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FUND PERFORMANCE DISCUSSION

How has the Fund performed? Below is a discussion by OppenheimerFunds, Inc., of the Fund’s performance during its fiscal year ended April 30, 2010, followed by a graphical comparison of the Fund’s performance to appropriate broad-based market indices

Management’s Discussion of Fund Performance. The Fund’s Class A shares (without sales charge) gained 48.79% during the reporting period, outperforming the MSCI EAFE Index, which gained 34.43%. The Fund also outperformed the MSCI World Index and the MSCI AC (All Country) World excluding the USA Index, which returned 37.02% and 40.38%, respectively, over the same period.

During the reporting period, the Fund’s portfolio consisted of six underlying funds and a cash component. On the equity side, underlying funds included Oppenheimer International Growth Fund, Oppenheimer Quest International Value Fund, Oppenheimer Master International Value Fund, LLC, Oppenheimer International Small Company Fund and Oppenheimer Developing Markets Fund. The Fund invested in one fixed-income fund, Oppenheimer International Bond Fund.

The largest holding over the reporting period was Oppenheimer International Growth Fund’s Class Y shares, which at period end comprised approximately 32% of the Fund’s net assets. The underlying fund returned 39.61% over the reporting period, outperforming the MSCI EAFE Index, which gained 34.43%. The strongest contribution to the underlying fund’s return came from the information technology, industrials and consumer discretionary sectors, while the weakest contributions came from utilities, telecommunication services and energy. No sector contributed negatively to performance in absolute terms.

The Fund’s allocation to international value funds through its holdings in Oppenheimer Quest International Value Fund and Oppenheimer Master International Value Fund, LLC accounted for approximately 33% of the Fund’s net assets at period end. These two underlying funds are similarly managed in style (they have the same portfolio manager) and performance for the two funds was largely similar for the reporting period. Class Y shares of Oppenheimer Quest International Value Fund returned 57.42% and Oppenheimer Master International Value Fund, LLC returned 56.16% during the reporting period, substantially outperforming both the MSCI EAFE Index and the MSCI All Country World excluding the USA Index during the period, which returned 34.43% and 40.38% over the same period, respectively. Consumer discretionary, industrials and financials were the sectors contributing most to performance for both underlying funds, while utilities, health care and telecommunications services contributed the least. No sector generated a negative contribution in absolute terms.

9 | OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND

FUND PERFORMANCE DISCUSSION

Oppenheimer International Small Company Fund’s Class Y shares, which at period end accounted for approximately 14% of the Fund’s net assets, gained 83.48%. Materials and energy stocks generated most of the return for the underlying fund, with a smaller contribution from consumer discretionary holdings. Telecommunication services and health care both had slightly negative contributions to the underlying fund in absolute terms.

Of the underlying equity funds in the Fund’s portfolio, Class Y shares of Oppenheimer Developing Markets Fund represented the smallest allocation at period end, accounting for approximately 11% of the Fund’s net assets. Oppenheimer Developing Markets Fund’s Class Y shares rose 62% during the reporting period, driven primarily by its holdings in consumer staples, financials and information technology stocks. Utilities, health care and industrials stocks contributed the least to performance. The underlying fund’s benchmark, the MSCI Emerging Markets Index, returned 57.55% over the same period.

Oppenheimer International Bond Fund, which consisted of approximately 9% of the Fund’s net assets at period end, returned 18.21% over the period, beating the Citigroup Non-U.S. Dollar World Government Bond Index, which returned 6.82%. The underlying fund was underweight developed markets during the reporting period and overweight emerging local and emerging U.S. Dollar holdings, factors which aided in the underlying fund’s relative outperformance.

During the reporting period, we did not make significant changes to the Fund’s portfolio or the underlying funds’ target allocations.

Comparing the Fund’s Performance to the Market. The graphs that follow show the performance of a hypothetical $10,000 investment in each class of shares of the Fund held until April 30, 2010. In the case of all classes of shares, performance is measured from the inception of the class on September 27, 2005. The Fund’s performance reflects the deduction of the maximum initial sales charge on Class A shares, the applicable contingent deferred sales charge on Class B, Class C and Class N shares, and reinvestments of all dividends and capital gains distributions. Past performance does not guarantee future results.

The Fund’s performance is compared to the performance of the Morgan Stanley Capital International All Country World ex USA Index (MSCI AC World ex USA Index), the MSCI EAFE (Europe, Australasia, Far East) Index and the MSCI World Index. The MSCI AC World ex USA Index is a market capitalization-weighted index designed to measure equity market performance in certain global developed and emerging markets, excluding the United States.

10 | OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND

Class B Shares

Comparison of Change in Value of $10,000 Hypothetical Investments in:

Oppenheimer International Diversified Fund (Class B) Morgan Stanley Capital International (MSCI) All Country World ex USA Index MSCI EAFE (Europe, Australasia, Far East) Index MSCI World Index $17,000 16,000 15,000 14,000 13,000 $12,310 ( ) 12,000 $10,000 $11,961 ( ) 11,000 $10,803 ( ) 10,000 $10,736 ( ) 9,000 8,000 7,000 0 9/27/05 4/30/06 4/30/07 4/30/08 4/30/09 4/30/10 Average Annual Total Returns of Class B Shares with Sales Charge of the Fund at 4/30/10 1-Year 42.52% Since Inception (9/27/05) 4.63%

The performance data quoted represents past performance, which does not guarantee future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, visit us at www.oppenheimerfunds.com, or call us at 1.800.525.7048. Fund returns include changes in share price, reinvested distributions, and the applicable sales charge: for Class A shares, the current maximum initial sales charge of 5.75%; for Class B shares, the contingent deferred sales charge of 5% (1-year) and 2% (since inception); and for Class C and Class N shares, the contingent deferred sales charge of 1% for the 1-year period. There is no sales charge for Class Y shares. See page 17 for further information.

13 | OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND

Class N Shares

Comparison of Change in Value of $10,000 Hypothetical Investments in:

Morgan Stanley Capital International (MSCI) All Country World ex USA Index MSCI EAFE (Europe, Australasia, Far East) Index MSCI World Index

$17,000 16,000 15,000 14,00013,000 $12,835 ( )12,000 $10,000 $11,961 ( )11,000 $10,803 ( )10,000 $10,736 ( )9,000 8,000 7,00009/27/05 4/30/06 4/30/07 4/30/08 4/30/09 4/30/10Average Annual Total Returns of Class N Shares with Sales Charge of the Fund at 4/30/101-Year 47.39% Since Inception (9/27/05) 5.59%

15 | OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND

FUND PERFORMANCE DISCUSSION

Class Y Shares

Comparison of Change in Value of $10,000 Hypothetical Investments in:

Oppenheimer International Diversified Fund (Class Y)Morgan Stanley Capital International (MSCI) All Country World ex USA Index MSCI EAFE (Europe, Australasia, Far East) Index MSCI World Index$17,000 16,000 15,000 14,000 $13,251 ( )13,000 $11,961 ( )12,000 $10,000 $10,803 ( )11,000 $10,736 ( )10,000 9,000 8,000 7,00009/27/05 4/30/06 4/30/07 4/30/08 4/30/09 4/30/10Average Annual Total Returns of Class Y Shares of the Fund at 4/30/101-Year 49.32% Since Inception (9/27/05) 6.32%

16 | OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND

NOTES

Total returns and the ending account values in the graphs include changes in share price and reinvestment of dividends and capital gains distributions in a hypothetical investment for the periods shown. 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, expenses and other charges carefully before investing. The Fund’s prospectus and, if available, the Fund’s summary prospectus contain 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 and, if available, the summary 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 offered on 9/27/05. Unless otherwise noted, Class A returns include the current maximum initial sales charge of 5.75%.

Class B shares of the Fund were first publicly offered on 9/27/05. Unless otherwise noted, Class B returns include the applicable contingent deferred sales charge of 5% (1-year) and 2% (since inception). 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 9/27/05. 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 9/27/05. 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 one-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 9/27/05. Class Y shares are offered only to fee-based clients of dealers that have a special agreement with the Distributor, to certain institutional investors under a special agreement with the Distributor, and to present or former officers, directors, trustees or employees (and their eligible family members) of the Fund, the Manager, its affiliates, its parent company and the subsidiaries of its parent company, and retirement plans established for the benefit of such individuals.

An explanation of the calculation of performance is in the Fund’s Statement of Additional Information.

17 | OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND

FUND EXPENSES

Fund Expenses. As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments, contingent deferred sales charges on redemptions; and redemption fees (if applicable); and (2) ongoing costs, including 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 April 30, 2010.

