UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-21369
OPPENHEIMER INTERNATIONAL VALUE TRUST
(Exact name of registrant as specified in charter)
6803 SOUTH TUCSON WAY, CENTENNIAL, COLORADO 80112-3924
(Address of principal executive offices) (Zip code)
ROBERT G. ZACK, ESQ.
OPPENHEIMERFUNDS, INC.
TWO WORLD FINANCIAL CENTER, NEW YORK, NEW YORK 10281-1008
(Name and address of agent for service)
Registrant's telephone number, including area code: (303) 768-3200
Date of fiscal year end: April 30
Date of reporting period: October 31, 2005
ITEM 1. REPORTS TO STOCKHOLDERS.
TOP HOLDINGS AND ALLOCATIONS
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TOP TEN COMMON STOCK HOLDINGS
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Aegon NV 2.4%
- --------------------------------------------------------------------------------
Swiss Reinsurance Co. 2.4
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Nestle SA 2.3
- --------------------------------------------------------------------------------
ENI SpA 2.2
- --------------------------------------------------------------------------------
Credit Agricole SA 2.2
- --------------------------------------------------------------------------------
Petroleum Geo-Services ASA 2.1
- --------------------------------------------------------------------------------
Fondiaria-Sai SpA 2.1
- --------------------------------------------------------------------------------
Total SA, B Shares 2.0
- --------------------------------------------------------------------------------
Royal Bank of Scotland Group plc (The) 1.9
- --------------------------------------------------------------------------------
Toyota Motor Corp. 1.9
Portfolio holdings and allocations are subject to change. Percentages are as of
October 31, 2005, and are based on net assets. For more current Fund holdings,
please visit www.oppenheimerfunds.com.
TOP TEN GEOGRAPHICAL HOLDINGS
- --------------------------------------------------------------------------------
Japan 17.3%
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United Kingdom 14.2
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France 13.3
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United States 7.3
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Germany 6.2
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The Netherlands 5.3
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Italy 4.6
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Switzerland 4.5
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Hong Kong 3.8
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Greece 3.7
Portfolio holdings and allocations are subject to change. Percentages are as of
October 31, 2005, and are based on the total market value of investments.
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10 | OPPENHEIMER INTERNATIONAL VALUE FUND
- --------------------------------------------------------------------------------
REGIONAL ALLOCATION
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Europe 63.9%
Asia 23.0
United States/Canada 10.2
Latin America 1.6
Middle East/Africa 1.3
Portfolio holdings and allocations are subject to change. Percentages are as of
October 31, 2005, and are based on the total market value of investments.
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11 | OPPENHEIMER INTERNATIONAL VALUE 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.
Please remember this Fund has a limited operating history.
CLASS A shares of the Fund were first offered on 8/1/03. Unless otherwise noted,
Class A returns include the current maximum initial sales charge of 5.75%.
CLASS B shares of the Fund were first publicly offered on 5/6/04. Unless
otherwise noted, Class B returns include the applicable contingent deferred
sales charge of 5% (1-year). Class B shares are subject to an annual 0.75%
asset-based sales charge.
CLASS C shares of the Fund were first publicly offered on 5/6/04. 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 Y shares of the Fund were first publicly offered on 9/27/05. Class Y
shares are offered only to certain institutional investors under special
agreement with the Distributor.
An explanation of the calculation of performance is in the Fund's Statement of
Additional Information.
12 | OPPENHEIMER INTERNATIONAL VALUE FUND
FUND EXPENSES
- --------------------------------------------------------------------------------
FUND EXPENSES. As a shareholder of the Fund, you incur two types of costs: (1)
transaction costs, which may include sales charges (loads) on purchase payments,
contingent deferred sales charges on redemptions; and redemption fees, if any;
and (2) ongoing costs, including management fees; distribution and service fees;
and other Fund expenses. These examples are intended to help you understand your
ongoing costs (in dollars) of investing in the Fund and to compare these costs
with the ongoing costs of investing in other mutual funds.
The 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 October 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 VALUE 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.
14 | OPPENHEIMER INTERNATIONAL VALUE FUND
- --------------------------------------------------------------------------------
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT PAID DURING
VALUE VALUE 6 MONTHS ENDED
(5/1/05) (10/31/05) OCTOBER 31, 2005 1,2
- --------------------------------------------------------------------------------
Class A Actual $ 1,000.00 $ 1,054.80 $ 7.48
- --------------------------------------------------------------------------------
Class A Hypothetical 1,000.00 1,017.95 7.35
- --------------------------------------------------------------------------------
Class B Actual 1,000.00 1,049.70 12.05
- --------------------------------------------------------------------------------
Class B Hypothetical 1,000.00 1,013.51 11.84
- --------------------------------------------------------------------------------
Class C Actual 1,000.00 1,050.40 11.54
- --------------------------------------------------------------------------------
Class C Hypothetical 1,000.00 1,014.01 11.33
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT PAID DURING
VALUE VALUE THE PERIOD ENDED
(9/27/05) (10/31/05) OCTOBER 31, 2005 2,3
- --------------------------------------------------------------------------------
Class Y Actual 1,000.00 975.60 0.77
- --------------------------------------------------------------------------------
Class Y Hypothetical 1,000.00 1,021.12 4.13
Hypothetical assumes 5% annual return before expenses.
1. Actual expenses paid for Classes A, B and C are equal to the Fund's
annualized expense ratio for that class, multiplied by the average account value
over the period, multiplied by 184/365 (to reflect the one-half year period).
2. Hypothetical expenses paid for all classes are equal to the Fund's annualized
expense ratio for that class, multiplied by the average account value over the
period, multiplied by 184/365 (to reflect the one-half year period).
3. Actual expenses paid for Class Y are equal to the Fund's annualized expense
ratio for that class, multiplied by the average account value over the period,
multiplied by 35/365 [to reflect the period from September 27, 2005, (inception
of offering) to October 31, 2005].
