-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, WUEQCQ6SUIWR7b87VYCBeZuWppgnoxxfIdxRcGtWP57lImnSHjHd8OHtyZYRL/H2 Okl0epo0IF3H+UYnFdUkMg== 0000950123-10-004790.txt : 20100125 0000950123-10-004790.hdr.sgml : 20100125 20100125133054 ACCESSION NUMBER: 0000950123-10-004790 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20091130 FILED AS OF DATE: 20100125 DATE AS OF CHANGE: 20100125 EFFECTIVENESS DATE: 20100125 FILER: COMPANY DATA: COMPANY CONFORMED NAME: OPPENHEIMER INTERNATIONAL SMALL CO FUND CENTRAL INDEX KEY: 0001041102 IRS NUMBER: 133955887 STATE OF INCORPORATION: MA FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-08299 FILM NUMBER: 10544227 BUSINESS ADDRESS: STREET 1: 6803 SOUTH TUCSON WAY STREET 2: N/A CITY: CENTENNIAL STATE: CO ZIP: 80112-3924 BUSINESS PHONE: 303-768-3200 MAIL ADDRESS: STREET 1: 6803 SOUTH TUCSON WAY STREET 2: N/A CITY: CENTENNIAL STATE: CO ZIP: 80112-3924 0001041102 S000007074 OPPENHEIMER INTERNATIONAL SMALL CO FUND C000019305 A C000019306 B C000019307 C C000019308 N C000019309 Y N-Q 1 p16044nvq.txt FORM N-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM N-Q QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY Investment Company Act file number 811-08299 Oppenheimer International Small Company Fund (Exact name of registrant as specified in charter) 6803 South Tucson Way, Centennial, Colorado 80112-3924 (Address of principal executive offices) (Zip code) Robert G. Zack, Esq. OppenheimerFunds, Inc. Two World Financial Center, New York, New York 10281-1008 (Name and address of agent for service) Registrant's telephone number, including area code: (303) 768-3200 Date of fiscal year end: August 31 Date of reporting period: 11/30/2009 ITEM 1. SCHEDULE OF INVESTMENTS. Oppenheimer International Small Company Fund STATEMENT OF INVESTMENTS November 30, 2009 / Unaudited
Shares Value ------------ -------------- COMMON STOCKS--96.2% CONSUMER DISCRETIONARY--8.2% AUTO COMPONENTS--2.2% Westport Innovations, Inc.(1, 2) 664,286 $ 8,025,058 Westport Innovations, Inc., Legend Shares(1, 2) 1,585,714 19,156,579 -------------- 27,181,637 HOTELS, RESTAURANTS & LEISURE--2.8% Accordia Gold Co. Ltd. 20,000 20,222,119 Home Inns & Hotels Management, Inc., ADR(2) 300,000 10,539,000 Pacific Golf Group International Holdings KK 6,000 4,157,797 -------------- 34,918,916 MULTILINE RETAIL--1.8% Don Quijote Co. Ltd. 750,000 18,958,237 PT Ramayana Lestari Sentosa Tbk 50,000,000 3,014,280 -------------- 21,972,517 SPECIALTY RETAIL--1.4% Point, Inc. 300,000 16,593,518 CONSUMER STAPLES--5.5% FOOD & STAPLES RETAILING--0.8% China Nepstar Chain Drugstore Ltd., ADR 1,250,000 9,500,000 FOOD PRODUCTS--4.7% Agriterra Ltd.(1, 2) 50,000,000 4,219,652 China Vanguard Group Ltd.(2) 133,000,000 7,421,013 SLC Agricola SA 2,197,500 16,686,229 Viterra, Inc.(2) 3,000,000 30,272,882 -------------- 58,599,776 ENERGY--18.0% ENERGY EQUIPMENT & SERVICES--0.4% Polarcus Ltd.(2) 9,000,000 4,956,243 OIL, GAS & CONSUMABLE FUELS--17.6% Aquila Resources Ltd.(2) 1,000,000 9,976,911 Calvalley Petroleum, Inc., Cl. A(1, 2) 9,000,000 22,427,516 Cirrus Energy Corp.(2) 1,000,000 2,605,647 Cirrus Energy Corp., Legend Shares(2) 2,000,000 5,211,294 DNO International ASA(2) 20,000,000 17,472,204 Nido Petroleum Ltd.(1, 2) 86,000,000 10,633,621 Niko Resources Ltd. 300,000 25,110,858 Pacific Rubiales Energy Corp.(2) 2,080,928 30,304,968 Pacific Rubiales Energy Corp., Legend Shares(2) 1,644,072 23,942,947 Riversdale Mining Ltd.(2) 5,000,000 28,279,332 Uranium One, Inc.(2) 9,000,000 25,753,269 Whitehaven Coal Ltd. 4,000,000 15,263,586 -------------- 216,982,153 FINANCIALS--25.0% CAPITAL MARKETS--5.1% GP Investments Ltd., BDR(2) 2,000,000 9,968,670
