0001193125-14-001066.txt : 20140103 0001193125-14-001066.hdr.sgml : 20140103 20140102200305 ACCESSION NUMBER: 0001193125-14-001066 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 7 CONFORMED PERIOD OF REPORT: 20130430 FILED AS OF DATE: 20140103 DATE AS OF CHANGE: 20140102 EFFECTIVENESS DATE: 20140103 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Oppenheimer International Diversified Fund CENTRAL INDEX KEY: 0001329067 IRS NUMBER: 000000000 STATE OF INCORPORATION: DE FISCAL YEAR END: 0407 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-21775 FILM NUMBER: 14503155 BUSINESS ADDRESS: STREET 1: 6803 SOUTH TUCSON WAY CITY: CENTENNIAL STATE: CO ZIP: 80112 BUSINESS PHONE: 303-768-3200 MAIL ADDRESS: STREET 1: 6803 SOUTH TUCSON WAY CITY: CENTENNIAL STATE: CO ZIP: 80112 0001329067 S000008825 Oppenheimer International Diversified Fund C000024038 A C000024039 B C000024040 C C000024041 N C000024042 Y C000117880 I N-CSRS 1 d624920dncsrs.htm OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND Oppenheimer International Diversified Fund

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM N-CSR

 

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-21775

 

 

Oppenheimer International Diversified Fund

(Exact name of registrant as specified in charter)

 

 

6803 South Tucson Way, Centennial, Colorado 80112-3924

(Address of principal executive offices) (Zip code)

 

 

Arthur S. Gabinet

OFI Global Asset Management, Inc.

Two World Financial Center, New York, New York 10281-1008

(Name and address of agent for service)

 

 

Registrant’s telephone number, including area code: (303) 768-3200

Date of fiscal year end: April 30

Date of reporting period: 10/31/2013

 

 

 


Item 1. Reports to Stockholders.


LOGO

 


Table of Contents

 

Fund Performance Discussion

     3   

Top Holdings and Allocations

     5   

Fund Expenses

     8   

Statement of Investments

     10   

Statement of Assets and Liabilities

     12   

Statement of Operations

     14   

Statements of Changes in Net Assets

     16   

Financial Highlights

     17   

Notes to Financial Statements

     29   

Board Approval of the Fund’s Investment Advisory and Sub-Advisory Agreements

     41   

Special Shareholder Meeting

     44   

Portfolio Proxy Voting Policies and Procedures; Updates to Statement of Investments

     46   

Trustees and Officers

     47   

Privacy Policy Notice

     48   

 

 

Class A Shares

AVERAGE ANNUAL TOTAL RETURNS AT 10/31/13

 

     Class A Shares of the Fund                    
     Without Sales
Charge
    With Sales
Charge
    MSCI All Country
World ex USA
Index
    MSCI EAFE Index     MSCI World
Index
 

6-Month

     10.15     3.81     6.66     8.53     9.68

1-Year

     25.37        18.16        20.29        26.88        25.77   

5-Year

     17.22        15.84        12.48        11.99        13.34   

Since Inception (9/27/05)

     7.60        6.82        5.52        4.96        5.74   

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. Fund returns include changes in share price, reinvested distributions, and a 5.75% maximum applicable sales charge except where “without sales charge” is indicated. Current performance may be lower or higher than the performance quoted. Returns do not consider capital gains or income taxes on an individual’s investment. Returns for periods of less than one year are cumulative and not annualized. For performance data current to the most recent month-end, visit oppenheimerfunds.com or call 1.800.CALL OPP (225.5677).

 

2    OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND


Fund Performance Discussion

The Fund’s Class A shares (without sales charge) returned 10.15% during the reporting period. On a relative basis, the Fund outperformed its benchmarks, the MSCI All Country World ex USA Index, the MSCI EAFE Index and the MSCI World Index, which returned 6.66%, 8.53% and 9.68%, respectively.

MARKET OVERVIEW

 

Accommodative monetary policies on the part of central banks in the U.S., Europe and Japan, combined with supportive equity valuations relative to bonds, resulted in a rally among global equity markets over the first four months of 2013. However, markets became volatile early in the reporting period when relatively hawkish remarks by Federal Reserve (“Fed”) chairman Ben Bernanke were widely interpreted as a signal that U.S. monetary policymakers would begin to back away from their quantitative easing program sooner than expected. Additionally, fears began to creep into the market about a possible slowdown in the world’s emerging economies. As a result, risk assets sold off across the board, with Japanese stocks and emerging market debt absorbing the brunt of the selling. Global equity markets resumed their upward trend over the second half of the reporting period when the Fed clarified that the timeframe in which it would taper would be later rather than earlier.

FUND REVIEW

The Fund’s diversified portfolio consisted primarily of six Oppenheimer mutual funds

during the reporting period: on the equity side, Oppenheimer International Growth Fund, Oppenheimer Master International Value Fund, LLC, Oppenheimer International Value Fund, Oppenheimer Developing Markets Fund and Oppenheimer International Small Company Fund. Effective January 2, 2014, the Fund will no longer invest in Oppenheimer International Bond Fund as an underlying holding. We believe investors looking for a core international equity product prefer a pure equity portfolio.1

During the reporting period, the Fund’s underlying equity funds produced positive performance and outperformed their respective benchmarks. Oppenheimer International Small Company Fund and Oppenheimer International Growth Fund were the strongest contributors to performance. Oppenheimer International Small Company Fund’s performance was driven by investments in the consumer discretionary, health care and information technology sectors. Oppenheimer International Growth Fund received its strongest contributions from select holdings

 

 

1. As of the end of the period, the Fund invested in Class I shares of all underlying funds discussed in this Fund Performance Discussion, except for Oppenheimer Master International Value Fund, LLC, which does not offer Class I shares.

 

3    OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND


in the consumer discretionary, industrials and information technology sectors. Oppenheimer Master International Value Fund, LLC, and Oppenheimer International Value Fund, which are similarly managed, also benefited the Fund’s performance this period. Both of these underlying funds received their most meaningful contributions to absolute performance from holdings in the consumer discretionary, information technology and financials sectors.

 

LOGO

   LOGO
  

George R. Evans

Portfolio Manager

Oppenheimer International Bond Fund produced a negative return this period and underperformed its Reference Index, a customized weighted index currently comprised of 50% of the Citigroup Non-U.S. Dollar World Government Bond Index, 30% of the JPMorgan Government Bond Index - Emerging Markets Global Diversified, and 20% of the JPMorgan Emerging Markets Bond Index Global Diversified, which returned -3.10%. The underlying fund’s losses occurred over the first half of the period after the Fed’s talk of potentially tapering its quantitative easing program.

 

 

 

4    OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND


Top Holdings and Allocations

ASSET CLASS ALLOCATION

 

Foreign Equity Funds:

     91.2

Oppenheimer International Growth Fund, Cl. I

     31.2   

Oppenheimer Master International Value Fund, LLC

     19.9   

Oppenheimer International Small Company Fund, Cl. I

     16.8   

Oppenheimer Developing Markets Fund, Cl. I

     13.6   

Oppenheimer International Value Fund, Cl. I

     9.7   

Foreign Fixed Income Fund

     7.7   

Oppenheimer International Bond Fund, Cl. I

     7.7   

Money Market Fund

     1.1   

Oppenheimer Institutional Money Market Fund, Cl. E

     1.1   

Portfolio holdings and allocations are subject to change. Percentages are as of October 31, 2013, and are based on the total market value of investments.

 

5    OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND


Share Class Performance

AVERAGE ANNUAL TOTAL RETURNS WITHOUT SALES CHARGE AS OF 10/31/13

 

     Inception
Date
     6-Month     1-Year     5-Year     Since
Inception
 

Class A (OIDAX)

     9/27/05         10.15     25.37     17.22     7.60

Class B (OIDBX)

     9/27/05         9.57     24.23     16.19     6.92

Class C (OIDCX)

     9/27/05         9.65     24.36     16.32     6.79

Class I (OIDIX)

     8/28/12         10.80     26.46     N/A        27.73

Class N (OIDNX)

     9/27/05         9.95     24.99     16.86     7.27

Class Y (OIDYX)

     9/27/05         10.34     25.70     17.58     7.96

AVERAGE ANNUAL TOTAL RETURNS WITH SALES CHARGE AS OF 10/31/13

 

     Inception
Date
     6-Month     1-Year     5-Year     Since
Inception
 

Class A (OIDAX)

     9/27/05         3.81     18.16     15.84     6.82

Class B (OIDBX)

     9/27/05         4.57     19.23     15.97     6.92

Class C (OIDCX)

     9/27/05         8.65     23.36     16.32     6.79

Class I (OIDIX)

     8/28/12         10.80     26.46     N/A        27.73

Class N (OIDNX)

     9/27/05         8.95     23.99     16.86     7.27

Class Y (OIDYX)

     9/27/05         10.34     25.70     17.58     7.96

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. Returns do not consider capital gains or income taxes on an individual’s investment. For performance data current to the most recent month-end, visit oppenheimerfunds.com or call 1.800.CALL OPP (225.5677). 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% (5-year); 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 I and Class Y shares. Because Class B shares convert to Class A shares 72 months after purchase, the since inception return for Class B shares uses Class A performance for the period after conversion. Returns for periods of less than one year are cumulative and not annualized.

The Fund’s performance is compared to the performance of the MSCI All Country World ex USA Index, the MSCI EAFE Index and the MSCI World Index. The MSCI All Country World ex USA Index is designed to measure the equity market performance of developed and emerging markets and excludes the U.S. The MSCI EAFE Index (Europe, Australasia, Far East) is designed to measure the equity market performance of developed markets, excluding the U.S. and Canada. The MSCI World Index is designed to measure the equity market performance of developed markets. The indices are unmanaged and cannot be purchased directly by investors. Index performance includes reinvestment of income, but does not reflect transaction costs, fees, expenses or taxes. Index performance is shown for illustrative

 

6    OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND


purposes only as a benchmark for the Fund’s performance, and does not predict or depict performance of the Fund. The Fund’s performance reflects the effects of the Fund’s business and operating expenses.

