6%
Alleanza
Assicurazioni SpA 407,700 5,029,727
- --------------------------------------------------------------------------------------
Allianz AG 43,323 5,425,317
- --------------------------------------------------------------------------------------
AMP Ltd. 1,921,305 10,202,102
- --------------------------------------------------------------------------------------
Skandia Forsakrings
AB 1,596,900 6,632,355
----------------
27,289,501
- --------------------------------------------------------------------------------------
REAL ESTATE--1.6%
Solidere, GDR 1,2 800,935 4,885,704
- --------------------------------------------------------------------------------------
Solidere, GDR 1 76,157 464,558
- --------------------------------------------------------------------------------------
Sumitomo Realty
& Development
Co. Ltd. 924,000 11,376,590
----------------
16,726,852
- --------------------------------------------------------------------------------------
THRIFTS & MORTGAGE FINANCE--0.5%
Housing Development
Finance Corp. Ltd. 265,500 4,761,869
- --------------------------------------------------------------------------------------
HEALTH CARE--13.9%
- --------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES--1.9%
Art Advanced
Research
Technologies, Inc. 1,3 389,400 328,358
- --------------------------------------------------------------------------------------
Art Advanced
Research
Technologies, Inc. 1,3,4 1,901,125 1,603,107
- --------------------------------------------------------------------------------------
Essilor
International SA 147,150 10,054,931
- --------------------------------------------------------------------------------------
Ortivus AB, Cl. B 1,3 710,800 2,624,128
- --------------------------------------------------------------------------------------
Terumo Corp. 193,900 4,974,452
- --------------------------------------------------------------------------------------
William Demant
Holding AS 1 12,200 541,349
----------------
20,126,325
- --------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES--0.6%
Nicox SA 1 1,332,479 6,075,894
- --------------------------------------------------------------------------------------
PHARMACEUTICALS--11.4%
AstraZeneca plc 41,520 1,622,557
- --------------------------------------------------------------------------------------
Dr. Reddy's Laboratories
Ltd., Sponsored ADR 167,100 2,959,341
- --------------------------------------------------------------------------------------
Fujisawa Pharmaceutical
Co. Ltd. 153,000 3,962,344
- --------------------------------------------------------------------------------------
GlaxoSmithKline plc 327,940 6,899,712
- --------------------------------------------------------------------------------------
H. Lundbeck AS 417,900 7,851,047
- --------------------------------------------------------------------------------------
Marshall Edwards,
Inc. 1,4 1,750,000 16,051,978
20 | OPPENHEIMER INTERNATIONAL GROWTH FUND
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------------
PHARMACEUTICALS Continued
NeuroSearch AS 1 253,600 $ 10,753,838
- --------------------------------------------------------------------------------------
Novogen Ltd. 1,3 6,323,015 26,645,372
- --------------------------------------------------------------------------------------
Sanofi-Synthelabo
SA 198,700 14,964,199
- --------------------------------------------------------------------------------------
Schering AG 91,196 6,499,460
- --------------------------------------------------------------------------------------
Shionogi & Co. Ltd. 405,000 5,462,708
- --------------------------------------------------------------------------------------
SkyePharma plc 1 3,340,500 4,245,046
- --------------------------------------------------------------------------------------
Takeda
Pharmaceutical
Co. Ltd. 112,000 5,507,215
- --------------------------------------------------------------------------------------
Teva Pharmaceutical
Industries Ltd.,
Sponsored ADR 144,800 3,950,144
----------------
117,374,961
- --------------------------------------------------------------------------------------
INDUSTRIALS--9.9%
- --------------------------------------------------------------------------------------
AEROSPACE & DEFENSE--2.5%
Empresa Brasileira de
Aeronautica SA,
Preference 3,731,246 26,205,846
- --------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES--1.8%
BTG plc 1 2,170,784 3,909,734
- --------------------------------------------------------------------------------------
Buhrmann NV 185,658 1,658,588
- --------------------------------------------------------------------------------------
Capita Group plc 770,020 5,253,146
- --------------------------------------------------------------------------------------
Prosegur Compania
de Seguridad SA 205,149 3,744,516
- --------------------------------------------------------------------------------------
Randstad
Holding NV 108,383 4,164,038
----------------
18,730,022
- --------------------------------------------------------------------------------------
CONSTRUCTION & ENGINEERING--1.2%
Koninklijke Boskalis
Westminster NV 68,543 2,003,752
- --------------------------------------------------------------------------------------
Leighton Holdings
Ltd. 547,231 4,641,660
- --------------------------------------------------------------------------------------
Vinci 42,460 5,257,975
----------------
11,903,387
- --------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--1.2%
Ushio, Inc. 672,000 12,303,076
- --------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES--2.5%
Aalberts Industries
NV 394,227 16,168,035
- --------------------------------------------------------------------------------------
Siemens AG 113,152 9,063,063
----------------
25,231,098
- --------------------------------------------------------------------------------------
MACHINERY--0.7%
Hyundai Heavy
Industries Co. Ltd. 259,846 7,440,088
- --------------------------------------------------------------------------------------
INFORMATION TECHNOLOGY--18.4%
- --------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT--3.1%
Nokia Oyj 355,600 5,786,272
- --------------------------------------------------------------------------------------
Telefonaktiebolaget
LM Ericsson,
B Shares 1 7,959,600 26,541,479
----------------
32,327,751
- --------------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS--0.6%
- --------------------------------------------------------------------------------------
Logitech
International SA 1 99,935 5,852,484
- --------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS--6.9%
Electrocomponents
plc 1,166,910 6,533,626
- --------------------------------------------------------------------------------------
Epcos AG 1 351,617 5,576,555
- --------------------------------------------------------------------------------------
Keyence Corp. 38,100 8,626,695
- --------------------------------------------------------------------------------------
Nidec Corp. 84,300 9,912,346
- --------------------------------------------------------------------------------------
Nippon Electric
Glass Co. Ltd. 340,000 8,854,769
- --------------------------------------------------------------------------------------
Omron Corp. 415,318 9,504,629
- --------------------------------------------------------------------------------------
Tandberg ASA 1,581,100 17,922,503
- --------------------------------------------------------------------------------------
TDK Corp. 61,800 4,438,093
----------------
71,369,216
- --------------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES--0.8%
Yahoo Japan Corp. 1 1,888 8,696,487
- --------------------------------------------------------------------------------------
IT SERVICES--3.0%
Amadeus Global
Travel Distribution
SA 807,600 7,042,970
- --------------------------------------------------------------------------------------
Infosys
Technologies Ltd. 357,576 17,210,673
- --------------------------------------------------------------------------------------
NIIT Ltd. 445,600 1,526,431
- --------------------------------------------------------------------------------------
NIIT Technologies
Ltd. 1 668,400 2,340,561
- --------------------------------------------------------------------------------------
United Internet AG 88,125 2,307,922
----------------
30,428,557
21 | OPPENHEIMER INTERNATIONAL GROWTH FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------------
OFFICE ELECTRONICS--2.2%
Canon, Inc. 269,000 $ 13,488,557
- --------------------------------------------------------------------------------------
Konica Minolta
Holdings, Inc. 676,000 8,684,437
----------------
22,172,994
- --------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT--1.2%
ASM International NV 1 517,000 8,220,300
- --------------------------------------------------------------------------------------
Samsung
Electronics Co. 9,900 4,098,666
----------------
12,318,966
- --------------------------------------------------------------------------------------
SOFTWARE--0.6%
Autonomy Corp.
