UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-07489
OPPENHEIMER INTERNATIONAL GROWTH FUND
(Exact name of registrant as specified in charter)
6803 SOUTH TUCSON WAY, CENTENNIAL, COLORADO 80112-3924
(Address of principal executive offices) (Zip code)
Robert G. Zack, Esq.
OppenheimerFunds, Inc.
TWO WORLD FINANCIAL CENTER, NEW YORK, NEW YORK 10281-1008
(Name and address of agent for service)
Registrant's telephone number, including area code: (303) 768-3200
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Date of fiscal year end: NOVEMBER 30
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Date of reporting period: NOVEMBER 30, 2006
ITEM 1. REPORTS TO STOCKHOLDERS.
TOP HOLDINGS AND ALLOCATIONS
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TOP TEN GEOGRAPHICAL HOLDINGS
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United Kingdom 18.3%
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Japan 15.6
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France 13.1
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Switzerland 10.2
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Germany 6.5
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The Netherlands 4.1
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Denmark 3.6
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India 3.5
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Sweden 3.5
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Italy 3.0
Portfolio holdings and allocations are subject to change. Percentages are as of
November 30, 2006, and are based on the total market value of investments.
TOP TEN COMMON STOCK HOLDINGS
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ABB Ltd. 2.5%
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Telefonaktiebolaget LM Ericsson, B Shares 2.3
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William Demant Holding AS 2.2
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NicOx SA 2.1
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Continental AG 2.0
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Capita Group plc 2.0
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Anglo Irish Bank Corp. 1.8
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Technip SA 1.8
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Aalberts Industries NV 1.8
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Collins Stewart Tullett plc 1.7
Portfolio holdings and allocations are subject to change. Percentages are as of
November 30, 2006, 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 68.6%
Asia 23.3
Latin America 3.5
United States/Canada 2.5
Middle East/Africa 2.1
Portfolio holdings and allocations are subject to change. Percentages are as of
November 30, 2006, 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, 2006, FOLLOWED
BY A GRAPHICAL COMPARISON OF THE FUND'S PERFORMANCE TO AN APPROPRIATE
BROAD-BASED MARKET INDEX.
MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE. The Fund provided strong absolute
returns during the past 12 months, with its Class A shares (without sales
charge) gaining 31.49%. The Fund also performed well relative to its benchmark,
the MSCI EAFE Index, which returned 28.20% during the same period. The Fund's
Class A shares (without sales charge) finished in the first quartile of
international multi-cap core funds, as ranked by Lipper, Inc. The Fund benefited
from our long-term investment focus, low-turnover management approach and
discipline in avoiding paying more for companies than we believed they were
worth. In fact, many of our best-performing stocks during the period were
longtime portfolio holdings--a testament, we believe, to our focus on generating
successful long-term results over short-term gains.
We describe ourselves as long-term-oriented, "growth theme" investors. By
this, we mean that we look to own reasonably valued stocks that we believe may
benefit from favorable global fundamentals that can provide a tailwind for the
companies in which we decide to invest. We favor stocks that we believe may be
positioned to deliver above-average revenue growth over the next five to ten
years. During the past year, we continued to look for attractive investment
opportunities in the following four thematic areas: MASS AFFLUENCE, NEW
TECHNOLOGIES, RESTRUCTURING AND AGING. These management themes have remained
essentially in place since the Fund's inception in 1996.
In selecting stocks for the Fund, we continued to follow a bottom-up
security selection approach, meaning that we evaluate investment opportunities
one-by-one based on our assessment of their long-term growth potential, as
opposed to a top-down effort to own a target weighting in a particular country
or economic sector. During the past year, we were comfortable with how the
portfolio was structured and made relatively few changes to our
holdings--maintaining our long-term, low-turnover investment focus.
One of the Fund's strongest contributors to performance during the period
was NicOx SA, a French biotechnology and drug discovery company owned in the
Fund since late 1998. The company has benefited by developing more effective
drugs to treat a variety of ailments with fewer side effects. Also performing
well was our largest holding at period end, Switzerland-based ABB Ltd., whose
technologies are widely used by utilities and industrial companies. ABB has
benefited from a strong fundamental backdrop for its businesses. In addition,
the company's shares have continued to recover following its financial
restructuring and the market's diminishing concerns about its as-bestos
litigation risk. A third recent positive was Collins Stewart Tullet plc, an
interdealer
10 | OPPENHEIMER INTERNATIONAL GROWTH FUND
broker that facilitates the trading of non-exchange-related securities. Several
prudent acquisitions for the company have led to cost savings and synergies,
which in turn have generated positive earnings surprises and boosted the
company's valuation.
On the negative side, Australian drug discovery company Marshall Edwards,
Inc., the maj-ority of which is owned by Novogen Ltd., was a disappointing
performer. Although we saw nothing fundamentally wrong with the company during
the past 12 months, in the absence of recent news, either positive or negative,
Marshall Edwards' shares lost ground. However, we still believe in the company's
long-term prospects and are still very comfortable with our current position.
Another detractor was NEOMAX Co. Ltd., a Japanese manufacturer of magnets whose
products are essential components in hybrid automobiles. NEOMAX suffered a
sig-nificant correction, in part because of the company's high valuation at the
beginning of the period, but we maintained our allocation because of our
favorable view of the stock. Also underperforming was Yahoo! Japan Corp.,
commonly seen as Japan's leading internet company. We recognized that the stock
was highly valued and sold most of our position. We later repurchased the stock
at a lower price, because we continue to think that Yahoo! Japan has solid
growth potential ahead of it.
WE URGE SHAREHOLDERS TO KEEP IN MIND THE ADDED VOLATILITY AND
RISK--INCLUDING CURRENCY FLUCTUATIONS AND ECONOMIC AND POLITICAL
INSTABILITY--THAT INVESTING IN THE SECURITIES OF INTERNATIONAL MARKET ENTAILS.
EMERGING MARKETS INVESTMENTS CAN BE ESPECIALLY VOLATILE.
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, 2006. In the case of Class A, Class B and Class C
shares, performance is measured over a ten-fiscal-year period. 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 shown 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 Index (Europe, Australasia, Far East),
which is a free float-adjusted market capitalization index that is designed to
measure developed market equity perform-ance, 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
Growth Fund MSCI EAFE
(Class A) Index
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11/30/1996 $ 9,425 $10,000
02/28/1997 $10,244 $ 9,689
05/31/1997 $11,143 $10,419
08/31/1997 $11,296 $10,344
11/30/1997 $11,536 $ 9,988
02/28/1998 $12,245 $11,219
05/31/1998 $14,169 $11,607
08/31/1998 $11,959 $10,357
11/30/1998 $12,318 $11,663
02/28/1999 $12,323 $11,807
05/31/1999 $12,721 $12,148
08/31/1999 $13,745 $13,053
11/30/1999 $16,667 $14,162
02/29/2000 $24,479 $14,850
05/31/2000 $19,476 $14,265
08/31/2000 $21,737 $14,334
11/30/2000 $17,321 $12,823
02/28/2001 $17,242 $12,281
05/31/2001 $16,994 $11,849
08/31/2001 $14,474 $10,882
11/30/2001 $13,757 $10,403
02/28/2002 $13,465 $ 9,980
05/31/2002 $13,990 $10,745
08/31/2002 $11,371 $ 9,284
11/30/2002 $10,726 $ 9,133
02/28/2003 $ 9,047 $ 8,265
05/31/2003 $10,882 $ 9,462
08/31/2003 $12,662 $10,174
11/30/2003 $14,646 $11,393
02/29/2004 $16,125 $12,748
05/31/2004 $15,493 $12,584
08/31/2004 $14,955 $12,523
11/30/2004 $17,163 $14,202
02/28/2005 $18,362 $15,187
05/31/2005 $17,508 $14,502
08/31/2005 $19,160 $15,539
11/30/2005 $19,654 $16,151
02/28/2006 $21,952 $17,906
05/31/2006 $22,487 $18,672
08/31/2006 $23,233 $19,390
11/30/2006 $25,843 $20,790
AVERAGE ANNUAL TOTAL RETURN OF CLASS A SHARES WITH SALES CHARGE OF THE FUND
AT 11/30/06
1-Year 23.93% 5-Year 12.10% 10-Year 9.96%
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
Growth Fund MSCI EAFE
(Class B) Index
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11/30/1996 $10,000 $10,000
02/28/1997 $10,841 $ 9,689
05/31/1997 $11,777 $10,419
08/31/1997 $11,923 $10,344
11/30/1997 $12,146 $ 9,988
02/28/1998 $12,869 $11,219
05/31/1998 $14,865 $11,607
08/31/1998 $12,520 $10,357
11/30/1998 $12,869 $11,663
02/28/1999 $12,860 $11,807
05/31/1999 $13,247 $12,148
08/31/1999 $14,279 $13,053
11/30/1999 $17,285 $14,162
02/29/2000 $25,340 $14,850
05/31/2000 $20,123 $14,265
08/31/2000 $22,415 $14,334
11/30/2000 $17,831 $12,823
02/28/2001 $17,708 $12,281
05/31/2001 $17,424 $11,849
08/31/2001 $14,809 $10,882
11/30/2001 $14,045 $10,403
02/28/2002 $13,722 $ 9,980
05/31/2002 $14,231 $10,745
08/31/2002 $11,547 $ 9,284
11/30/2002 $10,878 $ 9,133
02/28/2003 $ 9,175 $ 8,265
05/31/2003 $11,037 $ 9,462
08/31/2003 $12,842 $10,174
11/30/2003 $14,854 $11,393
02/29/2004 $16,354 $12,748
05/31/2004 $15,713 $12,584
08/31/2004 $15,167 $12,523
11/30/2004 $17,407 $14,202
02/28/2005 $18,623 $15,187
05/31/2005 $17,757 $14,502
08/31/2005 $19,432 $15,539
11/30/2005 $19,933 $16,151
02/28/2006 $22,264 $17,906
05/31/2006 $22,807 $18,672
08/31/2006 $23,563 $19,390
11/30/2006 $26,211 $20,790
AVERAGE ANNUAL TOTAL RETURN OF CLASS B SHARES WITH SALES CHARGE OF THE FUND
AT 11/30/06
1-Year 25.47% 5-Year 12.32% 10-Year 10.12%
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 PERFOR-MANCE 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 10-YEAR 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
Growth Fund MSCI EAFE
(Class C) Index
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11/30/1996 $10,000 $10,000
02/28/1997 $10,849 $ 9,689
05/31/1997 $11,775 $10,419
08/31/1997 $11,921 $10,344
11/30/1997 $12,153 $ 9,988
02/28/1998 $12,875 $11,219
05/31/1998 $14,869 $11,607
08/31/1998 $12,526 $10,357
11/30/1998 $12,875 $11,663
02/28/1999 $12,867 $11,807
05/31/1999 $13,254 $12,148
08/31/1999 $14,285 $13,053
11/30/1999 $17,288 $14,162
02/29/2000 $25,355 $14,850
05/31/2000 $20,133 $14,265
08/31/2000 $22,423 $14,334
11/30/2000 $17,834 $12,823
02/28/2001 $17,720 $12,281
05/31/2001 $17,436 $11,849
08/31/2001 $14,814 $10,882
11/30/2001 $14,061 $10,403
02/28/2002 $13,738 $ 9,980
05/31/2002 $14,237 $10,745
08/31/2002 $11,556 $ 9,284
11/30/2002 $10,881 $ 9,133
02/28/2003 $ 9,150 $ 8,265
05/31/2003 $10,996 $ 9,462
08/31/2003 $12,773 $10,174
11/30/2003 $14,736 $11,393
02/29/2004 $16,195 $12,748
05/31/2004 $15,532 $12,584
08/31/2004 $14,969 $12,523
11/30/2004 $17,144 $14,202
02/28/2005 $18,310 $15,187
05/31/2005 $17,420 $14,502
08/31/2005 $19,032 $15,539
11/30/2005 $19,487 $16,151
02/28/2006 $21,723 $17,906
05/31/2006 $22,218 $18,672
08/31/2006 $22,910 $19,390
11/30/2006 $25,433 $20,790
AVERAGE ANNUAL TOTAL RETURN OF CLASS C SHARES WITH SALES CHARGE OF THE FUND
AT 11/30/06
1-Year 29.51% 5-Year 12.58% 10-Year 9.78%
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
Growth Fund MSCI EAFE
(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
02/28/2006 $12,572 $14,580
05/31/2006 $12,866 $15,204
08/31/2006 $13,276 $15,789
11/30/2006 $14,757 $16,928
AVERAGE ANNUAL TOTAL RETURN OF CLASS N SHARES WITH SALES CHARGE OF THE FUND
AT 11/30/06
1-Year 30.05% 5-Year 13.12% Since Inception (3/1/01) 7.01%
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 PERFOR-MANCE 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 10-YEAR 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
Growth Fund MSCI EAFE
(Class Y) Index
------------- ---------
09/07/2005 $10,000 $10,000
11/30/2005 $10,014 $10,394
02/28/2006 $11,197 $11,523
05/31/2006 $11,485 $12,016
08/31/2006 $11,876 $12,478
11/30/2006 $13,230 $13,379
AVERAGE ANNUAL TOTAL RETURN OF CLASS Y SHARES OF THE FUND AT 11/30/06
1-Year 32.11% Since Inception (9/7/05) 25.54%
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 PERFOR-MANCE 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 10-YEAR 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 10-year return for Class B uses
Class A performance for the period after conversion. Class B shares are subject
to an annual 0.75% asset-based sales charge.
