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
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OPPENHEIMER INTERNATIONAL GROWTH FUND
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(Exact name of registrant as specified in charter)
6803 SOUTH TUCSON WAY, CENTENNIAL, COLORADO 80112-3924
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(Address of principal executive offices) (Zip code)
Robert G. Zack, Esq.
OppenheimerFunds, Inc.
TWO WORLD FINANCIAL CENTER, NEW YORK, NEW YORK 10281-1008
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(Name and address of agent for service)
Registrant's telephone number, including area code: (303) 768-3200
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Date of fiscal year end: November 30
Date of reporting period: November 30, 2005
ITEM 1. REPORTS TO STOCKHOLDERS.
TOP HOLDINGS AND ALLOCATIONS
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TOP TEN GEOGRAPHICAL HOLDINGS
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Japan 18.3%
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United Kingdom 15.8
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France 11.7
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Switzerland 7.5
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Germany 6.5
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Australia 6.3
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The Netherlands 3.8
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Sweden 3.6
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India 3.2
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United States 3.1
Portfolio holdings and allocations are subject to change. Percentages are as of
November 30, 2005, and are based on the total market value of investments.
TOP TEN COMMON STOCK HOLDINGS
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Novogen Ltd. 2.2%
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Mitsubishi UFJ Financial Group, Inc. 2.0
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Telefonaktiebolaget LM Ericsson, B Shares 2.0
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Technip SA 2.0
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Empresa Brasileira de Aeronautica SA, Preference 1.8
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Continental AG 1.8
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Anglo Irish Bank Corp. 1.7
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Royal Bank of Scotland Group plc (The) 1.6
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Collins Stewart Tullett plc 1.6
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ABB Ltd. 1.6
Portfolio holdings and allocations are subject to change. Percentages are as of
November 30, 2005, and are based on net assets. For more current Fund holdings,
please visit www.oppenheimerfunds.com.
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8 | OPPENHEIMER INTERNATIONAL GROWTH FUND
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REGIONAL ALLOCATION
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Europe 59.2%
Asia 30.8
Latin America 4.2
United States/Canada 3.3
Middle East/Africa 2.5
Portfolio holdings and allocations are subject to change. Percentages are as of
November 30, 2005, and are based on the total market value of investments.
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9 | OPPENHEIMER INTERNATIONAL GROWTH FUND
FUND PERFORMANCE DISCUSSION
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HOW HAS THE FUND PERFORMED? BELOW IS A DISCUSSION BY OPPENHEIMERFUNDS, INC., OF
THE FUND'S PERFORMANCE DURING ITS FISCAL YEAR ENDED NOVEMBER 30, 2005, FOLLOWED
BY A GRAPHICAL COMPARISON OF THE FUND'S PERFORMANCE TO AN APPROPRIATE
BROAD-BASED MARKET INDEX.
MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE. For the 12-month reporting period
ended November 30, 2005, Oppenheimer International Growth Fund produced higher
returns than its benchmark, the Morgan Stanley Capital International Europe
Australasia and Far East (MSCI EAFE) Index. In addition, the Fund produced
higher returns than the Lipper International Multi-Cap Growth category average
over the reporting period.
The Fund enjoyed especially strong results among investments related to
our mass affluence theme, particularly in the emerging markets. In Korea,
shipbuilder Hyundai Heavy Industries Co. Ltd. ranked among the Fund's top
individual performers. Hyundai Heavy Industries benefited from higher shipping
rates and rising demand for new ships. Brazil's Companhia Vale do Rio Doce,
Sponsored ADR, one of the world's leading producers of iron ore, and U.K.-based
miner Rio Tinto plc, prospered amid rising demand from China for industrial
commodities.
In the financials sector, the Fund's longstanding position in London-based
financial services group, Collins Stewart Tullett plc, saw its stock price surge
amid speculation that the company might be an acquisition target. In addition,
the company achieved favorable fundamental results in a growing global economy,
with recent acquisitions proving to be accretive to earnings. In Japan, the Fund
received a strong contribution to performance from Mitsubishi UFJ Financial
Group, Inc., a major bank that benefited from recent improvements to Japan's
banking system. Finally, related to our aging theme, the Fund's investment in
U.K. technology development company BTG plc gained value when one of the many
inventions in its portfolio, a new treatment for varicose veins, moved closer to
commercialization.
As is to be expected of a broadly diversified portfolio, some of the
Fund's holdings generated disappointing results, many of which represented our
new technologies theme. Despite progress in clinical trials for its anti-cancer
drugs, the stocks of biotechnology firm Novogen Ltd. and its subsidiary Marshall
Edwards were hurt by aggressive short-term trading on the Australia stock
exchange. Similarly, investors with a shorter-term perspective may have
overreacted to lower-than-expected quarterly financial results from Norway's
Tandberg ASA, a leading provider of video conferencing software. While Denmark
based NeuroSearch AS, a drug development company, disappointed investors when it
withdrew a key new product from testing, we continue to like its potential over
the long term.
As of the end of the reporting period, the Fund remained fully invested in
approximately 140 stocks, which we believe reflects an ample supply of companies
meeting our
10 | OPPENHEIMER INTERNATIONAL GROWTH FUND
growth-oriented criteria. We recently have found a number of such opportunities
in Japan, where valuations appear to be attractive.
COMPARING THE FUND'S PERFORMANCE TO THE MARKET. The graphs that follow show the
performance of a hypothetical $10,000 investment in each class of shares of the
Fund held until November 30, 2005. Performance is measured from the inception of
Classes A, B and C on March 25, 1996. In the case of Class N shares, performance
is measured from inception of the Class on March 1, 2001. In the case of Class Y
shares, performance is measured from inception of the Class on September 7,
2005. The Fund's performance reflects the deduction of the maximum initial sales
charge on Class A shares, the applicable contingent deferred sales charge on
Class B, Class C, and Class N shares, and reinvestments of all dividends and
capital gains distributions. Past performance cannot guarantee future results.
The Fund's performance is compared to the performance of the Morgan
Stanley Capital International (MSCI) EAFE(R) Index (Europe, Australasia, Far
East), which is a free float-adjusted market capitalization index that is
designed to measure developed market equity performance, excluding the U.S. and
Canada. Index performance reflects the reinvestment of income but does not
consider the effect of transaction costs, and none of the data in the graphs
shows the effect of taxes. The Fund's performance reflects the effects of the
Fund's business and operating expenses. While index comparisons may be useful to
provide a benchmark for the Fund's performance, it must be noted that the Fund's
investments are not limited to the investments in the index.
11 | OPPENHEIMER INTERNATIONAL GROWTH FUND
FUND PERFORMANCE DISCUSSION
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CLASS A SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer International Growth Fund (Class A)
MSCI EAFE Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer International MSCI EAFE
Growth Fund (Class A) Index
03/25/1996 9,425 10,000
05/31/1996 9,849 10,106
08/31/1996 10,085 9,895
11/30/1996 11,065 10,462
02/28/1997 12,026 10,136
05/31/1997 13,082 10,900
08/31/1997 13,261 10,821
11/30/1997 13,544 10,449
02/28/1998 14,375 11,737
05/31/1998 16,634 12,143
08/31/1998 14,040 10,836
11/30/1998 14,461 12,202
02/28/1999 14,467 12,353
05/31/1999 14,935 12,709
08/31/1999 16,136 13,656
11/30/1999 19,567 14,816
02/29/2000 28,739 15,536
05/31/2000 22,865 14,924
08/31/2000 25,519 14,996
11/30/2000 20,335 13,415
02/28/2001 20,242 12,848
05/31/2001 19,951 12,396
08/31/2001 16,993 11,385
11/30/2001 16,151 10,884
02/28/2002 15,808 10,441
05/31/2002 16,425 11,241
08/31/2002 13,350 9,713
11/30/2002 12,592 9,555
02/28/2003 10,621 8,647
05/31/2003 12,776 9,899
08/31/2003 14,865 10,643
11/30/2003 17,195 11,919
02/29/2004 18,931 13,337
05/31/2004 18,188 13,165
08/31/2004 17,557 13,101
11/30/2004 20,149 14,858
02/28/2005 21,557 15,889
05/31/2005 20,554 15,172
08/31/2005 22,494 16,257
11/30/2005 23,073 16,897
AVERAGE ANNUAL TOTAL RETURNS OF CLASS A SHARES WITH SALES CHARGE OF THE FUND AT
11/30/05
1-Year 7.93% 5-Year 1.35% Since Inception (3/25/96) 9.02%
12 | OPPENHEIMER INTERNATIONAL GROWTH FUND
CLASS B SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer International Growth Fund (Class B)
MSCI EAFE Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer International MSCI EAFE
Growth Fund (Class B) Index
03/25/1996 10,000 10,000
05/31/1996 10,420 10,106
08/31/1996 10,640 9,895
11/30/1996 11,650 10,462
02/28/1997 12,630 10,136
05/31/1997 13,720 10,900
08/31/1997 13,890 10,821
11/30/1997 14,150 10,449
02/28/1998 14,992 11,737
05/31/1998 17,318 12,143
08/31/1998 14,586 10,836
11/30/1998 14,992 12,202
02/28/1999 14,982 12,353
05/31/1999 15,433 12,709
08/31/1999 16,636 13,656
11/30/1999 20,137 14,816
02/29/2000 29,521 15,536
05/31/2000 23,443 14,924
08/31/2000 26,113 14,996
11/30/2000 20,773 13,415
02/28/2001 20,630 12,848
05/31/2001 20,299 12,396
08/31/2001 17,252 11,385
11/30/2001 16,362 10,884
02/28/2002 15,986 10,441
05/31/2002 16,617 11,241
08/31/2002 13,506 9,713
11/30/2002 12,739 9,555
02/28/2003 10,745 8,647
05/31/2003 12,925 9,899
08/31/2003 15,039 10,643
11/30/2003 17,396 11,919
02/29/2004 19,152 13,337
05/31/2004 18,401 13,165
08/31/2004 17,763 13,101
11/30/2004 20,385 14,858
02/28/2005 21,810 15,889
05/31/2005 20,795 15,172
08/31/2005 22,757 16,257
11/30/2005 23,343 16,897
AVERAGE ANNUAL TOTAL RETURNS OF CLASS B SHARES WITH SALES CHARGE OF THE FUND AT
11/30/05
1-Year 8.62% 5-Year 1.38% Since Inception (3/25/96) 9.15%
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH DOES NOT
GUARANTEE FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT
PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE QUOTED. FOR PERFORMANCE
DATA CURRENT TO THE MOST RECENT MONTH END, VISIT US AT WWW.OPPENHEIMERFUNDS.COM,
OR CALL US AT 1.800.525.7048. FUND RETURNS INCLUDE CHANGES IN SHARE PRICE,
REINVESTED DISTRIBUTIONS, AND THE APPLICABLE SALES CHARGE: FOR CLASS A SHARES,
THE CURRENT MAXIMUM INITIAL SALES CHARGE OF 5.75%; FOR CLASS B SHARES, THE
CONTINGENT DEFERRED SALES CHARGE OF 5% (1-YEAR) AND 2% (5-YEAR); AND FOR CLASS C
AND N SHARES, THE CONTINGENT 1% DEFERRED SALES CHARGE FOR THE 1-YEAR PERIOD.
THERE IS NO SALES CHARGE FOR CLASS Y SHARES. BECAUSE CLASS B SHARES CONVERT TO
CLASS A SHARES 72 MONTHS AFTER PURCHASE, THE SINCE-INCEPTION RETURN FOR CLASS B
USES CLASS A PERFORMANCE FOR THE PERIOD AFTER CONVERSION. SEE PAGE 17 FOR
FURTHER INFORMATION.