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. or its affiliates.

Before investing in any of the Oppenheimer funds, investors should carefully consider a fund’s investment objectives, risks, charges and expenses. Fund prospectuses and summary prospectuses contain this and other information about the funds, and may be obtained by asking your financial advisor, visiting oppenheimerfunds.com, or calling 1.800.CALL OPP (225.5677). Read prospectuses and summary prospectuses carefully before investing.

Shares of Oppenheimer funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested.

 

7    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 (2) ongoing costs, including management fees; distribution and service fees; and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The examples are based on an investment of $1,000.00 invested at the beginning of the period and held for the entire 6-month period ended October 31, 2013.

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.

 

8    OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND


Actual

   Beginning
Account
Value
May 1, 2013
     Ending
Account
Value
October 31, 2013
     Expenses
Paid During

6 Months Ended
October 31, 2013
 

Class A

   $ 1,000.00       $ 1,101.50       $ 3.61   

Class B

     1,000.00         1,095.70         8.38   

Class C

     1,000.00         1,096.50         7.64   

Class I

     1,000.00         1,108.00         1.01   

Class N

     1,000.00         1,099.50         5.25   

Class Y

     1,000.00         1,103.40         2.23   

 

Hypothetical

(5% return before expenses)

                    

Class A

     1,000.00         1,021.78         3.47   

Class B

     1,000.00         1,017.24         8.07   

Class C

     1,000.00         1,017.95         7.35   

Class I

     1,000.00         1,024.25         0.97   

Class N

     1,000.00         1,020.21         5.05   

Class Y

     1,000.00         1,023.09         2.14   

Expenses are equal to the Fund’s annualized expense ratio for that class, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Those annualized expense ratios, excluding indirect expenses from affiliated funds, based on the 6-month period ended October 31, 2013 are as follows:

 

Class

   Expense Ratios  

Class A

     0.68

Class B

     1.58   

Class C

     1.44   

Class I

     0.19   

Class N

     0.99   

Class Y

     0.42   

The expense ratios reflect voluntary waivers and/or reimbursements of expenses by the Fund’s Manager and Transfer Agent. Some of these undertakings may be modified or terminated at any time, as indicated in the Fund’s prospectus. 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.

 

9    OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND


STATEMENT OF INVESTMENTS    October 31, 2013 / Unaudited

 

     Shares     Value  

Investment Companies—99.7%1

    

Foreign Equity Funds—91.0%

    

Oppenheimer Developing Markets Fund, Cl. I

     9,630,759      $ 365,102,059   

Oppenheimer International Growth Fund, Cl. I

     22,468,944        835,620,022   

Oppenheimer International Small Company Fund, Cl. I

     14,673,271        450,175,964   

Oppenheimer International Value Fund, Cl. I

     13,632,937        260,934,419   

Oppenheimer Master International Value Fund, LLC

     45,577,818        533,278,517   
    

 

 

 
       2,445,110,981   

Foreign Fixed Income Fund—7.6%

    

Oppenheimer International Bond Fund, Cl. I

     33,334,268        205,339,090   

Money Market Fund—1.1%

    

Oppenheimer Institutional Money Market Fund, Cl. E, 0.11%2

     30,178,409        30,178,409   

Total Investments, at Value (Cost $1,930,548,458)

     99.7     2,680,628,480   

Assets in Excess of Other Liabilities

     0.3        7,614,077   
  

 

 

   

 

 

 

Net Assets

     100.0   $ 2,688,242,557   
  

 

 

   

 

 

 

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 October 31, 2013, 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
April 30, 2013
     Gross
Additions
    Gross
Reductions
    Shares
October 31,
2013
 

Oppenheimer Developing Markets Fund, Cl. I

     —           9,767,974 a      137,215        9,630,759   

Oppenheimer Developing Markets Fund, Cl. Y

     9,169,933         66,143        9,236,076 a      —     

Oppenheimer Institutional Money Market Fund, Cl. E

     1,985,948         123,571,584        95,379,123        30,178,409   

Oppenheimer International Bond Fund, Cl. I

     —           33,851,362 a      517,094        33,334,268   

Oppenheimer International Bond Fund, Cl. Y

     30,836,692         239,477        31,076,169 a      —     

Oppenheimer International Growth Fund, Cl. I

     —           22,746,020 a      277,076        22,468,944   

Oppenheimer International Growth Fund, Cl. Y

     21,532,557         140,932        21,673,489 a      —     

Oppenheimer International Small Company Fund, Cl. I

     —           14,823,105 a      149,834        14,673,271   

Oppenheimer International Small Company Fund, Cl. Y

     14,077,727         193,819        14,271,546 a      —     

Oppenheimer International Value Fund, Cl. I

     —           13,632,937 a      —          13,632,937   

Oppenheimer International Value Fund, Cl. Y

     13,632,937         —          13,632,937 a      —     

Oppenheimer Master International Value Fund, LLC

     42,562,276         4,830,561        1,815,019        45,577,818   

 

10    OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND


Footnotes to Statement of Investments (Continued)

 

     Value      Income     Realized
Gain (Loss)
 

Oppenheimer Developing Markets Fund, Cl. I

   $ 365,102,059         —        $ (194,445

Oppenheimer Developing Markets Fund, Cl. Y

     —           —          (609

Oppenheimer Institutional Money Market Fund, Cl. E

     30,178,409         9,513        —     

Oppenheimer International Bond Fund, Cl. I

     205,339,090         3,462,865        (244,284

Oppenheimer International Bond Fund, Cl. Y

     —           484,770        (438

Oppenheimer International Growth Fund, Cl. I

     835,620,022         —          (49,856

Oppenheimer International Growth Fund, Cl. Y

     —           —          (194

Oppenheimer International Small Company Fund, Cl. I

     450,175,964         —          (62,371

Oppenheimer International Small Company Fund, Cl. Y

     —           —          (7,992

Oppenheimer International Value Fund, Cl. I

     260,934,419         —          —     

Oppenheimer International Value Fund, Cl. Y

     —           —          —     

Oppenheimer Master International Value Fund, LLC

     533,278,517         4,732,550 b      31,443,948 b 
  

 

 

    

 

 

   

 

 

 
   $ 2,680,628,480       $ 8,689,698      $ 30,883,759   
  

 

 

    

 

 

   

 

 

 

 

a. The Fund elected to invest in Class I Shares of the Underlying Funds as they became available to investors.
b. Represents the amount allocated to the Fund from Oppenheimer Master International Value Fund, LLC.
2. Rate shown is the 7-day yield as of October 31, 2013.

See accompanying Notes to Financial Statements.

 

11    OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND


STATEMENT OF ASSETS AND LIABILITIES    October 31, 2013/    Unaudited

 

Assets

  

Investments, at value—see accompanying statement of investments—affiliated companies
(cost $1,930,548,458)

   $ 2,680,628,480   

Cash

     345,205   

Receivables and other assets:

  

Shares of beneficial interest sold

     12,585,724   

Dividends

     649,333   

Investments sold

     245,886   

Other

     100,592   
  

 

 

 

Total assets

     2,694,555,220   

Liabilities

  

Payables and other liabilities:

  

Shares of beneficial interest redeemed

     3,085,592   

Investments purchased

     1,930,351   

Transfer and shareholder servicing agent fees

     484,423   

Distribution and service plan fees

     469,760   

Trustees’ compensation

     162,733   

Shareholder communications

     153,587   

Other

     26,217   
  

 

 

 

Total liabilities

     6,312,663   

Net Assets

   $ 2,688,242,557   
  

 

 

 

Composition of Net Assets

  

Par value of shares of beneficial interest

   $ 186,916   

Additional paid-in capital

     2,513,450,327   

Accumulated net investment income

     7,901,104   

Accumulated net realized loss on investments

     (583,375,812

Net unrealized appreciation on investments

     750,080,022   
  

 

 

 

Net Assets

   $ 2,688,242,557   
  

 

 

 

 

12    OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND


Net Asset Value Per Share

  

Class A Shares:

  

Net asset value and redemption price per share (based on net assets of $1,541,032,524 and 106,747,328 shares of beneficial interest outstanding)

   $ 14.44   

Maximum offering price per share (net asset value plus sales charge of 5.75% of offering price)

   $ 15.32   

Class B Shares:

  

Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $76,178,735 and 5,411,299 shares of beneficial interest outstanding)

   $ 14.08   

Class C Shares:

  

Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $473,505,685 and 33,602,440 shares of beneficial interest outstanding)

   $ 14.09   

Class I Shares:

  

Net asset value, redemption price and offering price per share (based on net assets of $41,892,518 and 2,855,772 shares of beneficial interest outstanding)

   $ 14.67   

Class N Shares:

  

Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $164,749,056 and 11,554,407 shares of beneficial interest outstanding)

   $ 14.26   

Class Y Shares:

  

Net asset value, redemption price and offering price per share (based on net assets of $390,884,039 and 26,744,900 shares of beneficial interest outstanding)

   $ 14.62   

See accompanying Notes to Financial Statements.

