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 811-07657
---------
Oppenheimer Developing Markets 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
--------------
Date of fiscal year end: August 31
---------
Date of reporting period: 02/29/2008
----------
ITEM 1. REPORTS TO STOCKHOLDERS.
FEBRUARY 29, 2008
- --------------------------------------------------------------------------------
Oppenheimer Management
Developing Markets Commentaries
Fund and
Semiannual
Report
- --------------------------------------------------------------------------------
MANAGEMENT COMMENTARIES
An Interview with Your Fund's Manager
Listing of Top Holdings
SEMIANNUAL REPORT
Listing of Investments
Financial Statements
[OPPENHEIMERFUNDS LOGO]
TOP HOLDINGS AND ALLOCATIONS
- --------------------------------------------------------------------------------
TOP TEN GEOGRAPHICAL HOLDINGS
- ---------------------------------------------------------------------------------
Brazil 18.2%
- ---------------------------------------------------------------------------------
India 14.8
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Taiwan 11.5
- ---------------------------------------------------------------------------------
Mexico 8.6
- ---------------------------------------------------------------------------------
South Africa 5.9
- ---------------------------------------------------------------------------------
Russia 5.0
- ---------------------------------------------------------------------------------
Egypt 4.6
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Korea, Republic of South 4.4
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Turkey 4.2
- ---------------------------------------------------------------------------------
China 3.9
Portfolio holdings and allocations are subject to change. Percentages are as of
February 29, 2008, and are based on the total market value of investments.
TOP TEN COMMON STOCK HOLDINGS
- ---------------------------------------------------------------------------------
Petroleo Brasileiro SA, ADR 4.2%
- ---------------------------------------------------------------------------------
Infosys Technologies Ltd. 3.8
- ---------------------------------------------------------------------------------
Taiwan Semiconductor Manufacturing Co. Ltd. 3.8
- ---------------------------------------------------------------------------------
MediaTek, Inc. 3.4
- ---------------------------------------------------------------------------------
Orascom Telecom Holding SAE 2.8
- ---------------------------------------------------------------------------------
Housing Development Finance Corp. Ltd. 2.7
- ---------------------------------------------------------------------------------
OAO Gazprom, Sponsored ADR 2.7
- ---------------------------------------------------------------------------------
PT Telekomunikasi Indonesia Tbk 2.0
- ---------------------------------------------------------------------------------
HSBC Holdings plc 1.8
- ---------------------------------------------------------------------------------
China Mobile Hong Kong Ltd., ADR 1.8
Portfolio holdings and allocations are subject to change. Percentages are as of
February 29, 2008, and are based on net assets.
10 | OPPENHEIMER DEVELOPING MARKETS FUND
REGIONAL ALLOCATION
[PIE CHART]
Asia 43.3%
Latin America 29.4
Middle East/Africa 15.2
Emerging Europe 5.0
United States/Canada 3.8
Europe 3.3
Portfolio holdings and allocations are subject to change. Percentages are as of
February 29, 2008, and are based on the total market value of investments.
For up-to-date Top 10 Fund holdings, please visit www.oppenheimerfunds.com.
11 | OPPENHEIMER DEVELOPING MARKETS FUND
NOTES
- --------------------------------------------------------------------------------
Total returns include changes in share price and reinvestment of dividends
and capital gains distributions in a hypothetical investment for the
periods shown. Cumulative total returns are not annualized. The Fund's
total returns shown do not reflect the deduction of income taxes on an
individual's investment. Taxes may reduce your actual investment returns on
income or gains paid by the Fund or any gains you may realize if you sell
your shares. INVESTORS SHOULD CONSIDER THE FUND'S INVESTMENT OBJECTIVES,
RISKS, AND OTHER CHARGES AND EXPENSES CAREFULLY BEFORE INVESTING. THE
FUND'S PROSPECTUS CONTAINS THIS AND OTHER INFORMATION ABOUT THE FUND, AND
MAY BE OBTAINED BY ASKING YOUR FINANCIAL ADVISOR, CALLING US AT
1.800.525.7048 OR VISITING OUR WEBSITE AT WWW.OPPENHEIMERFUNDS.COM. READ
THE PROSPECTUS CAREFULLY BEFORE INVESTING.
The Fund's investment strategy and focus can change over time. The mention
of specific fund holdings does not constitute a recommendation by
OppenheimerFunds, Inc.
CLASS A shares of the Fund were first publicly offered on 11/18/96. 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 11/18/96. 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 11/18/96. Unless
otherwise noted, Class C returns include the contingent deferred sales
charge of 1% for 1-year period. Class C shares are subject to a 0.75%
annual 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.
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.
12 | OPPENHEIMER DEVELOPING MARKETS 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 applicable); and (2) ongoing costs, including management fees;
distribution and service fees; and other Fund expenses. These examples are
intended to help you understand your ongoing costs (in dollars) of
investing in the Fund and to compare these costs with the ongoing costs of
investing in other mutual funds.
The examples are based on an investment of $1,000.00 invested at the
beginning of the period and held for the entire 6-month period ended
February 29, 2008.
ACTUAL EXPENSES. The first section of the table provides information about
actual account values and actual expenses. You may use the information in
this section 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 first section 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 second section of the
table provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio for each
class of shares, and an assumed rate of return of 5% per year for each
class before expenses, which is not the actual return. The hypothetical
account values and expenses may not be used to estimate the actual ending
account balance or expenses you paid for the period. You may use this
information to compare the ongoing costs of investing in the Fund and other
funds. To do so, compare this 5% hypothetical example for the class of
shares you hold with the 5% hypothetical examples that appear in the
shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight
your ongoing costs only and do not reflect any transactional costs, such as
front-end or contingent deferred sales charges (loads), redemption fees, or
a $12.00 fee imposed annually on accounts valued at less than $500.00
(subject to exceptions
13 | OPPENHEIMER DEVELOPING MARKETS FUND
FUND EXPENSES Continued
- --------------------------------------------------------------------------------
described in the Statement of Additional Information). Therefore, the
"hypothetical" section of the table is 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
ACTUAL SEPTEMBER 1, 2007 FEBRUARY 29,2008 FEBRUARY 29, 2008
- ---------------------------------------------------------------------------------
Class A $ 1,000.00 $ 1,068.70 $ 6.40
- ---------------------------------------------------------------------------------
Class B 1,000.00 1,064.60 10.42
- ---------------------------------------------------------------------------------
Class C 1,000.00 1,064.70 10.21
- ---------------------------------------------------------------------------------
Class N 1,000.00 1,066.20 8.56
- ---------------------------------------------------------------------------------
Class Y 1,000.00 1,070.20 4.85
HYPOTHETICAL
(5% return before expenses)
- ---------------------------------------------------------------------------------
Class A 1,000.00 1,018.70 6.24
- ---------------------------------------------------------------------------------
Class B 1,000.00 1,014.82 10.17
- ---------------------------------------------------------------------------------
Class C 1,000.00 1,015.02 9.97
- ---------------------------------------------------------------------------------
Class N 1,000.00 1,016.61 8.36
- ---------------------------------------------------------------------------------
Class Y 1,000.00 1,020.19 4.73
Expenses are equal to the Fund's annualized expense ratio for that class,
multiplied by the average account value over the period, multiplied by 182/366
(to reflect the one-half year period). Those annualized expense ratios,
excluding indirect expenses from affiliated fund, based on the 6-month period
ended February 29, 2008 are as follows:
CLASS EXPENSE RATIOS
- ----------------------------
Class A 1.24%
- ----------------------------
Class B 2.02
- ----------------------------
Class C 1.98
- ----------------------------
Class N 1.66
- ----------------------------
Class Y 0.94
The expense ratios reflect reduction to custodian expenses and voluntary waivers
or reimbursements of expenses by the Fund's Manager that can be terminated at
any time, without advance notice. The "Financial Highlights" tables in the
Fund's financial statements, included in this report, also show the gross
expense ratios, without such waivers or reimbursements and reduction to
custodian expenses, if applicable.