13 | OPPENHEIMER INTERNATIONAL GROWTH FUND
FUND PERFORMANCE DISCUSSION
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CLASS C SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer International Growth Fund (Class C)
MSCI EAFE Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer International MSCI EAFE
Growth Fund (Class C) Index
03/25/1996 10,000 10,000
05/31/1996 10,420 10,106
08/31/1996 10,650 9,895
11/30/1996 11,660 10,462
02/28/1997 12,650 10,136
05/31/1997 13,730 10,900
08/31/1997 13,900 10,821
11/30/1997 14,170 10,449
02/28/1998 15,012 11,737
05/31/1998 17,338 12,143
08/31/1998 14,606 10,836
11/30/1998 15,012 12,202
02/28/1999 15,003 12,353
05/31/1999 15,454 12,709
08/31/1999 16,657 13,656
11/30/1999 20,158 14,816
02/29/2000 29,563 15,536
05/31/2000 23,475 14,924
08/31/2000 26,145 14,996
11/30/2000 20,794 13,415
02/28/2001 20,662 12,848
05/31/2001 20,331 12,396
08/31/2001 17,273 11,385
11/30/2001 16,395 10,884
02/28/2002 16,018 10,441
05/31/2002 16,600 11,241
08/31/2002 13,474 9,713
11/30/2002 12,687 9,555
02/28/2003 10,669 8,647
05/31/2003 12,821 9,899
08/31/2003 14,893 10,643
11/30/2003 17,183 11,919
02/29/2004 18,883 13,337
05/31/2004 18,110 13,165
08/31/2004 17,453 13,101
11/30/2004 19,990 14,858
02/28/2005 21,350 15,889
05/31/2005 20,312 15,172
08/31/2005 22,191 16,257
11/30/2005 22,722 16,897
AVERAGE ANNUAL TOTAL RETURNS OF CLASS C SHARES WITH SALES CHARGE OF THE FUND AT
11/30/05
1-Year 12.67% 5-Year 1.79% Since Inception (3/25/96) 8.85%
14 | OPPENHEIMER INTERNATIONAL GROWTH FUND
CLASS N SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer International Growth Fund (Class N)
MSCI EAFE Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer International MSCI EAFE
Growth Fund (Class N) Index
03/01/2001 10,000 10,000
05/31/2001 9,856 9,648
08/31/2001 8,388 8,861
11/30/2001 7,967 8,471
02/28/2002 7,794 8,126
05/31/2002 8,090 8,749
08/31/2002 6,576 7,560
11/30/2002 6,200 7,437
02/28/2003 5,219 6,730
05/31/2003 6,280 7,704
08/31/2003 7,302 8,284
11/30/2003 8,433 9,277
02/29/2004 9,284 10,380
05/31/2004 8,915 10,247
08/31/2004 8,602 10,197
11/30/2004 9,861 11,564
02/28/2005 10,548 12,366
05/31/2005 10,046 11,809
08/31/2005 10,990 12,653
11/30/2005 11,260 13,151
AVERAGE ANNUAL TOTAL RETURNS OF CLASS N SHARES WITH SALES CHARGE OF THE FUND AT
11/30/05
1-Year 13.19% 5-Year N/A Since Inception (3/1/01) 2.53%
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH DOES NOT
GUARANTEE FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT
PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE QUOTED. FOR PERFORMANCE
DATA CURRENT TO THE MOST RECENT MONTH END, VISIT US AT WWW.OPPENHEIMERFUNDS.COM,
OR CALL US AT 1.800.525.7048. FUND RETURNS INCLUDE CHANGES IN SHARE PRICE,
REINVESTED DISTRIBUTIONS, AND THE APPLICABLE SALES CHARGE: FOR CLASS A SHARES,
THE CURRENT MAXIMUM INITIAL SALES CHARGE OF 5.75%; FOR CLASS B SHARES, THE
CONTINGENT DEFERRED SALES CHARGE OF 5% (1-YEAR) AND 2% (5-YEAR); AND FOR CLASS C
AND N SHARES, THE CONTINGENT 1% DEFERRED SALES CHARGE FOR THE 1-YEAR PERIOD.
THERE IS NO SALES CHARGE FOR CLASS Y SHARES. BECAUSE CLASS B SHARES CONVERT TO
CLASS A SHARES 72 MONTHS AFTER PURCHASE, THE SINCE-INCEPTION RETURN FOR CLASS B
USES CLASS A PERFORMANCE FOR THE PERIOD AFTER CONVERSION. SEE PAGE 17 FOR
FURTHER INFORMATION.
15 | OPPENHEIMER INTERNATIONAL GROWTH FUND
FUND PERFORMANCE DISCUSSION
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CLASS Y SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer International Growth Fund (Class Y)
MSCI EAFE Index
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
Oppenheimer International MSCI EAFE
Date Growth Fund (Class Y) Index
09/07/2005 10,000 10,000
11/30/2005 10,014 10,394
AVERAGE ANNUAL TOTAL RETURNS OF CLASS Y SHARES OF THE FUND AT 11/30/05
1-Year N/A 5-Year N/A Since Inception (9/7/05) 0.15%
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH DOES NOT
GUARANTEE FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT
PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE QUOTED. FOR PERFORMANCE
DATA CURRENT TO THE MOST RECENT MONTH END, VISIT US AT WWW.OPPENHEIMERFUNDS.COM,
OR CALL US AT 1.800.525.7048. FUND RETURNS INCLUDE CHANGES IN SHARE PRICE,
REINVESTED DISTRIBUTIONS, AND THE APPLICABLE SALES CHARGE: FOR CLASS A SHARES,
THE CURRENT MAXIMUM INITIAL SALES CHARGE OF 5.75%; FOR CLASS B SHARES, THE
CONTINGENT DEFERRED SALES CHARGE OF 5% (1-YEAR) AND 2% (5-YEAR); AND FOR CLASS C
AND N SHARES, THE CONTINGENT 1% DEFERRED SALES CHARGE FOR THE 1-YEAR PERIOD.
THERE IS NO SALES CHARGE FOR CLASS Y SHARES. BECAUSE CLASS B SHARES CONVERT TO
CLASS A SHARES 72 MONTHS AFTER PURCHASE, THE SINCE-INCEPTION RETURN FOR CLASS B
USES CLASS A PERFORMANCE FOR THE PERIOD AFTER CONVERSION. SEE PAGE 17 FOR
FURTHER INFORMATION.
16 | OPPENHEIMER INTERNATIONAL GROWTH FUND
NOTES
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Total returns and the ending account values in the graphs include changes in
share price and reinvestment of dividends and capital gains distributions in a
hypothetical investment for the periods shown. The Fund's total returns shown do
not reflect the deduction of income taxes on an individual's investment. Taxes
may reduce your actual investment returns on income or gains paid by the Fund or
any gains you may realize if you sell your shares.
Investors should consider the Fund's investment objectives, risks, and other
charges and expenses carefully before investing. The Fund's prospectus contains
this and other information about the Fund, and may be obtained by asking your
financial advisor, calling us at 1.800.525.7048 or visiting our website at
www.oppenheimerfunds.com. Read the prospectus carefully before investing.
The Fund's investment strategy and focus can change over time. The mention of
specific fund holdings does not constitute a recommendation by OppenheimerFunds,
Inc.
CLASS A shares of the Fund were first publicly offered on 3/25/96. Unless
otherwise noted, Class A returns include the maximum initial sales charge of
5.75%.
CLASS B shares of the Fund were first publicly offered on 3/25/96. Unless
otherwise noted, Class B returns include the applicable contingent deferred
sales charge of 5% (1-year) and 2% (5-year). Because Class B shares convert to
Class A shares 72 months after purchase, the "since inception" return for Class
B uses Class A performance for the period after conversion. Class B shares are
subject to an annual 0.75% asset-based sales charge.
CLASS C shares of the Fund were first publicly offered on 3/25/96. Unless
otherwise noted, Class C returns include the contingent deferred sales charge of
1% for the 1-year period. Class C shares are subject to an annual 0.75%
asset-based sales charge.
17 | OPPENHEIMER INTERNATIONAL GROWTH FUND
NOTES
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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.
CLASS Y shares of the Fund were first publicly offered on 9/7/05. Class Y shares
are offered only to certain institutional investors under special agreements
with the Distributor.
An explanation of the calculation of performance is in the Fund's Statement of
Additional Information.
18 | OPPENHEIMER INTERNATIONAL GROWTH FUND
FUND EXPENSES
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FUND EXPENSES. As a shareholder of the Fund, you incur two types of costs: (1)
transaction costs, which may include sales charges (loads) on purchase payments,
contingent deferred sales charges on redemptions; and redemption fees, if any;
and (2) ongoing costs, including management fees; distribution and service fees;
and other Fund expenses. These examples are intended to help you understand your
ongoing costs (in dollars) of investing in the Fund and to compare these costs
with the ongoing costs of investing in other mutual funds.
The examples are based on an investment of $1,000.00 invested at the beginning
of the period and held for the entire 6-month period ended November 30, 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
19 | OPPENHEIMER INTERNATIONAL GROWTH FUND
FUND EXPENSES
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exceptions described in the Statement of Additional Information). Therefore, the
"hypothetical" lines of the table are useful in comparing ongoing costs only,
and will not help you determine the relative total costs of owning different
funds. In addition, if these transactional costs were included, your costs would
have been higher.
20 | OPPENHEIMER INTERNATIONAL GROWTH FUND
FUND EXPENSES Continued
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- --------------------------------------------------------------------------------
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT PAID DURING
VALUE VALUE 6 MONTHS ENDED
(6/1/05) (11/30/05) NOVEMBER 30, 2005 1,2
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Class A Actual $1,000.00 $1,122.60 $ 7.42
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Class A Hypothetical 1,000.00 1,018.10 7.06
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Class B Actual 1,000.00 1,118.10 11.69
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Class B Hypothetical 1,000.00 1,014.09 11.12
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Class C Actual 1,000.00 1,118.60 11.37
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Class C Hypothetical 1,000.00 1,014.39 10.81
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Class N Actual 1,000.00 1,120.90 8.91
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Class N Hypothetical 1,000.00 1,016.70 8.48
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT PAID DURING
VALUE VALUE THE PERIOD ENDED
(9/7/05) (11/30/05) NOVEMBER 30, 2005 2,3
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Class Y Actual $1,000.00 $1,001.50 $1.98
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Class Y Hypothetical 1,000.00 1,020.81 4.32
Hypothetical assumes 5% annual return before expenses.
1. Actual expenses paid for Classes A, B, C and N are equal to the Fund's
annualized expense ratio for that class, multiplied by the average account value
over the period, multiplied by 183/365 (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 183/365 (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 85/365 [to reflect the period from September 7, 2005 (inception of
offering) to November 30, 2005].
Those annualized expense ratios based on the 6-month period ended November 30,
2005 for Classes A, B, C and N, and for the period from September 7, 2005
(inception of offering) to November 30, 2005 for Class Y are as follows:
CLASS EXPENSE RATIOS
- ---------------------------
Class A 1.39%
- ---------------------------
Class B 2.19
- ---------------------------
Class C 2.13
- ---------------------------
Class N 1.67
- ---------------------------
Class Y 0.85
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.
