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 811-07255
---------
OPPENHEIMER INTERNATIONAL BOND 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: SEPTEMBER 30
------------
Date of reporting period: 03/31/2008
----------
ITEM 1. REPORTS TO STOCKHOLDERS.
March 31, 2008
- --------------------------------------------------------------------------------
Oppenheimer Management
International Bond Commentaries
Fund and
Semiannual
Report
- --------------------------------------------------------------------------------
MANAGEMENT COMMENTRIES
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
United States 13.9%
France 10.6
Germany 10.4
Japan 8.9
United Kingdom 7.9
Brazil 6.3
Canada 3.4
Australia 3.2
Peru 3.0
Russia 2.8
Portfolio holdings and allocations are subject to change. Percentages are as of
March 31, 2008, and are based on the total market value of investments.
REGIONAL ALLOCATION
[REGIONAL ALLOCATION CHART]
Europe 39.6%
United States/Canada 17.3
Latin America 17.1
Asia 14.9
Middle East/Africa 6.2
Emerging Europe 4.6
Supranational 0.3
Portfolio holdings and allocations are subject to change. Percentages are as of
March 31, 2008, and are based on the total market value of investments.
9 | OPPENHEIMER INTERNATIONAL BOND 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 6/15/95. Unless
otherwise noted, Class A returns include the current maximum initial sales
charge of 4.75%.
CLASS B shares of the Fund were first publicly offered on 6/15/95. 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 6/15/95. Unless
otherwise noted, Class C returns include the contingent deferred sales
charge of 1% for the 1-year period. Class C shares are subject to an
annual 0.75% asset-based sales charge.
CLASS N shares of the Fund were first publicly offered on 3/1/01. Class N
shares are offered only through retirement plans. Unless otherwise noted,
Class N returns include the contingent deferred sales charge of 1% for the
1-year period. Class N shares are subject to an annual 0.25% asset-based
sales charge.
10 | OPPENHEIMER INTERNATIONAL BOND FUND
CLASS Y shares of the Fund were first publicly offered on 9/27/04. Class Y
shares are offered only to certain institutional investors under special
agreement with the Distributor.
An explanation of the calculation of performance is in the Fund's
Statement of Additional Information.
11 | OPPENHEIMER INTERNATIONAL BOND 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 March
31, 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), or a $12.00 fee
imposed annually on accounts valued at less than $500.00 (subject to
exceptions described in the Statement of Additional Information).
Therefore, the
12 | OPPENHEIMER INTERNATIONAL BOND FUND
"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 OCTOBER 1, 2007 MARCH 31, 2008 MARCH 31, 2008
- ------------- ---------------- --------------- ----------------
Class A $ 1,000.00 $ 1,109.20 $ 4.76
Class B 1,000.00 1,105.10 9.04
Class C 1,000.00 1,105.60 8.51
Class N 1,000.00 1,105.40 6.97
Class Y 1,000.00 1,111.40 2.75
HYPOTHETICAL
(5% return before expenses)
Class A 1,000.00 1,020.50 4.56
Class B 1,000.00 1,016.45 8.66
Class C 1,000.00 1,016.95 8.15
Class N 1,000.00 1,018.40 6.68
Class Y 1,000.00 1,022.40 2.63
Expenses are equal to the Fund's annualized expense ratio for that class,
multiplied by the average account value over the period, multiplied by 183/366
(to reflect the one-half year period). Those annualized expense ratios,
excluding indirect expenses from affiliated fund, based on the 6-month period
ended March 31, 2008 are as follows:
CLASS EXPENSE RATIOS
- ---------- --------------
Class A 0.90%
Class B 1.71
Class C 1.61
Class N 1.32
Class Y 0.52
The expense ratios reflect reduction to custodian expenses and voluntary waivers
or reimbursements of expenses by the Fund's Manager and Transfer Agent that can
be terminated at any time, without advance notice. The "Financial Highlights"
tables in the Fund's financial statements, included in this report, also show
the gross expense ratios, without such waivers or reimbursements and reduction
to custodian expenses, if applicable.
13 | OPPENHEIMER INTERNATIONAL BOND FUND
STATEMENT OF INVESTMENTS March 31, 2008 / Unaudited
PRINCIPAL
AMOUNT VALUE
-------------- --------------
ASSET-BACKED SECURITIES -- 0.0%
Taganka Car Loan Finance plc, Automobile Asset-Backed
Certificates, Series 2006-1A, Cl. C, 6.161%, 11/14/13 (1,2)
(Cost $ 1,350,000) $ 1,350,000 $ 1,250,775
============== ==============
U.S.GOVERNMENT OBLIGATIONS -- 0.8%
U.S.Treasury Nts., 3.25%, 12/31/09 (3) (Cost $101,984,520) 100,000,000 102,851,600
============== ==============
FOREIGN GOVERNMENT OBLIGATIONS -- 61.8%
ARGENTINA -- 0.3%
Argentina (Republic of) Bonds:
3.092%, 8/3/12 (2) 10,266,875 8,727,562
7%,10/3/15 2,450,000 1,864,450
Series GDP, 0.971%, 12/15/35 (2) 14,920,000 1,797,860
Series V,7%, 3/28/11 18,993,000 17,193,943
Series VII, 7%, 9/12/13 4,700,000 3,850,280
-------------- --------------
Neuquen (Province Del) Sr. Sec. Nts., 8.656%, 10/18/14 (4) 3,375,000 3,299,063
--------------
36,733,158
--------------
AUSTRALIA -- 3.1%
New South Wales Treasury Corp. Bonds, Series 10RG, 7%, 12/1/10 18,325,000 AUD 16,824,581
-------------- --------------
New South Wales Treasury Corp. Sr. Unsec.Nts., 6%, 10/1/09 390,495,000 AUD 352,244,541
-------------- --------------
Queensland Treasury Corp. Unsec. Nts., Series 09G, 6%, 7/14/09 18,875,000 AUD 17,060,053
--------------
386,129,175
--------------
AUSTRIA -- 0.8%
Austria (Republic of) Unsec. Unsub. Nts.,Series E, 4%, 9/15/16 60,081,000 EUR 94,648,372
-------------- --------------
BELGIUM -- 0.7%
Belgium (Kingdom of) Bonds, Series 44,5%, 3/28/35 55,700,000 EUR 90,696,178
-------------- --------------
BRAZIL -- 3.6%
Brazil (Federal Republic of) Bonds:
6%,1/17/17 16,320,000 16,679,040
8%, 1/15/18 43,285,000 48,587,413
8.75%,2/4/25 2,135,000 2,620,713
8.875%,10/14/19 28,355,000 35,089,313
10.50%,7/14/14 17,650,000 22,459,625
-------------- --------------
Brazil (Federal Republic of) Nts.:
7.875%,3/7/15 4,000,000 4,530,000
10%,1/10/10 198,234,000 BRR 107,483,600
10%,1/1/12 142,758,000 BRR 75,753,593
10%,1/1/17 185,202,000 BRR 90,839,433
-------------- --------------
Brazil (Federal Republic of) Treasury Bills,10.697%, 7/1/08 (5) 92,400,000 BRR 51,253,749
--------------
455,296,479
--------------
14 | OPPENHEIMER INTERNATIONAL BOND FUND
PRINCIPAL
AMOUNT VALUE
------------------ ---------------
BULGARIA -- 0.0%
Bulgaria (Republic of) Bonds:
8.25%, 1/15/15 $ 1,500,000 $ 1,758,750
8.25%, 1/15/15 (4) 1,440,000 1,688,400
--------------
3,447,150
--------------
CANADA -- 3.2%
Canada (Government of) Nts.:
3.75%, 6/1/12 203,070,000 CAD 204,365,834
4.25%, 12/1/09 198,820,000 CAD 198,907,164
--------------
403,272,998
--------------
COLOMBIA -- 0.6%
Bogota Distrio Capital Sr. Bonds, 9.75%, 7/26/28 (4) 16,413,000,000 COP 7,649,836
------------------ --------------
Colombia (Republic of) Bonds:
7.375%, 9/18/37 3,390,000 3,644,250
10.75%, 1/15/13 12,180,000 15,115,380
12%, 10/22/15 19,665,000,000 COP 11,261,759
------------------ --------------
Colombia (Republic of) Nts.:
8.25%, 12/22/14 6,655,000 7,753,075
11.75%, 3/1/10 7,228,000,000 COP 4,015,724
------------------ --------------
Colombia (Republic of) Unsec. Nts., 7.375%, 1/27/17 11,650,000 12,914,025
--------------
EEB International Ltd. Sr. Unsec. Bonds, 8.75%, 10/31/14 (4) 6,850,000 7,089,750
--------------
69,443,799
--------------
COSTA RICA -- 0.0%
Costa Rica (Republic of) Unsec. Bonds, 9.995%, 8/1/20 2,730,000 3,552,413
------------------ --------------
DENMARK -- 0.6%
Denmark (Kingdom of) Bonds:
4%, 11/15/10 109,710,000 DKK 23,317,335
4%, 11/15/15 79,875,000 DKK 16,852,993
7%, 11/10/24 28,975,000 DKK 7,908,744
------------------ --------------
Denmark (Kingdom of) Nts., 4%, 8/15/08 115,510,000 DKK 24,428,186
--------------
72,507,258
--------------
DOMINICAN REPUBLIC -- 0.0%
Dominican Republic Unsec. Unsub. Bonds, Series REGS, 9.04%,
1/23/18 2,705,118 2,880,950
------------------ --------------
EGYPT -- 0.1%
Egypt (The Arab Republic of) Unsec. Unsub. Bonds, 8.75%,
7/15/12 (4) 54,260,000 EGP 10,183,242
------------------ --------------
EL SALVADOR -- 0.1%
El Salvador (Republic of) Bonds:
7.625%, 9/21/34 (4) 1,185,000 1,291,650
7.65%, 6/15/35 (4) 7,740,000 8,243,100
--------------
9,534,750
--------------
15 | OPPENHEIMER INTERNATIONAL BOND FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
PRINCIPAL
AMOUNT VALUE
--------------- --------------
FRANCE--10.1%
France (Government of) Obligations Assimilables du Tresor Bonds:
3.25%, 4/25/16 243,495,000 EUR $ 364,854,237
4%, 10/25/38 182,975,000 EUR 258,697,260
----------- --------------
France (Government of) Treasury Nts.:
3.75%, 1/12/13 293,355,000 EUR 462,283,871
4.50%, 7/12/12 116,140,000 EUR 188,528,329
--------------
1,274,363,697
--------------
GERMANY--9.8%
Germany (Federal Republic of) Bonds:
Series 03, 3.75%, 7/4/13 285,480,000 EUR 453,542,767
Series 05, 4%, 1/4/37 (6) 474,115,000 EUR 682,811,379
Series 07, 4.25%, 7/4/17 60,210,000 EUR 97,666,702
--------------
1,234,020,848
--------------
GHANA--0.1%
Ghana (Republic of) Bonds, 8.50%, 10/4/17 (4) 6,100,000 6,405,000
----------- --------------
GREECE--1.7%
Greece (Republic of) Bonds, 4.60%, 5/20/13 129,590,000 EUR 208,728,877
----------- --------------
GUATEMALA -- 0.0%
Guatemala (Republic of) Nts.:
10.25%, 11/8/11 (4) 160,000 186,080
10.25%, 11/8/11 4,830,000 5,617,290
--------------
5,803,370
--------------
INDONESIA--0.3%
Indonesia (Republic of) Nts.:
6.75%, 3/10/14 (4) 11,305,000 11,898,513
6.90%, 1/17/18 (4) 8,270,000 8,717,432
7.25%, 4/20/15 (4) 7,450,000 7,971,500
----------- --------------
Indonesia (Republic of) Unsec. Nts., 8.50%, 10/12/35 (4) 6,540,000 7,373,850
--------------
35,961,295
--------------
ISRAEL--0.7%
Israel (State of) Bonds:
5.50%, 2/28/17 185,040,000 ILS 51,693,548
Series 2682, 7.50%, 3/31/14 107,990,000 ILS 34,027,563
--------------
85,721,111
--------------
ITALY--2.2%
Italy (Republic of) Nts., Certificati di Credito del Tesoro,
4.20%, 7/1/09 (2) 173,190,000 EUR 273,859,541
16 | OPPENHEIMER INTERNATIONAL BOND FUND
PRINCIPAL
AMOUNT VALUE
------------------ ----------------
JAPAN--8.5%
Japan (Government of) Bonds:
2 yr., Series 252, 0.80%, 1/15/09 41,477,000,000 JPY $ 416,919,164
10 yr., Series 245, 0.90%, 12/20/12 19,348,000,000 JPY 195,514,180
10 yr., Series 288, 1.70%, 9/20/17 17,087,000,000 JPY 178,852,961
30 yr., Series 25, 2.30%, 12/20/36 27,840,000,000 JPY 274,545,746
----------------
1,065,832,051
----------------
MALAYSIA--0.4%
Johor Corp. Malaysia (Government of) Bonds, Series P3, 1%,
7/31/12 (1) 107,980,000 MYR 40,680,288
-------------- ----------------
Malaysia (Government of) Bonds, Series 2/05, 4.72%, 9/30/15 39,730,000 MYR 13,179,156
----------------
53,859,444
----------------
MEXICO--1.8%
Mexican Williams Sr. Nts., 5.488%, 11/15/08 (1,2) 500,000 504,100
-------------- ----------------
United Mexican States Bonds:
Series A, 6.375%, 1/16/13 10,815,000 11,907,315
Series M7, 8%, 12/24/08 (2) 1,099,090,000 MXN 103,673,999
Series MI10, 8%, 12/19/13 547,680,000 MXN 52,927,623
