UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-07489
Oppenheimer International Growth Fund
-------------------------------------
(Exact name of registrant as specified in charter)
6803 South Tucson Way, Centennial, Colorado 80112-3924
------------------------------------------------------
(Address of principal executive offices) (Zip code)
Robert G. Zack, Esq.
OppenheimerFunds, Inc.
Two World Financial Center, New York, New York 10281-1008
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(Name and address of agent for service)
Registrant's telephone number, including area code: (303) 768-3200
Date of fiscal year end: NOVEMBER 30
Date of reporting period: DECEMBER 1, 2004 - MAY 31, 2005
ITEM 1. REPORTS TO STOCKHOLDERS.
TOP HOLDINGS AND ALLOCATIONS
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TOP TEN GEOGRAPHICAL HOLDINGS
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United Kingdom 18.1%
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Japan 16.7
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France 12.5
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Australia 7.1
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Germany 5.9
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Switzerland 5.1
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Sweden 4.6
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The Netherlands 4.2
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India 3.6
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Brazil 2.9
Portfolio holdings and allocations are subject to change. Percentages are as of
May 31, 2005, and are based on total market value of investments.
TOP TEN COMMON STOCK HOLDINGS
- --------------------------------------------------------------------------------
Vodafone Group plc 2.6%
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Novogen Ltd. 2.5
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Telefonaktiebolaget LM Ericsson, B Shares 2.3
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Mitsubishi Tokyo Financial Group, Inc. 1.9
- --------------------------------------------------------------------------------
Anglo Irish Bank Corp. 1.9
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The Royal Bank of Scotland Group plc 1.9
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Hennes & Mauritz AB, B Shares 1.7
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Continental AG 1.7
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Technip SA 1.7
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Empresa Brasileira de Aeronatica SA, Preference 1.7
Portfolio holdings and allocations are subject to change. Percentages are as of
May 31, 2005, and are based on net assets. For up-to-date Top 10 Fund holdings,
please visit www.oppenheimerfunds.com.
10 | OPPENHEIMER INTERNATIONAL GROWTH FUND
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REGIONAL ALLOCATION
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Europe 61.9%
Asia 29.7
Latin America 3.7
Middle East/Africa 2.5
United States/Canada 2.2
Portfolio holdings and allocations are subject to change. Percentages are as of
May 31, 2005, and are based on total market value of investments.
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11 | OPPENHEIMER INTERNATIONAL GROWTH FUND
NOTES
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Total returns include changes in share price and reinvestment of dividends and
capital gains distributions in a hypothetical investment for the periods shown.
Cumulative total returns are not annualized. The Fund's total returns shown do
not reflect the deduction of income taxes on an individual's investment. Taxes
may reduce your actual investment returns on income or gains paid by the Fund or
any gains you may realize if you sell your shares.
Investors should consider the Fund's investment objectives, risks, and other
charges and expenses carefully before investing. The Fund's prospectus contains
this and other information about the Fund, and may be obtained by asking your
financial advisor, calling us at 1.800.525.7048 or visiting our website at
www.oppenheimerfunds.com. Read the prospectus carefully before investing.
The Fund's investment strategy and focus can change over time. The mention of
specific fund holdings does not constitute a recommendation by OppenheimerFunds,
Inc.
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.
12 | OPPENHEIMER INTERNATIONAL GROWTH FUND
FUND EXPENSES
- --------------------------------------------------------------------------------
FUND EXPENSES. As a shareholder of the Fund, you incur two types of costs: (1)
transaction costs, which may include sales charges (loads) on purchase payments,
contingent deferred sales charges on redemptions; and redemption fees, if any;
and (2) ongoing costs, including management fees; distribution and service fees;
and other Fund expenses. These examples are intended to help you understand your
ongoing costs (in dollars) of investing in the Fund and to compare these costs
with the ongoing costs of investing in other mutual funds.
The examples are based on an investment of $1,000.00 invested at the beginning
of the period and held for the entire 6-month period ended May 31, 2005.
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
13 | OPPENHEIMER INTERNATIONAL GROWTH FUND
FUND EXPENSES
- --------------------------------------------------------------------------------
exceptions described in the Statement of Additional Information). Therefore, the
"hypothetical" lines of the table are useful in comparing ongoing costs only,
and will not help you determine the relative total costs of owning different
funds. In addition, if these transactional costs were included, your costs would
have been higher.
- --------------------------------------------------------------------------------
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT PAID DURING
VALUE VALUE 6 MONTHS ENDED
(12/1/04) (5/31/05) MAY 31, 2005
- --------------------------------------------------------------------------------
Class A Actual $1,000.00 $1,020.10 $ 7.18
- --------------------------------------------------------------------------------
Class A Hypothetical 1,000.00 1,017.85 7.17
- --------------------------------------------------------------------------------
Class B Actual 1,000.00 1,016.20 11.02
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Class B Hypothetical 1,000.00 1,014.06 11.01
- --------------------------------------------------------------------------------
Class C Actual 1,000.00 1,016.20 10.76
- --------------------------------------------------------------------------------
Class C Hypothetical 1,000.00 1,014.31 10.75
- --------------------------------------------------------------------------------
Class N Actual 1,000.00 1,018.80 8.44
- --------------------------------------------------------------------------------
Class N Hypothetical 1,000.00 1,016.60 8.43
Hypothetical assumes 5% annual return before expenses.