- --------------------------------------------------------------------------------
21 | OPPENHEIMER INTERNATIONAL GROWTH FUND
STATEMENT OF INVESTMENTS November 30, 2005
- --------------------------------------------------------------------------------
VALUE
SHARES SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS--97.3%
- ------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY--18.5%
- ------------------------------------------------------------------------------------------------------------------------------------
AUTO COMPONENTS--1.8%
Continental AG 240,906 $ 20,427,220
- ------------------------------------------------------------------------------------------------------------------------------------
AUTOMOBILES--2.6%
Bayerische Motoren Werke AG 129,131 5,684,821
- ------------------------------------------------------------------------------------------------------------------------------------
Honda Motor Co. 98,992 5,535,509
- ------------------------------------------------------------------------------------------------------------------------------------
Porsche AG, Preference 7,899 5,903,156
- ------------------------------------------------------------------------------------------------------------------------------------
Toyota Motor Corp. 263,465 12,732,346
------------------
29,855,832
- ------------------------------------------------------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE--1.3%
Carnival Corp. 159,660 8,699,873
- ------------------------------------------------------------------------------------------------------------------------------------
William Hill plc 735,378 6,435,612
------------------
15,135,485
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSEHOLD DURABLES--2.4%
Daito Trust Construction Co. Ltd. 155,687 7,601,777
- ------------------------------------------------------------------------------------------------------------------------------------
Groupe SEB SA 57,321 6,078,927
- ------------------------------------------------------------------------------------------------------------------------------------
Koninklijke (Royal) Philips Electronics NV 210,210 5,844,627
- ------------------------------------------------------------------------------------------------------------------------------------
Sony Corp. 221,445 8,224,942
------------------
27,750,273
- ------------------------------------------------------------------------------------------------------------------------------------
INTERNET & CATALOG RETAIL--1.9%
GS Home Shopping, Inc. 104,845 11,167,325
- ------------------------------------------------------------------------------------------------------------------------------------
GUS plc 338,456 5,222,469
- ------------------------------------------------------------------------------------------------------------------------------------
Next plc 227,278 5,406,917
------------------
21,796,711
- ------------------------------------------------------------------------------------------------------------------------------------
MEDIA--4.0%
British Sky Broadcasting Group plc 195,865 1,662,993
- ------------------------------------------------------------------------------------------------------------------------------------
Gestevision Telecinco SA 121,670 2,908,061
- ------------------------------------------------------------------------------------------------------------------------------------
Grupo Televisa SA, Sponsored GDR 134,635 10,690,019
- ------------------------------------------------------------------------------------------------------------------------------------
Mediaset SpA 621,925 6,551,557
VALUE
SHARES SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------------
MEDIA Continued
News Corp., Inc., Cl. B 147,039 $ 2,303,497
- ------------------------------------------------------------------------------------------------------------------------------------
Publishing & Broadcasting Ltd. 247,813 3,019,112
- ------------------------------------------------------------------------------------------------------------------------------------
Societe Television Francaise 1 165,286 4,135,646
- ------------------------------------------------------------------------------------------------------------------------------------
Sogecable SA 1 61,460 2,451,391
- ------------------------------------------------------------------------------------------------------------------------------------
Vivendi Universal SA 226,127 6,523,695
- ------------------------------------------------------------------------------------------------------------------------------------
Zee Telefilms Ltd. 1,633,600 5,508,817
------------------
45,754,788
- ------------------------------------------------------------------------------------------------------------------------------------
SPECIALTY RETAIL--1.8%
DSG International plc 421,864 1,111,119
- ------------------------------------------------------------------------------------------------------------------------------------
Hennes & Mauritz AB, B Shares 484,585 15,182,569
- ------------------------------------------------------------------------------------------------------------------------------------
Industria de Diseno Textil SA 139,940 4,116,465
------------------
20,410,153
- ------------------------------------------------------------------------------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS--2.7%
Compagnie Financiere Richemont AG, A Shares 167,933 6,612,935
- ------------------------------------------------------------------------------------------------------------------------------------
Luxottica Group SpA 548,350 13,496,729
- ------------------------------------------------------------------------------------------------------------------------------------
Puma AG 31,734 8,573,470
- ------------------------------------------------------------------------------------------------------------------------------------
Swatch Group AG (The), Cl. B 20,340 2,922,362
------------------
31,605,496
- ------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES--4.2%
- ------------------------------------------------------------------------------------------------------------------------------------
BEVERAGES--1.7%
Foster's Group Ltd. 646,615 2,699,305
- ------------------------------------------------------------------------------------------------------------------------------------
Heineken NV 168,195 5,143,773
- ------------------------------------------------------------------------------------------------------------------------------------
Pernod-Ricard SA 72,312 11,841,987
------------------
19,685,065
- ------------------------------------------------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING--0.6%
Carrefour SA 39,990 1,731,399
- ------------------------------------------------------------------------------------------------------------------------------------
William Morrison Supermarkets plc 684,436 2,094,306
- ------------------------------------------------------------------------------------------------------------------------------------
Woolworths Ltd. 255,500 3,211,094
------------------
7,036,799
22 | OPPENHEIMER INTERNATIONAL GROWTH FUND
VALUE
SHARES SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------------
FOOD PRODUCTS--1.2%
Cadbury Schweppes plc 586,869 $ 5,637,799
- ------------------------------------------------------------------------------------------------------------------------------------
Koninklijke Numico NV 1 51,074 2,098,467
- ------------------------------------------------------------------------------------------------------------------------------------
Nestle SA 20,958 6,173,835
------------------
13,910,101
- ------------------------------------------------------------------------------------------------------------------------------------
PERSONAL PRODUCTS--0.7%
L'Oreal SA 112,703 8,112,783
- ------------------------------------------------------------------------------------------------------------------------------------
ENERGY--5.8%
- ------------------------------------------------------------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES--2.0%
Technip SA 401,162 22,677,690
- ------------------------------------------------------------------------------------------------------------------------------------
OIL & GAS--3.8%
BG Group plc 864,667 8,034,898
- ------------------------------------------------------------------------------------------------------------------------------------
BP plc, ADR 196,295 12,924,063
- ------------------------------------------------------------------------------------------------------------------------------------
Neste Oil Oyj 1 96,100 2,815,540
- ------------------------------------------------------------------------------------------------------------------------------------
Total SA, B Shares 70,511 17,657,262
- ------------------------------------------------------------------------------------------------------------------------------------
Tsakos Energy Navigation Ltd. 75,175 2,827,332
------------------
44,259,095
- ------------------------------------------------------------------------------------------------------------------------------------
FINANCIALS--18.8%
- ------------------------------------------------------------------------------------------------------------------------------------
CAPITAL MARKETS--2.5%
3i Group plc 764,220 11,168,361
- ------------------------------------------------------------------------------------------------------------------------------------
Credit Suisse Group 179,103 8,682,744
- ------------------------------------------------------------------------------------------------------------------------------------
UBS AG 95,828 8,792,810
------------------
28,643,915
- ------------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL BANKS--9.8%
Anglo Irish Bank Corp. 1,426,415 19,612,562
- ------------------------------------------------------------------------------------------------------------------------------------
Commerzbank AG 224,446 6,596,421
- ------------------------------------------------------------------------------------------------------------------------------------
ICICI Bank Ltd., Sponsored ADR 486,390 12,388,353
- ------------------------------------------------------------------------------------------------------------------------------------
Joyo Bank Ltd. (The) 1,576,600 8,907,833
- ------------------------------------------------------------------------------------------------------------------------------------
Mitsubishi UFJ Financial Group, Inc. 1,868 23,542,943
- ------------------------------------------------------------------------------------------------------------------------------------
National Australia Bank Ltd. 134,437 3,211,575
VALUE
SHARES SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL BANKS Continued
Royal Bank of Scotland Group plc (The) 639,883 $ 18,181,425
- ------------------------------------------------------------------------------------------------------------------------------------
Societe Generale, Cl. A 96,336 11,419,036
- ------------------------------------------------------------------------------------------------------------------------------------
UniCredito Italiano SpA 980,585 6,056,685
- ------------------------------------------------------------------------------------------------------------------------------------
UniCredito Italiano SpA 527,695 3,264,450
------------------
113,181,283
- ------------------------------------------------------------------------------------------------------------------------------------
CONSUMER FINANCE--0.5%
Mediobanca SpA 327,130 5,769,842
- ------------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES--1.8%
Collins Stewart Tullett plc 1,795,892 17,886,103
- ------------------------------------------------------------------------------------------------------------------------------------
MLP AG 135,215 2,646,336
------------------
20,532,439
- ------------------------------------------------------------------------------------------------------------------------------------
INSURANCE--1.6%
Allianz AG 63,778 9,278,933
- ------------------------------------------------------------------------------------------------------------------------------------
AMP Ltd. 1,598,583 9,070,206
------------------
18,349,139
- ------------------------------------------------------------------------------------------------------------------------------------
REAL ESTATE--2.0%
Solidere, GDR 1 74,732 1,023,828
- ------------------------------------------------------------------------------------------------------------------------------------
Solidere, GDR 1,2 785,925 10,767,173
- ------------------------------------------------------------------------------------------------------------------------------------
Sumitomo Realty & Development Co. Ltd. 714,700 11,850,392
------------------
23,641,393
- ------------------------------------------------------------------------------------------------------------------------------------
THRIFTS & MORTGAGE FINANCE--0.6%
Housing Development Finance Corp. Ltd. 260,300 6,398,025
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE--12.5%
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES--3.4%
Art Advanced Research Technologies, Inc. 1,3,4 1,901,125 896,257
23 | OPPENHEIMER INTERNATIONAL GROWTH FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
VALUE
SHARES SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES Continued
Art Advanced Research Technologies, Inc. 1,3 389,400 $ 183,577
- ------------------------------------------------------------------------------------------------------------------------------------
Essilor International SA 112,553 9,321,520
- ------------------------------------------------------------------------------------------------------------------------------------
Ortivus AB, Cl. B 1,3 710,800 3,080,848
- ------------------------------------------------------------------------------------------------------------------------------------
Synthes, Inc. 54,061 5,793,449
- ------------------------------------------------------------------------------------------------------------------------------------
Terumo Corp. 278,380 7,714,061
- ------------------------------------------------------------------------------------------------------------------------------------
William Demant Holding AS 1 233,955 12,360,459
------------------
39,350,171
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES--0.5%
Nicox SA 1 1,307,551 5,534,330
- ------------------------------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS--8.6%
Astellas Pharma, Inc. 106,605 4,105,573
- ------------------------------------------------------------------------------------------------------------------------------------
AstraZeneca plc 40,741 1,872,829
- ------------------------------------------------------------------------------------------------------------------------------------
GlaxoSmithKline plc 137,183 3,390,134
- ------------------------------------------------------------------------------------------------------------------------------------
H. Lundbeck AS 95,295 1,967,145
- ------------------------------------------------------------------------------------------------------------------------------------