plc 1 954,869 2,764,431
- --------------------------------------------------------------------------------------
Business Objects SA 1 114,230 2,677,245
- --------------------------------------------------------------------------------------
UBISoft
Entertainment SA 1 56,236 1,201,396
----------------
6,643,072
- --------------------------------------------------------------------------------------
MATERIALS--3.4%
- --------------------------------------------------------------------------------------
CHEMICALS--0.5%
Sika AG 1 7,848 4,637,329
- --------------------------------------------------------------------------------------
METALS & MINING--2.9%
Companhia Vale
do Rio Doce,
Sponsored ADR 608,400 12,618,216
- --------------------------------------------------------------------------------------
Impala Platinum
Holdings Ltd. 114,700 9,775,120
- --------------------------------------------------------------------------------------
Rio Tinto plc 254,500 7,455,542
----------------
29,848,878
- --------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES--5.2%
- --------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES--5.2%
KDDI Corp. 2,379 11,744,152
- --------------------------------------------------------------------------------------
SK Telecom Co.
Ltd., ADR 234,234 5,272,607
- --------------------------------------------------------------------------------------
Telecom Italia
Mobile SpA 1,198,200 7,948,507
- --------------------------------------------------------------------------------------
Vodafone Group
plc 10,503,223 28,501,008
----------------
53,466,274
----------------
Total Common Stocks
(Cost $755,919,698) 1,018,563,753
- --------------------------------------------------------------------------------------
PREFERRED STOCKS--0.8%
- --------------------------------------------------------------------------------------
Ceres Group, Inc.:
$4.00 Cv., Series C-1 1,4 44,515 289,348
Cv., Series C 1,4 600,000 3,900,000
Cv., Series D 1,4 418,000 2,717,000
Oxagen Ltd., Cv. 1,4 2,142,875 1,433,224
----------------
Total Preferred Stocks
(Cost $7,296,760) 8,339,572
UNITS
- --------------------------------------------------------------------------------------
RIGHTS, WARRANTS AND CERTIFICATES--0.0%
- --------------------------------------------------------------------------------------
Ceres Group, Inc.:
Series C Wts., Exp
8/28/06 1,4 20,032 --
Series D Wts., Exp
12/31/30 1,4 41,800 --
----------------
Total Rights, Warrants
and Certificates (Cost $0) --
PRINCIPAL
AMOUNT
- --------------------------------------------------------------------------------------
JOINT REPURCHASE AGREEMENTS--1.4%
- --------------------------------------------------------------------------------------
Undivided interest of 2.57% in joint
repurchase agreement (Principal Amount/
Value $563,463,000, with a maturity value
of $563,494,147) with UBS Warburg LLC,
1.99%, dated 11/30/04, to be repurchased
at $14,487,801 on 12/1/04, collateralized
by Federal National Mortgage Assn.,
5%, 3/1/34, with a value
of $575,723,750
(Cost $14,487,000) $ 14,487,000 14,487,000
- --------------------------------------------------------------------------------------
TOTAL INVESTMENTS,
AT VALUE
(COST $777,703,458) 101.1% 1,041,390,325
- --------------------------------------------------------------------------------------
LIABILITIES IN EXCESS
OF OTHER ASSETS (1.1) (10,943,587)
-----------------------------------
NET ASSETS 100.0% $ 1,030,446,738
===================================
22 | OPPENHEIMER INTERNATIONAL GROWTH FUND
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 $4,885,704 or 0.47% of the Fund's net
assets as of November 30, 2004.
3. 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, 2004.
The aggregate fair value of securities of affiliated companies held by the Fund
as of November 30, 2004 amounts to $31,200,965.
Transactions during the period in which the issuer was an affiliate are as
follows:
UNREALIZED
SHARES GROSS GROSS SHARES APPRECIATION DIVIDEND
NOV. 30, 2003 ADDITIONS REDUCTIONS NOV. 30, 2004 (DEPRECIATION) INCOME
- -----------------------------------------------------------------------------------------------------------------------------
Art Advanced Research
Technologies, Inc. 1,901,125 -- -- 1,901,125 $(5,896,893) $ --
Art Advanced Research
Technologies, Inc. -- 389,400* -- 389,400 (249,794) --
Novogen Ltd. 6,323,015 -- 6,323,015 17,649,429 --
Ortivus AB, B Shares 710,800 -- -- 710,800 (5,735,968) --
----------------------------
$ 5,766,774 $ --
============================
*Received as the result of a corporate action.
4. Illiquid or restricted security. The aggregate value of illiquid or
restricted securities as of November 30, 2004, was $25,994,657, which represents
2.52% of the Fund's net assets, of which $9,942,679 is considered restricted.
See Note 6 of Notes to Financial Statements.