 

13    OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND


STATEMENT OF OPERATIONS    For the Six Months Ended October 31, 2013/    Unaudited

 

Allocation of Income and Expenses from Master Fund1

  

Net investment income allocated from Oppenheimer Master International Value Fund, LLC:

  

Dividends

   $ 4,732,550   

Expenses

     (1,976,158
  

 

 

 

Net investment income allocated from Oppenheimer Master International Value Fund, LLC

     2,756,392   

Investment Income

  

Dividends from affiliated companies

     3,957,148   

Interest

     138   

Other income

     22,530   
  

 

 

 

Total investment income

     3,979,816   

Expenses

  

Distribution and service plan fees:

  

Class A

     1,752,492   

Class B

     384,988   

Class C

     2,147,747   

Class N

     372,484   

Transfer and shareholder servicing agent fees:

  

Class A

     1,577,083   

Class B

     135,519   

Class C

     480,596   

Class I

     4,101   

Class N

     223,938   

Class Y

     390,294   

Shareholder communications:

  

Class A

     287,078   

Class B

     41,036   

Class C

     88,946   

Class I

     79   

Class N

     13,615   

Class Y

     35,237   

Trustees’ compensation

     24,274   

Custodian fees and expenses

     8,503   

Other

     45,104   
  

 

 

 

Total expenses

     8,013,114   

Less waivers and reimbursements of expenses

     (102,811
  

 

 

 

Net expenses

     7,910,303   

Net Investment Loss

     (1,174,095

 

1. The Fund invests in certain affiliated mutual funds that expect to be treated as partnerships for tax purposes. See Note 1 of the accompanying Notes.

 

14    OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND


Realized and Unrealized Gain (Loss)

  

Net realized loss on investments from affiliated companies

   $ (560,189

Net realized gain allocated from Oppenheimer Master International Value Fund, LLC

     31,443,948   
  

 

 

 

Net realized gain

     30,883,759   

Net change in unrealized appreciation/depreciation on investments

     243,647,470   

Net change in unrealized appreciation/depreciation allocated from Oppenheimer Master

  

International Value Fund, LLC

     (34,200,340
  

 

 

 

Net change in unrealized appreciation/depreciation

     209,447,130   

Net Increase in Net Assets Resulting from Operations

   $ 239,156,794   
  

 

 

 

See accompanying Notes to Financial Statements.

 

 

15    OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND


STATEMENTS OF CHANGES IN NET ASSETS

 

     Six Months Ended
October 31, 2013
(Unaudited)
    Year Ended
April 30, 2013
 

Operations

    

Net investment income (loss)

   $ (1,174,095   $ 17,708,304   

Net realized gain

     30,883,759        34,269,663   

Net change in unrealized appreciation/depreciation

     209,447,130        284,240,187   
  

 

 

   

 

 

 

Net increase in net assets resulting from operations

     239,156,794        336,218,154   

Dividends and/or Distributions to Shareholders

    

Dividends from net investment income:

    

Class A

     —          (20,207,344

Class B

     —          (665,546

Class C

     —          (3,842,323

Class I

     —          (189,990

Class N

     —          (1,840,900

Class Y

     —          (5,005,387
  

 

 

   

 

 

 
     —          (31,751,490

Beneficial Interest Transactions

    

Net increase (decrease) in net assets resulting from beneficial interest transactions:

    

Class A

     57,517,503        13,052,339   

Class B

     (13,249,025     (34,062,380

Class C

     23,271,956        (15,370,710

Class I

     27,797,717        9,617,997   

Class N

     9,323,650        6,350,516   

Class Y

     48,391,370        53,211,727   
  

 

 

   

 

 

 
     153,053,171        32,799,489   

Net Assets

    

Total increase

     392,209,965        337,266,153   

Beginning of period

     2,296,032,592        1,958,766,439   
  

 

 

   

 

 

 

End of period (including accumulated net investment income of $7,901,104 and $9,075,199, respectively)

   $ 2,688,242,557      $ 2,296,032,592   
  

 

 

   

 

 

 

See accompanying Notes to Financial Statements.

 

16    OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND


FINANCIAL HIGHLIGHTS

 

Class A

   Six Months
Ended
October 31, 2013
(Unaudited)
    Year Ended
April 30,
2013
    Year Ended
April 30,
2012
    Year Ended
April 29,
20111
    Year Ended
April 30,

2010
    Year Ended
April 30,

2009
 

Per Share Operating Data

            

Net asset value, beginning of period

   $ 13.11      $ 11.30      $ 13.03      $ 11.04      $ 7.57      $ 12.86   

Income (loss) from investment operations:

            

Net investment income2

     0.00 3      0.12        0.22        0.30        0.20        0.19   

Net realized and unrealized gain (loss)

     1.33        1.90        (1.69     1.93        3.49        (5.05
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total from investment operations

     1.33        2.02        (1.47     2.23        3.69        (4.86

Dividends and/or distributions to shareholders:

            

Dividends from net investment income

     0.00        (0.21     (0.26     (0.24     (0.22     0.00   

Distributions from net realized gain

     0.00        0.00        0.00        0.00        0.00        (0.43
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total dividends and/or distributions to shareholders

     0.00        (0.21     (0.26     (0.24     (0.22     (0.43

Net asset value, end of period

   $ 14.44      $ 13.11      $ 11.30      $ 13.03      $ 11.04      $ 7.57   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Return, at Net Asset Value4

     10.15     18.06     (11.09 )%      20.31     48.79     (37.65 )% 

Ratios/Supplemental Data

            

Net assets, end of period (in thousands)

   $ 1,541,033      $ 1,344,557      $ 1,153,159      $ 1,251,013      $ 910,248      $ 514,535   

Average net assets (in thousands)

   $ 1,386,512      $ 1,163,778      $ 1,116,268      $ 1,016,021      $ 744,582      $ 738,073   

Ratios to average net assets:5,6

            

Net investment income

     0.04     1.05     1.99     2.56     2.02     2.03

Total expenses7

     0.69     0.68     0.68     0.67     0.68     0.60

Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses

     0.68     0.67     0.68     0.67     0.68     0.57

Portfolio turnover rate

     1     9     13     5     9     34

 

17    OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND


FINANCIAL HIGHLIGHTS    Continued

 

1. April 29, 2011 represents the last business day of the Fund’s reporting period.
2. Per share amounts calculated based on the average shares outstanding during the period.
3. Less than $0.005.
4. 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.
5. Annualized for periods less than one full year.
6. Includes the Fund’s share of the allocated expenses and/or net investment income from Oppenheimer Master International Value Fund, LLC.
7. Total expenses including indirect expenses from affiliated fund were as follows:

 

Six Months Ended October 31, 2013

     1.32

Year Ended April 30, 2013

     1.40

Year Ended April 30, 2012

     1.37

Year Ended April 29, 2011

     1.34

Year Ended April 30, 2010

     1.40

Year Ended April 30, 2009

     1.42

See accompanying Notes to Financial Statements.

 

18    OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND


Class B

   Six Months
Ended
October 31,
2013
(Unaudited)
    Year Ended
April 30,
2013
    Year Ended
April 30,
2012
    Year Ended
April 29,
20111
    Year Ended
April 30,
2010
    Year Ended
April 30,
2009
 

Per Share Operating Data

            

Net asset value, beginning of period

   $ 12.85      $ 11.06      $ 12.73      $ 10.80      $ 7.42      $ 12.73   

Income (loss) from investment operations:

            

Net investment income (loss)2

     (0.06     0.02        0.11        0.18        0.11        0.11   

Net realized and unrealized gain (loss)

     1.29        1.86        (1.64     1.89        3.41        (4.99
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total from investment operations

     1.23        1.88        (1.53     2.07        3.52        (4.88

Dividends and/or distributions to shareholders:

            

Dividends from net investment income

     0.00        (0.09     (0.14     (0.14     (0.14     0.00   

Distributions from net realized gain

     0.00        0.00        0.00        0.00        0.00        (0.43
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total dividends and/or distributions to shareholders

     0.00        (0.09     (0.14     (0.14     (0.14     (0.43

Net asset value, end of period

   $ 14.08      $ 12.85      $ 11.06      $ 12.73      $ 10.80      $ 7.42   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Return, at Net Asset Value3

     9.57     17.07     (11.87 )%      19.24     47.52     (38.19 )% 

Ratios/Supplemental Data

            

Net assets, end of period (in thousands)

   $ 76,179      $ 82,632      $ 104,293      $ 140,225      $ 120,338      $ 81,764   

Average net assets (in thousands)

   $ 77,042      $ 88,638      $ 115,004      $ 123,708      $ 108,398      $ 112,481   

Ratios to average net assets:4,5

            

Net investment income (loss)

     (0.85 )%      0.15     1.04     1.63     1.13     1.18

Total expenses6

     1.62     1.69     1.68     1.66     1.70     1.56

Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses

     1.58     1.57     1.57     1.57     1.54     1.43

Portfolio turnover rate

     1     9     13     5     9     34

 

19    OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND


FINANCIAL HIGHLIGHTS    Continued

 

1. April 29, 2011 represents the last business day of the Fund’s reporting period.
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 fund were as follows:

 

Six Months Ended October 31, 2013

     2.25

Year Ended April 30, 2013

     2.41

Year Ended April 30, 2012

     2.37

Year Ended April 29, 2011

     2.33

Year Ended April 30, 2010

     2.42

Year Ended April 30, 2009

     2.38

See accompanying Notes to Financial Statements.