Marshall Edwards,Inc. 1,4 1,717,263 12,472,987
- ------------------------------------------------------------------------------------------------------------------------------------
NeuroSearch AS 1 223,925 6,198,640
- ------------------------------------------------------------------------------------------------------------------------------------
Novogen Ltd. 1,3 6,204,740 25,726,586
- ------------------------------------------------------------------------------------------------------------------------------------
Oxagen Ltd. 1,4 214,287 16,220
- ------------------------------------------------------------------------------------------------------------------------------------
Roche Holdings AG 50,829 7,606,223
- ------------------------------------------------------------------------------------------------------------------------------------
Sanofi-Aventis SA 210,617 16,943,694
- ------------------------------------------------------------------------------------------------------------------------------------
Schering AG 34,722 2,249,901
- ------------------------------------------------------------------------------------------------------------------------------------
Shionogi & Co. Ltd. 194,200 2,385,964
- ------------------------------------------------------------------------------------------------------------------------------------
SkyePharma plc 1 3,946,118 3,366,870
- ------------------------------------------------------------------------------------------------------------------------------------
Takeda Pharmaceutical Co. Ltd. 149,750 8,190,314
- ------------------------------------------------------------------------------------------------------------------------------------
Teva Pharmaceutical Industries Ltd., Sponsored ADR 68,670 2,807,230
------------------
99,300,310
VALUE
SHARES SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS--12.3%
- ------------------------------------------------------------------------------------------------------------------------------------
AEROSPACE & DEFENSE--1.8%
Empresa Brasileira de Aeronautica SA, Preference 2,196,446 $ 20,833,093
- ------------------------------------------------------------------------------------------------------------------------------------
AIRLINES--0.9%
easyJet plc 1 1,794,656 10,195,449
- ------------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES--2.5%
BTG plc 1 2,130,181 8,178,127
- ------------------------------------------------------------------------------------------------------------------------------------
Capita Group plc 1,653,048 11,166,792
- ------------------------------------------------------------------------------------------------------------------------------------
Prosegur Compania de Seguridad SA 275,324 6,677,138
- ------------------------------------------------------------------------------------------------------------------------------------
Randstad Holding NV 71,453 2,954,393
------------------
28,976,450
- ------------------------------------------------------------------------------------------------------------------------------------
CONSTRUCTION & ENGINEERING--1.2%
Koninklijke Boskalis Westminster NV 68,926 3,969,718
- ------------------------------------------------------------------------------------------------------------------------------------
Leighton Holdings Ltd. 379,944 4,553,321
- ------------------------------------------------------------------------------------------------------------------------------------
Vinci SA 64,024 5,074,693
------------------
13,597,732
- ------------------------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--2.3%
ABB Ltd. 1 2,032,123 17,846,649
- ------------------------------------------------------------------------------------------------------------------------------------
Ushio, Inc. 369,350 8,217,448
------------------
26,064,097
- ------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES--2.4%
Aalberts Industries NV 349,130 17,473,377
- ------------------------------------------------------------------------------------------------------------------------------------
Siemens AG 128,154 9,682,855
------------------
27,156,232
- ------------------------------------------------------------------------------------------------------------------------------------
MACHINERY--0.6%
Hyundai Heavy Industries Co. Ltd. 92,155 6,484,159
- ------------------------------------------------------------------------------------------------------------------------------------
TRADING COMPANIES & DISTRIBUTORS--0.6%
Bunzl plc 737,900 7,535,476
24 | OPPENHEIMER INTERNATIONAL GROWTH FUND
VALUE
SHARES SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------------
INFORMATION TECHNOLOGY--16.5%
- ------------------------------------------------------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT--2.5%
Nokia Oyj 324,025 $ 5,539,346
- ------------------------------------------------------------------------------------------------------------------------------------
Telefonaktiebolaget LM Ericsson, B Shares 7,209,130 23,458,860
------------------
28,998,206
- ------------------------------------------------------------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS--1.5%
Benq Corp. 9,905,000 8,905,519
- ------------------------------------------------------------------------------------------------------------------------------------
Logitech International SA 1 196,132 8,977,794
------------------
17,883,313
- ------------------------------------------------------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS--6.4%
Electrocomponents plc 260,741 1,151,873
- ------------------------------------------------------------------------------------------------------------------------------------
Hoya Corp. 294,975 10,623,739
- ------------------------------------------------------------------------------------------------------------------------------------
Keyence Corp. 37,340 9,462,459
- ------------------------------------------------------------------------------------------------------------------------------------
NEOMAX Co. Ltd. 349,557 10,232,458
- ------------------------------------------------------------------------------------------------------------------------------------
Nidec Corp. 166,985 11,903,807
- ------------------------------------------------------------------------------------------------------------------------------------
Nippon Electric Glass Co. Ltd. 667,650 13,464,750
- ------------------------------------------------------------------------------------------------------------------------------------
Omron Corp. 219,518 5,001,954
- ------------------------------------------------------------------------------------------------------------------------------------
Tandberg ASA 1,301,405 11,427,433
------------------
73,268,473
- ------------------------------------------------------------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES--0.4%
Yahoo Japan Corp. 3,527 4,268,550
- ------------------------------------------------------------------------------------------------------------------------------------
IT SERVICES--1.3%
Infosys Technologies Ltd. 212,739 12,443,076
- ------------------------------------------------------------------------------------------------------------------------------------
United Internet AG 86,477 3,078,050
------------------
15,521,126
- ------------------------------------------------------------------------------------------------------------------------------------
OFFICE ELECTRONICS--1.2%
Canon, Inc. 237,440 13,352,337
- ------------------------------------------------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT--1.0%
ASM International NV 1 394,795 5,767,955
- ------------------------------------------------------------------------------------------------------------------------------------
Samsung Electronics Co. 9,715 5,599,586
------------------
11,367,541
VALUE
SHARES SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------------
SOFTWARE--2.2%
Autonomy Corp. plc 1 937,009 $ 5,764,651
- ------------------------------------------------------------------------------------------------------------------------------------
Business Objects SA 1 112,092 4,460,317
- ------------------------------------------------------------------------------------------------------------------------------------
Enix Corp. 158,320 4,373,919
- ------------------------------------------------------------------------------------------------------------------------------------
Nintendo Co. Ltd. 70,825 7,779,459
- ------------------------------------------------------------------------------------------------------------------------------------
UbiSoft Entertainment SA 1 55,181 2,520,352
------------------
24,898,698
- ------------------------------------------------------------------------------------------------------------------------------------
MATERIALS--5.4%
- ------------------------------------------------------------------------------------------------------------------------------------
CHEMICALS--1.9%
Filtrona plc 989,442 4,607,838
- ------------------------------------------------------------------------------------------------------------------------------------
Nufarm Ltd. 670,610 5,663,357
- ------------------------------------------------------------------------------------------------------------------------------------
Sika AG 1 9,213 6,970,258
- ------------------------------------------------------------------------------------------------------------------------------------
Syngenta AG 1 48,495 5,331,998
------------------
22,573,451
- ------------------------------------------------------------------------------------------------------------------------------------
METALS & MINING--3.5%
Companhia Vale do Rio Doce, Sponsored ADR 396,900 15,018,696
- ------------------------------------------------------------------------------------------------------------------------------------
Impala Platinum Holdings Ltd. 112,515 14,729,236
- ------------------------------------------------------------------------------------------------------------------------------------
Rio Tinto plc 249,740 10,146,544
------------------
39,894,476
- ------------------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES--2.7%
- ------------------------------------------------------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES--2.7%
KDDI Corp. 2,150 11,269,510
- ------------------------------------------------------------------------------------------------------------------------------------
SK Telecom Co. Ltd., ADR 121,954 2,576,888
- ------------------------------------------------------------------------------------------------------------------------------------
Vodafone Group plc 7,991,710 17,164,548
------------------
31,010,946
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES--0.6%
- ------------------------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES--0.6%
Fortum Oyj 377,180 6,613,932
------------------
Total Common Stocks
(Cost $789,067,533) 1,119,612,075
25 | OPPENHEIMER INTERNATIONAL GROWTH FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
VALUE
SHARES SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS--0.7%
- ------------------------------------------------------------------------------------------------------------------------------------
Art Advanced Research Technologies, Inc., Preference 1,3 3,096,218 $ 1,459,666
- ------------------------------------------------------------------------------------------------------------------------------------
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 $7,987,691) 8,366,014
UNITS
- ------------------------------------------------------------------------------------------------------------------------------------
RIGHTS, WARRANTS AND CERTIFICATES--0.1%
- ------------------------------------------------------------------------------------------------------------------------------------
Autonomy Corp. plc Rts., Exp. 12/19/05 1 468,504 794,006
- ------------------------------------------------------------------------------------------------------------------------------------
Ceres Group, Inc.:
Series C Wts., Exp. 8/28/06 1,4 20,032 --
Series D Wts., Exp. 12/31/30 1,4 41,800 --
------------------
Total Rights, Warrants and Certificates (Cost $0) 794,006
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------------
JOINT REPURCHASE AGREEMENTS--1.8%
- ------------------------------------------------------------------------------------------------------------------------------------
Undivided interest of 1.61% in joint
repurchase agreement (Principal Amount/
Value $1,261,257,000, with a maturity value
of $1,261,395,388) with UBS Warburg LLC,
3.95%, dated 11/30/05, to be repurchased
at $20,300,227 on 12/1/05, collateralized
by Federal National Mortgage Assn.,
4.50%-6%, 3/1/20-10/1/35, with a value of
$1,193,166,527 and Federal Home Loan
Mortgage Corp., 5.50%, 5/1/35, with a
value of $95,408,663
(Cost $20,298,000) $ 20,298,000 $ 20,298,000
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE
(COST $817,353,224) 99.9% 1,149,070,095
- ------------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 0.1 1,556,193
---------------------------------
NET ASSETS 100.0% $ 1,150,626,288
=================================
26 | OPPENHEIMER INTERNATIONAL GROWTH FUND
FOOTNOTES TO STATEMENT OF INVESTMENTS
1. Non-income producing security.
2. Represents securities sold under Rule 144A, which are exempt from
registration under the Securities Act of 1933, as amended. These securities have
been determined to be liquid under guidelines established by the Board of
Trustees. These securities amount to $10,767,173 or 0.94% of the Fund's net
assets as of November 30, 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 November 30, 2005.
The aggregate fair value of securities of affiliated companies held by the Fund
as of November 30, 2005 amounts to $31,346,934. Transactions during the period
in which the issuer was an affiliate are as follows:
SHARES GROSS GROSS SHARES
NOV. 30, 2004 ADDITIONS REDUCTIONS NOV. 30, 2005
- ----------------------------------------------------------------------------------------------------------------
Art Advanced Research Technologies, Inc. 389,400 -- -- 389,400
Art Advanced Research Technologies, Inc. 1,901,125 -- -- 1,901,125
Art Advanced Research Technologies,
Inc., Preference -- 3,096,218 -- 3,096,218
Novogen Ltd. 6,323,015 -- 118,275 6,204,740
Ortivus AB, Cl. B 710,800 -- -- 710,800
VALUE DIVIDEND REALIZED
SEE NOTE 1 INCOME GAIN
- ----------------------------------------------------------------------------------------------------------------
Art Advanced Research Technologies, Inc. $ 183,577 $ -- $ --
Art Advanced Research Technologies, Inc. 896,257 -- --
Art Advanced Research Technologies,
Inc., Preference 1,459,666 -- --
Novogen Ltd. 25,726,586 -- 91,453
Ortivus AB, Cl. B 3,080,848 -- --
--------------------------------------------------
$ 31,346,934 $ -- $ 91,453
==================================================
4. Illiquid or restricted security. The aggregate value of illiquid or
restricted securities as of November 30, 2005 was $20,291,812, which represents
1.76% of the Fund's net assets, all of which is considered restricted. See Note
6 of Notes to Financial Statements.