23 | OPPENHEIMER INTERNATIONAL GROWTH FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
DISTRIBUTION OF INVESTMENTS REPRESENTING GEOGRAPHIC HOLDINGS, AS A PERCENTAGE OF
TOTAL INVESTMENTS AT VALUE, IS AS FOLLOWS:
GEOGRAPHIC HOLDINGS VALUE PERCENT
- --------------------------------------------------------------------------------
Japan $ 187,607,150 18.0%
United Kingdom 157,113,146 15.1
France 133,041,602 12.8
Australia 71,969,492 6.9
Germany 64,999,547 6.2
Sweden 51,675,776 5.0
India 50,923,145 4.9
The Netherlands 47,893,247 4.6
Brazil 38,824,062 3.7
United States 37,261,251 3.6
Italy 31,559,394 3.0
Ireland 28,321,098 2.7
Korea, Republic of South 26,064,750 2.5
Norway 22,717,878 2.2
Switzerland 20,444,462 2.0
Denmark 19,146,234 1.8
Spain 16,491,384 1.6
South Africa 9,775,120 0.9
Mexico 8,543,444 0.8
Finland 5,786,272 0.6
Lebanon 5,350,262 0.5
Israel 3,950,144 0.4
Canada 1,931,465 0.2
---------------------------
Total $1,041,390,325 100.0%
===========================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
24 | OPPENHEIMER INTERNATIONAL GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES November 30, 2004
- --------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
ASSETS
- ---------------------------------------------------------------------------------------------------------
Investments, at value--see accompanying statement of investments:
Unaffiliated companies (cost $752,269,267) $ 1,010,189,360
Affiliated companies (cost $25,434,191) 31,200,965
----------------
1,041,390,325
- ---------------------------------------------------------------------------------------------------------
Cash 1,861,525
- ---------------------------------------------------------------------------------------------------------
Receivables and other assets:
Interest and dividends 1,769,250
Shares of beneficial interest sold 356,793
Other 20,087
----------------
Total assets 1,045,397,980
- ---------------------------------------------------------------------------------------------------------
LIABILITIES
- ---------------------------------------------------------------------------------------------------------
Unrealized depreciation on foreign currency contracts 811
- ---------------------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 11,546,556
Shares of beneficial interest redeemed 2,309,836
Distribution and service plan fees 399,793
Transfer and shareholder servicing agent fees 269,692
Trustees' compensation 179,601
Shareholder communications 156,360
Other 88,593
----------------
Total liabilities 14,951,242
- ---------------------------------------------------------------------------------------------------------
NET ASSETS $ 1,030,446,738
================
- ---------------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- ---------------------------------------------------------------------------------------------------------
Paid-in capital $ 1,153,192,567
- ---------------------------------------------------------------------------------------------------------
Accumulated net investment loss (11,837,657)
- ---------------------------------------------------------------------------------------------------------
Accumulated net realized loss on investments and foreign currency transactions (374,665,276)
- ---------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of assets and liabilities
denominated in foreign currencies 263,757,104
----------------
NET ASSETS $ 1,030,446,738
================
25 | OPPENHEIMER INTERNATIONAL GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES Continued
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
- ------------------------------------------------------------------------------------------
Class A Shares:
Net asset value and redemption price per share (based on net assets
of $686,313,005 and 37,726,262 shares of beneficial interest outstanding) $18.19
Maximum offering price per share (net asset value plus sales charge of
5.75% of offering price) $19.30
- ------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $166,973,451
and 9,632,307 shares of beneficial interest outstanding) $17.33
- ------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $144,529,383
and 8,334,677 shares of beneficial interest outstanding) $17.34
- ------------------------------------------------------------------------------------------
Class N Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $32,630,899
and 1,818,482 shares of beneficial interest outstanding) $17.94
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
26 | OPPENHEIMER INTERNATIONAL GROWTH FUND
STATEMENT OF OPERATIONS For the Year Ended November 30, 2004
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------
INVESTMENT INCOME
- ------------------------------------------------------------------------------------------
Dividends (net of foreign withholding taxes of $1,525,921) $ 14,978,937
- ------------------------------------------------------------------------------------------
Interest 173,663
--------------
Total investment income 15,152,600
- ------------------------------------------------------------------------------------------
EXPENSES
- ------------------------------------------------------------------------------------------
Management fees 7,098,777
- ------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 1,453,407
Class B 1,673,209
Class C 1,310,289
Class N 133,388
- ------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 3,224,528
Class B 637,025
Class C 434,990
Class N 122,080
- ------------------------------------------------------------------------------------------
Shareholder communications:
Class A 104,537
Class B 84,236
Class C 26,252
Class N 837
- ------------------------------------------------------------------------------------------
Custodian fees and expenses 306,108
- ------------------------------------------------------------------------------------------
Trustees' compensation 35,842
- ------------------------------------------------------------------------------------------
Other 72,419
--------------
Total expenses 16,717,924
Less reduction to custodian expenses (4,692)
Less payments and waivers of expenses (1,215,707)
--------------
Net expenses 15,497,525
- ------------------------------------------------------------------------------------------
NET INVESTMENT LOSS (344,925)
27 | OPPENHEIMER INTERNATIONAL GROWTH FUND
STATEMENT OF OPERATIONS Continued
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
- ------------------------------------------------------------------------------------------
Net realized gain (loss) on:
Investments $ (28,762,260)
Foreign currency transactions 37,878,976
--------------
Net realized gain 9,116,716
- ------------------------------------------------------------------------------------------
Net change in unrealized appreciation on:
Investments 104,751,633
Translation of assets and liabilities denominated in foreign currencies 31,288,175
--------------
Net change in unrealized appreciation 136,039,808
- ------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 144,811,599
==============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
28 | OPPENHEIMER INTERNATIONAL GROWTH FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
YEAR ENDED NOVEMBER 30, 2004 2003
- --------------------------------------------------------------------------------------------------
OPERATIONS
- --------------------------------------------------------------------------------------------------
Net investment loss $ (344,925) $ (672,881)
- --------------------------------------------------------------------------------------------------
Net realized gain (loss) 9,116,716 (153,689,727)
- --------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) 136,039,808 372,677,945
-------------------------------------
Net increase in net assets resulting from operations 144,811,599 218,315,337
- --------------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
- --------------------------------------------------------------------------------------------------
Dividends from net investment income:
Class A (6,767,655) (3,451,367)
Class B (1,084,899) (393,792)
Class C (837,758) (280,451)
Class N (241,976) (141,834)
- --------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
- --------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
beneficial interest transactions:
Class A 69,139,385 35,842,844
Class B (32,194,872) (31,008,777)
Class C 9,003,324 (2,213,224)
Class N 7,458,197 4,032,418
- --------------------------------------------------------------------------------------------------
NET ASSETS
- --------------------------------------------------------------------------------------------------
Total increase 189,285,345 220,701,154
- --------------------------------------------------------------------------------------------------
Beginning of period 841,161,393 620,460,239
-------------------------------------
End of period (including accumulated net investment loss
of $11,837,657 and $4,665,046, respectively) $ 1,030,446,738 $ 841,161,393
=====================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
29 | OPPENHEIMER INTERNATIONAL GROWTH FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
CLASS A YEAR ENDED NOVEMBER 30, 2004 2003 2002 2001 2000
- -------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 15.72 $ 11.63 $ 14.96 $ 19.77 $ 19.22
- -------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .04 1 .01 .12 .06 (.01)
Net realized and unrealized gain (loss) 2.63 4.19 (3.41) (3.93) .77
--------------------------------------------------------------------------
Total from investment operations 2.67 4.20 (3.29) (3.87) .76
- -------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.20) (.11) (.04) -- --
Distributions from net realized gain -- -- -- (.94) (.21)
--------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.20) (.11) (.04) (.94) (.21)
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 18.19 $ 15.72 $ 11.63 $ 14.96 $ 19.77
==========================================================================
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 17.18% 36.55% (22.04)% (20.58)% 3.92%
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $686,313 $528,363 $358,097 $535,615 $478,680
- -------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $598,265 $390,315 $512,319 $536,366 $418,537
- -------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 0.22% 0.18% 0.62% 0.62% 0.22%
Total expenses 1.61% 1.88% 1.64% 1.42% 1.38%
Expenses after payments and waivers and
reduction to custodian expenses 1.43% 1.42% 1.56% N/A 4,5 N/A 4
- -------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 37% 61% 46% 33% 61%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the redemption of Fund shares.