 

20    OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND


Class C

   Six Months
Ended
October 31,
2013
(Unaudited)
    Year Ended
April 30,

2013
    Year Ended
April 30,
2012
    Year Ended
April 29,
20111
    Year Ended
April 30,
2010
    Year Ended
April 30,
2009
 

Per Share Operating Data

            

Net asset value, beginning of period

   $ 12.85      $ 11.08      $ 12.75      $ 10.83      $ 7.44      $ 12.74   

Income (loss) from investment operations:

            

Net investment income (loss)2

     (0.05     0.04        0.13        0.20        0.12        0.11   

Net realized and unrealized gain (loss)

     1.29        1.86        (1.64     1.88        3.42        (4.98
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total from investment operations

     1.24        1.90        (1.51     2.08        3.54        (4.87

Dividends and/or distributions to shareholders:

            

Dividends from net investment income

     0.00        (0.13     (0.16     (0.16     (0.15     0.00   

Distributions from net realized gain

     0.00        0.00        0.00        0.00        0.00        (0.43
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total dividends and/or distributions to shareholders

     0.00        (0.13     (0.16     (0.16     (0.15     (0.43

Net asset value, end of period

   $ 14.09      $ 12.85      $ 11.08      $ 12.75      $ 10.83      $ 7.44   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Return, at Net Asset Value3

     9.65     17.20     (11.70 )%      19.25     47.65     (38.09 )% 

Ratios/Supplemental Data

            

Net assets, end of period (in thousands)

   $ 473,506      $ 409,450      $ 370,541      $ 468,816      $ 383,642      $ 240,961   

Average net assets (in thousands)

   $ 422,611      $ 362,107      $ 389,384      $ 400,491      $ 330,282      $ 343,343   

Ratios to average net assets:4,5

            

Net investment income (loss)

     (0.71 )%      0.31     1.16     1.76     1.22     1.25

Total expenses6

     1.45     1.43     1.45     1.43     1.44     1.33

Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses

     1.44     1.42     1.45     1.43     1.44     1.33

Portfolio turnover rate

     1     9     13     5     9     34

 

21    OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND


FINANCIAL HIGHLIGHTS    Continued

 

1. April 29, 2011 represents the last business day of the Fund’s reporting period.
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 fund were as follows:

 

Six Months Ended October 31, 2013

     2.08

Year Ended April 30, 2013

     2.15

Year Ended April 30, 2012

     2.14

Year Ended April 29, 2011

     2.10

Year Ended April 30, 2010

     2.16

Year Ended April 30, 2009

     2.17

See accompanying Notes to Financial Statements.

 

22    OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND


Class I

   Six Months
Ended

October 31,
2013
(Unaudited)
    Period Ended
April 30,
20131
 

Per Share Operating Data

    

Net asset value, beginning of period

   $ 13.24      $ 11.25   

Income (loss) from investment operations:

    

Net investment income2

     0.04        0.05   

Net realized and unrealized gain

     1.39        2.21   
  

 

 

   

 

 

 

Total from investment operations

     1.43        2.26   

Dividends and/or distributions to shareholders:

    

Dividends from net investment income

     0.00        (0.27

Distributions from net realized gain

     0.00        0.00   
  

 

 

   

 

 

 

Total dividends and/or distributions to shareholders

     0.00        (0.27

Net asset value, end of period

   $ 14.67      $ 13.24   
  

 

 

   

 

 

 

Total Return, at Net Asset Value3

     10.80     20.33

Ratios/Supplemental Data

    

Net assets, end of period (in thousands)

   $ 41,892      $ 10,196   

Average net assets (in thousands)

   $ 24,830      $ 4,967   

Ratios to average net assets:4,5

    

Net investment income

     0.54     0.59

Total expenses6

     0.20     0.27

Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses

     0.19     0.26

Portfolio turnover rate

     1     9

 

 

 

23    OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND


FINANCIAL HIGHLIGHTS    Continued

 

1. For the period from August 28, 2012 (inception of offering) to April 30, 2013.
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 fund were as follows:

 

Six Months Ended October 31, 2013

     0.83

Period Ended April 30, 2013

     0.99

See accompanying Notes to Financial Statements.

 

24    OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND


Class N

   Six Months
Ended
October 31,
2013
(Unaudited)
    Year Ended
April 30,

2013
    Year Ended
April 30,
2012
    Year Ended
April 29,
20111
    Year Ended
April 30,
2010
    Year Ended
April 30,
2009
 

Per Share Operating Data

            

Net asset value, beginning of period

   $ 12.97      $ 11.19      $ 12.89      $ 10.94      $ 7.51      $ 12.81   

Income (loss) from investment operations:

            

Net investment income (loss)2

     (0.02     0.09        0.19        0.25        0.17        0.17   

Net realized and unrealized gain (loss)

     1.31        1.87        (1.67     1.90        3.46        (5.04
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total from investment operations

     1.29        1.96        (1.48     2.15        3.63        (4.87

Dividends and/or distributions to shareholders:

            

Dividends from net investment income

     0.00        (0.18     (0.22     (0.20     (0.20     0.00   

Distributions from net realized gain

     0.00        0.00        0.00        0.00        0.00        (0.43
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total dividends and/or distributions to shareholders

     0.00        (0.18     (0.22     (0.20     (0.20     (0.43

Net asset value, end of period

   $ 14.26      $ 12.97      $ 11.19      $ 12.89      $ 10.94      $ 7.51   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Return, at Net Asset Value3

     9.95     17.64     (11.28 )%      19.81     48.39     (37.87 )% 

Ratios/Supplemental Data

            

Net assets, end of period (in thousands)

   $ 164,749      $ 140,798      $ 116,120      $ 112,550      $ 91,748      $ 47,209   

Average net assets (in thousands)

   $ 146,349      $ 119,129      $ 111,079      $ 101,565      $ 71,007      $ 54,203   

Ratios to average net assets:4,5

            

Net investment income (loss)

     (0.27 )%      0.76     1.67     2.20     1.72     1.89

Total expenses6

     1.00     1.01     1.00     1.04     1.02     0.97

Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses

     0.99     1.00     1.00     1.03     0.98     0.88

Portfolio turnover rate

     1     9     13     5     9     34

 

25    OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND


FINANCIAL HIGHLIGHTS    Continued

 

1. April 29, 2011 represents the last business day of the Fund’s reporting period.
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 fund were as follows:

 

Six Months Ended October 31, 2013

     1.63

Year Ended April 30, 2013

     1.73

Year Ended April 30, 2012

     1.69

Year Ended April 29, 2011

     1.71

Year Ended April 30, 2010

     1.74

Year Ended April 30, 2009

     1.79

See accompanying Notes to Financial Statements.

 

26    OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND


Class Y

   Six Months
Ended
October 31,
2013
(Unaudited)
    Year Ended
April 30,
2013
    Year Ended
April 30,
2012
    Year Ended
April 29,
20111
    Year Ended
April 30,
2010
    Year Ended
April 30,
2009
 

Per Share Operating Data

            

Net asset value, beginning of period

   $ 13.25      $ 11.42      $ 13.16      $ 11.16      $ 7.65      $ 12.93   

Income (loss) from investment operations:

            

Net investment income2

     0.02        0.16        0.24        0.35        0.25        0.24   

Net realized and unrealized gain (loss)

     1.35        1.91        (1.70     1.93        3.51        (5.09
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total from investment operations

     1.37        2.07        (1.46     2.28        3.76        (4.85

Dividends and/or distributions to shareholders:

            

Dividends from net investment income

     0.00        (0.24     (0.28     (0.28     (0.25     0.00   

Distributions from net realized gain

     0.00        0.00        0.00        0.00        0.00        (0.43
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total dividends and/or distributions to shareholders

     0.00        (0.24     (0.28     (0.28     (0.25     (0.43

Net asset value, end of period

   $ 14.62      $ 13.25      $ 11.42      $ 13.16      $ 11.16      $ 7.65   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Return, at Net Asset Value3

     10.34     18.31     (10.85 )%      20.56     49.32     (37.36 )% 

Ratios/Supplemental Data

            

Net assets, end of period (in thousands)

   $ 390,884      $ 308,400      $ 214,653      $ 209,099      $ 78,793      $ 21,871   

Average net assets (in thousands)

   $ 329,773      $ 246,307      $ 192,114      $ 122,708      $ 46,070      $ 24,956   

Ratios to average net assets:4,5

            

Net investment income

     0.30     1.36     2.13     2.98     2.41     2.65

Total expenses6

     0.43     0.44     0.49     0.42     0.29     0.22

Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses

     0.42     0.43     0.49     0.40     0.29     0.21

Portfolio turnover rate

     1     9     13     5     9     34

 

27    OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND


FINANCIAL HIGHLIGHTS    Continued

 

1. April 29, 2011 represents the last business day of the Fund’s reporting period.
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 fund were as follows:

 

Six Months Ended October 31, 2013

     1.06

Year Ended April 30, 2013

     1.16

Year Ended April 30, 2012

     1.18

Year Ended April 29, 2011

     1.09

Year Ended April 30, 2010

     1.01

Year Ended April 30, 2009

     1.04

See accompanying Notes to Financial Statements.

 

28    OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND


NOTES TO FINANCIAL STATEMENTS    Unaudited

 

1. Significant Accounting Policies

Oppenheimer International Diversified Fund (the “Fund”) is registered under the Investment Company Act of 1940, as amended, as a diversified open-end management investment company. The Fund’s investment objective is to seek capital appreciation. The Fund’s investment adviser is OFI Global Asset Management, Inc. (“OFI Global” or the “Manager”), a wholly-owned subsidiary of OppenheimerFunds, Inc. (“OFI” or the “Sub-Adviser”). The Manager has entered into a sub-advisory agreement with OFI.

The Fund offers Class A, Class C, Class I, Class N and Class Y shares, and previously offered Class B shares for new purchase through June 29, 2012. Subsequent to that date, no new purchases of Class B shares are permitted, however reinvestment of dividend and/or capital gain distributions and exchanges of Class B shares into and from other Oppenheimer funds will be allowed. Class A shares are sold at their offering price, which is normally net asset value plus a front-end sales charge. Class C and Class N shares are sold, and Class B shares were 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 I and Class Y shares are sold to certain institutional investors or intermediaries without either a front-end sales charge or a CDSC, however, the intermediaries may impose charges on their accountholders who beneficially own Class I and Class Y shares. 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 shares have separate distribution and/or service plans under which they pay fees. Class I and Class Y shares do not pay such fees. Class B shares will automatically convert to Class A shares 72 months after the date of purchase. Class I shares were first publicly offered on August 28, 2012.