Expenses are equal to the Fund's annualized expense ratio for that class,
multiplied by the average account value over the period, multiplied by 182/365
(to reflect the one-half year period). Those annualized expense ratios based on
the 6-month period ended May 31, 2005 are as follows:
CLASS EXPENSE RATIOS
- ---------------------------
Class A 1.42%
- ---------------------------
Class B 2.18
- ---------------------------
Class C 2.13
- ---------------------------
Class N 1.67
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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14 | OPPENHEIMER INTERNATIONAL GROWTH FUND
STATEMENT OF INVESTMENTS May 31, 2005 / Unaudited
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VALUE
SHARES SEE NOTE 1
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COMMON STOCKS--99.2%
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CONSUMER DISCRETIONARY--18.8%
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AUTO COMPONENTS--1.7%
Continental AG 245,498 $ 17,416,026
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AUTOMOBILES--2.0%
Honda Motor Co. 100,879 4,990,657
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Porsche AG,
Preferred 8,049 5,606,091
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Toyota Motor Corp. 268,500 9,513,372
--------------
20,110,120
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HOTELS, RESTAURANTS & LEISURE--1.5%
Carnival Corp. 162,700 8,606,830
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William Hill plc 749,400 6,733,747
--------------
15,340,577
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HOUSEHOLD DURABLES--2.1%
Daito Trust
Construction
Co. Ltd. 158,632 5,977,840
- --------------------------------------------------------------------------------
Groupe SEB SA 39,224 4,030,326
- --------------------------------------------------------------------------------
Koninklijke (Royal)
Philips Electronics
NV 214,200 5,458,853
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Sony Corp. 145,300 5,435,279
--------------
20,902,298
- --------------------------------------------------------------------------------
INTERNET & CATALOG RETAIL--2.1%
Great Universal
Stores (The) plc 290,430 4,467,301
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GS Home
Shopping, Inc. 106,844 8,078,144
- --------------------------------------------------------------------------------
Next plc 339,130 8,873,716
--------------
21,419,161
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MEDIA--4.9%
British Sky
Broadcasting
Group plc 199,599 1,978,472
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Gestevision
Telecinco SA 123,989 2,874,523
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Grupo Televisa SA,
Sponsored GDR 137,200 8,232,000
- --------------------------------------------------------------------------------
Mediaset SpA 633,800 7,471,702
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
MEDIA Continued
News Corp.,
Inc., Cl. B 303,494 $ 5,115,376
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Publishing &
Broadcasting Ltd. 252,536 2,906,308
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Societe Television
Francaise 1 168,440 4,562,124
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Sogecable SA 47,100 1,720,230
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Vivendi Universal SA 230,440 7,021,183
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Zee Telefilms Ltd. 2,536,600 8,062,040
--------------
49,943,958
- --------------------------------------------------------------------------------
SPECIALTY RETAIL--2.3%
Hennes & Mauritz
AB, B Shares 493,800 17,453,336
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Industria de Diseno
Textil SA 105,200 2,982,634
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New Dixons
Group plc 884,231 2,426,160
--------------
22,862,130
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TEXTILES, APPAREL & LUXURY GOODS--2.2%
Compagnie
Financiere
Richemont AG,
A Shares 171,134 5,209,141
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Luxottica Group SpA 558,800 11,627,914
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LVMH Moet
Hennessey Louis
Vuitton 37,110 2,648,627
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Puma AG 10,996 2,787,429
--------------
22,273,111
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CONSUMER STAPLES--5.6%
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BEVERAGES--2.5%
Foster's Group Ltd. 1,226,245 5,000,394
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Heineken NV 262,825 8,331,330
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Pernod-Ricard SA 73,690 11,380,310
--------------
24,712,034
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FOOD & STAPLES RETAILING--0.7%
Carrefour SA 40,750 2,020,852
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William Morrison
Supermarkets plc 697,480 2,395,358
15 | OPPENHEIMER INTERNATIONAL GROWTH FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
FOOD & STAPLES RETAILING Continued
Woolworths Ltd. 255,964 $ 3,106,190
--------------
7,522,400
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FOOD PRODUCTS--1.6%
Cadbury
Schweppes plc 598,060 5,824,872
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Nestle SA 18,518 4,872,768
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Unilever plc 568,370 5,540,866
--------------
16,238,506
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PERSONAL PRODUCTS--0.8%
L'Oreal SA 114,850 8,331,374
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ENERGY--5.7%
- --------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES--1.7%
Technip SA 390,160 17,221,696
- --------------------------------------------------------------------------------
OIL & GAS--4.0%
BG Group plc 881,150 6,672,710
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BP plc, ADR 215,000 12,943,000
- --------------------------------------------------------------------------------
Neste Oil Oyj 1 96,100 2,146,356
- --------------------------------------------------------------------------------
Total SA, B Shares 71,860 15,872,797
- --------------------------------------------------------------------------------
Tsakos Energy
Navigation Ltd. 76,600 3,062,468
--------------
40,697,331
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FINANCIALS--18.8%
- --------------------------------------------------------------------------------
CAPITAL MARKETS--1.0%
Credit Suisse Group 121,369 4,860,982
- --------------------------------------------------------------------------------
UBS AG 61,371 4,731,623
--------------
9,592,605
- --------------------------------------------------------------------------------
COMMERCIAL BANKS--9.8%
ABN Amro
Holding NV 83,200 1,930,931
- --------------------------------------------------------------------------------
Anglo Irish
Bank Corp. 1,629,204 19,266,404
- --------------------------------------------------------------------------------
Bayerische Hypo-Und
Vereinsbank 1 105,539 2,597,436
- --------------------------------------------------------------------------------
Commerzbank AG 228,724 4,976,177
- --------------------------------------------------------------------------------
ICICI Bank Ltd.,
Sponsored ADR 495,700 9,631,451
- --------------------------------------------------------------------------------
Joyo Bank Ltd. (The) 1,607,000 8,187,875
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
COMMERCIAL BANKS Continued
Mitsubishi Tokyo
Financial Group, Inc. 2,355 $ 19,539,885
- --------------------------------------------------------------------------------
National Australia
Bank Ltd. 136,600 3,244,178
- --------------------------------------------------------------------------------
Royal Bank of
Scotland Group
plc (The) 652,081 19,147,837
- --------------------------------------------------------------------------------
Societe Generale,
Cl. A 109,830 10,791,895
--------------
99,314,069
- --------------------------------------------------------------------------------
CONSUMER FINANCE--0.6%
Mediobanca SpA 333,400 5,805,289
- --------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES--2.6%
3i Group plc 816,197 10,255,669
- --------------------------------------------------------------------------------
Collins Stewart
Tullett plc 1,830,121 14,033,599
- --------------------------------------------------------------------------------
MLP AG 137,792 2,251,769
--------------
26,541,037
- --------------------------------------------------------------------------------
INSURANCE--2.4%
Alleanza
Assicurazioni SpA 407,700 4,357,249
- --------------------------------------------------------------------------------
Allianz AG 64,994 7,661,972
- --------------------------------------------------------------------------------
AMP Ltd. 1,921,305 9,529,199
- --------------------------------------------------------------------------------
Skandia Forsakrings
AB 508,200 2,800,207
--------------
24,348,627
- --------------------------------------------------------------------------------
REAL ESTATE--1.9%
Solidere, GDR 1,2 800,935 9,611,220
- --------------------------------------------------------------------------------
Solidere, GDR 1 76,157 913,884
- --------------------------------------------------------------------------------