-------------- ----------------
United Mexican States Nts., 8.375%, 1/14/11 53,310,000 60,293,610
----------------
229,306,647
----------------
NIGERIA--1.2%
Nigeria (Federal Republic of) Nts.:
Series 3Y2S, 12.50%, 2/24/09 356,000,000 NGN 3,110,990
Series 3Y7S, 17%, 12/16/08 570,000,000 NGN 5,110,110
-------------- ----------------
Nigeria (Federal Republic of) Promissory Nts., Series RC, 5.092%,
1/5/10 259,338 269,911
-------------- ----------------
Nigeria (Federal Republic of) Treasury Bills, Series 364,
9.13%, 2/5/09 (5) 1,350,000,000 NGN 10,649,853
-------------- ----------------
Nigeria (Federal Republic of) Treasury Bonds:
Series 3Y, 9.23%, 5/25/12 2,404,900,000 NGN 20,183,780
Series 3Y, 12.50%, 7/31/09 673,100,000 NGN 5,979,789
Series 3Y1S, 15%, 1/27/09 522,300,000 NGN 4,640,089
Series 5 yr., 9.50%, 2/23/12 1,180,900,000 NGN 10,032,077
Series 5Y, 9.50%, 8/31/12 2,202,000,000 NGN 18,659,582
Series 5Y13, 12.99%, 9/29/11 866,700,000 NGN 8,310,518
Series 7Y, 9.20%, 6/29/14 650,000,000 NGN 5,338,701
Series 7Y16, 11.99%, 12/22/13 1,422,500,000 NGN 13,062,722
Series 7YR, 12.74%, 10/27/13 1,050,600,000 NGN 9,871,951
Series 10 yr., 9.35%, 8/31/17 2,514,200,000 NGN 19,833,970
Series 364, 9.163%, 1/8/09 (5) 2,153,400,000 NGN 17,103,586
----------------
152,157,629
----------------
17 | OPPENHEIMER INTERNATIONAL BOND FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
PRINCIPAL
AMOUNT VALUE
------------------ -----------------
PANAMA--0.4%
Panama (Republic of) Bonds:
6.70%, 1/26/36 $ 12,875,000 $ 13,164,688
7.25%, 3/15/15 15,905,000 17,495,500
8.875%, 9/30/27 (7) 3,255,000 4,150,125
9.375%, 4/1/29 (8) 1,650,000 2,178,000
-------------- -----------------
Panama (Republic of) Unsec. Bonds, 7.125%, 1/29/26 11,625,000 12,613,125
-----------------
49,601,438
-----------------
PERU--2.5%
Peru (Republic of) Bonds:
7.84%, 8/12/20 86,585,000 PEN 34,550,788
9.91%, 5/5/15 128,732,000 PEN 57,134,608
Series 7, 8.60%, 8/12/17 102,145,000 PEN 42,882,680
Series 8-1, 12.25%, 8/10/11 129,465,000 PEN 56,990,286
-------------- -----------------
Peru (Republic of) Certificate of Deposit:
5.364%, 4/11/08 (5) 60,230,000 PEN 21,901,093
5.50%, 5/2/08 (1,5) 78,991,000 PEN 28,132,528
5.502%, 4/3/08 (5) 14,220,000 PEN 5,163,615
5.516%, 5/16/08 (5) 28,500,000 PEN 10,308,555
5.719%, 11/6/08 (5) 47,740,000 PEN 16,793,288
5.818%, 1/5/09 (5) 112,630,000 PEN 39,231,895
-------------- -----------------
Peru (Republic of) Sr. Nts., 4.533%, 2/28/16 (5) 1,426,426 956,989
-----------------
314,046,325
-----------------
PHILIPPINES--0.2%
Philippines (Republic of the) Bonds, 8%, 1/15/16 2,910,000 3,331,950
-------------- -----------------
Philippines (Republic of the) Unsec. Bonds:
7.75%, 1/14/31 3,914,000 4,388,377
9%, 2/15/13 13,985,000 16,415,593
-----------------
24,135,920
-----------------
POLAND--0.3%
Poland (Republic of) Bonds:
Series DS1013, 5%, 10/24/13 79,840,000 PLZ 34,092,121
Series WS0922, 5.75%, 9/23/22 10,000,000 PLZ 4,395,308
-----------------
38,487,429
-----------------
THE NETHERLANDS--1.5%
Netherlands (Kingdom of the) Bonds, 5%, 7/15/11 81,075,000 EUR 133,002,372
-------------- -----------------
Netherlands (Kingdom of the) Nts., 4.50%, 7/15/17 32,480,000 EUR 52,957,768
-----------------
185,960,140
-----------------
TURKEY--1.5%
Turkey (Republic of) Bonds:
6.75%, 4/3/18 22,650,000 22,593,375
7%, 9/26/16 13,755,000 14,030,100
18 | OPPENHEIMER INTERNATIONAL BOND FUND
PRINCIPAL
AMOUNT VALUE
------------------ -----------------
TURKEY Continued
Turkey (Republic of) Nts.:
7.25%, 3/15/15 $ 4,755,000 $ 5,028,413
14%, 1/19/11 (2) 66,350,000 TRY 46,158,576
15.861%, 10/7/09 (5) 79,000,000 TRY 45,712,006
16%, 3/7/12 (2) 54,770,000 TRY 38,556,820
17.864%, 8/13/08 (5) 28,615,000 TRY 20,198,591
-----------------
192,277,881
-----------------
UNITED KINGDOM--4.6%
United Kingdom Treasury Bonds:
5.75%, 12/7/09 164,590,000 GBP 336,722,388
6%, 12/7/28 103,895,000 GBP 244,910,085
-----------------
581,632,473
-----------------
URUGUAY--0.5%
Uruguay (Oriental Republic of) Bonds:
4.25%, 4/5/27 248,600,000 UYU 12,883,222
7.625%, 3/21/36 9,935,000 10,108,863
-------------- -----------------
Uruguay (Oriental Republic of) Unsec. Bonds:
5%, 9/14/18 403,060,000 UYU 24,290,085
8%, 11/18/22 10,815,000 11,626,125
-----------------
58,908,295
-----------------
VENEZUELA--0.4%
Venezuela (Republic of) Bonds, 9.25%, 9/15/27 33,610,000 32,013,525
-------------- -----------------
Venezuela (Republic of) Nts., 10.75%, 9/19/13 11,155,000 11,405,988
-------------- -----------------
Venezuela (Republic of) Unsec. Bonds, 7.65%, 4/21/25 14,440,000 11,651,275
-----------------
55,070,788
-----------------
Total Foreign Government Obligations (Cost $ 7,284,971,135) 7,764,466,121
=================
LOAN PARTICIPATIONS--0.8%
Bayerische Hypo- und Vereinsbank AG for the City of Kiev,
Ukraine Loan Participation Nts., 8.625%, 7/15/11 (1) 18,470,000 19,397,600
-------------- -----------------
Credit Suisse First Boston International, Export-Import
Bank of Ukraine Loan Participation Nts., 8.40%, 2/9/16 5,890,000 5,713,300
-------------- -----------------
Dali Capital plc/Bank of Moscow Loan Participation Nts.,
Series 28, Tranche 1, 7.25%, 11/25/09 72,600,000 RUR 3,114,560
-------------- -----------------
Dali Capital SA (ROSBANK) Loan Participation Nts., Series
23, Tranche 1, 8%, 9/30/09 71,200,000 RUR 2,927,229
-------------- -----------------
Gaz Capital SA Sr. Unsec. Loan Participation Nts., 7.288%,
8/16/37 (4) 27,890,000 25,884,430
-------------- -----------------
Gazprom International SA Unsec. Loan Participation Nts.,
7.201%, 2/1/20 (4) 5,650,297 5,777,429
-------------- -----------------
VTB Capital SA Loan Participation Nts., 6.315%, 2/4/15 (2) 36,440,000 36,834,281
-----------------
Total Loan Participations (Cost $ 100,660,527) 99,648,829
19 | OPPENHEIMER INTERNATIONAL BOND FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
PRINCIPAL
AMOUNT VALUE
------------------- ----------------
CORPORATE BONDS AND NOTES--13.8%
AES Dominicana Energia Finance SA, 11% Sr. Nts., 12/13/15 (4) $ 7,923,000 $ 7,625,888
--------------- ----------------
AES Panama SA, 6.35% Sr. Nts., 12/21/16 (4) 2,225,000 2,227,772
--------------- ----------------
Alrosa Finance SA:
8.875% Nts., 11/17/14 7,010,000 7,528,390
8.875% Nts., 11/17/14 (4) 10,295,000 11,056,315
--------------- ----------------
AmBev International Finance Co. Ltd., 9.50% Bonds, 7/24/17 (4) 27,130,000 BRR 13,335,399
--------------- ----------------
America Movil SAB de CV:
8.46% Bonds, 12/18/36 (4) 27,100,000 MXN 2,501,010
8.46% Sr. Unsec. Unsub. Bonds, 12/18/36 113,700,000 MXN 10,493,166
--------------- ----------------
Autopistas del Nordeste Cayman Ltd., 9.39% Nts., 1/15/26 (4) 10,183,222 10,183,222
--------------- ----------------
BA Covered Bond Issuer, 4.25% Sec. Nts., 4/5/17 43,620,000 EUR 67,132,696
--------------- ----------------
Banco Bilbao Vizcaya Argentaria SA, 4.25% Sec. Bonds,
7/15/14 32,820,000 EUR 51,143,157
--------------- ----------------
Banco BMG SA, 9.15% Nts., 1/15/16 (4) 9,710,000 9,710,000
--------------- ----------------
Banco de Credito del Peru, 6.95% Sub. Nts., 11/7/21 (2,4) 2,750,000 2,750,000
--------------- ----------------
Banco Hipotecario SA, 9.75% Sr. Unsec. Nts., 4/27/16 (4) 4,325,000 3,881,688
--------------- ----------------
Banco Invex SA, 25.672% Mtg. Backed Certificates, Series 062U,
3/13/34 (2,9) 29,007,078 MXN 11,316,481
--------------- ----------------
Bank of Scotland plc:
4.375% Sr. Sec. Nts., 7/13/16 162,890,000 EUR 251,179,409
4.50% Sr. Sec. Nts., 7/13/21 75,890,000 EUR 112,006,672
--------------- ----------------
C10 Capital SPV Ltd., 6.722% Unsec. Perpetual Debs. (4,10) 6,700,000 6,211,851
--------------- ----------------
Cloverie plc, 6.792% Sec. Nts., Series 2005-93, 12/20/10 (1,2) 3,600,000 3,106,800
--------------- ----------------
Coriolanus Ltd., 10.62% Sec. Nts., 8/10/10 16,300,000 11,744,150
--------------- ----------------
Depfa ACS Bank, 3.875% Sec. Nts., 11/14/16 8,775,000 EUR 13,370,996
--------------- ----------------
Eirles Two Ltd., 6.482% Sec. Nts., Series 335, 4/30/12 (1,2) 10,800,000 8,235,000
--------------- ----------------
Eletropaulo Metropolitana SA, 19.125% Nts., 6/28/10 (4) 13,295,000 BRR 8,334,473
--------------- ----------------
Exsportfinans ASA, 3.50% Nts., 2/11/11 (2) 195,570,000 EUR 299,776,742
--------------- ----------------
HSBC Bank plc:
11.601% Sr. Unsec. Nts., 1/12/10 (5) 42,800,000 33,127,200
12.278% Sr. Unsec. Nts., 3/9/09 (5) 30,220,000 26,140,300
9.751% Sr. Unsec. Nts., 7/8/09 (5) 30,220,000 27,605,970
--------------- ----------------
HSBK Europe BV, 7.25% Unsec. Unsub. Nts., 5/3/17 (4) 3,260,000 2,836,200
--------------- ----------------
ICICI Bank Ltd.:
6.375% Bonds, 4/30/22 (2,4) 12,125,000 10,447,979
6.625% Nts., 10/3/12 (4) 11,560,000 11,556,451
--------------- ----------------
IIRSA Norte Finance Ltd., 8.75% Sr. Nts., 5/30/24 (1) 9,712,227 10,853,413
--------------- ----------------
Inter-American Development Bank:
6.26% Nts., 12/8/09 (2) 11,200,000 BRR 6,508,919
9.891% Nts., 1/25/12 (1,2) 9,658,285,859 COP 5,691,944
--------------- ----------------
International Bank for Reconstruction & Development (The),
15% Nts., 1/7/10 3,000,000 TRY 2,193,937
20 | OPPENHEIMER INTERNATIONAL BOND FUND
PRINCIPAL
AMOUNT VALUE
----------------- ---------------
CORPORATE BONDS AND NOTES Continued
ISA Capital do Brasil SA:
7.875% Sr. Nts., 1/30/12 (4) $ 2,225,000 $ 2,302,875
8.80% Sr. Nts., 1/30/17 (4) 2,780,000 2,905,100
------------- ---------------
JPMorgan, Red Square Capital Ltd., 9% Collaterlized Debt
Obligation Nts., 11/20/08 (4) 365,000,000 RUR 14,925,382
------------- ---------------
JPMorgan Hipotecaria su Casita:
6.47% Sec. Nts., 8/26/35 (1) 37,486,491 MXN 3,500,911
20.368% Mtg. Backed Certificates, Series 06U, 9/25/35 (2) 19,683,268 MXN 8,090,588
------------- ---------------
JSC Astana Finance, 9.16% Nts., 3/14/12 (1) 14,000,000 12,829,536
------------- ---------------
Kuznetski Capital SA/Bank of Moscow, 7.375% Nts., 11/26/10 (4) 2,780,000 2,870,350
------------- ---------------
Majapahit Holding BV:
7.25% Nts., 10/17/11 (4) 2,860,000 2,867,150
7.75% Nts., 10/17/16 (4) 6,420,000 6,355,800
------------- ---------------
MHP SA, 10.25% Sr. Sec. Sub. Bonds, 11/30/11 (4) 2,745,000 2,552,850
------------- ---------------
Morgan Stanley, 6.25% Sr. Nts., 3/23/17 (1) 26,120,000 PEN 8,605,242
------------- ---------------
National Gas Co., 6.05% Nts., 1/15/36 (4) 4,945,000 4,654,036
------------- ---------------
National Power Corp.:
5.875% Unsec. Unsub. Bonds, 12/19/16 665,100,000 PHP 15,063,074
6.875% Nts., 11/2/16 (4) 2,739,000 2,773,238
9.625% Unsec. Bonds, 5/15/28 5,095,000 6,095,149
------------- ---------------
Nordic Investment Bank, 12.50% Sr. Unsec. Nts., 2/15/09 5,000,000 TRY 3,603,125
------------- ---------------
Ongko International Finance Co. BV, 10.50% Sec. Nts.,
3/29/10 (1,11,12) 550,000 --
------------- ---------------
Panama Canal Railway Co., 7% Sr. Sec. Nts., 11/1/26 (1) 8,465,000 7,787,800
------------- ---------------
Petrobras International Finance Co., 5.785% Sr. Unsec.