14 | OPPENHEIMER DEVELOPING MARKETS FUND
STATEMENT OF INVESTMENTS February 29, 2008 / Unaudited
- --------------------------------------------------------------------------------
SHARES VALUE
- -----------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------
COMMON STOCKS -- 97.8%
- -----------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY -- 9.4%
- -----------------------------------------------------------------------------------------------------------
AUTO COMPONENTS -- 0.3%
Amtek Auto Ltd. 4,651,932 $ 35,427,452
- -----------------------------------------------------------------------------------------------------------
Rico Auto Industries Ltd. 480,500 413,421
----------------
35,840,873
- -----------------------------------------------------------------------------------------------------------
AUTOMOBILES -- 2.0%
Bajaj Auto Ltd. 718,693 40,529,536
- -----------------------------------------------------------------------------------------------------------
Ford Otomotiv
Sanayi AS 2,922,632 27,521,799
- -----------------------------------------------------------------------------------------------------------
Hyundai Motor Co. Ltd.,
Preference 302,670 8,658,164
- -----------------------------------------------------------------------------------------------------------
Mahindra & Mahindra
Ltd. 3,063,117 52,200,144
- -----------------------------------------------------------------------------------------------------------
PT Astra International
Tbk 30,269,500 90,922,499
----------------
219,832,142
- -----------------------------------------------------------------------------------------------------------
HOTELS, RESTAURANTS & LEISURE -- 0.3%
Jollibee Foods Corp. 30,392,200 36,576,058
- -----------------------------------------------------------------------------------------------------------
HOUSEHOLD DURABLES -- 2.0%
Corporacion GEO
SA de CV, Series B 1 13,437,700 42,910,303
- -----------------------------------------------------------------------------------------------------------
Cyrela Brazil Realty SA
Empreendimentos e
Participacoes, GDR 2 301,420 96,605,110
- -----------------------------------------------------------------------------------------------------------
SARE Holding SA
de CV, Cl. B 1,3 34,880,970 49,504,271
- -----------------------------------------------------------------------------------------------------------
Steinhoff International
Holdings Ltd. 11,458,600 26,135,320
----------------
215,155,004
- -----------------------------------------------------------------------------------------------------------
INTERNET & CATALOG RETAIL -- 0.2%
B2W Compania Global
do Varejo 559,000 23,469,339
- -----------------------------------------------------------------------------------------------------------
MEDIA -- 2.7%
Corporacion Interamericana
de Entretenimiento
SA de CV, Cl. B 1 6,869,761 16,100,000
- -----------------------------------------------------------------------------------------------------------
Grupo Televisa SA,
Sponsored GDR 4 6,324,500 139,139,000
- -----------------------------------------------------------------------------------------------------------
Net Servicos de
Comunicacao SA 1 58,739 644,319
- -----------------------------------------------------------------------------------------------------------
Net Servicos de
Comunicacao SA,
Preference 1 5,342,800 58,606,197
- -----------------------------------------------------------------------------------------------------------
Television
Broadcasts Ltd. 13,289,000 78,002,381
----------------
292,491,897
- -----------------------------------------------------------------------------------------------------------
MULTILINE RETAIL -- 1.9%
Lojas Americanas
SA, Preference 18,481,700 165,899,241
- -----------------------------------------------------------------------------------------------------------
S.A.C.I. Falabella SA 9,208,300 47,798,500
----------------
213,697,741
- -----------------------------------------------------------------------------------------------------------
CONSUMER STAPLES -- 9.7%
- -----------------------------------------------------------------------------------------------------------
BEVERAGES -- 2.4%
Anadolu Efes Biracilik
ve Malt Sanayii AS 3,846,777 42,814,461
- -----------------------------------------------------------------------------------------------------------
Coca-Cola Icecek AS 1,098,922 10,804,641
- -----------------------------------------------------------------------------------------------------------
Companhia de Bebidas
das Americas, ADR 185,780 14,119,280
- -----------------------------------------------------------------------------------------------------------
Fomento Economico
Mexicano SA de CV,
Sponsored ADR 4 2,044,900 81,796,000
- -----------------------------------------------------------------------------------------------------------
Fomento Economico
Mexicano SA de CV,
UBD 30,359,000 121,606,078
----------------
271,140,460
- -----------------------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING -- 3.5%
BIM Birlesik
Magazalar AS 639,731 55,615,871
- -----------------------------------------------------------------------------------------------------------
Cencosud SA 13,163,700 54,143,009
- -----------------------------------------------------------------------------------------------------------
Companhia Brasileira
de Distribuicao Grupo
Pao de Acucar,
Sponsored ADR 4 45,781 1,986,438
- -----------------------------------------------------------------------------------------------------------
Jeronimo Martins,
SGPS SA 4,679,160 34,354,546
- -----------------------------------------------------------------------------------------------------------
Massmart
Holdings Ltd. 5,139,512 46,910,834
- -----------------------------------------------------------------------------------------------------------
President Chain
Store Corp. 19,968,074 67,907,703
15 | OPPENHEIMER DEVELOPING MARKETS FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
SHARES VALUE
- -----------------------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING Continued
Shinsegae Department
Store Co. 78,637 $ 48,891,684
- -----------------------------------------------------------------------------------------------------------
Wal-Mart de Mexico
SAB de CV, Series V 22,944,600 83,637,459
----------------
393,447,544
- -----------------------------------------------------------------------------------------------------------
FOOD PRODUCTS -- 0.7%
Sadia SA, Preference 8,785,200 49,248,238
- -----------------------------------------------------------------------------------------------------------
Tiger Brands Ltd. 1,328,827 23,637,584
----------------
72,885,822
- -----------------------------------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS -- 0.6%
Hindustan
Unilever Ltd. 12,068,700 67,631,405
- -----------------------------------------------------------------------------------------------------------
PERSONAL PRODUCTS -- 1.4%
Amorepacific Corp. 63,344 39,400,464
- -----------------------------------------------------------------------------------------------------------
Natura Cosmeticos SA 11,159,700 113,504,133
----------------
152,904,597
- -----------------------------------------------------------------------------------------------------------
TOBACCO -- 1.1%
Eastern Tobacco Co. 587,195 46,268,804
- -----------------------------------------------------------------------------------------------------------
ITC Ltd. 8,619,025 43,103,361
- -----------------------------------------------------------------------------------------------------------
PT Gudang
Garam Tbk 33,560,000 29,021,524
----------------
118,393,689
- -----------------------------------------------------------------------------------------------------------
ENERGY -- 13.1%
- -----------------------------------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES -- 1.5%
Technip SA 666,824 54,211,367
- -----------------------------------------------------------------------------------------------------------
Tenaris SA, ADR 4 1,044,300 46,419,135
- -----------------------------------------------------------------------------------------------------------
TMK OAO, GDR 2,4 1,921,500 65,965,992
----------------
166,596,494
- -----------------------------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS -- 11.6%
China Petroleum
& Chemical Corp. 67,236,000 73,410,759
- -----------------------------------------------------------------------------------------------------------
China Shenhua
Energy Co. Ltd. 22,831,500 116,400,725
- -----------------------------------------------------------------------------------------------------------
DNO International
ASA 1 25,059,544 32,386,288
- -----------------------------------------------------------------------------------------------------------
LUKOIL, Sponsored
ADR 4 1,813,400 134,080,205
- -----------------------------------------------------------------------------------------------------------
NovaTek OAO,
Sponsored GDR 2,4 433,100 32,857,340
- -----------------------------------------------------------------------------------------------------------
OAO Gazprom,
Sponsored ADR 5,880,000 297,164,181
- -----------------------------------------------------------------------------------------------------------
PetroChina Co. Ltd. 38,142,000 56,121,875
- -----------------------------------------------------------------------------------------------------------
Petroleo Brasileiro
SA, ADR 4 3,995,600 468,843,704
- -----------------------------------------------------------------------------------------------------------
S-Oil Corp. 839,750 59,380,032
- -----------------------------------------------------------------------------------------------------------
S-Oil Corp., Preference 215,948 13,826,633
----------------
1,284,471,742
- -----------------------------------------------------------------------------------------------------------
FINANCIALS -- 21.2%
- -----------------------------------------------------------------------------------------------------------
COMMERCIAL BANKS -- 13.4%
Banco Bradesco SA,
Depository Receipts for
Preference Shares 1 79,209 2,482,453
- -----------------------------------------------------------------------------------------------------------
Banco Bradesco SA,
Preference 6,149,512 192,729,073
- -----------------------------------------------------------------------------------------------------------
Banco Bradesco SA,
Sponsored ADR 4 2,487,600 78,085,764
- -----------------------------------------------------------------------------------------------------------
Banco Latinoamericano
de Exportaciones
SA, Cl. E 3 1,865,885 25,077,494
- -----------------------------------------------------------------------------------------------------------
Banco Santander
Chile SA 197,455,468 9,902,089
- -----------------------------------------------------------------------------------------------------------
Bank Hapoalim Ltd. 6,305,575 27,238,353
- -----------------------------------------------------------------------------------------------------------
Commercial
International Bank 4,083,423 69,159,517
- -----------------------------------------------------------------------------------------------------------
Commercial
International Bank,
Sponsored GDR 2,4 2,675,100 45,476,700
- -----------------------------------------------------------------------------------------------------------
Grupo Financiero
Banorte SAB de CV 43,890,900 182,366,485
- -----------------------------------------------------------------------------------------------------------
Grupo Financiero
Inbursa SA de CV 12,841,900 33,213,878
- -----------------------------------------------------------------------------------------------------------
HDFC Bank
Ltd., ADR 4 455,158 49,662,289
- -----------------------------------------------------------------------------------------------------------
HSBC Holdings plc 13,006,285 198,002,357
- -----------------------------------------------------------------------------------------------------------
ICICI Bank Ltd.,
Sponsored ADR 4 2,658,700 137,827,008
- -----------------------------------------------------------------------------------------------------------
Jeonbuk Bank 2,017,680 17,244,804
- -----------------------------------------------------------------------------------------------------------
Kookmin Bank,