Sumitomo Realty
& Development
Co. Ltd. 844,000 9,103,346
--------------
19,628,450
- --------------------------------------------------------------------------------
THRIFTS & MORTGAGE FINANCE--0.5%
Housing
Development
Finance Corp. Ltd. 265,500 4,625,162
16 | OPPENHEIMER INTERNATIONAL GROWTH FUND
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
HEALTH CARE--14.7%
- --------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES--3.4%
Art Advanced
Research
Technologies, Inc. 1,3 389,400 $ 304,025
- --------------------------------------------------------------------------------
Art Advanced
Research
Technologies, Inc. 1,3,4 1,901,125 1,484,307
- --------------------------------------------------------------------------------
Essilor International
SA 114,700 7,868,829
- --------------------------------------------------------------------------------
Ortivus AB, Cl. B 1,3 710,800 2,712,922
- --------------------------------------------------------------------------------
Synthes, Inc. 42,819 4,702,407
- --------------------------------------------------------------------------------
Terumo Corp. 283,700 7,435,408
- --------------------------------------------------------------------------------
William Demant
Holding AS 1 209,200 10,014,452
--------------
34,522,350
- --------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES--0.7%
Nicox SA 1 1,332,479 6,542,370
- --------------------------------------------------------------------------------
PHARMACEUTICALS--10.6%
Astellas Pharma, Inc. 108,600 3,882,324
- --------------------------------------------------------------------------------
AstraZeneca plc 41,520 1,761,656
- --------------------------------------------------------------------------------
GlaxoSmithKline plc 138,780 3,429,593
- --------------------------------------------------------------------------------
H. Lundbeck AS 97,100 2,432,477
- --------------------------------------------------------------------------------
Marshall Edwards,
Inc. 1,4 1,750,000 13,673,614
- --------------------------------------------------------------------------------
NeuroSearch AS 1 228,200 10,207,041
- --------------------------------------------------------------------------------
Novogen Ltd. 1,3 6,323,015 25,453,019
- --------------------------------------------------------------------------------
Oxagen Ltd. 1,4 214,287 17,043
- --------------------------------------------------------------------------------
Roche Holdings AG 83,255 10,496,906
- --------------------------------------------------------------------------------
Sanofi-Aventis SA 169,550 15,293,383
- --------------------------------------------------------------------------------
Schering AG 72,251 4,542,360
- --------------------------------------------------------------------------------
Shionogi & Co. Ltd. 198,000 2,714,150
- --------------------------------------------------------------------------------
SkyePharma plc 1 3,340,500 3,277,797
- --------------------------------------------------------------------------------
Takeda
Pharmaceutical
Co. Ltd. 112,000 5,396,969
- --------------------------------------------------------------------------------
Teva Pharmaceutical
Industries Ltd.,
Sponsored ADR 144,800 4,831,976
--------------
107,410,308
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
INDUSTRIALS--10.3%
- --------------------------------------------------------------------------------
AEROSPACE & DEFENSE--1.7%
Empresa Brasileira
de Aeronautica SA,
Preference 2,238,246 $ 16,925,023
- --------------------------------------------------------------------------------
AIRLINES--0.7%
easyJet plc 1 1,828,864 7,502,154
- --------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES--2.1%
BTG plc 1 2,170,784 5,532,180
- --------------------------------------------------------------------------------
Capita Group plc 1,327,520 9,244,854
- --------------------------------------------------------------------------------
Prosegur Compania
de Seguridad SA 205,149 4,304,231
- --------------------------------------------------------------------------------
Randstad Holding
NV 72,783 2,602,720
--------------
21,683,985
- --------------------------------------------------------------------------------
CONSTRUCTION & ENGINEERING--1.3%
Koninklijke Boskalis
Westminster NV 68,543 2,488,209
- --------------------------------------------------------------------------------
Leighton
Holdings Ltd. 547,231 4,277,050
- --------------------------------------------------------------------------------
Vinci SA 84,920 6,358,759
--------------
13,124,018
- --------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--0.7%
Ushio, Inc. 376,000 7,244,015
- --------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES--2.5%
Aalberts Industries
NV 355,780 15,673,513
- --------------------------------------------------------------------------------
Siemens AG 130,596 9,558,784
--------------
25,232,297
- --------------------------------------------------------------------------------
MACHINERY--0.5%
Hyundai Heavy
Industries Co. Ltd. 93,912 4,958,949
- --------------------------------------------------------------------------------
TRADING COMPANIES & DISTRIBUTORS--0.8%
Bunzl plc 813,260 7,950,391
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY--16.0%
- --------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT--3.1%
Nokia Oyj 500,500 8,434,757
- --------------------------------------------------------------------------------
Telefonaktiebolaget
LM Ericsson,
B Shares 7,346,500 23,102,977
--------------
31,537,734
17 | OPPENHEIMER INTERNATIONAL GROWTH FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS--0.6%
Logitech
International SA 1 99,935 $ 5,935,742
- --------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS--6.5%
Electrocomponents
plc 917,820 4,348,692
- --------------------------------------------------------------------------------
Hoya Corp. 74,100 8,253,893
- --------------------------------------------------------------------------------
Keyence Corp. 38,100 8,315,914
- --------------------------------------------------------------------------------
NEOMAX Co. Ltd. 287,518 6,460,990
- --------------------------------------------------------------------------------
Nidec Corp. 84,300 9,205,456
- --------------------------------------------------------------------------------
Nippon Electric
Glass Co. Ltd. 680,000 10,507,461
- --------------------------------------------------------------------------------
Omron Corp. 223,318 4,902,507
- --------------------------------------------------------------------------------
Tandberg ASA 1,326,200 14,173,083
--------------
66,167,996
- --------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES--0.3%
Yahoo Japan Corp. 1,780 3,561,626
- --------------------------------------------------------------------------------
IT SERVICES--1.7%
Infosys
Technologies Ltd. 283,076 14,513,400
- --------------------------------------------------------------------------------
United Internet AG 88,125 2,287,060
--------------
16,800,460
- --------------------------------------------------------------------------------
OFFICE ELECTRONICS--1.5%
Canon, Inc. 242,000 13,090,585
- --------------------------------------------------------------------------------
Konica Minolta
Holdings, Inc. 199,000 1,779,874
--------------
14,870,459
- --------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT--1.1%
ASM International
NV 1 402,300 5,970,132
- --------------------------------------------------------------------------------
Samsung
Electronics Co. 9,900 4,778,240
--------------
10,748,372
- --------------------------------------------------------------------------------
SOFTWARE--1.2%
Autonomy Corp. plc 1 954,869 4,337,711
- --------------------------------------------------------------------------------
Business Objects SA 1 114,230 3,273,795
- --------------------------------------------------------------------------------
Enix Corp. 66,500 1,911,641
- --------------------------------------------------------------------------------
UbiSoft
Entertainment SA 1 56,236 2,518,939
--------------
12,042,086
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
MATERIALS--4.5%
- --------------------------------------------------------------------------------
CHEMICALS--1.6%
Nufarm Ltd. 683,392 $ 4,556,843
- --------------------------------------------------------------------------------
Sika AG 1 9,389 5,896,328
- --------------------------------------------------------------------------------
Syngenta AG 1 49,419 5,118,453
--------------
15,571,624
- --------------------------------------------------------------------------------
METALS & MINING--2.9%
Companhia Vale
do Rio Doce,
Sponsored ADR 500,900 12,362,212
- --------------------------------------------------------------------------------
Impala Platinum
Holdings Ltd. 114,700 9,601,067
- --------------------------------------------------------------------------------
Rio Tinto plc 254,500 7,584,698
--------------
29,547,977
- --------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES--4.2%
- --------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES--4.2%
KDDI Corp. 2,379 10,915,760
- --------------------------------------------------------------------------------
SK Telecom Co.