Those annualized expense ratios based on the 6-month period ended October 31,
2005, for Classes A, B and C, and for the period from September 27, 2005
(inception of offering), to October 31, 2005, for Class Y are as follows:
CLASS EXPENSE RATIOS
- ---------------------------
Class A 1.44%
- ---------------------------
Class B 2.32
- ---------------------------
Class C 2.22
- ---------------------------
Class Y 0.81
The expense ratios reflect voluntary waivers or reimbursements of expenses by
the Fund's Manager 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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15 | OPPENHEIMER INTERNATIONAL VALUE FUND
STATEMENT OF INVESTMENTS October 31, 2005 / Unaudited
- --------------------------------------------------------------------------------
VALUE
SHARES SEE NOTE 1
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COMMON STOCKS--97.2%
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CONSUMER DISCRETIONARY--20.0%
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AUTO COMPONENTS--1.0%
Continental AG 10,387 $ 793,580
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AUTOMOBILES--4.1%
Bayerische Motoren
Werke AG 23,563 1,024,797
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PSA Peugeot Citroen 12,575 764,076
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Toyota Motor Corp. 32,880 1,526,500
------------------
3,315,373
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DISTRIBUTORS--2.4%
Fujitsu Devices, Inc. 50,000 621,510
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Medion AG 93,217 1,280,266
------------------
1,901,776
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HOTELS, RESTAURANTS & LEISURE--1.6%
Compass Group plc 380,710 1,280,332
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HOUSEHOLD DURABLES--4.0%
Barratt Developments plc 1 94,210 1,261,481
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Haseko Corp. 2 384,000 1,340,132
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Matsushita Electric Industrial Co. 12,000 220,267
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Waterford Wedgwood plc 2 5,103,212 397,537
------------------
3,219,417
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LEISURE EQUIPMENT & PRODUCTS--1.0%
Agfa Gevaert NV 24,020 517,299
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Sega Sammy Holdings, Inc. 4,000 144,481
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Sega Sammy Holdings, Inc. 2 3,500 125,977
------------------
787,757
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MEDIA--1.5%
Vivendi Universal SA 39,160 1,233,356
VALUE
SHARES SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------------
SPECIALTY RETAIL--3.7%
Aoyama Trading Co. 26,373 $ 791,145
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DSG International plc 439,340 1,119,793
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Kingfisher plc 280,200 1,051,426
------------------
2,962,364
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TEXTILES, APPAREL & LUXURY GOODS--0.7%
Aksa Akrilik Kimya Sanayii AS 70,586 611,066
- ------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES--9.7%
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BEVERAGES--0.9%
Heineken NV 22,050 698,435
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FOOD & STAPLES RETAILING--2.1%
J Sainsbury plc 101,813 502,785
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Tesco plc 233,350 1,242,190
------------------
1,744,975
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FOOD PRODUCTS--4.8%
CoolBrands International, Inc. 2 325,410 688,786
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Nestle SA 6,198 1,845,916
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RHM plc 2 25,970 119,055
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Unilever NV 16,950 1,192,417
------------------
3,846,174
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HOUSEHOLD PRODUCTS--1.3%
Coreana Cosmetics Co. Ltd. 185,405 419,847
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Reckitt Benckiser plc 20,113 607,694
------------------
1,027,541
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PERSONAL PRODUCTS--0.6%
Amore Pacific Corp. 1,656 493,310
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ENERGY--6.3%
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ENERGY EQUIPMENT & SERVICES--2.1%
Petroleum Geo-Services ASA 2 66,700 1,691,241
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OIL & GAS--4.2%
ENI SpA 66,890 1,792,477
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Total SA, B Shares 6,280 1,581,372
------------------
3,373,849
16 | OPPENHEIMER INTERNATIONAL VALUE FUND
VALUE
SHARES SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------------
FINANCIALS--19.6%
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COMMERCIAL BANKS--8.3%
Anglo Irish Bank Corp. 62,126 $ 847,298
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Bank of Ireland 81,322 1,230,926
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Credit Agricole SA 61,001 1,787,460
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Danske Bank AS 34,690 1,087,710
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Royal Bank of Scotland Group plc (The) 56,229 1,556,581
- ------------------------------------------------------------------------------------------------------------------------------------
Tokyo Star Bank Ltd. (The) 2 52 181,359
------------------
6,691,334
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DIVERSIFIED FINANCIAL SERVICES--3.4%
Ichiyoshi Securities Co. Ltd. 89,000 951,905
- ------------------------------------------------------------------------------------------------------------------------------------
Investor AB, B Shares 79,454 1,172,432
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Van der Moolen Holding NV 110,937 599,616
------------------
2,723,953
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INSURANCE--7.3%
Aegon NV 130,231 1,958,748
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Aksigorta AS 55,942 310,444
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Fondiaria-Sai SpA 79,118 1,670,712
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Swiss Reinsurance Co. 28,551 1,927,610
------------------
5,867,514
- ------------------------------------------------------------------------------------------------------------------------------------
REAL ESTATE--0.6%
Emperor Entertainment Hotel Ltd. 2 1,874,000 477,083
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HEALTH CARE--7.8%
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES--0.2%
Sysmex Corp. 4,500 179,319
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES--1.6%
Mediceo Paltac Holdings Co. Ltd. 70,860 1,101,189
- ------------------------------------------------------------------------------------------------------------------------------------
Sysmex Corp. 2 4,500 171,635
------------------
1,272,824
VALUE
SHARES SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS--6.0%
China Pharmaceutical Group Ltd. 2 4,614,000 $ 773,752
- ------------------------------------------------------------------------------------------------------------------------------------
GlaxoSmithKline plc 30,069 781,836
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Sanofi-Aventis SA 16,250 1,300,919
- ------------------------------------------------------------------------------------------------------------------------------------
Takeda Pharmaceutical Co. Ltd. 22,000 1,209,730
- ------------------------------------------------------------------------------------------------------------------------------------