1 | Oppenheimer International Small Company Fund Oppenheimer International Small Company Fund STATEMENT OF INVESTMENTS November 30, 2009 / Unaudited
Shares Value ------------ -------------- COMMON STOCKS CONTINUED CAPITAL MARKETS CONTINUED Matsui Securities Co. Ltd. 2,000,000 $ 13,431,232 RISA Partners, Inc. 12,000 8,357,242 Uranium Participation Corp.(1, 2) 5,000,000 31,173,015 -------------- 62,930,159 COMMERCIAL BANKS--8.6% Banco Macro SA, ADR 400,000 10,916,000 Canara Bank Ltd. 2,500,000 21,400,836 Indian Overseas Bank 3,500,000 8,750,941 Oriental Bank of Commerce 3,500,000 20,658,390 Punjab National Bank Ltd. 750,000 14,632,280 Seven Bank Ltd. 6,000 11,980,565 Vozrozhdenie Bank 500,000 17,500,000 -------------- 105,839,012 DIVERSIFIED FINANCIAL SERVICES--2.4% Arques Industries AG(1, 2) 2,250,000 5,371,783 Fidec Corp.(2) 1,914 191,483 Osaka Securities Exchange Co. Ltd. 4,500 22,437,529 World Energy Solutions, Inc.(1, 2) 600,000 1,847,641 -------------- 29,848,436 REAL ESTATE INVESTMENT TRUSTS--1.5% Kenedix Realty Investment Corp. 7,000 18,625,636 REAL ESTATE MANAGEMENT & DEVELOPMENT--7.4% Funai Zaisan Consultants Co. Ltd. 202 65,547 Goldcrest Co. Ltd. 700,000 19,109,266 Greentown China Holdings Ltd. 11,000,000 17,372,791 Kenedix, Inc.(2) 60,000 17,602,962 Shui On Land Ltd. 30,000,000 17,690,208 Soho China Ltd. 35,000,000 18,832,137 -------------- 90,672,911 HEALTH CARE--1.6% PHARMACEUTICALS--1.6% Tsumura & Co. 600,000 19,956,039 INDUSTRIALS--0.5% CONSTRUCTION & ENGINEERING--0.5% Baoye Group Co. Ltd. 8,000,000 6,141,896 INFORMATION TECHNOLOGY--4.9% INTERNET SOFTWARE & SERVICES--4.6% Opera Software ASA(1) 18,000,000 57,089,493 SOFTWARE--0.3% Enablence Technologies, Inc.(1, 2) 17,000,000 3,704,756 MATERIALS--28.6% CHEMICALS--3.4% Incitec Pivot Ltd. 9,000,000 23,492,883 Methanex Corp. 1,000,000 17,794,201 -------------- 41,287,084
2 | Oppenheimer International Small Company Fund Oppenheimer International Small Company Fund STATEMENT OF INVESTMENTS November 30, 2009 / Unaudited
Shares Value ------------ -------------- COMMON STOCKS CONTINUED METALS & MINING--22.4% Anvil Mining Ltd.(1, 2) 8,000,000 $ 25,241,615 Banro Corp.(2) 3,896,100 9,228,965 Centamin Egypt Ltd.(2) 10,000,000 21,887,436 Colossus Minerals, Inc.(2) 1,338,600 7,267,555 Crocodile Gold Corp.(2) 6,000,000 7,561,114 Detour Gold Corp.(2) 1,250,000 19,400,227 Dynasty Metals & Mining, Inc.(2) 1,750,000 9,501,137 Equinox Minerals Ltd.(2) 6,000,000 22,171,688 Franco-Nevada Corp. 606,200 16,323,862 Ivernia, Inc.(1, 2) 13,300,000 5,229,771 Ivernia, Inc., Legend Shares(1, 2, 3) 3,200,000 1,258,291 Lundin Mining Corp.(2) 5,000,000 21,792,685 Mirabela Nickel Ltd.(2) 6,000,000 14,440,023 Northern Iron Ltd.(2) 6,000,000 8,407,979 Oz Minerals Ltd.(2) 5,000,000 5,587,002 Red Back Mining, Inc.(2) 1,500,000 21,745,310 Romarco Minerals, Inc.(2) 8,000,000 13,189,312 Stornoway Diamond Corp.(2) 2,000,000 502,179 Thompson Creek Metals Co.(2) 2,000,000 23,801,402 Western Areas NL(2) 4,400,000 20,996,135 -------------- 275,533,688 PAPER & FOREST PRODUCTS--2.8% MagIndustries Corp.(2) 17,000,000 8,375,971 Sino-Forest Corp.(2) 1,500,000 26,250,711 -------------- 34,626,682 UTILITIES--3.9% ELECTRIC UTILITIES--0.8% EOS Russia AB(2) 1,700,000 9,680,272 ENERGY TRADERS--1.2% Magma Energy Corp.(2) 400,000 758,006 Magma Energy Corp., Legend Shares(2) 1,100,000 2,084,518 Ram Power Corp.(2) 4,000,000 12,279,704 -------------- 15,122,228 GAS UTILITIES--1.9% Xinao Gas Holdings Ltd. 9,000,000 22,835,716 -------------- Total Common Stocks (Cost $1,138,889,791) 1,184,598,768