Nts., 3/1/18 20,900,000 20,229,110
------------- ---------------
Petroleum Export Ltd. Cayman SPV, 5.265% Sr. Nts., Cl. A3,
6/15/11 (4) 9,653,017 9,692,025
------------- ---------------
Piazza Vittoria Finance SrL, 6.033% Asset-Backed Nts.,
7/20/10 (1,2) 8,946,738 EUR 14,124,719
------------- ---------------
Rabobank Nederland, 3% Nts., 3/11/11 (1,2) 163,350,000 162,533,250
------------- ---------------
RSHB Capital SA/OJSC Russian Agricultural Bank, 7.175%
Nts., 5/16/13 (4) 3,820,000 3,901,175
------------- ---------------
Salisbury International Investments Ltd., 8.044% Sec. Nts.,
Series 2006-003, Tranche E, 7/20/11 (2) 2,400,000 2,208,000
------------- ---------------
Telefonica del Peru SA, 8% Sr. Unsec. Bonds, 4/11/16 (4) 26,033,700 PEN 10,033,731
------------- ---------------
Tengizchevroil LLP, 6.124% Nts., 11/15/14 (4) 5,840,000 5,601,144
------------- ---------------
TGI International Ltd., 9.50% Nts., 10/3/17 (4) 10,640,000 11,039,000
------------- ---------------
Tiers-BSP, 0%/8.60% Collateralized Trust, Cl. A, 6/15/97 (13) 6,065,000 3,216,251
------------- ---------------
Vitro SAB de CV:
8.625% Sr. Unsec. Unsub. Nts., 2/1/12 2,775,000 2,573,813
9.125% Sr. Unsec. Unsub. Nts., 2/1/17 4,715,000 3,937,025
------------- ---------------
VTB Capital SA, 6.25% Sr. Nts., 6/30/35 (4) 2,950,000 2,732,438
21 | OPPENHEIMER INTERNATIONAL BOND FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
PRINCIPAL
AMOUNT VALUE
--------------- ---------------
CORPORATE BONDS AND NOTES Continued
WM Covered Bond Program:
3.875% Sec. Nts., Series 1, 9/27/11 105,230,000 EUR $ 159,741,403
4% Sec. Mtg. Nts., Series 2, 9/27/16 103,055,000 EUR 145,945,638
---------------
Total Corporate Bonds and Notes (Cost $1,624,043,515) 1,727,104,518
SHARES
---------------
COMMON STOCKS--0.0%
Societe des Autoroutes Paris-Rhin-Rhone (Cost $3,981,149) 39,005 4,716,981
PRINCIPAL
AMOUNT
---------------
STRUCTURED SECURITIES--10.3%
Citigroup Global Markets Holdings, Inc.:
Brazil (Federal Republic of) Unsec. Credit Linked Nts.,
14.809%, 1/5/10 (5) 32,035,902 BRR 14,632,139
Colombia (Republic of) Credit Linked Bonds, 11%, 7/27/20 12,570,000,000 COP 6,638,386
Colombia (Republic of) Credit Linked Nts., Series II, 15%,
4/27/12 6,942,469,928 COP 4,224,581
Colombia (Republic of) Unsec. Credit Linked Nts., 15%,
4/27/12 12,430,000,000 COP 7,563,813
Colombia (Republic of) Unsec. Credit Linked Nts., 15%,
4/27/12 11,705,100,000 COP 7,122,703
Colombia (Republic of) Unsec. Credit Linked Nts., 15%,
4/27/12 31,110,000,000 COP 18,930,831
Dominican Republic Credit Linked Bonds, 9.85%, 11/10/08 (5) 116,770,000 DOP 3,181,513
Dominican Republic Credit Linked Nts., 22%, 10/3/11 158,100,000 DOP 5,500,143
Dominican Republic Credit Linked Nts., 9.522%, 5/12/08 (5) 106,540,000 DOP 3,096,459
Dominican Republic Unsec. Credit Linked Nts., 12.047%,
2/23/09 (5) 218,500,000 DOP 5,796,301
Dominican Republic Unsec. Credit Linked Nts., 13.182%,
2/23/09 (5) 400,000,000 DOP 10,479,627
Dominican Republic Unsec. Credit Linked Nts., 15%, 3/12/12 289,700,000 DOP 8,292,793
Dominican Republic Unsec. Credit Linked Nts., 9.342%,
8/11/08 (5) 244,600,000 DOP 6,888,772
Dominican Republic Unsec. Credit Linked Nts., Series 007,
9.302%, 5/12/08 (5) 211,900,000 DOP 6,158,625
Egypt (The Arab Republic of) Credit Linked Nts., 5.765%,
2/5/09 (5) 76,850,000 EGP 13,158,548
Egypt (The Arab Republic of) Credit Linked Nts., 6.089%,
3/5/09 (5) 57,120,000 EGP 9,721,172
Egypt (The Arab Republic of) Credit Linked Nts., 6.267%,
3/26/09 (5) 77,610,000 EGP 13,148,793
Egypt (The Arab Republic of) Credit Linked Nts., 6.641%,
2/19/09 (5) 77,660,000 EGP 13,256,900
Egypt (The Arab Republic of) Credit Linked Nts., 7.024%,
7/10/08 (5) 53,890,000 EGP 9,688,875
Egypt (The Arab Republic of) Credit Linked Nts., 7.981%,
4/2/09 (5) 35,560,000 EGP 6,015,552
Egypt (The Arab Republic of) Unsec. Credit Linked Nts.,
6.529%, 3/26/09 (5) 77,010,000 EGP 13,047,140
Ghana (Republic of) Credit Linked Nts., 13.50%, 4/2/10 (1) 15,350,000 GHS 15,607,193
Nigeria (Federal Republic of) Credit Linked Nts., 14.50%,
3/1/11 (2,4) 2,672,000,000 NGN 25,808,601
Nigeria (Federal Republic of) Credit Linked Nts., Series II,
14.50%, 4/4/11 (1) 2,032,000,000 NGN 19,698,588
Renins Nonlife Ltd. Credit Linked Nts., 12.50%, 5/30/12 (1) 5,241,363 4,926,881
Russian Federation Credit Linked Nts., 7.65%, 12/4/08 (1,2) 41,690,000 RUR 1,743,268
Ukraine Hryvnia Unsec. Credit Linked Nts., 11.94%, 1/4/10 13,799,000 UAH 2,946,494
Zimbabwe (Republic of) Credit Linked Nts., 10.076%, 11/26/08 (5) 7,965,000,000 ZMK 2,040,019
Zimbabwe (Republic of) Credit Linked Nts., 10.717%, 3/4/09 (5) 16,940,000,000 ZMK 4,205,610
Zimbabwe (Republic of) Credit Linked Nts., 10.793%, 2/25/09 (5) 16,940,000,000 ZMK 4,197,464
22 | OPPENHEIMER INTERNATIONAL BOND FUND
PRINCIPAL
AMOUNT VALUE
--------------- --------------
STRUCTURED SECURITIES Continued
Credit Suisse First Boston International:
Boryspil Airport Total Return Linked Nts., 10%, 4/19/10 (2) 49,215,000 UAH $ 10,106,071
EES Total Return Linked Nts., 7.10%, 12/12/08 (1,2) 72,800,000 RUR 3,064,272
Gazprom Total Return Linked Nts., 6.79%, 10/29/09 144,790,000 RUR 6,273,709
Gazprom Total Return Linked Nts., Series 002, 6.95%, 8/6/09 141,750,000 RUR 6,054,510
Indonesia (Republic of) Total Return Linked Nts., 12%, 9/16/11 (1) 116,800,000,000 IDR 13,391,840
Lukoil Credit Linked Nts., Series Fbi 105, 7.25%, 11/19/09 (1,2) 321,528,000 RUR 13,629,431
Moitk Total Return Linked Nts., 9.014%, 3/26/11 (1,2) 244,714,000 RUR 9,993,173
Moscow (City of) Credit Linked Nts., Series Fbi 101, 10%,
12/31/10 (1) 277,800,000 RUR 12,680,289
Moscow (City of) Credit Linked Nts., Series Fbi 98, 11%,
4/23/09 (4) 280,840,000 RUR 12,655,182
Orenburgskaya IZHK Total Return Linked Nts., 9.24%, 2/21/12 (1,2) 64,940,000 RUR 2,598,004
Ukraine (Republic of) Credit Linked Nts., Series EMG 13,
11.94%, 12/30/09 30,400,000 UAH 6,489,411
Vietnam Shipping Industry Group Total Return Linked Nts.,
10.50%, 1/19/17 (1) 85,958,000,000 VND 5,193,074
--------------- --------------
Credit Suisse First Boston, Inc. (Nassau Branch):
Russian Oreniz Credit Linked Nts., Series 009, 9.24%,
2/21/12 (1,2) 75,000,000 RUR 3,000,466
Russian Specialized Construction and Installation
Administration
Credit Linked Nts., 8.59%, 5/20/10 (1,2) 64,600,000 RUR 2,735,616
Ukraine (Republic of) Credit Linked Nts., Series EMG 11,
11.94%, 12/30/09 9,163,000 UAH 1,956,002
Ukraine (Republic of) Credit Linked Nts., Series NPC 12,
11.94%, 12/30/09 (4) 65,490,000 UAH 13,979,984
--------------- --------------
Credit Suisse Group, Russian Moscoblgaz Finance Total Return
Linked Nts., 9.25%, 6/24/12 (1) 64,500,000 RUR 2,621,577
--------------- --------------
Deutsche Bank AG:
Argentina (Republic of) Credit Linked Nts., 11.991%,
12/21/11 (1,14) 35,580,000 ARP 30,377,142
Arrendadora Capita Corp. SA de CV/Capita Corp. (The) de Mexico
SA de CV Credit Linked Nts., 9.09%, 1/5/11 (1) 91,947,523 MXN 8,639,452
Arrendadora Capita Corp. SA de CV/Capita Corp. (The) de Mexico
SA de CV Credit Linked Nts., 9.65%, 1/5/11 (1) 60,726,068 MXN 5,705,862
Brazil Real Credit Linked Nts., 13.882%, 3/3/10 (5) 61,128,560 BRR 27,699,929
Brazil Real Credit Linked Nts., 6%, 8/18/10 15,895,000 BRR 14,908,254
Colombia (Republic of) Credit Linked Nts., 13.50%, 9/15/14 13,259,000,000 COP 7,846,897
Colombia (Republic of) Total Return Linked Bonds, Series 002,
11%, 7/28/20 24,620,000,000 COP 12,996,261
Compania Total Return Linked Nts., 4.454%, 7/22/10 3,722,960 EUR 5,994,024
Egypt (The Arab Republic of) Total Return Linked Nts., 7.725%,
9/16/08 (5) 74,375,000 EGP 13,298,972
European Investment Bank, Russian Federation Credit Linked
Nts., 5.502%, 1/19/10 (1,5) 8,475,000 7,491,053
Grupo TMM SA Credit Linked Nts., 6%, 9/7/12 (1) 4,750,996 4,750,996
Halyk Bank of Kazakhstan Total Return Linked Nts., Series I,
7.25%, 3/20/09 2,003,690,000 KZT 15,981,042
Indonesia (Republic of) Credit Linked Nts., 9.50%, 6/22/15 10,300,162 9,829,650
Indonesia (Republic of) Credit Linked Nts., Series III,
14.25%, 6/22/13 12,412,800 14,734,490
Nigeria (Federal Republic of) Credit Linked Nts., 12.50%,
2/24/09 525,300,000 NGN 4,627,253
Nigeria (Federal Republic of) Credit Linked Nts., 15%, 1/27/09 704,900,000 NGN 6,397,179
23 | OPPENHEIMER INTERNATIONAL BOND FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
PRINCIPAL
AMOUNT VALUE
--------------- ----------------
STRUCTURED SECURITIES Continued
Deutsche Bank AG: Continued
Opic Reforma Credit Linked Nts., 9.94%, 10/3/15 (1,2,14) 27,100,000 MXN $ 2,546,334
Peru (Republic of) Credit Linked Nts., 4.249%, 2/20/11 (2) 3,255,000 3,275,276
RuRail Total Return Linked Bonds, 6.67%, 1/26/09 (2) 146,720,000 RUR 6,244,374
Russian Federation Credit Linked Nts., 0%, 12/2/09 (5) 233,573,000 RUR 10,468,678
Russian Federation Total Return Linked Nts., 7.919%, 3/20/09 (5) 103,900,000 RUR 4,069,312
Russian Federation Total Return Linked Nts., 7.949%, 1/15/09 (5) 195,710,000 RUR 7,780,140
Russian Federation Total Return Linked Nts., Series II, 9%,
4/22/11 288,935,000 RUR 13,151,659
Ukraine (Republic of) 5 yr. Credit Linked Nts., 4.05%, 8/25/10 2,505,000 2,457,305
Ukraine (Republic of) 5.5 yr. Credit Linked Nts., 4.05%,
3/1/11 2,505,000 2,443,051
Ukraine (Republic of) 6 yr. Credit Linked Nts., 4.05%, 8/29/11 2,505,000 2,423,613
Ukraine (Republic of) 6.5 yr. Credit Linked Nts., 4.05%,
2/29/12 2,505,000 2,403,472
Ukraine (Republic of) 7 yr. Credit Linked Nts., 4.05%, 8/30/12 2,505,000 2,386,488
Ukraine (Republic of) Credit Linked Nts., 10.208%, 7/1/09 18,508,800 UAH 3,873,323
Ukraine (Republic of) Credit Linked Nts., 11.94%, 12/30/09 3,228,000 UAH 690,449
Ukraine (Republic of) Credit Linked Nts., 11.94%, 12/30/09 11,438,000 UAH 2,446,518
Ukraine (Republic of) Credit Linked Nts., 9.60%, 7/1/09 5,302,400 UAH 1,109,629
United Mexican States Credit Linked Nts., 9.52%, 1/5/11 (1) 60,680,624 MXN 5,701,593
Videocon International Ltd. Credit Linked Nts., 6.26%,
12/29/09 7,300,000 6,570,949
--------------- ----------------
Deutsche Bank AG Singapore, Vietnam Shipping Industry Group
Total Return Linked Nts., 9%, 4/20/17 (1) 216,800,000,000 VND 12,193,325
--------------- ----------------
Dresdner Bank AG, Lukoil Credit Linked Nts., Series 3, 7.04%,
12/8/11 (2,4) 213,030,000 RUR 10,017,592
--------------- ----------------
Goldman Sachs & Co., Turkey (Republic of) Credit Linked Nts.,
14.802%, 3/29/17 (4,5) 129,050,000 TRY 17,118,976
--------------- ----------------
Goldman Sachs Capital Markets LP, Colombia (Republic of)
Credit Linked Nts., 10.476%, 2/8/37 (4,5) 376,977,600,000 COP 4,901,296
--------------- ----------------
Goldman Sachs International, Russian Federation
Total Return Linked Nts., 8%, 5/13/09 (2) 573,900,000 RUR 24,033,121
--------------- ----------------
Hallertau SPC 2007-01, Philippines (Republic of) Credit
Linked Nts., 6.42%, 12/20/17 (1,2) 45,030,000 42,166,092
--------------- ----------------
ING Bank NV, Ukraine (Republic of) Credit Linked Nts., Series
725, 11.89%, 12/30/09 (1) 64,285,000 UAH 13,729,448
--------------- ----------------
JPMorgan Chase Bank NA:
Argentina (Republic of) Credit Linked Nts., 11.942%,
12/19/11 (1,14) 36,445,000 ARP 29,299,328
Brazil (Federal Republic of) Credit Linked Nts., 13.847%,
4/1/10 (1,5) 129,150,391 BRR 58,006,168
Brazil (Federal Republic of) Credit Linked Nts., 14.35%,
2/20/12 (1) 34,060,000 BRR 17,058,146
Brazil (Federal Republic of) Credit Linked Nts., 15.326%,
1/2/15 (5) 115,066,796 BRR 27,991,816
Brazil (Federal Republic of) Credit Linked Nts., 2.731%,
11/30/12 (4,5) 35,605,000 ARP 10,420,893
Brazil (Federal Republic of) Credit Linked Nts., 6%, 5/16/45 (1) 11,130,000 BRR 9,774,382
Colombia (Republic of) Credit Linked Bonds, 10.19%, 1/5/16 (4,5) 153,800,000,000 COP 32,809,210
Colombia (Republic of) Credit Linked Bonds, 10.218%,
10/31/16 (1,5) 90,697,000,000 COP 17,470,029
Colombia (Republic of) Credit Linked Bonds, Series A,
10.218%, 10/31/16 (1,5) 90,312,000,000 COP 17,395,871
Peru (Republic of) Credit Linked Nts., 8.115%, 9/2/15 (4,5) 40,860,000 PEN 8,674,755
Swaziland (Kingdom of) Credit Linked Nts., 7.25%, 6/20/10 (4) 3,850,000 4,100,250
24 | OPPENHEIMER INTERNATIONAL BOND FUND
PRINCIPAL
AMOUNT VALUE
-------------- ------------------
STRUCTURED SECURITIES Continued
Lehman Brothers International, Romania (Republic of)
Total Return Linked Nts., 7.90%, 2/9/10 10,726,400 RON $ 4,500,769
-------------- ------------------
Lehman Brothers Special Financing, Inc.:
Argentina (Republic of) Credit Linked Nts., 9.655%, 12/20/15 (4) 20,000,000 19,304,000
Romania (Republic of) Total Return Linked Nts., 6.50%, 3/9/10 30,904,100 RON 12,553,528
Romania (Republic of) Total Return Linked Nts., 7.25%, 4/19/10 3,105,000 RON 1,360,889
Romania (Republic of) Total Return Linked Nts., 7.75%, 4/21/08 3,101,000 RON 1,408,033
Romania (Republic of) Total Return Linked Nts., 7.75%, 4/21/08 7,453,000 RON 3,384,091
-------------- ------------------
Merrill Lynch:
Colombia (Republic of) Credit Linked Nts., 10%, 11/17/16 (1) 13,289,000,000 COP 6,176,439
Renaissance Capital International Services Ltd.