Actual Expenses. The first section of the table provides information about actual account values and actual expenses. You may use the information in this section for the class of shares you hold, together with the amount you invested, to estimate the expense that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600.00 account value divided by $1,000.00 = 8.60), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes. The second section of the table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio for each class of shares, and an assumed rate of return of 5% per year for each class before expenses, which is not the actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example for the class of shares you hold with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front-end or contingent deferred sales charges (loads), or a $12.00 fee imposed annually on accounts valued at less than $500.00 (subject to exceptions described in the Statement of Additional Information). Therefore, the “hypothetical” section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

18 | OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND


	Beginning		Ending		Expenses
	Account		Account		Paid During
	Value		Value		6 Months Ended
	November 1, 2009		April 30, 2010		April 30, 2010

Actual
Class A	$	1,000.00	$	1,092.50	$	2.75
Class B		1,000.00		1,088.10		7.43
Class C		1,000.00		1,089.80		6.70
Class N		1,000.00		1,091.50		4.42
Class Y		1,000.00		1,095.20		0.88

Hypothetical
(5% return before expenses)
Class A		1,000.00		1,022.17		2.66
Class B		1,000.00		1,017.70		7.18
Class C		1,000.00		1,018.40		6.48
Class N		1,000.00		1,020.58		4.27
Class Y		1,000.00		1,023.95		0.85

Expenses are equal to the Fund’s annualized expense ratio for that class, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). Those annualized expense ratios, excluding all underlying fund expenses, based on the 6-month period ended April 30, 2010 are as follows:


Class	Expense Ratios

Class A		0.53	%
Class B		1.43
Class C		1.29
Class N		0.85
Class Y		0.17

The expense ratios reflect voluntary waivers or reimbursements of expenses by the Fund’s Transfer Agent. Some of these undertakings may be modified or terminated at any time; some may not be modified or terminated until after one year from the date of the current prospectus, as indicated therein. The “Financial Highlights” tables in the Fund’s financial statements, included in this report, also show the gross expense ratios, without such waivers or reimbursements and reduction to custodian expenses, if applicable.

19 | OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND

STATEMENT OF INVESTMENTS April 30, 2010


	Shares			Value

Investment Companies—99.8%¹
Fixed Income Fund—9.2%
Oppenheimer International Bond Fund, Cl. Y		22,712,424		$	146,268,007
Global Equity Funds—90.2%
Oppenheimer Developing Markets Fund, Cl. Y		5,763,629			170,833,968
Oppenheimer International Growth Fund, Cl. Y		20,273,488			508,459,071
Oppenheimer International Small Company Fund, Cl. Y		10,619,542			221,205,059
Oppenheimer Master International Value Fund, LLC		31,990,143			291,682,613
Oppenheimer Quest International Value Fund, Cl. Y		15,070,087			236,751,059

					1,428,931,770
Money Market Fund—0.4%
Oppenheimer Institutional Money Market Fund, Cl. E, 0.18%^1,2		5,818,409			5,818,409
Total Investments, at Value (Cost $1,415,858,064)		99.8	%		1,581,018,186
Other Assets Net of Liabilities		0.2			3,751,236

Net Assets		100.0	%	$	1,584,769,422

Footnotes to Statement of Investments


1.		Is or was an affiliate, as defined in the Investment Company Act of 1940, at or during the period ended April 30, 2010, by virtue of the Fund owning at least 5% of the voting securities of the issuer or as a result of the Fund and the issuer having the same investment adviser. Transactions during the period in which the issuer was an affiliate are as follows:


	Shares		Gross		Gross		Shares
	April 30, 2009		Additions		Reductions		April 30, 2010

Oppenheimer Developing Markets Fund, Cl. Y		5,210,593		1,141,164		588,128		5,763,629
Oppenheimer Institutional Money Market Fund, Cl. E		1,058,716		114,005,134		109,245,441		5,818,409
Oppenheimer International Bond Fund, Cl. Y		23,261,575		4,530,906		5,080,057		22,712,424
Oppenheimer International Growth Fund, Cl. Y		15,834,840		4,759,216		320,568		20,273,488
Oppenheimer International Small Company Fund, Cl. Y		9,546,725		2,149,916		1,077,099		10,619,542
Oppenheimer Master International Value Fund, LLC		17,121,876		17,219,040		2,350,773		31,990,143
Oppenheimer Quest International Value Fund, Cl. Y		17,014,960		774,552		2,719,425		15,070,087


						Realized
	Value		Income			Gain (Loss)

Oppenheimer Developing Markets Fund, Cl. Y	$	170,833,968	$	936,966		$	(10,920,047	)
Oppenheimer Institutional Money Market Fund, Cl. E		5,818,409		8,305			—
Oppenheimer International Bond Fund, Cl. Y		146,268,007		5,859,964			(259,133	)
Oppenheimer International Growth Fund, Cl. Y		508,459,071		4,701,099			(2,656,734	)
Oppenheimer International Small Company Fund, Cl. Y		221,205,059		7,250,661			(13,175,832	)
Oppenheimer Master International Value Fund, LLC		291,682,613		4,677,898	^a		17,205,232	^a
Oppenheimer Quest International Value Fund, Cl. Y		236,751,059		11,478,854			8,797,771

	$	1,581,018,186	$	34,913,747		$	(1,008,743	)

a.		Represents the amount allocated to the Fund from Oppenheimer Master International Value Fund, LLC.

2.		Rate shown is the 7-day yield as of April 30, 2010.

F1 | OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND

STATEMENT OF INVESTMENTS Continued

Footnotes to Statement of Investments Continued

Valuation Inputs

Various data inputs are used in determining the value of each of the Fund’s investments as of the reporting period end. These data inputs are categorized in the following hierarchy under applicable financial accounting standards:

	1)		Level 1—unadjusted quoted prices in active markets for identical assets or liabilities (including securities actively traded on a securities exchange)

	2)		Level 2—inputs other than unadjusted quoted prices that are observable for the asset (such as unadjusted quoted prices for similar assets and market corroborated inputs such as interest rates, prepayment speeds, credit risks, etc.)

	3)		Level 3—significant unobservable inputs (including the Manager’s own judgments about assumptions that market participants would use in pricing the asset).

The table below categorizes amounts that are included in the Fund’s Statement of Assets and Liabilities as of April 30, 2010 based on valuation input level:


			Level 2—
	Level 1—		Other		Level 3—
	Unadjusted		Significant		Significant
	Quoted		Observable		Unobservable
	Prices		Inputs		Inputs		Value

Assets Table
Investments, at Value:
Investment Companies	$	1,581,018,186	$	—	$	—	$	1,581,018,186

Total Assets	$	1,581,018,186	$	—	$	—	$	1,581,018,186

Currency contracts and forwards, if any, are reported at their unrealized appreciation/depreciation at measurement date, which represents the change in the contract’s value from trade date. Futures, if any, are reported at their variation margin at measurement date, which represents the amount due to/from the Fund at that date. All additional assets and liabilities included in the above table are reported at their market value at measurement date.

See the accompanying Notes for further discussion of the methods used in determining value of the Fund’s investments, and a summary of changes to the valuation methodologies, if any, during the reporting period.

See accompanying Notes to Financial Statements.

F2 | OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND

STATEMENT OF ASSETS AND LIABILITIES April 30, 2010


Assets
Investments, at value—see accompanying statement of investments— affiliated companies (cost $1,415,858,064)	$	1,581,018,186
Cash		330,643
Receivables and other assets:
Shares of beneficial interest sold		9,138,380
Dividends		543,233
Investments sold		360,070
Other		48,761

Total assets		1,591,439,273

Liabilities
Payables and other liabilities:
Shares of beneficial interest redeemed		3,760,879
Investments purchased		2,056,036
Distribution and service plan fees		307,259
Transfer and shareholder servicing agent fees		274,405
Shareholder communications		134,793
Trustees’ compensation		108,316
Other		28,163

Total liabilities		6,669,851

Net Assets	$	1,584,769,422


Composition of Net Assets
Par value of shares of beneficial interest	$	144,433
Additional paid-in capital		1,970,851,806
Accumulated net investment income		21,887,634
Accumulated net realized loss on investments		(573,274,573	)
Net unrealized appreciation on investments		165,160,122

Net Assets	$	1,584,769,422

F3 | OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND

STATEMENT OF ASSETS AND LIABILITIES Continued


Net Asset Value Per Share
Class A Shares:
Net asset value and redemption price per share (based on net assets of $910,247,744 and 82,418,046 shares of beneficial interest outstanding)	$	11.04
Maximum offering price per share (net asset value plus sales charge of 5.75% of offering price)	$	11.71

Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $120,338,035 and 11,138,219 shares of beneficial interest outstanding)	$	10.80

Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $383,642,539 and 35,433,323 shares of beneficial interest outstanding)	$	10.83

Class N Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $91,747,832 and 8,383,579 shares of beneficial interest outstanding)	$	10.94

Class Y Shares:
Net asset value, redemption price and offering price per share (based on net assets of $78,793,272 and 7,059,658 shares of beneficial interest outstanding)	$	11.16

See accompanying Notes to Financial Statements.

F4 | OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND

STATEMENT OF OPERATIONS For the Year Ended April 30, 2010


Allocation of Income and Expenses from master fund¹
Net investment income allocated from Oppenheimer Master International Value Fund, LLC:
Dividends (net of foreign withholding taxes of $937,255)	$	4,629,265
Interest		48,633
Expenses²		(1,728,103	)

Net investment income from Oppenheimer Master International Value Fund, LLC		2,949,795

Investment Income
Dividends from affiliated companies		30,235,849
Interest		771
Other income		22,830

Total investment income		30,259,450

Expenses
Distribution and service plan fees:
Class A		1,843,796
Class B		1,082,853
Class C		3,298,907
Class N		353,386
Transfer and shareholder servicing agent fees:
Class A		1,988,299
Class B		544,451
Class C		908,268
Class N		256,751
Class Y		61,435
Shareholder communications:
Class A		186,423
Class B		56,466
Class C		75,614
Class N		10,602
Class Y		7,942
Trustees’ compensation		34,188
Custodian fees and expenses		12,660
Other		81,215

Total expenses		10,803,256
Less waivers and reimbursements of expenses		(198,978	)

Net expenses		10,604,278

Net Investment Income		22,604,967


1.		The Fund invests in an affiliated mutual fund that expects to be treated as a partnership for tax purposes. See Note 1 of accompanying Notes.