CLASS C shares of the Fund were first publicly offered on 3/25/96. Unless
otherwise noted, Class C returns include the contingent deferred sales charge of
1% for the 1-year period. Class C shares are subject to an annual 0.75%
asset-based sales charge.
CLASS N shares of the Fund were first publicly offered on 3/1/01. Class N shares
are offered only through retirement plans. Unless otherwise noted, Class N
returns include the contingent deferred sales charge of 1% for the 1-year
period. Class N shares are subject to an annual 0.25% asset-based sales charge.
17 | OPPENHEIMER INTERNATIONAL GROWTH FUND
NOTES
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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
- --------------------------------------------------------------------------------
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 in-tended 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, 2006.
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 assum-ed 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 hi-light your
ongoing costs only and do not reflect any transactional costs, such as front-end
or contingent deferred sales charges (loads), redemption fees, or a $12.00 fee
imposed annually on accounts valued at less than $500.00 (subject to exceptions
described in the Statement of Additional Information). Therefore, the
"hypothetical"
19 | OPPENHEIMER INTERNATIONAL GROWTH FUND
FUND EXPENSES
- --------------------------------------------------------------------------------
lines of the table are useful in comparing ongoing costs only, and will not help
you determine the relative total costs of owning different funds. In addition,
if these transactional costs were included, your costs would have been higher.
- --------------------------------------------------------------------------------
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT PAID DURING
VALUE VALUE 6 MONTHS ENDED
(6/1/06) (11/30/06) NOVEMBER 30, 2006
- --------------------------------------------------------------------------------
Class A Actual $1,000.00 $1,149.20 $ 6.92
- --------------------------------------------------------------------------------
Class A Hypothetical 1,000.00 1,018.65 6.50
- --------------------------------------------------------------------------------
Class B Actual 1,000.00 1,144.30 11.18
- --------------------------------------------------------------------------------
Class B Hypothetical 1,000.00 1,014.69 10.51
- --------------------------------------------------------------------------------
Class C Actual 1,000.00 1,144.70 10.97
- --------------------------------------------------------------------------------
Class C Hypothetical 1,000.00 1,014.89 10.31
- --------------------------------------------------------------------------------
Class N Actual 1,000.00 1,147.00 8.64
- --------------------------------------------------------------------------------
Class N Hypothetical 1,000.00 1,017.05 8.12
- --------------------------------------------------------------------------------
Class Y Actual 1,000.00 1,151.90 4.16
- --------------------------------------------------------------------------------
Class Y Hypothetical 1,000.00 1,021.21 3.91
Hypothetical assumes 5% annual return before expenses.
Expenses are equal to the Fund's annualized expense ratio for that class,
multiplied by the average account value over the period, multiplied by 183/365
(to reflect the one-half year period). Those annualized expense ratios,
excluding affiliated fund indirect expenses, based on the 6-month period ended
November 30, 2006 are as follows:
CLASS EXPENSE RATIOS
- --------------------------
Class A 1.28%
- --------------------------
Class B 2.07
- --------------------------
Class C 2.03
- --------------------------
Class N 1.60
- --------------------------
Class Y 0.77
The expense ratios reflect voluntary waivers or reimbursements of expenses by
the Fund's Manager and Transfer Agent that can be terminated at any time,
without advance notice. The "Financial Highlights" tables in the Fund's
financial statements, included in this report, also show the gross expense
ratios, without such waivers or reimbursements.
- --------------------------------------------------------------------------------
20 | OPPENHEIMER INTERNATIONAL GROWTH FUND
STATEMENT OF INVESTMENTS November 30, 2006
- --------------------------------------------------------------------------------
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
COMMON STOCKS--98.9%
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY--20.3%
- --------------------------------------------------------------------------------
AUTO COMPONENTS--2.0%
Continental AG 324,892 $ 37,024,668
- --------------------------------------------------------------------------------
AUTOMOBILES--3.0%
Bayerische Motoren
Werke AG 295,061 16,251,820
- --------------------------------------------------------------------------------
Ducati Motor
Holding SpA 1 4,363,100 5,084,861
- --------------------------------------------------------------------------------
Honda Motor Co. 333,846 11,772,675
- --------------------------------------------------------------------------------
Porsche AG,
Preference 3,887 4,514,560
- --------------------------------------------------------------------------------
Toyota Motor Corp. 285,565 17,176,486
---------------
54,800,402
- --------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE--1.4%
Carnival Corp. 322,960 15,821,810
- --------------------------------------------------------------------------------
William Hill plc 743,188 9,145,401
---------------
24,967,211
- --------------------------------------------------------------------------------
HOUSEHOLD DURABLES--2.2%
Daito Trust
Construction Co. Ltd. 157,387 8,144,340
- --------------------------------------------------------------------------------
Groupe SEB SA 112,181 15,896,604
- --------------------------------------------------------------------------------
Koninklijke (Royal)
Philips Electronics NV 212,310 7,898,115
- --------------------------------------------------------------------------------
Sony Corp. 223,845 8,826,390
---------------
40,765,449
- --------------------------------------------------------------------------------
INTERNET & CATALOG RETAIL--0.2%
Home Retail Group 1 414,374 3,323,398
- --------------------------------------------------------------------------------
MEDIA--4.3%
British Sky Broadcasting
Group plc 722,509 7,506,163
- --------------------------------------------------------------------------------
Gestevision
Telecinco SA 122,918 3,460,828
- --------------------------------------------------------------------------------
Grupo Televisa SA,
Sponsored GDR 544,340 14,305,255
- --------------------------------------------------------------------------------
Mediaset SpA 978,725 11,600,721
- --------------------------------------------------------------------------------
News Corp., Inc., Cl. B 148,639 3,208,466
- --------------------------------------------------------------------------------
Publishing &
Broadcasting Ltd. 250,513 4,114,903
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
MEDIA Continued
Societe Television
Francaise 1 166,956 $ 6,177,741
- --------------------------------------------------------------------------------
Vivendi SA 335,187 12,895,393
- --------------------------------------------------------------------------------
Zee Telefilms Ltd. 1 1,650,600 13,772,835
---------------
77,042,305
- --------------------------------------------------------------------------------
MULTILINE RETAIL--1.4%
Next plc 470,248 16,454,197
- --------------------------------------------------------------------------------
Pinault-Printemps-
Redoute SA 55,220 8,424,617
---------------
24,878,814
- --------------------------------------------------------------------------------
SPECIALTY RETAIL--2.8%
Carphone Warehouse
plc (The) 2,462,330 13,156,154
- --------------------------------------------------------------------------------
DSG International plc 427,824 1,639,946
- --------------------------------------------------------------------------------
Hennes & Mauritz
AB, B Shares 377,885 17,600,426
- --------------------------------------------------------------------------------
Industria de Diseno
Textil SA 367,440 18,622,851
---------------
51,019,377
- --------------------------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS--3.0%
Burberry Group plc 103,229 1,226,316
- --------------------------------------------------------------------------------
Compagnie
Financiere Richemont
AG, A Shares 196,612 10,590,207
- --------------------------------------------------------------------------------
Luxottica Group SpA 554,250 16,809,023
- --------------------------------------------------------------------------------
Puma AG 42,029 15,267,789
- --------------------------------------------------------------------------------
Swatch Group AG
(The), Cl. B 51,425 10,888,763
---------------
54,782,098
- --------------------------------------------------------------------------------
CONSUMER STAPLES--4.4%
- --------------------------------------------------------------------------------
BEVERAGES--2.1%
Carlsberg AS, Cl. B 112,100 10,694,684
- --------------------------------------------------------------------------------
Foster's Group Ltd. 652,896 3,446,027
- --------------------------------------------------------------------------------
Heineken NV 169,995 8,284,861
- --------------------------------------------------------------------------------
Pernod-Ricard SA 73,072 16,180,374
---------------
38,605,946
21 | OPPENHEIMER INTERNATIONAL GROWTH FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
FOOD & STAPLES RETAILING--0.5%
William Morrison
Supermarkets plc 998,639 $ 5,094,196
- --------------------------------------------------------------------------------
Woolworths Ltd. 193,129 3,352,114
---------------
8,446,310
- --------------------------------------------------------------------------------
FOOD PRODUCTS--1.0%
Cadbury
Schweppes plc 597,216 6,145,792
- --------------------------------------------------------------------------------
Koninklijke
Numico NV 91,249 4,721,115
- --------------------------------------------------------------------------------
Nestle SA 21,172 7,473,094
---------------
18,340,001
- --------------------------------------------------------------------------------
PERSONAL PRODUCTS--0.8%
L'Oreal SA 135,763 13,682,560
- --------------------------------------------------------------------------------
ENERGY--4.8%
- --------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES--1.7%
Technip SA 454,872 32,021,699
- --------------------------------------------------------------------------------
OIL & GAS--3.1%
BG Group plc 873,867 11,758,408
- --------------------------------------------------------------------------------
BP plc, ADR 198,495 13,513,540
- --------------------------------------------------------------------------------
Neste Oil Oyj 96,100 3,114,337
- --------------------------------------------------------------------------------
Total SA 285,044 20,293,485
- --------------------------------------------------------------------------------
Tsakos Energy
Navigation Ltd. 156,375 7,050,949
---------------
55,730,719
- --------------------------------------------------------------------------------
FINANCIALS--16.9%
- --------------------------------------------------------------------------------
CAPITAL MARKETS--4.4%
3i Group plc 653,433 12,510,934
- --------------------------------------------------------------------------------
Collins Stewart
Tullett plc 1,869,302 31,417,767
- --------------------------------------------------------------------------------
Credit Suisse Group 117,700 7,783,482
- --------------------------------------------------------------------------------
Mediobanca SpA 330,530 7,901,133
- --------------------------------------------------------------------------------
MLP AG 198,430 3,752,639
- --------------------------------------------------------------------------------
UBS AG 264,865 15,924,168
---------------
79,290,123
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
