-----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, MqPwN5wS2K5506pA6FTLQN5Ivh1w8FCtMYaBzGy+IEcSKPn4Q7EfxXP9gvMZmCk8 qLwV4e0jFVCqTQV9BmaRuA== 0000935069-07-001715.txt : 20070730 0000935069-07-001715.hdr.sgml : 20070730 20070730135603 ACCESSION NUMBER: 0000935069-07-001715 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20070531 FILED AS OF DATE: 20070730 DATE AS OF CHANGE: 20070730 EFFECTIVENESS DATE: 20070730 FILER: COMPANY DATA: COMPANY CONFORMED NAME: OPPENHEIMER INTERNATIONAL GROWTH FUND CENTRAL INDEX KEY: 0001005728 IRS NUMBER: 133867060 STATE OF INCORPORATION: MA FISCAL YEAR END: 1130 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-07489 FILM NUMBER: 071009029 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 0001005728 S000007073 OPPENHEIMER INTERNATIONAL GROWTH FUND C000019299 A C000019300 B C000019301 C C000019302 N C000019303 Y N-CSRS 1 rq825_40296ncsrs.txt RQ825_40296NCSRS.TXT UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM N-CSRS CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-07489 --------- OPPENHEIMER INTERNATIONAL GROWTH FUND ------------------------------------- (Exact name of registrant as specified in charter) 6803 SOUTH TUCSON WAY, CENTENNIAL, COLORADO 80112-3924 ------------------------------------------------------ (Address of principal executive offices) (Zip code) Robert G. Zack, Esq. OppenheimerFunds, Inc. TWO WORLD FINANCIAL CENTER, NEW YORK, NEW YORK 10281-1008 --------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: (303) 768-3200 -------------- Date of fiscal year end: NOVEMBER 30 ----------- Date of reporting period: 05/31/2007 ---------- ITEM 1. REPORTS TO STOCKHOLDERS. TOP HOLDINGS AND ALLOCATIONS - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- TOP TEN GEOGRAPHICAL HOLDINGS - -------------------------------------------------------------------------------- Japan 15.0% - -------------------------------------------------------------------------------- United Kingdom 14.2 - -------------------------------------------------------------------------------- United States 11.2 - -------------------------------------------------------------------------------- France 10.5 - -------------------------------------------------------------------------------- Switzerland 9.1 - -------------------------------------------------------------------------------- Germany 6.9 - -------------------------------------------------------------------------------- Australia 4.3 - -------------------------------------------------------------------------------- The Netherlands 3.8 - -------------------------------------------------------------------------------- Denmark 3.7 - -------------------------------------------------------------------------------- Italy 3.2 Portfolio holdings and allocations are subject to change. Percentages are as of May 31, 2007, and are based on the total market value of investments. TOP TEN COMMON STOCK HOLDINGS - -------------------------------------------------------------------------------- William Demant Holding AS 2.5% - -------------------------------------------------------------------------------- Telefonaktiebolaget LM Ericsson, B Shares 2.0 - -------------------------------------------------------------------------------- Capita Group plc 2.0 - -------------------------------------------------------------------------------- NicOx SA 2.0 - -------------------------------------------------------------------------------- ABB Ltd. 1.9 - -------------------------------------------------------------------------------- Aalberts Industries NV 1.8 - -------------------------------------------------------------------------------- Anglo Irish Bank Corp. 1.7 - -------------------------------------------------------------------------------- Continental AG 1.7 - -------------------------------------------------------------------------------- Tandberg ASA 1.6 - -------------------------------------------------------------------------------- Yahoo! Japan Corp. 1.4 Portfolio holdings and allocations are subject to change. Percentages are as of May 31, 2007, and are based on net assets. For up-to-date Top 10 Fund holdings, please visit www.oppenheimerfunds.com. - -------------------------------------------------------------------------------- 10 | OPPENHEIMER INTERNATIONAL GROWTH FUND - -------------------------------------------------------------------------------- REGIONAL ALLOCATION [THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.] Europe 60.2% Asia 23.6 United States/Canada 11.3 Latin America 3.2 Middle East/Africa 1.7 Portfolio holdings and allocations are subject to change. Percentages are as of May 31, 2007, and are based on the total market value of investments. - -------------------------------------------------------------------------------- 11 | OPPENHEIMER INTERNATIONAL GROWTH 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 3/25/96. Unless otherwise noted, Class A returns include the maximum initial sales charge of 5.75%. CLASS B shares of the Fund were first publicly offered on 3/25/96. Unless otherwise noted, Class B returns include the applicable contingent deferred sales charge of 5% (1-year), and 2% (5-year). Because Class B shares convert to Class A shares 72 months after purchase, the 10-year return for Class B uses Class A performance for the period after conversion. Class B shares are subject to an annual 0.75% asset-based sales charge. CLASS C shares of the Fund were first publicly offered on 3/25/96. Unless otherwise noted, Class C returns include the contingent deferred sales charge of 1% for the 1-year period. Class C shares are subject to an annual 0.75% asset-based sales charge. CLASS N shares of the Fund were first publicly offered on 3/1/01. Class N shares are offered only through retirement plans. Unless otherwise noted, Class N returns include the contingent deferred sales charge of 1% for the 1-year period. Class N shares are subject to an annual 0.25% asset-based sales charge. CLASS Y shares of the Fund were first publicly offered on 9/7/05. Class Y shares are offered only to certain institutional investors under special agreement with the distributor. An explanation of the calculation of performance is in the Fund's Statement of Additional Information. 12 | OPPENHEIMER INTERNATIONAL GROWTH FUND FUND EXPENSES - -------------------------------------------------------------------------------- FUND EXPENSES. As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments, contingent deferred sales charges on redemptions; and redemption fees, if any; and (2) ongoing costs, including management fees; distribution and service fees; and other Fund expenses. These examples are 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 May 31, 2007. ACTUAL EXPENSES. The "actual" lines of the table provide information about actual account values and actual expenses. You may use the information on this line for the class of shares you hold, together with the amount you invested, to estimate the expense that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600.00 account value divided by $1,000.00 = 8.60), then multiply the result by the number in the "actual" line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES. The "hypothetical" lines of the table provide information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio for each class of shares, and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example for the class of shares you hold with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front-end or contingent deferred sales charges (loads), redemption fees, or a $12.00 fee imposed annually on accounts valued at less than $500.00 (subject to exceptions described in the Statement of Additional Information). Therefore, the "hypothetical" lines of the table are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. 13 | OPPENHEIMER INTERNATIONAL GROWTH FUND FUND EXPENSES Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- BEGINNING ENDING EXPENSES ACCOUNT ACCOUNT PAID DURING VALUE VALUE 6 MONTHS ENDED (12/1/06) (5/31/07) MAY 31, 2007 - -------------------------------------------------------------------------------- Class A Actual $1,000.00 $1,172.10 $ 6.63 - -------------------------------------------------------------------------------- Class A Hypothetical 1,000.00 1,018.85 6.16 - -------------------------------------------------------------------------------- Class B Actual 1,000.00 1,167.80 10.86 - -------------------------------------------------------------------------------- Class B Hypothetical 1,000.00 1,014.96 10.10 - -------------------------------------------------------------------------------- Class C Actual 1,000.00 1,167.70 10.64 - -------------------------------------------------------------------------------- Class C Hypothetical 1,000.00 1,015.16 9.90 - -------------------------------------------------------------------------------- Class N Actual 1,000.00 1,170.00 8.52 - -------------------------------------------------------------------------------- Class N Hypothetical 1,000.00 1,017.10 7.93 - -------------------------------------------------------------------------------- Class Y Actual 1,000.00 1,174.80 4.13 - -------------------------------------------------------------------------------- Class Y Hypothetical 1,000.00 1,021.14 3.84 Hypothetical assumes 5% annual return before expenses. Expenses are equal to the Fund's annualized expense ratio for that class, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Those annualized expense ratios, excluding indirect expenses from affiliated fund, based on the 6-month period ended May 31, 2007 are as follows: CLASS EXPENSE RATIOS - ---------------------------------- Class A 1.22% - ---------------------------------- Class B 2.00 - ---------------------------------- Class C 1.96 - ---------------------------------- Class N 1.57 - ---------------------------------- Class Y 0.76 The expense ratios reflect reduction to custodian fees and voluntary waivers or reimbursements of expenses by the Fund's Manager that can be terminated at any time, without advance notice. The "Financial Highlights" tables in the Fund's financial statements, included in this report, also show the gross expense ratios, without such waivers or reimbursements. - -------------------------------------------------------------------------------- 14 | OPPENHEIMER INTERNATIONAL GROWTH FUND STATEMENT OF INVESTMENTS May 31, 2007 / Unaudited - -------------------------------------------------------------------------------- VALUE SHARES SEE NOTE 1 - -------------------------------------------------------------------------------- COMMON STOCKS--95.8% - -------------------------------------------------------------------------------- CONSUMER DISCRETIONARY--19.7% - -------------------------------------------------------------------------------- AUTO COMPONENTS--1.7% Continental AG 283,518 $ 40,018,082 - -------------------------------------------------------------------------------- AUTOMOBILES--3.2% Bayerische Motoren Werke AG 1 295,061 19,704,083 - -------------------------------------------------------------------------------- Ducati Motor Holding SpA 2 5,697,700 12,113,142 - -------------------------------------------------------------------------------- Honda Motor Co. 333,846 11,802,309 - -------------------------------------------------------------------------------- Porsche AG, Preference 7,587 13,414,225 - -------------------------------------------------------------------------------- Toyota Motor Corp. 321,565 19,374,893 ---------------- 76,408,652 - -------------------------------------------------------------------------------- HOTELS, RESTAURANTS & LEISURE--1.1% Carnival Corp. 322,960 16,290,102 - -------------------------------------------------------------------------------- William Hill plc 751,622 9,406,065 ---------------- 25,696,167 - -------------------------------------------------------------------------------- HOUSEHOLD DURABLES--2.9% Daito Trust Construction Co. Ltd. 295,287 15,649,968 - -------------------------------------------------------------------------------- Groupe SEB SA 1 112,181 21,056,862 - -------------------------------------------------------------------------------- Koninklijke (Royal) Philips Electronics NV 212,310 9,027,296 - -------------------------------------------------------------------------------- Sony Corp. 409,645 23,595,821 ---------------- 69,329,947 - -------------------------------------------------------------------------------- LEISURE EQUIPMENT & PRODUCTS--0.2% Enix Corp. 190,620 5,000,203 - -------------------------------------------------------------------------------- MEDIA--4.1% British Sky Broadcasting Group plc 722,509 9,442,318 - -------------------------------------------------------------------------------- Dish TV India Ltd. 2 949,095 3,143,782 - -------------------------------------------------------------------------------- Gestevision Telecinco SA 122,918 3,622,094 - -------------------------------------------------------------------------------- Grupo Televisa SA, Sponsored GDR 544,340 15,666,105 - -------------------------------------------------------------------------------- Mediaset SpA 1 2,617,725 28,072,590 - -------------------------------------------------------------------------------- Publishing & Broadcasting Ltd. 250,513 4,501,376 VALUE SHARES SEE NOTE 1 - -------------------------------------------------------------------------------- MEDIA Continued Societe Television Francaise 1 166,956 $ 5,939,688 - -------------------------------------------------------------------------------- Vivendi SA 335,187 14,603,742 - -------------------------------------------------------------------------------- Wire & Wireless India Ltd. 2 825,300 1,513,749 - -------------------------------------------------------------------------------- Zee Entertainment Enterprises Ltd. 1,650,600 12,749,925 - -------------------------------------------------------------------------------- Zee News Ltd. 2 746,236 875,709 ---------------- 100,131,078 - -------------------------------------------------------------------------------- MULTILINE RETAIL--1.3% Next plc 470,248 20,569,043 - -------------------------------------------------------------------------------- Pinault-Printemps- Redoute SA 1 62,530 11,414,066 ---------------- 31,983,109 - -------------------------------------------------------------------------------- SPECIALTY RETAIL--2.5% Carphone Warehouse plc (The) 2,462,330 14,651,502 - -------------------------------------------------------------------------------- H&M Hennes & Mauritz AB, Cl. B 1 377,885 23,920,229 - -------------------------------------------------------------------------------- Industria de Diseno Textil SA 367,440 23,192,737 ---------------- 61,764,468 - -------------------------------------------------------------------------------- TEXTILES, APPAREL & LUXURY GOODS--2.7% Burberry Group plc 103,229 1,397,113 - -------------------------------------------------------------------------------- Compagnie Financiere Richemont AG, A Shares 196,612 12,095,619 - -------------------------------------------------------------------------------- Luxottica Group SpA 1 554,250 19,457,181 - -------------------------------------------------------------------------------- Puma AG 42,029 18,775,317 - -------------------------------------------------------------------------------- Swatch Group AG (The), Cl. B 51,425 14,737,243 ---------------- 66,462,473 - -------------------------------------------------------------------------------- CONSUMER STAPLES--5.2% - -------------------------------------------------------------------------------- BEVERAGES--1.9% Carlsberg AS, Cl. B 112,100 13,608,006 - -------------------------------------------------------------------------------- Foster's Group Ltd. 652,896 3,438,400 - -------------------------------------------------------------------------------- Heineken NV 169,995 9,904,309 15 | OPPENHEIMER INTERNATIONAL GROWTH FUND STATEMENT OF INVESTMENTS Unaudited / Continued - -------------------------------------------------------------------------------- VALUE SHARES SEE NOTE 1 - -------------------------------------------------------------------------------- BEVERAGES Continued Pernod-Ricard SA 87,686 $ 19,265,931 ---------------- 46,216,646 - -------------------------------------------------------------------------------- FOOD & STAPLES RETAILING--0.6% William Morrison Supermarkets plc 998,639 6,214,057 - -------------------------------------------------------------------------------- Woolworths Ltd. 378,487 8,621,779 ---------------- 14,835,836 - -------------------------------------------------------------------------------- FOOD PRODUCTS--2.0% Barry Callebaut AG 2 33,982 27,772,683 - -------------------------------------------------------------------------------- Cadbury Schweppes plc 597,216 8,402,082 - -------------------------------------------------------------------------------- Koninklijke Numico NV 91,249 4,541,639 - -------------------------------------------------------------------------------- Nestle SA 21,172 8,245,464 ---------------- 48,961,868 - -------------------------------------------------------------------------------- PERSONAL PRODUCTS--0.7% L'Oreal SA 135,763 16,130,294 - -------------------------------------------------------------------------------- ENERGY--3.9% - -------------------------------------------------------------------------------- ENERGY EQUIPMENT & SERVICES--1.3% Technip SA 424,872 32,957,751 - -------------------------------------------------------------------------------- OIL & GAS--2.6% BG Group plc 1,158,427 17,708,321 - -------------------------------------------------------------------------------- BP plc, ADR 198,495 13,301,150 - -------------------------------------------------------------------------------- Total SA 285,044 21,478,308 - -------------------------------------------------------------------------------- Tsakos Energy Navigation Ltd. 156,375 10,051,785 ---------------- 62,539,564 - -------------------------------------------------------------------------------- FINANCIALS--16.2% - -------------------------------------------------------------------------------- CAPITAL MARKETS--3.3% 3i Group plc 653,433 15,707,648 - -------------------------------------------------------------------------------- Credit Suisse Group 143,645 10,924,667 - -------------------------------------------------------------------------------- Mediobanca SpA 330,530 7,587,349 - -------------------------------------------------------------------------------- MLP AG 1 198,430 4,544,300 - -------------------------------------------------------------------------------- New CST plc 2,375,422 23,282,917 - -------------------------------------------------------------------------------- UBS AG 264,865 17,278,505 ---------------- 79,325,386 VALUE SHARES SEE NOTE 1 - -------------------------------------------------------------------------------- COMMERCIAL BANKS--7.0% Anglo Irish Bank Corp. 1,717,368 $ 40,323,567 - -------------------------------------------------------------------------------- Commerzbank AG 1 226,884 11,130,654 - -------------------------------------------------------------------------------- ICICI Bank Ltd., Sponsored ADR 491,390 23,365,595 - -------------------------------------------------------------------------------- Joyo Bank Ltd. (The) 1,592,600 10,294,397 - -------------------------------------------------------------------------------- Mitsubishi UFJ Financial Group, Inc. 2,260 25,998,357 - -------------------------------------------------------------------------------- Royal Bank of Scotland Group plc (The) 1,964,817 24,413,343 - -------------------------------------------------------------------------------- Societe Generale, Cl. A 102,223 19,915,322 - -------------------------------------------------------------------------------- UniCredito Italiano SpA 3 991,085 9,301,549 - -------------------------------------------------------------------------------- UniCredito Italiano SpA 1,3 533,395 5,031,148 ---------------- 169,773,932 - -------------------------------------------------------------------------------- CONSUMER FINANCE--0.5% Credit Saison Co. Ltd. 406,100 11,598,525 - -------------------------------------------------------------------------------- DIVERSIFIED FINANCIAL SERVICES--0.5% Collins Stewart Tullett plc 2,682,982 12,484,669 - -------------------------------------------------------------------------------- INSURANCE--2.1% Allianz SE 64,450 14,277,706 - -------------------------------------------------------------------------------- AMP Ltd. 1,073,219 8,984,519 - -------------------------------------------------------------------------------- Prudential plc 621,158 9,304,701 - -------------------------------------------------------------------------------- QBE Insurance Group Ltd. 690,500 17,850,562 ---------------- 50,417,488 - -------------------------------------------------------------------------------- REAL ESTATE--1.2% DIC Asset AG 1,2 384,147 16,168,299 - -------------------------------------------------------------------------------- Solidere, GDR 4 785,925 13,164,244 ---------------- 29,332,543 - -------------------------------------------------------------------------------- REAL ESTATE MANAGEMENT & DEVELOPMENT--1.1% Sumitomo Realty & Development Co. Ltd. 722,700 27,316,516 - -------------------------------------------------------------------------------- THRIFTS & MORTGAGE FINANCE--0.5% Housing Development Finance Corp. Ltd. 263,200 12,202,939 16 | OPPENHEIMER INTERNATIONAL GROWTH FUND VALUE SHARES SEE NOTE 1 - -------------------------------------------------------------------------------- HEALTH CARE--12.0% - -------------------------------------------------------------------------------- BIOTECHNOLOGY--3.8% CSL Ltd. 182,300 $ 13,461,996 - -------------------------------------------------------------------------------- Marshall Edwards, Inc. 2,5 1,717,263 5,392,206 - -------------------------------------------------------------------------------- Marshall Edwards, Inc. 2,4 1,015,438 3,188,475 - -------------------------------------------------------------------------------- NeuroSearch AS 2 358,387 18,936,413 - -------------------------------------------------------------------------------- NicOx SA 2 1,731,521 47,692,023 - -------------------------------------------------------------------------------- Santhera Pharmaceuticals 2 47,200 4,508,818 ---------------- 93,179,931 - -------------------------------------------------------------------------------- HEALTH CARE EQUIPMENT & SUPPLIES--5.3% Essilor International SA 90,423 10,866,236 - -------------------------------------------------------------------------------- Ortivus AB, Cl. B 2,6 1,638,150 3,030,367 - -------------------------------------------------------------------------------- Phonak Holding AG 216,512 20,682,482 - -------------------------------------------------------------------------------- Straumann Holding AG 45,453 13,229,911 - -------------------------------------------------------------------------------- Synthes, Inc. 72,509 9,039,945 - -------------------------------------------------------------------------------- Terumo Corp. 281,480 11,009,407 - -------------------------------------------------------------------------------- William Demant Holding AS 2 587,205 59,931,866 ---------------- 127,790,214 - -------------------------------------------------------------------------------- LIFE SCIENCES TOOLS & SERVICES--0.1% Art Advanced Research Technologies, Inc. 2,5,6 1,901,125 595,435 - -------------------------------------------------------------------------------- Art Advanced Research Technologies, Inc. 2,6 1,721,500 539,176 - -------------------------------------------------------------------------------- Art Advanced Research Technologies, Inc., Series 1 2,6 3,124,013 978,445 - -------------------------------------------------------------------------------- Art Advanced Research Technologies, Inc., Series 2 2,6 976,420 305,816 ---------------- 2,418,872 - -------------------------------------------------------------------------------- PHARMACEUTICALS--2.8% Astellas Pharma, Inc. 107,705 4,787,240 - -------------------------------------------------------------------------------- GlaxoSmithKline plc 140,881 3,670,749 VALUE SHARES SEE NOTE 1 - -------------------------------------------------------------------------------- PHARMACEUTICALS Continued H. Lundbeck AS 96,195 $ 2,402,355 - -------------------------------------------------------------------------------- Novogen Ltd. 2,6 6,618,140 12,558,026 - -------------------------------------------------------------------------------- Oxagen Ltd. 2,5 214,287 18,572 - -------------------------------------------------------------------------------- Roche Holding AG 75,884 13,927,762 - -------------------------------------------------------------------------------- Sanofi-Aventis SA 1 144,507 13,933,680 - -------------------------------------------------------------------------------- Shionogi & Co. Ltd. 344,200 5,911,076 - -------------------------------------------------------------------------------- Takeda Pharmaceutical Co. Ltd. 156,250 10,523,396 ---------------- 67,732,856 - -------------------------------------------------------------------------------- INDUSTRIALS--16.9% - -------------------------------------------------------------------------------- AEROSPACE & DEFENSE--1.1% Empresa Brasileira de Aeronautica SA 2,219,446 26,896,774 - -------------------------------------------------------------------------------- COMMERCIAL SERVICES & SUPPLIES--3.7% Capita Group plc 3,296,791 48,372,780 - -------------------------------------------------------------------------------- Dignity plc 555,830 7,863,858 - -------------------------------------------------------------------------------- Experian Group Ltd. 886,920 11,037,765 - -------------------------------------------------------------------------------- Prosegur Compania de Seguridad SA 445,524 17,612,582 - -------------------------------------------------------------------------------- Randstad Holding NV 1 56,853 4,631,226 ---------------- 89,518,211 - -------------------------------------------------------------------------------- CONSTRUCTION & ENGINEERING--1.9% Koninklijke Boskalis Westminster NV 378,378 13,985,715 - -------------------------------------------------------------------------------- Leighton Holdings Ltd. 621,458 23,015,064 - -------------------------------------------------------------------------------- Solidere, GDR 74,732 1,251,761 - -------------------------------------------------------------------------------- Vinci SA 1 91,068 7,205,154 ---------------- 45,457,694 - -------------------------------------------------------------------------------- ELECTRICAL EQUIPMENT--3.9% ABB Ltd. 1 2,139,762 45,772,179 - -------------------------------------------------------------------------------- Alstom 2 183,540 29,067,477 - -------------------------------------------------------------------------------- Ceres Power Holdings plc 2 1,708,500 7,645,658 - -------------------------------------------------------------------------------- Ushio, Inc. 603,350 12,518,149 ---------------- 95,003,463 17 | OPPENHEIMER INTERNATIONAL GROWTH FUND STATEMENT OF INVESTMENTS Unaudited / Continued - -------------------------------------------------------------------------------- VALUE SHARES SEE NOTE 1 - -------------------------------------------------------------------------------- INDUSTRIAL CONGLOMERATES--0.8% Siemens AG 154,319 $ 20,307,591 - -------------------------------------------------------------------------------- LIFE SCIENCES TOOLS & SERVICES--0.3% BTG plc 2 2,151,961 6,008,208 - -------------------------------------------------------------------------------- MACHINERY--3.8% Aalberts Industries NV 1,583,471 44,402,556 - -------------------------------------------------------------------------------- Hyundai Heavy Industries Co. Ltd. 93,109 31,942,299 - -------------------------------------------------------------------------------- Takeuchi Mfg. Co. Ltd. 360,729 14,820,419 ---------------- 91,165,274 - -------------------------------------------------------------------------------- TRADING COMPANIES & DISTRIBUTORS--1.4% Bunzl plc 1,550,810 22,631,717 - -------------------------------------------------------------------------------- Wolseley plc 434,000 11,304,841 ---------------- 33,936,558 - -------------------------------------------------------------------------------- INFORMATION TECHNOLOGY--15.5% - -------------------------------------------------------------------------------- COMMUNICATIONS EQUIPMENT--4.0% Nokia Oyj 327,225 8,960,062 - -------------------------------------------------------------------------------- Tandberg ASA 1,693,805 38,194,620 - -------------------------------------------------------------------------------- Telefonaktiebolaget LM Ericsson, B Shares 13,036,030 49,454,546 ---------------- 96,609,228 - -------------------------------------------------------------------------------- COMPUTERS & PERIPHERALS--0.7% Logitech International SA 2 642,287 17,149,450 - -------------------------------------------------------------------------------- ELECTRONIC EQUIPMENT & INSTRUMENTS--3.9% Hoya Corp. 725,175 23,477,317 - -------------------------------------------------------------------------------- Keyence Corp. 90,974 19,435,694 - -------------------------------------------------------------------------------- Nidec Corp. 409,485 24,830,913 - -------------------------------------------------------------------------------- Nippon Electric Glass Co. Ltd. 377,475 6,026,573 - -------------------------------------------------------------------------------- Omron Corp. 314,518 8,063,239 - -------------------------------------------------------------------------------- Phoenix Mecano AG 2 26,223 12,011,025 ---------------- 93,844,761 - -------------------------------------------------------------------------------- INTERNET SOFTWARE & SERVICES--1.7% Blinkx plc 2 1,419,914 1,398,771 - -------------------------------------------------------------------------------- United Internet AG 1 349,448 6,822,603 VALUE SHARES SEE NOTE 1 - -------------------------------------------------------------------------------- INTERNET SOFTWARE & SERVICES Continued Yahoo! Japan Corp. 99,301 $ 34,168,934 ---------------- 42,390,308 - -------------------------------------------------------------------------------- IT SERVICES--0.8% Infosys Technologies Ltd. 408,678 19,359,491 - -------------------------------------------------------------------------------- OFFICE ELECTRONICS--0.9% Canon, Inc. 359,860 21,171,714 - -------------------------------------------------------------------------------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT--0.7% ASM International NV 2 398,795 10,556,104 - -------------------------------------------------------------------------------- Samsung Electronics Co. 9,816 5,660,229 ---------------- 16,216,333 - -------------------------------------------------------------------------------- SOFTWARE--2.8% Autonomy Corp. plc 2 1,419,914 21,853,917 - -------------------------------------------------------------------------------- Nintendo Co. Ltd. 71,525 25,007,303 - -------------------------------------------------------------------------------- Sage Group plc (The) 1,682,410 8,370,075 - -------------------------------------------------------------------------------- SAP AG 264,315 12,597,098 ---------------- 67,828,393 - -------------------------------------------------------------------------------- MATERIALS--5.0% - -------------------------------------------------------------------------------- CHEMICALS--1.8% Filtrona plc 1,309,442 7,486,859 - -------------------------------------------------------------------------------- Nufarm Ltd. 1,534,067 17,923,658 - -------------------------------------------------------------------------------- Sika AG 6,221 12,357,685 - -------------------------------------------------------------------------------- Syngenta AG 25,811 4,859,582 ---------------- 42,627,784 - -------------------------------------------------------------------------------- METALS & MINING--3.2% Companhia Vale do Rio Doce, Sponsored ADR 802,400 30,796,112 - -------------------------------------------------------------------------------- Impala Platinum Holdings Ltd. 909,720 27,855,064 - -------------------------------------------------------------------------------- Rio Tinto plc 259,142 18,831,950 ---------------- 77,483,126 18 | OPPENHEIMER INTERNATIONAL GROWTH FUND VALUE SHARES SEE NOTE 1 - -------------------------------------------------------------------------------- TELECOMMUNICATION SERVICES--1.1% - -------------------------------------------------------------------------------- WIRELESS TELECOMMUNICATION SERVICES--1.1% KDDI Corp. 1,632 $ 14,002,811 - -------------------------------------------------------------------------------- Vodafone Group plc 4,250,885 13,299,272 - -------------------------------------------------------------------------------- 27,302,083 ---------------- - -------------------------------------------------------------------------------- UTILITIES--0.3% - -------------------------------------------------------------------------------- ELECTRIC UTILITIES--0.3% Fortum Oyj 204,480 6,724,379 ---------------- Total Common Stocks (Cost $1,335,627,811) 2,319,010,832 - -------------------------------------------------------------------------------- PREFERRED STOCKS--0.3% - -------------------------------------------------------------------------------- Ceres Group, Inc.: $4 Cv., Series C-1 2,5 64,547 419,556 Cv., Series C 2,5 600,000 3,900,000 Cv., Series D 2,5 459,800 2,988,700 ---------------- Total Preferred Stocks (Cost $5,416,988) 7,308,256 UNITS - -------------------------------------------------------------------------------- RIGHTS, WARRANTS AND CERTIFICATES--0.0% - -------------------------------------------------------------------------------- Marshall Edwards, Inc. Wts., Exp. 7/11/10 2 (Cost $0) 355,403 330,688 SHARES - -------------------------------------------------------------------------------- INVESTMENTS IN AFFILIATED COMPANIES--3.7% - -------------------------------------------------------------------------------- Oppenheimer Institutional Money Market Fund, Cl. E, 5.29% 6,7 (Cost $89,216,298) 89,216,298 89,216,298 - -------------------------------------------------------------------------------- Total Investments, at Value (excluding Investments Purchased with Cash Collateral from Securities Loaned) (Cost $1,430,261,097) 2,415,866,074 PRINCIPAL VALUE AMOUNT SEE NOTE 1 - -------------------------------------------------------------------------------- INVESTMENTS PURCHASED WITH CASH COLLATERAL FROM SECURITIES LOANED--6.6% 8 - -------------------------------------------------------------------------------- JOINT REPURCHASE AGREEMENTS--6.6% Undivided interest of 0.24% in joint repurchase agreement (Principal Amount/Value $3,500,000,000, with a maturity value of $3,500,518,438) with Bank of America NA, 5.3325%, dated 5/31/07, to be repurchased at $8,281,939 on 6/1/07, collateralized by U.S. Agency Mortgages, 5%, 4/1/35-5/1/35, with a value of $3,570,000,000 $ 8,280,712 $ 8,280,712 - -------------------------------------------------------------------------------- Undivided interest of 37.50% in joint repurchase agreement (Principal Amount/Value $400,000,000, with a maturity value of $400,059,472) with Countrywide Securities Corp., 5.3525%,dated 5/31/07, to be repurchased at $150,022,302 on 6/1/07, collateralized by AAA Asset-Backed Securities, 0%-6%, 5/25/20-7/25/37, with a value of $420,000,000 150,000,000 150,000,000 ---------------- Total Investments Purchased with Cash Collateral from Securities Loaned (Cost $158,280,712) 158,280,712 - -------------------------------------------------------------------------------- TOTAL INVESTMENTS, AT VALUE (COST $1,588,541,809) 106.4% 2,574,146,786 - -------------------------------------------------------------------------------- LIABILITIES IN EXCESS OF OTHER ASSETS (6.4) (154,114,310) ------------------------------- NET ASSETS 100.0% $ 2,420,032,476 =============================== 19 | OPPENHEIMER INTERNATIONAL GROWTH FUND STATEMENT OF INVESTMENTS Unaudited / Continued - -------------------------------------------------------------------------------- FOOTNOTES TO STATEMENT OF INVESTMENTS 1. Partial or fully-loaned security. See Note 7 of accompanying Notes. 2. Non-income producing security. 3. The Fund holds securities which have been issued by the same entity and that trade on separate exchanges. 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 $16,352,719 or 0.68% of the Fund's net assets as of May 31, 2007. 5. Illiquid or restricted security. The aggregate value of illiquid or restricted securities as of May 31, 2007 was $13,314,469, which represents 0.55% of the Fund's net assets, of which $13,314,469 is considered restricted. See Note 6 of accompanying Notes. 6. Is or was an affiliate, as defined in the Investment Company Act of 1940, at or during the period ended May 31, 2007, 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 advisor. Transactions during the period in which the issuer was an affiliate are as follows:
SHARES GROSS GROSS SHARES NOV. 30, 2006 ADDITIONS REDUCTIONS MAY 31, 2007 - ---------------------------------------------------------------------------------------------------------------- Art Advanced Research Technologies, Inc. 1,901,125 -- -- 1,901,125 Art Advanced Research Technologies, Inc. 1,721,500 -- -- 1,721,500 Art Advanced Research Technologies, Inc., Series 1* 3,124,013 -- -- 3,124,013 Art Advanced Research Technologies, Inc., Series 2 976,420 -- -- 976,420 Novogen Ltd. 6,618,140 -- -- 6,618,140 Oppenheimer Institutional Money Market Fund, Cl. E 10,652,417 280,185,710 201,621,829 89,216,298 Ortivus AB, Cl. B 1,638,150 -- -- 1,638,150
VALUE DIVIDEND SEE NOTE 1 INCOME - ---------------------------------------------------------------------------------------------------------------- Art Advanced Research Technologies, Inc. $ 595,435 $ -- Art Advanced Research Technologies, Inc. 539,176 -- Art Advanced Research Technologies, Inc., Series 1* 978,445 -- Art Advanced Research Technologies, Inc., Series 2 305,816 -- Novogen Ltd. 12,558,026 -- Oppenheimer Institutional Money Market Fund, Cl. E 89,216,298 668,421 Ortivus AB, Cl. B 3,030,367 -- ------------------------------- $ 107,223,563 $ 668,421 ===============================
* The security had a name change from Art Advanced Research Technologies, Inc., Preference. 7. Rate shown is the 7-day yield as of May 31, 2007. 8. The security/securities have been segregated to satisfy the forward commitment to return the cash collateral received in securities lending transactions upon the borrower's return of the securities loaned. See Note 7 of accompanying Notes. 20 | OPPENHEIMER INTERNATIONAL GROWTH FUND DISTRIBUTION OF INVESTMENTS REPRESENTING GEOGRAPHIC HOLDINGS, AS A PERCENTAGE OF TOTAL INVESTMENTS AT VALUE, IS AS FOLLOWS: GEOGRAPHIC HOLDINGS VALUE PERCENT - ------------------------------------------------------------------------------- Japan $ 386,385,174 15.0% United Kingdom 365,042,156 14.2 United States 289,046,682 11.2 France 271,526,534 10.5 Switzerland 235,553,075 9.1 Germany 177,759,958 6.9 Australia 110,355,380 4.3 The Netherlands 97,048,845 3.8 Denmark 94,878,640 3.7 Italy 81,562,959 3.2 Sweden 76,405,142 3.0 India 73,211,190 2.8 Brazil 57,692,886 2.2 Spain 44,427,413 1.7 Ireland 40,323,567 1.6 Norway 38,194,620 1.5 Korea, Republic of South 37,602,528 1.5 South Africa 27,855,064 1.1 Finland 15,684,441 0.6 Mexico 15,666,105 0.6 Lebanon 14,416,005 0.6 Jersey, Channel Islands 11,037,765 0.4 Bermuda 10,051,785 0.4 Canada 2,418,872 0.1 ----------------------------- Total $ 2,574,146,786 100.0% ============================= SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 21 | OPPENHEIMER INTERNATIONAL GROWTH FUND STATEMENT OF ASSETS AND LIABILITIES Unaudited - --------------------------------------------------------------------------------