UCB SA 16,230 802,154
------------------
4,868,391
- ------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS--15.9%
- ------------------------------------------------------------------------------------------------------------------------------------
AEROSPACE & DEFENSE--1.0%
Safran SA 39,856 792,907
- ------------------------------------------------------------------------------------------------------------------------------------
AIRLINES--2.7%
Deutsche Lufthansa AG 78,241 1,048,327
- ------------------------------------------------------------------------------------------------------------------------------------
easyJet plc 2 208,441 1,098,524
------------------
2,146,851
- ------------------------------------------------------------------------------------------------------------------------------------
BUILDING PRODUCTS--0.7%
Royal Group Technologies Ltd. 2 59,750 543,826
- ------------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES--2.8%
Bacou-Dalloz SA 12,530 1,126,245
- ------------------------------------------------------------------------------------------------------------------------------------
Quebecor World, Inc. 78,410 1,159,786
------------------
2,286,031
- ------------------------------------------------------------------------------------------------------------------------------------
CONSTRUCTION & ENGINEERING--3.4%
Okumura Corp. 149,000 932,503
- ------------------------------------------------------------------------------------------------------------------------------------
Technical Olympic SA 132,130 753,103
- ------------------------------------------------------------------------------------------------------------------------------------
Vinci SA 13,960 1,090,821
------------------
2,776,427
- ------------------------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--1.5%
Alstom 2 8,940 428,459
- ------------------------------------------------------------------------------------------------------------------------------------
RHJ International Ltd. 2 34,056 795,882
------------------
1,224,341
- ------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES--0.2%
Alarko Holding AS 4,507 160,071
17 | OPPENHEIMER INTERNATIONAL VALUE FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
VALUE
SHARES SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------------
MARINE--3.6%
Attica Holdings SA 349,440 $ 1,440,627
- ------------------------------------------------------------------------------------------------------------------------------------
Orient Overseas International Ltd. 456,000 1,452,553
------------------
2,893,180
- ------------------------------------------------------------------------------------------------------------------------------------
INFORMATION TECHNOLOGY--8.3%
- ------------------------------------------------------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT--2.0%
Nokia Oyj 76,750 1,287,875
- ------------------------------------------------------------------------------------------------------------------------------------
SunCorp Technologies Ltd. 1,708,000 327,906
------------------
1,615,781
- ------------------------------------------------------------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS--1.4%
Japan Digital Laboratory Co. Ltd. 103,600 1,147,156
- ------------------------------------------------------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS--3.4%
Epcos AG 2 52,066 630,850
- ------------------------------------------------------------------------------------------------------------------------------------
Grande Holdings Ltd. (The) 850,000 674,333
- ------------------------------------------------------------------------------------------------------------------------------------
Nichicon Corp. 64,400 827,647
- ------------------------------------------------------------------------------------------------------------------------------------
Tohoku Pioneer Corp. 58,900 634,487
------------------
2,767,317
- ------------------------------------------------------------------------------------------------------------------------------------
OFFICE ELECTRONICS--1.5%
Canon, Inc. 22,480 1,189,609
- ------------------------------------------------------------------------------------------------------------------------------------
MATERIALS--1.9%
- ------------------------------------------------------------------------------------------------------------------------------------
CHEMICALS--0.6%
GEA Group AG 2 38,864 442,944
- ------------------------------------------------------------------------------------------------------------------------------------
METALS & MINING--0.5%
Arcelor 18,450 438,027
- ------------------------------------------------------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS--0.8%
PaperlinX Ltd. 283,000 651,767
- ------------------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES--7.7%
- ------------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES--4.8%
Cable & Wireless plc 684,565 1,399,495
- ------------------------------------------------------------------------------------------------------------------------------------
France Telecom SA 42,551 1,105,578
- ------------------------------------------------------------------------------------------------------------------------------------
Telecom Italia SpA 181,410 438,518
- ------------------------------------------------------------------------------------------------------------------------------------
Telefonos de Mexico SA de CV, Cl. L 907,290 908,510
------------------
3,852,101
VALUE
SHARES SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES--2.9%
KDDI Corp. 242 $ 1,380,363
- ------------------------------------------------------------------------------------------------------------------------------------
Tim Hellas Telecommunications SA, Sponsored ADR 49,160 960,586
------------------
2,340,949
------------------
Total Common Stocks
(Cost $77,136,520) 78,330,249
PRINCIPAL
AMOUNT
- ------------------------------------------------------------------------------------------------------------------------------------
NON-CONVERTIBLE CORPORATE BONDS AND NOTES--0.5%
- ------------------------------------------------------------------------------------------------------------------------------------
Zurich Reinsurance Centre Holdings,
Inc., 7.125% Sr. Nts., 10/15/23
(Cost $274,782) $ 500,000 432,500
- ------------------------------------------------------------------------------------------------------------------------------------
JOINT REPURCHASE AGREEMENTS--7.2%
- ------------------------------------------------------------------------------------------------------------------------------------
Undivided interest of 0.89% in joint
repurchase agreement (Principal Amount/Value
$647,082,000, with a maturity value of
$647,153,179) with UBS Warburg LLC, 3.96%,
dated 10/31/05, to be repurchased at
$5,776,635 on 11/1/05, collateralized by
Federal National Mortgage Assn., 5%, 10/1/35,
with a value of $661,717,556
(Cost $5,776,000) 5,776,000 5,776,000
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE
(COST $83,187,302) 104.9% 84,538,749
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS (4.9) (3,943,000)
--------------------------------------
NET ASSETS 100.0% $ 80,595,749
======================================
18 | OPPENHEIMER INTERNATIONAL VALUE FUND
FOOTNOTES TO STATEMENT OF INVESTMENTS
1. A sufficient amount of securities has been designated to cover outstanding
foreign currency contracts. See Note 5 of Notes to Financial Statements.