COMMERCIAL BANKS--8.4%
Anglo Irish
Bank Corp. 1,717,368 $ 32,637,475
- --------------------------------------------------------------------------------
Commerzbank AG 226,884 8,184,879
- --------------------------------------------------------------------------------
ICICI Bank Ltd.,
Sponsored ADR 491,390 19,119,985
- --------------------------------------------------------------------------------
Joyo Bank Ltd. (The) 1,592,600 9,053,007
- --------------------------------------------------------------------------------
Mitsubishi UFJ
Financial Group, Inc. 2,260 28,794,407
- --------------------------------------------------------------------------------
Royal Bank of
Scotland Group
plc (The) 654,939 23,714,840
- --------------------------------------------------------------------------------
Societe Generale,
Cl. A 102,223 17,125,388
- --------------------------------------------------------------------------------
UniCredito
Italiano SpA 2 991,085 8,557,754
- --------------------------------------------------------------------------------
UniCredito
Italiano SpA 2 533,395 4,605,723
---------------
151,793,458
- --------------------------------------------------------------------------------
INSURANCE--1.6%
Allianz SE 64,450 12,555,583
- --------------------------------------------------------------------------------
AMP Ltd. 1,073,219 8,035,320
- --------------------------------------------------------------------------------
Prudential plc 611,510 7,939,737
---------------
28,530,640
- --------------------------------------------------------------------------------
REAL ESTATE--0.7%
Solidere, GDR 74,732 1,168,061
- --------------------------------------------------------------------------------
Solidere, GDR 3 785,925 12,284,008
---------------
13,452,069
- --------------------------------------------------------------------------------
REAL ESTATE MANAGEMENT & DEVELOPMENT--1.3%
Sumitomo Realty &
Development Co. Ltd. 722,700 22,925,707
- --------------------------------------------------------------------------------
THRIFTS & MORTGAGE FINANCE--0.5%
Housing Development
Finance Corp. Ltd. 263,200 9,690,540
- --------------------------------------------------------------------------------
HEALTH CARE--12.6%
- --------------------------------------------------------------------------------
BIOTECHNOLOGY--3.5%
Marshall
Edwards, Inc. 1,4 1,717,263 5,357,861
22 | OPPENHEIMER INTERNATIONAL GROWTH FUND
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
BIOTECHNOLOGY Continued
Marshall
Edwards, Inc. 1,3 1,015,438 $ 3,168,167
- --------------------------------------------------------------------------------
NeuroSearch AS 1 358,387 12,638,653
- --------------------------------------------------------------------------------
NicOx SA 1 1,396,391 38,188,129
- --------------------------------------------------------------------------------
Santhera
Pharmaceuticals 1 47,200 3,387,183
---------------
62,739,993
- --------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SUPPLIES--5.4%
Art Advanced
Research Technologies,
Inc. 1,4,5 1,901,125 615,924
- --------------------------------------------------------------------------------
Art Advanced
Research Technologies,
Inc. 1,3,5 1,721,500 557,730
- --------------------------------------------------------------------------------
Art Advanced
Research Technologies,
Inc., Cv., Series 2 1,5 976,420 316,339
- --------------------------------------------------------------------------------
Essilor
International SA 113,713 12,213,278
- --------------------------------------------------------------------------------
Ortivus AB, Cl. B 1,5 1,638,150 4,448,765
- --------------------------------------------------------------------------------
Phonak Holding AG 129,271 9,670,515
- --------------------------------------------------------------------------------
Straumann
Holding AG 45,453 11,349,975
- --------------------------------------------------------------------------------
Synthes, Inc. 72,509 8,519,081
- --------------------------------------------------------------------------------
Terumo Corp. 281,480 11,428,932
- --------------------------------------------------------------------------------
William Demant
Holding AS 1 492,005 39,159,359
---------------
98,279,898
- --------------------------------------------------------------------------------
PHARMACEUTICALS--3.7%
Astellas Pharma, Inc. 107,705 4,686,651
- --------------------------------------------------------------------------------
GlaxoSmithKline plc 139,696 3,709,958
- --------------------------------------------------------------------------------
H. Lundbeck AS 96,195 2,443,861
- --------------------------------------------------------------------------------
Novogen Ltd. 1,5 6,618,140 13,365,921
- --------------------------------------------------------------------------------
Oxagen Ltd. 1,4 214,287 18,437
- --------------------------------------------------------------------------------
Roche Holdings AG 51,344 9,275,681
- --------------------------------------------------------------------------------
Sanofi-Aventis SA 144,507 12,688,307
- --------------------------------------------------------------------------------
Shionogi & Co. Ltd. 344,200 6,675,556
- --------------------------------------------------------------------------------
SkyePharma plc 1 3,990,248 1,784,477
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
PHARMACEUTICALS Continued
Takeda Pharmaceutical
Co. Ltd. 151,350 $ 9,884,722
- --------------------------------------------------------------------------------
Teva Pharmaceutical
Industries Ltd.,
Sponsored ADR 69,370 2,224,002
---------------
66,757,573
- --------------------------------------------------------------------------------
INDUSTRIALS--17.4%
- --------------------------------------------------------------------------------
AEROSPACE & DEFENSE--1.3%
Empresa Brasileira
de Aeronautica SA 2,219,446 23,055,585
- --------------------------------------------------------------------------------
AIRLINES--1.1%
easyJet plc 1 1,813,057 21,205,970
- --------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES--3.4%
Capita Group plc 3,268,730 36,850,399
- --------------------------------------------------------------------------------
Experian Group Ltd. 1 465,430 5,370,592
- --------------------------------------------------------------------------------
Prosegur Compania
de Seguridad SA 445,524 14,461,578
- --------------------------------------------------------------------------------
Randstad
Holding NV 72,153 4,646,572
---------------
61,329,141
- --------------------------------------------------------------------------------
CONSTRUCTION & ENGINEERING--1.3%
Koninklijke Boskalis
Westminster NV 126,126 9,437,443
- --------------------------------------------------------------------------------
Leighton
Holdings Ltd. 384,202 6,189,620
- --------------------------------------------------------------------------------
Vinci SA 64,694 8,126,483
---------------
23,753,546
- --------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--4.6%
ABB Ltd. 2,758,174 44,534,936
- --------------------------------------------------------------------------------
Alstom 1 165,160 19,193,460
- --------------------------------------------------------------------------------
Ceres Power
Holdings plc 1 1,708,500 7,220,764
- --------------------------------------------------------------------------------
Ushio, Inc. 603,350 12,013,893
---------------
82,963,053
- --------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES--0.8%
Siemens AG 154,319 14,714,760
23 | OPPENHEIMER INTERNATIONAL GROWTH FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
LIFE SCIENCES TOOLS & SERVICES--0.3%
BTG plc 1 2,151,961 $ 5,731,964
- --------------------------------------------------------------------------------
MACHINERY--2.9%
Aalberts
Industries NV 391,730 31,775,633
- --------------------------------------------------------------------------------
Hyundai Heavy
Industries Co. Ltd. 93,109 13,525,276
- --------------------------------------------------------------------------------
Takeuchi Mfg
Co. Ltd. 177,429 7,541,365
---------------
52,842,274
- --------------------------------------------------------------------------------
TRADING COMPANIES & DISTRIBUTORS--1.7%
Bunzl plc 989,635 12,790,883
- --------------------------------------------------------------------------------
Wolseley plc 746,060 17,504,899
---------------
30,295,782
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY--15.6%
- --------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT--3.9%
Nokia Oyj 327,225 6,611,008
- --------------------------------------------------------------------------------
Tandberg ASA 1,693,805 23,373,068
- --------------------------------------------------------------------------------
Telefonaktiebolaget
LM Ericsson,
B Shares 10,631,730 41,282,500
---------------
71,266,576
- --------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS--1.4%
Benq Corp. 1 10,017,000 5,513,377
- --------------------------------------------------------------------------------
Logitech
International SA 1 642,287 18,892,370
---------------
24,405,747
- --------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS--3.9%
Hoya Corp. 458,175 17,989,522
- --------------------------------------------------------------------------------
Keyence Corp. 41,574 9,546,343
- --------------------------------------------------------------------------------
NEOMAX Co. Ltd. 541,765 11,614,259
- --------------------------------------------------------------------------------
Nidec Corp. 168,585 13,107,975
- --------------------------------------------------------------------------------
Nippon Electric
Glass Co. Ltd. 251,650 5,444,031
- --------------------------------------------------------------------------------
Omron Corp. 314,518 8,444,386
- --------------------------------------------------------------------------------
Phoenix Mecano AG 9,942 4,392,765
---------------
70,539,281
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES--0.6%
United Internet AG 349,448 $ 5,326,711
- --------------------------------------------------------------------------------
Yahoo! Japan Corp. 16,058 6,297,065
---------------
11,623,776
- --------------------------------------------------------------------------------
IT SERVICES--1.2%
Infosys
Technologies Ltd. 430,178 21,042,324
- --------------------------------------------------------------------------------
OFFICE ELECTRONICS--1.1%
Canon, Inc. 359,860 18,929,440
- --------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT--0 8%
ASM
International NV 1 398,795 8,402,611
- --------------------------------------------------------------------------------
Samsung
Electronics Co. 9,816 6,738,697
---------------
15,141,308
- --------------------------------------------------------------------------------
SOFTWARE--2.7%
Autonomy Corp. plc 1 1,419,914 14,402,619
- --------------------------------------------------------------------------------
Business Objects SA 1 113,302 4,386,106
- --------------------------------------------------------------------------------
Enix Corp. 190,620 4,808,521
- --------------------------------------------------------------------------------
Nintendo Co. Ltd. 71,525 17,054,037
- --------------------------------------------------------------------------------
Sage Group plc (The) 1,682,410 8,474,722
---------------
49,126,005
- --------------------------------------------------------------------------------
MATERIALS--4.9%
- --------------------------------------------------------------------------------
CHEMICALS--1.9%
Filtrona plc 1,309,442 7,085,973
- --------------------------------------------------------------------------------
Nufarm Ltd. 678,055 5,108,776
- --------------------------------------------------------------------------------
Sika AG 1 9,310 13,369,918
- --------------------------------------------------------------------------------
Syngenta AG 1 48,985 8,616,520
---------------
34,181,187
- --------------------------------------------------------------------------------
METALS & MINING--3.0%
Companhia Vale do
Rio Doce, Sponsored