Principal Amount ------------ CONVERTIBLE CORPORATE BONDS AND NOTES--1.1% Ivernia, Inc., 8% Cv. Sr. Nts., 4/27/13(1) (Cost $5,000,000) $ 5,000,000 13,405,085
3 | Oppenheimer International Small Company Fund Oppenheimer International Small Company Fund STATEMENT OF INVESTMENTS November 30, 2009 / Unaudited
Units Value ------------ -------------- RIGHTS, WARRANTS AND CERTIFICATES--1.4% Pacific Rubiales Energy Corp. Wts., Strike Price 7.80 CAD, Exp. 7/12/12(2) (Cost $1,808,930) 1,999,953 $ 17,092,644
Shares ------------ INVESTMENT COMPANY--0.0% Oppenheimer Institutional Money Market Fund, Cl. E, 0.31% (1, 4) (Cost $267,757) 267,757 267,757 TOTAL INVESTMENTS, AT VALUE (COST $1,145,966,478) 98.7% 1,215,364,254 Other Assets Net of Liabilities 1.3 15,909,301 ------------ -------------- Net Assets 100.0% $1,231,273,555 ============ ==============
Footnotes to Statement of Investments STRIKE PRICE IS REPORTED IN U.S. DOLLARS, EXCEPT FOR THOSE DENOTED IN THE FOLLOWING CURRENCY: CAD Canadian Dollar 4 | Oppenheimer International Small Company Fund Oppenheimer International Small Company Fund STATEMENT OF INVESTMENTS November 30, 2009 / Unaudited (1.) Is or was an affiliate, as defined in the Investment Company Act of 1940, at or during the period ended November 30, 2009, 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:
PRINCIPAL AMOUNT/ PRINCIPAL AMOUNT/ SHARES/UNITS GROSS GROSS SHARES/UNITS AUGUST 31, 2009 ADDITIONS REDUCTIONS NOVEMBER 30, 2009 ----------------- ----------- ----------- ----------------- Agriterra Ltd. 40,000,000 10,000,000 -- 50,000,000 Anvil Mining Ltd. 8,000,000 -- -- 8,000,000 Arques Industries AG 2,250,000 -- -- 2,250,000 Calvalley Petroleum, Inc., Cl. A 9,000,000 -- -- 9,000,000 Enablence Technologies, Inc. 17,000,000 -- -- 17,000,000 Endeavour Financial Corp. Wts., Strike Price 2.50 CAD, Exp. 2/4/14 2,750,000 -- 2,750,000 -- Endeavour Financial Corp., Legend Shares 5,500,000 -- 5,500,000 -- Ivernia, Inc. 13,300,000 -- -- 13,300,000 Ivernia, Inc., 8% Cv. Sr. Nts., 4/27/13 5,000,000 -- -- 5,000,000 Ivernia, Inc., Legend Shares 3,200,000 -- -- 3,200,000 Nido Petroleum Ltd. 86,000,000 -- -- 86,000,000 Opera Software ASA 18,000,000 -- -- 18,000,000 Oppenheimer Institutional Money Market Fund, Cl. E 51,064,618 160,051,854 210,848,715 267,757 Uranium Participation Corp. 5,000,000 -- -- 5,000,000 Westport Innovations, Inc. 664,286 -- -- 664,286 Westport Innovations, Inc., Legend Shares 1,835,714 -- 250,000 1,585,714 World Energy Solutions, Inc.(a) 600,000 -- -- 600,000
REALIZED VALUE INCOME GAIN ------------ -------- ---------- Agriterra Ltd. $ 4,219,652 $ -- $ -- Anvil Mining Ltd. 25,241,615 -- -- Arques Industries AG 5,371,783 -- -- Calvalley Petroleum, Inc., Cl. A 22,427,516 -- -- Enablence Technologies, Inc. 3,704,756 -- -- Endeavour Financial Corp. Wts., Strike Price 2.50 CAD, Exp. 2/4/14 -- -- 1,729,601 Endeavour Financial Corp., Legend Shares -- -- 659,355 Ivernia, Inc. 5,229,771 -- -- Ivernia, Inc., 8% Cv. Sr. Nts., 4/27/13 13,405,085 100,822 -- Ivernia, Inc., Legend Shares 1,258,291 -- -- Nido Petroleum Ltd. 10,633,621 -- -- Opera Software ASA 57,089,493 -- -- Oppenheimer Institutional Money Market Fund, Cl. E 267,757 23,603 -- Uranium Participation Corp. 31,173,015 -- -- Westport Innovations, Inc. 8,025,058 -- -- Westport Innovations, Inc., Legend Shares 19,156,579 -- 361,705 World Energy Solutions, Inc.(a) --(b) -- -- ------------ -------- ---------- $207,203,992 $124,425 $2,750,661 ============ ======== ==========