Sponsored ADR 4 635,100 38,887,173
16 | OPPENHEIMER DEVELOPING MARKETS FUND
SHARES VALUE
- -----------------------------------------------------------------------------------------------------------
COMMERCIAL BANKS Continued
Pusan Bank 1,895,970 $ 25,112,087
- -----------------------------------------------------------------------------------------------------------
Standard Bank
Group Ltd. 11,541,655 145,012,311
- -----------------------------------------------------------------------------------------------------------
TMB Bank Public
Co. Ltd. 1 833,118,889 34,515,659
- -----------------------------------------------------------------------------------------------------------
Turkiye Garanti
Bankasi AS 11,478,800 68,263,497
- -----------------------------------------------------------------------------------------------------------
Turkiye Vakiflar
Bankasi TAO, Cl. D 19,546,481 45,398,876
- -----------------------------------------------------------------------------------------------------------
Yapi ve Kredi
Bankasi AS 1 27,157,400 60,542,222
----------------
1,486,200,089
- -----------------------------------------------------------------------------------------------------------
CONSUMER FINANCE -- 0.4%
Kiatnakin Bank
Public Co. Ltd. 21,707,820 20,240,669
- -----------------------------------------------------------------------------------------------------------
TISCO Bank Public
Co. Ltd. 21,081,700 20,763,549
----------------
41,004,218
- -----------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES -- 1.1%
Bovespa Holding SA 1,634,000 26,088,345
- -----------------------------------------------------------------------------------------------------------
Haci Omer Sabanci
Holding AS 17,859,076 80,737,246
- -----------------------------------------------------------------------------------------------------------
Haci Omer
Sabanci Holding AS,
Sponsored ADR 4 17,834,250 20,063,531
----------------
126,889,122
- -----------------------------------------------------------------------------------------------------------
INSURANCE -- 1.6%
Aksigorta AS 11,576,086 57,451,494
- -----------------------------------------------------------------------------------------------------------
Cathay Financial
Holding Co. Ltd. 25,376,643 64,607,956
- -----------------------------------------------------------------------------------------------------------
Liberty Group Ltd. 2,228,783 21,606,376
- -----------------------------------------------------------------------------------------------------------
Ping An Insurance
Co. of China Ltd. 3,854,000 29,028,276
----------------
172,694,102
- -----------------------------------------------------------------------------------------------------------
REAL ESTATE MANAGEMENT & DEVELOPMENT -- 2.0%
Camargo Correa
Desenvolvimento
Imobiliario SA 2,766,200 15,032,451
- -----------------------------------------------------------------------------------------------------------
Medinet Nasr for
Housing &
Development Co. 4,705,068 56,291,344
- -----------------------------------------------------------------------------------------------------------
SM Prime
Holdings, Inc. 531,741,037 120,700,196
- -----------------------------------------------------------------------------------------------------------
Solidere, GDR 2 1,546,845 31,928,428
----------------
223,952,419
- -----------------------------------------------------------------------------------------------------------
THRIFTS & MORTGAGE FINANCE -- 2.7%
Housing Development
Finance Corp. Ltd. 4,339,100 299,966,743
- -----------------------------------------------------------------------------------------------------------
HEALTH CARE -- 1.2%
- -----------------------------------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES -- 0.4%
Diagnosticos
da America 2,053,900 38,865,117
- -----------------------------------------------------------------------------------------------------------
LIFE SCIENCES TOOLS & SERVICES -- 0.8%
Divi's Laboratories Ltd. 2,591,733 87,591,521
- -----------------------------------------------------------------------------------------------------------
INDUSTRIALS -- 9.0%
- -----------------------------------------------------------------------------------------------------------
AEROSPACE & DEFENSE -- 2.1%
Bharat Electronics Ltd. 1,029,488 36,226,475
- -----------------------------------------------------------------------------------------------------------
Empresa Brasileira
de Aeronautica
SA, ADR 4 4,365,387 193,473,952
----------------
229,700,427
- -----------------------------------------------------------------------------------------------------------
CONSTRUCTION & ENGINEERING -- 3.0%
GS Engineering &
Construction Corp. 324,560 49,632,321
- -----------------------------------------------------------------------------------------------------------
Hyundai
Development Co. 556,520 39,514,830
- -----------------------------------------------------------------------------------------------------------
Hyundai Engineering &
Construction Co. Ltd. 1,069,542 96,196,311
- -----------------------------------------------------------------------------------------------------------
Impulsora del Desarrollo
y el Empleo en America
Latina SA de CV 1 32,277,200 41,619,807
- -----------------------------------------------------------------------------------------------------------
Larsen & Toubro Ltd. 1,275,562 110,938,534
----------------
337,901,803
- -----------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT -- 0.4%
Bharat Heavy
Electricals Ltd. 881,193 49,948,730
- -----------------------------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES -- 1.9%
Enka Insaat ve Sanayi AS 114,582 1,732,729
17 | OPPENHEIMER DEVELOPING MARKETS FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
SHARES VALUE
- -----------------------------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES Continued
Hutchison
Whampoa Ltd. 12,232,000 $ 114,674,834
- -----------------------------------------------------------------------------------------------------------
Murray & Roberts
Holdings Ltd. 4,789,700 59,531,853
- -----------------------------------------------------------------------------------------------------------
Siemens India Ltd. 1,446,400 29,149,459
----------------
205,088,875
- -----------------------------------------------------------------------------------------------------------
ROAD & RAIL -- 1.6%
All America
Latina Logistica 15,875,900 176,962,164
- -----------------------------------------------------------------------------------------------------------
INFORMATION TECHNOLOGY -- 17.4%
- -----------------------------------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS -- 0.4%
High Tech
Computer Corp. 2,354,000 48,956,071
- -----------------------------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS -- 1.8%
Hon Hai Precision
Industry Co. Ltd. 23,242,840 138,244,316
- -----------------------------------------------------------------------------------------------------------
Synnex Technology
International Corp. 20,705,642 51,179,377
- -----------------------------------------------------------------------------------------------------------
Varitronix
International Ltd. 3 20,685,000 12,381,985
----------------
201,805,678
- -----------------------------------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES -- 1.4%
Baidu.com, Inc., ADR 1,4 20,300 5,101,999
- -----------------------------------------------------------------------------------------------------------
Mercadolibre, Inc. 1,4 226,400 8,184,360
- -----------------------------------------------------------------------------------------------------------
SINA Corp. 1,4 2,720,100 112,639,341
- -----------------------------------------------------------------------------------------------------------
Sohu.com, Inc. 1 242,882 10,949,121
- -----------------------------------------------------------------------------------------------------------
Tencent Holdings Ltd. 2,462,000 15,216,308
----------------
152,091,129
- -----------------------------------------------------------------------------------------------------------
IT SERVICES -- 5.5%
HCL Technologies Ltd. 6,409,186 43,531,589
- -----------------------------------------------------------------------------------------------------------
Infosys
Technologies Ltd. 10,941,804 419,919,342
- -----------------------------------------------------------------------------------------------------------
Tata Consultancy
Services Ltd. 5,670,155 123,656,854
- -----------------------------------------------------------------------------------------------------------
Travelsky Technology
Ltd., Cl. H 28,058,000 23,466,881
----------------
610,574,666
- -----------------------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT -- 8.3%
MediaTek, Inc. 33,520,850 382,117,340
- -----------------------------------------------------------------------------------------------------------
Realtek
Semiconductor
Corp. 3 23,198,000 68,961,820
- -----------------------------------------------------------------------------------------------------------
Taiwan Semiconductor
Manufacturing
Co. Ltd. 213,290,424 416,986,284
- -----------------------------------------------------------------------------------------------------------
Taiwan Semiconductor
Manufacturing
Co. Ltd., ADR 5,219,363 50,836,596
----------------
918,902,040
- -----------------------------------------------------------------------------------------------------------
MATERIALS -- 4.9%
- -----------------------------------------------------------------------------------------------------------
CHEMICALS -- 0.1%
Finetec Corp. 3 771,330 9,378,902
- -----------------------------------------------------------------------------------------------------------
METALS & MINING -- 4.8%
Anglo Platinum Ltd. 978,793 153,203,397
- -----------------------------------------------------------------------------------------------------------
AngloGold Ashanti Ltd.,
Sponsored ADR 4 528,264 19,080,896
- -----------------------------------------------------------------------------------------------------------
Companhia Vale do
Rio Doce, ADR 4 2,319,400 80,807,896
- -----------------------------------------------------------------------------------------------------------
Companhia Vale
do Rio Doce,
Sponsored ADR 4 5,482,300 160,741,036
- -----------------------------------------------------------------------------------------------------------
Impala Platinum
Holdings Ltd. 2,087,880 86,655,945
- -----------------------------------------------------------------------------------------------------------
Polymetal, GDR 1,5 4,046,900 36,017,410
----------------
536,506,580
- -----------------------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 11.6%
- -----------------------------------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES -- 3.4%
PT Indosat Tbk 80,919,000 60,013,869
- -----------------------------------------------------------------------------------------------------------
PT Telekomunikasi
Indonesia Tbk 203,910,500 216,566,398
- -----------------------------------------------------------------------------------------------------------
Tele Norte Leste
Participacoes SA 1,905,585 71,677,761
- -----------------------------------------------------------------------------------------------------------
Tele Norte Leste
Participacoes SA,
Preference 864,100 21,634,436
----------------
369,892,464
18 | OPPENHEIMER DEVELOPING MARKETS FUND
SHARES VALUE
- ------------------------------------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES -- 8.2%
America Movil
SAB de CV, ADR,
Series L 2,951,700 $ 178,459,782
- ------------------------------------------------------------------------------------------------------------
China Mobile Hong
Kong Ltd., ADR 4 2,633,800 196,534,156
- ------------------------------------------------------------------------------------------------------------
China Unicom Ltd. 46,253,000 98,834,452
- ------------------------------------------------------------------------------------------------------------
MTN Group Ltd. 5,614,494 88,027,655
- ------------------------------------------------------------------------------------------------------------
Orascom Telecom
Holding SAE 20,261,683 305,140,898
- ------------------------------------------------------------------------------------------------------------
SK Telecom Co. Ltd.