2.		Net of expense waivers and/or reimbursements of $47,598.

F5 | OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND

STATEMENTS OF CHANGES IN NET ASSETS


Year Ended April 30,	2010			2009

Operations
Net investment income	$	22,604,967		$	22,257,049
Net realized loss		(45,809	)		(565,848,482	)
Net change in unrealized appreciation/depreciation		427,014,573			(206,073,063	)

Net increase (decrease) in net assets resulting from operations		449,573,731			(749,664,496	)

Dividends and/or Distributions to Shareholders
Dividends from net investment income:
Class A		(16,284,213	)		—
Class B		(1,557,142	)		—
Class C		(4,996,519	)		—
Class N		(1,441,158	)		—
Class Y		(1,216,072	)		—

		(25,495,104	)		—

Distributions from net realized gain:
Class A		—			(32,011,184	)
Class B		—			(5,044,699	)
Class C		—			(14,862,607	)
Class N		—			(2,652,924	)
Class Y		—			(1,221,054	)

		—			(55,792,468	)

Beneficial Interest Transactions
Net increase (decrease) in net assets resulting from beneficial interest transactions:
Class A		153,641,174			(160,475,119	)
Class B		1,742,849			(21,989,122	)
Class C		32,106,903			(71,142,438	)
Class N		22,270,475			9,128,280
Class Y		44,589,457			9,486,958

		254,350,858			(234,991,441	)

Net Assets
Total increase (decrease)		678,429,485			(1,040,448,405	)
Beginning of period		906,339,937			1,946,788,342

End of period (including accumulated net investment income of $21,887,634 and $23,814,414, respectively)	$	1,584,769,422		$	906,339,937

See accompanying Notes to Financial Statements.

F7 | OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND

FINANCIAL HIGHLIGHTS


Class A Year Ended April 30,	2010			2009			2008			2007			2006¹

Per Share Operating Data
Net asset value, beginning of period	$	7.57		$	12.86		$	13.74		$	11.81		$	10.00

Income (loss) from investment operations:
Net investment income²		.20			.19			.30			.32			.14
Net realized and unrealized gain (loss)		3.49			(5.05	)		(.61	)		1.90			1.91

Total from investment operations		3.69			(4.86	)		(.31	)		2.22			2.05

Dividends and/or distributions to shareholders:
Dividends from net investment income		(.22	)		—			(.44	)		(.28	)		(.24	)
Distributions from net realized gain		—			(.43	)		(.13	)		(.01	)		—

Total dividends and/or distributions to shareholders		(.22	)		(.43	)		(.57	)		(.29	)		(.24	)

Net asset value, end of period	$	11.04		$	7.57		$	12.86		$	13.74		$	11.81


Total Return, at Net Asset Value³		48.79	%		(37.65	)%		(2.50	)%		19.05	%		20.81	%

Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	910,248		$	514,535		$	1,142,139		$	695,478		$	182,910

Average net assets (in thousands)	$	744,582		$	738,073		$	1,004,386		$	397,871		$	56,852

Ratios to average net assets:⁴
Net investment income		2.02	% ⁵		2.03	% ⁵		2.21	%⁵		2.60	%		2.10	%
Total expenses⁶		0.68	% ⁵		0.60	% ⁵		0.43	%⁵		0.43	%		0.53	%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		0.68	% ⁵		0.57	% ⁵		0.39	%⁵		0.35	%		0.46	%

Portfolio turnover rate		9	%		34	%		6	%		1	%		0	%⁷


1.		For the period from September 27, 2005 (commencement of operations) to April 30, 2006.

2.		Per share amounts calculated based on the average shares outstanding during the period.

3.		Assumes an initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

4.		Annualized for periods less than one full year.

5.		Includes the Fund’s share of the allocated expenses and/or net investment income from Oppenheimer Master International Value Fund, LLC.

6.		Total expenses including indirect expenses from affiliated funds were as follows:


Year Ended April 30, 2010	1.40	%
Year Ended April 30, 2009	1.42	%
Year Ended April 30, 2008	1.23	%
Year Ended April 30, 2007	1.17	%
Period Ended April 30, 2006	1.43	%

Less than 0.5%.

See accompanying Notes to Financial Statements.

F8 | OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND


Class B Year Ended April 30,	2010			2009			2008			2007			2006¹

Per Share Operating Data
Net asset value, beginning of period	$	7.42		$	12.73		$	13.63		$	11.76		$	10.00

Income (loss) from investment operations:
Net investment income²		.11			.11			.17			.21			.09
Net realized and unrealized gain (loss)		3.41			(4.99	)		(.59	)		1.89			1.90

Total from investment operations		3.52			(4.88	)		(.42	)		2.10			1.99

Dividends and/or distributions to shareholders:
Dividends from net investment income		(.14	)		—			(.35	)		(.22	)		(.23	)
Distributions from net realized gain		—			(.43	)		(.13	)		(.01	)		—

Total dividends and/or distributions to shareholders		(.14	)		(.43	)		(.48	)		(.23	)		(.23	)

Net asset value, end of period	$	10.80		$	7.42		$	12.73		$	13.63		$	11.76


Total Return, at Net Asset Value³		47.52	%		(38.19	)%		(3.32	)%		18.06	%		20.20	%

Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	120,338		$	81,764		$	174,717		$	118,894		$	33,843

Average net assets (in thousands)	$	108,398		$	112,481		$	156,641		$	69,567		$	10,159

Ratios to average net assets:⁴
Net investment income		1.13	%⁵		1.18	%⁵		1.24	%⁵		1.74	%		1.34	%
Total expenses⁶		1.70	%⁵		1.56	%⁵		1.29	%⁵		1.30	%		1.42	%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		1.54	%⁵		1.43	%⁵		1.26	%⁵		1.22	%		1.35	%

Portfolio turnover rate		9	%		34	%		6	%		1	%		0	%⁷


1.		For the period from September 27, 2005 (commencement of operations) to April 30, 2006.

2.		Per share amounts calculated based on the average shares outstanding during the period.

3.		Assumes an initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

4.		Annualized for periods less than one full year.

5.		Includes the Fund’s share of the allocated expenses and/or net investment income from Oppenheimer Master International Value Fund, LLC.

6.		Total expenses including indirect expenses from affiliated funds were as follows:


Year Ended April 30, 2010	2.42	%
Year Ended April 30, 2009	2.38	%
Year Ended April 30, 2008	2.09	%
Year Ended April 30, 2007	2.04	%
Period Ended April 30, 2006	2.32	%


7.		Less than 0.5%.

See accompanying Notes to Financial Statements.

F9 | OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND

FINANCIAL HIGHLIGHTS Continued


Class C Year Ended April 30,	2010			2009			2008			2007			2006¹

Per Share Operating Data
Net asset value, beginning of period	$	7.44		$	12.74		$	13.64		$	11.77		$	10.00

Income (loss) from investment operations:
Net investment income²		.12			.11			.20			.22			.04
Net realized and unrealized gain (loss)		3.42			(4.98	)		(.60	)		1.89			1.96

Total from investment operations		3.54			(4.87	)		(.40	)		2.11			2.00

Dividends and/or distributions to shareholders:
Dividends from net investment income		(.15	)		—			(.37	)		(.23	)		(.23	)
Distributions from net realized gain		—			(.43	)		(.13	)		(.01	)		—

Total dividends and/or distributions to shareholders		(.15	)		(.43	)		(.50	)		(.24	)		(.23	)

Net asset value, end of period	$	10.83		$	7.44		$	12.74		$	13.64		$	11.77


Total Return, at Net Asset Value³		47.65	%		(38.09	)%		(3.20	)%		18.14	%		20.31	%

Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	383,642		$	240,961		$	531,228		$	327,749		$	84,529

Average net assets (in thousands)	$	330,282		$	343,343		$	459,758		$	184,470		$	24,928

Ratios to average net assets:⁴
Net investment income		1.22	%⁵		1.25	%⁵		1.46	%⁵		1.81	%		0.67	%
Total expenses⁶		1.44	%⁵		1.35	%⁵		1.18	%⁵		1.19	%		1.28	%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		1.44	%⁵		1.33	%⁵		1.15	%⁵		1.12	%		1.21	%

Portfolio turnover rate		9	%		34	%		6	%		1	%		0	%⁷


1.		For the period from September 27, 2005 (commencement of operations) to April 30, 2006.

2.		Per share amounts calculated based on the average shares outstanding during the period.

3.		Assumes an initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

4.		Annualized for periods less than one full year.

5.		Includes the Fund’s share of the allocated expenses and/or net investment income from Oppenheimer Master International Value Fund, LLC.

6.		Total expenses including indirect expenses from affiliated funds were as follows:


Year Ended April 30, 2010	2.16	%
Year Ended April 30, 2009	2.17	%
Year Ended April 30, 2008	1.98	%
Year Ended April 30, 2007	1.93	%
Period Ended April 30, 2006	2.18	%


7.		Less than 0.5%.

See accompanying Notes to Financial Statements.