2. Non-income producing security.
DISTRIBUTION OF INVESTMENTS REPRESENTING GEOGRAPHIC HOLDINGS, AS A PERCENTAGE OF
TOTAL INVESTMENTS AT VALUE, IS AS FOLLOWS:
GEOGRAPHIC HOLDINGS VALUE PERCENT
- --------------------------------------------------------------------------------
Japan $ 14,676,914 17.3%
United Kingdom 12,021,192 14.2
France 11,211,193 13.3
United States 6,208,500 7.3
Germany 5,220,764 6.2
The Netherlands 4,449,216 5.3
Italy 3,901,707 4.6
Switzerland 3,773,526 4.5
Hong Kong 3,228,544 3.8
Greece 3,154,316 3.7
Ireland 2,475,761 2.9
Canada 2,392,398 2.8
Belgium 2,115,335 2.5
Norway 1,691,241 2.0
Finland 1,287,875 1.5
Sweden 1,172,432 1.4
Denmark 1,087,710 1.3
Turkey 1,081,581 1.3
Korea, Republic of South 913,157 1.1
Mexico 908,510 1.1
Australia 651,767 0.8
Bermuda 477,083 0.6
Luxembourg 438,027 0.5
-----------------------
Total $ 84,538,749 100.0%
=======================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
19 | OPPENHEIMER INTERNATIONAL VALUE FUND
STATEMENT OF ASSETS AND LIABILITIES Unaudited
- --------------------------------------------------------------------------------
October 31, 2005
- --------------------------------------------------------------------------------
ASSETS
- --------------------------------------------------------------------------------
Investments, at value (cost $83,187,302)--see
accompanying statement of investments $ 84,538,749
- --------------------------------------------------------------------------------
Cash--foreign currencies (cost $223,672) 223,672
- --------------------------------------------------------------------------------
Unrealized appreciation on foreign currency contracts 138,295
- --------------------------------------------------------------------------------
Cash 51,611
- --------------------------------------------------------------------------------
Receivables and other assets:
Shares of beneficial interest sold 512,046
Investments sold 355,197
Interest and dividends 143,133
Other 1,892
-----------------
Total assets 85,964,595
- --------------------------------------------------------------------------------
LIABILITIES
- --------------------------------------------------------------------------------
Unrealized depreciation on foreign currency contracts 1,932
- --------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 5,276,686
Shares of beneficial interest redeemed 34,573
Distribution and service plan fees 15,877
Transfer and shareholder servicing agent fees 15,032
Shareholder communications 12,426
Trustees' compensation 830
Other 11,490
-----------------
Total liabilities 5,368,846
- --------------------------------------------------------------------------------
NET ASSETS $ 80,595,749
=================
- --------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- --------------------------------------------------------------------------------
Par value of shares of beneficial interest $ 5,325
- --------------------------------------------------------------------------------
Additional paid-in capital 76,429,013
- --------------------------------------------------------------------------------
Accumulated net investment income 202,001
- --------------------------------------------------------------------------------
Accumulated net realized gain on investments and
foreign currency transactions 2,474,074
- --------------------------------------------------------------------------------
Net unrealized appreciation on investments and
translation of assets and liabilities
denominated in foreign currencies 1,485,336
-----------------
NET ASSETS $ 80,595,749
=================
20 | OPPENHEIMER INTERNATIONAL VALUE FUND
- --------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
- --------------------------------------------------------------------------------
Class A Shares:
Net asset value and redemption price per share (based on
net assets of $50,495,306 and 3,318,246 shares of beneficial
interest outstanding) $ 15.22
Maximum offering price per share (net asset value plus sales
charge of 5.75% of offering price) $ 16.15
- --------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable
contingent deferred sales charge) and offering price per
share (based on net assets of $11,952,404 and 797,228 shares
of beneficial interest outstanding) $ 14.99
- --------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable
contingent deferred sales charge) and offering price per
share (based on net assets of $18,147,064 and 1,209,931
shares of beneficial interest outstanding) $ 15.00
- --------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per
share (based on net assets of $975 and 64 shares of
beneficial interest outstanding) $ 15.23
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
21 | OPPENHEIMER INTERNATIONAL VALUE FUND
STATEMENT OF OPERATIONS Unaudited
- --------------------------------------------------------------------------------
For the Six Months Ended October 31, 2005
- --------------------------------------------------------------------------------
INVESTMENT INCOME
- --------------------------------------------------------------------------------
Dividends (net of foreign withholding taxes of $65,569) $ 764,946
- --------------------------------------------------------------------------------
Interest 67,234
- --------------------------------------------------------------------------------
Other income 72
-----------------
Total investment income 832,252
- --------------------------------------------------------------------------------
EXPENSES
- --------------------------------------------------------------------------------
Management fees 278,806
- --------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 47,964
Class B 51,920
Class C 69,383
- --------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 41,461
Class B 16,364
Class C 15,933
- --------------------------------------------------------------------------------
Shareholder communications:
Class A 11,843
Class B 3,669
Class C 3,111
- --------------------------------------------------------------------------------
Custodian fees and expenses 5,577
- --------------------------------------------------------------------------------
Trustees' compensation 2,622
- --------------------------------------------------------------------------------
Other 26,060
-----------------
Total expenses 574,713
Less reduction to custodian expenses (215)
Less waivers and reimbursements of expenses (237)
-----------------
Net expenses 574,261
- --------------------------------------------------------------------------------
NET INVESTMENT INCOME 257,991
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
- --------------------------------------------------------------------------------
Net realized gain on:
Investments 2,119,889
Foreign currency transactions 82,895
-----------------
Net realized gain 2,202,784
- --------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on:
Investments 3,197,427
Translation of assets and liabilities denominated in foreign
currencies (3,008,696)
-----------------
Net change in unrealized appreciation 188,731
- --------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 2,649,506
=================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
22 | OPPENHEIMER INTERNATIONAL VALUE FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
OCTOBER 31, 2005 APRIL 30,
(UNAUDITED) 2005
- ---------------------------------------------------------------------------------------------------------------
OPERATIONS
- ---------------------------------------------------------------------------------------------------------------
Net investment income $ 257,991 $ 121,013
- ---------------------------------------------------------------------------------------------------------------
Net realized gain 2,202,784 581,771
- ---------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation 188,731 88,109
--------------------------------
Net increase in net assets resulting from operations 2,649,506 790,893
- ---------------------------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
- ---------------------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A -- (504,505)
Class B -- (104,500)
Class C -- (113,577)
Class Y -- --
- ---------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
- ---------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from beneficial interest transactions:
Class A 18,968,877 22,890,596
Class B 3,832,522 7,739,035
Class C 8,052,560 9,640,514
Class Y 1,000 --
- ---------------------------------------------------------------------------------------------------------------
NET ASSETS
- ---------------------------------------------------------------------------------------------------------------
Total increase 33,504,465 40,338,456
- ---------------------------------------------------------------------------------------------------------------
Beginning of period 47,091,284 6,752,828
--------------------------------
End of period (including accumulated net investment income
(loss) of $202,001 and $(55,990), respectively) $ 80,595,749 $ 47,091,284
================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
23 | OPPENHEIMER INTERNATIONAL VALUE FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
OCTOBER 31, 2005 APRIL 30,
CLASS A (UNAUDITED) 2005 2004 1
- ----------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- --------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 14.43 $ 12.98 $ 10.00
- --------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .08 2 .15 2 .01
Net realized and unrealized gain .71 2.10 3.02
---------------------------------
Total from investment operations .79 2.25 3.03
- --------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Distributions from net realized gain -- (.80) (.05)
- --------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 15.22 $ 14.43 $ 12.98
=================================
- --------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 5.48% 17.74% 30.35%
- --------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 50,495 $ 29,831 $ 6,753
- --------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 41,044 $ 11,186 $ 6,126
- --------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income 1.09% 1.05% 0.14%
Total expenses 1.44% 1.63% 2.13%
Expenses after waivers and reduction to custodian expenses 1.44% 1.54% 1.70%
- --------------------------------------------------------------------------------------------------------
Portfolio turnover rate 30% 60% 30%
1. For the period from August 1, 2003 (commencement of operations) to April 30,
2004.