ADR 4 2,028,700 45,442,880
-----------------
912,439,823
- ------------------------------------------------------------------------------------------------------------
UTILITIES -- 0.3%
- ------------------------------------------------------------------------------------------------------------
GAS UTILITIES -- 0.3%
Gail India Ltd. 3,055,905 31,745,001
-----------------
Total Common Stocks
(Cost $7,676,675,791) 10,833,592,491
PRINCIPAL
AMOUNT
- ------------------------------------------------------------------------------------------------------------
NON-CONVERTIBLE CORPORATE BONDS AND NOTES -- 0.0%
Trent Ltd., 2% Sec. Debs., 7/7/10
(Cost $744,305) $ 32,425,500 696,887
UNITS
- ------------------------------------------------------------------------------------------------------------
RIGHTS, WARRANTS AND CERTIFICATES -- 0.0%
Trent Ltd. Wts.,
Exp. 1/7/10 1,5 (Cost $0) 63,757 190,881
SHARES
- ------------------------------------------------------------------------------------------------------------
INVESTMENT COMPANY -- 0.5%
Oppenheimer Institutional
Money Market Fund, Cl. E, 3.99% 3,6
(Cost $58,958,587) 58,958,587 58,958,587
- ------------------------------------------------------------------------------------------------------------
Total Investments, at Value (excluding Investments
Purchased with Cash Collateral from Securities Loaned)
(Cost $7,736,378,683) 10,893,438,846
PRINCIPAL
AMOUNT
- ------------------------------------------------------------------------------------------------------------
INVESTMENTS PURCHASED WITH CASH COLLATERAL FROM
SECURITIES LOANED -- 3.2% 7
American Express
Centurion, 3.17%, 3/17/08 $ 12,001,125 12,001,125
- ------------------------------------------------------------------------------------------------------------
Undivided interest of 0.11% in joint repurchase agreement (Principal
Amount/Value $1,100,000,000, with a maturity value of $1,100,256,667)
with Barclays Capital, 2.80%, dated 2/29/08, to be repurchased at
$1,200,280 on 3/3/08, collateralized by Government National Mortgage
Assn., 0%-9%, 7/15/09-2/15/38, with a value of $1,122,000,000
1,200,000 1,200,000
- ------------------------------------------------------------------------------------------------------------
Undivided interest of 30% in joint repurchase agreement (Principal
Amount/Value $500,000,000, with a maturity value of $500,130,625)
with Citigroup Global Markets, Inc., 3.135%, dated 2/29/08, to be
repurchased at $150,039,188 on 3/3/08, collateralized by U.S. Agency
Mortgages, 3.475%, 6/25/37, with a value of $510,000,000
150,000,000 150,000,000
- ------------------------------------------------------------------------------------------------------------
Undivided interest of 37.20% in joint repurchase agreement (Principal
Amount/Value $25,000,000, with a maturity value of $25,006,719) with
DLJ/Pershing Division, 3.225%, dated 2/29/08, to be repurchased at
$9,302,499 on 3/3/08, collateralized by U.S. Agency Mortgages,
3.50%-6.886%, 5/15/17-5/16/37, with a value of $25,500,000
9,300,000 9,300,000
19 | OPPENHEIMER DEVELOPING MARKETS FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------------
INVESTMENTS PURCHASED WITH CASH COLLATERAL FROM SECURITIES LOANED
Continued
Undivided interest of 9.18% in joint repurchase agreement (Principal
Amount/Value $2,000,000,000, with a maturity value of $2,000,530,000)
with BNP Paribas Securities Corp., 3.18%, dated 2/29/08, to be
repurchased at $183,646,205 on 3/3/08, collateralized by U.S. Agency
Mortgages, 0%-6.50%, 2/1/34-3/1/38, with a value of $2,040,000,000 $ 183,597,552 $ 183,597,552
-----------------
Total Investments Purchased with Cash Collateral from Securities Loaned
(Cost $356,098,677) 356,098,677
- ------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE
(COST $8,092,477,360) 101.5% 11,249,537,523
- ------------------------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS (1.5) (169,838,253)
---------------------------------
NET ASSETS 100.0% $ 11,079,699,270
=================================
20 | OPPENHEIMER DEVELOPING MARKETS FUND
FOOTNOTES TO STATEMENT OF INVESTMENTS
- --------------------------------------------------------------------------------
1. Non-income producing security.
2. Represents securities sold under Rule 144A, which are exempt from
registration under the Securities Act of 1933, as amended. These securities have
been determined to be liquid under guidelines established by the Board of
Trustees. These securities amount to $272,833,570 or 2.46% of the Fund's net
assets as of February 29, 2008.
3. Is or was an affiliate, as defined in the Investment Company Act of 1940, at
or during the period ended February 29, 2008, by virtue of the Fund owning at
least 5% of the voting securities of the issuer or as a result of the Fund and
the issuer having the same investment adviser. Transactions during the period in
which the issuer was an affiliate are as follows:
SHARES SHARES
AUGUST 31, GROSS GROSS FEBRUARY 29,
2007 ADDITIONS REDUCTIONS 2008
- -----------------------------------------------------------------------------------------------------------------------
All America Latina Logistic a 15,875,900 -- -- 15,875,900
All America Latina Logistica, GDR 1,189,000 -- 1,189,000 --
Banco Latinoamericano de Exportaciones SA, Cl. E 2,745,485 -- 879,600 1,865,885
Commercial International Bank, Sponsored GDR 4,099,223 -- 4,099,223 b --
Commercial International Bank, Sponsored GDR a 2,675,100 -- -- 2,675,100
Finetec Corp. 1,676,105 -- 904,775 771,330
Jeonbuk Bank a 2,439,433 97,577 519,330 2,017,680
Medinet Nasr for Housing & Development Co. a 1,307,209 6,012,221 b 2,614,362 4,705,068
Oppenheimer Institutional Money Market Fund, Cl. E 556,120,958 1,487,077,968 1,984,240,339 58,958,587
Realtek Semiconductor Corp. -- 23,198,000 -- 23,198,000
SARE Holding SA de CV, Cl. B 34,880,970 -- -- 34,880,970
TMB Bank Public Co. Ltd. a 833,118,889 -- -- 833,118,889
Varitronix International Ltd. 28,515,000 -- 7,830,000 20,685,000
DIVIDEND REALIZED
VALUE INCOME GAIN (LOSS)
- ----------------------------------------------------------------------------------------------------------------------
All America Latina Logistica a $ -- c $ -- $ --
All America Latina Logistica, GDR -- -- 13,062,560
Banco Latinoamericano de Exportaciones SA, Cl. E 25,077,494 1,208,013 (3,478,730)
Commercial International Bank, Sponsored GDR -- -- 134,454
Commercial International Bank, Sponsored GDR a -- c -- --
Finetec Corp. 9,378,902 221,623 2,443,758
Jeonbuk Bank a -- c 108,278 810,215
Medinet Nasr for Housing & Development Co. a -- c 886,166 29,606,782
Oppenheimer Institutional Money Market Fund, Cl. E 58,958,587 9,469,472 --
Realtek Semiconductor Corp. 68,961,820 -- --
SARE Holding SA de CV, Cl. B 49,504,271 -- --
TMB Bank Public Co. Ltd. a -- c -- --
Varitronix International Ltd. 12,381,985 439,267 (76,894)
-------------------------------------------------
$ 224,263,059 $ 12,332,819 $42,502,145
=================================================
a. No longer an affiliate as of February 29, 2008.
b. All or a portion is the result of a corporate action.
c. The security is no longer an affiliate, therefore, the value has been
excluded from this table.