May 31, 2007 - --------------------------------------------------------------------------------------------------------- ASSETS - --------------------------------------------------------------------------------------------------------- Investments, at value--see accompanying statement of investments: Unaffiliated companies (cost $1,464,685,334) $ 2,466,923,223 Affiliated companies (cost $123,856,475) 107,223,563 ---------------- 2,574,146,786 - --------------------------------------------------------------------------------------------------------- Cash 1,795,654 - --------------------------------------------------------------------------------------------------------- Receivables and other assets: Interest and dividends 7,909,017 Shares of beneficial interest sold 6,086,532 Investments sold 355,471 Other 81,687 ---------------- Total assets 2,590,375,147 - --------------------------------------------------------------------------------------------------------- LIABILITIES - --------------------------------------------------------------------------------------------------------- Return of collateral for securities loaned 158,280,712 - --------------------------------------------------------------------------------------------------------- Payables and other liabilities: Investments purchased 6,131,192 Shares of beneficial interest redeemed 4,296,607 Distribution and service plan fees 776,505 Transfer and shareholder servicing agent fees 325,790 Trustees' compensation 261,691 Shareholder communications 162,829 Other 107,345 ---------------- Total liabilities 170,342,671 - --------------------------------------------------------------------------------------------------------- NET ASSETS $ 2,420,032,476 ================ - --------------------------------------------------------------------------------------------------------- COMPOSITION OF NET ASSETS - --------------------------------------------------------------------------------------------------------- Paid-in capital $ 1,705,685,560 - --------------------------------------------------------------------------------------------------------- Accumulated net investment loss (9,065,501) - --------------------------------------------------------------------------------------------------------- Accumulated net realized loss on investments and foreign currency transactions (262,180,707) - --------------------------------------------------------------------------------------------------------- Net unrealized appreciation on investments and translation of assets and liabilities denominated in foreign currencies 985,593,124 ---------------- NET ASSETS $ 2,420,032,476 ================
22 | OPPENHEIMER INTERNATIONAL GROWTH FUND - ---------------------------------------------------------------------------------------------------------- NET ASSET VALUE PER SHARE - ---------------------------------------------------------------------------------------------------------- Class A Shares: Net asset value and redemption price per share (based on net assets of $1,433,297,711 and 45,589,365 shares of beneficial interest outstanding) $ 31.44 Maximum offering price per share (net asset value plus sales charge of 5.75% of offering price) $ 33.36 - ---------------------------------------------------------------------------------------------------------- Class B Shares: Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $179,324,966 and 5,978,025 shares of beneficial interest outstanding) $ 30.00 - ---------------------------------------------------------------------------------------------------------- Class C Shares: Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $273,026,628 and 9,108,548 shares of beneficial interest outstanding) $ 29.97 - ---------------------------------------------------------------------------------------------------------- Class N Shares: Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $67,970,893 and 2,193,748 shares of beneficial interest outstanding) $ 30.98 - ---------------------------------------------------------------------------------------------------------- Class Y Shares: Net asset value, redemption price and offering price per share (based on net assets of $466,412,278 and 14,840,517 shares of beneficial interest outstanding) $ 31.43
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 23 | OPPENHEIMER INTERNATIONAL GROWTH FUND STATEMENT OF OPERATIONS Unaudited - --------------------------------------------------------------------------------
For the Six Months Ended May 31, 2007 - --------------------------------------------------------------------------------------------------------- INVESTMENT INCOME - --------------------------------------------------------------------------------------------------------- Dividends: Unaffiliated companies (net of foreign withholding taxes of $710,963) $ 23,743,962 Affiliated companies 668,421 - --------------------------------------------------------------------------------------------------------- Portfolio lending fees 1,234,541 - --------------------------------------------------------------------------------------------------------- Interest 52,322 -------------- Total investment income 25,699,246 - --------------------------------------------------------------------------------------------------------- EXPENSES - --------------------------------------------------------------------------------------------------------- Management fees 7,529,257 - --------------------------------------------------------------------------------------------------------- Distribution and service plan fees: Class A 1,542,982 Class B 844,112 Class C 1,222,726 Class N 151,947 - --------------------------------------------------------------------------------------------------------- Transfer and shareholder servicing agent fees: Class A 1,283,758 Class B 176,872 Class C 229,650 Class N 93,033 Class Y 6,167 - --------------------------------------------------------------------------------------------------------- Shareholder communications: Class A 81,190 Class B 31,928 Class C 20,353 Class N 2,792 - --------------------------------------------------------------------------------------------------------- Custodian fees and expenses 185,274 - --------------------------------------------------------------------------------------------------------- Trustees' compensation 86,544 - --------------------------------------------------------------------------------------------------------- Other 55,662 -------------- Total expenses 13,544,247 Less reduction to custodian expenses (131) Less waivers and reimbursements of expenses (12,875) -------------- Net expenses 13,531,241 - --------------------------------------------------------------------------------------------------------- NET INVESTMENT INCOME 12,168,005
24 | OPPENHEIMER INTERNATIONAL GROWTH FUND - --------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) - --------------------------------------------------------------------------------------------------------- Net realized gain on: Investments $ 28,142,502 Foreign currency transactions 2,846,436 -------------- Net realized gain 30,988,938 - --------------------------------------------------------------------------------------------------------- Net change in unrealized appreciation (depreciation) on: Investments 289,601,542 Translation of assets and liabilities denominated in foreign currencies (1,259,546) -------------- Net change in unrealized appreciation 288,341,996 - --------------------------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 331,498,939 ==============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 25 | OPPENHEIMER INTERNATIONAL GROWTH FUND STATEMENTS OF CHANGES IN NET ASSETS - --------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED ENDED MAY 31, 2007 NOVEMBER 30, (UNAUDITED) 2006 - ----------------------------------------------------------------------------------------------------------- OPERATIONS - ----------------------------------------------------------------------------------------------------------- Net investment income $ 12,168,005 $ 3,957,905 - ----------------------------------------------------------------------------------------------------------- Net realized gain 30,988,938 17,973,587 - ----------------------------------------------------------------------------------------------------------- Net change in unrealized appreciation 288,341,996 365,553,552 ----------------------------------- Net increase in net assets resulting from operations 331,498,939 387,485,044 - ----------------------------------------------------------------------------------------------------------- DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS - ----------------------------------------------------------------------------------------------------------- Dividends from net investment income: Class A (8,785,758) (5,755,892) Class B -- -- Class C (392,750) (90,780) Class N (279,118) (180,972) Class Y (3,154,491) (125,384) ----------------------------------- (12,612,117) (6,153,028) - ----------------------------------------------------------------------------------------------------------- BENEFICIAL INTEREST TRANSACTIONS - ----------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from beneficial interest transactions: Class A 125,488,759 81,182,535 Class B (14,193,356) (36,542,935) Class C 14,485,672 11,827,417 Class N 3,652,701 6,042,568 Class Y 158,957,078 218,286,911 ----------------------------------- 288,390,854 280,796,496 - ----------------------------------------------------------------------------------------------------------- NET ASSETS - ----------------------------------------------------------------------------------------------------------- Total increase 607,277,676 662,128,512 - ----------------------------------------------------------------------------------------------------------- Beginning of period 1,812,754,800 1,150,626,288 ----------------------------------- End of period (including accumulated net investment loss of $9,065,501 and $8,621,389, respectively) $ 2,420,032,476 $ 1,812,754,800 ===================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS 26 | OPPENHEIMER INTERNATIONAL GROWTH FUND FINANCIAL HIGHLIGHTS - --------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED ENDED MAY 31, 2007 NOV. 30, CLASS A (UNAUDITED) 2006 2005 2004 2003 2002 - ------------------------------------------------------------------------------------------------------------------------------------ PER SHARE OPERATING DATA - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of period $ 27.03 $ 20.70 $ 18.19 $ 15.72 $ 11.63 $ 14.96 - ------------------------------------------------------------------------------------------------------------------------------------ Income (loss) from investment operations: Net investment income .18 1 .10 1 .10 1 .04 1 .01 .12 Net realized and unrealized gain (loss) 4.44 6.38 2.53 2.63 4.19 (3.41) ---------------------------------------------------------------------------- Total from investment operations 4.62 6.48 2.63 2.67 4.20 (3.29) - ------------------------------------------------------------------------------------------------------------------------------------ Dividends and/or distributions to shareholders: Dividends from net investment income (.21) (.15) (.12) (.20) (.11) (.04) - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, end of period $ 31.44 $ 27.03 $ 20.70 $ 18.19 $ 15.72 $ 11.63 ============================================================================ - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL RETURN, AT NET ASSET VALUE 2 17.21% 31.49% 14.51% 17.18% 36.55% (22.04)% - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA - ------------------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (in thousands) $1,433,298 $1,115,664 $787,600 $686,313 $528,363 $358,097 - ------------------------------------------------------------------------------------------------------------------------------------ Average net assets (in thousands) $1,260,069 $ 924,048 $717,536 $598,265 $390,315 $512,319 - ------------------------------------------------------------------------------------------------------------------------------------ Ratios to average net assets: 3 Net investment income 1.23% 0.40% 0.52% 0.22% 0.18% 0.62% Total expenses 1.22% 4 1.28% 4 1.49% 1.61% 1.88% 1.64% Expenses after waivers, payments and/or reimbursements and reduction to custodian expenses 1.22% 1.28% 1.41% 1.43% 1.42% 1.56% - ------------------------------------------------------------------------------------------------------------------------------------ Portfolio turnover rate 6% 12% 26% 37% 61% 46%