F10 | OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND


Class N Year Ended April 30,	2010			2009			2008			2007			2006¹

Per Share Operating Data
Net asset value, beginning of period	$	7.51		$	12.81		$	13.70		$	11.80		$	10.00

Income (loss) from investment operations:
Net investment income²		.17			.17			.25			.29			.10
Net realized and unrealized gain (loss)		3.46			(5.04	)		(.60	)		1.89			1.93

Total from investment operations		3.63			(4.87	)		(.35	)		2.18			2.03

Dividends and/or distributions to shareholders:
Dividends from net investment income		(.20	)		—			(.41	)		(.27	)		(.23	)
Distributions from net realized gain		—			(.43	)		(.13	)		(.01	)		—

Total dividends and/or distributions to shareholders		(.20	)		(.43	)		(.54	)		(.28	)		(.23	)

Net asset value, end of period	$	10.94		$	7.51		$	12.81		$	13.70		$	11.80


Total Return, at Net Asset Value³		48.39	%		(37.87	)%		(2.79	)%		18.70	%		20.66	%

Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	91,748		$	47,209		$	70,481		$	35,342		$	5,989

Average net assets (in thousands)	$	71,007		$	54,203		$	53,978		$	17,382		$	1,477

Ratios to average net assets:⁴
Net investment income		1.72	%⁵		1.89	%⁵		1.82	%⁵		2.32	%		1.61	%
Total expenses⁶		1.02	%⁵		0.97	%⁵		0.75	%⁵		0.74	%		0.79	%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		0.98	%⁵		0.88	%⁵		0.71	%⁵		0.67	%		0.72	%

Portfolio turnover rate		9	%		34	%		6	%		1	%		0	%⁷


1.		For the period from September 27, 2005 (commencement of operations) to April 30, 2006.

2.		Per share amounts calculated based on the average shares outstanding during the period.

3.		Assumes an initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

4.		Annualized for periods less than one full year.

5.		Includes the Fund’s share of the allocated expenses and/or net investment income from Oppenheimer Master International Value Fund, LLC.

6.		Total expenses including indirect expenses from affiliated funds were as follows:


Year Ended April 30, 2010	1.74	%
Year Ended April 30, 2009	1.79	%
Year Ended April 30, 2008	1.55	%
Year Ended April 30, 2007	1.48	%
Period Ended April 30, 2006	1.69	%


7.		Less than 0.5%.

See accompanying Notes to Financial Statements.

F11 | OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND

FINANCIAL HIGHLIGHTS Continued


Class Y Year Ended April 30,	2010			2009			2008			2007			2006¹

Per Share Operating Data
Net asset value, beginning of period	$	7.65		$	12.93		$	13.80		$	11.84		$	10.00

Income (loss) from investment operations:
Net investment income²		.25			.24			.37			.32			.09
Net realized and unrealized gain (loss)		3.51			(5.09	)		(.63	)		1.96			1.99

Total from investment operations		3.76			(4.85	)		(.26	)		2.28			2.08

Dividends and/or distributions to shareholders:
Dividends from net investment income		(.25	)		—			(.48	)		(.31	)		(.24	)
Distributions from net realized gain		—			(.43	)		(.13	)		(.01	)		—

Total dividends and/or distributions to shareholders		(.25	)		(.43	)		(.61	)		(.32	)		(.24	)

Net asset value, end of period	$	11.16		$	7.65		$	12.93		$	13.80		$	11.84


Total Return, at Net Asset Value³		49.32	%		(37.36	)%		(2.17	)%		19.51	%		21.16	%

Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	78,793		$	21,871		$	28,223		$	4,881		$	1,405

Average net assets (in thousands)	$	46,070		$	24,956		$	16,727		$	2,254		$	469

Ratios to average net assets:⁴
Net investment income		2.41	%⁵		2.65	%⁵		2.72	%⁵		2.62	%		1.41	%
Total expenses⁶		0.29	%⁵		0.22	%⁵		0.10	%⁵		0.02	%		0.08	%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		0.29	%⁵		0.21	%⁵		0.07	%⁵		(0.05	)%⁷		0.01	%

Portfolio turnover rate		9	%		34	%		6	%		1	%		0	%⁸


1.		For the period from September 27, 2005 (commencement of operations) to April 30, 2006.

2.		Per share amounts calculated based on the average shares outstanding during the period.

3.		Assumes an initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Sales charges are not reflected in the total returns. Total returns are not annualized for periods less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

4.		Annualized for periods less than one full year.

5.		Includes the Fund’s share of the allocated expenses and/or net investment income from Oppenheimer Master International Value Fund, LLC.

6.		Total expenses including indirect expenses from affiliated funds were as follows:


Year Ended April 30, 2010	1.01	%
Year Ended April 30, 2009	1.04	%
Year Ended April 30, 2008	0.90	%
Year Ended April 30, 2007	0.76	%
Period Ended April 30, 2006	0.98	%


7.		The amount of indirect expenses reimbursed for the class, including certain management fees and all distribution related service plan fees incurred indirectly, exceeded the amount of direct expenses it incurred.

8.		Less than 0.5%.

See accompanying Notes to Financial Statements.

F12 | OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND

NOTES TO FINANCIAL STATEMENTS

1. Significant Accounting Policies

Oppenheimer International Diversified 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 high total return through both capital appreciation and income. The Fund is a special type of mutual fund known as a “fund of funds” because it invests in other mutual funds (the “Underlying Funds”). The Fund’s investment adviser is OppenheimerFunds, Inc. (the “Manager”).

The Fund offers Class A, Class B, Class C, Class N and Class Y shares. Class A shares are sold at their offering price, which is normally net asset value plus a front-end sales charge. Class B, Class C and Class N shares are sold without a front-end sales charge but may be subject to a contingent deferred sales charge (“CDSC”). Class N shares are sold only through retirement plans. Retirement plans that offer Class N shares may impose charges on those accounts. Class Y shares are sold to certain institutional investors without either a front-end sales charge or a CDSC, however, the institutional investor may impose charges on those accounts. All classes of shares have identical rights and voting privileges with respect to the Fund in general and exclusive voting rights on matters that affect that class alone. Earnings, net assets and net asset value per share may differ due to each class having its own expenses, such as transfer and shareholder servicing agent fees and shareholder communications, directly attributable to that class. Class A, B, C and N have separate distribution and/or service plans. No such plan has been adopted for Class Y shares. Class B shares will automatically convert to Class A shares 72 months after the date of purchase.

The following is a summary of significant accounting policies consistently followed by the Fund.

Securities Valuation. The Fund calculates the net asset value of its shares based upon the net asset value of the applicable Underlying Fund. For each Underlying Fund, the net asset value per share for a class of shares is determined as of the close of the New York Stock Exchange (the “Exchange”), normally 4:00 P.M. Eastern time, on each day the Exchange is open for trading by dividing the value of the Underlying Fund’s net assets attributable to that class by the number of outstanding shares of that class on that day.

To determine their net asset values, the Underlying Funds’ assets are valued primarily on the basis of current market quotations. In the absence of a readily available unadjusted quoted market price, including for assets whose values have been materially affected by what the Manager identifies as a significant event occurring before the Underlying Fund’s assets are valued but after the close of their respective exchanges, the Manager, acting through its internal valuation committee, in good faith determines the fair valuation of that Underlying Fund’s assets using consistently applied procedures under the supervision of the Board of Trustees. The methodologies used for valuing assets are not necessarily an indication of the risks associated with investing in those Underlying Funds.

F13 | OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND

NOTES TO FINANCIAL STATEMENTS Continued

1. Significant Accounting Policies Continued

Each investment asset or liability of the Fund is assigned a level at measurement date based on the significance and source of the inputs to its valuation. Unadjusted quoted prices in active markets for identical assets or liabilities are classified as “Level 1,” inputs other than unadjusted quoted prices for an asset that are observable are classified as “Level 2” and significant unobservable inputs, including the Manager’s judgment about the assumptions that a market participant would use in pricing an asset or liability, are classified as “Level 3.” The inputs used for valuing assets and liabilities are not necessarily an indication of the risks associated with investing in those assets or liabilities. A table summarizing the Fund’s investments under these levels of classification is included following the Statement of Investments.

The Fund classifies each of its investments in the Underlying Funds as Level 1, without consideration as to the classification level of the specific investments held by the Underlying Funds.

There have been no significant changes to the fair valuation methodologies of the Fund during the period.

Risks of Investing in the Underlying Funds. Each of the Underlying Funds in which the Fund invests has its own investment risks, and those risks can affect the value of the Fund’s investments and therefore the value of the Fund’s shares. To the extent that the Fund invests more of its assets in one Underlying Fund than in another, the Fund will have greater exposure to the risks of that Underlying Fund.

Investment in Oppenheimer Institutional Money Market Fund. The Fund is permitted to invest daily available cash balances in an affiliated money market fund. The Fund may invest the available cash in Class E shares of Oppenheimer Institutional Money Market Fund (“IMMF”) to seek current income while preserving liquidity. IMMF is a registered open-end management investment company, regulated as a money market fund under the Investment Company Act of 1940, as amended. The Manager is also the investment adviser of IMMF. When applicable, the Fund’s investment in IMMF is included in the Statement of Investments. As a shareholder, the Fund is subject to its proportional share of IMMF’s Class E expenses, including its management fee.

Investment in Oppenheimer master fund. The Fund is permitted to invest in entities sponsored and/or advised by the Manager or an affiliate. Certain of these entities in which the Fund invests are mutual funds registered under the Investment Company Act of 1940 that expect to be treated as partnerships for tax purposes, specifically Oppenheimer Master International Value Fund, LLC (the “master fund”). The master fund has its own investment risks, and those risks can affect the value of the Fund’s investments and therefore the value of the Fund’s shares. To the extent that the Fund invests more of its assets in one master fund than in another, the Fund will have greater exposure to the risks of that master fund.

F14 | OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND

The investment objective of the master fund is to seek long-term capital appreciation by investing in common stocks of foreign companies that the Manager believes are undervalued. The Fund’s investment in the master fund is included in the Statement of Investments. The Fund recognizes income and gain (loss) on its investment in the master fund according to its allocated pro-rata share, based on its relative proportion of total outstanding master fund shares held, of the total net income earned and the net gain (loss) realized on investments sold by the master fund. As a shareholder, the Fund is subject to its proportional share of the master fund’s expenses, including its management fee.