Ltd., ADR 234,234 4,900,175
- --------------------------------------------------------------------------------
Vodafone Group plc 10,503,223 26,480,879
--------------
42,296,814
- --------------------------------------------------------------------------------
UTILITIES--0.6%
- --------------------------------------------------------------------------------
ELECTRIC UTILITIES--0.6%
Fortum Oyj 384,400 5,827,683
--------------
Total Common Stocks
(Cost $778,917,574) 1,002,850,394
- --------------------------------------------------------------------------------
PREFERRED STOCKS--0.7%
- --------------------------------------------------------------------------------
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
--------------
Total Preferred Stocks
(Cost $5,086,060) 6,906,348
18 | OPPENHEIMER INTERNATIONAL GROWTH FUND
VALUE
UNITS SEE NOTE 1
- --------------------------------------------------------------------------------
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 --
- --------------------------------------------------------------------------------
Sogecable SA Rts.,
Exp. 6/7/05 1 47,100 19,706
--------------
Total Rights, Warrants
and Certificates (Cost $0) 19,706
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS,
AT VALUE
(COST $784,003,634) 99.9% 1,009,776,448
- --------------------------------------------------------------------------------
OTHER ASSETS
NET OF LIABILITIES 0.1 870,295
-----------------------------
NET ASSETS 100.0% $1,010,646,743
=============================
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 $9,611,220 or 0.95% of the Fund's net
assets as of May 31, 2005.
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 May 31, 2005. The
aggregate fair value of securities of affiliated companies held by the Fund as
of May 31, 2005 amounts to $29,954,273. Transactions during the period in which
the issuer was an affiliate are as follows:
SHARES
SHARES GROSS GROSS MAY 31,
NOVEMBER 30, 2004 ADDITIONS REDUCTIONS 2005
- ---------------------------------------------------------------------------------------------------------------
Art Advanced Research Technologies, Inc. 1,901,125 -- -- 1,901,125
Art Advanced Research Technologies, Inc. 389,400 -- -- 389,400
Novogen Ltd. 6,323,015 -- -- 6,323,015
Ortivus AB, B Shares 710,800 -- -- 710,800
VALUE DIVIDEND
SEE NOTE 1 INCOME
- ---------------------------------------------------------------------------------------------------------------
Art Advanced Research Technologies, Inc. $ 1,484,307 $ --
Art Advanced Research Technologies, Inc. 304,025 --
Novogen Ltd. 25,453,019 --
Ortivus AB, B Shares 2,712,922 --
---------------------------
$29,954,273 $ --
===========================
4. Illiquid or restricted security. The aggregate value of illiquid or
restricted securities as of May 31, 2005 was $22,081,312, which represents 2.18%
of the Fund's net assets, all of which is considered restricted. See Note 6 of
Notes to Financial Statements.
19 | OPPENHEIMER INTERNATIONAL GROWTH FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
DISTRIBUTION OF INVESTMENTS REPRESENTING GEOGRAPHIC HOLDINGS, AS A PERCENTAGE OF
TOTAL INVESTMENTS AT VALUE, IS AS FOLLOWS:
GEOGRAPHIC HOLDINGS VALUE PERCENT
- --------------------------------------------------------------------------------
United Kingdom $ 182,760,955 18.1%
Japan 168,326,827 16.7
France 125,737,259 12.5
Australia 71,746,795 7.1
Germany 59,685,104 5.9
Switzerland 51,824,350 5.1
Sweden 46,069,442 4.6
The Netherlands 42,455,688 4.2
India 36,832,053 3.6
Brazil 29,287,235 2.9
Italy 29,262,154 2.9
Korea, Republic of South 22,715,508 2.3
Denmark 22,653,970 2.2
United States 20,628,554 2.0
Ireland 19,266,404 1.9
Norway 17,235,551 1.7
Finland 16,408,796 1.6
Spain 11,901,324 1.2
Lebanon 10,525,104 1.0
South Africa 9,601,067 1.0
Mexico 8,232,000 0.8
Israel 4,831,976 0.5
Canada 1,788,332 0.2
----------------------------
TOTAL $1,009,776,448 100.0%
============================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
20 | OPPENHEIMER INTERNATIONAL GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES Unaudited
- --------------------------------------------------------------------------------
May 31, 2005
- ----------------------------------------------------------------------------------------------------------
ASSETS
- ----------------------------------------------------------------------------------------------------------
Investments, at value--see accompanying statement of investments:
Unaffiliated companies (cost $758,569,443) $ 979,822,175
Affiliated companies (cost $25,434,191) 29,954,273
----------------
1,009,776,448
- ----------------------------------------------------------------------------------------------------------
Cash 739,677
- ----------------------------------------------------------------------------------------------------------
Receivables and other assets:
Interest and dividends 2,664,211
Investments sold 627,145
Shares of beneficial interest sold 60,103
Other 28,362
----------------
Total assets 1,013,895,946
- ----------------------------------------------------------------------------------------------------------
LIABILITIES
- ----------------------------------------------------------------------------------------------------------
Payables and other liabilities:
Shares of beneficial interest redeemed 2,148,645
Distribution and service plan fees 422,329
Transfer and shareholder servicing agent fees 305,855
Trustees' compensation 177,674
Shareholder communications 126,947
Other 67,753
----------------
Total liabilities 3,249,203
- ----------------------------------------------------------------------------------------------------------
NET ASSETS $ 1,010,646,743
================
- ----------------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- ----------------------------------------------------------------------------------------------------------
Paid-in capital $ 1,117,886,568
- ----------------------------------------------------------------------------------------------------------
Accumulated net investment loss (12,466,060)
- ----------------------------------------------------------------------------------------------------------
Accumulated net realized loss on investments and foreign currency transactions (320,480,320)
- ----------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of assets and liabilities
denominated in foreign currencies 225,706,555
----------------
NET ASSETS $ 1,010,646,743
================
21 | OPPENHEIMER INTERNATIONAL GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES Unaudited / Continued
- --------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
- -----------------------------------------------------------------------------------------------------------
Class A Shares:
Net asset value and redemption price per share (based on net assets of $676,945,387 and
36,711,345 shares of beneficial interest outstanding) $18.44
Maximum offering price per share (net asset value plus sales charge of 5.75% of offering price) $19.56
- -----------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $156,325,103 and 8,875,081 shares
of beneficial interest outstanding) $17.61
- -----------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $145,384,063 and 8,248,930 shares
of beneficial interest outstanding) $17.62
- -----------------------------------------------------------------------------------------------------------
Class N Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $31,992,190 and 1,757,643 shares
of beneficial interest outstanding) $18.20
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
22 | OPPENHEIMER INTERNATIONAL GROWTH FUND
STATEMENT OF OPERATIONS Unaudited
- --------------------------------------------------------------------------------
For the Six Months Ended May 31, 2005
- --------------------------------------------------------------------------------
INVESTMENT INCOME
- --------------------------------------------------------------------------------
Dividends (net of foreign withholding taxes of $1,540,285) $ 12,440,510
- --------------------------------------------------------------------------------
Interest 79,391
-------------
Total investment income 12,519,901