1. Per share amounts calculated based on the average shares outstanding during the period. 2. Assumes an investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods of less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 3. Annualized for periods of less than one full year. 4. Total expenses including indirect expenses from affiliated fund were as follows: Six Months Ended May 31, 2007 1.22% Year Ended November 30, 2006 1.28 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 27 | OPPENHEIMER INTERNATIONAL GROWTH FUND FINANCIAL HIGHLIGHTS Continued - --------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED ENDED MAY 31, 2007 NOV. 30, CLASS B (UNAUDITED) 2006 2005 2004 2003 2002 - ------------------------------------------------------------------------------------------------------------------------------------ PER SHARE OPERATING DATA - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of period $ 25.69 $ 19.69 $ 17.33 $ 15.00 $ 11.10 $ 14.34 - ------------------------------------------------------------------------------------------------------------------------------------ Income (loss) from investment operations: Net investment income (loss) .05 1 (.08) 1 (.05) 1 (.09) 1 (.13) (.03) Net realized and unrealized gain (loss) 4.26 6.08 2.41 2.51 4.06 (3.21) -------------------------------------------------------------------------- Total from investment operations 4.31 6.00 2.36 2.42 3.93 (3.24) - ------------------------------------------------------------------------------------------------------------------------------------ Dividends and/or distributions to shareholders: Dividends from net investment income -- -- -- (.09) (.03) -- - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, end of period $ 30.00 $ 25.69 $ 19.69 $ 17.33 $ 15.00 $ 11.10 ========================================================================== - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL RETURN, AT NET ASSET VALUE 2 16.78% 30.47% 13.62% 16.25% 35.49% (22.59)% - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA - ------------------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (in thousands) $179,325 $167,383 $160,347 $166,973 $174,959 $161,074 - ------------------------------------------------------------------------------------------------------------------------------------ Average net assets (in thousands) $169,622 $165,575 $162,953 $167,441 $148,838 $200,304 - ------------------------------------------------------------------------------------------------------------------------------------ Ratios to average net assets: 3 Net investment income (loss) 0.35% (0.37)% (0.25)% (0.57)% (0.55)% (0.12)% Total expenses 2.00% 4 2.07% 4 2.19% 2.24% 2.48% 2.39% Expenses after waivers, payments and/or reimbursements and reduction to custodian expenses 2.00% 2.07% 2.19% 2.21% 2.19% 2.31% - ------------------------------------------------------------------------------------------------------------------------------------ Portfolio turnover rate 6% 12% 26% 37% 61% 46%
1. Per share amounts calculated based on the average shares outstanding during the period. 2. Assumes an investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods of less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 3. Annualized for periods of less than one full year. 4. Total expenses including indirect expenses from affiliated fund were as follows: Six Months Ended May 31, 2007 2.00% Year Ended November 30, 2006 2.07 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 28 | OPPENHEIMER INTERNATIONAL GROWTH FUND
SIX MONTHS YEAR ENDED ENDED MAY 31, 2007 NOV. 30, CLASS C (UNAUDITED) 2006 2005 2004 2003 2002 - ------------------------------------------------------------------------------------------------------------------------------------ PER SHARE OPERATING DATA - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of period $ 25.71 $ 19.71 $ 17.34 $ 15.01 $ 11.12 $ 14.37 - ------------------------------------------------------------------------------------------------------------------------------------ Income (loss) from investment operations: Net investment income (loss) .07 1 (.08) 1 (.04) 1 (.08) 1 (.08) (.01) Net realized and unrealized gain (loss) 4.24 6.09 2.41 2.52 4.01 (3.24) -------------------------------------------------------------------------------- Total from investment operations 4.31 6.01 2.37 2.44 3.93 (3.25) - ------------------------------------------------------------------------------------------------------------------------------------ Dividends and/or distributions to shareholders: Dividends from net investment income (.05) (.01) -- (.11) (.04) -- - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, end of period $ 29.97 $ 25.71 $ 19.71 $ 17.34 $ 15.01 $ 11.12 ================================================================================ - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL RETURN, AT NET ASSET VALUE 2 16.77% 30.51% 13.67% 16.34% 35.44% (22.62)% - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA - ------------------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (in thousands) $ 273,026 $ 220,735 $ 158,968 $ 144,529 $ 116,659 $ 89,456 - ------------------------------------------------------------------------------------------------------------------------------------ Average net assets (in thousands) $ 245,672 $ 188,347 $ 151,790 $ 131,125 $ 90,532 $ 106,551 - ------------------------------------------------------------------------------------------------------------------------------------ Ratios to average net assets: 3 Net investment income (loss) 0.47% (0.34)% (0.20)% (0.52)% (0.59)% (0.12)% Total expenses 1.96% 4 2.03% 4 2.13% 2.16% 2.38% 2.37% Expenses after waivers, payments and/or reimbursements and reduction to custodian expenses 1.96% 2.03% 2.13% 2.16% 2.22% 2.29% - ------------------------------------------------------------------------------------------------------------------------------------ Portfolio turnover rate 6% 12% 26% 37% 61% 46%
1. Per share amounts calculated based on the average shares outstanding during the period. 2. Assumes an investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods of less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 3. Annualized for periods of less than one full year. 4. Total expenses including indirect expenses from affiliated fund were as follows: Six Months Ended May 31, 2007 1.96% Year Ended November 30, 2006 2.03 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 29 | OPPENHEIMER INTERNATIONAL GROWTH FUND FINANCIAL HIGHLIGHTS Continued - --------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED ENDED MAY 31, 2007 NOV. 30, CLASS N (UNAUDITED) 2006 2005 2004 2003 2002 - ------------------------------------------------------------------------------------------------------------------------------ PER SHARE OPERATING DATA - ------------------------------------------------------------------------------------------------------------------------------ Net asset value, beginning of period $ 26.61 $ 20.40 $ 17.94 $ 15.51 $ 11.55 $ 14.93 - ------------------------------------------------------------------------------------------------------------------------------ Income (loss) from investment operations: Net investment income (loss) .13 1 .01 1 .05 1 -- 1,2 .02 .09 Net realized and unrealized gain (loss) 4.38 6.30 2.49 2.60 4.08 (3.38) ---------------------------------------------------------------------------- Total from investment operations 4.51 6.31 2.54 2.60 4.10 (3.29) - ------------------------------------------------------------------------------------------------------------------------------ Dividends and/or distributions to shareholders: Dividends from net investment income (.14) (.10) (.08) (.17) (.14) (.09) - ------------------------------------------------------------------------------------------------------------------------------ Net asset value, end of period $ 30.98 $ 26.61 $ 20.40 $ 17.94 $ 15.51 $ 11.55 ============================================================================ - ------------------------------------------------------------------------------------------------------------------------------ TOTAL RETURN, AT NET ASSET VALUE 3 17.00% 31.05% 14.19% 16.94% 36.01% (22.18)% - ------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------ RATIOS/SUPPLEMENTAL DATA - ------------------------------------------------------------------------------------------------------------------------------ Net assets, end of period (in thousands) $ 67,971 $ 54,908 $ 36,980 $ 32,631 $ 21,180 $ 11,833 - ------------------------------------------------------------------------------------------------------------------------------ Average net assets (in thousands) $ 61,212 $ 44,538 $ 33,383 $ 26,738 $ 14,722 $ 9,195 - ------------------------------------------------------------------------------------------------------------------------------ Ratios to average net assets: 4 Net investment income (loss) 0.89% 0.06% 0.26% (0.02)% (0.16)% 0.19% Total expenses 1.57% 5 1.64% 5 1.77% 1.77% 1.90% 1.80% Expenses after waivers, payments and/or reimbursements and reduction to custodian expenses 1.57% 1.62% 1.67% 1.66% 1.73% 1.72% - ------------------------------------------------------------------------------------------------------------------------------ Portfolio turnover rate 6% 12% 26% 37% 61% 46%
1. Per share amounts calculated based on the average shares outstanding during the period. 2. Less than $0.005 per share. 3. Assumes an investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods of less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 4. Annualized for periods of less than one full year. 5. Total expenses including indirect expenses from affiliated fund were as follows: Six Months Ended May 31, 2007 1.57% Year Ended November 30, 2006 1.64 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 30 | OPPENHEIMER INTERNATIONAL GROWTH FUND
SIX MONTHS YEAR ENDED ENDED MAY 31, 2007 NOV. 30, CLASS Y (UNAUDITED) 2006 2005 1 - -------------------------------------------------------------------------------------------------------------------- PER SHARE OPERATING DATA - -------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 27.07 $ 20.74 $ 20.71 - -------------------------------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment income 2 .27 .25 .05 Net realized and unrealized gain (loss) 4.41 6.34 (.02) ----------------------------------------------- Total from investment operations 4.68 6.59 .03 - -------------------------------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Dividends from net investment income (.32) (.26) -- - -------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $ 31.43 $ 27.07 $ 20.74 =============================================== - -------------------------------------------------------------------------------------------------------------------- TOTAL RETURN, AT NET ASSET VALUE 3 17.48% 32.11% 0.15% - -------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA - -------------------------------------------------------------------------------------------------------------------- Net assets, end of period (in thousands) $ 466,412 $ 254,065 $ 6,731 - -------------------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $ 346,108 $ 142,489 $ 2,071 - -------------------------------------------------------------------------------------------------------------------- Ratios to average net assets: 4 Net investment income 1.89% 1.03% 0.98% Total expenses 0.76% 5,6,7 0.77% 5,6 0.85% 6 - -------------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 6% 12% 26%
1. For the period from September 7, 2005 (inception of offering) to November 30, 2005. 2. Per share amounts calculated based on the average shares outstanding during the period. 3. Assumes an investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods of less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 4. Annualized for periods of less than one full year. 5. Total expenses including indirect expenses from affiliated fund were as follows: Six Months Ended May 31, 2007 0.76% Year Ended November 30, 2006 0.77 6. Reduction to custodian expenses less than 0.01%. 7. Voluntary waiver or reimbursement of indirect management fees less than 0.005%. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 31 | OPPENHEIMER INTERNATIONAL GROWTH FUND NOTES TO FINANCIAL STATEMENTS Unaudited - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. SIGNIFICANT ACCOUNTING POLICIES Oppenheimer International Growth Fund (the Fund) is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. The Fund's investment objective is to seek long-term capital appreciation. The Fund's investment advisor is OppenheimerFunds, Inc. (the Manager). The Fund offers Class A, Class B, Class C, Class N and Class Y shares. Class A shares are sold at their offering price, which is normally net asset value plus a front-end sales charge. Class B, Class C and Class N shares are sold without a front-end sales charge but may be subject to a contingent deferred sales charge (CDSC). Class N shares are sold only through retirement plans. Retirement plans that offer Class N shares may impose charges on those accounts. Class Y shares are sold to certain institutional investors without either a front-end sales charge or a CDSC, however, the institutional investor may impose charges on those accounts. All classes of shares have identical rights and voting privileges with respect to the Fund in general and exclusive voting rights on matters that affect that class alone. Earnings, net assets and net asset value per share may differ due to each class having its own expenses, such as transfer and shareholder servicing agent fees and shareholder communications, directly attributable to that class. Class A, B, C and N have separate distribution and/or service plans. No such plan has been adopted for Class Y shares. Class B shares will automatically convert to Class A shares six years after the date of purchase. The Fund assesses a 2% fee on the proceeds of fund shares that are redeemed (either by selling or exchanging to another Oppenheimer fund) within 30 days of their purchase. The fee, which is retained by the Fund, is accounted for as an addition to paid-in capital. The following is a summary of significant accounting policies consistently followed by the Fund. - -------------------------------------------------------------------------------- SECURITIES VALUATION. The Fund calculates the net asset value of its shares as of the close of the New York Stock Exchange (the "Exchange"), normally 4:00 P.M. Eastern time, on each day the Exchange is open for business. Securities may be valued primarily using dealer-supplied valuations or a portfolio pricing service authorized by the Board of Trustees. Securities listed or traded on National Stock Exchanges or other domestic exchanges are valued based on the last sale price of the security traded on that exchange prior to the time when the Fund's assets are valued. Securities traded on NASDAQ(R) are valued based on the closing price provided by NASDAQ prior to the time when the Fund's assets are valued. In the absence of a sale, the security is valued at the last sale price on the prior trading day, if it is within the spread of the closing "bid" and "asked" prices, and if not, at the closing bid price. Securities traded on foreign exchanges are valued based on the last sale price on the principal 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 will be valued at the 32 | OPPENHEIMER INTERNATIONAL GROWTH FUND mean between the "bid" and "asked" prices. 