2. Per share amounts calculated based on the average shares outstanding during
the period.
3. Assumes an investment at net asset value on the business day before the first
day of the fiscal period, with all dividends and distributions reinvested in
additional shares on the reinvestment date, and redemption at the net asset
value calculated on the last business day of the fiscal period. Sales charges
are not reflected in the total returns. Total returns are not annualized for
periods of less than one full year. Returns do not reflect the deduction of
taxes a shareholder would pay on Fund distributions or the redemption of Fund
shares.
4. Annualized for periods of less than one full year.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
24 | OPPENHEIMER INTERNATIONAL VALUE FUND
SIX MONTHS CLASS B SIX MONTHS CLASS C
ENDED PERIOD ENDED PERIOD
OCT. 31, 2005 ENDED OCT. 31, 2005 ENDED
(UNAUDITED) APRIL 30, 2005 1 (UNAUDITED) APRIL 30, 2005 1
- ---------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 14.28 $ 12.99 $ 14.28 $ 12.99
- ---------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .02 2 .01 2 .02 2 .02 2
Net realized and unrealized gain .69 2.08 .70 2.07
------------------------------------------------------------------------
Total from investment operations .71 2.09 .72 2.09
- ---------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Distributions from net realized gain -- (.80) -- (.80)
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 14.99 $ 14.28 $ 15.00 $ 14.28
========================================================================
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 4.97% 16.47% 5.04% 16.47%
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ---------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 11,953 $ 7,695 $ 18,147 $ 9,565
- ---------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 10,392 $ 1,997 $ 13,814 $ 2,364
- ---------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income 0.25% 0.04% 0.28% 0.12%
Total expenses 2.32% 2.59% 2.22% 2.44%
Expenses after waivers and
reduction to custodian expenses 2.32% 2.45% 2.22% 2.41%
- ---------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 30% 60% 30% 60%
1. For the period from May 6, 2004 (inception of offering) to April 30, 2005.
2. Per share amounts calculated based on the average shares outstanding during
the period.
3. Assumes an investment at net asset value on the business day before the first
day of the fiscal period, with all dividends and distributions reinvested in
additional shares on the reinvestment date, and redemption at the net asset
value calculated on the last business day of the fiscal period. Sales charges
are not reflected in the total returns. Total returns are not annualized for
periods of less than one full year. Returns do not reflect the deduction of
taxes a shareholder would pay on Fund distributions or the redemption of Fund
shares.
4. Annualized for periods of less than one full year.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
25 | OPPENHEIMER INTERNATIONAL VALUE FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
PERIOD
ENDED
OCTOBER 31, 2005 1
CLASS Y (UNAUDITED)
- --------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- --------------------------------------------------------------------------------
Net asset value, beginning of period $ 15.61
- --------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income -- 2,3
Net realized and unrealized loss (.38)
-------------------
Total from investment operations (.38)
- --------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Distributions from net realized gain --
- --------------------------------------------------------------------------------
Net asset value, end of period $ 15.23
===================
- --------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 4 (2.44)%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 1
- --------------------------------------------------------------------------------
Average net assets (in thousands) $ 1
- --------------------------------------------------------------------------------
Ratios to average net assets: 5
Net investment income 0.40%
Total expenses 0.81% 6
- --------------------------------------------------------------------------------
Portfolio turnover rate 30%
1. For the period from September 27, 2005 (commencement of operations) to
October 31, 2005.
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 at net asset value on the business day before the first
day of the fiscal period, with all dividends and distributions reinvested in
additional shares on the reinvestment date, and redemption at the net asset
value calculated on the last business day of the fiscal period. Sales charges
are not reflected in the total returns. Total returns are not annualized for
periods of less than one full year. Returns do not reflect the deduction of
taxes a shareholder would pay on Fund distributions or the redemption of Fund
shares.
5. Annualized for periods of less than one full year.
6. Reduction to custodian expenses less than 0.01%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
26 | OPPENHEIMER INTERNATIONAL VALUE FUND
NOTES TO FINANCIAL STATEMENTS Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer International Value Fund (the Fund), a series of Oppenheimer
International Value Trust, is an open-end management investment company
registered under the Investment Company Act of 1940, as amended. The Fund's
investment objective is to seek long-term capital appreciation. The Fund's
investment advisor is OppenheimerFunds, Inc. (the Manager).
The Fund offers Class A, Class B, Class C and Class Y shares. Class A
shares are sold at their offering price, which is normally net asset value plus
a front-end sales charge. Class B and Class C and shares are sold without a
front-end sales charge but may be subject to a contingent deferred sales charge
(CDSC). Class Y shares are sold to certain institutional investors without
either a front-end sales charge or a CDSC, however, the institutional investor
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 and C have
separate distribution and/or service plans. No such plan has been adopted for
Class Y shares. 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 may be
valued primarily using dealer-supplied valuations or a portfolio pricing service
authorized by the Board of Trustees. Securities listed or traded on National
Stock Exchanges or other domestic exchanges are valued based on the last sale
price of the security traded on that exchange prior to the time when the Fund's
assets are valued. Securities traded on NASDAQ are valued based on the closing
price provided by NASDAQ prior to the time when the Fund's assets are valued. In
the absence of a sale, the security is valued at the last sale price on the
prior trading day, if it is within the spread of the closing "bid" and "asked"
prices, and if not, at the closing bid price. Securities traded on foreign
exchanges are valued based on the last sale price on the principal exchange on
which the security is traded, in the country that is identified by the portfolio
pricing service, prior to the time when the Fund's assets are valued. In the
absence of a sale, the security is valued at the official closing price on the
principal exchange. Corporate, government and municipal debt instruments having
a remaining maturity in excess of sixty days and all mortgage-backed securities
will be valued at the mean between the "bid" and "asked" prices.