(a.) No longer an affiliate as of November 30, 2009. (b.) The security is no longer an affiliate, therefore, the value has been excluded from this table. (2.) Non-income producing security. 5 | Oppenheimer International Small Company Fund Oppenheimer International Small Company Fund STATEMENT OF INVESTMENTS November 30, 2009 / Unaudited (3.) Illiquid security. The aggregate value of illiquid securities as of November 30, 2009 was $1,258,291, which represents 0.10% of the Fund's net assets. See accompanying Notes. (4.) Rate shown is the 7-day yield as of November 30, 2009. VALUATION INPUTS Various data inputs are used in determining the value of each of the Fund's investments as of the reporting period end. These data inputs are categorized in the following hierarchy under applicable financial accounting standards: 1) Level 1-unadjusted quoted prices in active markets for identical assets or liabilities (including securities actively traded on a securities exchange) 2) Level 2-inputs other than unadjusted quoted prices that are observable for the asset (such as unadjusted quoted prices for similar assets and market corroborated inputs such as interest rates, prepayment speeds, credit risks, etc.) 3) Level 3-significant unobservable inputs (including the Manager's own judgments about assumptions that market participants would use in pricing the asset). The table below categorizes amounts as of November 30, 2009 based on valuation input level:
LEVEL 1-- LEVEL 2-- LEVEL 3-- UNADJUSTED OTHER SIGNIFICANT SIGNIFICANT QUOTED PRICES OBSERVABLE INPUTS UNOBSERVABLE INPUTS VALUE -------------- ----------------- ------------------- -------------- ASSETS TABLE INVESTMENTS, AT VALUE: Common Stocks Consumer Discretionary $ 84,073,070 $ 16,593,518 $-- $ 100,666,588 Consumer Staples 60,678,763 7,421,013 -- 68,099,776 Energy 163,462,324 58,476,072 -- 221,938,396 Financials 239,085,510 68,830,644 -- 307,916,154 Health Care 19,956,039 -- -- 19,956,039 Industrials 6,141,896 -- -- 6,141,896 Information Technology 60,794,249 -- -- 60,794,249 Materials 351,447,454 -- -- 351,447,454 Utilities 15,122,228 32,515,988 -- 47,638,216 Convertible Corporate Bonds and Notes -- 13,405,085 -- 13,405,085 Rights, Warrants and Certificates 17,092,644 -- -- 17,092,644 Investment Company 267,757 -- -- 267,757 -------------- ------------ --- -------------- Total Investments, at Value 1,018,121,934 197,242,320 -- 1,215,364,254 OTHER FINANCIAL INSTRUMENTS: Foreign currency exchange contracts -- 156,258 -- 156,258 -------------- ------------ --- -------------- Total Assets $1,018,121,934 $197,398,578 $-- $1,215,520,512 -------------- ------------ --- -------------- LIABILITIES TABLE OTHER FINANCIAL INSTRUMENTS: Foreign currency exchange contracts $ -- $ (43,826) $-- $ (43,826) -------------- ------------ --- -------------- Total Liabilities $ -- $ (43,826) $-- $ (43,826) -------------- ------------ --- --------------