- --------------------------------------------------------------------------------
EXPENSES
- --------------------------------------------------------------------------------
Management fees 3,995,082
- --------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 850,162
Class B 825,492
Class C 743,584
Class N 80,115
- --------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 1,683,629
Class B 272,402
Class C 220,055
Class N 75,070
- --------------------------------------------------------------------------------
Shareholder communications:
Class A 38,948
Class B 40,510
Class C 22,280
Class N 2,106
- --------------------------------------------------------------------------------
Custodian fees and expenses 169,525
- --------------------------------------------------------------------------------
Trustees' compensation 17,754
- --------------------------------------------------------------------------------
Other 59,084
-------------
Total expenses 9,095,798
Less reduction to custodian expenses (1,947)
Less waivers and reimbursements of expenses (477,023)
-------------
Net expenses 8,616,828
- --------------------------------------------------------------------------------
NET INVESTMENT INCOME 3,903,073
23 | OPPENHEIMER INTERNATIONAL GROWTH FUND
STATEMENT OF OPERATIONS Unaudited
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
- ------------------------------------------------------------------------------------------
Net realized gain on:
Investments $ 39,797,342
Foreign currency transactions 14,387,614
-------------
Net realized gain 54,184,956
- ------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on:
Investments 23,139,745
Translation of assets and liabilities denominated in foreign currencies (61,190,294)
-------------
Net change in unrealized appreciation (38,050,549)
- ------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 20,037,480
=============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
24 | OPPENHEIMER INTERNATIONAL GROWTH FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
MAY 31, 2005 NOVEMBER 30,
(UNAUDITED) 2004
- ----------------------------------------------------------------------------------------------------
OPERATIONS
- ----------------------------------------------------------------------------------------------------
Net investment income (loss) $ 3,903,073 $ (344,925)
- ----------------------------------------------------------------------------------------------------
Net realized gain 54,184,956 9,116,716
- ----------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (38,050,549) 136,039,808
--------------------------------------
Net increase in net assets resulting from operations 20,037,480 144,811,599
- ----------------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
- ----------------------------------------------------------------------------------------------------
Dividends from net investment income:
Class A (4,399,238) (6,767,655)
Class B -- (1,084,899)
Class C -- (837,758)
Class N (132,238) (241,976)
- ----------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
- ----------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
beneficial interest transactions:
Class A (19,066,608) 69,139,385
Class B (13,604,152) (32,194,872)
Class C (1,497,949) 9,003,324
Class N (1,137,290) 7,458,197
- ----------------------------------------------------------------------------------------------------
NET ASSETS
- ----------------------------------------------------------------------------------------------------
Total increase (decrease) (19,799,995) 189,285,345
- ----------------------------------------------------------------------------------------------------
Beginning of period 1,030,446,738 841,161,393
--------------------------------------
End of period (including accumulated net investment loss
of $12,466,060 and $11,837,657, respectively) $ 1,010,646,743 $ 1,030,446,738
======================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
25 | OPPENHEIMER INTERNATIONAL GROWTH FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
MAY 31, 2005 NOV. 30,
CLASS A (UNAUDITED) 2004 2003 2002 2001 2000
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 18.19 $ 15.72 $ 11.63 $ 14.96 $ 19.77 $ 19.22
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .09 1 .04 1 .01 .12 .06 (.01)
Net realized and unrealized gain (loss) .28 2.63 4.19 (3.41) (3.93) .77
-------------------------------------------------------------------------------------
Total from investment operations .37 2.67 4.20 (3.29) (3.87) .76
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.12) (.20) (.11) (.04) -- --
Distributions from net realized gain -- -- -- -- (.94) (.21)
-------------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.12) (.20) (.11) (.04) (.94) (.21)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 18.44 $ 18.19 $ 15.72 $ 11.63 $ 14.96 $ 19.77
=====================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 2.01% 17.18% 36.55% (22.04)% (20.58)% 3.92%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $676,946 $686,313 $528,363 $358,097 $535,615 $478,680
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $702,019 $598,265 $390,315 $512,319 $536,366 $418,537
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 0.97% 0.22% 0.18% 0.62% 0.62% 0.22%
Total expenses 1.55% 1.61% 1.88% 1.64% 1.42% 1.38%
Expenses after payments and waivers and
reduction to custodian expenses 1.42% 1.43% 1.42% 1.56% N/A 4,5 N/A 4
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 17% 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.
26 | OPPENHEIMER INTERNATIONAL GROWTH FUND
SIX MONTHS YEAR
ENDED ENDED
MAY 31, 2005 NOV. 30,
CLASS B (UNAUDITED) 2004 2003 2002 2001 2000
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 17.33 $ 15.00 $ 11.10 $ 14.34 $ 19.14 $ 18.75
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .02 1 (.09) 1 (.13) (.03) (.01) (.08)
Net realized and unrealized gain (loss) .26 2.51 4.06 (3.21) (3.85) .68
-------------------------------------------------------------------------------------
Total from investment operations .28 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 $ 17.61 $ 17.33 $ 15.00 $ 11.10 $ 14.34 $ 19.14
=====================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 1.62% 16.25% 35.49% (22.59)% (21.23)% 3.16%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $156,325 $166,973 $174,959 $161,074 $230,085 $273,243
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $165,805 $167,441 $148,838 $200,304 $262,745 $276,393
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income (loss) 0.20% (0.57)% (0.55)% (0.12)% (0.15)% (0.56)%
Total expenses 2.18% 2.24% 2.48% 2.39% 2.17% 2.14%
Expenses after payments and waivers and
reduction to custodian expenses N/A 4,5 2.21% 2.19% 2.31% N/A 4,5 N/A 4
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 17% 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.
27 | OPPENHEIMER INTERNATIONAL GROWTH FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
MAY 31, 2005 NOV. 30,
CLASS C (UNAUDITED) 2004 2003 2002 2001 2000
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 17.34 $ 15.01 $ 11.12 $ 14.37 $ 19.16 $ 18.77
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .02 1 (.08) 1 (.08) (.01) -- 2 (.04)
Net realized and unrealized gain (loss) .26 2.52 4.01 (3.24) (3.85) .64
-------------------------------------------------------------------------------------
Total from investment operations .28 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 $ 17.62 $ 17.34 $ 15.01 $ 11.12 $ 14.37 $ 19.16
=====================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 1.62% 16.34% 35.44% (22.62)% (21.16)% 3.16%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $145,384 $144,529 $116,659 $ 89,456 $114,084 $113,230
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $149,274 $131,125 $ 90,532 $106,551 $122,775 $ 98,110
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income (loss) 0.28% (0.52)% (0.59)% (0.12)% (0.14)% (0.53)%
Total expenses 2.13% 2.16% 2.38% 2.37% 2.17% 2.14%
Expenses after payments and waivers and
reduction to custodian expenses N/A 5 N/A 5,6 2.22% 2.29% N/A 5,6 N/A 5
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 17% 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.