27 | OPPENHEIMER INTERNATIONAL VALUE FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
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
(including restricted securities) for which market quotations are not readily
available are valued at their fair value. Foreign and domestic securities whose
values have been materially affected by what the Manager identifies as a
significant event occurring before the Fund's assets are valued but after the
close of their respective exchanges will be fair valued. Fair value is
determined in good faith using consistently applied procedures under the
supervision of the Board of Trustees. Short-term "money market type" debt
securities with remaining maturities of sixty days or less are valued at
amortized cost (which approximates market value).
- --------------------------------------------------------------------------------
FOREIGN CURRENCY TRANSLATION. The Fund's accounting records are maintained in
U.S. dollars. 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.
28 | OPPENHEIMER INTERNATIONAL VALUE FUND
- --------------------------------------------------------------------------------
ALLOCATION OF INCOME, EXPENSES, GAINS AND LOSSES. Income, expenses (other than
those attributable to a specific class), gains and losses are allocated on a
daily basis to each class of shares based upon the relative proportion of net
assets represented by such class. Operating expenses directly attributable to a
specific class are charged against the operations of that class.
- --------------------------------------------------------------------------------
FEDERAL TAXES. The Fund intends to comply with provisions of the Internal
Revenue Code applicable to regulated investment companies and to distribute
substantially all of its investment company taxable income, including any net
realized gain on investments not offset by capital loss carryforwards, if any,
to shareholders, therefore, no federal income or excise tax provision is
required.
Net investment income (loss) and net realized gain (loss) may differ for
financial statement and tax purposes. The character of dividends and
distributions made during the fiscal year from net investment income or net
realized gains may differ from their ultimate characterization for federal
income tax purposes. Also, due to timing of dividends and distributions, the
fiscal year in which amounts are distributed may differ from the fiscal year in
which the income or net realized gain was recorded by the Fund.
- --------------------------------------------------------------------------------
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.
The Board of Trustees has adopted a deferred compensation plan for
independent trustees that enables trustees to elect to defer receipt of all or a
portion of the annual compensation they are entitled to receive from the Fund.
For purposes of determining the amount owed to the Trustee under the plan,
deferred amounts are treated as though equal dollar amounts had been invested in
shares of the Fund or in other Oppenheimer funds selected by the Trustee. The
Fund purchases shares of the funds selected for deferral by the Trustee in
amounts equal to his or her deemed investment, resulting in a Fund asset equal
to the deferred compensation liability. Such assets are included as a component
of "Other" within the asset section of the Statement of Assets and Liabilities.
Deferral of trustees' fees under the plan will not affect the net assets of the
Fund, and will not materially affect the Fund's assets, liabilities or net
investment income per share. Amounts will be deferred until distributed in
accordance to the Plan.
- --------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations,
are recorded on the ex-dividend date. Income and capital gain distributions, if
any, are declared and paid annually.
- --------------------------------------------------------------------------------
INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date or upon
ex-dividend notification in the case of certain foreign dividends where the
ex-dividend date may have passed. Non-cash dividends included in dividend
income, if any, are recorded at the fair market value of the securities
received. Interest income, which includes accretion of discount and amortization
of premium, is accrued as earned.
29 | OPPENHEIMER INTERNATIONAL VALUE FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
CUSTODIAN FEES. Custodian Fees and Expenses in the Statement of Operations may
include interest expense incurred by the Fund on any cash overdrafts of its
custodian account during the period. 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.
- --------------------------------------------------------------------------------
2. SHARES OF BENEFICIAL INTEREST
The Fund has authorized an unlimited number of $0.001 par value shares of
beneficial interest of each class. Transactions in shares of beneficial interest
were as follows:
SIX MONTHS ENDED OCTOBER 31, 2005 1 YEAR ENDED APRIL 30, 2005 2
SHARES AMOUNT SHARES AMOUNT
- ----------------------------------------------------------------------------------------------------------
CLASS A
Sold 1,499,752 $ 22,718,337 2,140,742 $ 30,773,644
Dividends and/or
distributions reinvested -- -- 35,246 477,946
Redeemed (248,235) (3,749,460) 3 (629,606) (8,360,994) 4
---------------------------------------------------------------------------
Net increase 1,251,517 $ 18,968,877 1,546,382 $ 22,890,596
===========================================================================
- ----------------------------------------------------------------------------------------------------------
CLASS B
Sold 341,487 $ 5,076,655 567,619 $ 8,158,768
Dividends and/or
distributions reinvested -- -- 6,829 92,060
Redeemed (83,009) (1,244,133) 3 (35,698) (511,793) 4
---------------------------------------------------------------------------
Net increase 258,478 $ 3,832,522 538,750 $ 7,739,035
===========================================================================
- ----------------------------------------------------------------------------------------------------------
CLASS C
Sold 610,642 $ 9,114,527 686,044 $ 9,883,409
Dividends and/or
distributions reinvested -- -- 7,989 107,612
Redeemed (70,462) (1,061,967) 3 (24,282) (350,507) 4
---------------------------------------------------------------------------
Net increase 540,180 $ 8,052,560 669,751 $ 9,640,514
===========================================================================
30 | OPPENHEIMER INTERNATIONAL VALUE FUND
SIX MONTHS ENDED OCTOBER 31, 2005 1 YEAR ENDED APRIL 30, 2005 2
SHARES AMOUNT SHARES AMOUNT
- --------------------------------------------------------------------------------------------------------
CLASS Y
Sold 64 $ 1,000 -- $ --
Dividends and/or
distributions reinvested -- -- -- --
Redeemed -- -- -- --
-------------------------------------------------------------------------
Net increase 64 $ 1,000 -- $ --
=========================================================================
1. For the six months ended October 31, 2005, for Class A, Class B and Class C
shares and for the period from September 27, 2005 (inception of offering) to
October 31, 2005, for Class Y shares.
2. For the year ended April 30, 2005, for Class A shares and for the period from
May 6, 2004 (inception of offering) to April 30, 2005, for Class B and Class C
shares.
3. Net of redemption fees of $2,680, $678 and $902 for Class A, Class B and
Class C.
4. Net of redemption fees of $2,106, $376 and $445 for Class A, Class B and
Class C.
- --------------------------------------------------------------------------------
3. PURCHASES AND SALES OF SECURITIES
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations, for the six months ended October 31, 2005, were as
follows:
PURCHASES SALES
- ------------------------------------------------------------
Investment securities $ 51,220,565 $ 18,834,730
- --------------------------------------------------------------------------------
4.FEES AND OTHER TRANSACTIONS WITH AFFILIATES
MANAGEMENT FEES. Management fees paid to the Manager were in accordance with the
investment advisory agreement with the Fund which provides for a fee at an
annual rate of 0.85% of the first $500 million of average annual net assets of
the Fund, 0.75% of the next $500 million and 0.70% of average annual net assets
in excess of $1 billion.