3. Annualized for periods of less than one full year.
4. Reduction to custodian expenses less than 0.01%.
5. Voluntary waiver of transfer agent fees less than 0.01%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
30 | OPPENHEIMER INTERNATIONAL GROWTH FUND
CLASS B YEAR ENDED NOVEMBER 30, 2004 2003 2002 2001 2000
- -------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 15.00 $ 11.10 $ 14.34 $ 19.14 $ 18.75
- -------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.09) 1 (.13) (.03) (.01) (.08)
Net realized and unrealized gain (loss) 2.51 4.06 (3.21) (3.85) .68
--------------------------------------------------------------------------
Total from investment operations 2.42 3.93 (3.24) (3.86) .60
- -------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.09) (.03) -- -- --
Distributions from net realized gain -- -- -- (.94) (.21)
--------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.09) (.03) -- (.94) (.21)
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 17.33 $ 15.00 $ 11.10 $ 14.34 $ 19.14
==========================================================================
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 16.25% 35.49% (22.59)% (21.23)% 3.16%
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $166,973 $174,959 $161,074 $230,085 $273,243
- -------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $167,441 $148,838 $200,304 $262,745 $276,393
- -------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment loss (0.57)% (0.55)% (0.12)% (0.15)% (0.56)%
Total expenses 2.24% 2.48% 2.39% 2.17% 2.14%
Expenses after payments and waivers and
reduction to custodian expenses 2.21% 2.19% 2.31% N/A 4,5 N/A 4
- -------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 37% 61% 46% 33% 61%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the redemption of Fund shares.
3. Annualized for periods of less than one full year.
4. Reduction to custodian expenses less than 0.01%.
5. Voluntary waiver of transfer agent fees less than 0.01%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
31 | OPPENHEIMER INTERNATIONAL GROWTH FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
CLASS C YEAR ENDED NOVEMBER 30, 2004 2003 2002 2001 2000
- -------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 15.01 $ 11.12 $ 14.37 $ 19.16 $ 18.77
- -------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.08) 1 (.08) (.01) -- 2 (.04)
Net realized and unrealized gain (loss) 2.52 4.01 (3.24) (3.85) .64
--------------------------------------------------------------------------
Total from investment operations 2.44 3.93 (3.25) (3.85) .60
- -------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.11) (.04) -- -- --
Distributions from net realized gain -- -- -- (.94) (.21)
--------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.11) (.04) -- (.94) (.21)
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 17.34 $ 15.01 $ 11.12 $ 14.37 $ 19.16
==========================================================================
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 16.34% 35.44% (22.62)% (21.16)% 3.16%
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $144,529 $116,659 $ 89,456 $114,084 $113,230
- -------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $131,125 $ 90,532 $106,551 $122,775 $ 98,110
- -------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment loss (0.52)% (0.59)% (0.12)% (0.14)% (0.53)%
Total expenses 2.16% 2.38% 2.37% 2.17% 2.14%
Expenses after payments and waivers and
reduction to custodian expenses N/A 5,6 2.22% 2.29% N/A 5,6 N/A 5
- -------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 37% 61% 46% 33% 61%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Less than $0.005 per share.
3. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the redemption of Fund shares.
4. Annualized for periods of less than one full year.
5. Reduction to custodian expenses less than 0.01%.
6. Voluntary waiver of transfer agent fees less than 0.01%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
32 | OPPENHEIMER INTERNATIONAL GROWTH FUND
CLASS N YEAR ENDED NOVEMBER 30, 2004 2003 2002 2001 1
- -------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 15.51 $ 11.55 $ 14.93 $ 18.74
- -------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) -- 2,3 .02 .09 .01
Net realized and unrealized gain (loss) 2.60 4.08 (3.38) (3.82)
--------------------------------------------------------
Total from investment operations 2.60 4.10 (3.29) (3.81)
- -------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.17) (.14) (.09) --
Distributions from net realized gain -- -- -- --
--------------------------------------------------------
Total dividends and/or distributions
to shareholders (.17) (.14) (.09) --
- -------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 17.94 $ 15.51 $ 11.55 $ 14.93
========================================================
- -------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 4 16.94% 36.01% (22.18)% (20.33)%
- -------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $32,631 $21,180 $11,833 $ 3,102
- -------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $26,738 $14,722 $ 9,195 $ 1,152
- -------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 5
Net investment income (loss) (0.02)% (0.16)% 0.19% 0.18%
Total expenses 1.77% 1.90% 1.80% 1.74%
Expenses after payments and waivers and
reduction to custodian expenses 1.66% 1.73% 1.72% N/A 6,7
- -------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 37% 61% 46% 33%
1. For the period from March 1, 2001 (inception of offering) to November 30,
2001.
2. Per share amounts calculated based on the average shares outstanding during
the period.
3. Less than $0.005 per share.
4. 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.
5. Annualized for periods of less than one full year.
6. Reduction to custodian expenses less than 0.01%.
7. Voluntary waiver of transfer agent fees less than 0.01%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
33 | 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 with respect to the Fund in
general and exclusive voting rights on matters that affect that class alone.
Earnings, net assets and net asset value per share may differ due to each class
having its own expenses, such as transfer and shareholder servicing agent fees
and shareholder communications, directly attributable to that class. Class A, B,
C and N have separate distribution and/or service plans. 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
34 | OPPENHEIMER INTERNATIONAL GROWTH FUND
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.
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.
35 | OPPENHEIMER INTERNATIONAL GROWTH FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
The tax components of capital shown in the table below represent distribution
requirements the Fund must satisfy under the income tax regulations, losses the
Fund may be able to offset against income and gains realized in future years and
unrealized appreciation or depreciation of securities and other investments for
federal income tax purposes.
