-----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, VZOUg5aecsUTg0KprRPChl3AQbGzR5sLg6VcDkci22EJTMlt4MpaWPrguTTHTWDV QqRAMmfT6PCjVBpNKB3tnw== 0000950123-09-046413.txt : 20090928 0000950123-09-046413.hdr.sgml : 20090927 20090928135134 ACCESSION NUMBER: 0000950123-09-046413 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20090731 FILED AS OF DATE: 20090928 DATE AS OF CHANGE: 20090928 EFFECTIVENESS DATE: 20090928 FILER: COMPANY DATA: COMPANY CONFORMED NAME: OPPENHEIMER MASTER INTERNATIONAL VALUE FUND, LLC CENTRAL INDEX KEY: 0001425771 IRS NUMBER: 000000000 STATE OF INCORPORATION: DE FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-22186 FILM NUMBER: 091089802 BUSINESS ADDRESS: STREET 1: 6803 SOUTH TUCSON WAY CITY: CENTENNIAL STATE: CO ZIP: 80112-3924 BUSINESS PHONE: 303-768-3200 MAIL ADDRESS: STREET 1: 6803 SOUTH TUCSON WAY CITY: CENTENNIAL STATE: CO ZIP: 80112-3924 0001425771 S000022179 Oppenheimer Master International Value Fund, LLC C000063716 A N-Q 1 p15474nvq.txt 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 811-22186 Oppenheimer Master International Value Fund, LLC (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: April 30 Date of reporting period: 07/31/2009 ITEM 1. SCHEDULE OF INVESTMENTS. Oppenheimer Master International Value Fund, LLC STATEMENT OF INVESTMENTS July 31, 2009 / Unaudited
Shares Value ---------- ------------ COMMON STOCKS--92.5% CONSUMER DISCRETIONARY--24.0% AUTOMOBILES--5.8% Bayerische Motoren Werke (BMW) AG, Preference 102,994 $ 2,972,632 Hyundai Motor Co. Ltd., Preference(1) 122,890 3,597,049 Toyota Motor Corp. 56,697 2,390,711 ------------ 8,960,392 HOTELS, RESTAURANTS & LEISURE--2.3% Emperor Entertainment Hotel Ltd. 10,206,307 1,066,717 Enterprise Inns plc 1,023,955 2,423,927 ------------ 3,490,644 HOUSEHOLD DURABLES--4.7% Barratt Developments plc(1) 605,575 2,007,995 First Juken Co. Ltd. 500,800 2,741,500 Haseko Corp.(1) 2,586,451 2,449,710 ------------ 7,199,205 LEISURE EQUIPMENT & PRODUCTS--0.6% Sega Sammy Holdings, Inc. 73,677 971,719 MEDIA--4.1% British Sky Broadcasting Group plc 122,668 1,118,815 Societe Television Francaise 1 199,457 3,090,175 Vivendi SA 55,294 1,415,622 Yell Group plc(1) 1,373,500 699,062 ------------ 6,323,674 SPECIALTY RETAIL--2.7% Aoyama Trading Co. 105,958 1,791,628 Dickson Concepts International Ltd. 3,307,199 1,737,239 Otsuka Kagu Ltd. 66,660 584,706 ------------ 4,113,573 TEXTILES, APPAREL & LUXURY GOODS--3.8% Aksa Akrilik Kimya Sanayii AS(1) 3,107,104 3,041,728 Asics Corp. 147,240 1,392,653 Christian Dior SA 16,940 1,470,398 ------------ 5,904,779 CONSUMER STAPLES--6.1% FOOD & STAPLES RETAILING--1.5% Tesco plc 373,098 2,290,417 FOOD PRODUCTS--3.1% Chaoda Modern Agriculture (Holdings) Ltd. 1,764,000 1,188,569 Nestle SA 88,060 3,624,085 ------------ 4,812,654 PERSONAL PRODUCTS--1.5% Coreana Cosmetics Co. Ltd.(1) 1,415,605 1,394,628
1 | Oppenheimer Master International Value Fund, LLC Oppenheimer Master International Value Fund, LLC STATEMENT OF INVESTMENTS July 31, 2009 / Unaudited Pacific Corp. 9,343 977,508 ------------ 2,372,136
Shares Value ---------- ----------- ENERGY--7.4% ENERGY EQUIPMENT & SERVICES--2.9% Petroleum Geo-Services ASA(1) 293,520 $ 2,059,613 Seabird Exploration Ltd.(1) 1,546,522 428,927 Shinko Plantech Co. Ltd. 240,400 1,982,596 ------------ 4,471,136 OIL, GAS & CONSUMABLE FUELS--4.5% Eni SpA 114,809 2,683,706 Esso (Thailand) Public Co. Ltd. 6,365,200 1,140,059 Tatneft, Preference 768,756 1,029,187 Total SA 37,576 2,091,921 ------------ 6,944,873 FINANCIALS--15.0% CAPITAL MARKETS--0.4% Ichiyoshi Securities Co. Ltd. 83,612 644,679 COMMERCIAL BANKS--2.4% Anglo Irish Bank Corp. plc(1, 2) 51,641 736 Bank of Ireland(1) 242,432 691,937 Credit Agricole SA 115,871 1,653,979 National Bank of Greece SA(1) 46,319 1,352,052 ------------ 3,698,704 CONSUMER FINANCE--1.5% International Personal Finance plc 1,043,730 2,336,293 DIVERSIFIED FINANCIAL SERVICES--0.4% RHJ International Ltd.