Allocation of Income, Expenses, Gains and Losses. Income, expenses (other than those attributable to a specific class), gains and losses are allocated on a daily basis to each class of shares based upon the relative proportion of net assets represented by such class. Operating expenses directly attributable to a specific class are charged against the operations of that class.

Federal Taxes. The Fund intends to comply with provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its investment company taxable income, including any net realized gain on investments not offset by capital loss carryforwards, if any, to shareholders. Therefore, no federal income or excise tax provision is required. The Fund files income tax returns in U.S. federal and applicable state jurisdictions. The statute of limitations on the Fund’s tax return filings generally remain open for the three preceding fiscal reporting period ends.

The tax components of capital shown in the following table represent distribution requirements the Fund must satisfy under the income tax regulations, losses the Fund may be able to offset against income and gains realized in future years and unrealized appreciation or depreciation of securities and other investments for federal income tax purposes.

Net Unrealized

Appreciation

Based on Cost of

Securities and

Undistributed

Accumulated

Other Investments

Net Investment

Long-Term

Loss

for Federal Income

Income

Gain

Carryforward^1,2,3

Tax Purposes

$33,386,266

—

464,781,073

53,547,950


1.		As of April 30, 2010, the Fund had $464,781,073 of net capital loss carryforwards available to offset future realized capital gains, if any, and thereby reduce future taxable gain distributions. As of April 30, 2010, details of the capital loss carryforwards were as follows:


Expiring

2017	$	149,008,652
2018		315,772,421

Total	$	464,781,073


2.		During the fiscal year ended April 30, 2010, the Fund did not utilize any capital loss carryforward.

3.		During the fiscal year ended April 30, 2009, the Fund did not utilize any capital loss carryforward.

F15 | OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND

NOTES TO FINANCIAL STATEMENTS Continued

1. Significant Accounting Policies Continued

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.

Accordingly, the following amounts have been reclassified for April 30, 2010. Net assets of the Fund were unaffected by the reclassifications.


Increase to	Increase to
Accumulated	Accumulated
Net Investment	Net Realized Loss
Income	on Investments

$963,357	$	963,357

The tax character of distributions paid during the years ended April 30, 2010 and April 30, 2009 was as follows:


	Year Ended		Year Ended
	April 30, 2010		April 30, 2009

Distributions paid from:
Ordinary income	$	25,495,104	$	868,292
Long-term capital gain		—		54,924,176

Total	$	25,495,104	$	55,792,468

The aggregate cost of securities and other investments and the composition of unrealized appreciation and depreciation of securities and other investments for federal income tax purposes as of April 30, 2010 are noted in the following table. The primary difference between book and tax appreciation or depreciation of securities and other investments, if applicable, is attributable to the tax deferral of losses or tax realization of financial statement unrealized gain or loss.


Federal tax cost of securities	$	1,527,470,236


Gross unrealized appreciation	$	108,204,633
Gross unrealized depreciation		(54,656,683	)

Net unrealized appreciation	$	53,547,950

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 year ended April 30, 2010,

F16 | OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND

the Fund’s projected benefit obligations, payments to retired trustees and accumulated liability were as follows:


Projected Benefit Obligations Increased	$	7,036
Payments Made to Retired Trustees		8,006
Accumulated Liability as of April 30, 2010		65,995

The Board of Trustees has adopted a compensation deferral plan for independent trustees that enables trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. For purposes of determining the amount owed to the Trustee under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of the Fund or in other Oppenheimer funds selected by the Trustee. The Fund purchases shares of the funds selected for deferral by the Trustee in amounts equal to his or her deemed investment, resulting in a Fund asset equal to the deferred compensation liability. Such assets are included as a component of “Other” within the asset section of the Statement of Assets and Liabilities. Deferral of trustees’ fees under the plan will not affect the net assets of the Fund, and will not materially affect the Fund’s assets, liabilities or net investment income per share. Amounts will be deferred until distributed in accordance to the compensation deferral plan.

Dividends and Distributions to Shareholders. Dividends and distributions to shareholders, which are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles, are recorded on the ex-dividend date. Income and capital gain distributions, if any, are declared and paid annually or at other times as deemed necessary by the Manager.

Investment Income. Dividend distributions received from the Underlying Funds are recorded on the ex-dividend date. Upon receipt of notification from an Underlying Fund, and subsequent to the ex-dividend date, some of the dividend income originally recorded by the Fund may be reclassified as a tax return of capital by reducing the cost basis of the Underlying Fund and/or increasing the realized gain on sales of investments in the Underlying Fund.

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 overdraft at a rate equal to the 1 Month LIBOR Rate plus 2.00%. 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.

F17 | OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND

NOTES TO FINANCIAL STATEMENTS Continued

1. Significant Accounting Policies Continued

Indemnifications. The Fund’s organizational documents provide current and former trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund’s maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.

Other. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

2. Shares of Beneficial Interest

The Fund has authorized an unlimited number of $0.001 par value shares of beneficial interest of each class. Transactions in shares of beneficial interest were as follows:


	Year Ended April 30, 2010						Year Ended April 30, 2009
	Shares			Amount			Shares			Amount

Class A
Sold		30,035,144		$	311,397,858			18,288,360		$	175,996,708
Dividends and/or distributions reinvested		1,363,262			14,478,051			3,956,928			28,687,924
Redeemed		(16,936,106	)		(172,234,735	)		(43,087,846	)		(365,159,751	)

Net increase (decrease)		14,462,300		$	153,641,174			(20,842,558	)	$	(160,475,119	)


Class B
Sold		2,533,364		$	25,437,783			2,451,787		$	23,240,255
Dividends and/or distributions reinvested		140,477			1,463,772			667,013			4,749,165
Redeemed		(2,553,335	)		(25,158,706	)		(5,828,854	)		(49,978,542	)

Net increase (decrease)		120,506		$	1,742,849			(2,710,054	)	$	(21,989,122	)


Class C
Sold		9,907,389		$	100,090,798			8,315,813		$	77,434,912
Dividends and/or distributions reinvested		412,256			4,303,935			1,752,616			12,513,585
Redeemed		(7,293,393	)		(72,287,830	)		(19,363,885	)		(161,090,935	)

Net increase (decrease)		3,026,252		$	32,106,903			(9,295,456	)	$	(71,142,438	)

F18 | OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND


	Year Ended April 30, 2010						Year Ended April 30, 2009
	Shares			Amount			Shares			Amount

Class N
Sold		4,034,257		$	41,535,276			2,739,672		$	25,780,196
Dividends and/or distributions reinvested		117,911			1,242,776			316,990			2,282,489
Redeemed		(2,051,786	)		(20,507,577	)		(2,277,043	)		(18,934,405	)

Net increase		2,100,382		$	22,270,475			779,619		$	9,128,280


Class Y
Sold		5,923,120		$	62,670,311			2,448,153		$	24,839,232
Dividends and/or distributions reinvested		109,073			1,169,259			162,215			1,185,789
Redeemed		(1,832,610	)		(19,250,113	)		(1,932,354	)		(16,538,063	)

Net increase		4,199,583		$	44,589,457			678,014		$	9,486,958

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 year ended April 30, 2010, were as follows:


	Purchases		Sales

Investment securities	$	352,628,389	$	114,922,200

4. Fees and Other Transactions with Affiliates

Management Fees. Under the investment advisory agreement, the Manager does not charge a management fee, but rather collects indirect management fees from the Fund’s investments in the Underlying Funds and in IMMF. The weighted indirect management fees collected from the Fund’s investment in the Underlying Funds and in IMMF, as a percent of average daily net assets of the Fund for the year ended April 30, 2010 was 0.70%. This amount is gross of any waivers or reimbursements of management fees implemented at the underlying fund level.

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 year ended April 30, 2010, the Fund paid $3,522,637 to OFS for services to the Fund.

Additionally, Class Y shares are subject to minimum fees of $10,000 annually for assets of $10 million or more. The Class Y shares are subject to the minimum fees in the event that the per account fee does not equal or exceed the applicable minimum fees. OFS may voluntarily waive the minimum fees.

Distribution and Service Plan (12b-1) Fees. Under its General Distributor’s Agreement with the Fund, OppenheimerFunds Distributor, Inc. (the “Distributor”) acts as the Fund’s principal underwriter in the continuous public offering of the Fund’s classes of shares.

F19 | OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND

NOTES TO FINANCIAL STATEMENTS Continued

4. Fees and Other Transactions with Affiliates Continued

Service Plan for Class A Shares. The Fund has adopted a Service Plan (the “Plan”) for Class A shares under Rule 12b-1 of the Investment Company Act of 1940. Under the Plan, the Fund reimburses the Distributor for a portion of its costs incurred for services provided to accounts that hold Class A shares. Reimbursement is made periodically at an annual rate of up to 0.25% of the daily net assets of Class A shares of the Fund. The Distributor currently uses all of those fees to pay dealers, brokers, banks and other financial institutions periodically for providing personal service and maintenance of accounts of their customers that hold Class A shares. Any unreimbursed expenses the Distributor incurs with respect to Class A shares in any fiscal year cannot be recovered in subsequent periods. Fees incurred by the Fund under the Plan are detailed in the Statement of Operations.