NET UNREALIZED
APPRECIATION
BASED ON COST OF
SECURITIES AND
UNDISTRIBUTED UNDISTRIBUTED ACCUMULATED OTHER INVESTMENTS
NET INVESTMENT LONG-TERM LOSS FOR FEDERAL INCOME
INCOME GAIN CARRYFORWARD 1,2,3,4 TAX PURPOSES
--------------------------------------------------------------------------
$4,431,536 $ -- $363,074,074 $236,071,351
1. As of November 30, 2004, the Fund had $363,073,900 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, 2004,
details of the capital loss carryforwards were as follows:
EXPIRING
----------------------------
2009 $ 76,651,058
2010 110,808,862
2011 175,613,980
------------
Total $363,073,900
============
2. The Fund had $174 of post-October foreign currency losses which were
deferred.
3. During the fiscal year ended November 30, 2004, the Fund utilized $4,192,154
of capital loss carryforward to offset capital gains realized in that fiscal
year.
4. During the fiscal year ended November 30, 2003, the Fund did not utilize any
capital loss carryforward.
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, 2004. Net assets of
the Fund were unaffected by the reclassifications.
INCREASE TO
REDUCTION TO ACCUMULATED NET
ACCUMULATED NET REALIZED LOSS
INVESTMENT LOSS ON INVESTMENTS
------------------------------------------------
$2,104,602 $2,104,602
The tax character of distributions paid during the years ended November 30, 2004
and November 30, 2003 was as follows:
YEAR ENDED YEAR ENDED
NOVEMBER 30, 2004 NOVEMBER 30, 2003
--------------------------------------------------------------------
Distributions paid from:
Ordinary income $8,932,288 $4,267,444
36 | OPPENHEIMER INTERNATIONAL GROWTH FUND
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, 2004 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 $ 805,389,211
Federal tax cost of other investments 2,198,998
-------------
Total federal tax cost $ 807,588,209
=============
Gross unrealized appreciation $ 273,271,037
Gross unrealized depreciation (37,199,686)
-------------
Net unrealized appreciation $ 236,071,351
=============
- --------------------------------------------------------------------------------
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, 2004, the Fund's projected benefit obligations were increased by $10,950 and
payments of $9,160 were made to retired trustees, resulting in an accumulated
liability of $156,432 as of November 30, 2004.
The Board of Trustees has adopted a deferred compensation plan for
independent trustees that enables trustees to elect to defer receipt of all or a
portion of the annual compensation they are entitled to receive from the Fund.
For purposes of determining the amount owed to the Trustee under the plan,
deferred amounts are treated as though equal dollar amounts had been invested in
shares of the Fund or in other Oppenheimer funds selected by the Trustee. The
Fund purchases shares of the funds selected for deferral by the Trustee in
amounts equal to his or her deemed investment, resulting in a Fund asset equal
to the deferred compensation liability. Such assets are included as a component
of "Other" within the asset section of the Statement of Assets and Liabilities.
Deferral of trustees' fees under the plan will not affect the net assets of the
Fund, and will not materially affect the Fund's assets, liabilities or net
investment income per share. Amounts will be deferred until distributed in
accordance to the Plan.
- --------------------------------------------------------------------------------
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.
37 | OPPENHEIMER INTERNATIONAL GROWTH FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
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.
- --------------------------------------------------------------------------------
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, 2004 YEAR ENDED NOVEMBER 30, 2003
SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------------------------------------------
CLASS A
Sold 19,377,829 $ 323,265,209 40,205,063 $ 471,582,861
Dividends and/or
distributions reinvested 364,291 5,755,789 273,353 2,963,156
Redeemed (15,635,357) (259,881,613) 1 (37,646,102) (438,703,173)
------------------------------------------------------------------
Net increase 4,106,763 $ 69,139,385 2,832,314 $ 35,842,844
==================================================================
- ------------------------------------------------------------------------------------------------
CLASS B
Sold 2,003,862 $ 32,149,130 2,549,035 $ 30,239,637
Dividends and/or
distributions reinvested 61,977 940,197 32,768 341,309
Redeemed (4,100,867) (65,284,199) 1 (5,425,773) (61,589,723)
------------------------------------------------------------------
Net decrease (2,035,028) $ (32,194,872) (2,843,970) $ (31,008,777)
==================================================================
- ------------------------------------------------------------------------------------------------
CLASS C
Sold 2,301,953 $ 36,724,240 3,339,291 $ 38,386,072
Dividends and/or
distributions reinvested 45,549 690,983 21,255 221,691
Redeemed (1,786,385) (28,411,899) 1 (3,631,625) (40,820,987)
------------------------------------------------------------------
Net increase (decrease) 561,117 $ 9,003,324 (271,079) $ (2,213,224)
==================================================================
1. Net of redemption fees of $4,905, $1,373, $1,075 and $219 for Class A, Class
B, Class C and Class N, respectively.
38 | OPPENHEIMER INTERNATIONAL GROWTH FUND
YEAR ENDED NOVEMBER 30, 2004 YEAR ENDED NOVEMBER 30, 2003
SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------------------------------------------
CLASS N
Sold 1,087,688 $ 17,969,575 1,277,146 $ 14,871,049
Dividends and/or
distributions reinvested 14,836 231,750 12,795 137,297
Redeemed (649,373) (10,743,128) 1 (949,418) (10,975,928)
------------------------------------------------------------------
Net increase 453,151 $ 7,458,197 340,523 $ 4,032,418
==================================================================
1. Net of redemption fees of $4,905, $1,373, $1,075 and $219 for Class A, Class
B, Class C and Class N, 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 year ended November 30, 2004, were
$404,032,827 and $337,900,529, 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, 2004, the Fund paid
$3,161,516 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 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, CLASS C AND CLASS N SHARES. The Fund
has adopted Distribution and Service Plans for Class B, Class C and Class N
shares to compensate the Distributor for its services in connection with the
distribution of those shares and servicing accounts. Under the plans, the Fund
pays the Distributor an annual
39 | OPPENHEIMER INTERNATIONAL GROWTH FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued
asset-based sales charge of 0.75% per year on Class B and Class C shares and
0.25% per year on Class N shares. The Distributor also receives a service fee of
up to 0.25% per year under each plan. If either the Class B, Class C or Class N
plan is terminated by the Fund or by the shareholders of a class, the Board of
Trustees and its independent trustees must determine whether the Distributor
shall be entitled to payment from the Fund of all or a portion of the service
fee and/or asset-based sales charge in respect to shares sold prior to the
effective date of such termination. The Distributor's aggregate uncompensated
expenses under the plan at November 30, 2004 for Class B, Class C and Class N
shares were $3,665,185, $2,688,687 and $259,097, 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 N
CLASS A CONTINGENT CONTINGENT CONTINGENT CONTINGENT
FRONT-END DEFERRED DEFERRED DEFERRED DEFERRED
SALES CHARGES SALES CHARGES SALES CHARGES SALES CHARGES SALES CHARGES
RETAINED BY RETAINED BY RETAINED BY RETAINED BY RETAINED BY
YEAR ENDED DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR
- -----------------------------------------------------------------------------------------------------------
November 30, 2004 $339,998 $7,830 $359,551 $24,245 $30,206
- --------------------------------------------------------------------------------
PAYMENTS AND WAIVERS OF EXPENSES. OFS has voluntarily agreed to limit transfer
and shareholder servicing agent fees for all classes to 0.35% of average annual
net assets per class. During the year ended November 30, 2004, OFS waived
$1,121,718, $63,400, $2,194 and $28,395 for Class A, Class B, Class C and Class
N 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.