(1) 95,128 616,913 INSURANCE--5.5% Aegon NV 282,446 2,076,448 Fondiaria-Sai SpA 313,467 3,154,284 Swiss Reinsurance Co. 83,899 3,251,158 ------------ 8,481,890 REAL ESTATE INVESTMENT TRUSTS--2.8% DA Office Investment Corp. 200 621,189 Japan Hotel and Resort, Inc. 278 452,439 Japan Office Investment Corp. 448 488,598 Japan Rental Housing Investments, Inc. 406 467,678 Japan Single-Residence REIT 426 490,716 LCP Investment Corp. 422 428,132 Nippon Commercial Investment Corp. 149 265,641 Prospect Residential Investment Corp. 485 612,497 TGR Investment, Inc. 428 532,823 ------------ 4,359,713
2 | Oppenheimer Master International Value Fund, LLC Oppenheimer Master International Value Fund, LLC STATEMENT OF INVESTMENTS July 31, 2009 / Unaudited REAL ESTATE MANAGEMENT & DEVELOPMENT--1.5% Cosmos Initia Co. Ltd.(1) 743,264 369,177 Eurocastle Investment Ltd. 99,147 46,633 Shanghai Forte Land Co. Ltd. 5,418,719 1,837,674 ------------ 2,253,484 THRIFTS & MORTGAGE FINANCE--0.5% Paragon Group Cos. plc 470,899 818,079
Shares Value ---------- ----------- HEALTH CARE--4.4% HEALTH CARE PROVIDERS & SERVICES--1.0% Mediceo Paltac Holdings Co. Ltd. 120,332 $ 1,504,388 PHARMACEUTICALS--3.4% GlaxoSmithKline plc 54,477 1,045,605 Sanofi-Aventis SA 47,086 3,084,438 Takeda Pharmaceutical Co. Ltd.(3) 28,494 1,153,311 ------------ 5,283,354 INDUSTRIALS--13.6% AEROSPACE & DEFENSE--1.3% Safran SA 126,908 1,962,560 AIRLINES--5.8% Deutsche Lufthansa AG 140,069 1,883,555 Jazz Air Income Fund 1,206,308 4,109,678 Turk Hava Yollari Anonim Ortakligi 1,892,510 2,984,889 ------------ 8,978,122 COMMERCIAL SERVICES & SUPPLIES--1.5% Sperian Protection 36,740 2,238,615 CONSTRUCTION & ENGINEERING--1.3% Joongang Construction Co. Ltd.(1) 115,495 589,606 Vinci SA 26,271 1,337,121 ------------ 1,926,727 MARINE--3.5% Orient Overseas International Ltd. 139,000 774,673 Shun Tak Holdings Ltd. 5,718,000 4,670,944 ------------ 5,445,617 PROFESSIONAL SERVICES--0.2% Assystem 40,430 363,611 TRANSPORTATION INFRASTRUCTURE--0.0% Master Marine AS(1, 2) 640 209 INFORMATION TECHNOLOGY--9.2% COMMUNICATIONS EQUIPMENT--0.9% Nokia Oyj 108,281 1,441,463 COMPUTERS & PERIPHERALS--4.6% Fujitsu Ltd. 183,303 1,209,793 Gemalto NV(1) 42,703 1,594,645 Japan Digital Laboratory Co. Ltd. 338,879 4,208,009 ------------ 7,012,447
3 | Oppenheimer Master International Value Fund, LLC Oppenheimer Master International Value Fund, LLC STATEMENT OF INVESTMENTS July 31, 2009 / Unaudited ELECTRONIC EQUIPMENT & INSTRUMENTS--1.1% A&D Co. Ltd. 298,684 1,764,485 IT SERVICES--0.7% Alten SA(1) 37,190 721,686 Altran Technologies SA(1) 124,780 367,968 ------------ 1,089,654 OFFICE ELECTRONICS--1.2% Canon, Inc. 48,554 1,818,772 SOFTWARE--0.7% Nintendo Co. Ltd. 4,000 1,081,744
Shares Value ---------- ------------ MATERIALS--3.4% CHEMICALS--1.5% Arkema 28,129 $ 806,653 Ohara, Inc. 110,400 1,557,559 ------------ 2,364,212 METALS & MINING--1.9% ArcelorMittal 34,542 1,250,698 Hindalco Industries Ltd. 790,300 1,663,716 ------------ 2,914,414 TELECOMMUNICATION SERVICES--7.7% DIVERSIFIED TELECOMMUNICATION SERVICES--4.8% Cable & Wireless plc 278,985 672,017 France Telecom SA 126,448 3,155,748 Telecom Italia SpA 3,211,375 3,618,238 ------------ 7,446,003 WIRELESS TELECOMMUNICATION SERVICES--2.9% KDDI Corp. 550 2,907,863 Vodafone Group plc 773,003 1,584,382 ------------ 4,492,245 UTILITIES--1.7% ELECTRIC UTILITIES--1.7% Okinawa Electric Power Co. (The) 24,333 1,283,188 RusHydro(1) 38,600,248 1,339,429 ------------ 2,622,617 ------------ Total Common Stocks (Cost $124,772,693) 142,816,216