- --------------------------------------------------------------------------------
TRANSFER AGENT FEES. OppenheimerFunds Services (OFS), a division of the Manager,
acts as the transfer and shareholder servicing agent for the Fund. The Fund pays
OFS a per account fee. For the six months ended October 31, 2005, the Fund paid
$65,402 to OFS for services to the Fund.
Additionally, Class Y shares are subject to minimum fees of $10,000 per
annum for assets of $10 million or more. The Class Y shares are subject to the
minimum fees in the event that the per account fee does not equal or exceed the
applicable minimum fees. OFS may voluntarily waive the minimum fees.
- --------------------------------------------------------------------------------
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
31 | OPPENHEIMER INTERNATIONAL VALUE FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued
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 AND CLASS C SHARES. The Fund has
adopted Distribution and Service Plans for Class B and Class C shares to
compensate the Distributor for its services in connection with the distribution
of those shares and servicing accounts. Under the plans, the Fund pays the
Distributor an annual asset-based sales charge of 0.75% on Class B and Class C
shares. The Distributor also receives a service fee of 0.25% under each plan. If
either the Class B or Class C plan is terminated by the Fund or by the
shareholders of a class, the Board of Trustees and its independent trustees must
determine whether the Distributor shall be entitled to payment from the Fund of
all or a portion of the service fee and/or asset-based sales charge in respect
to shares sold prior to the effective date of such termination. The
Distributor's aggregate uncompensated expenses under the plan at October 31,
2005 for Class B and Class C shares were $97,078 and $157,985, respectively.
Fees incurred by the Fund under the plans are detailed in the Statement of
Operations.
- --------------------------------------------------------------------------------
SALES CHARGES. Front-end sales charges and contingent deferred sales charges
(CDSC) do not represent expenses of the Fund. They are deducted from the
proceeds of sales of Fund shares prior to investment or from redemption proceeds
prior to remittance, as applicable. The sales charges retained by the
Distributor from the sale of shares and the CDSC retained by the Distributor on
the redemption of shares is shown in the table below for the period indicated.
CLASS A CLASS B CLASS C
CLASS A CONTINGENT CONTINGENT CONTINGENT
FRONT-END DEFERRED DEFERRED DEFERRED
SALES CHARGES SALES CHARGES SALES CHARGES SALES CHARGES
SIX MONTHS RETAINED BY RETAINED BY RETAINED BY RETAINED BY
ENDED DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR
- --------------------------------------------------------------------------------
October 31, 2005 $ 73,859 $ -- $ 5,121 $ 3,070
- --------------------------------------------------------------------------------
WAIVERS AND REIMBURSEMENTS OF EXPENSES. The Manager has voluntarily agreed to
waive management fees and/or reimburse the Fund for certain expenses so that
"Total Expenses" will not exceed 1.70% for Class A shares, 2.45% for Class B
shares and Class C shares, and 1.45% for Class Y shares. During the six months
ended October 31, 2005, the Manager reimbursed the Fund $237 for Class B shares.
The voluntary waiver and/or expense reimbursements may be amended or withdrawn
at any time without prior notice to shareholders.
OFS has voluntarily agreed to limit transfer and shareholder servicing
agent fees for all classes to 0.35% of average annual net assets per class. This
undertaking may be amended or withdrawn at any time.
32 | OPPENHEIMER INTERNATIONAL VALUE FUND
- --------------------------------------------------------------------------------
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 October 31, 2005, the Fund had outstanding foreign currency contracts as
follows:
CONTRACT VALUATION
EXPIRATION AMOUNT AS OF UNREALIZED UNREALIZED
CONTRACT DESCRIPTION DATES (000s) OCT. 31, 2005 APPRECIATION DEPRECIATION
- ----------------------------------------------------------------------------------------------------------
CONTRACTS TO PURCHASE
Hong Kong Dollar [HKD] 11/2/05 408HKD $ 52,655 $ -- $ 2
Japanese Yen [JPY] 11/1/05-11/4/05 100,247JPY 861,456 -- 1,930
----------------------------
-- 1,932
----------------------------
CONTRACTS TO SELL
British Pound Sterling [GBP] 11/2/05 327GBP 578,847 3,236 --
Euro [EUR] 12/22/05 2,450EUR 2,944,725 54,075 --
Japanese Yen [JPY] 12/22/05 122,000JPY 1,054,586 80,984 --
----------------------------
138,295 --
----------------------------
Total unrealized appreciation and depreciation $ 138,295 $ 1,932
============================
- --------------------------------------------------------------------------------
6. 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
33 | OPPENHEIMER INTERNATIONAL VALUE FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
6. LITIGATION Continued
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.