Currency contracts and forwards, if any, are reported at their unrealized appreciation/depreciation at measurement date, which represents the change in the contract's value from trade date. Futures, if any, are reported at their variation margin at measurement date, which represents the amount due to/from the Fund at that date. All additional assets and liabilities included in the above table are reported at their market value at measurement date. SEE THE ACCOMPANYING NOTES FOR FURTHER DISCUSSION OF THE METHODS USED IN DETERMINING VALUE OF THE FUND'S INVESTMENTS, AND A SUMMARY OF CHANGES TO THE VALUATION TECHNIQUES, IF ANY, DURING THE REPORTING PERIOD. 6 | Oppenheimer International Small Company Fund Oppenheimer International Small Company Fund STATEMENT OF INVESTMENTS November 30, 2009 / Unaudited FOREIGN CURRENCY EXCHANGE CONTRACTS AS OF NOVEMBER 30, 2009 ARE AS FOLLOWS:
CONTRACT AMOUNT EXPIRATION UNREALIZED UNREALIZED COUNTERPARTY/CONTRACT DESCRIPTION BUY/SELL (000'S) DATES VALUE APPRECIATION DEPRECIATION - --------------------------------- -------- -------- ---------------- ----------- ------------ ------------ BROWN BROTHERS HARRIMAN: Canadian Dollar (CAD) Sell 3,860 CAD 12/1/09 $ 3,656,907 $ 40,654 $ -- Japanese Yen (JPY) Buy 945 JPY 12/1/09-12/2/09 10,931 27 -- -------- ------- 40,681 -- CHASE MANHATTAN BANK Brazilian Real (BRR) Buy 612 BRR 12/1/09 348,471 -- 3,104 CITIGROUP Japanese Yen (JPY) Buy 1,186 JPY 12/1/09 13,721 32 -- JP MORGAN CHASE: Australian Dollar (AUD) Sell 1,222 AUD 12/2/09 1,119,113 -- 7,924 Canadian Dollar (CAD) Buy 3,691 CAD 12/1/09 3,496,856 25,311 -- Canadian Dollar (CAD) Sell 11,471 CAD 12/1/09-12/14/09 10,869,037 90,188 9,849 Japanese Yen (JPY) Buy 989 JPY 12/2/09 11,437 46 -- -------- ------- 115,545 17,773 RBS GREENWICH CAPITAL Australian Dollar (AUD) Sell 5,913 AUD 12/1/09 5,416,006 -- 22,949 -------- ------- Total unrealized appreciation and depreciation $156,258 $43,826 ======== =======
Distribution of investments representing geographic holdings, as a percentage of total investments at value, is as follows:
Geographic Holdings Value Percent - ------------------- -------------- ------- Canada $ 531,792,383 43.8% Japan 191,689,172 15.8 Australia 158,964,908 13.1 Norway 74,561,697 6.1 India 65,442,447 5.4 Cayman Islands 50,295,729 4.1 Hong Kong 35,062,999 2.9 Brazil 26,654,899 2.2 China 24,974,033 2.1 Russia 17,500,000 1.4 Argentina 10,916,000 0.9 Sweden 9,680,272 0.8 Germany 5,371,783 0.4 United Arab Emirates 4,956,243 0.4 Island of Guernsey 4,219,652 0.3 Indonesia 3,014,280 0.3 United States 267,757 0.0 -------------- ----- Total $1,215,364,254 100.0% ============== =====
7 | Oppenheimer International Small Company Fund Oppenheimer International Small Company Fund STATEMENT OF INVESTMENTS November 30, 2009 / Unaudited NOTES TO STATEMENT OF INVESTMENTS 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. Each investment asset or liability of the Fund is assigned a level at measurement date based on the significance and source of the inputs to its valuation. Unadjusted quoted prices in active markets for identical securities are classified as "Level 1," inputs other than unadjusted quoted prices for an asset that are observable are classified as "Level 2" and significant unobservable inputs, including the Manager's judgment about the assumptions that a market participant would use in pricing an asset or liability, are classified as "Level 3." The inputs used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. A table summarizing the Fund's investments under these levels of classification is included following the Statement of Investments. Securities are valued using unadjusted quoted market prices, when available, as supplied primarily either by portfolio pricing services approved by the Board of Trustees or dealers. Securities traded on a registered U.S. securities exchange are valued based on the last sale price of the security reported on the