21 | OPPENHEIMER DEVELOPING MARKETS FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
4. Partial or fully-loaned security. See Note 7 of accompanying Notes.
5. Illiquid security. The aggregate value of illiquid securities as of February
29, 2008 was $36,208,291, which represents 0.33% of the Fund's net assets. See
Note 6 of accompanying Notes.
6. Rate shown is the 7-day yield as of February 29, 2008.
7. The security/securities have been segregated to satisfy the forward
commitment to return the cash collateral received in securities lending
transactions upon the borrower's return of the securities loaned. See Note 7 of
accompanying Notes.
DISTRIBUTION OF INVESTMENTS REPRESENTING GEOGRAPHIC HOLDINGS, AS A PERCENTAGE OF
TOTAL INVESTMENTS AT VALUE, IS AS FOLLOWS:
GEOGRAPHIC HOLDINGS VALUE PERCENT
- ------------------------------------------------------------------
Brazil $ 2,051,506,447 18.2%
India 1,660,356,632 14.8
Taiwan 1,289,797,463 11.5
Mexico 970,353,063 8.6
South Africa 669,802,171 5.9
Russia 566,085,128 5.0
Egypt 522,337,263 4.6
Korea, Republic of South 491,566,285 4.4
Turkey 470,946,367 4.2
China 438,840,797 3.9
United States 426,006,385 3.8
Indonesia 396,524,290 3.5
Hong Kong 347,633,542 3.1
United Kingdom 198,002,357 1.8
Philippines 157,276,254 1.4
Cayman Islands 132,957,648 1.2
Chile 111,843,598 1.0
Thailand 75,519,877 0.7
France 54,211,367 0.5
Luxembourg 46,419,135 0.4
Portugal 34,354,546 0.3
Norway 32,386,288 0.3
Lebanon 31,928,428 0.3
Israel 27,238,353 0.2
Panama 25,077,494 0.2
Bermuda 12,381,985 0.1
Argentina 8,184,360 0.1
-----------------------------
Total $ 11,249,537,523 100.0%
=============================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
22 | OPPENHEIMER DEVELOPING MARKETS FUND
STATEMENT OF ASSETS AND LIABILITIES Unaudited
- --------------------------------------------------------------------------------
February 29, 2008
- -------------------------------------------------------------------------------------------
ASSETS
- -------------------------------------------------------------------------------------------
Investments, at value -- see accompanying statement of investments:
Unaffiliated companies (cost $7,880,477,725) $11,025,274,464
Affiliated companies (cost $211,999,635) 224,263,059
-----------------
11,249,537,523
- -------------------------------------------------------------------------------------------
Cash 29,068,154
- -------------------------------------------------------------------------------------------
Cash -- foreign currencies (cost $ 123,029,779) 124,422,485
- -------------------------------------------------------------------------------------------
Receivables and other assets:
Investments sold 69,031,878
Interest and dividends 21,790,919
Shares of beneficial interest sold 12,164,167
Other 1,968,517
-----------------
Total assets 11,507,983,643
- -------------------------------------------------------------------------------------------
LIABILITIES
- -------------------------------------------------------------------------------------------
Return of collateral for securities loaned 356,337,576
- -------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 32,665,718
Shares of beneficial interest redeemed 29,967,703
Distribution and service plan fees 3,420,328
Foreign capital gains tax 1,693,871
Transfer and shareholder servicing agent fees 1,176,667
Trustees' compensation 889,315
Shareholder communications 347,937
Other 1,785,258
-----------------
Total liabilities 428,284,373
- -------------------------------------------------------------------------------------------
NET ASSETS $11,079,699,270
=================
- -------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- -------------------------------------------------------------------------------------------
Paid-in capital $ 7,209,861,402
- -------------------------------------------------------------------------------------------
Accumulated net investment loss (98,285,501)
- -------------------------------------------------------------------------------------------
Accumulated net realized gain on investments and foreign currency
transactions 809,981,238
- -------------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of assets
and liabilities denominated in foreign currencies 3,158,142,131
-----------------
NET ASSETS $11,079,699,270
=================
23 | OPPENHEIMER DEVELOPING MARKETS FUND
STATEMENTS OF ASSETS AND LIABILITIES / Unaudited / Continued
- --------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
- -------------------------------------------------------------------------------------------
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$8,577,678,155 and 188,156,266 shares of beneficial interest outstanding) $45.59
Maximum offering price per share (net asset value plus sales charge of 5.75%
of offering price) $48.37
- ---------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales
charge) and offering price per share (based on net assets of $306,538,915 and
6,794,179 shares of beneficial interest outstanding) $45.12
- ---------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales
charge) and offering price per share (based on net assets of $1,116,570,645 and
25,155,975 shares of beneficial interest outstanding) $44.39
- ---------------------------------------------------------------------------------------------
Class N Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales
charge) and offering price per share (based on net assets of $366,941,827 and
8,217,765 shares of beneficial interest outstanding) $44.65
- ---------------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share(based on net
assets of $711,969,728 and 15,625,256 shares of beneficial interest outstanding) $45.57
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
24 | OPPENHEIMER DEVELOPING MARKETS FUND
STATEMENT OF OPERATIONS Unaudited
- --------------------------------------------------------------------------------
For the Six Months Ended February 29, 2008
- -------------------------------------------------------------------------------------------
INVESTMENT INCOME
- -------------------------------------------------------------------------------------------
Dividends:
Unaffiliated companies (net of foreign withholding taxes of $6,231,525) $65,093,431
Affiliated companies (net of foreign withholding taxes of $65,190) 12,332,819
- -------------------------------------------------------------------------------------------
Portfolio lending fees 430,342
- -------------------------------------------------------------------------------------------
Interest (net of foreign withholding taxes of $ 1,238) 43,963
- -------------------------------------------------------------------------------------------
Other income 6,712
-------------
Total investment income 77,907,267
- -------------------------------------------------------------------------------------------
EXPENSES
- -------------------------------------------------------------------------------------------
Management fees 48,838,946
- -------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 10,247,492
Class B 1,689,813
Class C 5,995,541
Class N 943,102
- -------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 5,711,253
Class B 205,332
Class C 552,208
Class N 524,206
Class Y 176,180
- -------------------------------------------------------------------------------------------
Shareholder communications:
Class A 122,018
Class B 19,903
Class C 18,652
Class N 2,599
Class Y 5,478
- -------------------------------------------------------------------------------------------
Custodian fees and expenses 2,893,656
- -------------------------------------------------------------------------------------------
Trustees' compensation 124,604
- -------------------------------------------------------------------------------------------
Other 203,542
-------------
Total expenses 78,274,525
Less reduction to custodian expenses (15,761)
Less waivers and reimbursements of expenses (185,408)
-------------
Net expenses 78,073,356
- -------------------------------------------------------------------------------------------
NET INVESTMENT LOSS (166,089)
25 | OPPENHEIMER DEVELOPING MARKETS FUND
STATEMENT OF OPERATIONS Unaudited / Continued
- --------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
- -------------------------------------------------------------------------------------------
Net realized gain on:
Investments:
Unaffiliated companies (net of foreign capital gains tax of $420,646) $1,099,141,269
Affiliated companies 42,502,145
Foreign currency transactions 84,477,937
----------------
Net realized gain 1,226,121,351
- -------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on:
Investments (652,918,638)
Translation of assets and liabilities denominated in foreign currencies 163,341,328
----------------
Net change in unrealized appreciation (489,577,310)
- -------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 736,377,952
================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
26 | OPPENHEIMER DEVELOPING MARKETS FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
FEBRUARY 29, 2008 AUGUST 31,
(UNAUDITED) 2007
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
OPERATIONS
- --------------------------------------------------------------------------------------------------
Net investment income (loss) $ (166,089) $ 73,212,851
- --------------------------------------------------------------------------------------------------
Net realized gain 1,226,121,351 1,340,466,943
- --------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (489,577,310) 1,951,005,385
-------------------------------------
Net increase in net assets resulting from operations 736,377,952 3,364,685,179
- --------------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
- --------------------------------------------------------------------------------------------------
Dividends from net investment income:
Class A (79,214,924) (91,729,881)
Class B (227,016) (1,271,892)
Class C (2,176,582) (5,634,397)
Class N (1,981,744) (2,431,388)
Class Y (7,685,979) (5,754,891)
-------------------------------------
(91,286,245) (106,822,449)
- --------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (1,098,606,498) (662,869,007)
Class B (40,293,949) (27,902,118)
Class C (146,138,131) (90,276,006)
Class N (46,220,737) (23,518,435)
Class Y (77,571,100) (31,274,753)
-------------------------------------
(1,408,830,415) (835,840,319)
- --------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
- --------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from beneficial interest transactions:
Class A 590,926,021 (423,168,905)
Class B (4,781,533) (56,410,264)
Class C 67,646,795 (68,910,009)
Class N 61,384,546 25,932,366
Class Y 246,381,194 120,000,866
-------------------------------------
961,557,023 (402,555,946)
- --------------------------------------------------------------------------------------------------
NET ASSETS
- --------------------------------------------------------------------------------------------------
Total increase 197,818,315 2,019,466,465
- --------------------------------------------------------------------------------------------------
Beginning of period 10,881,880,955 8,862,414,490
-------------------------------------
End of period (including accumulated net
investment loss of $98,285,501 and $6,833,167 respectively) $ 11,079,699,270 $ 10,881,880,955
=====================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
27 | OPPENHEIMER DEVELOPING MARKETS FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
FEBRUARY 29, 2008 YEAR ENDED AUGUST 31,
CLASS A (UNAUDITED) 2007 2006 2005 2004 2003
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of
period $ 48.37 $ 38.23 $ 31.11 $ 21.09 $ 16.92 $ 13.43
- -----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment income .02 1 .35 1 .42 1 .55 1 .48 .19
Net realized and unrealized gain 3.88 13.94 8.26 9.97 4.31 3.50
---------------------------------------------------------------------------------------------
Total from investment operations 3.90 14.29 8.68 10.52 4.79 3.69
- -----------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment
income (.45) (.50) (.45) (.37) (.62) (.20)
Distributions from net realized
gain (6.23) (3.65) (1.11) (.13) -- --
---------------------------------------------------------------------------------------------
Total dividends and/or
distributions to shareholders (6.68) (4.15) (1.56) (.50) (.62) (.20)
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 45.59 $ 48.37 $ 38.23 $ 31.11 $ 21.09 $ 16.92
=============================================================================================
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 6.87% 39.63% 28.41% 50.42% 28.61% 27.93%
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $ 8,577,678 $ 8,577,017 $ 7,069,819 $ 4,104,558 $ 1,549,854 $ 588,450
- -----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 9,245,966 $ 8,202,261 $ 6,540,507 $ 2,739,224 $ 1,145,452 $ 374,841
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 0.09% 0.80% 1.11% 2.01% 1.64% 1.42%
Total expenses 1.24% 4 1.32% 4 1.37% 1.43% 1.52% 1.81%
Expenses after payments,waivers
and/or reimbursements and
reduction to custodian expenses 1.24% 1.32% 1.37% 1.43% 1.52% 1.76%
- ----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 27% 40% 65% 28% 15% 6%
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 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 less than one full year.
4. Total expenses including indirect expenses from affiliated fund were as
follows:
Six Months Ended February 29, 2008 1.24%
Year Ended August 31, 2007 1.32%
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
28 | OPPENHEIMER DEVELOPING MARKETS FUND
SIX MONTHS
ENDED
FEBRUARY 29, 2008 YEAR ENDED AUGUST 31,
CLASS B (UNAUDITED) 2007 2006 2005 2004 2003
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 47.75 $ 37.75 $ 30.78 $ 20.87 $ 16.79 $ 13.32
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.17) 1 .02 1 .11 1 .31 1 .12 .09
Net realized and unrealized gain 3.81 13.80 8.21 9.88 4.46 3.47
--------------------------------------------------------------------------------
Total from investment operations 3.64 13.82 8.32 10.19 4.58 3.56
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to
shareholders:
Dividends from net investment income (.04) (.17) (.24) (.15) (.50) (.09)
Distributions from net realized gain (6.23) (3.65) (1.11) (.13) -- --
--------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (6.27) (3.82) (1.35) (.28) (.50) (.09)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 45.12 $ 47.75 $ 37.75 $ 30.78 $ 20.87 $ 16.79
================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 6.46% 38.62% 27.44% 49.14% 27.50% 26.98%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 306,539 $ 329,278 $ 308,973 $ 222,723 $ 119,749 $ 84,705
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 339,802 $ 327,758 $ 313,463 $ 169,763 $ 117,271 $ 62,676
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income (loss) (0.68)% 0.04% 0.30% 1.15% 0.61% 0.66%
Total expenses 2.02% 4 2.06% 4 2.14% 2.24% 2.41% 2.67%
Expenses after payments, waivers and/or
reimbursements and reduction to custodian
expenses 2.02% 2.06% 2.14% 2.24% 2.41% 2.52%
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 27% 40% 65% 28% 15% 6%
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 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 less than one full year.
4. Total expenses including indirect expenses from affiliated fund were as
follows:
Six Months Ended February 29, 2008 2.02%
Year Ended August 31, 2007 2.06%
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
29 | OPPENHEIMER DEVELOPING MARKETS FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
FEBRUARY 29, 2008 YEAR ENDED AUGUST 31,
CLASS C (UNAUDITED) 2007 2006 2005 2004 2003
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 47.11 $ 37.33 $ 30.49 $ 20.70 $ 16.67 $ 13.25
- --------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations
Net investment income (loss) (.16) 1 .04 1 .15 1 .34 1 .31 .10
Net realized and unrealized gain 3.76 13.62 8.10 9.79 4.25 3.44
---------------------------------------------------------------------------------
Total from investment operations 3.60 13.66 8.25 10.13 4.56 3.54
- --------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to
shareholders:
Dividends from net investment income (.09) (.23) (.30) (.21) (.53) (.12)
Distributions from net realized gain (6.23) (3.65) (1.11) (.13) -- --
---------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (6.32) (3.88) (1.41) (.34) (.53) (.12)
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 44.39 $ 47.11 $ 37.33 $ 30.49 $ 20.70 $ 16.67
=================================================================================
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 6.47% 38.67% 27.50% 49.29% 27.60% 27.05%
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 1,116,570 $ 1,124,129 $ 945,369 $ 450,012 $ 175,025 $ 77,081
- --------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 1,203,586 $ 1,072,232 $ 832,650 $ 294,791 $ 145,460 $ 52,236
- --------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income (loss) (0.65)% 0.09% 0.42% 1.28% 0.83% 0.66%
Total expenses 1.98% 4 2.03% 4 2.09% 2.17% 2.31% 2.57%
Expenses after payments, waivers and/or
reimbursements and reduction to
custodian expenses 1.98% 2.03% 2.09% 2.17% 2.31% 2.52%
- --------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 27% 40% 65% 28% 15% 6%
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 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 less than one full year.
4. Total expenses including indirect expenses from affiliated fund were as
follows:
Six Months Ended February 29, 2008 1.98%
Year Ended August 31, 2007 2.03%
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
30 | OPPENHEIMER DEVELOPING MARKETS FUND
SIX MONTHS
ENDED
FEBRUARY 29, 2008 YEAR ENDED AUGUST 31,
CLASS N (UNAUDITED) 2007 2006 2005 2004 2003
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -----------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 47.44 $ 37.59 $ 30.67 $ 20.84 $ 16.77 $ 13.36
- -----------------------------------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment income (loss) (.08) 1 .17 1 .30 1 .45 1 .45 .22
Net realized and unrealized gain 3.79 13.71 8.12 9.83 4.22 3.41
----------------------------------------------------------------------------
Total from investment operations 3.71 13.88 8.42 10.28 4.67 3.63
- -----------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to
shareholders:
Dividends from net investment income (.27) (.38) (.39) (.32) (.60) (.22)
Distributions from net realized gain (6.23) (3.65) (1.11) (.13) -- --
----------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (6.50) (4.03) (1.50) (.45) (.60) (.22)
- -----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 44.65 $ 47.44 $ 37.59 $ 30.67 $ 20.84 $ 16.77
============================================================================
- -----------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 6.62% 39.09% 27.93% 49.84% 28.16% 27.73%
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $ 366,942 $ 333,271 $ 240,673 $ 98,236 $ 26,110 $ 8,709
- -----------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 380,271 $ 294,086 $ 194,085 $ 57,727 $ 18,770 $ 4,196
- -----------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income (loss) (0.34)% 0.40% 0.81% 1.67% 1.31% 1.27%
Total expenses 1.66% 4 1.75% 4 1.75% 1.82% 1.99% 2.08%
Expenses after payments, waivers
and/or reimbursements and
reduction to custodian expenses 1.66% 1.74% 1.73% 1.80% 1.88% 1.99%
- -----------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 27% 40% 65% 28% 15% 6%
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 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 less than one full year.