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

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 the investment adviser of IMMF, and the Sub-Adviser provides investment and related advisory services to IMMF. When applicable, the

 

29    OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND


NOTES TO FINANCIAL STATEMENTS    Unaudited / Continued

1. Significant Accounting Policies (Continued)

 

Fund’s investment in IMMF is included in the Statement of Investments. Shares of IMMF are valued at their net asset value per share. As a shareholder, the Fund is subject to its proportional share of IMMF’s Class E expenses, including its management fee. The Manager will waive fees and/or reimburse Fund expenses in an amount equal to the indirect management fees incurred through the Fund’s investment in IMMF.

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.

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 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.

During the fiscal year ended April 30, 2013, the Fund utilized $38,833,115 of capital loss carryforward to offset capital gains realized in that fiscal year. Details of the fiscal year ended April 30, 2013 capital loss carryforwards are included in the table below. Capital loss carryforwards with no expiration, if any, must be utilized prior to those with expiration dates. Capital losses with no expiration will be carried forward to future years if not offset by gains.

 

30    OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND


1. Significant Accounting Policies (Continued)

 

Expiring

      

2017

   $ 119,567,079   

2018

     315,770,085   

No expiration

     64,626,578   
  

 

 

 

Total

   $ 499,963,742   
  

 

 

 

As of October 31, 2013, it is estimated that the capital loss carryforwards would be $435,337,164 expiring by 2018 and $64,626,578 which will not expire. The estimated capital loss carryforward represents the carryforward as of the end of the last fiscal year, increased or decreased by capital losses or gains realized in the first six months of the current fiscal year. During the six months ended October 31, 2013, it is estimated that the Fund will utilize $30,883,759 of capital loss carryforward to offset realized capital gains.

Net investment income (loss) and net realized gain (loss) may differ for financial statement and tax purposes. The character of dividends and distributions made during the fiscal year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. Also, due to timing of dividends and distributions, the fiscal year in which amounts are distributed may differ from the fiscal year in which the income or net realized gain was recorded by the Fund.

The 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 October 31, 2013 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

   $ 2,052,030,824   
  

 

 

 

Gross unrealized appreciation

   $ 628,597,656   

Gross unrealized depreciation

     —     
  

 

 

 

Net unrealized appreciation

   $ 628,597,656   
  

 

 

 

Trustees’ Compensation. The Fund has adopted an unfunded retirement plan (the “Plan”) for the Fund’s independent trustees. Benefits are based on years of service and fees paid to each trustee during their period of service. The Plan was frozen with respect to adding new participants effective December 31, 2006 (the “Freeze Date”) and existing Plan Participants as of the Freeze Date will continue to receive accrued benefits under the Plan. Active independent trustees as of the Freeze Date have each elected a distribution method with respect to their benefits under the Plan. During the six months ended October 31, 2013, the Fund’s projected benefit obligations, payments to retired trustees and accumulated liability were as follows:

 

Projected Benefit Obligations Increased

   $ 5,512   

Payments Made to Retired Trustees

     2,756   

Accumulated Liability as of October 31, 2013

     67,212   

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

 

31    OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND


NOTES TO FINANCIAL STATEMENTS    Unaudited / Continued

1. Significant Accounting Policies (Continued)

 

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 with 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. The tax character of distributions is determined as of the Fund’s fiscal year end. Therefore, a portion of the Fund’s distributions made to shareholders prior to the Fund’s fiscal year end may ultimately be categorized as a tax return of capital.

Investment Income. Dividend income is recorded on the ex-dividend date or upon ex-dividend notification in the case of certain foreign dividends where the ex-dividend date may have passed. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income is recognized on an accrual basis. Discount and premium, which are included in interest income on the Statement of Operations, are amortized or accreted daily.

Custodian Fees. “Custodian fees and expenses” in the Statement of Operations may include interest expense incurred by the Fund on any cash overdrafts of its custodian account during the period. Such cash overdrafts may result from the effects of failed trades in portfolio securities and from cash outflows resulting from unanticipated shareholder redemption activity. The Fund pays interest to its custodian on such cash 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.

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

 

32    OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND


1. Significant Accounting Policies (Continued)

 

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. 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.

The Fund’s Board has adopted procedures for the valuation of the Fund’s securities and has delegated the day-to-day responsibility for valuation determinations under those procedures to the Manager. The Manager has established a Valuation Committee which is responsible for determining a “fair valuation” for any security for which market quotations are not “readily available.” The Valuation Committee’s fair valuation determinations are subject to review, approval and ratification by the Fund’s Board at its next regularly scheduled meeting covering the calendar quarter in which the fair valuation was determined.

Valuations Methods and Inputs

To determine their net asset values, the Underlying Funds’ assets are valued primarily on the basis of current market quotations as generally supplied by third party portfolio pricing services or by dealers. Such market quotations are typically based on unadjusted quoted prices in active markets for identical securities or other observable market inputs.

The net asset value per share of the Subsidiary is determined as of the close of the Exchange, on each day the Exchange is open for trading. The net asset value per share is determined by dividing the value of the Subsidiary’s net assets by the number of shares that are outstanding. The Subsidiary values its investments in the same manner as the Fund as described above.

If a market value or price cannot be determined for a security using the methodologies described above, or if, in the “good faith” opinion of the Manager, the market value or price obtained does not constitute a “readily available market quotation,” or a significant event has occurred that would materially affect the value of the security the security is fair valued either (i) by a standardized fair valuation methodology applicable to the security type or the significant event as previously approved by the Valuation Committee and the Fund’s Board or (ii) as determined in good faith by the Manager’s Valuation Committee. The Valuation Committee considers all relevant facts that are reasonably available, through either public

 

33    OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND


NOTES TO FINANCIAL STATEMENTS    Unaudited / Continued

2. Securities Valuation (Continued)

 

information or information available to the Manager, when determining the fair value of a security. Fair value determinations by the Manager are subject to review, approval and ratification by the Fund’s Board at its next regularly scheduled meeting covering the calendar quarter in which the fair valuation was determined. The methodologies used for valuing securities are not necessarily an indication of the risks associated with investing in those Underlying Funds.

To assess the continuing appropriateness of security valuations, the Manager, or its third party service provider who is subject to oversight by the Manager, regularly compares prior day prices, prices on comparable securities, and sale prices to the current day prices and challenges those prices exceeding certain tolerance levels with the third party pricing service or broker source. For those securities valued by fair valuations, whether through a standardized fair valuation methodology or a fair valuation determination, the Valuation Committee reviews and affirms the reasonableness of the valuations based on such methodologies and fair valuation determinations on a regular basis after considering all relevant information that is reasonably available.

Classifications

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. 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 or liability (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 or liability).

The inputs used for valuing securities are not necessarily an indication of the risks associated with investing in those securities.

The Fund classifies each of its investments in those Underlying Funds which are publicly offered and reported on an exchange as Level 1, and those Underlying Funds which are not publicly offered as Level 2, without consideration as to the classification level of the specific investments held by the Underlying Funds.

 

34    OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND


2. Securities Valuation (Continued)

The table below categorizes amounts that are included in the Fund’s Statement of Assets and Liabilities as of October 31, 2013 based on valuation input level:

 

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

Assets Table

           

Investments, at Value:

           

Investment Companies

   $ 2,147,349,963       $ 533,278,517       $ —         $ 2,680,628,480   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Assets

   $ 2,147,349,963       $ 533,278,517       $ —         $ 2,680,628,480   
  

 

 

    

 

 

    

 

 

    

 

 

 

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.

3. Shares of Beneficial Interest

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

 

     Six Months Ended October 31, 2013     Year Ended April 30, 20131  
     Shares     Amount     Shares     Amount  

Class A

        

Sold

     14,910,384      $ 201,276,427        26,997,419      $ 318,082,188   

Dividends and/or distributions reinvested

     —          —          1,556,257        18,768,420   

Redeemed

     (10,712,022     (143,758,924     (28,033,371     (323,798,269
  

 

 

   

 

 

   

 

 

   

 

 

 

Net increase

     4,198,362      $ 57,517,503        520,305      $ 13,052,339   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class B

        

Sold

     111,896      $ 1,480,383        360,409      $ 4,008,136   

Dividends and/or distributions reinvested

     —          —          54,216        642,461   

Redeemed

     (1,132,525     (14,729,408     (3,409,591     (38,712,977
  

 

 

   

 

 

   

 

 

   

 

 

 

Net decrease

     (1,020,629   $ (13,249,025     (2,994,966   $ (34,062,380
  

 

 

   

 

 

   

 

 

   

 

 

 

Class C

        

Sold

     4,188,595      $ 55,588,214        5,551,544      $ 64,810,332   

Dividends and/or distributions reinvested

     —          —          292,628        3,464,709   

Redeemed

     (2,458,446     (32,316,258     (7,412,441     (83,645,751
  

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease)

     1,730,149      $ 23,271,956        (1,568,269   $ (15,370,710
  

 

 

   

 

 

   

 

 

   

 

 

 

 

1. For the year ended April 30, 2013 for Class A, Class B, Class C, Class N and Class Y shares, and for the period from August 28, 2012 (inception of offering) to April 30, 3013 for Class I shares.