Total Return Linked Nts., 10.50%, 10/7/08 414,000,000 RUR 17,267,363
-------------- ------------------
Morgan Stanley, Russian Federation Total Return Linked
Securities, Series 007, Cl. VR, 5%, 8/22/34 486,546,147 RUR 16,896,334
-------------- ------------------
Morgan Stanley & Co. International Ltd./Red Arrow International
Leasing plc, Total Return Linked Nts., Series A, 8.375%, 6/30/12 (1) 195,413,674 RUR 8,358,351
-------------- ------------------
Morgan Stanley Capital Services, Inc.:
Bank Center Credit Total Return Linked Nts.,7.52%, 6/6/08 3,273,000,000 KZT 26,899,265
Brazil (Federal Republic of) Linked Nts., 12.551%, 1/5/22 (4,5) 173,500,000 BRR 14,930,472
Brazil (Federal Republic of) Sr. Linked Nts., 14.40%, 8/4/16 (1) 56,967,568 BRR 39,413,363
Brazil (Federal Republic of) Total Return Nts., 8/2/10 26,340,805 BRR 12,434,235
Ukraine (Republic of) Credit Linked Nts., 6.653%, 10/15/17 (2,4) 17,600,000 16,825,600
Ukraine (Republic of) Credit Linked Nts., Series 2, 5.728%,
10/15/17 (1,2) 12,250,000 11,986,625
United Mexican States Credit Linked Nts., 5.64%, 11/20/15 (4) 11,760,000 11,825,856
WTI Trading Ltd. Total Return Linked Nts., Series A, 13.50%,
2/9/09 (1) 10,900,000 10,355,000
WTI Trading Ltd. Total Return Linked Nts., Series B, 13.50%,
2/9/09 (1) 14,550,000 13,822,500
-------------- ------------------
UBS AG:
Egypt (The Arab Republic of) Credit Linked Nts., 7.449%, 60,670,000 EGP 10,578,901
11/26/08 (1,5,15)
Ghana (Republic of) Credit Linked Nts., 14.47%, 12/28/11 (4) 7,369,232 GHS 7,535,231
------------------
Total Structured Securities (Cost $ 1,189,419,559) 1,290,438,557
SHARES
--------------
INVESTMENT COMPANY--8.2%
Oppenheimer Institutional Money Market Fund, Cl. E, 3.29% (16,17)
(Cost $ 1,029,080,236) 1,029,080,236 1,029,080,236
------------- ------------------
TOTAL INVESTMENTS, AT VALUE (COST $ 11,335,490,641) 95.7% 12,019,557,617
------------- ------------------
OTHER ASSETS NET OF LIABILITIES 4.3 538,968,112
------------- ------------------
NET ASSETS 100.0% $ 12,558,525,729
============= ==================
25 | OPPENHEIMER INTERNATIONAL BOND FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
FOOTNOTES TO STATEMENT OF INVESTMENTS
Principal amount is reported in U.S. Dollars, except for those denoted in the
following currencies:
ARP Argentine Peso KZT Kazakhstan Tenge
AUD Australian Dollar MXN Mexican Nuevo Peso
BRR Brazilian Real MYR Malaysian Ringgit
CAD Canadian Dollar NGN Nigeria Naira
COP Colombian Peso PEN Peruvian New Sol
DKK Danish Krone PHP Philippines Peso
DOP Dominican Republic Peso PLZ Polish Zloty
EGP Egyptian Pounds RON New Romanian Leu
EUR Euro RUR Russian Ruble
GBP British Pound Sterling TRY New Turkish Lira
GHS Ghana Cedi UAH Ukraine Hryvnia
IDR Indonesia Rupiah UYU Uruguay Peso
ILS Israeli Shekel VND Vietnam Dong
JPY Japanese Yen ZMK Zambian Kwacha
1. Illiquid or restricted security. The aggregate value of illiquid or
restricted securities as of March 31, 2008 was $821,113,978, which
represents 6.54% of the Fund's net assets, of which $2,546,334 is
considered restricted. See Note 9 of accompanying Notes. Information
concerning restricted securities is as follows:
ACQUISITION UNREALIZED
SECURITY DATE COST VALUE APPRECIATION
- ---------------------------------- ----------- ----------- ----------- ---------------
Deutsche Bank AG, Opic Reforma
Credit Linked Nts., 9.94%, 10/3/15 12/27/07 $ 2,490,580 $ 2,546,334 $ 55,754
2. Represents the current interest rate for a variable or increasing rate
security.
3. All or a portion of the security is held in collateralized accounts to
cover initial margin requirements on open futures contracts. The aggregate
market value of such securities is $102,851,600. See Note 6 of accompanying
Notes.
4. 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 $512,431,715 or 4.08% of the Fund's
net assets as of March 31, 2008.
5. Zero coupon bond reflects effective yield on the date of purchase.
6. A sufficient amount of securities has been designated to cover outstanding
foreign currency contracts. See Note 5 of accompanying Notes.
7. A sufficient amount of liquid assets has been designated to cover
outstanding written put options.
8. A sufficient amount of liquid assets has been designated to cover
outstanding written call options.
9. Denotes an inflation-indexed security: coupon and principal are indexed to
the consumer price index.
10. This bond has no contractual maturity date, is not redeemable and
contractually pays an indefinite stream of interest. Rate reported
represents the current interest rate for this variable rate security.
11. Non-income producing security.
12. Issue is in default. See Note 1 of accompanying Notes.
13. Denotes a step bond: a zero coupon bond that converts to a fixed or
variable interest rate at a designated future date.
14. Represents the current interest rate on a security whose interest rate is
linked to the performance of underlying foreign currencies, interest rate
spreads, stock market indices, prices of individual securities, commodities
or other financial instruments or the occurrence of other specific events.
See Note 1 of accompanying Notes.
15. When-issued security or delayed delivery to be delivered and settled after
March 31, 2008. See Note 1 of accompanying Notes.
16. Rate shown is the 7-day yield as of March 31, 2008.
17. Is or was an affiliate, as defined in the Investment Company Act of 1940,
at or during the period ended March 31, 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:
26 | OPPENHEIMER INTERNATIONAL BOND FUND
SHARES GROSS GROSS SHARES
SEPTEMBER 30, 2007 ADDITIONS REDUCTIONS MARCH 31, 2008
------------------- ------------- ------------- --------------
Oppenheimer Institutional
Money Market Fund, Cl. E 1,166,273,150 6,114,314,792 6,251,507,706 1,029,080,236
DIVIDEND
VALUE INCOME
--------------- ------------
Oppenheimer Institutional Money Market Fund, Cl. E $ 1,029,080,236 $ 16,404,866
FOREIGN CURRENCY EXCHANGE CONTRACTS AS OF MARCH 31, 2008 ARE AS FOLLOWS:
CONTRACT
AMOUNT EXPIRATION UNREALIZED UNREALIZED
CONTRACT DESCRIPTION BUY/SELL (000S) DATE VALUE APPRECIATION DEPRECIATION
- ------------------------ ---------- --------------- --------------- -------------- ------------ ------------
Argentine Peso (ARP) Sell 387,100 ARP 4/21/08 $ 121,861,738 $ 531,515 $ --
Australian Dollar (AUD) Sell 157,900 AUD 4/8/08-4/28/08 143,872,442 714,437 1,696,311
Australian Dollar (AUD) Buy 167,396 AUD 4/28/08-5/9/08 152,453,620 1,229,035 30,643
Brazilian Real (BRR) Buy 374,411 BRR 5/5/08-1/5/10 207,417,946 15,886,489 2,246,666
British Pound Sterling
(GBP) Sell 162,560 GBP 4/2/08-8/5/08 321,448,310 2,363,757 1,814,265
British Pound Sterling
(GBP) Buy 139,085 GBP 4/10/08-5/9/08 275,713,854 2,260,480 190,681
Canadian Dollar (CAD) Sell 478,610 CAD 4/8/08-4/10/08 466,202,123 14,268,583 1,240,648
Canadian Dollar (CAD) Buy 125,335 CAD 4/25/08-5/9/08 122,052,270 -- 317,755
Chilean Peso (CLP) Buy 70,076,000 CLP 4/7/08-6/17/08 160,094,943 1,120,546 480,499
Colombian Peso (COP) Sell 267,010,000 COP 5/6/08-6/9/08 144,114,223 -- 5,264,930
Czech Koruna (CZK) Buy 1,681,026 CZK 4/2/08-4/30/08 105,089,640 9,554,598 424
Egyptian Pounds (EGP) Buy 90,760 EGP 4/1/08-4/7/08 16,655,112 38,277 --
Euro (EUR) Sell 1,281,505 EUR 4/2/08-8/5/08 2,021,905,189 -- 104,256,300
Euro (EUR) Buy 1,032,280 EUR 4/7/08-6/27/08 1,627,388,410 115,422,172 --
Hungarian Forint (HUF) Sell 29,064,000 HUF 4/21/08-10/2/08 174,081,809 226,873 1,619,202
Hungarian Forint (HUF) Buy 8,731,000 HUF 4/21/08 52,716,617 -- 262,752
Indonesia Rupiah (IDR) Buy 659,110,000 IDR 5/30/08 71,139,773 -- 1,086,135
Israeli Shekel (ILS) Buy 311,610 ILS 4/30/08-5/2/08 88,378,502 5,960,755 --
Japanese Yen (JPY) Sell 21,892,150 JPY 4/2/08-8/5/08 220,416,211 -- 11,607,112
Japanese Yen (JPY) Buy 226,045,000 JPY 4/10/08-6/10/08 2,270,253,635 168,356,548 408,464
Kuwaiti Dinar (KWD) Buy 2,809 KWD 1/29/09 10,793,058 319,530 --
Malaysian Ringgit (MYR) Buy 572,670 MYR 4/10/08-6/17/08 178,949,101 2,492,373 857,466
Mexican Nuevo Peso (MXN) Sell 1,322,300 MXN 4/25/08 123,830,943 -- 1,060,869
Mexican Nuevo Peso (MXN) Buy 1,118,380 MXN 5/27/08 104,301,190 1,499,462 --
New Taiwan Dollar (TWD) Sell 3,463,000 TWD 4/30/08 114,851,419 1,747,907 --
New Taiwan Dollar (TWD) Buy 2,260,000 TWD 4/28/08 74,916,150 -- 1,388,800
New Turkish Lira (TRY) Sell 204,150 TRY 4/28/08 151,418,254 6,089,402 --
New Zealand Dollar (NZD) Sell 136,440 NZD 4/8/08-4/28/08 106,970,770 1,264,333 1,934,491
New Zealand Dollar (NZD) Buy 232,000 NZD 5/14/08 180,996,467 9,383,519 --
Norwegian Krone (NOK) Sell 584,430 NOK 4/28/08 114,495,189 -- 4,219,447
Norwegian Krone (NOK) Buy 3,354,120 NOK 4/10/08-5/14/08 657,503,385 19,721,235 --
Peruvian New Sol (PEN) Buy 61,820 PEN 4/18/08 22,563,299 1,290,141 --
Philippines Peso (PHP) Buy 8,742,000 PHP 4/25/08-5/30/08 208,520,242 -- 4,022,309
Polish Zloty (PLZ) Buy 579,660 PLZ 4/10/08-10/2/08 259,179,832 14,950,784 147,506
Qatari Riyal (QAR) Buy 36,740 QAR 1/29/09 10,375,667 -- 97,537
Saudi Riyal (SAR) Buy 38,670 SAR 1/29/09 10,493,129 20,550 --
Singapore Dollar (SGD) Sell 205,300 SGD 4/28/08 149,354,370 -- 1,615,408
27 | OPPENHEIMER INTERNATIONAL BOND FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
FOOTNOTES TO STATEMENT OF INVESTMENTS Continued
FOREIGN CURRENCY EXCHANGE CONTRACTS: Continued
CONTRACT
AMOUNT EXPIRATION UNREALIZED UNREALIZED
CONTRACT DESCRIPTION BUY/SELL (000S) DATE VALUE APPRECIATION DEPRECIATION
- ---------------------- -------- --------------- --------------- ------------- ------------- -------------
Slovak Koruna (SKK) Buy 1,619,150 SKK 4/30/08 $ 78,590,015 $ 7,618,243 $ --
South Korean Won (KRW) Buy 140,666,000 KRW 4/28/08-6/30/08 142,150,311 388,108 4,541,207
Swedish Krona (SEK) Sell 674,850 SEK 5/14/08 113,308,541 -- 9,403,335
Swedish Krona (SEK) Buy 807,860 SEK 4/10/08 135,893,012 10,761,859 --
Swiss Franc (CHF) Sell 101,180 CHF 4/8/08-4/28/08 101,896,236 -- 2,575,381
Swiss Franc (CHF) Buy 413,213 CHF 4/7/08-5/9/08 416,107,160 24,934,773 1,432
Ukraine Hryvnia (UAH) Buy 54,570 UAH 1/28/09 10,168,262 -- 303,817
United Arab Emirates
Dirham (AED) Buy 37,420 AED 1/29/09 10,445,527 -- 21,605
Vietnam Dong (VND) Buy 166,420,000 VND 1/30/09 9,949,919 -- 523,334
------------- -------------
Total unrealized appreciation and depreciation $ 440,416,284 $ 165,236,731
============= =============
FUTURES CONTRACTS AS OF MARCH 31, 2008 ARE AS FOLLOWS:
UNREALIZED
NUMBER OF EXPIRATION APPRECIATION
CONTRACT DESCRIPTION BUY/SELL CONTRACTS DATE VALUE (DEPRECIATION)
- ----------------------------------- --------- ---------- ---------- -------------- --------------
Amsterdam Exchange Index Buy 83 4/18/08 $ 11,579,719 $ 537,894
Australia (Commonwealth of)
Bonds, 10 yr. Sell 686 6/16/08 62,414,590 126,428
CAC-40 10 Index Sell 548 4/18/08 40,774,917 (1,469,739)
Canada (Government of)
Bonds, 10 yr. Buy 1,900 6/19/08 221,717,570 7,566,151
DAX Index Sell 488 6/20/08 127,034,780 (3,404,881)
DAX Index Buy 43 6/20/08 11,193,638 299,961
Euro-Bundesobligation, 10 yr. Buy 2,943 6/6/08 538,875,515 (5,909,580)
Euro-Bundesobligation, 10 yr. Sell 4,857 6/6/08 889,336,859 12,278,095
Euro-Schatz Buy 12,288 6/6/08 2,027,371,592 (14,534,533)
FTSE 100 Index Sell 642 6/20/08 72,734,177 (2,120,544)
FTSE/JSE Top 40 Index (The) Sell 323 6/19/08 11,137,725 10,667
Hang Seng China Enterprises Index Sell 134 4/29/08 10,301,401 (68,912)
Japan (Government of) Bonds, 10 yr. Buy 564 6/11/08 795,077,047 8,813,705
Mexican Bola Index Sell 380 6/20/08 11,188,180 (659,167)
Nikkei 225 Index Sell 567 6/12/08 71,045,646 (437,610)
OMXS 30 Index Sell 5,165 4/25/08 80,862,715 (2,208,517)
SGX CNX Nifty Index Sell 1,029 4/24/08 9,703,470 346,736
Standard & Poor's 500 E-Mini Index Buy 1,157 6/20/08 76,593,400 2,569,238
Standard & Poor's 500 E-Mini Index Sell 160 6/20/08 10,592,000 (355,200)
Standard & Poor's/MIB Index, 10 yr. Buy 43 6/20/08 10,400,894 99,909
Standard & Poor's/Toronto
Stock Exchange 60 Index Buy 529 6/19/08 80,995,314 460,575
U.S. Long Bonds Buy 2,748 6/19/08 326,453,813 9,211,644
U.S. Treasury Nts., 5 yr. Sell 1,552 6/30/08 177,291,750 (2,693,006)
U.S. Treasury Nts., 5 yr. Buy 1,897 6/30/08 216,702,609 2,562,797
U.S. Treasury Nts., 10 yr. Sell 6,935 6/19/08 824,939,922 (29,355,854)
--------------
$ (18,333,743)
==============
28 | OPPENHEIMER INTERNATIONAL BOND FUND
WRITTEN OPTIONS AS OF MARCH 31, 2008 ARE AS FOLLOWS:
NUMBER OF EXERCISE EXPIRATION PREMIUMS
DESCRIPTION TYPE CONTRACTS PRICE DATE RECEIVED VALUE
- ---------------------------- ------ ----------- -------- ----------- ----------- -----------
British Pound Sterling (GBP) Call 1,930,000 $ 1.98 4/7/08 $ 20,060 $ 17,684
British Pound Sterling (GBP) Call 1,805,000 1.99 4/1/08 17,802 2,673
British Pound Sterling (GBP) Put 1,805,000 1.99 4/1/08 18,702 19,160
British Pound Sterling (GBP) Call 1,965,000 2.00 4/4/08 21,136 6,736
British Pound Sterling (GBP) Put 1,930,000 1.98 4/7/08 20,060 22,543
British Pound Sterling (GBP) Put 1,965,000 2.00 4/4/08 21,136 34,973
Euro (EUR) Call 7,365,000 1.56 4/1/08 70,821 154,431
Euro (EUR) Call 6,785,000 1.57 4/2/08 67,084 62,504
Euro (EUR) Call 9,330,000 1.58 4/3/08 95,906 72,667
Euro (EUR) Put 7,365,000 1.56 4/1/08 72,314 4,088
Euro (EUR) Put 6,785,000 1.57 4/2/08 67,084 25,028
Euro (EUR) Put 9,330,000 1.58 4/3/08 96,053 75,357
Euro (EUR) Call 7,950,000 1.58 4/4/08 83,871 59,971
Euro (EUR) Call 7,980,000 1.58 4/7/08 79,616 71,197
Euro (EUR) Put 7,950,000 1.58 4/4/08 83,871 81,144
Euro (EUR) Put 7,980,000 1.58 4/7/08 79,616 92,927
Japanese Yen (JPY) Call 863,000,000 99.45 4/7/08 85,736 85,696
Japanese Yen (JPY) Put 863,000,000 99.45 4/7/08 85,736 85,696
Japanese Yen (JPY) Call 828,000,000 100.05 4/1/08 73,241 51,634
Japanese Yen (JPY) Call 796,000,000 99.15 4/2/08 77,553 32,079
Japanese Yen (JPY) Call 977,000,000 99.30 4/3/08 88,550 49,143
Japanese Yen (JPY) Put 828,000,000 100.05 4/1/08 73,241 24,120
Japanese Yen (JPY) Put 796,000,000 99.15 4/2/08 75,385 81,908
Japanese Yen (JPY) Put 977,000,000 99.30 4/3/08 93,469 93,206
Japanese Yen (JPY) Call 905,000,000 99.70 4/4/08 86,461 81,350
Japanese Yen (JPY) Put 905,000,000 99.70 4/4/08 86,461 80,038
----------- -----------
$ 1,740,965 $ 1,467,953
=========== ===========
CREDIT DEFAULT SWAP CONTRACTS AS OF MARCH 31, 2008 ARE AS FOLLOWS:
PAY/
NOTIONAL RECEIVE
SWAP BUY/SELL AMOUNT FIXED TERMINATION