principal exchange on which it is traded, prior to the time when the Fund's assets are valued. Securities whose principal exchange is NASDAQ(R) are valued based on the official closing prices 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 current day's closing "bid" and "asked" prices, and if not, at the current day's closing bid price. A foreign security traded on a foreign exchange is valued based on the last sale price on the principal exchange on which the security is traded, as identified by the portfolio pricing service used by the Manager, prior to the time when the Fund's assets are valued. In the absence of a sale, the security is valued at the most recent official closing price on the principal exchange on which it is traded. Shares of a registered investment company that are not traded on an exchange are valued at that investment company's net asset value per share. 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 are valued at the mean between the "bid" and "asked" prices. "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. In the absence of a readily available unadjusted quoted market price, including for 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 the securities' respective exchanges, the Manager, acting through its internal valuation committee, in good faith determines the fair valuation of that asset using consistently applied procedures under the supervision of the Board of Trustees (which reviews those fair valuations by the Manager). Those procedures include certain standardized methodologies to fair value securities. Such methodologies include, but are not limited to, pricing securities initially at cost and subsequently adjusting the value based on: changes in company specific fundamentals, changes in an appropriate securities index, or changes in the value of similar securities which may be adjusted for any discounts related to resale restrictions. When possible, such methodologies use observable market inputs such as unadjusted quoted prices of similar securities, observable interest rates, currency rates and yield curves. The methodologies used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. There have been no significant changes to the fair valuation methodologies during the period. 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. 8 | Oppenheimer International Small Company Fund Oppenheimer International Small Company Fund STATEMENT OF INVESTMENTS November 30, 2009 / Unaudited 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 in the annual and semiannual reports. 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. When applicable, the Fund's investment in IMMF is included in the Statement of Investments. Shares of IMMF are valued at their net asset value per share. 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. FOREIGN CURRENCY EXCHANGE CONTRACTS The Fund may enter into current and forward foreign currency exchange contracts for the purchase or sale of a foreign currency at a negotiated rate at a future date. Foreign currency exchange contracts, if any, are reported on a schedule following the Statement of Investments. These contracts will be valued daily based upon the closing prices of the 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 in the annual and semiannual reports as a receivable or payable and in the Statement of Operations in the annual and semiannual reports 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 in the annual and semiannual reports. The Fund has