Principal Amount ---------- NON-CONVERTIBLE CORPORATE BONDS AND NOTES--0.1% Cattles plc, 7.875% Nts., 1/17/14(2, 4) (Cost $233,853) 771,000 GBP 122,481
4 | Oppenheimer Master International Value Fund, LLC Oppenheimer Master International Value Fund, LLC STATEMENT OF INVESTMENTS July 31, 2009 / Unaudited
Shares ---------- INVESTMENT COMPANY--6.2% Oppenheimer Institutional Money Market Fund, Cl. E, 0.42%(5, 6) (Cost $9,538,605) 9,538,605 9,538,605 TOTAL INVESTMENTS, AT VALUE (COST $134,545,151) 98.8% 152,477,302 Other Assets Net of Liabilities 1.2 1,794,180 --------- ------------ Net Assets 100.0% $154,271,482
Footnotes to Statement of Investments Principal amount is reported in U.S. Dollars, except for those denoted in the following currency: GBP British Pound Sterling (1.) Non-income producing security. (2.) Illiquid security. The aggregate value of illiquid securities as of July 31, 2009 was $123,426, which represents 0.08% of the Fund's net assets. See accompanying Notes. (3.) A sufficient amount of securities has been designated to cover outstanding foreign currency exchange contracts. See accompanying Notes. (4.) Represents the current interest rate for a variable or increasing rate security. (5.) Is or was an affiliate, as defined in the Investment Company Act of 1940, at or during the period ended July 31, 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:
SHARES GROSS GROSS SHARES APRIL 30, 2009 ADDITIONS REDUCTIONS JULY 31, 2009 -------------- ---------- ---------- ------------- Oppenheimer Institutional Money Market Fund, Cl. E 6,634,414 31,036,250 28,132,059 9,538,605
VALUE INCOME ---------- ------ Oppenheimer Institutional Money Market Fund, Cl. E $9,538,605 $7,761
(6.) Rate shown is the 7-day yield as of July 31, 2009. 5 | Oppenheimer Master International Value Fund, LLC Oppenheimer Master International Value Fund, LLC STATEMENT OF INVESTMENTS July 31, 2009 / Unaudited 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 that are included in the Fund's Statement of Assets and Liabilities as of July 31, 2009 based on valuation input level:
LEVEL 2-- LEVEL 1-- OTHER LEVEL 3-- UNADJUSTED SIGNIFICANT SIGNIFICANT QUOTED OBSERVABLE UNOBSERVABLE PRICES INPUTS INPUTS VALUE ------------ ----------- ------------ ------------ ASSETS TABLE INVESTMENTS, AT VALUE: Common Stocks Consumer Discretionary $ 28,238,426 $ 8,725,560 $ -- $ 36,963,986 Consumer Staples 8,286,638 1,188,569 -- 9,475,207 Energy 2,488,540 8,927,469 -- 11,416,009 Financials 17,475,508 5,733,511 736 23,209,755 Health Care 6,787,742 -- -- 6,787,742 Industrials 13,586,289 7,329,172 -- 20,915,461 Information Technology 11,180,000 3,028,565 -- 14,208,565 Materials 2,364,212 2,914,414 -- 5,278,626 Telecommunication Services 9,030,385 2,907,863 -- 11,938,248 Utilities 2,622,617 -- -- 2,622,617 Non-Convertible Corporate Bonds and Notes -- 122,481 -- 122,481 Investment Company 9,538,605 -- -- 9,538,605 ------------ ----------- ---- ------------ Total Assets $111,598,962 $40,877,604 $736 $152,477,302 ------------ ----------- ---- ------------ Liabilities Table Other Financial Instruments: Foreign Currency Exchange Contracts $ -- $ 464,358 $ -- $ 464,358 ------------ ----------- ---- ------------ Total Liabilities $ -- $ 464,358 -- $ 464,358 ------------ ----------- ---- ------------
6 | Oppenheimer Master International Value Fund, LLC Oppenheimer Master International Value Fund, LLC STATEMENT OF INVESTMENTS July 31, 2009 / Unaudited 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. FOREIGN CURRENCY EXCHANGE CONTRACTS AS OF JULY 31, 2009 ARE AS FOLLOWS:
CONTRACT AMOUNT EXPIRATION UNREALIZED COUNTERPARTY/CONTRACT DESCRIPTION BUY/SELL (000S) DATES VALUE DEPRECIATION - --------------------------------- -------- --------- ------------- ----------- ------------ BROWN BROTHERS HARRIMAN New Turkish Lira (TRY) Sell 13 TRY 8/3/09 $ 9,005 $ 18 DEUTSCHE BANK: Euro (EUR) Sell 4,916 EUR 9/24/09 7,007,241 205,611 Japanese Yen (JPY) Sell 1,745,100 JPY 9/24/09 18,452,290 253,501 -------- 459,112 JP MORGAN CHASE Japanese Yen (JPY) Sell 83,939 JPY 8/3/09-8/4/09 887,101 5,228 -------- Total unrealized depreciation $464,358 ========
Distribution of investments representing geographic holdings, as a percentage of total investments at value, is as follows:
Geographic Holdings Value Percent - ------------------- ------------ ------- Japan $ 38,167,904 25.0% France 25,355,140 16.6 United Kingdom 15,119,073 9.9 United States 9,538,605 6.3 Italy 9,456,228 6.2 Switzerland 6,875,243 4.5 Korea, Republic of South 6,558,791 4.3 Turkey 6,026,617 4.0 Hong Kong 5,445,617 3.6 Germany 4,856,187 3.2
7 | Oppenheimer Master International Value Fund, LLC Oppenheimer Master International Value Fund, LLC STATEMENT OF INVESTMENTS July 31, 2009 / Unaudited Canada 4,109,678 2.7 Bermuda 2,803,956 1.8 Norway 2,488,749 1.6 Russia 2,368,616 1.6 The Netherlands 2,123,081 1.4 China 1,837,674 1.2 India 1,663,716 1.1 Finland 1,441,463 0.9 Greece 1,352,052 0.9 Luxembourg 1,250,698 0.8 Cayman Islands 1,188,569 0.8 Thailand 1,140,059 0.7 Ireland 692,673 0.5 Belgium 616,913 0.4 ------------ ----- Total $152,477,302 100.0%
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 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 Directors 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 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 8 | Oppenheimer Master International Value Fund, LLC Oppenheimer Master International Value Fund, LLC STATEMENT OF INVESTMENTS July 31, 2009 / Unaudited 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 Directors (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 Directors. 9 | Oppenheimer Master International Value Fund, LLC Oppenheimer Master International Value Fund, LLC STATEMENT OF INVESTMENTS July 31, 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. 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. RISK EXPOSURES AND THE USE OF DERIVATIVE INSTRUMENTS The Fund's investment objectives not only permit the Fund to purchase investment securities, they also allow the Fund to enter into various types of derivatives contracts, including, but not limited to, futures contracts, forward foreign currency exchange contracts, credit default swaps, interest rate swaps, total return swaps, and purchased and written options. In doing so, the Fund will employ strategies in differing combinations to permit it to increase, decrease, or change the level or types of exposure to market risk factors. Central to those strategies are features inherent to derivatives that make them more attractive for this purpose than equity and debt securities: they require little or no initial cash investment, they can focus exposure on only certain selected risk factors, and they may not require the ultimate receipt or delivery of the underlying security (or securities) to the contract. This may allow the Fund to pursue its objectives more quickly and efficiently than if it were to make direct purchases or sales of securities capable of effecting a similar response to market factors. 