 

35    OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND


NOTES TO FINANCIAL STATEMENTS    Unaudited / Continued

3. Shares of Beneficial Interest (Continued)

 

     Six Months Ended October 31, 2013     Year Ended April 30, 20131  
     Shares     Amount     Shares     Amount  

Class I

        

Sold

     2,226,800      $ 29,739,999        806,100      $ 10,073,299   

Dividends and/or distributions reinvested

     —          —          15,604        189,748   

Redeemed

     (141,236     (1,942,282     (51,496     (645,050
  

 

 

   

 

 

   

 

 

   

 

 

 

Net increase

     2,085,564      $ 27,797,717        770,208      $ 9,617,997   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class N

        

Sold

     2,310,155      $ 30,645,964        4,013,220      $ 46,964,377   

Dividends and/or distributions reinvested

     —          —          142,970        1,707,058   

Redeemed

     (1,614,005     (21,322,314     (3,678,438     (42,320,919
  

 

 

   

 

 

   

 

 

   

 

 

 

Net increase

     696,150      $ 9,323,650        447,752      $ 6,350,516   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class Y

        

Sold

     7,167,835      $ 98,565,173        13,812,275      $ 164,126,360   

Dividends and/or distributions reinvested

                   368,152        4,484,098   

Redeemed

     (3,695,349     (50,173,803     (9,702,981     (115,398,731
  

 

 

   

 

 

   

 

 

   

 

 

 

Net increase

     3,472,486      $ 48,391,370        4,477,446      $ 53,211,727   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

1. For the year ended April 30, 2013 for Class A, Class B, Class C, Class N and Class Y shares, and for the period from August 28, 2012 (inception of offering) to April 30, 3013 for Class I shares.

4. Purchases and Sales of Securities

The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations and investments in IMMF, for the six months ended October 31, 2013 were as follows:

 

     Purchases      Sales  

Investment securities

   $ 150,380,849       $ 32,822,840   

5. 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. The weighted indirect management fees collected from the Fund’s investment in the Underlying Funds, as a percent of average daily net assets of the Fund for the six months year ended October 31, 2013 was 0.72%. This amount is gross of any waivers or reimbursements of management fees implemented at the Underlying Fund level.

Sub-Adviser Fees. The Manager has retained the Sub-Adviser to provide the day-to-day portfolio management of the Fund. Under the Sub-Advisory Agreement, the Manager pays the Sub-Adviser an annual fee in monthly installments, equal to a percentage of the

 

36    OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND


5. Fees and Other Transactions with Affiliates (Continued)

 

investment management fee collected by the Manager from the Fund, which shall be calculated after any investment management fee waivers. The fee paid to the Sub-Adviser is paid by the Manager, not by the Fund.

Transfer Agent Fees. OFI Global (the “Transfer Agent”) serves as the transfer and shareholder servicing agent for the Fund. Fees incurred by the Fund with respect to these services are detailed in the Statement of Operations.

Sub-Transfer Agent Fees. The Transfer Agent has retained Shareholder Services, Inc., a wholly-owned subsidiary of OFI (the “Sub-Transfer Agent”), to provide the day-to-day transfer agent and shareholder servicing of the Fund. Under the Sub-Transfer Agency Agreement, the Transfer Agent pays the Sub-Transfer Agent an annual fee in monthly installments, equal to a percentage of the transfer agent fee collected by the Transfer Agent from the Fund, which shall be calculated after any applicable fee waivers. The fee paid to the Sub-Transfer Agent is paid by the Transfer Agent, not by the Fund.

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

Service Plan for Class A Shares. The Fund has adopted a Service Plan (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

 

37    OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND


NOTES TO FINANCIAL STATEMENTS    Unaudited / Continued

5. Fees and Other Transactions with Affiliates (Continued)

 

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 September 30, 2013 were as follows:

 

Class C

   $ 5,613,509   

Class N

     1,622,853   

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.

 

Six Months Ended

   Class A
Front-End
Sales Charges

Retained by
Distributor
     Class A
Contingent
Deferred Sales

Charges
Retained by
Distributor
     Class B
Contingent
Deferred Sales
Charges
Retained by
Distributor
     Class C
Contingent
Deferred Sales
Charges
Retained by
Distributor
     Class N
Contingent
Deferred Sales
Charges
Retained by
Distributor
 

October 31, 2013

   $ 290,829       $ 713       $ 40,268       $ 14,473       $ 262   

Waivers and Reimbursements of Expenses. The Transfer Agent has voluntarily agreed to limit transfer and shareholder servicing agent fees for all classes 0.35% of average annual net assets per class.

During the six months ended October 31, 2013, the Transfer Agent waived transfer and shareholder servicing agent fees as follows:

 

Class B

   $ 13,346   

Class N

     829   

During the six months ended October 31, 2013, the Fund has reimbursed the Manager for indirect expenses in the amount of $88,636.

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.

6. Pending Litigation

Since 2009, seven class action lawsuits have been pending in the U.S. District Court for the District of Colorado against OppenheimerFunds, Inc. (“OFI”), OppenheimerFunds Distributor, Inc., the Fund’s principal underwriter and distributor (the “Distributor”), and certain funds (but not including the Fund) advised by OFI Global Asset Management, Inc. and distributed by the Distributor (the “Defendant Funds”). The lawsuits also name as defendants certain officers and current and former trustees of the respective Defendant Funds. The lawsuits raise claims under federal securities law and allege, among other things, that the disclosure documents of the respective Defendant Funds contained misrepresentations and omissions

 

38    OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND


6. Pending Litigation (Continued)

 

and that the respective Defendant Funds’ investment policies were not followed. The plaintiffs in these actions seek unspecified damages, equitable relief and awards of attorneys’ fees and litigation expenses. The Defendant Funds’ Boards of Trustees have also engaged counsel to represent the Funds and the present and former Independent Trustees named in those suits. On August 26, 2013, the parties in six of these lawsuits executed a memorandum of understanding setting forth the terms of proposed settlements of those actions. The proposed settlements are subject to a variety of contingencies, including the execution of settlement agreements, which will require preliminary and final approval by the court. The proposed settlements do not resolve a seventh outstanding lawsuit relating to Oppenheimer California Municipal Fund.

Other class action and individual lawsuits have been filed since 2008 in various state and federal courts against OFI and certain of its affiliates by investors seeking to recover investments they allegedly lost as a result of the “Ponzi” scheme run by Bernard L. Madoff and his firm, Bernard L. Madoff Investment Securities, LLC (“BLMIS”). Plaintiffs in these suits allege that they suffered losses as a result of their investments in several funds managed by an affiliate of OFI and assert 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 awards of attorneys’ fees and litigation expenses. Neither the Distributor, nor any of the Oppenheimer mutual funds, their independent trustees or directors are named as defendants in these lawsuits. None of the Oppenheimer mutual funds invested in any funds or accounts managed by Madoff or BLMIS. On February 28, 2011, a stipulation of partial settlement of three groups of consolidated putative class action lawsuits relating to these matters was filed in the U.S. District Court for the Southern District of New York. On August 19, 2011, the court entered an order and final judgment approving the settlement as fair, reasonable and adequate. In September 2011, certain parties filed notices of appeal from the court’s order approving the settlement. The settlement does not resolve other outstanding lawsuits against OFI and its affiliates relating to BLMIS.

On April 16, 2010, a lawsuit was filed in New York state court against OFI, an affiliate of OFI and AAArdvark IV Funding Limited (“AAArdvark IV”), an entity advised by OFI’s affiliate, in connection with investments made by the plaintiffs in AAArdvark IV. Plaintiffs allege breach of contract and common law fraud claims against the defendants and seek compensatory damages, costs and disbursements, including attorney fees. On April 11, 2013, the court granted defendants’ motion for summary judgment, dismissing plaintiffs’ fraud claim with prejudice and dismissing their contract claim without prejudice, and granted plaintiffs leave to replead their contract claim to assert a cause of action for specific performance within 30 days. On May 9, 2013, plaintiffs filed a notice of appeal from the court’s dismissal order. On July 15, 2011, a lawsuit was filed in New York state court against OFI, an affiliate of OFI and AAArdvark Funding Limited (“AAArdvark I”), an entity advised by OFI’s affiliate, in connection with investments made by the plaintiffs in AAArdvark I. The complaint alleges breach of contract and common law fraud claims against the defendants and seeks compensatory damages, costs and disbursements, including attorney fees. On November 9, 2011, a lawsuit was filed in New York state court against OFI, an affiliate of OFI

 

39    OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND


NOTES TO FINANCIAL STATEMENTS    Unaudited / Continued

6. Pending Litigation (Continued)

 

and AAArdvark XS Funding Limited (“AAArdvark XS”), an entity advised by OFI’s affiliate, in connection with investments made by the plaintiffs in AAArdvark XS. The complaint alleged breach of contract against the defendants and sought compensatory damages, costs and disbursements, including attorney fees. On November 8, 2013, the parties filed a stipulation of discontinuance dismissing the lawsuit with prejudice.

OFI believes the lawsuits and appeals described above are without legal merit and, with the exception of actions it has settled, is defending against them vigorously. 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, OFI believes that these suits should not impair the ability of OFI 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 mutual funds.

 

40    OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND


BOARD APPROVAL OF THE FUND’S INVESTMENT ADVISORY

AND SUB-ADVISORY AGREEMENTS    Unaudited

 

The Fund has entered into an investment advisory agreement with OFI Global Asset Management, Inc. (“OFI Global” or the “Adviser”), a wholly-owned subsidiary of OppenheimerFunds, Inc. (“OFI” or the “Sub-Adviser”) (“OFI Global” and “OFI” together the “Managers”) and OFI Global has entered into a sub-advisory agreement with OFI whereby OFI provides investment sub-advisory services to the Fund (collectively, the “Agreements”). Each year, the Board of Trustees (the “Board”), including a majority of the independent Trustees, is required to determine whether to renew the Agreements. The Investment Company Act of 1940, as amended, requires that the Board request and evaluate, and that the Managers provide, such information as may be reasonably necessary to evaluate the terms of the Agreements. The Board employs an independent consultant to prepare a report that provides information, including comparative information that the Board requests for that purpose. In addition to in-person meetings focused on this evaluation, the Board receives information throughout the year regarding Fund services, fees, expenses and performance.