ADR 802,400 18,896,520
- --------------------------------------------------------------------------------
Impala Platinum
Holdings Ltd. 909,720 22,984,271
- --------------------------------------------------------------------------------
Rio Tinto plc 259,142 13,830,484
---------------
55,711,275
24 | OPPENHEIMER INTERNATIONAL GROWTH FUND
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES--1.4%
- --------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES--1.4%
KDDI Corp. 1,632 $ 10,912,427
- --------------------------------------------------------------------------------
SK Telecom Co. Ltd.,
ADR 123,154 3,193,383
- --------------------------------------------------------------------------------
Vodafone Group plc 4,250,885 11,239,096
---------------
25,344,906
- --------------------------------------------------------------------------------
UTILITIES--0.6%
- --------------------------------------------------------------------------------
ELECTRIC UTILITIES--0.6%
Fortum Oyj 381,380 11,147,092
---------------
Total Common Stocks
(Cost $1,096,401,177) 1,793,241,950
- --------------------------------------------------------------------------------
PREFERRED STOCKS--0.5%
- --------------------------------------------------------------------------------
Art Advanced Research Technologies, Inc.,
Preference 1,5 3,124,013 1,012,114
- --------------------------------------------------------------------------------
Ceres Group, Inc.:
$4.00 Cv., Series C-1 1,4 64,547 419,556
Cv., Series C 1,4 600,000 3,900,000
Cv., Series D 1,4 459,800 2,988,700
---------------
Total Preferred Stocks
(Cost $8,340,347) 8,320,370
VALUE
UNITS SEE NOTE 1
- --------------------------------------------------------------------------------
RIGHTS, WARRANTS AND CERTIFICATES--0.0%
- --------------------------------------------------------------------------------
Marshall Edwards,
Inc. Wts., Exp. 7/10/11 1
(Cost $0) 355,403 $ 388,523
SHARES
- --------------------------------------------------------------------------------
MONEY MARKET FUND--0.6%
- --------------------------------------------------------------------------------
Oppenheimer Institutional
Money Market Fund,
Cl. E, 5.24% 5,6
(Cost $10,652,417) 10,652,417 10,652,417
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS,
AT VALUE
(COST $1,115,393,941) 100.0% 1,812,603,260
- --------------------------------------------------------------------------------
OTHER ASSETS
NET OF LIABILITIES 0.0 151,540
--------------------------------
NET ASSETS 100.0% $1,812,754,800
================================
25 | OPPENHEIMER INTERNATIONAL GROWTH FUND
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
FOOTNOTES TO STATEMENT OF INVESTMENTS
1. Non-income producing security.
2. The Fund holds securities which have been issued by the same entity and that
trade on separate exchanges.
3. 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 $16,009,905 or 0.88% of the Fund's net
assets as of November 30, 2006.
4. Illiquid or restricted security. The aggregate value of illiquid or
restricted securities as of November 30, 2006 was $13,300,478, which represents
0.73% of the Fund's net assets, all of which is considered restricted. See Note
6 of accompanying Notes.
5. 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, 2006. Transactions during the period in
which the issuer was an affiliate are as follows:
SHARES GROSS GROSS SHARES
NOVEMBER 30, 2005 ADDITIONS REDUCTIONS NOVEMBER 30, 2006
- -----------------------------------------------------------------------------------------------------------------------------
Art Advanced Research Technologies, Inc. 1,901,125 -- -- 1,901,125
Art Advanced Research Technologies, Inc. 389,400 1,332,100 -- 1,721,500
Art Advanced Research Technologies, Inc., Cv., Series 2 -- 976,420 -- 976,420
Art Advanced Research Technologies, Inc., Preference 3,096,218 27,795 -- 3,124,013
Novogen Ltd. 6,204,740 413,400 -- 6,618,140
Oppenheimer Institutional Money Market Fund, Cl. E, 5.24%* -- 57,767,194 47,114,777 10,652,417
Ortivus AB, Cl. B 710,800 927,350 -- 1,638,150
VALUE DIVIDEND
SEE NOTE 1 INCOME
- -----------------------------------------------------------------------------------------------------------------------------
Art Advanced Research Technologies, Inc. $ 615,924 $ --
Art Advanced Research Technologies, Inc. 557,730 --
Art Advanced Research Technologies, Inc., Cv., Series 2 316,339 --
Art Advanced Research Technologies, Inc., Preference 1,012,114 --
Novogen Ltd. 13,365,921 --
Oppenheimer Institutional Money Market Fund, Cl. E, 5.24%* 10,652,417 90,479
Ortivus AB, Cl. B 4,448,765 --
---------------------------------
$ 30,969,210 $ 90,479
=================================
* The money market fund and the Fund are affiliated by having the same
investment advisor.
6. Rate shown is the 7-day yield as of November 30, 2006.
26 | OPPENHEIMER INTERNATIONAL GROWTH FUND
DISTRIBUTION OF INVESTMENTS REPRESENTING GEOGRAPHIC HOLDINGS, AS A PERCENTAGE OF
TOTAL INVESTMENTS AT VALUE, IS AS FOLLOWS:
GEOGRAPHIC HOLDINGS VALUE PERCENT
- --------------------------------------------------------------------------------
United Kingdom $ 331,768,026 18.3%
Japan 283,072,137 15.6
France 237,493,624 13.1
Switzerland 184,668,658 10.2
Germany 117,593,409 6.5
The Netherlands 75,166,350 4.1
Denmark 64,936,557 3.6
India 63,625,684 3.5
Sweden 63,331,691 3.5
Italy 54,559,215 3.0
Australia 46,821,147 2.6
United States 42,697,034 2.4
Brazil 41,952,105 2.3
Spain 36,545,257 2.0
Ireland 32,637,475 1.8
Korea, Republic of South 23,457,356 1.3
Norway 23,373,068 1.3
South Africa 22,984,271 1.3
Finland 20,872,437 1.2
Mexico 14,305,255 0.8
Lebanon 13,452,069 0.7
Bermuda 7,050,949 0.4
Taiwan 5,513,377 0.3
Canada 2,502,107 0.1
Israel 2,224,002 0.1
----------------------------------
Total $ 1,812,603,260 100.0%
==================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
27 | OPPENHEIMER INTERNATIONAL GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES November 30, 2006
- --------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
ASSETS
- ----------------------------------------------------------------------------------------------------------
Investments, at value--see accompanying statement of investments:
Unaffiliated companies (cost $1,070,101,347) $ 1,781,634,050
Affiliated companies (cost $45,292,594) 30,969,210
------------------
1,812,603,260
- ----------------------------------------------------------------------------------------------------------
Cash 2,134,642
- ----------------------------------------------------------------------------------------------------------
Unrealized appreciation on foreign currency contracts 1,961
- ----------------------------------------------------------------------------------------------------------
Receivables and other assets:
Shares of beneficial interest sold 4,893,477
Dividends 2,161,620
Other 43,781
------------------
Total assets 1,821,838,741
- ----------------------------------------------------------------------------------------------------------
LIABILITIES
- ----------------------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 5,422,092
Shares of beneficial interest redeemed 2,301,242
Distribution and service plan fees 605,647
Transfer and shareholder servicing agent fees 299,208
Trustees' compensation 195,583
Shareholder communications 123,499
Other 136,670
------------------
Total liabilities 9,083,941
- ----------------------------------------------------------------------------------------------------------
NET ASSETS $ 1,812,754,800
==================
- ----------------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- ----------------------------------------------------------------------------------------------------------
Paid-in capital $ 1,417,294,706
- ----------------------------------------------------------------------------------------------------------
Accumulated net investment loss (8,621,389)
- ----------------------------------------------------------------------------------------------------------
Accumulated net realized loss on investments and foreign currency transactions (293,169,645)
- ----------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of assets and liabilities
denominated in foreign currencies 697,251,128
------------------
NET ASSETS $ 1,812,754,800
==================
28 | OPPENHEIMER INTERNATIONAL GROWTH FUND
- ----------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
- ----------------------------------------------------------------------------------------------------------
Class A Shares:
Net asset value and redemption price per share (based on net assets of $1,115,663,968 and
41,275,582 shares of beneficial interest outstanding) $ 27.03
Maximum offering price per share (net asset value plus sales charge of 5.75% of offering price) $ 28.68
- ----------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $167,382,721
and 6,514,414 shares of beneficial interest outstanding) $ 25.69
- ----------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $220,735,412
and 8,584,345 shares of beneficial interest outstanding) $ 25.71
- ----------------------------------------------------------------------------------------------------------
Class N Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $54,908,267
and 2,063,160 shares of beneficial interest outstanding) $ 26.61
- ----------------------------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based on net assets of
$254,064,432 and 9,385,449 shares of beneficial interest outstanding) $ 27.07
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
29 | OPPENHEIMER INTERNATIONAL GROWTH FUND
STATEMENT OF OPERATIONS For the Year Ended November 30, 2006
- --------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------
INVESTMENT INCOME
- ---------------------------------------------------------------------------------------
Dividends:
Unaffiliated companies (net of foreign withholding taxes of $1,029,326) $ 23,531,899
Affiliated companies 90,479
- ---------------------------------------------------------------------------------------
Interest 782,552
- ---------------------------------------------------------------------------------------
Portfolio lending fees 456,840
- ---------------------------------------------------------------------------------------
Other income 33,739
-------------
Total investment income 24,895,509
- ---------------------------------------------------------------------------------------
EXPENSES
- ---------------------------------------------------------------------------------------
Management fees 10,870,919
- ---------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 2,265,286
Class B 1,653,021
Class C 1,880,828
Class N 221,986
- ---------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 2,274,040
Class B 426,862
Class C 433,068
Class N 161,046
Class Y 10,519
- ---------------------------------------------------------------------------------------
Shareholder communications:
Class A 190,407
Class B 75,555
Class C 51,838
Class N 5,899
Class Y 3,456
- ---------------------------------------------------------------------------------------
Custodian fees and expenses 292,608
- ---------------------------------------------------------------------------------------
Trustees' compensation 41,327
- ---------------------------------------------------------------------------------------
Other 90,242
-------------
Total expenses 20,948,907
Less reduction to custodian expenses (245)
Less waivers and reimbursements of expenses (11,058)
-------------
Net expenses 20,937,604
- ---------------------------------------------------------------------------------------
NET INVESTMENT INCOME 3,957,905
30 | OPPENHEIMER INTERNATIONAL GROWTH FUND
- ---------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
- ---------------------------------------------------------------------------------------
Net realized gain on:
Investments $ 11,308,854
Foreign currency transactions 6,664,733
-------------
Net realized gain 17,973,587
- ---------------------------------------------------------------------------------------
Net change in unrealized appreciation on:
Investments (net of foreign capital gains tax of $13,305) 283,177,671