10 | Oppenheimer Master International Value Fund, LLC Oppenheimer Master International Value Fund, LLC STATEMENT OF INVESTMENTS July 31, 2009 / Unaudited MARKET RISK FACTORS. In pursuit of its investment objectives, the Fund may seek to use derivatives to increase or decrease its exposure to the following market risk factors: INTEREST RATE RISK. Interest rate risk refers to the fluctuations in value of fixed-income securities resulting from the inverse relationship between price and yield. For example, an increase in general interest rates will tend to reduce the market value of already issued fixed-income investments, and a decline in general interest rates will tend to increase their value. In addition, debt securities with longer maturities, which tend to have higher yields, are subject to potentially greater fluctuations in value from changes in interest rates than obligations with shorter maturities. CREDIT RISK. Credit risk relates to the ability of the issuer to meet interest and principal payments, or both, as they come due. In general, lower-grade, higher-yield bonds are subject to credit risk to a greater extent than lower-yield, higher-quality bonds. FOREIGN EXCHANGE RATE RISK. Foreign exchange rate risk relates to the change in the U.S. dollar value of a security held that is denominated in a foreign currency. The U.S. dollar value of a foreign currency denominated security will decrease as the dollar appreciates against the currency, while the U.S. dollar value will increase as the dollar depreciates against the currency. EQUITY RISK. Equity risk relates to the change in value of equity securities as they relate to increases or decreases in the general market. RISKS OF INVESTING IN DERIVATIVES. The Fund's use of derivatives can result in losses due to unanticipated changes in the market risk factors and the overall market. In instances where the Fund is using derivatives to decrease, or hedge, exposures to market risk factors for securities held by the Fund, there are also risks that those derivatives may not perform as expected resulting in losses for the combined or hedged positions. Derivatives may have little or no initial cash investment relative to their market value exposure and therefore can produce significant gains or losses in excess of their cost. This use of embedded leverage allows the Fund to increase its market value exposure relative to its net assets and can substantially increase the volatility of the Fund's performance. Additional associated risks from investing in derivatives also exist and potentially could have significant effects on the valuation of the derivative and the Fund. Typically, the associated risks are not the risks that the Fund is attempting to increase or decrease exposure to, per its investment objectives, but are the additional risks from investing in derivatives. Examples of these associated risks are liquidity risk, which is the risk that the Fund will not be able to sell the derivative in the open market in a timely manner, and counterparty credit risk, which is the risk that the counterparty will not 11 | Oppenheimer Master International Value Fund, LLC Oppenheimer Master International Value Fund, LLC STATEMENT OF INVESTMENTS July 31, 2009 / Unaudited fulfill its obligation to the Fund. Associated risks can be different for each type of derivative and are discussed by each derivative type in the notes that follow. COUNTERPARTY CREDIT RISK. Certain derivative positions are subject to counterparty credit risk, which is the risk that the counterparty will not fulfill its obligation to the Fund. The Fund's derivative counterparties are financial institutions who are subject to market conditions that may weaken their financial position. The Fund intends to enter into financial transactions with counterparties that the Manager believes to be creditworthy at the time of the transaction. To reduce this risk the Fund has entered into master netting arrangements, established within the Fund's International Swap and Derivatives Association, Inc. ("ISDA") master agreements, which allow the Fund to net unrealized appreciation