COUNTERPARTY REFERENCE ENTITY CREDIT PROTECTION (000S) RATE DATE VALUE
- ---------------------------- -------------------------------- ----------------- ----------- ------- ----------- ---------
Citibank NA, New York:
Pakistan Sell $ 3,010 5.100% 3/20/13 $ 35,843
Republic of Hungary Buy 7,535 0.400 12/20/15 799,870
--------- ----- -------- ---------
Credit Suisse International:
Development Bank of Kazakhstan Sell 18,510 3.750 2/20/13 114,225
Joint Stock Co. "Halyk Bank of Sell 3,840 4.950 3/20/13 28,343
Kazakhstan"
NJSC Naftogaz Sell 5,000 3.250 4/20/11 (392,920)
Republic of Turkey Buy 8,695 2.985 4/20/13 3,008
--------- ----- -------- ---------
Deutsche
Bank AG Republic of Peru Sell 1,200 1.320 4/20/17 (63,022)
--------- ----- -------- ---------
Lehman Brothers
Special
Financing, Inc. JSC "Gazprom" Buy 7,590 2.150 2/20/11 (25,335)
29 | OPPENHEIMER INTERNATIONAL BOND FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
FOOTNOTES TO STATEMENT OF INVESTMENTS Continued
CREDIT DEFAULT SWAP CONTRACTS: Continued
PAY/
NOTIONAL RECEIVE
SWAP BUY/SELL AMOUNT FIXED TERMINATION
COUNTERPARTY REFERENCE ENTITY CREDIT PROTECTION (000S) RATE DATE VALUE
- ---------------------- ----------------------------------- ----------------- -------- -------- ---------- ------------
Morgan Stanley Capital
Services, Inc.:
Istanbul Bond Co. SA for Finansbank Sell $ 17,390 1.300% 3/24/13 $ (1,148,818)
Joint Stock Co. "Halyk Bank of
Kazakhstan" Sell 7,670 4.780 3/20/13 5,806
Joint Stock Co. "Halyk Bank of
Kazakhstan" Sell 7,680 4.880 3/20/13 35,743
Republic of Peru Sell 4,960 1.040 6/20/17 (246,333)
Republic of Turkey Buy 8,695 2.980 4/20/13 4,826
-------- -------- ------- ------------
UBS AG Republic of The Philippines Sell 5,945 1.450 6/20/17 (587,515)
------------
$ (1,436,279)
============
INTEREST RATE SWAP CONTRACTS AS OF MARCH 31, 2008 ARE AS FOLLOWS:
SWAP NOTIONAL PAID BY RECEIVED BY TERMINATION
COUNTERPARTY AMOUNT THE FUND THE FUND DATE VALUE
- ---------------------- ----------------- --------------- -------------- ----------- -----------
Banco Santander
Central Hispano SA:
Six-Month
5,126,000,000 CLP TNA-Chile 6.600% 8/21/17 $ 287,687
27,880,000 BRR BZDI 14.000 1/3/12 474,899
-------------- ---------- ------------
Citibank NA, London:
16,830,000 PLZ Six-Month WIBOR 5.520 3/24/10 (128,001)
26,928,000 PLZ Six-Month WIBOR 5.550 3/25/10 (198,096)
-------------- -----------
Citibank NA, New York:
489,400,000 TWD 2.320% TWD-Telerate 6/27/11 22,135
Six-Month
4,101,000,000 CLP TNA-Chile 6.530 8/25/17 99,017
-------------- ---------- ------------
Credit Suisse First
Boston, Inc. 46,785,000 PLZ Six-Month WIBOR 4.480 7/1/10 (57,485)
-------------- ---------- ------------
Credit Suisse
International:
133,400,000 MXN MXN TIIE 8.300 12/17/26 90,210
Six-Month
4,101,000,000 CLP TNA-Chile 6.580 8/21/17 256,592
-------------- ---------- ------------
Deutsche Bank AG:
Three-Month
127,600,000 NZD NZD-BBR 7.588 1/8/18 586,867
INR MIBOR-OIS
490,200,000 INR 7.175 Compound 6/27/11 35,665
Three-Month
578,290,000 SEK SEK-STIBOR 4.788 11/14/17 1,101,621
-------------- ---------- ------------
Goldman Sachs
Capital Markets LP 261,580,000 MXN MXN TIIE 8.140 1/10/18 271,393
-------------- ---------- ------------
Goldman Sachs CNY-
International 107,900,000 CNY 4.000 CFXSREPOFIX01 2/16/17 436,432
-------------- ---------- ------------
J Aron & Co.:
46,300,000 BRR BZDI 10.670 1/2/12 (1,669,460)
140,720,000 MXN MXN TIIE 9.150 8/27/26 1,165,836
60,800,000 MXN MXN TIIE 9.330 9/16/26 719,848
53,700,000 BRR BZDI 12.920 1/2/14 (258,171)
30 | OPPENHEIMER INTERNATIONAL BOND FUND
INTEREST RATE SWAP CONTRACTS: Continued
SWAP NOTIONAL PAID BY RECEIVED BY TERMINATION
COUNTERPARTY AMOUNT THE FUND THE FUND DATE VALUE
- ------------------------ ----------- ------------ ----------- --------- -----------
J Aron & Co.: Continued
26,730,000 BRR BZDI 12.870% 1/2/14 $ (160,636)
53,240,000 BRR BZDI 12.710 1/4/10 70,392
110,230,000 BRR BZDI 12.610 1/4/10 734,113
99,100,000 BRR BZDI 12.260 1/2/15 (1,474,950)
45,260,000 BRR BZDI 12.290 1/2/15 (633,361)
27,880,000 BRR BZDI 14.050 1/2/12 569,882
44,980,000 BRR BZDI 13.100 1/2/17 948
---------- ------- -----------
JPMorgan Chase Bank NA:
Six-Month
1,988,000,000 CZK 4.400% CZK-PRIBOR 4/4/18 --
34,270,000 BRR BZDI 13.910 1/2/12 1,128,877
---------- ------- -----------
Lehman Brothers
Special Financing, Inc.:
Six-Month
55,540,000 PLZ WIBOR 4.530 7/5/10 38,864
105,670,000 BRR BZDI 12.900 1/2/14 (1,587,609)
---------- ------- -----------
Merrill Lynch Capital
Services, Inc.:
Six-Month
141,100,000 SGD 3.335 SGD-SOR 1/8/18 (485,078)
Three-Month
321,780,000 CAD CAD-BA-CDOR 4.030 1/16/11 5,329,614
---------- ------- -----------
Morgan Stanley
Capital Services, Inc.:
Three-Month
640,910,000 SEK SEK-STIBOR 4.494 1/25/18 (2,578,590)
Six-Month
122,500,000 EUR 4.713 EURIBOR 8/22/17 (9,792,303)
Six-Month
NOK-NIBOR-
1,684,700,000 NOK 4.985 NIBR 1/18/11 6,728,081
Three-Month
670,900,000 SEK SEK-STIBOR 4.260 1/18/11 (971,825)
Six-Month
71,200,000 EUR EUR-EURIBOR 3.996 1/18/11 (787,639)
Six-Month
115,170,000 CHF CHF-BBA LIBOR 2.660 1/18/11 (761,228)
UBS AG 100,000,000 BRR BZDI 10.670 1/2/12 (4,206,702)
---------- ------- -----------
Westpac Banking Corp.:
Six-Month
111,760,000 AUD AUD-BBR 7.010 1/8/18 (1,011,979)
Six-Month
EUR-EURIBOR-
274,430,000 EUR Telerate 4.240 11/29/10 925,873
Three-Month
178,200,000 NZD 7.970 NZD-BBR-FRA 11/29/10 (2,115,805)
31 | OPPENHEIMER INTERNATIONAL BOND FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
FOOTNOTES TO STATEMENT OF INVESTMENTS Continued
INTEREST RATE SWAP CONTRACTS: Continued
SWAP NOTIONAL PAID BY RECEIVED BY TERMINATION
COUNTERPARTY AMOUNT THE FUND THE FUND DATE VALUE
- ----------------------- ----------- -------- ----------- ----------- ------------
Westpac Banking Corp.:
Continued
Three-Month
177,710,000 NZD 7.840% NZD-BBR-FRA 10/13/10 $ (255,959)
Three-Month
407,940,000 NZD 7.933 NZD-BBR-FRA 1/18/11 996,165
Three-Month
177,710,000 NZD 7.908 NZD-BBR-FRA 10/19/10 (1,859,896)
------------
$ (8,923,762)
============
Notional amount is reported in U.S. Dollars (USD), except for those denoted in
the following currencies:
AUD Australian Dollar
BRR Brazilian Real
CAD Canadian Dollar
CHF Swiss Franc
CLP Chilean Peso
CNY Chinese Renminbi (Yuan)
CZK Czech Koruna
EUR Euro
INR Indian Rupee
MXN Mexican Nuevo Peso
NOK Norwegian Krone
NZD New Zealand Dollar
PLZ Polish Zloty
SEK Swedish Krona
SGD Singapore Dollar
TWD New Taiwan Dollar
Abbreviations are as follows:
BBA LIBOR British Bankers' Association London Interbank Offered Rate
BBR Bank Bill Rate
BZDI Brazil Interbank Deposit Rate
CDOR Canada Bankers Acceptances Rate
CFXSREPOFIX01 Chinese Renminbi 7 Days Repurchase Fixing Rates
EURIBOR Euro Interbank Offered Rate
FRA Forward Rate Agreement
MIBOR-OIS Mid Market Interest Rate for French Franc/Austrian Schilling and India Swap
Composites -- Overnight Indexed Swap
NIBOR-NIBR Norwegian Interbank Offered Rate
PRIBOR Prague Interbank Offering Rate
SOR Swap Offer Rate
STIBOR Stockholm Interbank Offered Rate
TIIE Interbank Equilibrium Interest Rate
TNA Tasa Nominal Annual
WIBOR Poland Warsaw Interbank Offer Bid Rate
32 | OPPENHEIMER INTERNATIONAL BOND FUND
TOTAL RETURN SWAP CONTRACTS AS OF MARCH 31, 2008 ARE AS FOLLOWS:
SWAP NOTIONAL PAID BY RECEIVED BY TERMINATION
COUNTERPARTY AMOUNT THE FUND THE FUND DATE VALUE
- ---------------------- ------------- -------------------- ---------------- ----------- -----------
Citibank NA, New York:
Twelve-Month JPY
BBA LIBOR plus
40 basis points If positive,
and if negative, the the Total
absolute value of Return of a
the Total Return custom
of a custom basket of
7,389,208,000 JPY basket of securities securities 4/8/08 $ (61,417)
Twelve-Month
GBP BBA LIBOR
plus 35 basis
points and if neg- If positive,
ative, the absolute the Total
value of the Return of a
Total Return of a custom
custom basket of basket of
35,585,554 GBP securities securities 5/7/08 2,054,533
-----------
Deutsche Bank AG:
Six-Month USD 5.460 times
16,760,000 BBA LIBOR UDI 5/13/15 5,399,474
Six-Month USD 5.250 times
11,050,000 LIBOR UDI 6/23/15 3,121,648
-----------
Goldman Sachs Group,
Inc. Group, Inc.(The):
Six-Month BBA 5.100 times
11,580,000 LIBOR UDI 1/14/15 3,717,924
Six-Month BBA 5.080 times
11,580,000 LIBOR UDI 1/20/15 3,820,584
-----------
Goldman Sachs
International:
If negative, the If positive,
absolute value of the Total
the Total Return Return of the
of the BOVESPA BOVESPA
19,517,807 BRR 04/08 Index 04/08 Index 4/17/08 152,862
One-Month USD
BBA LIBOR and if If positive, the
negative, the Total Return
absolute value of of the MSCI
the MSCI Daily Daily Total
Total Return New Return New
Belgium USD Belgium USD
2,173,624 Market Index Market Index 10/8/08 116,724
33 | OPPENHEIMER INTERNATIONAL BOND FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
FOOTNOTES TO STATEMENT OF INVESTMENTS Continued
TOTAL RETURN SWAP CONTRACTS: Continued
SWAP NOTIONAL PAID BY RECEIVED BY TERMINATION
COUNTERPARTY AMOUNT THE FUND THE FUND DATE VALUE
- ---------------------------- ------------- ------------------ ------------- ------------ -----------
Goldman Sachs International:
Continued
One-Month USD If positive,
BBA LIBOR and if the Total
negative, the Return of the
absolute value of MSCI Daily
the MSCI Daily Total Return
Total Return New New Belgium
Belgium USD USD Market
$ 7,930,842 Market Index Index 10/8/08 $ 366,700
One-Month USD If positive,
BBA LIBOR and if the Total
negative, the Return of the
absolute value of MSCI Daily
the MSCI Daily Total Return
Total Return New New Belgium
Belgium USD USD Market
1,489,014 Market Index Index 10/8/08 71,790
One-Month USD If positive,
BBA LIBOR and if the Total
negative, the Return of the
absolute value of MSCI Daily
the MSCI Daily Total Return
Total Return New New Belgium
Belgium USD USD Market
1,037,320 Market Index Index 10/8/08 50,615
------------
Merrill Lynch Capital
Services, Inc.:
The Constant
Maturity
Option Price
divided by
134,690,000 5.3300% 10,000 8/13/17 (4,418,800)
The Constant
Maturity
Option Price
divided by
248,000,000 4.6600 10,000 6/11/17 2,818,728
------------
One-Month EUR
BBA LIBOR plus 25
basis points and if If positive,
negative, the the Total
absolute value of Return of a
the Total Return of custom
a custom basket of basket of
Morgan Stanley 31,055,220EUR securities securities 3/6/09 (1,451,662)
34 | OPPENHEIMER INTERNATIONAL BOND FUND
TOTAL RETURN SWAP CONTRACTS: Continued
SWAP NOTIONAL PAID BY RECEIVED BY TERMINATION
COUNTERPARTY AMOUNT THE FUND THE FUND DATE VALUE
- ---------------------------- --------------- ------------------- ------------- ------------- -------------
One-Month EUR
BBA LIBOR plus 30
basis points and if If positive,
negative, the the Total
absolute value of Return of a
the Total Return of custom
Morgan Stanley a custom basket of basket of
International 28,109,300 EUR securities securities 10/7/08 $ 493,216
-------------
$ 16,252,919
=============
Notional amount is reported in U.S. Dollars (USD), except for those denoted in
the following currencies:
BRR Brazilian Real
EUR Euro
GBP British Pound Sterling
JPY Japanese Yen
Abbreviations are as follows:
BBA LIBOR British Bankers' Association London-Interbank Offered Rate
BOVESPA Bovespa Index that trades on the Sao Paulo Stock Exchange
MSCI Morgan Stanley Capital International
UDI Unidad de Inversion (Unit of Investments)
CURRENCY SWAP CONTRACTS AS OF MARCH 31, 2008 ARE AS FOLLOWS:
SWAP NOTIONAL PAID BY RECEIVED BY TERMINATION
COUNTERPARTY AMOUNT THE FUND THE FUND DATE VALUE
- ------------------ ------------ ---------------- ----------- ------------ -------------
Credit Suisse
International:
Three Month
18,590,000 TRY USD BBA LIBOR 16.75% 2/26/12 $ 813,167
Three Month
7,370,000 TRY TRYUSD BBA LIBOR 17.25 2/7/12 476,015
Three Month
11,105,000 TRY TRYUSD BBA LIBOR 17.30 2/9/12 705,505
-------------
Merrill Lynch Three Month
International 3,840,000 TRY TRYBBA LIBOR 17.10 2/6/12 300,903
-------------
$ 2,295,590
=============
Notional amount is reported in U.S. Dollars (USD), except for those denoted in
the following currency:
TRY New Turkish Lira
Abbreviation is as follows:
BBA LIBOR British Bankers' Association London-Interbank Offered Rate
35 | OPPENHEIMER INTERNATIONAL BOND FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
FOOTNOTES TO STATEMENT OF INVESTMENTS Continued
DISTRIBUTION OF INVESTMENTS REPRESENTING GEOGRAPHIC HOLDINGS, AS A PERCENTAGE OF
TOTAL INVESTMENTS AT VALUE, IS AS FOLLOWS:
GEOGRAPHIC HOLDINGS VALUE PERCENT
- ---------------------- ---------------- -------
United States $ 1,667,284,823 13.9%
France 1,279,080,678 10.6
Germany 1,247,391,844 10.4
Japan 1,065,832,051 8.9
United Kingdom 944,818,554 7.9
Brazil 759,383,233 6.3
Canada 403,272,998 3.4
Australia 386,129,175 3.2
Peru 358,238,742 3.0
Russia 338,301,259 2.8
Mexico 317,101,585 2.6
European Union 299,776,742 2.5
Turkey 296,270,327 2.5
Italy 293,978,284 2.4
Colombia 224,559,116 1.9
Greece 208,728,877 1.7
Nigeria 208,689,250 1.7
The Netherlands 185,960,140 1.5
Ukraine 150,094,733 1.3
Egypt 121,790,120 1.0
Argentina 119,595,316 1.0
Austria 94,648,372 0.8
Philippines 93,449,724 0.8
Belgium 90,696,178 0.8
Israel 85,721,111 0.7
Indonesia 83,140,225 0.7
Denmark 72,507,258 0.6
Dominican Republic 70,084,293 0.6
Kazakhstan 64,147,187 0.5
Panama 59,617,010 0.5
Uruguay 58,908,295 0.5
Venezuela 55,070,788 0.5
Malaysia 53,859,444 0.5
Spain 51,143,157 0.4
Poland 38,487,429 0.3
Supranational 31,547,725 0.3
Ghana 29,547,424 0.2
India 28,575,379 0.2
Romania 23,207,310 0.2
Vietnam 17,386,399 0.1
Zambia 10,443,093 0.1
El Salvador 9,534,750 0.1
Guatemala 5,803,370 0.1
Trinidad & Tobago 4,654,036 0.0
Swaziland 4,100,250 0.0
Costa Rica 3,552,413 0.0
Bulgaria 3,447,150 0.0
---------------- -------
Total $ 12,019,557,617 100.0%
================ =======
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
36 | OPPENHEIMER INTERNATIONAL BOND FUND
STATEMENT OF ASSETS AND LIABILITIES Unaudited
March 31, 2008
ASSETS
Investments, at value--see accompanying statement of investments:
Unaffiliated companies (cost $10,306,410,405) $ 10,990,477,381
Affiliated companies (cost $ 1,029,080,236) 1,029,080,236
----------------
12,019,557,617
----------------
Cash 1,991,892
----------------
Cash--foreign currencies (cost $ 10,340,957) 10,339,807
----------------
Unrealized appreciation on foreign currency exchange contracts 440,416,284