Translation of assets and liabilities denominated in foreign currencies 82,375,881
-------------
Net change in unrealized appreciation 365,553,552
- ---------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $387,485,044
=============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
31 | OPPENHEIMER INTERNATIONAL GROWTH FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
YEAR ENDED NOVEMBER 30, 2006 2005
- ----------------------------------------------------------------------------------------------
OPERATIONS
- ----------------------------------------------------------------------------------------------
Net investment income $ 3,957,905 $ 3,140,881
- ----------------------------------------------------------------------------------------------
Net realized gain 17,973,587 70,324,013
- ----------------------------------------------------------------------------------------------
Net change in unrealized appreciation 365,553,552 67,940,472
-----------------------------------
Net increase in net assets resulting from operations 387,485,044 141,405,366
- ----------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
- ----------------------------------------------------------------------------------------------
Dividends from net investment income:
Class A (5,755,892) (4,399,289)
Class B -- --
Class C (90,780) --
Class N (180,972) (132,170)
Class Y (125,384) --
-----------------------------------
(6,153,028) (4,531,459)
- ----------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
- ----------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
beneficial interest transactions:
Class A 81,182,535 8,999,445
Class B (36,542,935) (27,375,157)
Class C 11,827,417 (4,967,085)
Class N 6,042,568 11,561
Class Y 218,286,911 6,636,879
-----------------------------------
280,796,496 (16,694,357)
- ----------------------------------------------------------------------------------------------
NET ASSETS
- ----------------------------------------------------------------------------------------------
Total increase 662,128,512 120,179,550
- ----------------------------------------------------------------------------------------------
Beginning of period 1,150,626,288 1,030,446,738
-----------------------------------
End of period (including accumulated net investment loss
of $8,621,389 and $7,576,528, respectively) $ 1,812,754,800 $ 1,150,626,288
===================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
32 | OPPENHEIMER INTERNATIONAL GROWTH FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
CLASS A YEAR ENDED NOVEMBER 30, 2006 2005 2004 2003 2002
- --------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 20.70 $ 18.19 $ 15.72 $ 11.63 $ 14.96
- --------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .10 1 .10 1 .04 1 .01 .12
Net realized and unrealized gain (loss) 6.38 2.53 2.63 4.19 (3.41)
------------------------------------------------------------------------
Total from investment operations 6.48 2.63 2.67 4.20 (3.29)
- --------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.15) (.12) (.20) (.11) (.04)
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 27.03 $ 20.70 $ 18.19 $ 15.72 $ 11.63
========================================================================
- --------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 31.49% 14.51% 17.18% 36.55% (22.04)%
- --------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $1,115,664 $ 787,600 $ 686,313 $ 528,363 $ 358,097
- --------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 924,048 $ 717,536 $ 598,265 $ 390,315 $ 512,319
- --------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 0.40% 0.52% 0.22% 0.18% 0.62%
Total expenses 1.28% 4 1.49% 1.61% 1.88% 1.64%
Expenses after payments and waivers and
reduction to custodian expenses 1.28% 1.41% 1.43% 1.42% 1.56%
- --------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 12% 26% 37% 61% 46%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on fund distributions or the redemption of fund shares.
3. Annualized for periods of less than one full year.
4. Expenses including indirect expenses from affiliated fund were as follows:
Year Ended November 30, 2006 1.28%
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
33 | OPPENHEIMER INTERNATIONAL GROWTH FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
CLASS B YEAR ENDED NOVEMBER 30, 2006 2005 2004 2003 2002
- --------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 19.69 $ 17.33 $ 15.00 $ 11.10 $ 14.34
- --------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.08) 1 (.05) 1 (.09) 1 (.13) (.03)
Net realized and unrealized gain (loss) 6.08 2.41 2.51 4.06 (3.21)
------------------------------------------------------------------------
Total from investment operations 6.00 2.36 2.42 3.93 (3.24)
- --------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- -- (.09) (.03) --
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 25.69 $ 19.69 $ 17.33 $ 15.00 $ 11.10
========================================================================
- --------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 30.47% 13.62% 16.25% 35.49% (22.59)%
- --------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 167,383 $ 160,347 $ 166,973 $ 174,959 $ 161,074
- --------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 165,575 $ 162,953 $ 167,441 $ 148,838 $ 200,304
- --------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment loss (0.37)% (0.25)% (0.57)% (0.55)% (0.12)%
Total expenses 2.07% 4 2.19% 2.24% 2.48% 2.39%
Expenses after payments and waivers and
reduction to custodian expenses 2.07% 2.19% 2.21% 2.19% 2.31%
- --------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 12% 26% 37% 61% 46%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on fund distributions or the redemption of fund shares.
3. Annualized for periods of less than one full year.
4. Expenses including indirect expenses from affiliated fund were as follows:
Year Ended November 30, 2006 2.07%
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
34 | OPPENHEIMER INTERNATIONAL GROWTH FUND
CLASS C YEAR ENDED NOVEMBER 30, 2006 2005 2004 2003 2002
- --------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 19.71 $ 17.34 $ 15.01 $ 11.12 $ 14.37
- --------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.08) 1 (.04) 1 (.08) 1 (.08) (.01)
Net realized and unrealized gain (loss) 6.09 2.41 2.52 4.01 (3.24)
------------------------------------------------------------------------
Total from investment operations 6.01 2.37 2.44 3.93 (3.25)
- --------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.01) -- (.11) (.04) --
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 25.71 $ 19.71 $ 17.34 $ 15.01 $ 11.12
========================================================================
- --------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 30.51% 13.67% 16.34% 35.44% (22.62)%
- --------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 220,735 $ 158,968 $ 144,529 $ 116,659 $ 89,456
- --------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 188,347 $ 151,790 $ 131,125 $ 90,532 $ 106,551
- --------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment loss (0.34)% (0.20)% (0.52)% (0.59)% (0.12)%
Total expenses 2.03% 4 2.13% 2.16% 2.38% 2.37%
Expenses after payments and waivers and
reduction to custodian expenses 2.03% 2.13% 2.16% 2.22% 2.29%
- --------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 12% 26% 37% 61% 46%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on fund distributions or the redemption of fund shares.
3. Annualized for periods of less than one full year.
4. Expenses including indirect expenses from affiliated fund were as follows:
Year Ended November 30, 2006 2.03%
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
35 | OPPENHEIMER INTERNATIONAL GROWTH FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
CLASS N YEAR ENDED NOVEMBER 30, 2006 2005 2004 2003 2002
- ---------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 20.40 $ 17.94 $ 15.51 $ 11.55 $ 14.93
- ---------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .01 1 .05 1 -- 1,2 .02 .09
Net realized and unrealized gain (loss) 6.30 2.49 2.60 4.08 (3.38)
-------------------------------------------------------------------------
Total from investment operations 6.31 2.54 2.60 4.10 (3.29)
- ---------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.10) (.08) (.17) (.14) (.09)
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 26.61 $ 20.40 $ 17.94 $ 15.51 $ 11.55
=========================================================================
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 31.05% 14.19% 16.94% 36.01% (22.18)%
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ---------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 54,908 $ 36,980 $ 32,631 $ 21,180 $ 11,833
- ---------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 44,538 $ 33,383 $ 26,738 $ 14,722 $ 9,195
- ---------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income (loss) 0.06% 0.26% (0.02)% (0.16)% 0.19%
Total expenses 1.64% 5 1.77% 1.77% 1.90% 1.80%
Expenses after payments and waivers and
reduction to custodian expenses 1.62% 1.67% 1.66% 1.73% 1.72%
- ---------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 12% 26% 37% 61% 46%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Less than $0.005 per share.
3. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on fund distributions or the redemption of fund shares.
4. Annualized for periods of less than one full year.
5. Expenses including indirect expenses from affiliated fund were as follows:
Year Ended November 30, 2006 1.64%
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
36 | OPPENHEIMER INTERNATIONAL GROWTH FUND
CLASS Y YEAR ENDED NOVEMBER 30, 2006 2005 1
- --------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- --------------------------------------------------------------------------------
Net asset value, beginning of period $ 20.74 $ 20.71
- --------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income 2 .25 .05
Net realized and unrealized gain (loss) 6.34 (.02)
-------------------------------
Total from investment operations 6.59 .03
- --------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.26) --
- --------------------------------------------------------------------------------
Net asset value, end of period $ 27.07 $ 20.74
===============================
- --------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 32.11% 0.15%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 254,065 $ 6,731
- --------------------------------------------------------------------------------
Average net assets (in thousands) $ 142,489 $ 2,071
- --------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income 1.03% 0.98%
Total expenses 0.77% 5,6 0.85% 6
- --------------------------------------------------------------------------------
Portfolio turnover rate 12% 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. Expenses including indirect expenses from affiliated fund were as follows:
Year Ended November 30, 2006 0.77%
6. Reduction to custodian expenses less than 0.01%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
37 | 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(R) 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
ex-change on which the security is traded, as identified by the portfolio
pricing service, prior to the time when the Fund's assets are valued. In the
absence of a sale, the security is valued at the official closing price on the
principal exchange. Corporate, government and municipal debt instruments having
a remaining maturity in excess of sixty days and all mortgage-backed securities
will be valued at the mean between the "bid" and "asked" prices. Futures
contracts traded on a commodities or futures exchange will be valued at the
final settlement
38 | OPPENHEIMER INTERNATIONAL GROWTH FUND
price or official closing price on the principal exchange as reported by such
principal ex-change at its trading session ending at, or most recently prior to,
the time when the Fund's assets are valued. Options are valued daily based upon
the last sale price on the principal exchange on which the option is traded.