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. Options are valued daily based upon the last sale price on the principal exchange on which the option is traded. Securities (including restricted securities) for which market quotations are not readily available are valued at their fair value. Foreign and domestic securities whose values have been materially affected by what the Manager identifies as a significant event occurring before the Fund's assets are valued but after the close of their respective exchanges will be fair valued. Fair value is determined in good faith using consistently applied procedures under the supervision of the Board of Trustees. Investments in open-end registered investment companies (including affiliated funds) are valued at that fund's net asset value. Short-term "money market type" debt securities with remaining maturities of sixty days or less are valued at amortized cost (which approximates market value). - -------------------------------------------------------------------------------- FOREIGN CURRENCY TRANSLATION. The Fund's accounting records are maintained in U.S. dollars. The values of securities denominated in foreign currencies and amounts related to the purchase and sale of foreign securities and foreign investment income are translated into U.S. dollars as of the close of the New York Stock Exchange (the "Exchange"), normally 4:00 P.M. Eastern time, on each day the Exchange is open for business. Foreign exchange rates may be valued primarily using dealer supplied valuations or a portfolio pricing service authorized by the Board of Trustees. Reported net realized foreign exchange gains or losses arise from sales of portfolio securities, sales and maturities of short-term securities, sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the values of assets and liabilities, including investments in securities at fiscal period end, resulting from changes in exchange rates. The effect of changes in foreign currency exchange rates on investments is separately identified from the fluctuations arising from changes in market values of securities held and reported with all other foreign currency gains and losses in the Fund's Statement of Operations. - -------------------------------------------------------------------------------- JOINT REPURCHASE AGREEMENTS. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the Fund, along with other affiliated funds advised by the Manager, may transfer uninvested cash balances into joint trading accounts on a daily basis. These balances are invested in one or more repurchase agreements. Securities pledged as collateral for repurchase agreements are held by a custodian bank until the agreements mature. Each agreement requires that the market value of the collateral be sufficient to cover payments of interest and principal. In the event of default by the other party to the agreement, retention of the collateral may be subject to legal proceedings. 33 | OPPENHEIMER INTERNATIONAL GROWTH FUND NOTES TO FINANCIAL STATEMENTS Unaudited / Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. SIGNIFICANT ACCOUNTING POLICIES Continued 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") which seeks current income and stability of principal. IMMF is a registered open-end management investment company, regulated as a money market fund under the Investment Company Act of 1940, as amended. The Manager is also the investment advisor of IMMF. The Fund's investment in IMMF is included in the Statement of Investments. As a shareholder, the Fund is subject to its proportional share of IMMF's Class E expenses, including its management fee. The Manager will waive fees and/or reimburse Fund expenses in an amount equal to the indirect management fees incurred through the Fund's investment in IMMF. - -------------------------------------------------------------------------------- ALLOCATION OF INCOME, EXPENSES, GAINS AND LOSSES. Income, expenses (other than those attributable to a specific class), gains and losses are allocated on a daily basis to each class of shares based upon the relative proportion of net assets represented by such class. Operating expenses directly attributable to a specific class are charged against the operations of that class. - -------------------------------------------------------------------------------- FEDERAL TAXES. The Fund intends to comply with provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its investment company taxable income, including any net realized gain on investments not offset by capital loss carryforwards, if any, to shareholders, therefore, no federal income or excise tax provision is required. Net investment income (loss) and net realized gain (loss) may differ for financial statement and tax purposes. The character of dividends and distributions made during the fiscal year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. Also, due to timing of dividends and distributions, the fiscal year in which amounts are distributed may differ from the fiscal year in which the income or net realized gain was recorded by the Fund. As of May 31, 2007, the Fund had available for federal income tax purposes an estimated capital loss carryforward of $252,528,414 expiring by 2015. This estimated capital loss carryforward represents carryforward as of the end of the last fiscal year, increased for losses deferred under tax accounting rules to the current fiscal year and is increased or decreased by capital losses or gains realized in the first six months of the current fiscal year. As of May 31, 2007, it is estimated that the Fund will utilize $30,988,938 of capital loss carryforward to offset realized capital gains. During the fiscal year ended November 30, 2006, the Fund utilized $16,226,751 of capital loss carryforward to offset capital gains realized in that fiscal year. 34 | OPPENHEIMER INTERNATIONAL GROWTH FUND As of November 30, 2006, the Fund had available for federal income tax purposes post-October passive foreign investment company losses of $84,968 and unused capital loss carryforwards as follows: EXPIRING --------------------------- 2010 $ 107,818,404 2011 175,613,980 --------------- Total $ 283,432,384 =============== - -------------------------------------------------------------------------------- TRUSTEES' COMPENSATION. The Fund has adopted an unfunded retirement plan (the "Plan") for the Fund's independent trustees. Benefits are based on years of service and fees paid to each trustee during their period of service. The Plan was frozen with respect to adding new participants effective December 31, 2006 (the "Freeze Date") and existing Plan Participants as of the Freeze Date will continue to receive accrued benefits under the Plan. Active independent trustees as of the Freeze Date have each elected a distribution method with respect to their benefits under the Plan. During the six months ended May 31, 2007, the Fund's projected benefit obligations were increased by $64,937 and payments of $34,501 were made to retired trustees, resulting in an accumulated liability of $180,242 as of May 31, 2007. 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, are recorded on the ex-dividend date. Income and capital gain distributions, if any, are declared and paid annually. - -------------------------------------------------------------------------------- INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date or upon ex-dividend notification in the case of certain foreign dividends where the ex-dividend date may have passed. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income, which includes accretion of discount and amortization of premium, is accrued as earned. 35 | OPPENHEIMER INTERNATIONAL GROWTH FUND NOTES TO FINANCIAL STATEMENTS Unaudited / Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. SIGNIFICANT ACCOUNTING POLICIES Continued CUSTODIAN FEES. "Custodian fees and expenses" in the Statement of Operations may include interest expense incurred by the Fund on any cash overdrafts of its custodian account during the period. Such cash overdrafts may result from the effects of failed trades in portfolio securities and from cash outflows resulting from unanticipated shareholder redemption activity. The Fund pays interest to its custodian on such cash overdrafts, to the extent they are not offset by positive cash balances maintained by the Fund, at a rate equal to the Federal Funds Rate plus 0.50%. The "Reduction to custodian expenses" line item, if applicable, represents earnings on cash balances maintained by the Fund during the period. Such interest expense and other custodian fees may be paid with these earnings. - -------------------------------------------------------------------------------- SECURITY TRANSACTIONS. Security transactions are recorded on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost. - -------------------------------------------------------------------------------- INDEMNIFICATIONS. The Fund's organizational documents provide current and former trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote. - -------------------------------------------------------------------------------- OTHER. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. - -------------------------------------------------------------------------------- 2. SHARES OF BENEFICIAL INTEREST The Fund has authorized an unlimited number of no par value shares of beneficial interest of each class. Transactions in shares of beneficial interest were as follows:
SIX MONTHS ENDED MAY 31, 2007 YEAR ENDED NOVEMBER 30, 2006 SHARES AMOUNT SHARES AMOUNT - --------------------------------------------------------------------------------------------------------------- CLASS A Sold 9,765,219 $ 282,485,143 14,608,631 $ 347,230,645 Dividends and/or distributions reinvested 271,050 7,467,432 231,096 4,968,552 Redeemed (5,722,486) (164,463,816) 1 (11,611,816) (271,016,662) 2 ------------------------------------------------------------------- Net increase 4,313,783 $ 125,488,759 3,227,911 $ 81,182,535 =================================================================== - --------------------------------------------------------------------------------------------------------------- CLASS B Sold 865,602 $ 24,074,937 1,567,352 $ 35,450,476 Dividends and/or distributions reinvested -- -- -- -- Redeemed (1,401,991) (38,268,293) 1 (3,194,519) (71,993,411) 2 ------------------------------------------------------------------- Net decrease (536,389) $ (14,193,356) (1,627,167) $ (36,542,935) ===================================================================
36 | OPPENHEIMER INTERNATIONAL GROWTH FUND
SIX MONTHS ENDED MAY 31, 2007 YEAR ENDED NOVEMBER 30, 2006 SHARES AMOUNT SHARES AMOUNT - --------------------------------------------------------------------------------------------------------------- CLASS C Sold 1,504,905 $ 41,620,254 2,201,244 $ 49,847,330 Dividends and/or distributions reinvested 12,358 325,624 3,708 76,379 Redeemed (993,060) (27,460,206) 1 (1,685,022) (38,096,292) 2 ------------------------------------------------------------------ Net increase 524,203 $ 14,485,672 519,930 $ 11,827,417 ================================================================== - --------------------------------------------------------------------------------------------------------------- CLASS N Sold 511,033 $ 14,463,511 957,911 $ 22,435,159 Dividends and/or distributions reinvested 9,350 254,237 8,011 170,075 Redeemed (389,795) (11,065,047) 1 (715,044) (16,562,666) 2 ------------------------------------------------------------------ Net increase 130,588 $ 3,652,701 250,878 $ 6,042,568 ================================================================== - --------------------------------------------------------------------------------------------------------------- CLASS Y Sold 5,616,039 $ 163,756,502 12,839,289 $ 306,975,962 Dividends and/or distributions reinvested 114,792 3,154,476 5,850 125,371 Redeemed (275,763) (7,953,900) 1 (3,784,278) (88,814,422) 2 ------------------------------------------------------------------ Net increase 5,455,068 $ 158,957,078 9,060,861 $ 218,286,911 ==================================================================