4. Total expenses including indirect expenses from affiliated fund were as
follows:
Six Months Ended February 29, 2008 1.66%
Year Ended August 31, 2007 1.75%
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
31 | OPPENHEIMER DEVELOPING MARKETS FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
FEBRUARY 29, 2008 YEAR ENDED AUGUST 31,
CLASS Y (UNAUDITED) 2007 2006 1
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 48.43 $ 38.28 $ 32.15
- -------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income 2 .09 .54 .65
Net realized and unrealized gain 3.90 13.93 7.15
--------------------------------------------------------
Total from investment operations 3.99 14.47 7.80
- -------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.62) (.67) (.56)
Distributions from net realized gain (6.23) (3.65) (1.11)
--------------------------------------------------------
Total dividends and/or distributions to shareholders (6.85) (4.32) (1.67)
- -------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 45.57 $ 48.43 $ 38.28
========================================================
- -------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 7.02% 40.17% 24.78%
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 711,970 $ 518,186 $ 297,580
- -------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 652,220 $ 416,051 $ 159,042
- -------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income 0.37% 1.24% 1.76%
Total expenses 5 0.94% 6,7 0.94% 6,7 0.97%
- -------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 27% 40% 65%
1. For the period from September 7, 2005 (inception of offering) to August 31,
2006.
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 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 less than one full year.
5. Reduction to custodian expenses less than 0.005%.
6. Total expenses including indirect expenses from affiliated fund were as
follows:
Six Months Ended February 29, 2008 0.94%
Year Ended August 31, 2007 0.94%
7. Voluntary waiver or reimbursement of indirect management fees less than
0.005%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
32 | OPPENHEIMER DEVELOPING MARKETS FUND
NOTES TO FINANCIAL STATEMENTS Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Developing Markets 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 aggressively seek capital
appreciation. The Fund's investment adviser 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 72
months 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 trading. Securities may be
valued primarily using dealer-supplied valuations or a portfolio pricing service
authorized by the Board of Trustees. Securities traded on a registered U.S.
securities exchange 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 whose principal exchange is NASDAQ R are valued based on the closing
price reported by NASDAQ prior to the time when the Fund's assets are valued. In
the absence of a sale, the security is valued at the last sale price on the
prior trading day, if it is within the spread of the closing "bid" and "asked"
prices, and if not, at the closing bid price.Securities traded on foreign
exchanges are valued based on the last sale price on the principal exchange on
which the security is traded, 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, collateralized
mortgage obligations and other asset-backed
33 | OPPENHEIMER DEVELOPING MARKETS FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
securities will be valued at the mean between the "bid" and "asked" prices.
Securities for which market quotations are not readily available are valued at
their fair value. 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. Shares of a
registered investment company that are not traded on an exchange are valued at
the acquired investment company's net asset value per share. "Money market-type"
debt instruments with remaining maturities of sixty days or less are valued at
cost adjusted by the amortization of discount or premium to maturity (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
Exchange, normally 4:00 P.M. Eastern time, on each day the Exchange is open for
trading. Foreign exchange rates may be valued primarily using a reliable bank,
dealer or service authorized by the Board of Trustees.
Reported net realized gains and losses from foreign currency transactions
arise from sales of portfolio securities, sales and maturities of short-term
securities, sales of foreign currencies, exchange rate fluctuations 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 appreciation and depreciation on the
translation of assets and liabilities denominated in foreign currencies 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.
- -------------------------------------------------------------------------------
INVESTMENT IN OPPENHEIMER INSTITUTIONAL MONEY MARKET FUND. The Fund is permitted
to invest daily available cash balances in an affiliated money market fund. The
Fund may invest the available cash in Class E shares of Oppenheimer
Institutional Money Market Fund ("IMMF") to seek current income while preserving
liquidity. 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 adviser 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 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.
34 | OPPENHEIMER DEVELOPING MARKETS FUND
JOINT REPURCHASE AGREEMENTS. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the Fund, along with other affiliated funds
advised by the Manager, may transfer uninvested cash balances into joint trading
accounts on a daily basis. These balances are invested in one or more repurchase
agreements. Securities pledged as collateral for repurchase agreements are held
by a custodian bank until the agreements mature. Each agreement requires that
the market value of the collateral be sufficient to cover payments of interest
and principal. If the seller of the agreement defaults and the value of the
collateral declines, or if the seller enters an insolvency proceeding,
realization of the value of the collateral by the Fund may be delayed or
limited.
- --------------------------------------------------------------------------------
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 Fund files income tax returns in U.S. federal and applicable state
jurisdictions. The statute of limitations on the Fund's tax return filings
generally remain open for the three preceding fiscal reporting period ends.
Net investment income (loss) and net realized gain (loss) may differ for
financial statement and tax purposes. The character of dividends and
distributions made during the fiscal year from net investment income or net
realized gains may differ from their ultimate characterization for federal
income tax purposes. Also, due to timing of dividends and distributions, the
fiscal year in which amounts are distributed may differ from the fiscal year in
which the income or net realized gain was recorded by the Fund.
As of February 29, 2008, the Fund had available for federal income tax
purposes an estimated capital loss carryforward of zero. This estimated capital
loss carryforward represents carryforward as of the end of the last fiscal year,
increased for losses deferred under tax accounting rules to the current fiscal
year and is increased or decreased by capital losses or gains realized in the
first six months of the current fiscal year. During the six months ended
February 29, 2008, it is estimated that the Fund will utilize $3,338,946 of
capital loss carryforward to offset realized capital gains. During the fiscal
year ended August 31, 2007, the Fund did not utilize any capital loss
carryforward to offset capital gains realized in that fiscal year.
As of August 31, 2007, the Fund had available for federal income tax
purposes post-October foreign currency losses of $3,338,946.
35 | OPPENHEIMER DEVELOPING MARKETS FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
The approximate 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 February 29, 2008 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.
Federal tax cost of securities $ 8,095,462,091
Federal tax cost of other investments 109,899,194
---------------
Total federal tax cost $ 8,205,361,285
===============
Gross unrealized appreciation $ 3,611,060,304
Gross unrealized depreciation (455,728,288)
---------------
Net unrealized appreciation $ 3,155,332,016
===============
- --------------------------------------------------------------------------------
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 six months ended February 29, 2008,
the Fund's projected benefit obligations, payments to retired trustees and
accumulated liability were as follows:
Projected Benefit Obligations Increased $ 3,093
Payments Made to Retired Trustees 67,222
Accumulated Liability as of February 29, 2008 563,609
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 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 compensation deferral plan.
- --------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations and
may differ from U.S. generally accepted accounting principles, are recorded on
the ex-dividend date.
36 | OPPENHEIMER DEVELOPING MARKETS FUND
Income and capital gain distributions, if any, are declared and paid annually or
at other times as deemed necessary by the Manager.
- --------------------------------------------------------------------------------
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 is recognized on an accrual basis. Discount and
premium, which are included in interest income on the Statement of Operations,
are amortized or accreted daily.
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
OTHER. The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America 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 increases and
decreases in net assets from operations during the reporting period. Actual
results could differ from those estimates.
37 | OPPENHEIMER DEVELOPING MARKETS FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
2. SHARES OF BENEFICIAL INTEREST
The Fund has authorized an unlimited number of no par value shares of beneficial
interest of each class. Transactions in shares of beneficial interest were as
follows:
SIX MONTHS ENDED FEBRUARY 29, 2008 YEAR ENDED AUGUST 31, 2007
SHARES AMOUNT SHARES AMOUNT
- --------------------------------------------------------------------------------------------------------------------
CLASS A
Sold 21,251,602 $ 1,075,582,470 46,697,263 $ 2,015,064,608
Dividends and/or
distributions reinvested 21,030,819 1,049,017,203 16,292,750 653,176,233
Redeemed (31,442,582) (1,533,673,652) 1 (70,617,013) (3,091,409,746) 2
-----------------------------------------------------------------------------------
Net increase (decrease) 10,839,839 $ 590,926,021 (7,627,000) $ (423,168,905)
===================================================================================
- --------------------------------------------------------------------------------------------------------------------
CLASS B
Sold 337,626 $ 16,852,388 624,692 $ 26,617,437
Dividends and/or
distributions reinvested 724,254 35,814,011 643,692 25,612,492
Redeemed (1,162,997) (57,447,932) 1 (2,557,722) (108,640,193) 2
-----------------------------------------------------------------------------------
Net decrease (101,117) $ (4,781,533) (1,289,338) $ (56,410,264)
===================================================================================
- --------------------------------------------------------------------------------------------------------------------
CLASS C
Sold 2,240,126 $ 110,248,442 3,707,583 $ 156,195,935
Dividends and/or
distributions reinvested 2,258,768 109,866,470 1,810,985 71,063,055
Redeemed (3,206,182) (152,468,117) 1 (6,981,687) (296,168,999) 2
-----------------------------------------------------------------------------------
Net increase (decrease) 1,292,712 $ 67,646,795 (1,463,119) $ (68,910,009)
===================================================================================
- --------------------------------------------------------------------------------------------------------------------
CLASS N
Sold 2,005,981 $ 101,171,899 2,948,586 $ 125,871,671
Dividends and/or
distributions reinvested 931,343 45,544,360 626,895 24,724,750
Redeemed (1,745,329) (85,331,713) 1 (2,951,500) (124,664,055) 2
-----------------------------------------------------------------------------------
Net increase 1,191,995 $ 61,384,546 623,981 $ 25,932,366
===================================================================================
- --------------------------------------------------------------------------------------------------------------------
CLASS Y
Sold 5,650,895 $ 279,412,612 7,627,146 $ 338,406,654
Dividends and/or
distributions reinvested 1,462,433 72,858,430 753,234 30,151,953
Redeemed (2,188,447) (105,889,848) 1 (5,454,647) (248,557,741) 2
-----------------------------------------------------------------------------------
Net increase 4,924,881 $ 246,381,194 2,925,733 $ 120,000,866
===================================================================================
1. Net of redemption fees of $187,891, $6,905, $24,459, $7,728 and $13,254 for
Class A, Class B, Class C, Class N and Class Y, respectively.