28 | OPPENHEIMER INTERNATIONAL GROWTH FUND
SIX MONTHS YEAR
ENDED ENDED
MAY 31, 2005 NOV. 30,
CLASS N (UNAUDITED) 2004 2003 2002 2001 1
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 17.94 $ 15.51 $ 11.55 $ 14.93 $ 18.74
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .07 2 -- 2,3 .02 .09 .01
Net realized and unrealized gain (loss) .27 2.60 4.08 (3.38) (3.82)
-----------------------------------------------------------------------
Total from investment operations .34 2.60 4.10 (3.29) (3.81)
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.08) (.17) (.14) (.09) --
Distributions from net realized gain -- -- -- -- --
-----------------------------------------------------------------------
Total dividends and/or distributions to shareholders (.08) (.17) (.14) (.09) --
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 18.20 $ 17.94 $ 15.51 $ 11.55 $ 14.93
=======================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 4 1.88% 16.94% 36.01% (22.18)% (20.33)%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $31,992 $32,631 $21,180 $11,833 $ 3,102
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $32,198 $26,738 $14,722 $ 9,195 $ 1,152
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 5
Net investment income (loss) 0.75% (0.02)% (0.16)% 0.19% 0.18%
Total expenses 1.79% 1.77% 1.90% 1.80% 1.74%
Expenses after payments and waivers and
reduction to custodian expenses 1.67% 1.66% 1.73% 1.72% N/A 6,7
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 17% 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.
29 | OPPENHEIMER INTERNATIONAL GROWTH FUND
NOTES TO FINANCIAL STATEMENTS Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 sixty days and all mortgage-backed securities will be valued at the
mean between the "bid" and "asked" prices. Futures contracts traded on a
commodities or futures exchange will be valued at the final settlement price or
official closing price on the principal exchange as reported by such principal
exchange at its trading session ending at, or most recently prior to, the time
when the Fund's assets are valued. Securities 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
30 | OPPENHEIMER INTERNATIONAL GROWTH FUND
identifies as a significant event occurring before the Fund's assets are valued
but after the close of their respective exchanges will be fair valued. Fair
value is determined in good faith using consistently applied procedures under
the supervision of the Board of Trustees. Short-term "money market type" debt
securities with remaining maturities of sixty days or less are valued at
amortized cost (which approximates market value).
- --------------------------------------------------------------------------------
FOREIGN CURRENCY TRANSLATION. The Fund's accounting records are maintained in
U.S. dollars. The values of securities denominated in foreign currencies and
amounts related to the purchase and sale of foreign securities and foreign
investment income are translated into U.S. dollars as of the close of The New
York Stock Exchange (the Exchange), normally 4:00 P.M. Eastern time, on each day
the Exchange is open for business. Foreign exchange rates may be valued
primarily using dealer supplied valuations or a portfolio pricing service
authorized by the Board of Trustees.
Reported net realized foreign exchange gains or losses arise from sales of
portfolio securities, sales and maturities of short-term securities, sales of
foreign currencies, currency gains or losses realized between the trade and
settlement dates on securities transactions, and the difference between the
amounts of dividends, interest, and foreign withholding taxes recorded on the
Fund's books and the U.S. dollar equivalent of the amounts actually received or
paid. Net unrealized foreign exchange gains and losses arise from changes in the
values of assets and liabilities, including investments in securities at fiscal
period end, resulting from changes in exchange rates.
The effect of changes in foreign currency exchange rates on investments is
separately identified from the fluctuations arising from changes in market
values of securities held and reported with all other foreign currency gains and
losses in the Fund's Statement of Operations.
- --------------------------------------------------------------------------------
JOINT REPURCHASE AGREEMENTS. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the Fund, along with other affiliated funds
advised by the Manager, may transfer uninvested cash balances into joint trading
accounts on a daily basis. These balances are invested in one or more repurchase
agreements. Securities pledged as collateral for repurchase agreements are held
by a custodian bank until the agreements mature. Each agreement requires that
the market value of the collateral be sufficient to cover payments of interest
and principal. In the event of default by the other party to the agreement,
retention of the collateral may be subject to legal proceedings.
- --------------------------------------------------------------------------------
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
31 | OPPENHEIMER INTERNATIONAL GROWTH FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
not offset by capital loss carryforwards, if any, to shareholders, therefore, no
federal income or excise tax provision is required.
Net investment income (loss) and net realized gain (loss) may differ for
financial statement and tax purposes. The character of dividends and
distributions made during the fiscal year from net investment income or net
realized gains may differ from their ultimate characterization for federal
income tax purposes. Also, due to timing of dividends and distributions, the
fiscal year in which amounts are distributed may differ from the fiscal year in
which the income or net realized gain was recorded by the Fund.
As of May 31, 2005, the Fund had available for federal income tax purposes
an estimated capital loss carryforward of $308,888,944. This estimated capital
loss carryforward represents carryforward as of the end of the last fiscal year,
increased for losses deferred under tax accounting rules to the current fiscal
year and is increased or decreased by capital losses or gains realized in the
first six months of the current fiscal year. As of May 31, 2005, it is estimated
that the Fund will utilize $54,184,956 of capital loss carryforward to offset
realized capital gains. During the year ended November 30, 2004, the Fund
utilized $4,192,154 of capital loss carryforward to offset capital gains
realized in that fiscal year.
As of November 30, 2004, the Fund had available for federal income tax purposes
unused capital loss carryforwards as follows:
EXPIRING
-----------------------------------
2009 $ 76,651,058
2010 110,808,862
2011 175,613,980
------------
Total $363,073,900
============
- --------------------------------------------------------------------------------
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 six months ended
May 31, 2005, the Fund's projected benefit obligations were increased by $4,394
and payments of $9,777 were made to retired trustees, resulting in an
accumulated liability of $151,049 as of May 31, 2005.
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
32 | OPPENHEIMER INTERNATIONAL GROWTH FUND
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.
- --------------------------------------------------------------------------------
CUSTODIAN FEES. Custodian Fees and Expenses in the Statement of Operations may
include interest expense incurred by the Fund on any cash overdrafts of its
custodian account during the period. Such cash overdrafts may result from the
effects of failed trades in portfolio securities and from cash outflows
resulting from unanticipated shareholder redemption activity. The Fund pays
interest to its custodian on such cash overdrafts 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.