The Adviser, Sub-Adviser and the independent consultant provided information to the Board on the following factors: (i) the nature, quality and extent of the Managers’ services, (ii) the investment performance of the Fund and the Managers, (iii) the fees and expenses of the Fund, including comparative expense information, (iv) the profitability of the Managers and their affiliates, including an analysis of the cost of providing services, (v) whether economies of scale are realized as the Fund grows and whether fee levels reflect these economies of scale for Fund investors and (vi) other benefits to the Managers from their relationship with the Fund. The Board was aware that there are alternatives to retaining the Managers.

Outlined below is a summary of the principal information considered by the Board as well as the Board’s conclusions.

Nature, Quality and Extent of Services. The Board considered information about the nature, quality and extent of the services provided to the Fund and information regarding the Managers’ key personnel who provide such services. The Sub-Adviser’s duties include providing the Fund with the services of the portfolio manager and the Sub-Adviser’s investment team, who provide research, analysis and other advisory services in regard to the Fund’s investments; securities trading services; oversight of third-party service providers; monitoring compliance with applicable Fund policies and procedures and adherence to the Fund’s investment restrictions; and risk management. The Managers are responsible for providing certain administrative services to the Fund as well. Those services include providing and supervising all administrative and clerical personnel who are necessary in order to provide effective corporate administration for the Fund; compiling and maintaining records with respect to the Fund’s operations; preparing and filing reports required by the Securities and Exchange Commission; preparing periodic reports regarding the operations of the Fund for its shareholders; preparing proxy materials for shareholder meetings; and preparing the registration statements required by Federal and state securities laws for the sale of the Fund’s shares. The Managers also provide the Fund with office space, facilities and equipment.

The Board also considered the quality of the services provided and the quality of the Managers’ resources that are available to the Fund. The Board took account of the fact that the Sub-Adviser has had over fifty years of experience as an investment adviser and that its assets under management rank it among the top mutual fund managers in the United States. The Board evaluated the Sub-Adviser’s advisory, administrative, accounting, legal, compliance

 

41    OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND


BOARD APPROVAL OF THE FUND’S INVESTMENT ADVISORY

AND SUB-ADVISORY AGREEMENTS    Unaudited / Continued

 

services and risk management, and information the Board has received regarding the experience and professional qualifications of the Managers’ key personnel and the size and functions of its staff. In its evaluation of the quality of the portfolio management services provided, the Board considered the experience of George Evans, the portfolio manager for the Fund, and the experience of the portfolio managers and the investment performance of the investment companies in which the Fund may invest (the “Underlying Funds”). The Board members also considered the totality of their experiences with the Managers as directors or trustees of the Fund and other funds advised by the Managers. The Board considered information regarding the quality of services provided by affiliates of the Managers, which its members have become knowledgeable about in connection with the renewal of the Fund’s service agreements. The Board concluded, in light of the Managers’ experience, reputation, personnel, operations and resources that the Fund benefits from the services provided under the Agreement.

Investment Performance of the Fund, the Adviser and the Sub-Adviser. Throughout the year, the Adviser and the Sub-Adviser provided information on the investment performance of the Fund, the Adviser and the Sub-Adviser, including comparative performance information. The Board also reviewed information, prepared by the Adviser, the Sub-Adviser and the independent consultant, comparing the Fund’s historical performance to its benchmarks and to the performance of other retail foreign large blend funds. The Board noted that the Fund’s one-year, three-year and five-year performance was better than its category median.

Costs of Services by the Adviser. The Board reviewed the fees paid to the Adviser and the other expenses borne by the Fund. The Board noted that the Fund will not pay a direct management fee but that the Fund indirectly bears its share of the management fees of the Underlying Funds. The Board also considered the comparability of the fees charged and the services provided to the Fund to the fees and services for other clients or accounts advised by the Adviser. The independent consultant provided comparative data in regard to the fees and expenses of the Fund and other retail front-end load foreign large blend funds with comparable asset levels and distribution features. The Board considered that the Fund does not pay contractual management fees, although other funds in its peer group and category do have such fees. The Board also considered that the Fund’s total expenses were higher than its peer group median and category median.

Economies of Scale and Profits Realized by the Adviser and Sub-Adviser. The Board considered information regarding the Managers’ costs in serving as the Fund’s investment adviser and sub-adviser, including the costs associated with the personnel and systems necessary to manage the Fund, and information regarding the Managers’ profitability from their relationship with the Fund. The Board reviewed whether the Manager may realize economies of scale in managing and supporting the Fund and the Underlying Funds, and the extent to which those economies of scale would benefit the Fund’s shareholders.

Other Benefits to the Managers. In addition to considering the profits realized by the Managers, the Board considered information that was provided regarding the direct and indirect benefits the Managers receive as a result of their relationship with the Fund, including compensation paid to the Managers’ affiliates and research provided to the Adviser in connection with permissible brokerage arrangements (soft dollar arrangements). The Board also considered that the Managers must be able to pay and retain experienced professional personnel at competitive rates to provide quality services to the Fund.

 

42    OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND


Conclusions. These factors were also considered by the independent Trustees meeting separately from the full Board, assisted by experienced counsel to the Fund and to the independent Trustees. Fund counsel and the independent Trustees’ counsel are independent of the Managers within the meaning and intent of the Securities and Exchange Commission Rules.

Based on its review of the information it received and its evaluations described above, the Board, including a majority of the independent Trustees, decided to continue the Agreements through September 30, 2014. In arriving at its decision, the Board did not identify any factor or factors as being more important than others, but considered all of the above information, and considered the terms and conditions of the Agreements, including the management fees, in light of all the surrounding circumstances.

 

43    OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND


SPECIAL SHAREHOLDER MEETING    Unaudited

 

On June 21, 2013, a first shareholder meeting of Oppenheimer International Diversified (the “Fund”) was held at which the twelve Trustees identified below were elected to the Fund (Proposal No. 1) as described in the Fund’s proxy statement dated April 12, 3012 (the “Proxy Statement”). The following is a report of the votes cast:

 

Nominee/Proposal

   For      Withheld  

Trustees

     

Brian F. Wruble

     132,378,723         2,156,810   

David K. Downes

     132,307,028         2,228,505   

Matthew P. Fink

     132,354,463         2,186,070   

Edmund Giambastiani, Jr.

     132,459,790         2,075,743   

Phillip A. Griffiths

     132,301,206         2,234,327   

Mary F. Miller

     132,567,272         1,968,261   

Joel W. Motley

     132,489,175         2,046,358   

Joanne Pace

     132,683,809         1,851,724   

Mary Ann Tynan

     132,548,974         1,986,558   

Joseph M. Wikler

     132,354,991         2,180,542   

Peter I. Wold

     132,524,010         2,011,523   

William F. Glavin, Jr.

     132,525,543         2,009,990   

On September 27, 2013, following an adjournment from a second shareholder meeting held on June 21, 2013, as adjourned to August 2, 2013 and August 12, 2013, a meeting of the Fund was held at which the sub-proposals below (Proposal No. 2 (including certain of its sub-proposals)) and an Agreement and Plan of Reorganization to reorganize the Fund into a Delaware statutory trust (Proposal No. 3) were approved as described in the Fund’s Proxy Statement. The following is a report of the votes cast:

Proposal 2: To approve changes in, or the removal of, certain fundamental investment policies/investment objectives.

2a: Proposal to revise the fundamental policy relating to borrowing

 

For

   Against      Abstain  

65,883,572

     3,132,085         18,119,315   

2b-1: Proposal to revise the fundamental policy relating to concentration of investments

 

For

   Against      Abstain  

66,141,246

     2,916,654         18,077,069   

2c-1: Proposal to remove the fundamental policy relating to diversification of investments

 

For

   Against      Abstain  

65,615,151

     3,292,355         18,227,464   

2d: Proposal to revise the fundamental policy relating to lending

 

For

   Against      Abstain  

65,710,673

     3,221,335         18,202,966   

2e: Proposal to remove the additional fundamental policy relating to estate and commodities

 

For

   Against      Abstain  

66,049,647

     2,888,328         18,196,995   

2f: Proposal to revise the fundamental policy relating to senior securities

 

For

   Against      Abstain  

65,802,694

     2,999,318         18,332,966   

 

44    OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND


2g: Proposal to remove the additional fundamental policy relating to underwriting

 

For

   Against      Abstain  

65,801,123

     2,996,871         18,336,979   

Proposal 3: To approve an Agreement and Plan of Reorganization that provides for the reorganization of a Fund from a Maryland corporation or Massachusetts business trust, as applicable, into a Delaware statutory trust.

 

For

   Against      Abstain

66,512,359

     2,417,077       18,205,537

 

45    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.CALL OPP (225.5677), (ii) on the Fund’s website at 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.CALL OPP (225.5677), 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.