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. Investments in open-end registered
investment companies (including affiliated funds) are valued at that fund's net
asset value. 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.
- --------------------------------------------------------------------------------
AFFILIATED FUNDS. The Fund is permitted to invest daily available cash balances
in affiliated money market funds. Each day, the Fund invests the available cash
in Class E shares of Oppenheimer Institutional Money Market Fund ("IMMF") which
seeks current income and stability of principal. IMMF is a registered open-end
management investment company, regulated as a money market fund under the
Investment Company Act of 1940, as amended. The Manager is also the investment
advisor of IMMF. The Fund's investment in IMMF is included in the Statement of
Investments. As a shareholder, the Fund is subject to its proportional share of
IMMF's Class E expenses, including its management fee. The
39 | OPPENHEIMER INTERNATIONAL GROWTH FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
Manager will waive fees and/or reimburse Fund expenses in an amount equal to the
indirect management fees incurred through the Fund's investment in IMMF.
- --------------------------------------------------------------------------------
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 1,2,3,4 TAX PURPOSES
---------------------------------------------------------------------------
$12,549,170 $-- $283,517,352 $666,618,805
1. As of November 30, 2006, the Fund had $283,432,384 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, 2006,
details of the capital loss carryforwards were as follows:
EXPIRING
--------------------------
2010 $107,818,404
2011 175,613,980
------------
TOTAL $283,432,384
============
2. The Fund had $84,968 of post-October passive foreign investment company
losses which were deferred.
3. During the fiscal year ended November 30, 2006, the Fund utilized $16,226,751
of capital loss carryforward to offset capital gains realized in that fiscal
year.
4. 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.
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
40 | OPPENHEIMER INTERNATIONAL GROWTH FUND
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, 2006.
Net assets of the Fund were unaffected by the reclassifications.
REDUCTION TO INCREASE TO
ACCUMULATED ACCUMULATED NET
NET INVESTMENT REALIZED LOSS
LOSS ON INVESTMENTS
------------------------------------
$1,150,262 $1,150,262
The tax character of distributions paid during the years ended November 30, 2006
and November 30, 2005 was as follows:
YEAR ENDED YEAR ENDED
NOVEMBER 30, 2006 NOVEMBER 30, 2005
-----------------------------------------------------------------
Distributions paid from:
Ordinary income $6,153,028 $4,531,459
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, 2006 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 $1,146,024,303
Federal tax cost of other investments 265,969
--------------
Total federal tax cost $1,146,290,272
==============
Gross unrealized appreciation $ 698,489,717
Gross unrealized depreciation (31,870,912)
--------------
Net unrealized appreciation $ 666,618,805
==============
Certain foreign countries impose a tax on capital gains which is accrued by the
Fund based on unrealized appreciation, if any, on affected securities. The tax
is paid when the gain is realized.
- --------------------------------------------------------------------------------
TRUSTEES' COMPENSATION. The Fund has adopted an unfunded retirement plan (the
"Plan") for the Fund's independent trustees. Benefits are based on years of
service and fees paid to each trustee during their period of service. The Plan
was frozen with respect to adding new participants effective December 31, 2006
(the "Freeze Date") and existing Plan Participants as of the Freeze Date will
continue to receive accrued benefits under the Plan. Active independent trustees
as of the Freeze Date have each elected a distribution method with respect to
their benefits under the Plan. During the year ended November 30, 2006, the
Fund's projected benefit obligations were increased by $10,039 and payments of
$13,332 were made to retired trustees, resulting in an accumulated liability of
$149,806 as of November 30, 2006.
The Board of Trustees has adopted a compensation deferral plan for
independent trustees that enables trustees to elect to defer receipt of all or a
portion of the annual
41 | OPPENHEIMER INTERNATIONAL GROWTH FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
compensation they are entitled to receive from the Fund. For purposes of
determining the amount owed to the Trustee under the plan, deferred amounts are
treated as though equal dollar amounts had been invested in shares of the Fund
or in other Oppenheimer funds selected by the Trustee. The Fund purchases shares
of the funds selected for deferral by the Trustee in amounts equal to his or her
deemed investment, resulting in a Fund asset equal to the deferred compensation
liability. Such assets are included as a component of "Other" within the asset
section of the Statement of Assets and Liabilities. Deferral of trustees' fees
under the plan will not affect the net assets of the Fund, and will not
materially affect the Fund's assets, liabilities or net investment income per
share. Amounts will be deferred until distributed in accordance to the Plan.
- --------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations,
are recorded on the ex-dividend date. Income and capital gain distributions, if
any, are declared and paid annually.
- --------------------------------------------------------------------------------
INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date or upon
ex-dividend notification in the case of certain foreign dividends where the
ex-dividend date may have passed. Non-cash dividends included in dividend
income, if any, are recorded at the fair market value of the securities
received. Interest income, which includes accretion of discount and amortization
of premium, is accrued as earned.
- --------------------------------------------------------------------------------
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, to the extent they are not
offset by positive cash balances maintained by the Fund, 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.
- --------------------------------------------------------------------------------
INDEMNIFICATIONS. The Fund's organizational documents provide current and former
trustees and officers with a limited indemnification against liabilities arising
in connection with the performance of their duties to the Fund. In the normal
course of business, the Fund may also enter into contracts that provide general
indemnifications. The Fund's maximum exposure under these arrangements is
unknown as this would be dependent on future claims that may be made against the
Fund. The risk of material loss from such claims is considered remote.
42 | OPPENHEIMER INTERNATIONAL GROWTH FUND
- --------------------------------------------------------------------------------
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, 2006 YEAR ENDED NOVEMBER 30, 2005 1
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------------
CLASS A
Sold 14,608,631 $ 347,230,645 13,981,578 $ 271,359,569
Dividends and/or
distributions reinvested 231,096 4,968,552 203,071 3,746,661
Redeemed (11,611,816) (271,016,662) 2 (13,863,240) (266,106,785) 3
-------------------------------------------------------------------
Net increase 3,227,911 $ 81,182,535 321,409 $ 8,999,445
===================================================================
- ---------------------------------------------------------------------------------------------------
CLASS B
Sold 1,567,352 $ 35,450,476 1,302,301 $ 23,985,553
Dividends and/or
distributions reinvested -- -- -- --
Redeemed (3,194,519) (71,993,411) 2 (2,793,027) (51,360,710) 3
-------------------------------------------------------------------
Net decrease (1,627,167) $ (36,542,935) (1,490,726) $ (27,375,157)
===================================================================
- ---------------------------------------------------------------------------------------------------
CLASS C
Sold 2,201,244 $ 49,847,330 1,548,621 $ 28,511,932
Dividends and/or
distributions reinvested 3,708 76,379 -- --
Redeemed (1,685,022) (38,096,292) 2 (1,818,883) (33,479,017) 3
-------------------------------------------------------------------
Net increase (decrease) 519,930 $ 11,827,417 (270,262) $ (4,967,085)
===================================================================
- ---------------------------------------------------------------------------------------------------
CLASS N
Sold 957,911 $ 22,435,159 807,614 $ 15,360,583
Dividends and/or
distributions reinvested 8,011 170,075 6,864 125,137
Redeemed (715,044) (16,562,666) 2 (820,678) (15,474,159) 3
-------------------------------------------------------------------
Net increase (decrease) 250,878 $ 6,042,568 (6,200) $11,561
===================================================================
- ---------------------------------------------------------------------------------------------------
CLASS Y
Sold 12,839,289 $ 306,975,962 334,146 $ 6,835,178
Dividends and/or
distributions reinvested 5,850 125,371 -- --
Redeemed (3,784,278) (88,814,422) 2 (9,558) (198,299) 3
-------------------------------------------------------------------
Net increase 9,060,861 $ 218,286,911 324,588 $ 6,636,879
===================================================================
43 | OPPENHEIMER INTERNATIONAL GROWTH FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
2. SHARES OF BENEFICIAL INTEREST Continued
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 $7,906, $1,416, $1,611, $381 and $1,219 for Class
A, Class B, Class C, Class N and Class Y, respectively.
3. 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. PURCHASES AND SALES OF SECURITIES
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations and money market funds, for the year ended November
30, 2006, were as follows:
PURCHASES SALES
- ---------------------------------------------------------------------
Investment securities $458,576,059 $168,455,706
- --------------------------------------------------------------------------------
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 average net assets as shown in the following table:
FEE SCHEDULE
-------------------------------------
Up to $250 million 0.80%
Next $250 million 0.77
Next $500 million 0.75
Next $1 billion 0.69
Over $2.0 billion 0.67
- --------------------------------------------------------------------------------
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, 2006, the Fund paid
$3,283,542 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
periodically 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
44 | OPPENHEIMER INTERNATIONAL GROWTH FUND
institutions periodically for providing personal services and maintenance of
accounts of their customers that hold Class A shares. Any unreimbursed expenses
the Distributor incurs with respect to Class A shares in any fiscal year cannot
be recovered in subsequent periods. Fees incurred by the Fund under the plan are
detailed in the Statement of Operations.
- --------------------------------------------------------------------------------
DISTRIBUTION AND SERVICE PLANS FOR CLASS B, CLASS C AND CLASS N SHARES. The Fund
has adopted Distribution and Service Plans for Class B, Class C and Class N
shares to compensate the Distributor for its services in connection with the
distribution of those shares and servicing accounts. Under the plans, the Fund
pays the Distributor an annual asset-based sales charge of 0.75% on Class B and
Class C shares and 0.25% on Class N shares. The Distributor also receives a
service fee of up to 0.25% per year under each plan. If either the Class B,
Class C or Class N plan is terminated by the Fund or by the shareholders of a
class, the Board of Trustees and its independent trustees must determine whether
the Distributor shall be entitled to payment from the Fund of all or a portion
of the service fee and/or asset-based sales charge in respect to shares sold
prior to the effective date of such termination. The Distributor determines its
uncompensated expenses under the plan at calendar quarter ends. The
Distributor's aggregate uncompensated expenses under the plan at September 30,
2006 for Class B, Class C and Class N shares were $2,620,069, $3,284,343 and
$350,577, respectively. Fees incurred by the Fund under the plans are detailed
in the Statement of Operations.
- --------------------------------------------------------------------------------
SALES CHARGES. Front-end sales charges and contingent deferred sales charges
(CDSC) do not represent expenses of the Fund. They are deducted from the
proceeds of sales of Fund shares prior to investment or from redemption proceeds
prior to remittance, as applicable. The sales charges retained by the
Distributor from the sale of shares and the CDSC retained by the Distributor on
the redemption of shares is shown in the following table 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, 2006 $409,140 $5,472 $205,648 $12,624 $4,616
- --------------------------------------------------------------------------------
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, 2006,
OFS waived $9,350 for Class N shares. This undertaking may be amended or
withdrawn at any time.