27 | OPPENHEIMER INTERNATIONAL GROWTH FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
DISTRIBUTION OF INVESTMENTS REPRESENTING GEOGRAPHIC HOLDINGS, AS A PERCENTAGE OF
TOTAL INVESTMENTS AT VALUE, IS AS FOLLOWS:
GEOGRAPHIC HOLDINGS VALUE PERCENT
- --------------------------------------------------------------------------------
Japan $ 210,742,044 18.3%
United Kingdom 181,117,422 15.8
France 134,033,331 11.7
Switzerland 85,711,057 7.5
Germany 74,121,163 6.5
Australia 71,931,040 6.3
The Netherlands 43,252,310 3.8
Sweden 41,722,277 3.6
India 36,738,271 3.2
United States 35,904,221 3.1
Brazil 35,851,789 3.1
Italy 35,139,263 3.1
Korea, Republic of South 25,827,958 2.2
Denmark 20,526,244 1.8
Ireland 19,612,562 1.7
Spain 16,153,055 1.4
Finland 14,968,818 1.3
South Africa 14,729,236 1.3
Lebanon 11,791,001 1.0
Norway 11,427,433 1.0
Mexico 10,690,019 0.9
Taiwan 8,905,519 0.8
Bermuda 2,827,332 0.2
Israel 2,807,230 0.2
Canada 2,539,500 0.2
--------------------------
Total $ 1,149,070,095 100.0%
==========================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
28 | OPPENHEIMER INTERNATIONAL GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES November 30, 2005
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
ASSETS
- --------------------------------------------------------------------------------
Investments, at value--see accompanying statement of
investments:
Unaffiliated companies (cost $789,356,706) $ 1,117,723,161
Affiliated companies (cost $27,996,518) 31,346,934
-----------------
1,149,070,095
- --------------------------------------------------------------------------------
Cash 2,948,727
- --------------------------------------------------------------------------------
Unrealized appreciation on foreign currency contracts 488
- --------------------------------------------------------------------------------
Receivables and other assets:
Shares of beneficial interest sold 1,705,458
Interest and dividends 1,444,774
Other 29,527
-----------------
Total assets 1,155,199,069
- --------------------------------------------------------------------------------
LIABILITIES
- --------------------------------------------------------------------------------
Payables and other liabilities:
Shares of beneficial interest redeemed 2,444,200
Investments purchased 957,419
Distribution and service plan fees 455,963
Transfer and shareholder servicing agent fees 286,565
Trustees' compensation 187,218
Shareholder communications 92,862
Other 148,554
-----------------
Total liabilities 4,572,781
- --------------------------------------------------------------------------------
NET ASSETS $ 1,150,626,288
=================
- --------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- --------------------------------------------------------------------------------
Paid-in capital $ 1,136,498,210
- --------------------------------------------------------------------------------
Accumulated net investment loss (7,576,528)
- --------------------------------------------------------------------------------
Accumulated net realized loss on investments and foreign
currency transactions (309,992,970)
- --------------------------------------------------------------------------------
Net unrealized appreciation on investments and
translation of assets and liabilities denominated in
foreign currencies 331,697,576
- --------------------------------------------------------------------------------
NET ASSETS $ 1,150,626,288
=================
29 | OPPENHEIMER INTERNATIONAL GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
- --------------------------------------------------------------------------------
Class A Shares:
Net asset value and redemption price per share (based on net assets
of $787,600,197 and 38,047,671 shares of beneficial interest
outstanding) $ 20.70
Maximum offering price per share (net asset value plus sales charge
of 5.75% of offering price) $ 21.96
- --------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net
assets of $160,347,109 and 8,141,581 shares of beneficial
interest outstanding) $ 19.69
- --------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net
assets of $158,968,440 and 8,064,415 shares of beneficial interest
outstanding) $ 19.71
- --------------------------------------------------------------------------------
Class N Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net
assets of $36,979,571 and 1,812,282 shares of beneficial interest
outstanding) $ 20.40
- --------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share
(based on net assets of $6,730,971 and 324,588 shares of beneficial
interest outstanding) $ 20.74
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
30 | OPPENHEIMER INTERNATIONAL GROWTH FUND
STATEMENT OF OPERATIONS For the Year Ended November 30, 2005
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
INVESTMENT INCOME
- --------------------------------------------------------------------------------
Dividends (net of foreign withholding taxes of $2,230,996) $ 20,448,266
- --------------------------------------------------------------------------------
Interest 120,183
- --------------------------------------------------------------------------------
Other income 40,743
-------------
Total investment income 20,609,192
- --------------------------------------------------------------------------------
EXPENSES
- --------------------------------------------------------------------------------
Management fees 8,127,264
- --------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 1,745,367
Class B 1,627,038
Class C 1,516,403
Class N 166,551
- --------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 2,979,419
Class B 535,242
Class C 438,253
Class N 147,941
Class Y 19
- --------------------------------------------------------------------------------
Shareholder communications:
Class A 112,922
Class B 86,947
Class C 48,413
Class N 5,712
- --------------------------------------------------------------------------------
Custodian fees and expenses 423,791
- --------------------------------------------------------------------------------
Trustees' compensation 32,879
- --------------------------------------------------------------------------------
Other 88,026
-------------
Total expenses 18,082,187
Less reduction to custodian expenses (2,035)
Less waivers and reimbursements of expenses (611,841)
-------------
Net expenses 17,468,311
- --------------------------------------------------------------------------------
NET INVESTMENT INCOME 3,140,881
31 | OPPENHEIMER INTERNATIONAL GROWTH FUND
STATEMENT OF OPERATIONS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
- --------------------------------------------------------------------------------
Net realized gain on:
Investments:
Unaffiliated companies $ 55,008,826
Affiliated companies 91,453
Foreign currency transactions 15,223,734
--------------
Net realized gain 70,324,013
- --------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on:
Investments 168,563,475
Translation of assets and liabilities denominated in foreign
currencies (100,623,003)
--------------
Net change in unrealized appreciation 67,940,472
- --------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 141,405,366
==============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
32 | OPPENHEIMER INTERNATIONAL GROWTH FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
YEAR ENDED NOVEMBER 30, 2005 2004
- --------------------------------------------------------------------------------------------
OPERATIONS
- --------------------------------------------------------------------------------------------
Net investment income (loss) $ 3,140,881 $ (344,925)
- --------------------------------------------------------------------------------------------
Net realized gain 70,324,013 9,116,716
- --------------------------------------------------------------------------------------------
Net change in unrealized appreciation 67,940,472 136,039,808
-----------------------------------
Net increase in net assets resulting from operations 141,405,366 144,811,599
- --------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
- --------------------------------------------------------------------------------------------
Dividends from net investment income:
Class A (4,399,289) (6,767,655)
Class B -- (1,084,899)
Class C -- (837,758)
Class N (132,170) (241,976)
Class Y -- --
- --------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
- --------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from beneficial interest transactions:
Class A 8,999,445 69,139,385
Class B (27,375,157) (32,194,872)
Class C (4,967,085) 9,003,324
Class N 11,561 7,458,197
Class Y 6,636,879 --
- --------------------------------------------------------------------------------------------
NET ASSETS
- --------------------------------------------------------------------------------------------
Total increase 120,179,550 189,285,345
- --------------------------------------------------------------------------------------------
Beginning of period 1,030,446,738 841,161,393
-----------------------------------
End of period (including accumulated net investment
loss of $7,576,528 and $11,837,657, respectively) $ 1,150,626,288 $ 1,030,446,738
===================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
33 | OPPENHEIMER INTERNATIONAL GROWTH FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
CLASS A YEAR ENDED NOVEMBER 30, 2005 2004 2003 2002 2001
- -----------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -----------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 18.19 $ 15.72 $ 11.63 $ 14.96 $ 19.77
- -----------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .10 1 .04 1 .01 .12 .06
Net realized and unrealized gain (loss) 2.53 2.63 4.19 (3.41) (3.93)
---------------------------------------------------------------
Total from investment operations 2.63 2.67 4.20 (3.29) (3.87)
- -----------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.12) (.20) (.11) (.04) --
Distributions from net realized gain -- -- -- -- (.94)
---------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.12) (.20) (.11) (.04) (.94)
- -----------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 20.70 $ 18.19 $ 15.72 $ 11.63 $ 14.96
===============================================================
- -----------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 14.51% 17.18% 36.55% (22.04)% (20.58)%
- -----------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 787,600 $ 686,313 $ 528,363 $ 358,097 $ 535,615
- -----------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 717,536 $ 598,265 $ 390,315 $ 512,319 $ 536,366
- -----------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 0.52% 0.22% 0.18% 0.62% 0.62%
Total expenses 1.49% 1.61% 1.88% 1.64% 1.42%
Expenses after payments and waivers and
reduction to custodian expenses 1.41% 1.43% 1.42% 1.56% 1.42%
- -----------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 26% 37% 61% 46% 33%
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.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
34 | OPPENHEIMER INTERNATIONAL GROWTH FUND
CLASS B YEAR ENDED NOVEMBER 30, 2005 2004 2003 2002 2001
- -----------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -----------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 17.33 $ 15.00 $ 11.10 $ 14.34 $ 19.14
- -----------------------------------------------------------------------------------------------------------------------
Income loss from investment operations:
Net investment loss (.05) 1 (.09) 1 (.13) (.03) (.01)
Net realized and unrealized gain (loss) 2.41 2.51 4.06 (3.21) (3.85)
-----------------------------------------------------------------
Total from investment operations 2.36 2.42 3.93 (3.24) (3.86)
- -----------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- (.09) (.03) -- --
Distributions from net realized gain -- -- -- -- (.94)
-----------------------------------------------------------------
Total dividends and/or distributions to
shareholders -- (.09) (.03) -- (.94)
- -----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 19.69 $ 17.33 $ 15.00 $ 11.10 $ 14.34
=================================================================
- -----------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 13.62% 16.25% 35.49% (22.59)% (21.23)%
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 160,347 $ 166,973 $ 174,959 $ 161,074 $ 230,085
- -----------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 162,953 $ 167,441 $ 148,838 $ 200,304 $ 262,745
- -----------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment loss (0.25)% (0.57)% (0.55)% (0.12)% (0.15)%
Total expenses 2.19% 2.24% 2.48% 2.39% 2.17%
Expenses after payments and waivers and
reduction to custodian expenses 2.19% 2.21% 2.19% 2.31% 2.17%
- -----------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 26% 37% 61% 46% 33%
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.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
35 | OPPENHEIMER INTERNATIONAL GROWTH FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
CLASS C YEAR ENDED NOVEMBER 30, 2005 2004 2003 2002 2001
- -----------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -----------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 17.34 $ 15.01 $ 11.12 $ 14.37 $ 19.16
- -----------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.04) 1 (.08) 1 (.08) (.01) -- 2
Net realized and unrealized gain (loss) 2.41 2.52 4.01 (3.24) (3.85)
-----------------------------------------------------------------
Total from investment operations 2.37 2.44 3.93 (3.25) (3.85)
- -----------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- (.11) (.04) -- --
Distributions from net realized gain -- -- -- -- (.94)
-----------------------------------------------------------------
Total dividends and/or distributions to
shareholders -- (.11) (.04) -- (.94)
- -----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 19.71 $ 17.34 $ 15.01 $ 11.12 $ 14.37
=================================================================
- -----------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 13.67% 16.34% 35.44% (22.62)% (21.16)%
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 158,968 $ 144,529 $ 116,659 $ 89,456 $ 114,084
- -----------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 151,790 $ 131,125 $ 90,532 $ 106,551 $ 122,775
- -----------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment loss (0.20)% (0.52)% (0.59)% (0.12)% (0.14)%
Total expenses 2.13% 2.16% 2.38% 2.37% 2.17%
Expenses after payments and waivers and reduction
to custodian expenses 2.13% 2.16% 2.22% 2.29% 2.17%
- -----------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 26% 37% 61% 46% 33%
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.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
36 | OPPENHEIMER INTERNATIONAL GROWTH FUND
CLASS N YEAR ENDED NOVEMBER 30, 2005 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) .05 2 -- 2,3 .02 .09 .01
Net realized and unrealized gain (loss) 2.49 2.60 4.08 (3.38) (3.82)
------------------------------------------------------------------
Total from investment operations 2.54 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 $ 20.40 $ 17.94 $ 15.51 $ 11.55 $ 14.93
==================================================================
- ------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 4 14.19% 16.94% 36.01% (22.18)% (20.33)%
- ------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 36,980 $ 32,631 $ 21,180 $ 11,833 $ 3,102
- ------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 33,383 $ 26,738 $ 14,722 $ 9,195 $ 1,152
- ------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 5
Net investment income (loss) 0.26% (0.02)% (0.16)% 0.19% 0.18%
Total expenses 1.77% 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% 1.74%
- ------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 26% 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.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
37 | OPPENHEIMER INTERNATIONAL GROWTH FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
CLASS Y PERIOD ENDED NOVEMBER 30, 2005 1
- --------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- --------------------------------------------------------------------------------
Net asset value, beginning of period $ 20.71
- --------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income 2 .05
Net realized and unrealized loss (.02)
----------
Total from investment operations .03
- --------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income --
Dividends from net realized gain --
----------
Total dividends and/or distributions to shareholders --
- --------------------------------------------------------------------------------
Net asset value, end of period $ 20.74
==========
- --------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 0.15%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 6,731
- --------------------------------------------------------------------------------
Average net assets (in thousands) $ 2,071
- --------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income 0.98%
Total expenses 0.85% 5
- --------------------------------------------------------------------------------
Portfolio turnover rate 26%
1. For the period from September 7, 2005 (inception of offering) to November 30,
2005.
2. Per share amounts calculated based on the average shares outstanding during
the period.
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%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
38 | OPPENHEIMER INTERNATIONAL GROWTH FUND
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer International Growth Fund (the Fund) is registered under the
Investment Company Act of 1940, as amended, as an open-end management investment
company. The Fund's investment objective is to seek long-term capital
appreciation. The Fund's investment advisor is OppenheimerFunds, Inc. (the
Manager).
The Fund offers Class A, Class B, Class C, Class N 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, 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. 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, C and N 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-
39 | OPPENHEIMER INTERNATIONAL GROWTH FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
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 (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.