Distribution and Service Plans for Class B, Class C and Class N Shares. The Fund has adopted Distribution and Service Plans (the “Plans”) for Class B, Class C and Class N shares under Rule 12b-1 of the Investment Company Act of 1940 to compensate the Distributor for its services in connection with the distribution of those shares and servicing accounts. Under the Plans, the Fund pays the Distributor an annual asset-based sales charge of 0.75% on Class B and Class C shares daily net assets and 0.25% on Class N shares daily net assets. 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. Fees incurred by the Fund under the Plans are detailed in the Statement of Operations. The Distributor determines its uncompensated expenses under the Plans at calendar quarter ends. The Distributor’s aggregate uncompensated expenses under the Plans at March 31, 2010 were as follows:


Class B	$	2,038,239
Class C		4,142,670
Class N		793,985

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

Front-End

Deferred

Sales Charges

Retained by

Year Ended

Distributor

April 30, 2010

645,663

1,850

223,587

21,608

2,332

F20 | OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND

Waivers and Reimbursements of Expenses. The Manager has voluntarily agreed to a total expense limitation on the aggregate amount of combined direct (fund-of-funds level) and indirect expense so that as a percentage of average daily net assets they will not exceed the following annual rates: 1.75%, 2.50%, 2.50%, 2.00% and 1.45%, for Class A, Class B, Class C, Class N and Class Y, respectively. These expense limitations do not include extraordinary expenses and other expenses not incurred in the ordinary course of the Fund’s business. Notwithstanding the foregoing limits, the Manager is not required to waive or reimburse Fund expenses in excess of indirect management fees earned from investments in the Underlying Funds and IMMF to assure that expenses do not exceed those limits.

OFS has voluntarily agreed to limit transfer and shareholder servicing agent fees for all classes to 0.35% of average annual net assets per class.

During the year ended April 30, 2010, OFS waived transfer and shareholder servicing agent fees as follows:


Class A	$	5,346
Class B		167,230
Class C		3,169
Class N		23,233

Some of these undertakings may be modified or terminated at any time; some may not be modified or terminated until after one year from the date of the current prospectus, as indicated therein.

5. Subsequent Events Evaluation

The Fund has evaluated the need for disclosures and/or adjustments resulting from subsequent events through the date the financial statements were issued. This evaluation determined that there are no subsequent events that necessitated disclosures and/or adjustments.

6. Pending Litigation

Since 2009, a number of lawsuits have been filed in federal courts against the Manager, the Distributor, and certain mutual funds (“Defendant Funds”) advised by the Manager and distributed by the Distributor (but not including the Fund). The lawsuits naming the Defendant Funds also name as defendants certain officers, trustees and former trustees of the respective Defendant Funds. The plaintiffs seek class action status on behalf of purchasers of shares of the respective Defendant Fund during a particular time period. The lawsuits raise claims under federal securities laws alleging that, among other things, the disclosure documents of the respective Defendant Fund contained misrepresentations and omissions, that such Defendant Fund’s investment policies were not followed, and that such Defendant Fund and the other defendants violated federal securities laws and regulations. The plaintiffs seek unspecified damages, equitable relief and an award of attorneys’ fees and litigation expenses.

F21 | OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND

NOTES TO FINANCIAL STATEMENTS Continued

6. Pending Litigation Continued

In 2009, what are claimed to be derivative lawsuits were filed in state court against the Manager and a subsidiary (but not against the Fund), on behalf of the New Mexico Education Plan Trust. These lawsuits allege breach of contract, breach of fiduciary duty, negligence and violation of state securities laws, and seek compensatory damages, equitable relief and an award of attorneys’ fees and litigation expenses.

Other lawsuits have been filed since 2008 in various state and federal courts, against the Manager and certain of its affiliates. Those lawsuits were filed by investors who made investments through an affiliate of the Manager, and relate to the alleged investment fraud perpetrated by Bernard Madoff and his firm (“Madoff ”). Those suits allege a variety of claims, including breach of fiduciary duty, fraud, negligent misrepresentation, unjust enrichment, and violation of federal and state securities laws and regulations, among others. They seek unspecified damages, equitable relief and an award of attorneys’ fees and litigation expenses. None of the suits have named the Distributor, any of the Oppenheimer mutual funds or any of their independent Trustees or Directors as defendants. None of the Oppenheimer funds invested in any funds or accounts managed by Madoff.

The Manager believes that the lawsuits described above are without legal merit and is defending against them vigorously. The Defendant Funds’ Boards of Trustees have also engaged counsel to defend the suits brought against those Funds and the present and former Independent Trustees named in those suits. While it is premature to render any opinion as to the outcome in these lawsuits, or whether any costs that the Defendant Funds may bear in defending the suits might not be reimbursed by insurance, the Manager believes that these suits should not impair the ability of the Manager or the Distributor to perform their respective duties to the Fund, and that the outcome of all of the suits together should not have any material effect on the operations of any of the Oppenheimer funds.

F22 | OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Trustees and Shareholders of Oppenheimer International Diversified Fund:

We have audited the accompanying statement of assets and liabilities of Oppenheimer International Diversified Fund, including the statement of investments, as of April 30, 2010, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the four-year period then ended and for the period September 27, 2005 (commencement of operations) to April 30, 2006. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of April 30, 2010, by correspondence with the transfer agent of the underlying funds. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Oppenheimer International Diversified Fund as of April 30, 2010, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the four-year period then ended and for the period September 27, 2005 (commencement of operations) to April 30, 2006, in conformity with U.S. generally accepted accounting principles.

KPMG llp

Denver, Colorado
June 17, 2010

F23 | OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND

FEDERAL INCOME TAX INFORMATION Unaudited

In early 2010, if applicable, shareholders of record received information regarding all dividends and distributions paid to them by the Fund during calendar year 2009. Regulations of the U.S. Treasury Department require the Fund to report this information to the Internal Revenue Service.

None of the dividends paid by the Fund during the fiscal year ended April 30, 2010 are eligible for the corporate dividend-received deduction.

A portion, if any, of the dividends paid by the Fund during the fiscal year ended April 30, 2010 which are not designated as capital gain distributions are eligible for lower individual income tax rates to the extent that the Fund has received qualified dividend income as stipulated by recent tax legislation. The maximum amount allowable but not less than $18,005,074 of the Fund’s fiscal year taxable income may be eligible for the lower individual income tax rates. In early 2010, shareholders of record received information regarding the percentage of distributions that are eligible for lower individual income tax rates.

Recent tax legislation allows a regulated investment company to designate distributions not designated as capital gain distributions, as either interest related dividends or short-term capital gain dividends, both of which are exempt from the U.S. withholding tax applicable to non U.S. taxpayers. For the fiscal year ended April 30, 2010, the maximum amount allowable but not less than $587 or 0.00% of the ordinary distributions paid by the Fund qualifies as an interest related dividend.

The foregoing information is presented to assist shareholders in reporting distributions received from the Fund to the Internal Revenue Service. Because of the complexity of the federal regulations which may affect your individual tax return and the many variations in state and local tax regulations, we recommend that you consult your tax advisor for specific guidance.

21 | OPPENHEIMER INTERNATIONAL DIVERSIFIED 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 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.

Householding—Delivery of Shareholder Documents

This is to inform you about OppenheimerFunds’ “householding” policy. If more than one member of your household maintains an account in a particular fund, OppenheimerFunds will mail only one copy of the fund’s prospectus, or, if available, the fund’s summary prospectus, annual and semiannual report and privacy policy. The consolidation of these mailings, called householding, benefits your fund through reduced mailing expense, and benefits you by reducing the volume of mail you receive from OppenheimerFunds. Householding does not affect the delivery of your account statements.

Please note that we will continue to household these mailings for as long as you remain an OppenheimerFunds shareholder, unless you request otherwise. If you prefer to receive multiple copies of these materials, please call us at 1.800.CALL-OPP (225-5677). You may also notify us in writing or via email. We will begin sending you individual copies of the prospectus, or, if available, the summary prospectus, reports and privacy policy within 30 days of receiving your request to stop householding.

22 | OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND

TRUSTEES AND OFFICERS Unaudited


Name, Position(s) Held with the Fund,		Principal Occupation(s) During the Past 5 Years; Other Trusteeships/Directorships Held; Number of
Length of Service, Age		Portfolios in the Fund Complex Currently Overseen

INDEPENDENT TRUSTEES		The address of each Trustee in the chart below is 6803 S. Tucson Way, Centennial, Colorado 80112-3924. Each Trustee serves for an indefinite term, or until his or her resignation, retirement, death or removal.

Brian F. Wruble, Chairman of the Board of Trustees (since 2007), Trustee (since 2005) Age: 67		Chairman (since August 2007) and Trustee (since August 1991) of the Board of Trustees of The Jackson Laboratory (non-profit); Director of Special Value Opportunities Fund, LLC (registered investment company) (affiliate of the Manager’s parent company) (since September 2004); Member of Zurich Financial Investment Management Advisory Council (insurance) (since 2004); Treasurer (since 2007) and Trustee of the Institute for Advanced Study (non-profit educational institute) (since May 1992); General Partner of Odyssey Partners, L.P. (hedge fund) (September 1995-December 2007); Special Limited Partner of Odyssey Investment Partners, LLC (private equity investment) (January 1999-September 2004). Oversees 59 portfolios in the OppenheimerFunds complex. Mr. Wruble has served on the Board since April 2001, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Board’s deliberations.