40 | OPPENHEIMER INTERNATIONAL GROWTH FUND
The Fund may realize a gain or loss upon the closing or settlement of the
foreign transaction. Contracts closed or settled with the same broker are
recorded as net realized gains or losses. Such realized gains and losses are
reported with all other foreign currency gains and losses in the Statement of
Operations.
As of November 30, 2004, the Fund had outstanding foreign currency contracts as
follows:
CONTRACT VALUATION AS OF
EXPIRATION AMOUNT NOVEMBER 30, UNREALIZED
CONTRACT DESCRIPTION DATES (000S) 2004 DEPRECIATION
- ---------------------------------------------------------------------------------------------------------
CONTRACTS TO PURCHASE
Euro (EUR) 12/1/04 1,498EUR $1,990,982 $599
Japanese Yen (JPY) 12/1/04 21,322JPY 207,205 212
----
Total unrealized depreciation $811
====
- --------------------------------------------------------------------------------
6. ILLIQUID OR RESTRICTED SECURITIES
As of November 30, 2004, investments in securities included issues that are
illiquid or restricted. Restricted securities are purchased in private placement
transactions, are not registered under the Securities Act of 1933, may have
contractual restrictions on resale, and are valued under methods approved by the
Board of Trustees as reflecting fair value. A security may also be considered
illiquid if it lacks a readily available market or if its valuation has not
changed for a certain period of time. The Fund will not invest more than 10% of
its net assets (determined at the time of purchase and reviewed periodically) in
illiquid or restricted securities. Certain restricted securities, eligible for
resale to qualified institutional investors, are not subject to that limitation.
Information concerning restricted securities is as follows:
VALUATION AS OF UNREALIZED
ACQUISITION NOVEMBER 30, APPRECIATION
SECURITY DATES COST 2004 (DEPRECIATION)
- ---------------------------------------------------------------------------------------------------------------------
STOCKS AND/OR WARRANTS
Art Advanced Research
Technologies, Inc. 6/19/01 $ 7,500,000 $ 1,603,107 $(5,896,893)
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 Group, Inc., $4.00 Cv., Series C-1 2/6/01 178,060 289,348 111,288
Ceres Group, Inc., Cv., Series C 1/6/99 2,400,000 3,900,000 1,500,000
Ceres Group, Inc., Cv., Series D 3/15/01 2,508,000 2,717,000 209,000
Oxagen Ltd., Cv 12/20/00 2,210,700 1,433,224 (777,476)
41 | OPPENHEIMER INTERNATIONAL GROWTH FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
7. LITIGATION
A consolidated amended complaint has 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 31 present and former Directors/Trustees
(collectively, the "Directors/Trustees") and nine present and former officers
(collectively, the "Officers") of certain of the Funds. This complaint, filed in
the U.S. District Court for the Southern District of New York on January 10,
2005, consolidates into a single action and amends six individual
previously-filed putative derivative and class action complaints. Like those
prior complaints, the consolidated amended complaint alleges 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. Also like those prior
complaints, the consolidated amended complaint further alleges that by
permitting and/or participating in those actions, the Directors/Trustees and the
Officers breached their fiduciary duties to Fund shareholders under the
Investment Company Act of 1940 and at common law. The complaint seeks
unspecified compensatory and punitive damages, rescission of the Funds'
investment advisory agreements, an accounting of all fees paid, and an award of
attorneys' fees and litigation expenses.
OppenheimerFunds believes that it is premature to render any opinion as to
the likelihood of an outcome unfavorable to them, the Funds, the
Directors/Trustees or the Officers 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 believes that the allegations contained in the complaints are
without merit and intends to defend these lawsuits vigorously.
42 | OPPENHEIMER INTERNATIONAL GROWTH FUND
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
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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, 2004, 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 the standards of the Public
Company Accounting Oversight Board (United States). Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. Our procedures included
confirmation of securities owned as of November 30, 2004, 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, 2004, 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 U.S. generally
accepted accounting principles.
KPMG LLP
Denver, Colorado
January 11, 2005
43 | OPPENHEIMER INTERNATIONAL GROWTH FUND
FEDERAL INCOME TAX INFORMATION Unaudited
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In early 2005, if applicable, shareholders of record will receive information
regarding all dividends and distributions paid to them by the Fund during
calendar year 2004. Regulations of the U.S. Treasury Department require the Fund
to report this information to the Internal Revenue Service.
Dividends of $0.2008, $0.0941, $0.1067 and $0.1715 per share were paid to
Class A, Class B, Class C and Class N shareholders, respectively, on December
18, 2003, all of which as ordinary income for federal income tax purposes.
Dividends, if any, paid by the Fund during the fiscal year ended November
30, 2004 which are not designated as capital gain distributions should be
multiplied by 1.38% 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, 2004 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. $13,027,354 of the Fund's fiscal year taxable income may be
eligible for the lower individual income tax rates. In early 2005, 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
$1,651,320 of foreign income taxes paid by the Fund during the fiscal year ended
November 30, 2004. A separate notice will be mailed to each shareholder, which
will reflect the proportionate share of such foreign taxes 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.
44 | OPPENHEIMER INTERNATIONAL GROWTH FUND
PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES;
UPDATES TO STATEMENTS OF INVESTMENTS Unaudited
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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.
45 | OPPENHEIMER INTERNATIONAL GROWTH FUND
TRUSTEES AND OFFICERS Unaudited
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NAME, POSITION(S) HELD WITH PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS; OTHER TRUSTEESHIPS/DIRECTORSHIPS HELD
FUND, LENGTH OF SERVICE, AGE BY TRUSTEE; NUMBER OF PORTFOLIOS IN FUND COMPLEX CURRENTLY OVERSEEN BY TRUSTEE
INDEPENDENT THE ADDRESS OF EACH TRUSTEE IN THE CHART BELOW IS 6803 S. TUCSON WAY, CENTENNIAL,
TRUSTEES CO 80112-3924. EACH TRUSTEE SERVES FOR AN INDEFINITE TERM, UNTIL HIS OR HER
RESIGNATION, RETIREMENT, DEATH OR REMOVAL.