1. Net of redemption fees of $6,583, $886, $1,284, $320 and $1,808 for Class A, Class B, Class C, Class N and Class Y, respectively. 2. Net of redemption fees of $7,906, $1,416, $1,611, $381 and $1,219 for Class A, Class B, Class C, Class N and Class Y, respectively. - -------------------------------------------------------------------------------- 3. 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 May 31, 2007, were as follows: PURCHASES SALES -------------------------------------------------------------- Investment securities $325,315,296 $120,014,243 - -------------------------------------------------------------------------------- 4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES MANAGEMENT FEES. Management fees paid to the Manager were in accordance with the investment advisory agreement with the Fund which provides for a fee at an annual rate of average net assets as shown in the following table: FEE SCHEDULE ----------------------------------- Up to $250 million 0.80% Next $250 million 0.77 Next $500 million 0.75 Next $1 billion 0.69 Over $2.0 billion 0.67 37 | OPPENHEIMER INTERNATIONAL GROWTH FUND NOTES TO FINANCIAL STATEMENTS Unaudited / Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued 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 May 31, 2007, the Fund paid $1,762,898 to OFS for services to the Fund. Additionally, Class Y shares are subject to minimum fees of $10,000 per annum for assets of $10 million or more. The Class Y shares are subject to the minimum fees in the event that the per account fee does not equal or exceed the applicable minimum fees. OFS may voluntarily waive the minimum fees. - -------------------------------------------------------------------------------- DISTRIBUTION AND SERVICE PLAN (12b-1) FEES. Under its General Distributor's Agreement with the Fund, OppenheimerFunds Distributor, Inc. (the Distributor) acts as the Fund's principal underwriter in the continuous public offering of the Fund's classes of shares. - -------------------------------------------------------------------------------- SERVICE PLAN FOR CLASS A SHARES. The Fund has adopted a Service Plan for Class A shares. It reimburses the Distributor for a portion of its costs incurred for services provided to accounts that hold Class A shares. Reimbursement is made periodically at an annual rate of up to 0.25% of the average annual net assets of Class A shares of the Fund. The Distributor currently uses all of those fees to pay dealers, brokers, banks and other financial institutions periodically for providing personal services and maintenance of accounts of their customers that hold Class A shares. Any unreimbursed expenses the Distributor incurs with respect to Class A shares in any fiscal year cannot be recovered in subsequent periods. Fees incurred by the Fund under the plan are detailed in the Statement of Operations. - -------------------------------------------------------------------------------- DISTRIBUTION AND SERVICE PLANS FOR CLASS B, CLASS C AND CLASS N SHARES. The Fund has adopted Distribution and Service Plans for Class B, Class C and Class N shares to compensate the Distributor for its services in connection with the distribution of those shares and servicing accounts. Under the plans, the Fund pays the Distributor an annual asset-based sales charge of 0.75% on Class B and Class C shares and 0.25% on Class N shares. The Distributor also receives a service fee of 0.25% per year under each plan. If either the Class B, Class C or Class N plan is terminated by the Fund or by the shareholders of a class, the Board of Trustees and its independent trustees must determine whether the Distributor shall be entitled to payment from the Fund of all or a portion of the service fee and/or asset-based sales charge in respect to shares sold prior to the effective date of such termination. The Distributor determines its uncompensated expenses under the plan at calendar quarter ends. The Distributor's aggregate uncompensated expenses under the plan at March 31, 2007 for Class B, Class C and Class N shares were $2,405,202, $3,589,666 and $404,015, respectively. Fees incurred by the Fund under the plans are detailed in the Statement of Operations. 38 | OPPENHEIMER INTERNATIONAL GROWTH FUND - -------------------------------------------------------------------------------- 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 - --------------------------------------------------------------------------------------------- May 31, 2007 $ 157,779 $ 4,830 $ 98,676 $ 7,770 $ 2,202
- -------------------------------------------------------------------------------- WAIVERS AND REIMBURSEMENTS OF EXPENSES. OFS has voluntarily agreed to limit transfer and shareholder servicing agent fees for all classes to 0.35% of average annual net assets per class. This undertaking may be amended or withdrawn at any time. The Manager will waive fees and/or reimburse Fund expenses in an amount equal to the indirect management fees incurred through the Fund's investment in IMMF. During the six months ended May 31, 2007, the Manager waived $12,875 for IMMF management fees. - -------------------------------------------------------------------------------- 5. FOREIGN CURRENCY CONTRACTS A foreign currency contract is a commitment to purchase or sell a foreign currency at a future date, at a negotiated rate. The Fund may enter into foreign currency contracts to settle specific purchases or sales of securities denominated in a foreign currency and for protection from adverse exchange rate fluctuation. Risks to the Fund include the potential inability of the counterparty to meet the terms of the contract. The net U.S. dollar value of foreign currency underlying all contractual commitments held by the Fund and the resulting unrealized appreciation or depreciation are determined using prevailing foreign currency exchange rates. Unrealized appreciation and depreciation on foreign currency contracts are reported in the Statement of Assets and Liabilities as a receivable or payable and in the Statement of Operations with the change in unrealized appreciation or depreciation. The Fund may realize a gain or loss upon the closing or settlement of the foreign transaction. Contracts closed or settled with the same broker are recorded as net realized gains or losses. Such realized gains and losses are reported with all other foreign currency gains and losses in the Statement of Operations. As of May 31, 2007, the Fund had no outstanding foreign currency contracts. 39 | OPPENHEIMER INTERNATIONAL GROWTH FUND NOTES TO FINANCIAL STATEMENTS Unaudited / Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 6. ILLIQUID OR RESTRICTED SECURITIES As of May 31, 2007, investments in securities included issues that are illiquid or restricted. Restricted securities are purchased in private placement transactions, are not registered under the Securities Act of 1933, may have contractual restrictions on resale, and are valued under methods approved by the Board of Trustees as reflecting fair value. A security may also be considered illiquid if it lacks a readily available market or if its valuation has not changed for a certain period of time. The Fund will not invest more than 10% of its net assets (determined at the time of purchase and reviewed periodically) in illiquid or restricted securities. Certain restricted securities, eligible for resale to qualified institutional investors, are not subject to that limitation. Securities that are illiquid or restricted are marked with the applicable footnote on the Statement of Investments. Information concerning restricted securities is as follows:
UNREALIZED ACQUISITION VALUATION AS OF APPRECIATION SECURITY DATES COST MAY 31, 2007 (DEPRECIATION) - ---------------------------------------------------------------------------------------------------------- Art Advanced Research Technologies, Inc. 6/19/01 $ 7,500,000 $ 595,435 $ (6,904,565) Ceres Group, Inc., $4 Cv., Series C-1 2/6/01-3/21/06 258,188 419,556 161,368 Ceres Group, Inc., Cv., Series C 1/6/99 2,400,000 3,900,000 1,500,000 Ceres Group, Inc., Cv., Series D 3/15/01-3/9/06 2,758,800 2,988,700 229,900 Marshall Edwards, Inc. 5/6/02-11/20/03 6,869,052 5,392,206 (1,476,846) Oxagen Ltd. 12/20/00 2,210,700 18,572 (2,192,128) ------------------------------------------------ $ 21,996,740 $ 13,314,469 $ (8,682,271) ================================================
- -------------------------------------------------------------------------------- 7. SECURITIES LENDING The Fund lends portfolio securities from time to time in order to earn additional income. In return, the Fund receives collateral in the form of securities, letters of credit or cash, against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business each day. If the Fund is undercollateralized at the close of business due to an increase in market value of securities on loan, additional collateral is requested from the borrowing counterparty and is delivered to the Fund on the next business day. Cash collateral may be invested in approved investments and the Fund bears the risk of any loss in value of these investments. The Fund retains a portion of the interest earned from the collateral. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund could experience delays and cost in recovering the securities loaned or in gaining access to the collateral. The Fund continues to receive the economic benefit of interest or dividends paid on the securities loaned in the form of a substitute payment received from the borrower. As of May 31, 2007, the Fund had on loan securities valued at $152,335,648, which are included in the Statement of Assets and Liabilities as "Investments, at value" and, 40 | OPPENHEIMER INTERNATIONAL GROWTH FUND when applicable, as "Receivable for Investments sold." Collateral of $158,280,712 was received for the loans, all of which was received in cash and subsequently invested in approved investments or held as cash. - -------------------------------------------------------------------------------- 8. RECENT ACCOUNTING PRONOUNCEMENTS In June 2006, the Financial Accounting Standards Board ("FASB") issued FASB Interpretation No. 48 ("FIN 48"), ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES. FIN 48 clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements in accordance with FASB Statement No. 109, ACCOUNTING FOR INCOME TAXES. FIN 48 requires the evaluation of tax positions taken in the course of preparing the Fund's tax returns to determine whether it is "more-likely-than-not" that tax positions taken in the Fund's tax return will be ultimately sustained. A tax liability and expense must be recorded in respect of any tax position that, in Management's judgment, will not be fully realized. FIN 48 is effective for fiscal years beginning after December 15, 2006. As of May 31, 2007, the Manager has evaluated the implications of FIN 48 and does not currently anticipate a material impact to the Fund's financial statements. The Manager will continue to monitor the Fund's tax positions prospectively for potential future impacts. In September 2006, the FASB issued Statement of Financial Accounting Standards ("SFAS") No. 157, FAIR VALUE MEASUREMENTS. This standard establishes a single authoritative definition of fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. SFAS No. 157 applies to fair value measurements already required or 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 May 31, 2007, 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. 41 | OPPENHEIMER INTERNATIONAL GROWTH FUND PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES; UPDATES TO STATEMENTS OF INVESTMENTS Unaudited - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which the Fund votes proxies relating to securities ("portfolio proxies") held by the Fund. A description of the Fund's Portfolio Proxy Voting Policies and Procedures is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.525.7048, (ii) on the Fund's website at www.oppenheimerfunds.com, and (iii) on the SEC's website at www.sec.gov. In addition, the Fund is required to file Form N-PX, with its complete proxy voting record for the 12 months ended June 30th, no later than August 31st of each year. The Fund's voting record is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.525.7048, and (ii) in the Form N-PX filing on the SEC's website at www.sec.gov. The Fund files its complete schedule of portfolio holdings with the SEC for the first quarter and the third quarter of each fiscal year on Form N-Q. The Fund's Form N-Q filings are available on the SEC's website at http://www.sec.gov. Those forms may be reviewed and copied at the SEC's Public Reference Room in Washington D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330 42 | OPPENHEIMER INTERNATIONAL GROWTH FUND BOARD APPROVAL OF THE FUND'S INVESTMENT ADVISORY AGREEMENT Unaudited - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Each year, the Board of Trustees (the "Board"), including a majority of the independent Trustees, is required to determine whether to renew the Fund's investment advisory agreement (the "Agreement"). The Investment Company Act of 1940, as amended, requires that the Board request and evaluate, and that the Manager provide, such information as may be reasonably necessary to evaluate the terms of the Agreement. The Board employs an independent consultant to prepare a report that provides information, including comparative information that the Board requests for that purpose. In addition, the Board receives information throughout the year regarding Fund services, fees, expenses and performance. The Manager and the independent consultant provided information to the Board on the following factors: (i) the nature, quality and extent of the Manager's services, (ii) the investment performance of the Fund and the Manager, (iii) the fees and expenses of the Fund, including comparative expense information, (iv) the profitability of the Manager and its