----------------
Swaps, at value 47,579,063
----------------
Receivables and other assets:
Interest, dividends and principal paydowns 188,061,903
Closed foreign currency contracts 135,364,985
Shares of beneficial interest sold 95,748,003
Futures margins 3,173,222
Investments sold 753,759
Other 57,439
----------------
Total assets 12,943,043,974
================
LIABILITIES
Options written, at value (premiums received $1,740,965)--see accompanying
statement of investments 1,467,953
----------------
Unrealized depreciation on foreign currency exchange contracts 165,236,731
----------------
Swaps, at value 39,390,595
----------------
Payables and other liabilities:
Closed foreign currency contracts 111,498,954
Shares of beneficial interest redeemed 31,448,802
Investments purchased on a when-issued or delayed delivery basis 16,658,648
Dividends 8,270,381
Distribution and service plan fees 6,213,879
Transfer and shareholder servicing agent fees 1,159,038
Trustees' compensation 37,958
Shareholder communications 25,595
Other 3,109,711
----------------
Total liabilities 384,518,245
================
NET ASSETS $ 12,558,525,729
================
37 | OPPENHEIMER INTERNATIONAL BOND FUND
STATEMENT OF ASSETS AND LIABILITIES Unaudited / Continued
COMPOSITION OF NET ASSETS
Par value of shares of beneficial interest $ 1,861,039
----------------
Additional paid-in capital 11,237,609,473
----------------
Accumulated net investment loss (146,555,773)
----------------
Accumulated net realized gain on investments and foreign
currency transactions 509,885,380
----------------
Net unrealized appreciation on investments and translation of
assets and liabilities denominated in foreign currencies 955,725,610
----------------
NET ASSETS $ 12,558,525,729
================
NET ASSET VALUE PER SHARE
Class A Shares:
Net asset value and redemption price per share (based on net assets
of $ 9,056,227,807 and 1,341,092,327 shares of beneficial
interest outstanding) $ 6.75
Maximum offering price per share (net asset value plus
sales charge of 4.75% of offering price) $ 7.09
----------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net
assets of $ 332,376,041 and 49,393,660 shares of beneficial
interest outstanding) $ 6.73
----------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net
assets of $ 2,008,571,973 and 298,455,693 shares of beneficial
interest outstanding) $ 6.73
----------------
Class N Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net
assets of $ 231,940,853 and 34,439,016 shares of beneficial
interest outstanding) $ 6.73
----------------
Class Y Shares:
Net asset value, redemption price and offering price per share
(based on net assets of $ 929,409,055 and 137,658,097 shares
of beneficial interest outstanding) $ 6.75
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
38 | OPPENHEIMER INTERNATIONAL BOND FUND
STATEMENT OF OPERATIONS Unaudited
For the Six Months Ended March 31, 2008
INVESTMENT INCOME
Interest (net of foreign withholding taxes of $ 1,828,140) $ 230,955,527
----------------
Dividends:
Unaffiliated companies 1,842
Affiliated companies 16,404,866
----------------
Portfolio lending fees 301,684
----------------
Total investment income 247,663,919
================
EXPENSES
Management fees 26,221,579
----------------
Distribution and service plan fees:
Class A 9,260,464
Class B 1,391,303
Class C 8,116,652
Class N 440,384
----------------
Transfer and shareholder servicing agent fees:
Class A 5,103,796
Class B 316,563
Class C 953,350
Class N 503,376
Class Y 54,507
----------------
Shareholder communications:
Class A 157,096
Class B 16,095
Class C 32,811
Class N 2,376
Class Y 2,180
----------------
Custodian fees and expenses 292,249
----------------
Trustees' compensation 69,383
----------------
Administration service fees 750
----------------
Other 298,068
----------------
Total expenses 53,232,982
Less reduction to custodian expenses (25,846)
Less waivers and reimbursements of expenses (540,444)
----------------
Net expenses 52,666,692
================
NET INVESTMENT INCOME 194,997,227
39 | OPPENHEIMER INTERNATIONAL BOND FUND
STATEMENT OF OPERATIONS Unaudited / Continued
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments from unaffiliated companies (including premiums on
options exercised) $ 96,714,904
Closing and expiration of option contracts written 12,499,143
Closing and expiration of futures contracts 92,917,925
Foreign currency transactions 337,075,107
Swap contracts (29,580,087)
----------------
Net realized gain 509,626,992
----------------
Net change in unrealized appreciation (depreciation) on:
Investments (119,668,330)
Translation of assets and liabilities denominated in foreign currencies 511,910,537
Futures contracts (2,871,659)
Option contracts written 339,503
Swap contracts (24,972,337)
----------------
Net change in unrealized appreciation 364,737,714
================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 1,069,361,933
================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
40 | OPPENHEIMER INTERNATIONAL BOND FUND
STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS YEAR
ENDED ENDED
MARCH 31, 2008 SEPTEMBER 30,
(UNAUDITED) 2007
--------------- ----------------
OPERATIONS
Net investment income $ 194,997,227 $ 257,556,342
--------------- ----------------
Net realized gain 509,626,992 252,152,510
--------------- ----------------
Net change in unrealized appreciation 364,737,714 437,301,778
--------------- ----------------
Net increase in net assets resulting from operations 1,069,361,933 947,010,630
=============== ================
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income:
Class A (351,060,109) (198,019,724)
Class B (12,399,592) (7,485,081)
Class C (71,285,272) (34,902,172)
Class N (8,488,221) (3,994,007)
Class Y (33,795,942) (13,121,592)
--------------- ----------------
(477,029,136) (257,522,576)
--------------- ----------------
Distributions from net realized gain:
Class A (28,021,443) (9,318,202)
Class B (1,084,821) (500,541)
Class C (6,187,775) (2,033,412)
Class N (709,320) (194,577)
Class Y (2,674,800) (465,053)
--------------- ----------------
(38,678,159) (12,511,785)
=============== ================
BENEFICIAL INTEREST TRANSACTIONS
Net increase in net assets resulting from beneficial interest transactions:
Class A 2,355,257,036 1,722,287,255
Class B 57,755,871 283,956
Class C 562,716,053 374,437,685
Class N 68,503,291 78,446,426
Class Y 435,676,079 247,318,830
--------------- ----------------
3,479,908,330 2,422,774,152
=============== ================
NET ASSETS
Total increase 4,033,562,968 3,099,750,421
--------------- ----------------
Beginning of period 8,524,962,761 5,425,212,340
--------------- ----------------
End of period (including accumulated net investment
income (loss) of $(146,555,773) and $135,476,136, respectively) $12,558,525,729 $ 8,524,962,761
=============== ================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
41 | OPPENHEIMER INTERNATIONAL BOND FUND
FINANCIAL HIGHLIGHTS
SIX MONTHS
ENDED
MARCH 31, 2008 YEAR ENDED SEPTEMBER 30,
CLASS A (UNAUDITED) 2007 2006 2005 2004 2003
- -------------------------------- -------------- ----------- ----------- ----------- ----------- ---------
PER SHARE OPERATING DATA
Net asset value, beginning of
period $ 6.41 $ 5.80 $ 6.01 $ 5.63 $ 5.33 $ 4.38
-------------- ----------- ----------- ----------- ----------- ---------
Income (loss) from investment
operations:
Net investment income .13(1) .24(1) .22(1) .23(1) .13 .20
Net realized and unrealized
gain (loss) .55 .62 (.04) .62 .47 .95
-------------- ----------- ----------- ----------- ----------- ---------
Total from investment
operations .68 .86 .18 .85 .60 1.15
-------------- ----------- ----------- ----------- ----------- ---------
Dividends and/or distributions
to shareholders:
Dividends from net investment
income (.31) (.24) (.37) (.41) (.30) (.20)
Distributions from net
realized gain (.03) (.01) (.02) (.06) -- --
-------------- ----------- ----------- ----------- ----------- ---------
Total dividends and/or
distributions
to shareholders (.34) (.25) (.39) (.47) (.30) (.20)
-------------- ----------- ----------- ----------- ----------- ---------
Net asset value, end of
period $ 6.75 $ 6.41 $ 5.80 $ 6.01 $ 5.63 $ 5.33
============== =========== =========== =========== =========== =========
TOTAL RETURN, AT NET
ASSET VALUE (2) 10.92% 15.18% 3.23% 15.53% 11.56% 26.67%
============== =========== =========== =========== =========== =========
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
thousands) $ 9,056,228 $ 6,300,320 $ 4,075,172 $ 2,683,900 $ 1,177,628 $ 429,283
-------------- ----------- ----------- ----------- ----------- ---------
Average net assets (in
thousands) $ 7,511,180 $ 4,988,412 $ 3,430,374 $ 1,925,344 $ 811,608 $ 285,391
-------------- ----------- ----------- ----------- ----------- ---------
Ratios to average net
assets: (3)
Net investment income 3.89% 3.97% 3.72% 3.85% 2.19% 3.94%
Total expenses 0.91%(4) 0.94%(4) 0.98% 1.03% 1.13% 1.22%
Expenses after payments, waivers
and/or
reimbursements and
reduction to
custodian expenses 0.90% 0.93% 0.97% 1.02% 1.13% 1.22%
-------------- ----------- ----------- ----------- ----------- ---------
Portfolio turnover rate 50% 68% 144% 90% 133% 341%
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 March 31, 2008 0.92%
Year Ended September 30, 2007 0.95%
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
42 | OPPENHEIMER INTERNATIONAL BOND FUND
SIX MONTHS
ENDED
MARCH 31, 2008 YEAR ENDED SEPTEMBER 30,
CLASS B (UNAUDITED) 2007 2006 2005 2004 2003
-------------- ----------- ----------- ----------- ----------- ---------
PER SHARE OPERATING DATA
Net asset value, beginning of
period $ 6.39 $ 5.78 $ 5.99 $ 5.61 $ 5.31 $ 4.37
-------------- ----------- ----------- ----------- ----------- ---------
Income (loss) from investment
operations:
Net investment income .10(1) .19(1) .17(1) .17(1) .08 .16
Net realized and unrealized
gain (loss) .56 .62 (.04) .63 .47 .94
-------------- ----------- ----------- ----------- ----------- ---------
Total from investment operations .66 .81 .13 .80 .55 1.10
-------------- ----------- ----------- ----------- ----------- ---------
Dividends and/or distributions
to shareholders:
Dividends from net
investment income (.29) (.19) (.32) (.36) (.25) (.16)
Distributions from net realized
gain (.03) (.01) (.02) (.06) -- --
-------------- ----------- ----------- ----------- ----------- ---------
Total dividends and/or
distributions
to shareholders (.32) (.20) (.34) (.42) (.25) (.16)
-------------- ----------- ----------- ----------- ----------- ---------
Net asset value, end of period $ 6.73 $ 6.39 $ 5.78 $ 5.99 $ 5.61 $ 5.31
============== =========== =========== =========== =========== =========
TOTAL RETURN, AT NET
ASSET VALUE (2) 10.51% 14.26% 2.35% 14.58% 10.66% 25.48%
============== =========== =========== =========== =========== =========
RATIOS/SUPPLEMENTAL DATA
Net assets, end of
period (in thousands) $ 332,376 $ 259,285 $ 234,848 $ 224,381 $ 167,621 $ 134,661
-------------- ----------- ----------- ----------- ----------- ---------
Average net assets (in thousands) $ 288,078 $ 240,238 $ 229,871 $ 201,541 $ 153,117 $ 119,232
-------------- ----------- ----------- ----------- ----------- ---------
Ratios to average net assets: (3)
Net investment income 3.09% 3.12% 2.88% 2.95% 1.40% 3.20%
Total expenses 1.72%(4) 1.79%(4) 1.83% 1.89% 1.98% 2.03%
Expenses after payments,
waivers and/or
reimbursements and reduction to
custodian expenses 1.71% 1.78% 1.83% 1.89% 1.98% 2.03%
-------------- ----------- ----------- ----------- ----------- ---------
Portfolio turnover rate 50% 68% 144% 90% 133% 341%
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 March 31, 2008 1.73%
Year Ended September 30, 2007 1.80%
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
43 | OPPENHEIMER INTERNATIONAL BOND FUND
FINANCIAL HIGHLIGHTS Continued
SIX MONTHS
ENDED
MARCH 31, 2008 YEAR ENDED SEPTEMBER 30,
CLASS C (UNAUDITED) 2007 2006 2005 2004 2003
-------------- ----------- ----------- ----------- ----------- ---------
PER SHARE OPERATING DATA
Net asset value, beginning
of period $ 6.39 $ 5.78 $ 5.99 $ 5.61 $ 5.31 $ 4.37
-------------- ----------- ----------- ----------- ----------- ---------
Income (loss) from
investment operations:
Net investment income .10(1) .20(1) .17(1) .18(1) .09 .16
Net realized and unrealized
gain (loss) .56 .62 (.03) .63 .46 .94
-------------- ----------- ----------- ----------- ----------- ---------
Total from investment
operations .66 .82 .14 .81 .55 1.10
-------------- ----------- ----------- ----------- ----------- ---------
Dividends and/or distributions
to shareholders:
Dividends from net
investment income (.29) (.20) (.33) (.37) (.25) (.16)
Distributions from net
realized gain (.03) (.01) (.02) (.06) -- --
-------------- ----------- ----------- ----------- ----------- ---------
Total dividends and/or
distributions
to shareholders (.32) (.21) (.35) (.43) (.25) (.16)
-------------- ----------- ----------- ----------- ----------- ---------
Net asset value, end of
period $ 6.73 $ 6.39 $ 5.78 $ 5.99 $ 5.61 $ 5.31
============== =========== =========== =========== =========== =========
TOTAL RETURN, AT NET ASSET
VALUE (2) 10.56% 14.39% 2.46% 14.70% 10.75% 25.48%
============== =========== =========== =========== =========== =========
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(in thousands) $ 2,008,572 $ 1,357,937 $ 875,032 $ 560,138 $ 233,311 $ 90,248
-------------- ----------- ----------- ----------- ----------- ---------
Average net assets (in
thousands) $ 1,649,879 $ 1,078,601 $ 717,977 $ 401,401 $ 170,796 $ 63,198
-------------- ----------- ----------- ----------- ----------- ---------
Ratios to average net
assets: (3)
Net investment income 3.17% 3.24% 2.98% 3.10% 1.46% 3.15%
Total expenses 1.62%(4) 1.67%(4) 1.71% 1.77% 1.88% 2.02%
Expenses after payments,
waivers and/or reimbursements
and reduction to custodian
expenses 1.61% 1.66% 1.71% 1.77% 1.88% 2.02%
-------------- ----------- ----------- ----------- ----------- ---------
Portfolio turnover rate 50% 68% 144% 90% 133% 341%
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 March 31, 2008 1.63%
Year Ended September 30, 2007 1.68%
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
44 | OPPENHEIMER INTERNATIONAL BOND FUND