David K. Downes, Trustee (since 2007) Age: 70		Director of THL Credit Inc. (since June 2009); Independent Chairman GSK Employee Benefit Trust (since April 2006); Chief Executive Officer and Board Member of Community Capital Management (investment management company) (since January 2004); President of The Community Reinvestment Act Qualified Investment Fund (investment management company) (since 2004); Director of Internet Capital Group (information technology company) (since October 2003); Director of Correctnet (2006-2007); Independent Chairman of the Board of Trustees of Quaker Investment Trust (registered investment company) (2004-2007); Chief Operating Officer and Chief Financial Officer of Lincoln National Investment Companies, Inc. (subsidiary of Lincoln National Corporation, a publicly traded company) and Delaware Investments U.S., Inc. (investment management subsidiary of Lincoln National Corporation) (1993-2003); President, Chief Executive Officer and Trustee of Delaware Investment Family of Funds (1993-2003); President and Board Member of Lincoln National Convertible Securities Funds, Inc. and the Lincoln National Income Funds, TDC (1993-2003); Chairman and Chief Executive Officer of Retirement Financial Services, Inc. (registered transfer agent and investment adviser and subsidiary of Delaware Investments U.S., Inc.) (1993-2003); President and Chief Executive Officer of Delaware Service Company, Inc. (1995-2003); Chief Administrative Officer, Chief Financial Officer, Vice Chairman and Director of Equitable Capital Management Corporation (investment subsidiary of Equitable Life Assurance Society) (1985-1992); Corporate Controller of Merrill Lynch & Company (financial services holding company) (1977-1985); held the following positions at the Colonial Penn Group, Inc. (insurance company): Corporate Budget Director (1974-1977), Assistant Treasurer (1972-1974) and Director of Corporate Taxes (1969-1972); held the following positions at Price Waterhouse & Company (financial services firm): Tax Manager (1967-1969), Tax Senior (1965-1967) and Staff Accountant (1963-1965); United States Marine Corps (1957-1959). Oversees 59 portfolios in the OppenheimerFunds complex. Mr. Downes has served on the Board since December 2005, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Board’s deliberations.

Matthew P. Fink, Trustee (since 2005) Age: 69		Trustee of the Committee for Economic Development (policy research foundation) (since 2005); Director of ICI Education Foundation (education foundation) (October 1991-August 2006); President of the Investment Company Institute (trade association) (October 1991-June 2004); Director of ICI Mutual Insurance Company

23 | OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND

TRUSTEES AND OFFICERS Unaudited / Continued


Name, Position(s) Held with the Fund,		Principal Occupation(s) During the Past 5 Years; Other Trusteeships/Directorships Held; Number of
Length of Service, Age		Portfolios in the Fund Complex Currently Overseen

Matthew P. Fink, Continued		(insurance company) (October 1991-June 2004). Oversees 59 portfolios in the OppenheimerFunds complex. Mr. Fink has served on the Board since January 2005, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Board’s deliberations.

Phillip A. Griffiths, Trustee (since 2005) Age: 71		Fellow of the Carnegie Corporation (since 2007); Distinguished Presidential Fellow for International Affairs (since 2002) and Member (since 1979) of the National Academy of Sciences; Council on Foreign Relations (since 2002); Director of GSI Lumonics Inc. (precision technology products company) (since 2001); Senior Advisor of The Andrew W. Mellon Foundation (since 2001); Chair of Science Initiative Group (since 1999); Member of the American Philosophical Society (since 1996); Trustee of Woodward Academy (since 1983); Foreign Associate of Third World Academy of Sciences (since 2000); Director of the Institute for Advanced Study (1991-2004); Director of Bankers Trust New York Corporation (1994-1999); Provost at Duke University (1983-1991). Oversees 59 portfolios in the OppenheimerFunds complex. Mr. Griffiths has served on the Board since June 1999, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Board’s deliberations.

Mary F. Miller, Trustee (since 2005) Age: 67		Trustee of International House (not-for-profit) (since June 2007); Trustee of the American Symphony Orchestra (not-for-profit) (since October 1998); and Senior Vice President and General Auditor of American Express Company (financial services company) (July 1998-February 2003). Oversees 59 portfolios in the OppenheimerFunds complex. Ms. Miller has served on the Board since August 2004, during which time she has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Board’s deliberations.

Joel W. Motley, Trustee (since 2005) Age: 57		Managing Director of Public Capital Advisors, LLC (privately held financial advisor) (since January 2006); Managing Director of Carmona Motley, Inc. (privately-held financial advisor) (since January 2002); Director of Columbia Equity Financial Corp. (privately-held financial advisor) (2002-2007); Managing Director of Carmona Motley Hoffman Inc. (privately-held financial advisor) (January 1998-December 2001); Member of the Finance and Budget Committee of the Council on Foreign Relations, Chairman of the Investment Committee of the Episcopal Church of America, Member of the Investment Committee and Board of Human Rights Watch and Member of the Investment Committee of Historic Hudson Valley. Oversees 59 portfolios in the OppenheimerFunds complex. Mr. Motley has served on the Board since October 2002, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Board’s deliberations.

Mary Ann Tynan, Trustee (since 2008) Age: 64		Vice Chair of Board of Trustees of Brigham and Women’s/Faulkner Hospitals (non-profit hospitals) (since 2000); Chair of Board of Directors of Faulkner Hospital (non-profit hospital) (since 1990); Member of Audit and Compliance Committee of Partners Health Care System (non-profit) (since 2004); Board of Trustees of Middlesex School (educational institution) (since 1994); Board of Directors of Idealswork, Inc. (financial services provider) (since 2003); Partner, Senior Vice President and Director of Regulatory Affairs of Wellington Management Company, LLP (global investment manager) (1976-2002); Vice President and Corporate Secretary, John Hancock Advisers, Inc. (mutual fund investment adviser) (1970-1976). Oversees 59 portfolios in the OppenheimerFunds complex. Ms. Tynan has served on the Board since October 2008, during which time she has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Board’s deliberations.

24 | OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND


Name, Position(s) Held with the Fund,		Principal Occupation(s) During the Past 5 Years; Other Trusteeships/Directorships Held; Number of
Length of Service, Age		Portfolios in the Fund Complex Currently Overseen

Joseph M. Wikler, Trustee (since 2005) Age: 69		Director of C-TASC (bio-statistics services) (since 2007); Director of the following medical device companies: Medintec (since 1992) and Cathco (since 1996); Member of the Investment Committee of the Associated Jewish Charities of Baltimore (since 1994); Director of Lakes Environmental Association (environmental protection organization) (1996-2008); Director of Fortis/Hartford mutual funds (1994-December 2001). Oversees 59 portfolios in the OppenheimerFunds complex. Mr. Wikler has served on the Board since August 2005, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Board’s deliberations.

Peter I. Wold, Trustee (since 2005) Age: 62		Director and Chairman of Wyoming Enhanced Oil Recovery Institute Commission (enhanced oil recovery study) (since 2004); President of Wold Oil Properties, Inc. (oil and gas exploration and production company) (since 1994); Vice President of American Talc Company, Inc. (talc mining and milling) (since 1999); Managing Member of Hole-in-the-Wall Ranch (cattle ranching) (since 1979); Director and Chairman of the Denver Branch of the Federal Reserve Bank of Kansas City (1993-1999); and Director of PacifiCorp. (electric utility) (1995-1999). Oversees 59 portfolios in the OppenheimerFunds complex. Mr. Wold has served on the Board since August 2005, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Board’s deliberations.

INTERESTED TRUSTEE AND OFFICER		The address of Mr. Glavin is Two World Financial Center, 225 Liberty Street, 11th Floor, New York, New York 10281-1008. Mr. Glavin serves as a Trustee for an indefinite term, or until his resignation, retirement, death or removal and as an Officer for an indefinite term, or until his resignation, retirement, death or removal. Mr. Glavin is an interested Trustee due to his positions with OppenheimerFunds, Inc. and its affiliates.

William F. Glavin, Jr., Trustee, President and Principal Executive Officer (since 2009) Age: 51		Chairman of the Manager (since December 2009); Chief Executive Officer and Director of the Manager (since January 2009); President of the Manager (since May 2009); Director of Oppenheimer Acquisition Corp. (“OAC”) (the Manager’s parent holding company) (since June 2009); Executive Vice President (March 2006-February 2009) and Chief Operating Officer (July 2007-February 2009) of Massachusetts Mutual Life Insurance Company (OAC’s parent company); Director (May 2004- March 2006) and Chief Operating Officer and Chief Compliance Officer (May 2004- January 2005), President (January 2005-March 2006) and Chief Executive Officer (June 2005-March 2006) of Babson Capital Management LLC; Director (March 2005- March 2006), President (May 2003-March 2006) and Chief Compliance Officer (July 2005-March 2006) of Babson Capital Securities, Inc. (a broker-dealer); President (May 2003-March 2006) of Babson Investment Company, Inc.; Director (May 2004- August 2006) of Babson Capital Europe Limited; Director (May 2004-October 2006) of Babson Capital Guernsey Limited; Director (May 2004-March 2006) of Babson Capital Management LLC; Non-Executive Director (March 2005-March 2007) of Baring Asset Management Limited; Director (February 2005-June 2006) Baring Pension Trustees Limited; Director and Treasurer (December 2003-November 2006) of Charter Oak Capital Management, Inc.; Director (May 2006-September 2006) of C.M. Benefit Insurance Company; Director (May 2008-June 2009) and Executive Vice President (June 2007-July 2009) of C.M. Life Insurance Company; President (March 2006-May 2007) of MassMutual Assignment Company; Director (January 2005-December 2006), Deputy Chairman (March 2005-December 2006) and President (February 2005-March 2005) of MassMutual Holdings (Bermuda) Limited; Director (May 2008-June 2009) and Executive Vice President (June 2007-July 2009) of MML Bay State Life Insurance Company; Chief Executive Officer and President (April 2007-January 2009) of MML Distributors, LLC; and Chairman (March 2006-December 2008) and Chief Executive Officer (May 2007-December 2008) of MML Investors

25 | OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND

TRUSTEES AND OFFICERS Unaudited / Continued


Name, Position(s) Held with the Fund,		Principal Occupation(s) During the Past 5 Years; Other Trusteeships/Directorships Held; Number of
Length of Service, Age		Portfolios in the Fund Complex Currently Overseen

William F. Glavin, Jr., Continued		Services, Inc. Oversees 63 portfolios as a Trustee/Director and 94 portfolios as an Officer in the OppenheimerFunds complex. Mr. Glavin has served on the Board since December 2009, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Board’s deliberations.