affiliates, including an analysis of the cost of providing services by the Manager and its affiliates, (v) the extent to which economies of scale are realized as the Fund grows and whether fee levels reflect these economies of scale for Fund investors and (vi) other benefits to the Manager from its relationship with the Fund. The Board was aware that there are alternatives to retaining the Manager. NATURE AND EXTENT OF SERVICES. The Board considered information about the nature and extent of the services provided to the Fund and information regarding the Manager's key personnel who provide such services. The Manager's duties include providing the Fund with the services of the portfolio manager and the Manager's investment team, who provide research, analysis and other advisory services in regard to the Fund's investments; securities trading services; oversight of third party service providers; monitoring compliance with applicable Fund policies and procedures and adherence to the Fund's investment restrictions. The Manager is responsible for providing certain administrative services to the Fund as well. Those services include providing and supervising all administrative and clerical personnel who are necessary in order to provide effective corporate administration for the Fund; compiling and maintaining records with respect to the Fund's operations; preparing and filing reports required by the Securities and Exchange Commission; preparing periodic reports regarding the operations of the Fund for its shareholders; preparing proxy materials for shareholder meetings; and preparing the registration statements required by Federal and state securities laws for the sale of the Fund's shares. The Manager also provides the Fund with office space, facilities and equipment. QUALITY OF SERVICES. The Board also considered the quality of the services provided and the quality of the Manager's resources that are available to the Fund. The Board took account of the fact that the Manager has had over forty years of experience as an 43 | OPPENHEIMER INTERNATIONAL GROWTH FUND BOARD APPROVAL OF THE FUND'S INVESTMENT ADVISORY AGREEMENT Unaudited / Continued - -------------------------------------------------------------------------------- investment adviser and that its assets under management rank it among the top mutual fund managers in the United States. The Board evaluated the Manager's administrative, accounting, legal and compliance services, and information the Board has received regarding the experience and professional qualifications of the Manager's personnel and the size and functions of its staff. In its evaluation of the quality of the portfolio management services provided, the Board considered the experience of George R. Evans and the Manager's Global investment team and analysts. The Board members also considered their experiences with the Manager and its officers and other personnel through their service on the boards of the Fund and other funds advised by the Manager. The Board considered information regarding the quality of services provided by affiliates of the Manager, which its members have become knowledgeable about in connection with the renewal of the Fund's service agreements. In light of the foregoing, the Board concluded that the Fund benefits from the services provided under the Agreement and from the Manager's experience, reputation, personnel, operations, and resources. INVESTMENT PERFORMANCE OF THE MANAGER AND THE FUND. During the year, the Manager provided information on the investment performance of the Fund and the Manager at each Board meeting, including comparative performance information. The Board also reviewed information, prepared by the Manager and by the independent consultant, comparing the Fund's historical performance to relevant market indices and to the performance of other retail front-end load and no-load international multi-cap growth funds advised by the Manager and by other investment advisers. The Board noted that the Fund's one-year and five-year performance were below its peer group median. However its three-year and ten-year performance were better than its peer group median. MANAGEMENT FEES AND EXPENSES. The Board reviewed the fees paid to the Manager and its affiliates and the other expenses borne by the Fund. The Board also evaluated the comparability of the fees charged and the services provided to the Fund to the fees and services for other clients or accounts advised by the Manager. The independent consultant provided comparative data in regard to the fees and expenses of the Fund, other international multi-cap growth funds, international multi-cap core funds and other funds with comparable asset levels and distribution features. The Board noted that the Fund's contractual and actual management fees and total expenses are lower than its peer group median. ECONOMIES OF SCALE. The Board reviewed the extent to which the Manager may realize economies of scale in managing and supporting the Fund, the extent to which those economies of scale benefit the Fund's shareholders and the current level of Fund assets in relation to the Fund's breakpoint schedule for its management fees. The Board also noted 44 | OPPENHEIMER INTERNATIONAL GROWTH FUND the Fund's breakpoints, which are intended to share economies of scale that may exist as the Fund grows with its shareholders. BENEFITS TO THE MANAGER. The Board considered information regarding the Manager's costs in serving as the Fund's investment adviser, including the costs associated with the personnel and systems necessary to manage the Fund, and information regarding the Manager's profitability from its relationship with the Fund. The Board considered that the Manager must be able to pay and retain experienced professional personnel at competitive rates to provide services to the Fund and that maintaining the financial viability of the Manager is important in order for the Manager to continue to provide significant services to the Fund and its shareholders. In addition to considering the profits realized by the Manager, the Board considered information regarding the direct and indirect benefits the Manager receives as a result of its relationship with the Fund, including compensation paid to the Manager's affiliates for services provided and research provided to the Manager in connection with permissible brokerage arrangements (soft dollar arrangements). CONCLUSIONS. These factors were also considered by the independent Trustees meeting separately from the full Board, assisted by experienced counsel to the Fund and the independent Trustees. Fund counsel is independent of the Manager within the meaning and intent of the Securities and Exchange Commission Rules. Based on its review of the information it received and its evaluations described above, the Board, including a majority of the independent Trustees, concluded that the nature, extent and quality of the services provided to the Fund by the Manager are a benefit to the Fund and in the best interest of the Fund's shareholders and that the amount and structure of the compensation received by the Manager and its affiliates are reasonable in relation to the services provided. Accordingly, the Board elected to continue the Agreement for another year. In arriving at this decision, the Board did not single out any factor or factors as being more important than others, but considered all of the factors together. The Board judged the terms and conditions of the Agreement, including the management fee, in light of all of the surrounding circumstances. 45 | OPPENHEIMER INTERNATIONAL GROWTH 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 05/31/2007, 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 Growth Fund By: /s/ John V. Murphy --------------------------- John V. Murphy Principal Executive Officer Date: 07/12/2007 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ John V. Murphy --------------------------- John V. Murphy Principal Executive Officer Date: 07/12/2007 By: /s/ Brian W. Wixted --------------------------- Brian W. Wixted Principal Financial Officer Date: 07/12/2007 EX-99.CERT 2 rq825_40296cert302.txt RQ825_40296CERT302.TXT Exhibit 99.CERT Section 302 Certifications CERTIFICATIONS I, John V. Murphy, certify that: 1. I have reviewed this report on Form N-CSR of Oppenheimer International Growth 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 financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 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 second fiscal quarter of the period covered by this report 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. Date: 07/12/2007 By: /s/ John V. Murphy --------------------------- John V. Murphy Principal Executive Officer Exhibit 99.CERT Section 302 Certifications CERTIFICATIONS I, Brian W. Wixted, certify that: 1. I have reviewed this report on Form N-CSR of Oppenheimer International Growth 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 financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 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 second fiscal quarter of the period covered by this report 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. Date: 07/12/2007 By: /s/ Brian W. Wixted --------------------------- Brian W. Wixted Principal Financial Officer EX-99.906CERT 3 rq825_40296cert906.txt RQ825_40296CERT906.TXT EX-99.906CERT Section 906 Certifications CERTIFICATION PURSUANT TO 18 U.S.C SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 John V. Murphy, Principal Executive Officer, and Brian W. Wixted, Principal Financial Officer, of Oppenheimer International Growth Fund (the "Registrant"), each certify to the best of his knowledge that: 1. The Registrant's periodic report on Form N-CSR for the period ended 05/31/2007 (the "Form N-CSR") fully complies with the requirements of Section 15(d) of the Securities Exchange Act of 1934, as amended; and 2. The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant. This certification is being furnished to the Commission solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Form N-CSR filed with the Commission. Principal Executive Officer Principal Financial Officer Oppenheimer International Growth Fund Oppenheimer International Growth Fund By: /s/ John V. Murphy By: /s/ Brian W. Wixted --------------------------------- --------------------------------- John V. Murphy Brian W. Wixted Date: 07/12/2007 Date: 07/12/2007 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 811-06105 OPPENHEIMER QUEST INTERNATIONAL VALUE FUND, INC. (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: NOVEMBER 30 Date of reporting period: 05/31/2007 ITEM 1. REPORTS TO STOCKHOLDERS. 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 05/31/2007, 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 Quest International Value Fund, Inc. By: /s/ John V. Murphy --------------------------- John V. Murphy Principal Executive Officer Date: 07/12/2007 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ John V. Murphy --------------------------- John V. Murphy Principal Executive Officer Date: 07/12/2007 By: /s/ Brian W. Wixted --------------------------- Brian W. Wixted Principal Financial Officer Date: 07/12/2007 Exhibit 99.CERT Section 302 Certifications CERTIFICATIONS I, John V. Murphy, certify that: 1. I have reviewed this report on Form N-CSR of Oppenheimer Quest International Value Fund, Inc.; 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 financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 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 second fiscal quarter of the period covered by this report 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. Date: 07/12/2007 By: /s/ John V. Murphy --------------------------- John V. Murphy Principal Executive Officer Exhibit 99.CERT Section 302 Certifications CERTIFICATIONS I, Brian W. Wixted, certify that: 1. I have reviewed this report on Form N-CSR of Oppenheimer Quest International Value Fund, Inc.; 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 financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 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 second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 6. 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. Date: 07/12/2007 By: /s/ Brian W. Wixted --------------------------- Brian W. Wixted Principal Financial Officer EX-99.906CERT Section 906 Certifications CERTIFICATION PURSUANT TO 18 U.S.C SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 John V. Murphy, Principal Executive Officer, and Brian W. Wixted, Principal Financial Officer, of Oppenheimer Quest International Value Fund, Inc. (the "Registrant"), each certify to the best of his knowledge that: 1. The Registrant's periodic report on Form N-CSR for the period ended 05/31/2007 (the "Form N-CSR") fully complies with the requirements of Section 15(d) of the Securities Exchange Act of 1934, as amended; and 2. The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant. This certification is being furnished to the Commission solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Form N-CSR filed with the Commission. Principal Executive Officer Principal Financial Officer Oppenheimer Quest International Value Oppenheimer Quest International Value Fund, Inc. Fund, Inc. By: /s/ John V. Murphy By: /s/ Brian W. Wixted --------------------------------- --------------------------------- John V. Murphy Brian W. Wixted Date: 07/12/2007 Date: 07/12/2007 -----END PRIVACY-ENHANCED MESSAGE-----