The Manager will waive fees and/or reimburse Fund expenses in an amount
equal to the indirect management fees incurred through the Fund's investment in
IMMF. During the year ended November 30, 2006, the Manager waived $1,708 for
IMMF management fees.
45 | OPPENHEIMER INTERNATIONAL GROWTH FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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, 2006, the Fund had outstanding foreign currency contracts as
follows:
CONTRACT
EXPIRATION AMOUNT VALUATION AS OF UNREALIZED
CONTRACT DESCRIPTION DATE (000S) NOVEMBER 30, 2006 APPRECIATION
- ------------------------------------------------------------------------------------------
CONTRACTS TO PURCHASE
Swiss Franc (CHF) 12/1/06 319CHF $265,969 $1,961
- --------------------------------------------------------------------------------
6. ILLIQUID OR RESTRICTED SECURITIES
As of November 30, 2006, 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 2006 (DEPRECIATION)
- ----------------------------------------------------------------------------------------------------------
Art Advanced Research
Technologies, Inc. 6/19/01 $7,500,000 $615,924 $(6,884,076)
Ceres Group, Inc., $4.00
Cv., Series C-1 2/6/01-3/21/06 258,188 419,556 161,368
46 | OPPENHEIMER INTERNATIONAL GROWTH FUND
VALUATION AS OF UNREALIZED
ACQUISITION NOVEMBER 30, APPRECIATION
SECURITY DATES COST 2006 (DEPRECIATION)
- ----------------------------------------------------------------------------------------------------------
Ceres Group, Inc., Cv., Series C 1/6/99 $ 2,400,000 $ 3,900,000 $ 1,500,000
Ceres Group, Inc., Cv., Series D 3/15/01-3/9/06 2,758,800 2,988,700 229,900
Marshall Edwards, Inc. 5/6/02-11/20/03 6,869,052 5,357,861 (1,511,191)
Oxagen Ltd. 12/20/00 2,210,700 18,437 (2,192,263)
------------------------------------------------
$21,996,740 $13,300,478 $(8,696,262)
================================================
- --------------------------------------------------------------------------------
7. SECURITIES LENDING
The Fund lends portfolio securities from time to time in order to earn
additional income. In return, the Fund receives collateral in the form of
securities, letters of credit or cash, against the loaned securities and
maintains collateral in an amount not less than 100% of the market value of the
loaned securities during the period of the loan. The market value of the loaned
securities is determined at the close of business each day. If the Fund is
undercollateralized at the close of business due to an increase in market value
of securities on loan, additional collateral is requested from the borrowing
counterparty and is delivered to the Fund on the next business day. Cash
collateral may be invested in approved investments and the Fund bears the risk
of any loss in value of these investments. The Fund retains a portion of the
interest earned from the collateral. If the borrower defaults on its obligation
to return the securities loaned because of insolvency or other reasons, the Fund
could experience delays and cost in recovering the securities loaned or in
gaining access to the collateral. The Fund continues to receive the economic
benefit of interest or dividends paid on the securities loaned in the form of a
substitute payment received from the borrower. As of November 30, 2006, the Fund
had no securities on loan.
- --------------------------------------------------------------------------------
8. RECENT ACCOUNTING PRONOUNCEMENTS
In June 2006, the Financial Accounting Standards Board ("FASB") issued FASB
Interpretation No. 48 ("FIN 48"), ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES.
FIN 48 clarifies the accounting for uncertainty in income taxes recognized in
an enterprise's financial statements in accordance with FASB Statement No. 109,
ACCOUNTING FOR INCOME TAXES. FIN 48 requires the evaluation of tax positions
taken in the course of preparing the Fund's tax returns to determine whether it
is "more-likely-than-not" that tax positions taken in the Fund's tax return will
be ultimately sustained. A tax liability and expense must be recorded in respect
of any tax position that, in Management's judgment, will not be fully realized.
FIN 48 is effective for fiscal years beginning after December 15, 2006. As of
November 30, 2006, the Manager is evaluating the implications of FIN 48. Its
impact to the Fund's financial statements has not yet been determined.
In September 2006, the FASB issued Statement of Financial Accounting
Standards ("SFAS") No. 157, FAIR VALUE MEASUREMENTS. This standard establishes a
single authoritative definition of fair value, sets out a framework for
measuring fair value and expands disclosures about fair value measurements. SFAS
No. 157 applies to fair value measurements already required or
47 | OPPENHEIMER INTERNATIONAL GROWTH FUND
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
8. RECENT ACCOUNTING PRONOUNCEMENTS Continued
permitted by existing standards. SFAS No. 157 is effective for financial
statements issued for fiscal years beginning after November 15, 2007, and
interim periods within those fiscal years. As of November 30, 2006, the Manager
does not believe the adoption of SFAS No. 157 will materially impact the
financial statement amounts; however, additional disclosures may be required
about the inputs used to develop the measurements and the effect of certain of
the measurements on changes in net assets for the period.
- --------------------------------------------------------------------------------
9. LITIGATION
A consolidated amended complaint was filed as a putative class action against
the Manager and the Transfer Agent and other defendants (including 51 of the
Oppenheimer funds including the Fund) in the U.S. District Court for the
Southern District of New York on January 10, 2005 and was amended on March 4,
2005. The complaint alleged, among other things, that the Manager charged
excessive fees for distribution and other costs, and that by permitting and/or
participating in those actions, the Directors/Trustees and the Officers of the
funds breached their fiduciary duties to fund shareholders under the Investment
Company Act of 1940 and at common law. The plaintiffs sought unspecified
damages, an accounting of all fees paid, and an award of attorneys' fees and
litigation expenses.
In response to the defendants' motions to dismiss the suit, seven of the
eight counts in the complaint, including the claims against certain of the
Oppenheimer funds, as nominal defendants, and against certain present and former
Directors, Trustees and Officers of the funds, and the Distributor, as
defendants, were dismissed with prejudice, by court order dated March 10, 2006,
and the remaining count against the Manager and the Transfer Agent was dismissed
with prejudice by court order dated April 5, 2006. The plaintiffs filed an
appeal of those dismissals on May 11, 2006.
The Manager believes that the allegations contained in the complaint are
without merit and that there are substantial grounds to sustain the district
court's rulings. The Manager also believes that it is premature to render any
opinion as to the likelihood of an outcome unfavorable to it, the funds, the
Directors/Trustees or the Officers on the appeal of the decisions of the
district court, 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, 2006, 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, 2006, 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, 2006, 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 9, 2007
49 | OPPENHEIMER INTERNATIONAL GROWTH FUND
FEDERAL INCOME TAX INFORMATION Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
In early 2007, if applicable, shareholders of record received information
regarding all dividends and distributions paid to them by the Fund during
calendar year 2006. Regulations of the U.S. Treasury Department require the Fund
to report this information to the Internal Revenue Service.
Dividends, if any, paid by the Fund during the fiscal year ended November
30, 2006 which are not designated as capital gain distributions should be
multiplied by 1.77% 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, 2006 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. $24,596,955 of the Fund's fiscal year taxable income may be
eligible for the lower individual income tax rates. In early 2007, shareholders
of record received information regarding the percentage of distributions that
are eligible for lower individual income tax rates.
The Fund has elected the application of Section 853 of the Internal
Revenue Code to permit shareholders to take a federal income tax credit or
deduction, at their option, on a per share basis for an aggregate amount of
$1,156,307 of foreign income taxes paid by the Fund during the fiscal year ended
November 30, 2006. 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.
Gross income of $10,842,163 was derived from sources within foreign
countries or possessions of the United States.
Recent tax legislation allows a regulated investment company to designate
distributions not designated as capital gain distributions, as either interest
related dividends or short-term capital gain dividends, both of which are exempt
from the U.S. withholding tax applicable to non U.S. taxpayers. For the fiscal
year ended November 30, 2006, $312,011 or 5.07% of the ordinary distributions
paid by the Fund qualifies as an interest related dividend.
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
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.
51 | OPPENHEIMER INTERNATIONAL GROWTH FUND
TRUSTEES AND OFFICERS Unaudited
- --------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
NAME, POSITION(S) HELD WITH THE PRINCIPAL OCCUPATION(S) DURING THE PAST 5 YEARS; OTHER TRUSTEESHIPS/DIRECTORSHIPS HELD;
FUND, LENGTH OF SERVICE, AGE NUMBER OF PORTFOLIOS IN THE FUND COMPLEX CURRENTLY OVERSEEN
INDEPENDENT THE ADDRESS OF EACH TRUSTEE IN THE CHART BELOW IS 6803 S. TUCSON WAY, CENTENNIAL, COLORADO
TRUSTEES 80112-3924. EACH TRUSTEE SERVES FOR AN INDEFINITE TERM, OR UNTIL HIS OR HER RESIGNATION,
RETIREMENT, DEATH OR REMOVAL.
CLAYTON K. YEUTTER, 1 Director of American Commercial Lines (barge company) (since January 2005); Attorney at
Chairman of the Board Hogan & Hartson (law firm) (since June 1993); Director of Covanta Holding Corp.
of Trustees (since 2003), (waste-to-energy company) (since 2002); Director of Weyerhaeuser Corp. (1999-April 2004);
Trustee (since 1996) Director of Caterpillar, Inc. (1993-December 2002); Director of ConAgra Foods (1993-2001);
Age: 76 Director of Texas Instruments (1993-2001); Director of FMC Corporation (1993-2001).
Oversees 49 portfolios in the OppenheimerFunds complex.
MATTHEW P. FINK, Trustee of the Committee for Economic Development (policy research foundation) (since
Trustee (since 2005) 2005); Director of ICI Education Foundation (education foundation) (October 1991-August
Age: 66 2006); President of the Investment Company Institute (trade association) (October 1991-June
2004); Director of ICI Mutual Insurance Company (insurance company) (October 1991-June
2004). Oversees 49 portfolios in the OppenheimerFunds complex.
ROBERT G. GALLI, A trustee or director of other Oppenheimer funds. Oversees 59 portfolios in the
Trustee (since 1996) OppenheimerFunds complex.
Age: 73
PHILLIP A. GRIFFITHS, Distinguished Presidential Fellow for International Affairs (since 2002) and Member (since
Trustee (since 1999) 1979) of the National Academy of Sciences; Council on Foreign Relations (since 2002);
Age: 68 Director of GSI Lumonics Inc. (precision medical equipment supplier) (since 2001); Senior
Advisor of The Andrew W. Mellon Foundation (since 2001); Chair of Science Initiative Group
(since 1999); Member of the American Philosophical Society (since 1996); Trustee of
Woodward Academy (since 1983); Foreign Associate of Third World Academy of Sciences;
Director of the Institute for Advanced Study (1991-2004); Director of Bankers Trust New
York Corporation (1994-1999); Provost at Duke University (1983-1991). Oversees 49
portfolios in the OppenheimerFunds complex.