SIX MONTHS
ENDED
MARCH 31, 2008 YEAR ENDED SEPTEMBER 30,
CLASS N (UNAUDITED) 2007 2006 2005 2004 2003
--------------- ----------- ----------- ----------- ----------- ---------
PER SHARE OPERATING DATA
Net asset value, beginning
of period $ 6.40 $ 5.79 $ 6.00 $ 5.61 $ 5.32 $ 4.37
-------------- ----------- ----------- ----------- ----------- ---------
Income (loss) from
investment operations:
Net investment income .11(1) .22(1) .19(1) .20(1) .12 .18
Net realized and unrealized
gain (loss) .55 .61 (.04) .64 .45 .95
-------------- ----------- ----------- ----------- ----------- ---------
Total from investment operations .66 .83 .15 .84 .57 1.13
-------------- ----------- ----------- ----------- ----------- ---------
Dividends and/or distributions
to shareholders:
Dividends from net
investment income (.30) (.21) (.34) (.39) (.28) (.18)
Distributions from net
realized gain (.03) (.01) (.02) (.06) -- --
-------------- ----------- ----------- ----------- ----------- ---------
Total dividends and/or
distributions to shareholders (.33) (.22) (.36) (.45) (.28) (.18)
-------------- ----------- ----------- ----------- ----------- ---------
Net asset value, end of period $ 6.73 $ 6.40 $ 5.79 $ 6.00 $ 5.61 $ 5.32
============== =========== =========== =========== =========== =========
TOTAL RETURN, AT NET ASSET
VALUE (2) 10.54% 14.71% 2.78% 15.27% 11.00% 26.31%
============== =========== =========== =========== =========== =========
RATIOS/SUPPLEMENTAL DATA
Net assets, end of
period (in thousands) $ 231,941 $ 153,181 $ 63,432 $ 46,533 $ 18,641 $ 4,640
-------------- ----------- ----------- ----------- ----------- ---------
Average net assets
(in thousands) $ 190,011 $ 112,319 $ 55,216 $ 30,696 $ 10,769 $ 2,653
-------------- ----------- ----------- ----------- ----------- ---------
Ratios to average
net assets: (3)
Net investment income 3.48% 3.56% 3.29% 3.45% 1.83% 3.56%
Total expenses 1.52%(4) 1.61%(4) 1.58% 1.47% 1.49% 1.57%
Expenses after payments,
waivers and/or
reimbursements and reduction to
custodian expenses 1.32% 1.37% 1.42% 1.46% 1.49% 1.57%
-------------- ----------- ----------- ----------- ----------- ---------
Portfolio turnover rate 50% 68% 144% 90% 133% 341%
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 March 31, 2008 1.53%
Year Ended September 30, 2007 1.62%
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
45 | OPPENHEIMER INTERNATIONAL BOND FUND
FINANCIAL HIGHLIGHTS Continued
SIX MONTHS
ENDED
MARCH 31, 2008 YEAR ENDED SEPTEMBER 30,
CLASS Y (UNAUDITED) 2007 2006 2005 2004(1)
- ----------------------------------------------- -------------- ----------- ----------- ----------- -----------
PER SHARE OPERATING DATA
Net asset value, beginning of period $ 6.41 $ 5.80 $ 6.01 $ 5.63 $ 5.58
----------- ----------- ----------- ----------- -----------
Income (loss) from investment operations:
Net investment income (loss) .14(2) .27(2) .24(2) .25(2) --(3)
Net realized and unrealized gain (loss) .56 .62 (.04) .63 .05
----------- ----------- ----------- ----------- -----------
Total from investment operations .70 .89 .20 .88 .05
----------- ----------- ----------- ----------- -----------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.33) (.27) (.39) (.44) --
Distributions from net realized gain (.03) (.01) (.02) (.06) --
----------- ----------- ----------- ----------- -----------
Total dividends and/or distributions
to shareholders (.36) (.28) (.41) (.50) --
----------- ----------- ----------- ----------- -----------
Net asset value, end of period $ 6.75 $ 6.41 $ 5.80 $ 6.01 $ 5.63
=========== =========== =========== =========== ===========
TOTAL RETURN, AT NET ASSET VALUE (4) 11.14% 15.63% 3.64% 15.96% 0.92%
=========== =========== =========== =========== ===========
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $ 929,409 $ 454,240 $ 176,728 $ 37,286 $ 14,268
----------- ----------- ----------- ----------- -----------
Average net assets (in thousands) $ 703,108 $ 299,298 $ 97,992 $ 25,559 $ 7,086
----------- ----------- ----------- ----------- -----------
Ratios to average net assets: (5)
Net investment income 4.26% 4.38% 4.11% 4.23% 4.84%
Total expenses 0.53%(6) 0.55%(6) 0.56% 0.67% 1.17%
Expenses after payments, waivers and/or
reimbursements and reduction to
custodian expenses 0.52% 0.54% 0.56% 0.66% 1.17%
----------- ----------- ----------- ----------- -----------
Portfolio turnover rate 50% 68% 144% 90% 133%
1. For the period from September 27, 2004 (inception of offering) to
September 30, 2004.
2. Per share amounts calculated based on the average shares outstanding
during the period.
3. Less than $0.005 per share.
4. Assumes an investment on the business day before the first day of the
fiscal period, with all dividends and distributions reinvested in
additional shares on the reinvestment date, and redemption at the net
asset value calculated on the last business day of the fiscal period.
Sales charges are not reflected in the total returns. Total returns are
not annualized for periods less than one full year. Returns do not reflect
the deduction of taxes that a shareholder would pay on fund distributions
or the redemption of fund shares.
5. Annualized for periods less than one full year.
6. Total expenses including indirect expenses from affiliated fund were as
follows:
Six Months Ended March 31, 2008 0.54%
Year Ended September 30, 2007 0.56%
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
46 | OPPENHEIMER INTERNATIONAL BOND FUND
NOTES TO FINANCIAL STATEMENTS Unaudited
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer International Bond Fund (the "Fund") is a registered investment
company organized as a Massachusetts Business Trust. The Fund is registered as a
non-diversified, open-end management investment company under the Investment
Company Act of 1940, as amended. The Fund's primary objective is to seek total
return. As a secondary objective, the Fund seeks income when consistent with
total return. 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 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 securities will be valued at the
mean between
47 | OPPENHEIMER INTERNATIONAL BOND FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
1. SIGNIFICANT ACCOUNTING POLICIES Continued
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.
STRUCTURED SECURITIES. The Fund invests in structured securities whose market
values, interest rates and/or redemption prices are linked to the performance of
underlying foreign currencies, interest rate spreads, stock market indices,
prices of individual securities, commodities or other financial instruments or
the occurrence of other specific events. The structured securities are often
leveraged, increasing the volatility of each note's market value relative to the
change in the underlying linked financial element or event. Fluctuations in
value of these securities are recorded as unrealized gains and losses in the
accompanying Statement of Operations. The Fund records a realized gain or loss
when a structured security is sold or matures.
SECURITIES ON A WHEN-ISSUED OR DELAYED DELIVERY BASIS. The Fund may purchase
securities on a "when-issued" basis, and may purchase or sell securities on a
"delayed delivery" basis. "When-issued" or "delayed delivery" refers to
securities whose terms and indenture are available and for which a market
exists, but which are not available for immediate delivery. Delivery and payment
for securities that have been purchased by the Fund on a when-issued basis
normally takes place within six months and possibly as long as two years or more
after the trade date. During this period, such securities do not earn interest,
are subject to market fluctuation and may increase or decrease in value prior to
their delivery. The purchase of securities on a when-issued basis may increase
the volatility of the Fund's net asset value to the extent the Fund executes
such transactions while remaining substantially fully invested. When the Fund
engages in when-issued or delayed delivery transactions, it relies on the buyer
or seller, as the case may be, to complete the transaction. Their failure to do
so may cause the Fund to lose the opportunity to obtain or dispose of the
security at a price and yield it considers advantageous. The Fund maintains
internally designated assets with a market value equal to or greater than the
amount of its purchase commitments. The Fund may also sell securities that it
purchased on a when-issued basis or forward commitment prior to settlement of
the original purchase.
48 | OPPENHEIMER INTERNATIONAL BOND FUND
As of March 31, 2008, the Fund had purchased securities issued on a when-issued
or delayed delivery basis and sold securities issued on a delayed delivery basis
as follows:
WHEN-ISSUED OR DELAYED
DELIVERY BASIS TRANSACTIONS
---------------------------
Purchased securities $ 16,658,648
CREDIT RISK. The Fund invests in high-yield, non-investment-grade bonds, which
may be subject to a greater degree of credit risk. Credit risk relates to the
ability of the issuer to meet interest or principal payments or both as they
become due. The Fund may acquire securities in default, and is not obligated to
dispose of securities whose issuers subsequently default. As of March 31, 2008,
securities that were in default had a market value of zero.
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.
49 | OPPENHEIMER INTERNATIONAL BOND FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
1. SIGNIFICANT ACCOUNTING POLICIES Continued
INVESTMENTS WITH OFF-BALANCE SHEET RISK. The Fund enters into financial
instrument transactions (such as swaps, futures, options and other derivatives)
that may have off-balance sheet market risk. Off-balance sheet market risk
exists when the maximum potential loss on a particular financial instrument is
greater than the value of such financial instrument, as reflected in the Fund's
Statement of Assets and Liabilities.
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.
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 March 31, 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 $ 11,336,137,960
Federal tax cost of other investments 1,943,808,736
--------------------
Total federal tax cost $ 13,279,946,696
====================
Gross unrealized appreciation $ 878,402,617
Gross unrealized depreciation (204,873,672)
--------------------
Net unrealized appreciation $ 673,528,945
====================
50 | OPPENHEIMER INTERNATIONAL BOND FUND
TRUSTEES' COMPENSATION. 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. Income distributions, if any, are declared daily and paid
monthly. Capital gain distributions, if any, are declared and paid annually.
INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date or upon
ex-dividend notification in the case of certain foreign dividends where the
ex-dividend date may have passed. Non-cash dividends included in dividend
income, if any, are recorded at the fair market value of the securities
received. Interest income 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
51 | OPPENHEIMER INTERNATIONAL BOND FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
1. SIGNIFICANT ACCOUNTING POLICIES Continued
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.
2. SHARES OF BENEFICIAL INTEREST
The Fund has authorized an unlimited number of $0.001 par value shares of
beneficial interest of each class. Transactions in shares of beneficial interest
were as follows:
SIX MONTHS ENDED MARCH 31, 2008 YEAR ENDED SEPTEMBER 30, 2007
SHARES AMOUNT SHARES AMOUNT
------------ --------------- ------------ ---------------
CLASS A
Sold 443,735,799 $ 2,915,169,514 433,932,882 $ 2,659,913,820
Dividends and/or
distributions reinvested 46,151,478 298,269,874 25,787,295 158,485,899
Redeemed (130,996,754) (858,182,352) (179,871,991) (1,096,112,464)
------------ --------------- ------------ ---------------
Net increase 358,890,523 $ 2,355,257,036 279,848,186 $ 1,722,287,255
============ =============== ============ ===============
CLASS B
Sold 13,430,387 $ 87,935,609 10,415,726 $ 63,664,138
Dividends and/or
distributions reinvested 1,691,595 10,864,167 1,057,950 6,467,460
Redeemed (6,286,327) (41,043,905) (11,528,127) (69,847,642)
------------ --------------- ------------ ---------------
Net increase (decrease) 8,835,655 $ 57,755,871 (54,451) $ 283,956
============ =============== ============ ===============
CLASS C
Sold 99,458,617 $ 651,154,407 88,253,662 $ 539,409,592
Dividends and/or
distributions reinvested 7,468,293 47,980,569 3,770,947 23,093,523
Redeemed (20,861,746) (136,418,923) (30,938,093) (188,065,430)
------------ --------------- ------------ ---------------
Net increase 86,065,164 $ 562,716,053 61,086,516 $ 374,437,685
============ =============== ============ ===============
CLASS N
Sold 13,128,465 $ 85,778,624 16,571,249 $ 100,240,959
Dividends and/or
distributions reinvested 1,337,438 8,611,243 633,640 3,890,963
Redeemed (3,967,814) (25,886,576) (4,223,784) (25,685,496)
------------ --------------- ------------ ---------------
Net increase 10,498,089 $ 68,503,291 12,981,105 $ 78,446,426
============ =============== ============ ===============
52 | OPPENHEIMER INTERNATIONAL BOND FUND
SIX MONTHS ENDED MARCH 31, 2008 YEAR ENDED SEPTEMBER 30, 2007
SHARES AMOUNT SHARES AMOUNT
------------ --------------- ------------ ---------------
CLASS Y
Sold 71,019,970 $ 463,646,170 42,411,954 $ 259,884,092
Dividends and/or
distributions reinvested 5,028,087 32,500,861 2,027,388 12,488,704
Redeemed (9,207,197) (60,470,952) (4,082,901) (25,053,966)
------------ --------------- ------------ ---------------
Net increase 66,840,860 $ 435,676,079 40,356,441 $ 247,318,830
============ =============== ============ ===============
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
March 31, 2008, were as follows:
PURCHASES SALES
-------------- --------------
Investment securities $6,205,099,722 $3,027,144,695
U.S. government and
government agency obligations 479,166,172 711,827,625
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 $200 million 0.75%
Next $200 million 0.72
Next $200 million 0.69
Next $200 million 0.66
Next $200 million 0.60
Next $4 billion 0.50
Over $5 billion 0.48
ADMINISTRATION SERVICE FEES. The Fund pays the Manager a fee of $1,500 per year
for preparing and filing the Fund's tax returns.