40 | OPPENHEIMER INTERNATIONAL GROWTH 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.
The tax components of capital shown in the table below represent
distribution requirements the Fund must satisfy under the income tax
regulations, losses the Fund may be able to offset against income and gains
realized in future years and unrealized appreciation or depreciation of
securities and other investments for federal income tax purposes.
NET UNREALIZED
APPRECIATION
BASED ON COST OF
SECURITIES AND
UNDISTRIBUTED UNDISTRIBUTED ACCUMULATED OTHER INVESTMENTS
NET INVESTMENT LONG-TERM LOSS FOR FEDERAL INCOME
INCOME GAIN CARRYFORWARD 1,2,3 TAX PURPOSES
- ----------------------------------------------------------------------------
$ 6,003,134 $ -- $ 299,659,135 $ 307,965,897
1. As of November 30, 2005, the Fund had $299,659,135 of net capital loss
carryforwards available to offset future realized capital gains, if any, and
thereby reduce future taxable gain distributions. As of November 30, 2005,
details of the capital loss carryforwards were as follows:
EXPIRING
------------------------------
2009 $ 13,236,293
2010 110,808,862
2011 175,613,980
--------------
Total $ 299,659,135
==============
2. During the fiscal year ended November 30, 2005, the Fund utilized $63,414,765
of capital loss carryforward to offset capital gains realized in that fiscal
year.
3. During the fiscal year ended November 30, 2004, the Fund utilized $4,192,154
of capital loss carryforward to offset capital gains realized in that fiscal
year.
Net investment income (loss) and net realized gain (loss) may differ for
financial statement and tax purposes. The character of dividends and
distributions made during the fiscal year from net investment income or net
realized gains may differ from their ultimate characterization for federal
income tax purposes. Also, due to timing of dividends and distributions, the
fiscal year in which amounts are distributed may differ from the fiscal year in
which the income or net realized gain was recorded by the Fund. Accordingly, the
following amounts have been reclassified for November 30, 2005. Net assets of
the Fund were unaffected by the reclassifications.
41 | OPPENHEIMER INTERNATIONAL GROWTH FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
REDUCTION TO INCREASE TO
ACCUMULATED ACCUMULATED NET
NET INVESTMENT REALIZED LOSS
LOSS ON INVESTMENTS
-----------------------------------------
$ 5,651,707 $ 5,651,707
The tax character of distributions paid during the years ended November 30, 2005
and November 30, 2004 was as follows:
YEAR ENDED YEAR ENDED
NOVEMBER 30, 2005 NOVEMBER 30, 2004
----------------------------------------------------------------
Distributions paid from:
Ordinary income $ 4,531,459 $ 8,932,288
The aggregate cost of securities and other investments and the composition of
unrealized appreciation and depreciation of securities and other investments for
federal income tax purposes as of November 30, 2005 are noted below. The primary
difference between book and tax appreciation or depreciation of securities and
other investments, if applicable, is attributable to the tax deferral of losses
or tax realization of financial statement unrealized gain or loss.
Federal tax cost of securities $ 841,084,903
Federal tax cost of other investments 384,452
--------------
Total federal tax cost $ 841,469,355
==============
Gross unrealized appreciation $ 343,668,084
Gross unrealized depreciation (35,702,187)
--------------
Net unrealized appreciation $ 307,965,897
==============
- --------------------------------------------------------------------------------
TRUSTEES' COMPENSATION. The Fund has adopted an unfunded retirement plan for the
Fund's independent trustees. Benefits are based on years of service and fees
paid to each trustee during the years of service. During the year ended November
30, 2005, the Fund's projected benefit obligations were increased by $5,835 and
payments of $9,168 were made to retired trustees, resulting in an accumulated
liability of $153,099 as of November 30, 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 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.
42 | OPPENHEIMER INTERNATIONAL GROWTH FUND
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
2. SHARES OF BENEFICIAL INTEREST
The Fund has authorized an unlimited number of no par value shares of beneficial
interest of each class. Transactions in shares of beneficial interest were as
follows:
YEAR ENDED NOVEMBER 30, 2005 1 YEAR ENDED NOVEMBER 30, 2004
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------
CLASS A
Sold 13,981,578 $ 271,359,569 19,377,829 $ 323,265,209
Dividends and/or
distributions reinvested 203,071 3,746,661 364,291 5,755,789
Redeemed (13,863,240) (266,106,785) 2 (15,635,357) (259,881,613) 3
-----------------------------------------------------------------
Net increase 321,409 $ 8,999,445 4,106,763 $ 69,139,385
=================================================================
43 | OPPENHEIMER INTERNATIONAL GROWTH FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
2. SHARES OF BENEFICIAL INTEREST Continued
YEAR ENDED NOVEMBER 30, 2005 1 YEAR ENDED NOVEMBER 30, 2004
SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------------------------
CLASS B
Sold 1,302,301 $ 23,985,553 2,003,862 $ 32,149,130
Dividends and/or
distributions reinvested -- -- 61,977 940,197
Redeemed (2,793,027) (51,360,710) 2 (4,100,867) (65,284,199) 3
-----------------------------------------------------------------
Net decrease (1,490,726) $ (27,375,157) (2,035,028) $ (32,194,872)
=================================================================
- -----------------------------------------------------------------------------------------------------
CLASS C
Sold 1,548,621 $ 28,511,932 2,301,953 $ 36,724,240
Dividends and/or
distributions reinvested -- -- 45,549 690,983
Redeemed (1,818,883) (33,479,017) 2 (1,786,385) (28,411,899) 3
-----------------------------------------------------------------
Net increase (decrease) (270,262) $ (4,967,085) 561,117 $ 9,003,324
=================================================================
- -----------------------------------------------------------------------------------------------------
CLASS N
Sold 807,614 $ 15,360,583 1,087,688 $ 17,969,575
Dividends and/or
distributions reinvested 6,864 125,137 14,836 231,750
Redeemed (820,678) (15,474,159) 2 (649,373) (10,743,128) 3
-----------------------------------------------------------------
Net increase (decrease) (6,200) $ 11,561 453,151 $ 7,458,197
=================================================================
- -----------------------------------------------------------------------------------------------------
CLASS Y
Sold 334,146 $ 6,835,178 -- $ --
Dividends and/or
distributions reinvested -- -- -- --
Redeemed (9,558) (198,299) 2 -- --
-----------------------------------------------------------------
Net increase 324,588 $ 6,636,879 -- $ --
=================================================================
1. For the year ended November 30, 2005, for Class A, Class B, Class C and Class
N shares and for the period from September 7, 2005 (inception of offering) to
November 30, 2005, for Class Y shares.
2. Net of redemption fees of $6,990, $1,588, $1,479, $325 and $20 for Class A,
Class B, Class C, Class N and Class Y, respectively.
3. Net of redemption fees of $4,905, $1,373, $1,075 and $219 for Class A, Class
B, Class C and Class N, respectively.
- --------------------------------------------------------------------------------
3. PURCHASES AND SALES OF SECURITIES
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations, for the year ended November 30, 2005, were as
follows:
PURCHASES SALES
- -------------------------------------------------------------
Investment securities $ 271,971,268 $ 308,867,944
- --------------------------------------------------------------------------------
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
44 | 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 year ended November 30, 2005, the Fund paid
$3,472,160 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 institutions quarterly for
providing personal service 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 0.25% per year under each plan. If either the Class B, Class C or
Class N plan is terminated by the Fund or by the shareholders of a class, the
Board of Trustees and its independent trustees must determine whether the
Distributor shall be entitled to payment from the Fund of all or a portion of
the service fee and/or asset-based sales charge in respect to shares sold prior
to the effective date of such termination. The Distributor's aggregate
uncompensated expenses under the plan at November 30, 2005 for Class B, Class C
and Class N shares were $2,989,611, $2,889,193 and $296,643, respectively. Fees
incurred by the Fund under the plans are detailed in the Statement of
Operations.
45 | OPPENHEIMER INTERNATIONAL GROWTH FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued
SALES CHARGES. Front-end sales charges and contingent deferred sales charges
(CDSC) do not represent expenses of the Fund. They are deducted from the
proceeds of sales of Fund shares prior to investment or from redemption proceeds
prior to remittance, as applicable. The sales charges retained by the
Distributor from the sale of shares and the CDSC retained by the Distributor on
the redemption of shares is shown in the table below for the period indicated.
CLASS A CLASS B CLASS C CLASS N
CLASS A CONTINGENT CONTINGENT CONTINGENT CONTINGENT
FRONT-END DEFERRED DEFERRED DEFERRED DEFERRED
SALES CHARGES SALES CHARGES SALES CHARGES SALES CHARGES SALES CHARGES
RETAINED BY RETAINED BY RETAINED BY RETAINED BY RETAINED BY
YEAR ENDED DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR
- ----------------------------------------------------------------------------------------------
November 30, 2005 $ 306,475 $ 3,230 $ 279,364 $ 22,270 $ 37,036
- --------------------------------------------------------------------------------
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 year ended November 30, 2005 OFS
waived $579,107, $22 and $32,712 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 November 30, 2005, the Fund had outstanding foreign currency
contracts as follows:
CONTRACT VALUATION
EXPIRATION AMOUNT AS OF UNREALIZED
CONTRACT DESCRIPTION DATES (000s) NOV. 30, 2005 APPRECIATION
- --------------------------------------------------------------------------------------------
CONTRACTS TO PURCHASE
Danish Krone [DKK] 12/1/05-12/2/05 4,105DKK $ 649,263 $ 488
46 | OPPENHEIMER INTERNATIONAL GROWTH FUND
- --------------------------------------------------------------------------------
6. ILLIQUID OR RESTRICTED SECURITIES
As of November 30, 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 are marked with the applicable
footnote on the Statement of Investments. Information concerning restricted
securities is as follows:
VALUATION AS OF UNREALIZED
ACQUISITION NOVEMBER 30, APPRECIATION
SECURITY DATES COST 2005 (DEPRECIATION)
- -------------------------------------------------------------------------------------------------
Art Advanced Research
Technologies, Inc. 6/19/01 $ 7,500,000 $ 896,257 $ (6,603,743)
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. 5/6/02 6,869,052 12,472,987 5,603,935
Oxagen Ltd. 12/20/00 2,210,700 16,220 (2,194,480)
------------------------------------------------
$ 21,665,812 $20,291,812 $ (1,374,000)
================================================
- --------------------------------------------------------------------------------
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,
47 | OPPENHEIMER INTERNATIONAL GROWTH FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
7. LITIGATION Continued
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.
48 | OPPENHEIMER INTERNATIONAL GROWTH FUND
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
THE BOARD OF TRUSTEES AND SHAREHOLDERS OF
OPPENHEIMER INTERNATIONAL GROWTH FUND:
We have audited the accompanying statement of assets and liabilities of
Oppenheimer International Growth Fund including the statement of investments, as
of November 30, 2005, and the related statement of operations for the year then
ended, the statements of changes in net assets for each of the years in the
two-year period then ended, and the financial highlights for each of the years
in the five-year period then ended. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. Our procedures included
confirmation of securities owned as of November 30, 2005, by correspondence with
the custodian and brokers or by other appropriate auditing procedures where
replies from brokers were not received. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Oppenheimer International Growth Fund as of November 30, 2005, the results of
its operations for the year then ended, the changes in its net assets for each
of the years in the two-year period then ended, and the financial highlights for
each of the years in the five-year period then ended, in conformity with U.S.
generally accepted accounting principles.
KPMG LLP
Denver, Colorado
January 18, 2006
49 | OPPENHEIMER INTERNATIONAL GROWTH FUND
FEDERAL INCOME TAX INFORMATION Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
In early 2006, if applicable, shareholders of record will receive information
regarding all dividends and distributions paid to them by the Fund during
calendar year 2005. Regulations of the U.S. Treasury Department require the Fund
to report this information to the Internal Revenue Service.
Dividends of $0.1158 and $0.0772 per share were paid to Class A and Class
N shareholders, respectively, on December 16, 2004, none of which was designated
as a "capital gain distribution" for federal income tax purposes.