 

46    OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND


OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND

 

Trustees and Officers    Brian F. Wruble, Chairman of the Board of Trustees and Trustee
   David K. Downes, Trustee
   Matthew P. Fink, Trustee
   Edmund P. Giambastiani, Jr., Trustee
   Phillip A. Griffiths, Trustee
   Mary F. Miller, Trustee
   Joel W. Motley, Trustee
   Joanne Pace, Trustee
   Mary Ann Tynan, Trustee
   Joseph M. Wikler, Trustee
   Peter I. Wold, Trustee
   William F. Glavin, Jr., Trustee, President and Principal Executive Officer
   George R. Evans, Vice President
   Arthur S. Gabinet, Secretary and Chief Legal Officer
   Christina M. Nasta, Vice President and Chief Business Officer
   Mark S. Vandehey, Vice President and Chief Compliance Officer
   Brian W. Wixted, Treasurer and Principal Financial & Accounting Officer
Manager    OFI Global Asset Management, Inc.
Sub-Adviser    OppenheimerFunds, Inc.
Distributor    OppenheimerFunds Distributor, Inc.

Transfer and Shareholder

Servicing Agent

   OFI Global Asset Management, Inc.
Sub-Transfer Agent   

Shareholder Services, Inc.

DBA OppenheimerFunds Services

Independent Registered Public Accounting Firm    KPMG LLP
Legal Counsel    Kramer Levin Naftalis & Frankel LLP
   The financial statements included herein have been taken from the records of the Fund without examination of those records by the independent registered public accounting firm.

© 2013 OppenheimerFunds, Inc. All rights reserved.

 

47    OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND


PRIVACY POLICY NOTICE

 

As an Oppenheimer fund shareholder, you are entitled to know how we protect your personal information and how we limit its disclosure.

Information Sources

We obtain nonpublic personal information about our shareholders from the following sources:

 

    Applications or other forms

 

    When you create a user ID and password for online account access

 

    When you enroll in eDocs Direct, our electronic document delivery service

 

    Your transactions with us, our affiliates or others

 

    A software program on our website, often referred to as a “cookie,” which indicates which parts of our site you’ve visited

 

    When you set up challenge questions to reset your password online

If you visit oppenheimerfunds.com and do not log on to the secure account information areas, we do not obtain any personal information about you. When you do log on to a secure area, we do obtain your user ID and password to identify you. We also use this information to provide you with products and services you have requested, to inform you about products and services that you may be interested in and assist you in other ways.

We do not collect personal information through our website unless you willingly provide it to us, either directly by email or in those areas of the website that request information. In order to update your personal information (including your mailing address, email address and phone number) you must first log on and visit your user profile.

If you have set your browser to warn you before accepting cookies, you will receive the warning message with each cookie. You can refuse cookies by turning them off in your browser. However, doing so may limit your access to certain sections of our website.

We use cookies to help us improve and manage our website. For example, cookies help us recognize new versus repeat visitors to the site, track the pages visited, and enable some special features on the website. This data helps us provide a better service for our website visitors.

Protection of Information

We do not disclose any non-public personal information (such as names on a customer list) about current or former customers to anyone, except as permitted by law.

Disclosure of Information

We send your financial advisor (as designated by you) copies of confirmations, account statements and other documents reporting activity in your fund accounts. We may also use details about you and your investments to help us, our financial service affiliates, or firms that jointly market their financial products and services with ours, to better serve your investment needs or suggest financial services or educational material that may be of interest to you. If this requires us to provide you with an opportunity to “opt in” or “opt out” of such information sharing with a firm not affiliated with us, you will receive notification on how to do so, before any such sharing takes place.

Right of Refusal

We will not disclose your personal information to unaffiliated third parties (except as permitted by law), unless we first offer you a reasonable opportunity to refuse or “opt out” of such disclosure.

 

48    OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND


Internet Security and Encryption

In general, the email services provided by our website are encrypted and provide a secure and private means of communication with us. To protect your own privacy, confidential and/or personal information should only be communicated via email when you are advised that you are using a secure website. As a security measure, we do not include personal or account information in non-secure emails, and we advise you not to send such information to us in non-secure emails. Instead, you may take advantage of the secure features of our website to encrypt your email correspondence. To do this, you will need to use a browser that supports Secure Sockets Layer (SSL) protocol.

We do not guarantee or warrant that any part of our website, including files available for download, are free of viruses or other harmful code. It is your responsibility to take appropriate precautions, such as use of an anti-virus software package, to protect your computer hardware and software.

 

    All transactions, including redemptions, exchanges and purchases, are secured by SSL and 128-bit encryption. SSL is used to establish a secure connection between your PC and OppenheimerFunds’ server. It transmits information in an encrypted and scrambled format.

 

    Encryption is achieved through an electronic scrambling technology that uses a “key” to code and then decode the data. Encryption acts like the cable converter box you may have on your television set. It scrambles data with a secret code so that no one can make sense of it while it is being transmitted. When the data reaches its destination, the same software unscrambles the data.

 

    You can exit the secure area by either closing your browser, or for added security, you can use the Log Out button before you close your browser.

Other Security Measures

We maintain physical, electronic and procedural safeguards to protect your personal account information. Our employees and agents have access to that information only so that they may offer you products or provide services, for example, when responding to your account questions.

How You Can Help

You can also do your part to keep your account information private and to prevent unauthorized transactions. If you obtain a user ID and password for your account, do not allow it to be used by anyone else. Also, take special precautions when accessing your account on a computer used by others.

Who We Are

This joint notice describes the privacy policies of the Oppenheimer funds, OppenheimerFunds, Inc., and each of its investment adviser subsidiaries, OppenheimerFunds Distributor, Inc. and OFI Global Trust Co. It applies to all Oppenheimer fund accounts you presently have, or may open in the future, using your Social Security number—whether or not you remain a shareholder of our funds. This notice was last updated November 2013. In the event it is updated or changed, we will post an updated notice on our website at oppenheimerfunds.com. If you have any questions about these privacy policies, write to us at P.O. Box 5270, Denver, CO 80217-5270, email us by clicking on the Contact Us section of our website at oppenheimerfunds.com or call us
at 1.800.CALL OPP (225.5677).

 

49    OPPENHEIMER INTERNATIONAL DIVERSIFIED FUND


LOGO


Item 2. Code of Ethics.

Not applicable to semiannual reports.

Item 3. Audit Committee Financial Expert.

Not applicable to semiannual reports.

Item 4. Principal Accountant Fees and Services.

Not applicable to semiannual reports.

Item 5. Audit Committee of Listed Registrants

Not applicable.

Item 6. Schedule of Investments.

a) Not applicable. The complete schedule of investments is included in Item 1 of this Form N-CSR.

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

None


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 10/31/2013, the registrant’s principal executive officer and principal financial officer found the registrant’s disclosure controls and procedures to provide reasonable assurances that information required to be disclosed by the registrant in the reports that it files under the Securities Exchange Act of 1934 (a) is accumulated and communicated to registrant’s management, including its principal executive officer and principal financial officer, to allow timely decisions regarding required disclosure, and (b) is recorded, processed, summarized and reported, within the time periods specified in the rules and forms adopted by the U.S. Securities and Exchange Commission.

There have been no changes in the registrant’s internal controls over financial reporting that occurred during the registrant’s second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Exhibits.

 

(a) (1) Not applicable to semiannual reports.

(2) Exhibits attached hereto.

(3) Not applicable.

 

(b) Exhibit attached hereto.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Oppenheimer International Diversified Fund

 

By:  

/s/ William F. Glavin, Jr.

  William F. Glavin, Jr.
  Principal Executive Officer
Date:   12/9/2013

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By:  

/s/ William F. Glavin, Jr.

  William F. Glavin, Jr.
  Principal Executive Officer
Date:   12/9/2013

 

By:  

/s/ Brian W. Wixted

  Brian W. Wixted
  Principal Financial Officer
Date:   12/9/2013
EX-99.CERT 2 d624920dex99cert.htm SECTION 302 CERTIFICATIONS Section 302 Certifications

Exhibit 99.CERT

Section 302 Certifications

CERTIFICATIONS

I, William F. Glavin, Jr., certify that:

 

1. I have reviewed this report on Form N-CSR of Oppenheimer International Diversified Fund;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

 

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

 

  (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

  (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

  (c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

 

  (d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and


5. The registrant’s other certifying officer and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of Trustees (or persons performing the equivalent functions):

 

  (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

 

  (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: 12/9/2013

 

/s/ William F. Glavin, Jr.

William F. Glavin, Jr.
Principal Executive Officer


Exhibit 99.CERT

Section 302 Certifications

CERTIFICATIONS

I, Brian W. Wixted, certify that:

 

1. I have reviewed this report on Form N-CSR of Oppenheimer International Diversified Fund;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

 

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

 

  (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

  (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

  (c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

 

  (d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and


5. The registrant’s other certifying officer and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of Trustees (or persons performing the equivalent functions):

 

  (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

 

  (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: 12/9/2013

 

/s/ Brian W. Wixted

Brian W. Wixted
Principal Financial Officer
EX-99.906CERT 3 d624920dex99906cert.htm SECTION 906 CERTIFICATIONS Section 906 Certifications

EX-99.906CERT

Section 906 Certifications

CERTIFICATION PURSUANT TO 18 U.S.C SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

William F. Glavin, Jr., Principal Executive Officer, and Brian W. Wixted, Principal Financial Officer, of Oppenheimer International Diversified Fund (the “Registrant”), each certify to the best of his knowledge that:

 

1. The Registrant’s periodic report on Form N-CSR for the period ended 10/31/2013 (the “Form N-CSR”) fully complies with the requirements of Section 15(d) of the Securities Exchange Act of 1934, as amended; and

 

2. The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant. This certification is being furnished to the Commission solely pursuant to 18 U.S.C. § 1350 and is not being filed as part of the Form N-CSR filed with the Commission.

 

Principal Executive Officer       Principal Financial Officer
Oppenheimer International Diversified Fund       Oppenheimer International Diversified Fund

 

/s/ William F. Glavin, Jr.

    

/s/ Brian W. Wixted

William F. Glavin, Jr.      Brian W. Wixted
Date: 12/9/2013      Date: 12/9/2013
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