and depreciation for positions in swaps, over-the-counter options, and forward currency exchange contracts for each individual counterparty. CREDIT RELATED CONTINGENT FEATURES. The Fund has several credit related contingent features that if triggered would allow its derivatives counterparties to close out and demand payment or additional collateral to cover their exposure from the Fund. Credit related contingent features are established between the Fund and its derivatives counterparties to reduce the risk that the Fund will not fulfill its payment obligations to its counterparties. These triggering features include, but are not limited to, a percentage decrease in the Fund's net assets and or a percentage decrease in the Fund's Net Asset Value or NAV. The contingent features are established within the Fund's ISDA master agreements which govern positions in swaps, over-the-counter options, and forward currency exchange contracts for each individual counterparty. As of July 31, 2009, the total value of derivative positions with credit related contingent features in a net liability position was $459,112. If a contingent feature would have been triggered as of July 31, 2009, the Fund could have been required to pay this amount in cash to its counterparties. The Fund did not hold or post collateral for its derivative transactions. 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 in the annual and semiannual reports as a receivable or payable and in the Statement of 12 | Oppenheimer Master International Value Fund, LLC Oppenheimer Master International Value Fund, LLC STATEMENT OF INVESTMENTS July 31, 2009 / Unaudited 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 entered into forward foreign currency exchange contracts with the obligation to buy specified foreign currencies in the future at a currently negotiated forward rate in order to decrease exposure to foreign exchange rate risk associated with foreign currency denominated securities held by the portfolio. The Fund has entered into forward foreign currency exchange contracts with the obligation to sell specified foreign currencies in the future at a currently negotiated forward rate in order to decrease exposure to foreign exchange rate risk associated with foreign currency denominated securities held by the portfolio. 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 July 31, 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 15% 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. 13 | Oppenheimer Master International Value Fund, LLC 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 07/31/2009, 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 Master International Value Fund, LLC By: /s/ John V. Murphy --------------------------------- John V. Murphy Principal Executive Officer Date: 09/11/2009 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: 09/11/2009 By: /s/ Brian W. Wixted --------------------------------- Brian W. Wixted Principal Financial Officer Date: 09/11/2009 EX-99.CERT 2 p15474exv99wcert.txt EX-99.CERT Exhibit 99.CERT Section 302 Certifications CERTIFICATIONS I, John V. Murphy, certify that: 1. I have reviewed this report on Form N-Q of Oppenheimer Master International Value Fund, LLC; 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 Directors (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/ John V. Murphy - ------------------------------------- John V. Murphy Principal Executive Officer Date: 09/11/2009 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 Master International Value Fund, LLC; 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 Directors (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: 09/11/2009 -----END PRIVACY-ENHANCED MESSAGE-----