Dividends, if any, paid by the Fund during the fiscal year ended November
30, 2005 which are not designated as capital gain distributions should be
multiplied by 1.59% to arrive at the amount eligible for the corporate
dividend-received deduction.
A portion, if any, of the dividends paid by the Fund during the fiscal
year ended November 30, 2005 which are not designated as capital gain
distributions are eligible for lower individual income tax rates to the extent
that the Fund has received qualified dividend income as stipulated by recent tax
legislation. $17,807,401 of the Fund's fiscal year taxable income may be
eligible for the lower individual income tax rates. In early 2006, shareholders
of record will receive information regarding the percentage of distributions
that are eligible for lower individual income tax rates.
The Fund has elected the application of Section 853 of the Internal
Revenue Code to permit shareholders to take a federal income tax credit or
deduction, at their option, on a per share basis for an aggregate amount of
$2,025,129 of foreign income taxes paid by the Fund during the fiscal year ended
November 30, 2005. A separate notice will be mailed to each shareholder, which
will reflect the proportionate share of such foreign taxes which must be treated
by shareholders as gross income for federal income tax purposes.
$9,173,323 of gross income was derived from sources within foreign
countries or possessions of the United States.
The foregoing information is presented to assist shareholders in reporting
distributions received from the Fund to the Internal Revenue Service. Because of
the complexity of the federal regulations which may affect your individual tax
return and the many variations in state and local tax regulations, we recommend
that you consult your tax advisor for specific guidance.
50 | OPPENHEIMER INTERNATIONAL GROWTH FUND
REPORT OF SHAREHOLDER MEETING Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
On August 17, 2005, a joint special meeting of shareholders was held at which
the eleven Trustees identified below were elected (Proposal No. 1). The meeting
was adjourned until September 16, 2005 to allow the Fund to solicit additional
votes for the proposals to change, add or eliminate certain fundamental
investment policies (Proposal No. 2) as described in the Fund's proxy statement
for that meeting. On September 16, 2005, the meeting was reconvened and the
proposals regarding changes in, or the addition or elimination of, certain
fundamental investment policies were approved (Proposal No. 2). The following is
a report of the votes cast:
- --------------------------------------------------------------------------------
PROPOSAL NO.1
NOMINEE FOR WITHHELD TOTAL
- --------------------------------------------------------------------------------
TRUSTEES
Matthew P. Fink 29,160,988.580 372,193.384 29,533,181.964
Robert G. Galli 29,139,545.722 393,636.242 29,533,181.964
Phillip A. Griffiths 29,162,578.986 370,602.978 29,533,181.964
Mary F. Miller 29,152,244.072 380,937.892 29,533,181.964
Joel W. Motley 29,157,685.813 375,496.151 29,533,181.964
John V. Murphy 29,151,600.724 381,581.240 29,533,181.964
Kenneth A. Randall 29,132,448.835 400,733.129 29,533,181.964
Russell S. Reynolds, Jr. 29,120,403.347 412,778.617 29,533,181.964
Joseph M. Wikler 29,165,053.882 368,128.082 29,533,181.964
Peter I. Wold 29,143,331.938 389,850.026 29,533,181.964
Clayton K. Yeutter 29,125,891.538 407,290.426 29,533,181.964
- --------------------------------------------------------------------------------
PROPOSAL NO. 2
FOR AGAINST ABSTAIN BROKER NON-VOTE TOTAL
- --------------------------------------------------------------------------=-----
2A: Proposal to change the policy on Borrowing
20,912,808.168 949,498.548 786,037.572 6,807,319.000 29,455,663.288
2B: Proposal to change the policy on Concentration of Investments
21,104,207.930 775,037.578 769,098.780 6,807,319.000 29,455,663.288
2C: Proposal to change the policy on Diversification of Investments
21,237,764.075 676,928.728 733,651.485 6,807,319.000 29,455,663.288
2E: Proposal to eliminate the policy on Investing to Exercise Control
21,122,123.166 749,167.396 777,053.726 6,807,319.000 29,455,663.288
2F: Proposal to eliminate the policy on Investing in Issuers Whose Shares are
Owned by the Funds' Trustees and Officers
20,769,058.976 1,089,626.195 789,659.117 6,807,319.000 29,455,663.288
2G: Proposal to change the policy on Investing in Other Investment Companies
21,002,358.317 893,105.671 752,880.300 6,807,319.000 29,455,663.288
2H: Proposal to change the policy on Lending
20,905,465.409 953,032.818 789,846.061 6,807,319.000 29,455,663.288
2I: Proposal to eliminate the policy on Margin and Short Sales (purchasing)
20,743,672.828 1,128,466.392 776,205.068 6,807,319.000 29,455,663.288
2J: Proposal to eliminate the policy on Pledging, Mortgaging or Hypothecating of
Assets
20,765,344.247 1,064,999.701 818,000.340 6,807,319.000 29,455,663.288
2K: Proposal to approve the policy on Real Estate and Commodities
21,162,125.216 756,617.535 729,601.537 6,807,319.000 29,455,663.288
2L: Proposal to change the policy on Senior Securities
21,099,651.979 752,983.858 795,708.451 6,807,319.000 29,455,663.288
51 | 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 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.
52 | OPPENHEIMER INTERNATIONAL GROWTH FUND
TRUSTEES AND OFFICERS Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NAME, POSITION(s) HELD WITH THE PRINCIPAL OCCUPATION(S) DURING THE PAST 5
FUND, LENGTH OF SERVICE, AGE YEARS; OTHER TRUSTEESHIPS/DIRECTORSHIPS HELD;
NUMBER OF PORTFOLIOS IN THE FUND COMPLEX
CURRENTLY OVERSEEN
INDEPENDENT THE ADDRESS OF EACH TRUSTEE IN THE CHART BELOW
TRUSTEES IS 6803 S. TUCSON WAY, CENTENNIAL, COLORADO
80112-3924. EACH TRUSTEE SERVES FOR AN
INDEFINITE TERM, OR UNTIL HIS OR HER
RESIGNATION, RETIREMENT, DEATH OR REMOVAL.
CLAYTON K. YEUTTER, Director of American Commercial Lines (barge
Chairman of the Board company) (since January 2005); Attorney at
of Trustees (since 2003), Hogan & Hartson (law firm) (since June 1993);
Trustee (since 1996) Director of Danielson Holding Corp.
Age: 75 (waste-to-energy company) (since 2002);
Director of Weyerhaeuser Corp. (1999-April
2004); Director of Caterpillar, Inc.
(1993-December 2002); Director of ConAgra
Foods (1993-2001); Director of Texas
Instruments (1993- 2001); Director of FMC
Corporation (1993-2001). Oversees 38
portfolios in the OppenheimerFunds complex.
MATTHEW P. FINK, Trustee of the Committee for Economic
Trustee (since 2005) Development (policy research foundation)
Age: 64 (since 2005); Director of ICI Education
Foundation (education foundation) (since
October 1991); President of the Investment
Company Institute (trade association)
(1991-2004); Director of ICI Mutual Insurance
Company (insurance company) (1991-2004).
Oversees 38 portfolios in the OppenheimerFunds
complex.
ROBERT G. GALLI, A trustee or director of other Oppenheimer
Trustee (since 1996) funds. Oversees 48 portfolios in the
Age: 72 OppenheimerFunds complex.
PHILLIP A. GRIFFITHS, Director of GSI Lumonics Inc. (precision
Trustee (since 1999) medical equipment supplier) (since 2001);
Age: 67 Trustee of Woodward Academy (since 1983);
Senior Advisor of The Andrew W. Mellon
Foundation (since 2001); Member of the
National Academy of Sciences (since 1979);
Member of the American Philosophical Society
(since 1996); Council on Foreign Relations
(since 2002); Director of the Institute for
Advanced Study (1991-2004); Director of
Bankers Trust New York Corporation
(1994-1999). Oversees 38 portfolios in the
OppenheimerFunds complex.
MARY F. MILLER, Trustee of the American Symphony Orchestra
Trustee (since 2004) (not-for-profit) (since October 1998); and
Age: 63 Senior Vice President and General Auditor of
American Express Company (financial services
company) (July 1998-February 2003). Oversees
38 portfolios in the OppenheimerFunds complex.
JOEL W. MOTLEY, Director of Columbia Equity Financial Corp.
Trustee (since 2002) (privately-held financial adviser) (since
Age: 53 2002); Managing Director of Carmona Motley,
Inc. (privately-held financial adviser) (since
January 2002); Managing Director of Carmona
Motley Hoffman Inc. (privately-held financial
adviser) (January 1998-December 2001).
Oversees 38 portfolios in the OppenheimerFunds
complex.
KENNETH A. RANDALL, Director of Dominion Resources, Inc. (electric
Trustee (since 1996) utility holding company) (since February
Age: 78 1972); Former Director of Prime Retail, Inc.
(real estate investment trust), Dominion
Energy Inc. (electric power and oil & gas
producer), Lumbermens Mutual Casualty Company,
American Motorists Insurance Company and
American Manufacturers Mutual Insurance
Company; Former President and Chief Executive
Officer of The Conference Board, Inc.
(international economic and business
research). Oversees 38 portfolios in the
OppenheimerFunds complex.
53 | OPPENHEIMER INTERNATIONAL GROWTH FUND
TRUSTEES AND OFFICERS Unaudited / Continued
- --------------------------------------------------------------------------------
RUSSELL S. REYNOLDS, JR., Chairman of The Directorship Search Group, Inc.
Trustee (since 1996) (corporate governance consulting and executive
Age: 74 recruiting) (since 1993); Life Trustee of
International House (non-profit educational
organization); Former Trustee of The Historical
Society of the Town of Greenwich. Oversees 38
portfolios in the OppenheimerFunds complex.
JOSEPH M. WIKLER, Director of the following medical device companies:
Trustee (since 2005) Medintec (since 1992) and Cathco (since 1996);
Age: 64 Director of Lakes Environmental Association (since
1996); Member of the Investment Committee of the
Associated Jewish Charities of Baltimore (since
1994); Director of Fortis/Hartford mutual funds
(1994-December 2001). Oversees 39 portfolios in the
OppenheimerFunds complex.
PETER I. WOLD, President of Wold Oil Properties, Inc. (oil and gas
Trustee (since 2005) exploration and production company) (since 1994);
Age: 57 Vice President, Secretary and Treasurer of Wold
Trona Company, Inc. (soda ash processing and
production) (since 1996); Vice President of Wold
Talc Company, Inc. (talc mining) (since 1999);
Managing Member of Hole-in-the-Wall Ranch (cattle
ranching) (since 1979); Director and Chairman of
the Denver Branch of the Federal Reserve Bank of
Kansas City (1993-1999); and Director of
PacifiCorp. (electric utility) (1995-1999).
Oversees 39 portfolios in the OppenheimerFunds
complex.
BRIAN F. WRUBLE, General Partner of Odyssey Partners, L.P. (hedge
Trustee (since 2005) fund) (since September 1996); Director of Special
Age: 62 Value Opportunities Fund, LLC (registered
investment company) (since September 2004);
Director of Zurich Financial Investment Advisory
Board (affiliate of the Manager's parent company)
(since October 2004); Board of Governing Trustees
of The Jackson Laboratory (non-profit) (since
August 1990); Trustee of the Institute for Advanced
Study (non-profit educational institute) (since May
1992); Special Limited Partner of Odyssey
Investment Partners, LLC (private equity
investment) (January 1999-September 2004); Trustee
of Research Foundation of AIMR (2000-2002)
(investment research, non-profit); Governor, Jerome
Levy Economics Institute of Bard College (August
1990-September 2001) (economics research); Director
of Ray & Berendtson, Inc. (May 2000-April 2002)
(executive search firm). Oversees 48 portfolios in
the OppenheimerFunds complex.