OTHER OFFICERS OF THE FUND		The addresses of the Officers in the chart below are as follows: for Messrs. Evans, Keffer and Zack, Two World Financial Center, 225 Liberty Street, New York, New York 10281-1008, for Messrs. Vandehey and Wixted, 6803 S. Tucson Way, Centennial, Colorado 80112-3924. Each Officer serves for an indefinite term or until his or her resignation, retirement, death or removal.

George R. Evans, Vice President and Portfolio Manager (since 2005) Age: 50		Senior Vice President and Director of International Equities of the Manager (since July 2004); Vice President of the Manager (October 1993-July 2004). A portfolio manager and officer of 3 portfolios in the OppenheimerFunds complex.

Thomas W. Keffer, Vice President and Chief Business Officer (since 2009) Age: 54		Senior Vice President of the Manager (since March 1997); Director of Investment Brand Management (since November 1997); Senior Vice President of OppenheimerFunds Distributor, Inc. (since December 1997). An officer of 94 portfolios in the OppenheimerFunds complex.

Mark S. Vandehey, Vice President and Chief Compliance Officer (since 2005) Age: 59		Senior Vice President and Chief Compliance Officer of the Manager (since March 2004); Chief Compliance Officer of OppenheimerFunds Distributor, Inc., Centennial Asset Management and Shareholder Services, Inc. (since March 2004); Vice President of OppenheimerFunds Distributor, Inc., Centennial Asset Management Corporation and Shareholder Services, Inc. (since June 1983); Former Vice President and Director of Internal Audit of the Manager (1997-February 2004). An officer of 94 portfolios in the OppenheimerFunds complex.

Brian W. Wixted, Treasurer and Principal Financial & Accounting Officer (since 2005) Age: 50		Senior Vice President of the Manager (since March 1999); Treasurer of the Manager and the following: HarbourView Asset Management Corporation, Shareholder Financial Services, Inc., Shareholder Services, Inc., Oppenheimer Real Asset Management, Inc. and Oppenheimer Partnership Holdings, Inc. (March 1999-June 2008), OFI Private Investments, Inc. (March 2000-June 2008), OppenheimerFunds International Ltd. (since May 2000), OppenheimerFunds plc (since May 2000), OFI Institutional Asset Management, Inc. (since November 2000), and OppenheimerFunds Legacy Program (charitable trust program established by the Manager) (since June 2003); Treasurer and Chief Financial Officer of OFI Trust Company (trust company subsidiary of the Manager) (since May 2000); Assistant Treasurer of the following: OAC (March 1999-June 2008),Centennial Asset Management Corporation (March 1999-October 2003) and OppenheimerFunds Legacy Program (April 2000-June 2003). An officer of 94 portfolios in the OppenheimerFunds complex.

26 | OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND


Name, Position(s) Held with the Fund,		Principal Occupation(s) During the Past 5 Years; Other Trusteeships/Directorships Held; Number of
Length of Service, Age		Portfolios in the Fund Complex Currently Overseen

Robert G. Zack, Secretary (since 2005) Age: 61		Executive Vice President (since January 2004) and General Counsel (since March 2002) of the Manager; General Counsel and Director of the Distributor (since December 2001); General Counsel of Centennial Asset Management Corporation (since December 2001); Senior Vice President and General Counsel of HarbourView Asset Management Corporation (since December 2001); Secretary and General Counsel of OAC (since November 2001); Assistant Secretary (since September 1997) and Director (since November 2001) of OppenheimerFunds International Ltd. and OppenheimerFunds plc; Vice President and Director of Oppenheimer Partnership Holdings, Inc. (since December 2002); Director of Oppenheimer Real Asset Management, Inc. (since November 2001); Senior Vice President, General Counsel and Director of Shareholder Financial Services, Inc. and Shareholder Services, Inc. (since December 2001); Senior Vice President, General Counsel and Director of OFI Private Investments, Inc. and OFI Trust Company (since November 2001); Vice President of OppenheimerFunds Legacy Program (since June 2003); Senior Vice President and General Counsel of OFI Institutional Asset Management, Inc. (since November 2001); Director of OppenheimerFunds International Distributor Limited (since December 2003); Senior Vice President (May 1985- December 2003). An officer of 94 portfolios in the OppenheimerFunds complex.

The Fund’s Statement of Additional Information contains additional information about the Fund’s Trustees and Officers and is available without charge upon request, by calling 1.800.525.7048.

27 | OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND

Item 2. Code of Ethics.

The registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller or persons performing similar functions.

Item 3. Audit Committee Financial Expert.

The Board of Trustees of the registrant has determined that David Downes, the Board’s Audit Committee Chairman, is an audit committee financial expert and that Mr. Downes is “independent” for purposes of this Item 3.

Item 4. Principal Accountant Fees and Services.

(a)

Audit Fees

The principal accountant for the audit of the registrant’s annual financial statements billed $18,300 in fiscal 2010 and $19,600 in fiscal 2009.

(b) Audit-Related Fees

The principal accountant for the audit of the registrant’s annual financial statements billed no such fees during the last two fiscal years.

The principal accountant for the audit of the registrant’s annual financial statements billed $248,340 in fiscal 2010 and $331,200 in fiscal 2009 to the registrant’s investment adviser or any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant.

Such services include: internal control reviews and professional services relating to FIN 45, FAS 157 and Capital Accumulation Plan.

The principal accountant for the audit of the registrant’s annual financial statements billed $9,500 in fiscal 2010 and $4,000 in fiscal 2009.

The principal accountant for the audit of the registrant’s annual financial statements billed no such fees to the registrant during the last two fiscal years to the registrant’s investment adviser or any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant.

Such services include: tax compliance, tax planning and tax advice. Tax compliance generally involves preparation of original and amended tax returns, claims for a refund and tax payment-planning services. Tax planning and tax advice includes assistance with tax audits and appeals, tax advice related to mergers and acquisitions and requests for rulings or technical advice from taxing authorities.

(d) All Other Fees

The principal accountant for the audit of the registrant’s annual financial statements billed no such fees during the last two fiscal years.

The principal accountant for the audit of the registrant’s annual financial statements billed no such fees during the last two fiscal years to the registrant’s investment adviser or any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant.

(e)		(1) During its regularly scheduled periodic meetings, the registrant’s audit committee will pre-approve all audit, audit-related, tax and other services to be provided by the principal accountants of the registrant.

		The audit committee has delegated pre-approval authority to its Chairman for any subsequent new engagements that arise between regularly scheduled meeting dates provided that any fees such pre-approved are presented to the audit committee at its next regularly scheduled meeting.

		Under applicable laws, pre-approval of non-audit services maybe waived provided that: 1) the aggregate amount of all such services provided constitutes no more than five percent of the total amount of fees paid by the registrant to it principal accountant during the fiscal year in which services are provided 2) such services were not recognized by the registrant at the time of engagement as non-audit services and 3) such services are promptly brought to the attention of the audit committee of the registrant and approved prior to the completion of the audit.

		(2) 100%

(f)		Not applicable as less than 50%.

(g)		The principal accountant for the audit of the registrant’s annual financial statements billed $257,840 in fiscal 2010 and $335,200 in fiscal 2009 to the registrant and the registrant’s investment adviser or any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant related to non-audit fees. Those billings did not include any prohibited non-audit services as defined by the Securities Exchange Act of 1934.

(h)		The registrant’s audit committee of the board of trustees has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence. No such services were rendered.

Item 5. Audit Committee of Listed Registrants

Not applicable.

Item 6. Schedule of Investments.

a) Not applicable.

b) 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

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.

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.

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:

	•		the name, address, and business, educational, and/or other pertinent background of the person being recommended;

	•		a statement concerning whether the person is an “interested person” as defined in the Investment Company Act of 1940;

	•		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

	•		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.

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.”

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 04/30/2010, 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.


Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments from affiliated companies	$	(18,213,975	)
Distributions received from affiliated companies		962,934
Allocated from Oppenheimer Master International Value Fund, LLC		17,205,232

Net realized loss		(45,809	)
Net change in unrealized appreciation/depreciation on:
Investments		378,961,967
Allocated from Oppenheimer Master International Value Fund, LLC		48,052,606

Net change in unrealized appreciation/depreciation		427,014,573

Net Increase in Net Assets Resulting from Operations	$	449,573,731

(a)		(1) Exhibit attached hereto.

		(2) Exhibits attached hereto.

		(3) Not applicable.

(b)		Exhibit attached hereto.


	Oppenheimer International Diversified Fund
	By:	/s/ William F. Glavin, Jr.
		William F. Glavin, Jr.
		Principal Executive Officer



	By:	/s/ Brian W. Wixted
		Brian W. Wixted
		Principal Financial Officer