CLAYTON K. YEUTTER, Of Counsel (since June 1993) Hogan & Hartson (a law firm); a director (since
Chairman of the Board 2002) of Danielson Holding Corp. Formerly a director of Weyerhaeuser Corp.
of Trustees (since 2003); (1999-April 2004), Caterpillar, Inc. (1993-December 2002), ConAgra Foods
Trustee (since 1996) (1993-2001), Texas Instruments (1993-2001) and FMC Corporation (1993-2001).
Age: 74 Oversees 25 portfolios in the OppenheimerFunds complex.
ROBERT G. GALLI, A trustee or director of other Oppenheimer funds. Oversees 35 portfolios in the
Trustee (since 1996) OppenheimerFunds complex.
Age: 71
PHILLIP A. GRIFFITHS, A director (since 1991) of the Institute for Advanced Study, Princeton, N.J.,
Trustee (since 1999) a director (since 2001) of GSI Lumonics, a trustee (since 1983) of Woodward
Age: 66 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.
MARY F. MILLER, Formerly a Senior Vice President and General Auditor, American Express
Trustee (since 2004) Company (July 1998-February 2003). Member of Trustees of the American
Age: 62 Symphony Orchestra (October 1998 to present). Oversees 25 portfolios in
the OppenheimerFunds complex.
JOEL W. MOTLEY, Director (since January 2002) Columbia Equity Financial Corp. (privately-held
Trustee (since 2002) financial adviser); Managing Director (since January 2002) Carmona Motley, Inc.
Age: 52 (privately-held financial adviser). Formerly a Managing Director of Carmona
Motley Hoffman Inc. (privately-held financial adviser) (January 1998-December
2001). Oversees 25 portfolios in the OppenheimerFunds complex.
KENNETH A. RANDALL, A director (since February 1972) of Dominion Resources, Inc. (electric utility
Trustee (since 1996) holding company); formerly a director of Prime Retail, Inc. (real estate
Age: 77 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 RBAsset (real estate manager); a
Trustee (since 1996) director of OffitBank; formerly Trustee, Financial Accounting Foundation (FASB
Age: 74 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.
46 | OPPENHEIMER INTERNATIONAL GROWTH FUND
RUSSELL S. REYNOLDS, JR., Chairman (since 1993) of The Directorship Search Group, Inc. (corporate
Trustee (since 1996) governance consulting and executive recruiting); a Life Trustee of International
Age: 73 House (non-profit educational organization); a former trustee of The Historical
Society of the Town of Greenwich. Oversees 25 portfolios in the OppenheimerFunds
complex.
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OFFICERS THE ADDRESS OF THE OFFICERS IN THE CHART BELOW IS AS FOLLOWS: FOR MESSRS. EVANS,
MURPHY AND ZACK, TWO WORLD FINANCIAL CENTER, 225 LIBERTY STREET, 11TH FLOOR, NEW
YORK, NY 10281-1008, AND FOR MR. WIXTED AND MR. VANDEHEY, 6803 S. TUCSON WAY,
CENTENNIAL, CO 80112-3924. EACH OFFICER SERVES FOR AN INDEFINITE TERM OR UNTIL HIS
EARLIER RESIGNATION, DEATH OR REMOVAL.
JOHN V. MURPHY, Chairman, Chief Executive Officer and director (since June 2001) and President
President (since 2001) (since September 2000) of the Manager; President and a director or trustee
Age: 55 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 following investment advisory subsidiaries of the
Manager: OFI Institutional Asset Management, Inc., Centennial Asset Management
Corporation, Trinity Investment Management Corporation and Tremont Capital
Management, Inc. (since November 2001), HarbourView Asset Management Corporation
and OFI Private Investments, Inc. (since July 2001); President (since
November 1, 2001) and a director (since July 2001) of Oppenheimer Real
Asset Management, Inc.; 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 Babson Capital Management LLC); a member
of the Investment Company Institute's Board of Governors (elected to serve
from October 3, 2003 through September 30, 2006). 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 63 portfolios as Trustee/Director and 21 additional
portfolios as Officer in the OppenheimerFunds complex.
GEORGE EVANS, Vice President (since October 1993) and Director of International Equities
Vice President and Portfolio (since July 2004) of the Manager. Formerly Vice President of HarbourView Asset
Manager (since 1996) Management Corporation (July 1994-November 2001); an officer of 2 portfolios
Age: 45 in the OppenheimerFunds complex.
47 | OPPENHEIMER INTERNATIONAL GROWTH FUND
TRUSTEES AND OFFICERS Unaudited / Continued
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BRIAN W. WIXTED, Senior Vice President and Treasurer (since March 1999) of the Manager;
Treasurer (since 1999) Treasurer of HarbourView Asset Management Corporation, Shareholder Financial
Age: 45 Services, Inc., Shareholder Services, Inc., Oppenheimer Real Asset Management
Corporation, and Oppenheimer Partnership Holdings, Inc. (since March 1999),
of OFI Private Investments, Inc. (since March 2000), of OppenheimerFunds
International Ltd. and OppenheimerFunds plc (since May 2000), of OFI Institutional
Asset Management, Inc. (since November 2000), and of OppenheimerFunds
Legacy Program (a Colorado non-profit corporation) (since June 2003); Treasurer
and Chief Financial Officer (since May 2000) of OFI Trust Company (a trust
company subsidiary of the Manager); Assistant Treasurer (since March 1999) of
Oppenheimer Acquisition Corp. Formerly Assistant Treasurer of Centennial Asset
Management Corporation (March 1999-October 2003) and OppenheimerFunds
Legacy Program (April 2000-June 2003); Principal and Chief Operating Officer
(March 1995-March 1999) at Bankers Trust Company-Mutual Fund Services
Division. An officer of 84 portfolios in the OppenheimerFunds complex.