2. Net of redemption fees of $95,545, $3,818, $12,490, $3,426 and $4,846 for
Class A, Class B, Class C, Class N and Class Y, respectively.
38 | OPPENHEIMER DEVELOPING MARKETS FUND
- --------------------------------------------------------------------------------
3. PURCHASES AND SALES OF SECURITIES
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations and investments in IMMF, for the six months ended
February 29, 2008, were as follows:
PURCHASES SALES
- ----------------------------------------------------------
Investment securities $ 3,060,749,743 $ 3,220,369,187
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
MANAGEMENT FEES. Under the investment advisory agreement, the Fund pays the
Manager a management fee based on the daily net assets of the Fund at an annual
rate as shown in the following table:
FEE SCHEDULE
---------------------------------
Up to $250 million 1.00%
Next $250 million 0.95
Next $500 million 0.90
Next $6 billion 0.85
Next $3 billion 0.80
Over $10 billion 0.75
- --------------------------------------------------------------------------------
TRANSFER AGENT FEES. OppenheimerFunds Services ("OFS"), a division of the
Manager, acts as the transfer and shareholder servicing agent for the Fund. The
Fund pays OFS a per account fee. For the six months ended February 29, 2008, the
Fund paid $7,340,876 to OFS for services to the Fund.
Additionally, Class Y shares are subject to minimum fees of $10,000
annually 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 (the
"Plan") for Class A shares under Rule 12b-1 of the Investment Company Act of
1940. Under the Plan, the Fund 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 institutions periodically for providing personal service and
maintenance of accounts of their customers that hold Class A shares. Any
unreimbursed expenses the Distributor incurs with respect to Class A shares in
any fiscal year cannot be recovered in subsequent periods. Fees incurred by the
Fund under the Plan are detailed in the Statement of Operations.
39 | OPPENHEIMER DEVELOPING MARKETS FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued
DISTRIBUTION AND SERVICE PLANS FOR CLASS B, CLASS C AND CLASS N SHARES. The Fund
has adopted Distribution and Service Plans (the "Plans") for Class B, Class C
and Class N shares under Rule 12b-1 of the Investment Company Act of 1940 to
compensate the Distributor for its services in connection with the distribution
of those shares and servicing accounts. Under the Plans, the Fund pays the
Distributor an annual asset-based sales charge of 0.75% on Class B and Class C
shares and 0.25% on Class N shares. The Distributor also receives a service fee
of 0.25% per year under each plan. If either the Class B, Class C or Class N
plan is terminated by the Fund or by the shareholders of a class, the Board of
Trustees and its independent trustees must determine whether the Distributor
shall be entitled to payment from the Fund of all or a portion of the service
fee and/or asset-based sales charge in respect to shares sold prior to the
effective date of such termination. The Distributor's aggregate uncompensated
expenses under the Plans at December 31, 2007 for Class B, Class C and Class N
shares were $397,292, $8,706,055 and $2,595,586, 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
SIX MONTHS ENDED DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR
- --------------------------------------------------------------------------------------------------
February 29, 2008 $ 403,111 $ 45,018 $ 204,500 $ 74,933 $ 540
- --------------------------------------------------------------------------------
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. 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 six months ended February 29, 2008, the Manager waived $185,408
for IMMF management fees.
- --------------------------------------------------------------------------------
5. FOREIGN CURRENCY CONTRACTS
The Fund may enter into foreign currency exchange contracts ("forward
contracts") for the purchase or sale of a foreign currency at a negotiated rate
at a future date.
40 | OPPENHEIMER DEVELOPING MARKETS FUND
Foreign currency exchange contracts are reported on a schedule following
the Statement of Investments. Forward contracts will be valued daily based upon
the closing prices of the forward currency rates determined at the close of the
Exchange as provided by a bank, dealer or pricing service. The resulting
unrealized appreciation (depreciation) is reported in the Statement of Assets
and Liabilities as a receivable or payable and in the Statement of Operations
within the change in unrealized appreciation (depreciation). At contract close,
the difference between the original cost of the contract and the value at the
close date is recorded as a realized gain (loss) in the Statement of Operations.
Risks to the Fund include both market and credit risk. Market risk is the
risk that the value of the forward contract will depreciate due to unfavorable
changes in the exchange rates. Credit risk arises from the possibility that the
counterparty will default. If the counterparty defaults, the Fund's loss will
consist of the net amount of contractual payments that the Fund has not yet
received.
As of February 29, 2008, the Fund had no outstanding forward contracts.
- --------------------------------------------------------------------------------
6. ILLIQUID OR RESTRICTED SECURITIES AND CURRENCY
As of February 29, 2008, investments in securities included issues that are
illiquid. Investments may be illiquid because they do not have an active trading
market, making it difficult to value them or dispose of them promptly at an
acceptable price. The Fund will not invest more than 10% of its net assets
(determined at the time of purchase and reviewed periodically) in illiquid
securities. Securities that are illiquid are marked with an applicable footnote
on the Statement of Investments.
- --------------------------------------------------------------------------------
7. SECURITIES LENDING
The Fund lends portfolio securities from time to time in order to earn
additional income in the form of fees or interest on securities received as
collateral or the investment of any cash received as collateral. The loans are
secured by collateral (either securities, letters of credit, or cash) 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 each business day and any additional required collateral is
delivered to the Fund on the next business day. 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 and recognizes the gain
or loss in the fair value of the securities loaned that may occur during the
term of the loan. The Fund has the right under the lending agreement to recover
the securities from the borrower on demand. As of February 29, 2008, the Fund
had on loan securities valued at $337,487,778. Collateral of $356,337,576 was
received for the loans, all of which was received in cash and subsequently
invested in approved instruments or held as cash.
41 | OPPENHEIMER DEVELOPING MARKETS FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
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8. RECENT ACCOUNTING PRONOUNCEMENTS
In September 2006, Financial Accounting Standards Board ("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 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 February
29, 2008, 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.
42 | OPPENHEIMER DEVELOPING MARKETS FUND
PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES;
UPDATES TO STATEMENTS OF INVESTMENTS Unaudited
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The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which
the Fund votes proxies relating to securities ("portfolio proxies") held by the
Fund. A description of the Fund's Portfolio Proxy Voting Policies and Procedures
is available (i) without charge, upon request, by calling the Fund toll-free at
1.800.525.7048, (ii) on the Fund's website at www.oppenheimerfunds.com, and
(iii) on the SEC's website at www.sec.gov. In addition, the Fund is required to
file 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.
43 | OPPENHEIMER DEVELOPING MARKETS FUND
ITEM 2. CODE OF ETHICS.
Not applicable to semiannual reports.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable to semiannual reports.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable to semiannual reports.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS.
Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 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 02/29/2008, the registrant's principal executive officer and
principal financial officer found the registrant's disclosure controls and
procedures to provide reasonable assurances that information required to be
disclosed by the registrant in the reports that it files under the Securities
Exchange
Act of 1934 (a) is accumulated and communicated to registrant's management,
including its principal executive officer and principal financial officer, to
allow timely decisions regarding required disclosure, and (b) is recorded,
processed, summarized and reported, within the time periods specified in the
rules and forms adopted by the U.S. Securities and Exchange Commission.
There have been no changes in the registrant's internal controls over financial
reporting that occurred during the registrant's second fiscal quarter of the
period covered by this report that have materially affected, or are reasonably
likely to materially affect, the registrant's internal control over financial
reporting.
ITEM 12. EXHIBITS.
(a) (1) Not applicable to semiannual reports.
(2) Exhibits attached hereto.
(3) Not applicable.
(b) Exhibit attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Oppenheimer Developing Markets Fund
By: /s/ John V. Murphy
---------------------------
John V. Murphy
Principal Executive Officer
Date: 04/16/2008
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: 04/16/2008
By: /s/ Brian W. Wixted
---------------------------
Brian W. Wixted
Principal Financial Officer
Date: 04/16/2008