33 | OPPENHEIMER INTERNATIONAL GROWTH FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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:
SIX MONTHS ENDED MAY 31, 2005 YEAR ENDED NOVEMBER 30, 2004
SHARES AMOUNT SHARES AMOUNT
- ----------------------------------------------------------------------------------------------------------
CLASS A
Sold 6,787,735 $ 127,537,242 19,377,829 $ 323,265,209
Dividends and/or
distributions reinvested 203,068 3,746,610 364,291 5,755,789
Redeemed (8,005,720) (150,350,460) 1 (15,635,357) (259,881,613) 2
-------------------------------------------------------------------------
Net increase (decrease) (1,014,917) $ (19,066,608) 4,106,763 $ 69,139,385
=========================================================================
- ----------------------------------------------------------------------------------------------------------
CLASS B
Sold 743,123 $ 13,350,635 2,003,862 $ 32,149,130
Dividends and/or
distributions reinvested -- -- 61,977 940,197
Redeemed (1,500,349) (26,954,787) 1 (4,100,867) (65,284,199) 2
-------------------------------------------------------------------------
Net decrease (757,226) $ (13,604,152) (2,035,028) $ (32,194,872)
=========================================================================
- ----------------------------------------------------------------------------------------------------------
CLASS C
Sold 889,036 $ 15,990,808 2,301,953 $ 36,724,240
Dividends and/or
distributions reinvested -- -- 45,549 690,983
Redeemed (974,783) (17,488,757) 1 (1,786,385) (28,411,899) 2
-------------------------------------------------------------------------
Net increase (decrease) (85,747) $ (1,497,949) 561,117 $ 9,003,324
=========================================================================
- ----------------------------------------------------------------------------------------------------------
CLASS N
Sold 456,498 $ 8,475,574 1,087,688 $ 17,969,575
Dividends and/or
distributions reinvested 6,868 125,204 14,836 231,750
Redeemed (524,205) (9,738,068) 1 (649,373) (10,743,128) 2
-------------------------------------------------------------------------
Net increase (decrease) (60,839) $ (1,137,290) 453,151 $ 7,458,197
=========================================================================
1. Net of redemption fees of $2,726, $644, $580 and $125 for Class A, Class B,
Class C and Class N, respectively.
2. 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 six months ended May 31, 2005, were
$174,894,215 and $208,501,410, 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
34 | OPPENHEIMER INTERNATIONAL GROWTH FUND
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 six months ended May 31, 2005, the Fund paid
$1,737,970 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 asset-based sales charge of 0.75% on Class B and
Class C shares and 0.25% on Class N shares. The Distributor also receives a
service fee of 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 May 31, 2005 for Class B, Class C and
Class N shares were $3,057,244, $2,760,437 and $275,520, 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.
35 | OPPENHEIMER INTERNATIONAL GROWTH FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued
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
SIX MONTHS RETAINED BY RETAINED BY RETAINED BY RETAINED BY RETAINED BY
ENDED DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR
- ------------------------------------------------------------------------------------------------------------------
May 31, 2005 $173,720 $3,283 $146,340 $11,682 $28,380
- --------------------------------------------------------------------------------
WAIVERS AND REIMBURSEMENTS OF EXPENSES. OFS has voluntarily agreed to limit
transfer and shareholder servicing agent fees for all classes to 0.35% of
average annual net assets per class. During the six months ended May 31, 2005,
OFS waived $457,880, $22 and $19,121 for Class A, Class B 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.
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 May 31, 2005, the Fund had no outstanding foreign currency
contracts.
- --------------------------------------------------------------------------------
6. ILLIQUID OR RESTRICTED SECURITIES
As of May 31, 2005, 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.
Securities that are illiquid or restricted
36 | OPPENHEIMER INTERNATIONAL GROWTH FUND
are marked with the applicable footnote on the Statement of Investments.
Information concerning restricted securities is as follows:
UNREALIZED
ACQUISITION VALUATION AS OF APPRECIATION
SECURITY DATES COST MAY 31, 2005 (DEPRECIATION)
- -----------------------------------------------------------------------------------------------------------------------
Art Advanced Research
Technologies, Inc. 6/19/01 $7,500,000 $ 1,484,307 $(6,015,693)
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
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 -- -- --
Marshall Edwards, Inc. 5/22/02-11/20/03 7,000,000 13,673,614 6,673,614
Oxagen Ltd. 12/20/00 2,210,700 17,043 (2,193,657)
--------------------------------
$22,081,312 $ 284,552
================================
- --------------------------------------------------------------------------------
7. LITIGATION
A consolidated amended complaint has been filed as putative derivative and class
actions against the Manager, OFS and the Distributor, as well as 51 of the
Oppenheimer funds (as "Nominal Defendants") including the Fund, 30 present and
former Directors or Trustees and 8 present and former officers of the funds.
This complaint, initially filed in the U.S. District Court for the Southern
District of New York on January 10, 2005, and amended on March 4, 2005,
consolidates into a single action and amends six individual previously-filed
putative derivative and class action complaints. Like those prior complaints,
the 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 assets of the funds 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
complaint further alleges that by permitting and/or participating in those
actions, the Directors/Trustees and the Officers breached their fiduciary duties
to shareholders of the funds 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.
The defendants believe that the allegations contained in the Complaints
are without merit and that they have meritorious defenses against the claims
asserted. The defendants intend to defend these lawsuits vigorously and to
contest any claimed liability. The defendants believe that it is premature to
render any opinion as to the likelihood of an outcome unfavorable to them and
that no estimate can yet be made with any degree of certainty as to the amount
or range of any potential loss.
37 | OPPENHEIMER INTERNATIONAL GROWTH FUND
PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES;
UPDATES TO STATEMENTS OF INVESTMENTS Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which
the Fund votes proxies relating to securities ("portfolio proxies") held by the
Fund. A description of the Fund's Portfolio Proxy Voting Policies and Procedures
is available (i) without charge, upon request, by calling the Fund toll-free at
1.800.525.7048, (ii) on the Fund's website at www.oppenheimerfunds.com, and
(iii) on the SEC's website at www.sec.gov. In addition, the Fund is required to
file Form N-PX, with its complete proxy voting record for the 12 months ended
June 30th, no later than August 31st of each year. The Fund's voting record is
available (i) without charge, upon request, by calling the Fund toll-free at
1.800.525.7048, and (ii) in Form N-PX filing on the SEC's website at
www.sec.gov.
The Fund files its complete schedule of portfolio holdings with the SEC
for the first quarter and the third quarter of each fiscal year on Form N-Q. The
Fund's Form N-Q filings are available on the SEC's website at
http://www.sec.gov. Those forms may be reviewed and copied at the SEC's Public
Reference Room in Washington D.C. Information on the operation of the Public
Reference Room may be obtained by calling 1-800-SEC-0330.
38 | OPPENHEIMER INTERNATIONAL GROWTH FUND
BOARD APPROVAL OF THE FUND'S INVESTMENT
ADVISORY AGREEMENT Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Each year, the Board of Trustees (the "Board"), including a majority of the
independent Trustees, is required to determine whether to renew the Fund's
advisory agreement. The Investment Company Act of 1940, as amended, requires
that the Board request and evaluate, and that the Manager provide, such
information as may be reasonably necessary to evaluate the terms of the advisory
agreement. The Board employs an independent consultant to prepare a report that
provides information, including comparative information, that the Board requests
for this purpose. In addition, the Board receives information throughout the
year regarding Fund services, fees, expenses and performance.