ROBERT G. ZACK, Executive Vice President (since January 2004) and General Counsel (since
Secretary (since 2001) February 2002) of the Manager; General Counsel and a director (since November
Age: 56 2001) of the Distributor; General Counsel (since November 2001) of Centennial
Asset Management Corporation; Senior Vice President and General Counsel
(since November 2001) of HarbourView Asset Management Corporation;
Secretary and General Counsel (since November 2001) of Oppenheimer
Acquisition Corp.; Assistant Secretary and a director (since October 1997) of
OppenheimerFunds International Ltd. and OppenheimerFunds plc; Vice President
and a director (since November 2001) of Oppenheimer Partnership Holdings,
Inc.; a director (since November 2001) of Oppenheimer Real Asset Management,
Inc.; Senior Vice President, General Counsel and a director (since November 2001)
of Shareholder Financial Services, Inc., Shareholder Services, Inc., OFI Private
Investments, Inc. and OFI Trust Company; Vice President (since November 2001)
of OppenheimerFunds Legacy Program; Senior Vice President and General
Counsel (since November 2001) of OFI Institutional Asset Management, Inc.; a
director (since June 2003) of OppenheimerFunds (Asia) Limited. Formerly Senior
Vice President (May 1985-December 2003), Acting General Counsel (November
2001-February 2002) and Associate General Counsel (May 1981-October 2001)
of the Manager; Assistant Secretary of Shareholder Services, Inc. (May 1985-
November 2001), Shareholder Financial Services, Inc. (November 1989-November
2001); and OppenheimerFunds International Ltd. (October 1997-November
2001). An officer of 84 portfolios in the OppenheimerFunds complex.
MARK S. VANDEHEY, Senior Vice President and Chief Compliance Officer (since March 2004) of the
Vice President and Chief Manager; Vice President (since June 1983) of OppenheimerFunds Distributor,
Compliance Officer Inc., Centennial Asset Management Corporation and Shareholder Services, Inc.
(since 2004) Formerly (until February 2004) Vice President and Director of Internal Audit of
Age: 54 the Manager. An officer of 84 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, BY
CALLING 1.800.525.7048.
48 | OPPENHEIMER INTERNATIONAL GROWTH FUND
ITEM 2. CODE OF ETHICS
The registrant has adopted a code of ethics that applies to the
registrant's principal executive officer, principal financial officer, principal
accounting officer or controller or persons performing similar functions.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
The Board of Trustees of the registrant has determined that Edward V.
Regan, the Chairman of the Board's Audit Committee, possesses the technical
attributes identified in Instruction 2(b) of Item 3 to Form N-CSR to qualify as
an "audit committee financial expert," and has designated Mr. Regan as the Audit
Committee's financial expert. Mr. Regan is an "independent" Trustee pursuant to
paragraph (a)(2) of Item 3 to Form N-CSR.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
(a) Audit Fees
The principal accountant for the audit of the registrant's annual financial
statements billed $18,000 in fiscal 2004 and $15,000 in fiscal 2003.
(b) Audit-Related Fees
The principal accountant for the audit of the registrant's annual financial
statements billed no such fees during the last two fiscal years.
The principal accountant for the audit of the registrant's annual financial
statements billed $39,500 in fiscal 2004 and no such fees in fiscal 2003 to
the registrant's investment adviser or any entity controlling, controlled
by, or under common control with the adviser that provides ongoing services
to the registrant.
Such fees would include, among others: internal control reviews.
(c) Tax Fees
The principal accountant for the audit of the registrant's annual financial
statements billed no such fees in fiscal 2004 and $5,315 in fiscal 2003 to
the registrant during the last two fiscal years.
The principal accountant for the audit of the registrant's annual financial
statements billed $6,000 in fiscal 2004 and $5,000 in fiscal 2003 to the
registrant's investment adviser or any entity controlling, controlled by,
or under common control with the adviser that provides ongoing services to
the registrant.
Such fees would include, among others: tax compliance, tax planning and tax
advice. Tax compliance generally involves preparation of original and
amended tax returns, claims for a refund and tax payment-planning services.
Tax planning and tax advice includes assistance with tax audits and
appeals, tax advice related to mergers and acquisitions and requests for
rulings or technical advice from taxing authorities.
(d) All Other Fees
The principal accountant for the audit of the registrant's annual financial
statements billed no such fees in fiscal 2004 and $143 in fiscal 2003.
The principal accountant for the audit of the registrant's annual financial
statements billed no such fees during the last two fiscal years to the
registrant's investment adviser or any entity controlling, controlled by,
or under common control with the adviser that provides ongoing services to
the registrant.
Such fees include consultations regarding the registrant's retirement plan
with respect to its trustees.
(e) (1) During its regularly scheduled periodic meetings, the registrant's
audit committee will pre-approve all audit, audit-related, tax and
other services to be provided by the principal accountants of the
registrant.
The audit committee has delegated pre-approval authority to its
Chairman for any subsequent new engagements that arise between
regularly scheduled meeting dates provided that any fees such
pre-approved are presented to the audit committee at its next regularly
scheduled meeting.
Pre-approval of non-audit services is waived provided that: 1) the
aggregate amount of all such services provided constitutes no more than
five percent of the total amount of fees paid by the registrant to it
principal accountant during the fiscal year in which services are
provided 2) such services were not recognized by the registrant at the
time of engagement as non-audit services and 3) such services are
promptly brought to the attention of the audit committee of the
registrant and approved prior to the completion of the audit.
(2) 100%
(f) Not applicable as less than 50%.
(g) The principal accountant for the audit of the registrant's annual financial
statements billed $45,500 in fiscal 2004 and $10,458 in fiscal 2003 to the
registrant and the registrant's investment adviser or any entity
controlling, controlled by, or under common control with the adviser that
provides ongoing services to the registrant related to non-audit fees.
Those billings did not include any prohibited non-audit services as defined
by the Securities Exchange Act of 1934.
(h) The registrant's audit committee of the board of trustees has considered
whether the provision of non-audit services that were rendered to the
registrant's investment adviser, and any entity controlling, controlled by,
or under common control with the investment adviser that provides ongoing
services to the registrant that were not pre-approved pursuant to paragraph
(c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining
the principal account's independence. No such services were rendered.
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
At a meeting of the Board of Trustees of the registrant held on February
18, 2004, the Board adopted (1) a policy that, should the Board determine that a
vacancy exists or is likely to exist on the Board, the Governance Committee of
the Board, which is comprised entirely of independent trustees, shall consider
any candidates for Board membership recommended by the registrant's security
holders and (2) a policy that security holders wishing to submit a nominee for
election to the Board may do so by mailing their submission to the offices of
OppenheimerFunds, Inc., Two World Financial Center, 225 Liberty Street - 11th
Floor, New York, NY 10281-1008, to the attention of the Chair of the Governance
Committee. Prior to February 18, 2004, the Board did not have a formalized
policy with respect to consideration of security holder nominees or a procedure
by which security holders may make their submissions. In addition to security
holder nominees, the Governance Committee may also consider nominees recommended
by independent Board members or recommended by any other Board members and is
authorized under its Charter, upon Board approval, to retain an executive search
firm to assist in screening potential candidates. Upon Board approval, the
Governance Committee may also obtain legal, financial, or other external counsel
that may be necessary or desirable in the screening process.
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 November 30, 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)