purchased and sold foreign currency exchange contracts of different currencies in order to acquire currencies to pay for related foreign securities purchase transactions, or to convert foreign currencies to U.S. dollars from related foreign securities sale transactions. These foreign currency exchange contracts are negotiated at the current spot exchange rate with settlement typically within two business days thereafter. Additional associated risk to the Fund includes counterparty credit risk. Counterparty 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. ILLIQUID SECURITIES As of November 30, 2009, investments in securities included issues that are illiquid. Investments may be illiquid because they do not have an active trading market, making it difficult to value them or dispose of them promptly at an acceptable price. The Fund will not invest more than 10% of its net assets (determined at the time of purchase and reviewed periodically) in illiquid securities. Securities that are illiquid are marked with an applicable footnote on the Statement of Investments. FEDERAL TAX. 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 November 30, 2009 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. 9 | Oppenheimer International Small Company Fund Oppenheimer International Small Company Fund STATEMENT OF INVESTMENTS November 30, 2009 / Unaudited Federal tax cost of securities $ 1,193,525,186 =============== Gross unrealized appreciation $ 285,584,464 Gross unrealized depreciation (221,052,261) --------------- Net unrealized appreciation $ 64,532,203 ===============
10 | Oppenheimer International Small Company Fund ITEM 2. CONTROLS AND PROCEDURES. (a) 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 11/30/2009, 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 the 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. (b) There have been no significant changes in the registrant's internal controls over financial reporting that occurred during the registrant's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 3. EXHIBITS. Exhibits 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 Small Company Fund By: /s/ William F. Glavin ---------------------------------------- William F. Glavin Principal Executive Officer Date: 01/06/2010 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/ William F. Glavin ---------------------------------------- William F. Glavin Principal Executive Officer Date: 01/06/2010 By: /s/ Brian W. Wixted ---------------------------------------- Brian W. Wixted Principal Financial Officer Date: 01/06/2010 EX-99.CERT 2 p16044exv99wcert.txt EX-99.CERT Exhibit 99.CERT Section 302 Certifications CERTIFICATIONS I, William F. Glavin, certify that: 1. I have reviewed this report on Form N-Q of Oppenheimer International Small Company Fund; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of Trustees (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. /s/ William F. Glavin - ------------------------------------- William F. Glavin Principal Executive Officer Date: 01/06/2010 Exhibit 99.CERT Section 302 Certifications CERTIFICATIONS I, Brian W. Wixted, certify that: 1. I have reviewed this report on Form N-Q of Oppenheimer International Small Company Fund; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of Trustees (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. /s/ Brian W. Wixted - ------------------------------------- Brian W. Wixted Principal Financial Officer Date: 01/06/2010 -----END PRIVACY-ENHANCED MESSAGE-----