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 March 31, 2008, the
Fund paid $6,561,449 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.
53 | OPPENHEIMER INTERNATIONAL BOND FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued
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.
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 March 31, 2008 for Class B, Class C and Class N
shares were $8,480,966, $24,358,471 and $2,135,201, 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
SIX MONTHS RETAINED BY RETAINED BY RETAINED BY RETAINED BY RETAINED BY
ENDED DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR
- ------------------- ------------- ------------- ------------- ------------- -------------
March 31, 2008 $ 1,558,681 $ 136,819 $ 289,409 $ 173,585 $ 5,185
54 | OPPENHEIMER INTERNATIONAL BOND FUND
WAIVERS AND REIMBURSEMENTS OF EXPENSES. OFS has voluntarily agreed to limit
transfer and shareholder servicing agent fees for all classes to 0.35% of
average annual net assets per class. During the six months ended March 31, 2008,
OFS waived $176,329 for Class N shares. This undertaking may be amended or
withdrawn at any time.
The Manager will waive fees and/or reimburse Fund expenses in an amount
equal to the indirect management fees incurred through the Fund's investment in
IMMF. During the six months ended March 31, 2008, the Manager waived $364,115
for IMMF management fees.
5. FOREIGN CURRENCY EXCHANGE 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.
Forward 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.
6. FUTURES CONTRACTS
A futures contract is a commitment to buy or sell a specific amount of a
financial instrument at a negotiated price on a stipulated future date. The Fund
may buy and sell futures and may also buy or write put or call options on these
futures contracts.
Futures contracts traded on a commodities or futures exchange will be
valued at the final settlement price or official closing price on the principal
exchange as reported by such principal exchange at its trading session ending
at, or most recently prior to, the time when the Fund's assets are valued.
Upon entering into a futures contract, the Fund is required to deposit
either cash or securities (initial margin) in an amount equal to a certain
percentage of the contract value. Subsequent payments (variation margin) are
made or received by the Fund each day. The variation margin payments are equal
to the daily changes in the contract value and are recorded as unrealized gains
and losses.
55 | OPPENHEIMER INTERNATIONAL BOND FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
6. FUTURES CONTRACTS Continued
Futures contracts are reported on a schedule following the Statement of
Investments. Securities held in collateralized accounts to cover initial margin
requirements on open futures contracts are noted in the Statement of
Investments. Cash held by the broker to cover initial margin requirements on
open futures contracts and the receivable and/or payable for the daily mark to
market for the variation margin are noted in the Statement of Assets and
Liabilities. The net change in unrealized appreciation and depreciation is
reported in the Statement of Operations. Realized gains (losses) are reported in
the Statement of Operations at the closing or expiration of futures contracts.
Risks of entering into futures contracts (and related options) include the
possibility that there may be an illiquid market where the Fund is unable to
liquidate the contract or enter into an offsetting position and, if used for
hedging purposes, the risk that the price of the contract will correlate
imperfectly with the prices of the Fund's securities.
7. OPTION ACTIVITY
The Fund may buy and sell put and call options, or write put and covered call
options. When an option is written, the Fund receives a premium and becomes
obligated to sell or purchase the underlying security at a fixed price, upon
exercise of the option.
Options are valued daily based upon the last sale price on the principal
exchange on which the option is traded. The difference between the premium
received or paid, and market value of the option, is recorded as unrealized
appreciation or depreciation. The net change in unrealized appreciation or
depreciation is reported in the Statement of Operations. When an option is
exercised, the cost of the security purchased or the proceeds of the security
sale are adjusted by the amount of premium received or paid. Upon the expiration
or closing of the option transaction, a gain or loss is reported in the
Statement of Operations.
Securities designated to cover outstanding call or put options are noted
in the Statement of Investments where applicable. Options written are reported
in a schedule following the Statement of Investments and as a liability in the
Statement of Assets and Liabilities.
The risk in writing a call option is that the Fund gives up the
opportunity for profit if the market price of the security increases and the
option is exercised. The risk in writing a put option is that the Fund may incur
a loss if the market price of the security decreases and the option is
exercised. The risk in buying an option is that the Fund pays a premium whether
or not the option is exercised. The Fund also has the additional risk that there
may be an illiquid market where the Fund is unable to close the contract.
56 | OPPENHEIMER INTERNATIONAL BOND FUND
Written option activity for the six months ended March 31, 2008 was as follows:
CALL OPTIONS PUT OPTIONS
--------------------------------- ----------------------------------
NUMBER OF AMOUNT OF NUMBER OF AMOUNT OF
CONTRACTS PREMIUMS CONTRACTS PREMIUMS
--------------- --------------- --------------- ---------------
Options outstanding as of
September 30, 2007 15,320,000 $ 96,794 15,320,000 $ 96,917
Options written 76,126,860,000 13,536,970 48,200,375,000 10,654,326
Options closed or expired (46,403,540,000) (7,324,150) (26,313,925,000) (5,913,620)
Options exercised (25,324,530,000) (5,441,777) (17,487,660,000) (3,964,495)
--------------- --------------- --------------- ---------------
Options outstanding as of
March 31, 2008 4,414,110,000 $ 867,837 4,414,110,000 $ 873,128
=============== =============== =============== ===============
8. SWAP CONTRACTS
The Fund may enter into swap contract agreements with a counterparty to exchange
a series of cash flows based on either specified reference rates, or the
occurrence of a credit event, over a specified period. Such contracts may
include interest rate, equity, debt, index, total return, credit and currency
swaps.
Swaps are marked to market daily using primarily quotations from pricing
services, counterparties and brokers. Swap contracts are reported on a schedule
following the Statement of Investments. The value of the contracts is separately
disclosed on the Statement of Assets and Liabilities. The unrealized
appreciation (depreciation) related to the change in the valuation of the
notional amount of the swap is combined with the accrued interest due to (owed
by) the Fund at termination or settlement. The net change in this amount during
the period is included on the Statement of Operations. The Fund also records any
periodic payments received from (paid to) the counterparty, including at
termination, under such contracts as realized gain (loss) on the Statement of
Operations.
Risks of entering into swap contracts include credit, market and liquidity
risk. 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. Market risk
is the risk that the value of the contract will depreciate due to unfavorable
changes in the reference asset. If there is an illiquid market for the
agreement, the Fund may be unable to close the contract prior to contract
termination.
CREDIT DEFAULT SWAP CONTRACTS. A credit default swap is a bilateral contract
that enables an investor to buy or sell protection against a defined-issuer
credit event. The Fund may enter into credit default swaps on a single security,
or a basket of securities.
In a credit default swap contract, the purchaser of the contract will pay
a periodic interest fee, similar to an insurance premium, on the notional amount
of the swap contract to the counterparty (the seller of the contract). If there
is a credit event (for example, bankruptcy or a failure to timely pay interest
or principal), the purchaser will exercise the contract and will receive a
payment from the seller of the contract equal to the notional
57 | OPPENHEIMER INTERNATIONAL BOND FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
8. SWAP CONTRACTS Continued
value of the credit default swap contract less the value of the underlying
security. In the event that the credit default swap is exercised due to a credit
event, the difference between the value of the underlying security and the
notional amount is recorded as realized gain (loss) and is included on the
Statement of Operations.
Risks of credit default swaps include, but are not limited to, the cost of
paying for credit protection if there are no credit events, or the cost of
selling protection (paying the notional amount) when a credit event occurs,
pricing transparency when assessing the cost of a credit default swap, and the
need to fund the delivery obligation (either cash or defaulted securities).
INTEREST RATE SWAP CONTRACTS. An interest rate swap is an agreement between
counter-parties to exchange periodic interest payments on the notional amount of
the contract. One cash flow stream will typically be a floating rate payment
based upon a specified index while the other is typically a fixed rate.
Interest rate swap agreements include interest rate risk. There is a risk,
based on future movements of interest rates where the payments made by the Fund
under a swap agreement will be greater than the payments it received.
TOTAL RETURN SWAP CONTRACTS. A total return swap is an agreement between
counter-parties to exchange a set of future cash flows on the notional amount of
the contract. One cash flow is typically based on a reference interest rate or
index and the other on the total return of a reference asset such as a security,
a basket of securities, or an index. The total return includes appreciation or
depreciation on the reference asset, plus any interest or dividend payments.
CURRENCY SWAPS. A currency swap is an agreement between counterparties to
exchange different currencies equivalent to the notional value at contract
inception and reverse the exchange of the same notional values of those
currencies at contract termination. The contract may also include periodic
exchanges of cash flows based on a specified index or interest rate.
Currency swap agreements include exchange rate risk. Due to the exchange
of currency at contract termination, changes in currency exchange rates may
result in the Fund paying an amount greater than the amount received. There is a
risk, based on movements of interest rates or indexes that the periodic payments
made by the Fund will be greater than the payments received.
9. ILLIQUID OR RESTRICTED SECURITIES
As of March 31, 2008, investments in securities included issues that are
illiquid or restricted. 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. A restricted security may have a contractual
restriction on its resale and is valued under methods approved by the Board of
Trustees as reflecting fair value. The Fund will
58 | OPPENHEIMER INTERNATIONAL BOND FUND
not invest more than 15% of its net assets (determined at the time of purchase
and reviewed periodically) in illiquid and restricted securities. Certain
restricted securities, eligible for resale to qualified institutional
purchasers, may not be subject to that limitation. Securities that are illiquid
or restricted are marked with an applicable footnote on the Statement of
Investments. Restricted securities are reported on a schedule following the
Statement of Investments.
10. UNFUNDED PURCHASE COMMITMENTS
Pursuant to the terms of certain indenture agreements, the Fund has unfunded
purchase commitments of $24,636,364 at March 31, 2008. The Fund generally will
maintain with its custodian, liquid investments having an aggregate value at
least equal to the amount of unfunded purchase commitments. The following
commitments are subject to funding based on the borrower's discretion. The Fund
is obligated to fund these commitments at the time of the request by the
borrower. These commitments have been excluded from the Statement of
Investments.
As of March 31, 2008, the Fund had unfunded purchase commitments as follows:
COMMITMENT
TERMINATION UNFUNDED
DATE AMOUNT
----------- ------------
Deutsche Bank AG, Optic Reforma
Credit Linked Nts. 10/3/15 $ 24,636,364
11. 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 March 31, 2008, the Fund had no securities on loan.
59 | OPPENHEIMER INTERNATIONAL BOND FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
12. RECENT ACCOUNTING PRONOUNCEMENT
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 March
31, 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.
60 | OPPENHEIMER INTERNATIONAL BOND FUND
PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES;
UPDATES TO STATEMENTS OF INVESTMENTS Unaudited
The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which
the Fund votes proxies relating to securities ("portfolio proxies") held by the
Fund. A description of the Fund's Portfolio Proxy Voting Policies and Procedures
is available (i) without charge, upon request, by calling the Fund toll-free at
1.800.525.7048, (ii) on the Fund's website at www.oppenheimerfunds.com, and
(iii) on the SEC's website at www.sec.gov. In addition, the Fund is required to
file Form N-PX, with its complete proxy voting record for the 12 months ended
June 30th, no later than August 31st of each year. The Fund's voting record is
available (i) without charge, upon request, by calling the Fund toll-free at
1.800.525.7048, and (ii) in the Form N-PX filing on the SEC's website at
www.sec.gov.
The Fund files its complete schedule of portfolio holdings with the SEC
for the first quarter and the third quarter of each fiscal year on Form N-Q. The
Fund's Form N-Q filings are available on the SEC's website at
http://www.sec.gov. Those forms may be reviewed and copied at the SEC's Public
Reference Room in Washington, D.C. Information on the operation of the Public
Reference Room may be obtained by calling 1-800-SEC-0330.
61 | OPPENHEIMER INTERNATIONAL BOND FUND
ITEM 2. CODE OF ETHICS.
Not applicable to semiannual reports.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable to semiannual reports.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable to semiannual reports.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS.
Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
THE FUND'S GOVERNANCE COMMITTEE PROVISIONS WITH RESPECT TO NOMINATIONS OF
DIRECTORS/TRUSTEES TO THE RESPECTIVE BOARDS
1. The Fund's Governance Committee (the "Committee") will evaluate potential
Board candidates to assess their qualifications. The Committee shall have
the authority, upon approval of the Board, to retain an executive search
firm to assist in this effort. The Committee may consider recommendations
by business and personal contacts of current Board members and by
executive search firms which the Committee may engage from time to time
and may also consider shareholder recommendations. The Committee may
consider the advice and recommendation of the Funds' investment manager
and its affiliates in making the selection.
2. The Committee shall screen candidates for Board membership. The Committee
has not established specific qualifications that it believes must be met
by a trustee nominee. In evaluating trustee nominees, the Committee
considers, among other things, an individual's background, skills, and
experience; whether the individual is an "interested person" as defined in
the Investment Company Act of 1940; and
whether the individual would be deemed an "audit committee financial
expert" within the meaning of applicable SEC rules. The Committee also
considers whether the individual's background, skills, and experience will
complement the background, skills, and experience of other nominees and
will contribute to the Board. There are no differences in the manner in
which the Committee evaluates nominees for trustees based on whether the
nominee is recommended by a shareholder.
3. The Committee may consider nominations from shareholders for the Board at
such times as the Committee meets to consider new nominees for the Board.
The Committee shall have the sole discretion to determine the candidates
to present to the Board and, in such cases where required, to
shareholders. Recommendations for trustee nominees should, at a minimum,
be accompanied by the following:
o the name, address, and business, educational, and/or other pertinent
background of the person being recommended;
o a statement concerning whether the person is an "interested person" as
defined in the Investment Company Act of 1940;
o any other information that the Funds would be required to include in a
proxy statement concerning the person if he or she was nominated; and
o the name and address of the person submitting the recommendation and,
if that person is a shareholder, the period for which that person held
Fund shares.
The recommendation also can include any additional information which the
person submitting it believes would assist the Committee in evaluating the
recommendation.
4. Shareholders should note that a person who owns securities issued by
Massachusetts Mutual Life Insurance Company (the parent company of the
Funds' investment adviser) would be deemed an "interested person" under
the Investment Company Act of 1940. In addition, certain other
relationships with Massachusetts Mutual Life Insurance Company or its
subsidiaries, with registered broker-dealers, or with the Funds' outside
legal counsel may cause a person to be deemed an "interested person."
5. Before the Committee decides to nominate an individual as a trustee,
Committee members and other directors customarily interview the individual
in person. In addition, the individual customarily is asked to complete a
detailed questionnaire which is designed to elicit information which must
be disclosed under SEC and stock exchange rules and to determine whether
the individual is subject to any statutory disqualification from serving
as a trustee of a registered investment company.
ITEM 11. CONTROLS AND PROCEDURES.
Based on their evaluation of the registrant's disclosure controls and procedures
(as defined in rule 30a-3(c) under the Investment Company Act of 1940 (17 CFR
270.30a-3(c)) as of 03/31/2008, 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 International Bond Fund
By: /s/ John V. Murphy
---------------------------
John V. Murphy
Principal Executive Officer
Date: 05/14/2008
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: 05/14/2008
By: /s/ Brian W. Wixted
---------------------------
Brian W. Wixted
Principal Financial Officer
Date: 05/14/2008