NATURE AND EXTENT OF SERVICES. In considering the renewal of the Fund's
advisory agreement for the current year, the Board evaluated the nature and
extent of the services provided by the Manager and its affiliates. The Manager
provides the Fund with office space, facilities and equipment; administrative,
accounting, clerical, legal and compliance personnel; securities trading
services; oversight of third party service providers and the services of the
portfolio manager and the Manager's investment team, who provide research,
analysis and other advisory services in regard to the Fund's investments.
QUALITY OF SERVICES. The Board also considered the quality of the services
provided and the quality of the Manager's resources that are available to the
Fund. The Board noted that the Manager has had over forty years of experience as
an investment adviser and that its assets under management rank it among the top
mutual fund managers in the United States. The Board evaluated the Manager's
administrative, accounting, legal and compliance services and information the
Board received regarding the experience and professional qualifications of the
Manager's personnel and the size and functions of its staff. The Board members
also considered their experiences as directors or trustees of the Fund and other
funds advised by the Manager. The Board received and reviewed information
regarding the quality of services provided by affiliates of the Manager, which
it also reviews at other times during the year in connection with the renewal of
the Fund's service agreements. The Board was aware that there are alternatives
to retaining the Manager.
PORTFOLIO MANAGEMENT SERVICES AND PERFORMANCE. In its evaluation of the
quality of the portfolio management services provided, the Board considered the
experience of George R. Evans and the Manager's global investment team and
analysts. Mr. Evans has had over 17 years of experience managing equity
investments and has been primarily responsible for the day-to-day management of
the Fund's portfolio since its inception in March 1996. Mr. Evans has been Vice
President of the Manager since October 1993 and Director of International
Equities of the Manager since July 2004. He was Vice President
39 | OPPENHEIMER INTERNATIONAL GROWTH FUND
BOARD APPROVAL OF THE FUND'S INVESTMENT
ADVISORY AGREEMENT Unaudited / Continued
- --------------------------------------------------------------------------------
of HarbourView Asset Management Corporation from July 1994 through November 2001
and is an officer of other portfolios in the OppenheimerFunds complex.
The Board reviewed information, prepared by the Manager and by the
independent consultant, comparing the Fund's historical performance to relevant
market indices and to the performance of other international multi-cap growth
funds (including both funds advised by the Manager and funds advised by other
investment advisers). The Board also receives and reviews comparative
performance information regarding the Fund and other funds at each Board
meeting. The Board noted that the Fund's one-year, three-year and five-year
performance were better than its peer group average.
MANAGEMENT FEES AND EXPENSES. The Board also reviewed information,
including comparative information, regarding the fees paid to the Manager and
its affiliates and the other expenses borne by the Fund. The independent
consultant provided comparative data in regard to the fees and expenses of the
Fund, other international multi-cap growth funds and international multi-cap
core funds and other funds with comparable asset levels and distribution
features. The Board noted that the Fund's contractual and actual management fees
are lower than its peer group average although the Fund's actual total expenses
are slightly higher than its peer group average. In addition, the Board
evaluated the comparability of the fees charged and the services provided to the
Fund to the fees charged and services provided to other types of entities
advised by the Manager.
PROFITABILITY OF THE MANAGER AND AFFILIATES. The Board also reviewed
information regarding the cost of services provided by the Manager and its
affiliates and the Manager's profitability. The Board considered that the
Manager must be able to pay and retain experienced professional personnel at
competitive rates to provide services to the Fund and that maintaining the
financial viability of the Manager is important in order for the Manager to
continue to provide significant services to the Fund and its shareholders. In
addition the Board considered information that was provided regarding the direct
and indirect benefits the Manager receives as a result of its relationship with
the Fund, including compensation paid to the Manager's affiliates and research
provided to the Manager in connection with permissible brokerage arrangements
(soft dollar arrangements).
ECONOMIES OF SCALE. The Board reviewed the extent to which the Manager may
realize economies of scale in managing and supporting the Fund and the current
level of Fund assets in relation to the Fund's breakpoint schedule for its
management fees. The Board considered that the fund has recently experienced
modest asset growth and that, based on current asset levels, the Fund is not yet
approaching its last management fee breakpoint.
40 | OPPENHEIMER INTERNATIONAL GROWTH FUND
CONCLUSIONS. These factors were also considered by the independent
Trustees meeting separately from the full Board, assisted by experienced counsel
to the Fund and the independent Trustees. Fund counsel is independent of the
Manager within the meaning and intent of the Securities and Exchange Commission
Rules.
Based on its review of the information it received and its evaluations
described above, the Board, including a majority of the independent Trustees,
concluded that the nature, extent and quality of the services provided to the
Fund by the Manager are a benefit to the Fund and in the best interest of the
Fund's shareholders and that the amount and structure of the compensation
received by the Manager and its affiliates are reasonable in relation to the
services provided. Accordingly, the Board elected to continue the investment
advisory agreement for another year. In arriving at this decision, the Board did
not single out any factor or factors as being more important than others, but
considered all of the factors together. The Board judged the terms and
conditions of the advisory agreement, including the management fee, in light of
all of the surrounding circumstances.
41 | OPPENHEIMER INTERNATIONAL GROWTH FUND
ITEM 2. CODE OF ETHICS
Not applicable to semiannual reports.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
Not applicable to semiannual reports.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
Not applicable to semiannual reports.
ITEM 5. NOT APPLICABLE
ITEM 6. SCHEDULE OF INVESTMENTS
Not applicable.
ITEM 7. DISCLOSURE OF PROXY POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT
INVESTMENT COMPANIES
Not applicable to semiannual reports.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT COMPANIES
Not applicable.
ITEM 9. PURCHASE OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
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 11. CONTROLS AND PROCEDURES
(a) Based on their evaluation of registrant's disclosure controls and
procedures (as defined in rule 30a-3(c) under the Investment Company
Act of 1940 (17 CFR 270.30a-3(c)) as of May 31, 2005, 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 changes in registrant's internal controls over
financial reporting that occurred during the registrant's last
fiscal quarter that has materially affected, or is reasonably likely
to materially affect, the registrant's internal control over
financial reporting.
ITEM 12. EXHIBITS.
(A) EXHIBIT ATTACHED HERETO. (ATTACH CODE OF ETHICS AS EXHIBIT)(NOT
APPLICABLE TO SEMIANNUAL REPORTS)
(B) EXHIBITS ATTACHED HERETO. (ATTACH CERTIFICATIONS AS EXHIBITS)
(C) EXHIBITS ATTACHED HERETO. (ATTACH PORTFOLIO PROXY VOTING POLICIES
AND PROCEDURES AS REQUIRED BY ITEM 7)
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Oppenheimer International Growth Fund
By: /s/ John V. Murphy
------------------
John V. Murphy
Principal Executive Officer
Date: July 15, 2005
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ John V. Murphy
------------------
John V. Murphy
Principal Executive Officer
Date: July 15, 2005
By: /s/ Brian W. Wixted
---------------------
Brian W. Wixted
Chief Financial Officer
Date: July 15, 2005