34 | OPPENHEIMER INTERNATIONAL VALUE FUND
REPORT OF SHAREHOLDER MEETING Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
On September 26, 2005, a shareholder meeting of the Oppenheimer International
Value Fund was held at which the eleven Trustees identified below were elected
(Proposal No. 1) and the sub-proposals in (Proposal No. 2) were approved as
described in the Fund's proxy statement for that meeting. The following is a
report of the votes cast:
- --------------------------------------------------------------------------------
PROPOSAL NO.1
NOMINEE FOR WITHHELD TOTAL
- --------------------------------------------------------------------------------
TRUSTEES
Matthew P. Fink 2,087,677.636 41,697.235 2,129,374.871
Robert G. Galli 2,083,679.535 45,695.336 2,129,374.871
Phillip A. Griffiths 2,085,753.049 43,621.822 2,129,374.871
Mary F. Miller 2,087,616.762 41,758.109 2,129,374.871
Joel W. Motley 2,086,805.442 42,569.429 2,129,374.871
John V. Murphy 2,086,605.210 42,769.661 2,129,374.871
Kenneth A. Randall 2,083,291.126 46,083.745 2,129,374.871
Russell S. Reynolds, Jr. 2,083,291.126 46,083.745 2,129,374.871
Joseph M. Wikler 2,087,356.447 42,018.424 2,129,374.871
Peter I. Wold 2,087,356.447 42,018.424 2,129,374.871
Clayton K. Yeutter 2,084,162.476 45,212.395 2,129,374.871
- --------------------------------------------------------------------------------
PROPOSAL NO. 2 Proposal to change the policy on
FOR AGAINST ABSTAIN BROKER NON-VOTE TOTAL
- --------------------------------------------------------------------------------
2b: Concentration of Investments
1,467,742.102 57,215.957 53,861.812 550,555.000 2,129,374.871
2e: Real Estate and Commodities
1,468,402.185 61,271.700 49,145.986 550,555.000 2,129,374.871
2f: Senior Securities
1,449,702.704 66,562.308 62,554.859 550,555.000 2,129,374.871
35 | OPPENHEIMER INTERNATIONAL VALUE FUND
PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES;
UPDATES TO STATEMENTS OF INVESTMENTS Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which
the Fund votes proxies relating to securities ("portfolio proxies") held by the
Fund. A description of the Fund's Portfolio Proxy Voting Policies and Procedures
is available (i) without charge, upon request, by calling the Fund toll-free at
1.800.525.7048, (ii) on the Fund's website at www.oppenheimerfunds.com, and
(iii) on the SEC's website at www.sec.gov. In addition, the Fund is required to
file Form N-PX, with its complete proxy voting record for the 12 months ended
June 30th, no later than August 31st of each year. The Fund's voting record is
available (i) without charge, upon request, by calling the Fund toll-free at
1.800.525.7048, and (ii) in the Form N-PX filing on the SEC's website at
www.sec.gov.
The Fund files its complete schedule of portfolio holdings with the SEC
for the first quarter and the third quarter of each fiscal year on Form N-Q. The
Fund's Form N-Q filings are available on the SEC's website at
http://www.sec.gov. Those forms may be reviewed and copied at the SEC's Public
Reference Room in Washington D.C. Information on the operation of the Public
Reference Room may be obtained by calling 1-800-SEC-0330.
36 | OPPENHEIMER INTERNATIONAL VALUE FUND
ITEM 2. CODE OF ETHICS.
Not applicable to semiannual reports.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable to semiannual reports.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable to semiannual reports.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS.
Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
THE FUND'S GOVERNANCE COMMITTEE PROVISIONS WITH RESPECT TO NOMINATIONS OF
DIRECTORS/TRUSTEES TO THE RESPECTIVE BOARDS
1. The Fund's Governance Committee (the "Committee") will evaluate potential
Board candidates to assess their qualifications. The Committee shall have
the authority, upon approval of the Board, to retain an executive search
firm to assist in this effort. The Committee may consider recommendations
by business and personal contacts of current Board members and by
executive search firms which the Committee may engage from time to time
and may also consider shareholder recommendations. The Committee may
consider the advice and recommendation of the Funds' investment manager
and its affiliates in making the selection.
2. The Committee shall screen candidates for Board membership. The Committee
has not established specific qualifications that it believes must be met
by a trustee nominee. In evaluating trustee nominees, the Committee
considers, among other things, an individual's
background, skills, and experience; whether the individual is an
"interested person" as defined in the Investment Company Act of 1940; and
whether the individual would be deemed an "audit committee financial
expert" within the meaning of applicable SEC rules. The Committee also
considers whether the individual's background, skills, and experience will
complement the background, skills, and experience of other nominees and
will contribute to the Board. There are no differences in the manner in
which the Committee evaluates nominees for trustees based on whether the
nominee is recommended by a shareholder.
3. The Committee may consider nominations from shareholders for the Board at
such times as the Committee meets to consider new nominees for the Board.
The Committee shall have the sole discretion to determine the candidates
to present to the Board and, in such cases where required, to
shareholders. Recommendations for trustee nominees should, at a minimum,
be accompanied by the following:
o the name, address, and business, educational, and/or other pertinent
background of the person being recommended;
o a statement concerning whether the person is an "interested person"
as defined in the Investment Company Act of 1940;
o any other information that the Funds would be required to include in
a proxy statement concerning the person if he or she was nominated;
and
o the name and address of the person submitting the recommendation
and, if that person is a shareholder, the period for which that
person held Fund shares.
The recommendation also can include any additional information which the
person submitting it believes would assist the Committee in evaluating the
recommendation.
4. Shareholders should note that a person who owns securities issued by
Massachusetts Mutual Life Insurance Company (the parent company of the
Funds' investment adviser) would be deemed an "interested person" under
the Investment Company Act of 1940. In addition, certain other
relationships with Massachusetts Mutual Life Insurance Company or its
subsidiaries, with registered broker-dealers, or with the Funds' outside
legal counsel may cause a person to be deemed an "interested person."
5. Before the Committee decides to nominate an individual as a trustee,
Committee members and other directors customarily interview the individual
in person. In addition, the individual customarily is asked to complete a
detailed questionnaire which is designed to elicit information which must
be disclosed under SEC and stock exchange rules and to determine whether
the individual is subject to any statutory disqualification from serving
as a trustee of a registered investment company.
ITEM 11. CONTROLS AND PROCEDURES.
Based on their evaluation of the registrant's disclosure controls and procedures
(as defined in rule 30a-3(c) under the Investment Company Act of 1940 (17 CFR
270.30a-3(c)) as of October 31, 2005, the registrant's principal executive
officer and principal financial officer found the registrant's disclosure
controls and procedures to provide reasonable assurances that information
required to be disclosed by the registrant in the reports that it files under
the Securities Exchange Act of 1934 (a) is accumulated and communicated to
registrant's management, including its principal executive officer and principal
financial officer, to allow timely decisions regarding required disclosure, and
(b) is recorded, processed, summarized and reported, within the time periods
specified in the rules and forms adopted by the U.S. Securities and Exchange
Commission.
There have been no changes in the registrant's internal controls over financial
reporting that occurred during the registrant's second fiscal quarter of the
period covered by this report that have materially affected, or are reasonably
likely to materially affect, the registrant's internal control over financial
reporting.
ITEM 12. EXHIBITS.
(a) (1) Not applicable to semiannual reports.
(2) Exhibits attached hereto.
(3) Not applicable.
(b) Exhibit attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Oppenheimer International Value Trust
By: /s/ John V. Murphy
------------------
John V. Murphy
Principal Executive Officer
Date: December 20, 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: December 20, 2005
By: /s/ Brian W. Wixted
-------------------
Brian W. Wixted
Principal Financial Officer
Date: December 20, 2005