- --------------------------------------------------------------------------------
INTERESTED TRUSTEE THE ADDRESS OF MR. MURPHY IS TWO WORLD FINANCIAL
AND OFFICER CENTER, 225 LIBERTY STREET, 11TH FLOOR, NEW YORK, NEW
YORK 10281-1008. MR. MURPHY SERVES AS A TRUSTEE FOR
AN INDEFINITE TERM, OR UNTIL HIS RESIGNATION,
RETIREMENT, DEATH OR REMOVAL AND AS AN OFFICER FOR AN
INDEFINITE TERM, OR UNTIL HIS RESIGNATION,
RETIREMENT, DEATH OR REMOVAL. MR. MURPHY IS AN
INTERESTED TRUSTEE DUE TO HIS POSITIONS WITH
OPPENHEIMERFUNDS, INC. AND ITS AFFILIATES.
JOHN V. MURPHY, Chairman, Chief Executive Officer and Director
President and Principal (since June 2001) and President (since September
Executive Officer (since 2000) of the Manager; President and Director or
2001) and Trustee Trustee of other Oppenheimer funds; President and
(since 2001) Director of Oppenheimer Acquisition Corp. ("OAC")
Age: 56 (the Manager's parent holding company) and of
Oppenheimer Partnership Holdings, Inc. (holding
company subsidiary of the Manager) (since July
2001); Director of OppenheimerFunds Distributor,
Inc. (subsidiary of the Manager) (since November
2001); Chairman and Director of Shareholder
Services, Inc. and of Shareholder Financial
Services, Inc. (transfer agent subsidiaries of the
Manager) (since July 2001); President and Director
of OppenheimerFunds Legacy Program (charitable
trust program established by the Manager) (since
July 2001); Director of the following investment
advisory subsidiaries of the Manager: OFI
Institutional Asset Management, Inc., Centennial
Asset Management Corporation, Trinity Investment
Management Corporation and Tremont Capital
Management, Inc. (since November 2001), HarbourView
54 | OPPENHEIMER INTERNATIONAL GROWTH FUND
JOHN V. MURPHY, Asset Management Corporation and OFI Private
Continued Investments, Inc. (since July 2001); President (since
November 1, 2001) and Director (since July 2001) of
Oppenheimer Real Asset Management, Inc.; Executive
Vice President of Massachusetts Mutual Life Insurance
Company (OAC's parent company) (since February 1997);
Director of DLB Acquisition Corporation (holding
company parent of Babson Capital Management LLC)
(since June 1995); Member of the Investment Company
Institute's Board of Governors (since October 3,
2003); Chief Operating Officer of the Manager
(September 2000-June 2001); President and Trustee of
MML Series Investment Fund and MassMutual Select
Funds (open-end investment companies) (November
1999-November 2001); Director of C.M. Life Insurance
Company (September 1999-August 2000); President,
Chief Executive Officer and Director of MML Bay State
Life Insurance Company (September 1999-August 2000);
Director of Emerald Isle Bancorp and Hibernia Savings
Bank (wholly-owned subsidiary of Emerald Isle
Bancorp) (June 1989-June 1998). Oversees 87
portfolios in the OppenheimerFunds complex.
- --------------------------------------------------------------------------------
OTHER OFFICERS THE ADDRESSES OF THE OFFICERS IN THE CHART BELOW ARE
AS FOLLOWS: FOR MESSRS. EVANS AND ZACK, TWO WORLD
FINANCIAL CENTER, 225 LIBERTY STREET, NEW YORK, NEW
YORK 10281-1008, FOR MESSRS VANDEHEY AND WIXTED,
6803 S. TUCSON WAY, CENTENNIAL, COLORADO 80112-3924.
EACH OFFICER SERVES FOR AN INDEFINITE TERM OR UNTIL
HIS OR HER RESIGNATION, RETIREMENT DEATH OR REMOVAL.
GEORGE R. EVANS, Senior Vice President (since October 1993) and
Vice President and Director of International Equities (since July 2004)
Portfolio of the Manager. Formerly Vice President of
Manager (since 1996) HarbourView Asset Management Corporation (July
Age: 46 1994-November 2001). An officer of 2 portfolios in
the OppenheimerFunds complex.
MARK S. VANDEHEY, Senior Vice President and Chief Compliance Officer of
Vice President and Chief the Manager (since March 2004); Vice President of
Compliance Officer OppenheimerFunds Distributor, Inc., Centennial Asset
(since 2004) Management Corporation and Shareholder Services, Inc.
Age: 55 (since June 1983). Former Vice President and Director
of Internal Audit of the Manager (1997-February
2004). An officer of 87 portfolios in the
OppenheimerFunds complex.
BRIAN W. WIXTED, Senior Vice President and Treasurer of the Manager
Treasurer and Principal (since March 1999); Treasurer of the following:
Financial and Accounting HarbourView Asset Management Corporation, Shareholder
Officer (since 1999) Financial Services, Inc., Shareholder Services, Inc.,
Age: 46 Oppenheimer Real Asset Management Corporation, and
Oppenheimer Partnership Holdings, Inc. (since March
1999), OFI Private Investments, Inc. (since March
2000), OppenheimerFunds International Ltd. (since May
2000), OppenheimerFunds plc (since May 2000), OFI
Institutional Asset Management, Inc. (since November
2000), and OppenheimerFunds Legacy Program
(charitable trust program established by the Manager)
(since June 2003); Treasurer and Chief Financial
Officer of OFI Trust Company (trust company
subsidiary of the Manager) (since May 2000);
Assistant Treasurer of the following: OAC (since
March 1999), Centennial Asset Management Corporation
(March 1999-October 2003) and OppenheimerFunds Legacy
Program (April 2000-June 2003); Principal and Chief
Operating Officer of Bankers Trust Company-Mutual
Fund Services Division (March 1995-March 1999). An
officer of 87 portfolios in the OppenheimerFunds
complex.
55 | OPPENHEIMER INTERNATIONAL GROWTH FUND
TRUSTEES AND OFFICERS Unaudited / Continued
- --------------------------------------------------------------------------------
ROBERT G. ZACK, Executive Vice President (since January 2004) and
Secretary (since 2001) General Counsel (since March 2002) of the Manager;
Age: 57 General Counsel and Director of the Distributor
(since December 2001); General Counsel of Centennial
Asset Management Corporation (since December 2001);
Senior Vice President and General Counsel of
HarbourView Asset Management Corporation (since
December 2001); Secretary and General Counsel of OAC
(since November 2001); Assistant Secretary (since
September 1997) and Director (since November 2001) of
OppenheimerFunds International Ltd. and
OppenheimerFunds plc; Vice President and Director of
Oppenheimer Partnership Holdings, Inc. (since
December 2002); Director of Oppenheimer Real Asset
Management, Inc. (since November 2001); Senior Vice
President, General Counsel and Director of
Shareholder Financial Services, Inc. and Shareholder
Services, Inc. (since December 2001); Senior Vice
President, General Counsel and Director of OFI
Private Investments, Inc. and OFI Trust Company
(since November 2001); Vice President of
OppenheimerFunds Legacy Program (since June 2003);
Senior Vice President and General Counsel of OFI
Institutional Asset Management, Inc. (since November
2001); Director of OppenheimerFunds (Asia) Limited
(since December 2003); Senior Vice President (May
1985-December 2003), Acting General Counsel (November
2001-February 2002) and Associate General Counsel
(May 1981-October 2001) of the Manager; Assistant
Secretary of the following: Shareholder Services,
Inc. (May 1985-November 2001), Shareholder Financial
Services, Inc. (November 1989-November 2001), and
OppenheimerFunds International Ltd. (September
1997-November 2001). An officer of 87 portfolios in
the OppenheimerFunds complex.
THE FUND'S STATEMENT OF ADDITIONAL INFORMATION CONTAINS ADDITIONAL INFORMATION
ABOUT THE FUND'S TRUSTEES AND OFFICERS AND IS AVAILABLE WITHOUT CHARGE UPON
REQUEST, BY CALLING 1.800.525.7048.
56 | OPPENHEIMER INTERNATIONAL GROWTH FUND
ITEM 2. CODE OF ETHICS.
The registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller or persons performing similar functions.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The Board of Trustees of the registrant has determined that the registrant does
not have an audit committee financial expert serving on its Audit Committee. In
this regard, no member of the Audit Committee was identified as having all of
the technical attributes identified in Instruction 2(b) to Item 3 of Form N-CSR
to qualify as an "audit committee financial expert," whether
through the type of specialized education or experience described in that
Instruction. The Board has concluded that while the members of the Audit
Committee collectively have the necessary attributes and experience required to
serve effectively as an Audit Committee, no single member possesses all of the
required technical attributes through the particular methods of education or
experience set forth in the Instructions to be designated as an audit committee
financial expert.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Audit Fees
The principal accountant for the audit of the registrant's annual financial
statements billed $23,000 in fiscal 2005 and $18,000 in fiscal 2004.
(b) Audit-Related Fees
The principal accountant for the audit of the registrant's annual financial
statements billed no such fees during the last two fiscal years.
The principal accountant for the audit of the registrant's annual financial
statements billed $156,805 in fiscal 2005 and $39,500 in fiscal 2004 to the
registrant's investment adviser or any entity controlling, controlled by, or
under common control with the adviser that provides ongoing services to the
registrant.
Such services: internal control reviews.
(c) Tax Fees
The principal accountant for the audit of the registrant's annual financial
statements billed no such fees to the registrant during the last two fiscal
years.
The principal accountant for the audit of the registrant's annual financial
statements billed $5,000 in fiscal 2005 and $6,000 in fiscal 2004 to the
registrant's investment adviser or any entity controlling, controlled by, or
under common control with the adviser that provides ongoing services to the
registrant.
Such services: Computations of capital gain tax liability, preparation of tax
returns, preparation of Form 5500 and tax consultations on pass through of
foreign withholding taxes and mortgage dollar roll transactions.
(d) All Other Fees
The principal accountant for the audit of the registrant's annual financial
statements billed no such fees to the registrant during the last two fiscal
years.
The principal accountant for the audit of the registrant's annual financial
statements billed no such fees during the last two fiscal years to the
registrant's investment adviser or any entity controlling, controlled by, or
under common control with the adviser that provides ongoing services to the
registrant.
(e) (1) During its regularly scheduled periodic meetings, the registrant's
audit committee will pre-approve all audit, audit-related, tax and
other services to be provided by the principal accountants of the
registrant.
The audit committee has delegated pre-approval authority to its
Chairman for any subsequent new engagements that arise between
regularly scheduled meeting dates provided that any fees such
pre-approved are presented to the audit committee at its next regularly
scheduled meeting.
Under applicable laws, pre-approval of non-audit services maybe waived
provided that: 1) the aggregate amount of all such services provided
constitutes no more than five percent of the total amount of fees paid
by the registrant to it principal accountant during the fiscal year in
which services are provided 2) such services were not recognized by the
registrant at the time of engagement as non-audit services and 3) such
services are promptly brought to the attention of the audit committee
of the registrant and approved prior to the completion of the audit.
(2) 100%
(f) Not applicable as less than 50%.
(g) The principal accountant for the audit of the registrant's annual
financial statements billed $161,805 in fiscal 2005 and $45,500 in
fiscal 2004 to the registrant and the registrant's investment adviser
or any entity controlling, controlled by, or under common control with
the adviser that provides ongoing services to the registrant related to
non-audit fees. Those billings did not include any prohibited non-audit
services as defined by the Securities Exchange Act of 1934.
(h) The registrant's audit committee of the board of trustees has
considered whether the provision of non-audit services that were
rendered to the registrant's investment adviser, and any entity
controlling, controlled by, or under common control with the investment
adviser that provides ongoing services to the registrant that were not
pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of
Regulation S-X is compatible with maintaining the principal
accountant's independence.
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 November 30, 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) Exhibit attached hereto.
(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 Growth Fund
By: /s/ John V. Murphy
------------------
John V. Murphy
Principal Executive Officer
Date: January 18, 2006
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: January 18, 2006
By: /s/ Brian W. Wixted
-------------------
Brian W. Wixted
Principal Financial Officer
Date: January 18, 2006