MARY F. MILLER, Trustee of the American Symphony Orchestra (not-for-profit) (since October 1998); and
Trustee (since 2004) Senior Vice President and General Auditor of American Express Company (financial services
Age: 64 company) (July 1998-February 2003). Oversees 49 portfolios in the OppenheimerFunds complex.
JOEL W. MOTLEY, Director of Columbia Equity Financial Corp. (privately-held financial adviser) (since
Trustee (since 2002) 2002); Managing Director of Carmona Motley, Inc. (privately-held financial adviser) (since
Age: 54 January 2002); Managing Director of Carmona Motley Hoffman Inc. (privately-held financial
adviser) (January 1998-December 2001); Member of the Finance and Budget Committee of the
Council on Foreign Relations, the Investment Committee of the Episcopal Church of America,
the Investment Committee and Board of Human Rights Watch and the Investment Committee of
Historic Hudson Valley. Oversees 49 portfolios in the OppenheimerFunds complex.
KENNETH A. RANDALL, Director of Dominion Resources, Inc. (electric utility holding company) (February
Trustee (since 1996) 1972-October 2005); Former Director of Prime Retail, Inc. (real estate investment trust),
Age: 79 Dominion Energy Inc. (electric power and oil & gas producer), Lumberman's Mutual Casualty
Company, American Motorists Insurance Company and American Manufacturers Mutual Insurance
Company; Former President and Chief Executive
52 | OPPENHEIMER INTERNATIONAL GROWTH FUND
KENNETH A. RANDALL, Officer of The Conference Board, Inc. (international economic and business research).
Continued Oversees 49 portfolios in the OppenheimerFunds complex.
RUSSELL S. REYNOLDS, JR., Chairman of The Directorship Search Group, Inc. (corporate governance consulting and
Trustee (since 1996) executive recruiting) (since 1993); Life Trustee of International House (non-profit
Age: 75 educational organization); Founder, Chairman and Chief Executive Officer of Russell
Reynolds Associates, Inc. (1969-1993); Banker at J.P. Morgan & Co. (1958-1966); 1st Lt.
Strategic Air Command, U.S. Air Force (1954-1958). Oversees 49 portfolios in the
OppenheimerFunds complex.
JOSEPH M. WIKLER, Director of the following medical device companies: Medintec (since 1992) and Cathco (since
Trustee (since 2005) 1996); Director of Lakes Environmental Association (since 1996); Member of the Investment
Age: 65 Committee of the Associated Jewish Charities of Baltimore (since 1994); Director
of Fortis/Hartford mutual funds (1994-December 2001). Oversees 49 portfolios in the
OppenheimerFunds complex.
PETER I. WOLD, President of Wold Oil Properties, Inc. (oil and gas exploration and production company)
Trustee (since 2005) (since 1994); Vice President, Secretary and Treasurer of Wold Trona Company, Inc. (soda ash
Age: 59 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 49
portfolios in the OppenheimerFunds complex.
BRIAN F. WRUBLE, 2 General Partner of Odyssey Partners, L.P. (hedge fund) (since September 1995); Director of
Trustee (since 2005) Special Value Opportunities Fund, LLC (registered investment company) (since September
Age: 63 2004); Investment Advisory Board Member of Zurich Financial Services (insurance) (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) and Managing Principal
(1997-December 1998); 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 59 portfolios in the OppenheimerFunds
complex.
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INTERESTED TRUSTEE THE ADDRESS OF MR. MURPHY IS TWO WORLD FINANCIAL CENTER, 225 LIBERTY STREET, 11TH FLOOR,
AND OFFICER 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 (since June 2001) and President (since
Trustee, President and September 2000) of the Manager; President and a director or trustee of other Oppenheimer
Principal Executive Officer funds; President and Director of Oppenheimer Acquisition Corp. ("OAC") (the Manager's
(since 2001) parent holding company) and of Oppenheimer Partnership Holdings, Inc. (holding company
Age: 57 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
1. As of 12/31/06, Clayton K. Yeutter has retired from the Board.
2. As of 1/1/07, Brian F. Wruble was appointed Chairman of the Board.
53 | OPPENHEIMER INTERNATIONAL GROWTH FUND
TRUSTEES AND OFFICERS Unaudited / Continued
- --------------------------------------------------------------------------------
JOHN V. MURPHY, (charitable trust program established by the Manager) (since July 2001); Director of the
Continued following investment advisory subsidiaries of the Manager: OFI Institutional Asset
Management, Inc., Centennial Asset Management Corporation, Trinity Investment Management
Corporation and Tremont Capital Management, Inc. (since November 2001), HarbourView Asset
Management Corporation and OFI Private Investments, Inc. (since July 2001); President
(since November 1, 2001) and 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 (openend 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 96
portfolios in the OppenheimerFunds complex.
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OTHER OFFICERS OF THE ADDRESSES OF THE OFFICERS IN THE CHART BELOW ARE AS FOLLOWS: FOR MESSRS. EVANS, ZACK,
THE FUND GILLESPIE AND MS. BLOOMBERG, TWO WORLD FINANCIAL CENTER, 225 LIBERTY STREET, NEW YORK,
NEW YORK 10281-1008, FOR MESSRS. VANDEHEY, WIXTED, PETERSEN, SZILAGYI AND MS. IVES,
6803 S. TUCSON WAY, CENTENNIAL, COLORADO 80112-3924. EACH OFFICER SERVES FOR AN INDEFI-
NITE TERM OR UNTIL HIS OR HER RESIGNATION, RETIREMENT DEATH OR REMOVAL.
GEORGE R. EVANS, Senior Vice President (since October 1993) and Director of International Equities (since
Vice President and July 2004) of the Manager. Formerly Vice President of HarbourView Asset Management
Portfolio Manager Corporation (July 1994-November 2001). An officer of 2 portfolios in the OppenheimerFunds
(since 1996) complex.
Age: 47
MARK S. VANDEHEY, Senior Vice President and Chief Compliance Officer of the Manager (since March 2004); Vice
Vice President and President of OppenheimerFunds Distributor, Inc., Centennial Asset Management Corporation
Chief Compliance Officer and Shareholder Services, Inc. (since June 1983). Former Vice President and Director of
(since 2004) Internal Audit of the Manager (1997-February 2004). An officer of 96 portfolios in the
Age: 56 OppenheimerFunds complex.
BRIAN W. WIXTED, Senior Vice President and Treasurer of the Manager (since March 1999); Treasurer of the
Treasurer and Principal following: HarbourView Asset Management Corporation, Shareholder Financial Services, Inc.,
Financial and Accounting Shareholder Services, Inc., Oppenheimer Real Asset Management Corporation, and Oppenheimer
Officer (since 1999) Partnership Holdings, Inc. (since March 1999), OFI Private Investments, Inc. (since March
Age: 47 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 96 portfolios in the OppenheimerFunds complex.
BRIAN S. PETERSEN, Assistant Vice President of the Manager (since August 2002); Manager/Financial Product
Assistant Treasurer Accounting of the Manager (November 1998-July 2002). An officer of 96 portfolios in the
(since 2004) OppenheimerFunds complex.
Age: 36
54 | OPPENHEIMER INTERNATIONAL GROWTH FUND
BRIAN C. SZILAGYI, Assistant Vice President of the Manager (since July 2004); Director of Financial Reporting
Assistant Treasurer and Compliance of First Data Corporation (April 2003-July 2004); Manager of Compliance of
(since 2005) Berger Financial Group LLC (May 2001-March 2003); Director of Mutual Fund Operations at
Age: 36 American Data Services, Inc. (September 2000-May 2001). An officer of 96 portfolios in the
OppenheimerFunds complex.
ROBERT G. ZACK, Executive Vice President (since January 2004) and General Counsel (since March 2002) of the
Secretary Manager; General Counsel and Director of the Distributor (since December 2001); General
(since 2001) Counsel of Centennial Asset Management Corporation (since December 2001); Senior Vice
Age: 58 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 96
portfolios in the OppenheimerFunds complex.
LISA I. BLOOMBERG, Vice President and Associate Counsel of the Manager (since May 2004); First Vice President
Assistant Secretary (April 2001-April 2004), Associate General Counsel (December 2000-April 2004), Corporate
(since 2004) Vice President (May 1999-April 2001) and Assistant General Counsel (May 1999-December 2000)
Age: 38 of UBS Financial Services Inc. (formerly, PaineWebber Incorporated). An officer of 96
portfolios in the OppenheimerFunds complex.
KATHLEEN T. IVES, Vice President (since June 1998) and Senior Counsel and Assistant Secretary (since October
Assistant Secretary 2003) of the Manager; Vice President (since 1999) and Assistant Secretary (since October
(since 2001) 2003) of the Distributor; Assistant Secretary of Centennial Asset Management Corporation
Age: 41 (since October 2003); Vice President and Assistant Secretary of Shareholder Services, Inc.
(since 1999); Assistant Secretary of OppenheimerFunds Legacy Program and Shareholder
Financial Services, Inc. (since December 2001); Assistant Counsel of the Manager (August
1994-October 2003). An officer of 96 portfolios in the OppenheimerFunds complex.
PHILLIP S. GILLESPIE, Senior Vice President and Deputy General Counsel of the Manager (since September 2004);
Assistant Secretary First Vice President (2001-September 2004); Director (2000-September 2004) and Vice
(since 2004) President (1998-2000) of Merrill Lynch Investment Management. An officer of 96 portfolios
Age: 42 in the OppenheimerFunds complex.
THE FUND'S STATEMENT OF ADDITIONAL INFORMATION CONTAINS ADDITIONAL INFORMATION
ABOUT THE FUND'S TRUSTEES AND OFFICERS IS AVAILABLE WITHOUT CHARGE UPON REQUEST,
BY CALLING 1.800.525.7048.
55 | 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 2006 and $23,000 in fiscal 2005.
(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 $225,954 in fiscal 2006 and $156,805 in fiscal 2005 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 include: internal control reviews and professional services
relating to FAS 123R.
(c) Tax Fees
The principal accountant for the audit of the registrant's annual financial
statements billed $201 in fiscal 2006 and no such fees in fiscal 2005.
The principal accountant for the audit of the registrant's annual financial
statements billed no such fees in fiscal 2006 and $6,536 in fiscal 2005 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 include: Preparation of form 5500 and Venezuelan tax filing.
(d) All Other Fees
All Other 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 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 $226,155 in fiscal 2006 and $163,341 in
fiscal 2005 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)
No such services were rendered.
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, 2006, 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 9, 2007
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 9, 2007
By: /S/ Brian W. Wixted
---------------------------
Brian W. Wixted
Principal Financial Officer
Date: January 9, 2007