Oppenheimer Emerging Markets Local Debt Fund

N-CSR 1 d19493dncsr.htm OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND Oppenheimer Emerging Markets Local Debt 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 811-22400

Oppenheimer Emerging Markets Local Debt 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.

225 Liberty Street, 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: May 31

Date of reporting period: 5/29/2015

Item 1.

Reports to Stockholders.

LOGO

Table of Contents


Fund Performance Discussion			3

Top Holdings and Allocations			6

Fund Expenses			9

Statement of Investments			11

Statement of Assets and Liabilities			20

Statement of Operations			22

Statements of Changes in Net Assets			24

Financial Highlights			26

Notes to Financial Statements			31

Report of Independent Registered Public Accounting Firm			53

Federal Income Tax Information			54

Portfolio Proxy Voting Policies and Procedures; Updates to Statement of Investments			55

Trustees and Officers			56

Privacy Policy Notice			62

Class A Shares

AVERAGE ANNUAL TOTAL RETURNS AT 5/29/15*


	Class A Shares of the Fund
	Without Sales Charge	With Sales Charge	J.P. Morgan Government Bond Index - Emerging Markets Global Diversified
1-Year	-11.49%	-15.69%	-13.49%

Since Inception (6/30/10)	0.62	-0.37	1.21

*May 29, 2015, was the last business day of the Fund’s fiscal year end. See Note 2 of the accompanying Notes to Financial Statements. Index returns are calculated through May 31, 2015.

2 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

Fund Performance Discussion

The Fund’s Class A shares (without sales charge) produced a return of -11.49% during the reporting period. On a relative basis, the J.P. Morgan Government Bond Index—Emerging Markets Global Diversified (the “Index”) returned -13.49%. Although emerging market debt experienced declines this reporting period, the Fund outperformed the Index due largely to its underweight positions in Russia and Poland.

MARKET OVERVIEW

In 2014, the U.S. Federal Reserve (the “Fed”) began reducing its monthly purchases of U.S. government Treasuries and mortgage-backed securities (“MBS”) in steady $10 billion increments, and completed the process at the end of October, thereby ending the quantitative easing (“QE”) program’s purchases. While economic growth in the U.S. remained largely on track, it slowed in other areas, including Europe, and parts of both Latin America and Asia Pacific. Interest rates in core Europe dropped significantly, and turned negative in many cases. The U.S.

dollar rallied strongly against most other currencies. In many cases, the large move in currencies represented buying of the U.S. dollar due to a positive U.S. economic outlook compared to weakening growth prospects elsewhere, in addition to anticipated higher rates in the U.S. The euro was challenged by persistent weakness in Europe and elevated concerns about deflation. Other nations faced headwinds as well. Japan’s economy remained moribund and falling commodity prices pressured natural resource exporters such as Brazil,

COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:

LOGO

3 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

Russia and Australia. Russia was also under pressure due to sanctions related to hostilities in eastern Ukraine and Crimea, and the precipitous drop in oil prices. Even countries with positive economic fundamentals saw their currencies drop versus the dollar.

The opening months of 2015 were marked by cooling

U.S. growth after the strong fourth quarter of 2014. The dollar continued to strengthen significantly during this time against most of the U.S.’s major trading partners, which acted as a drag on growth. Businesses, especially U.S. firms with revenues dependent on exporting goods and services, cited this as a headwind. European Central Bank (“ECB”) President Mario Draghi announced the purchase of €60 billion a month in sovereign bonds from Eurozone countries for at least 19 months, a form of QE that is projected to increase the ECB’s balance sheet by over €1 trillion. The announcement and implementation of these extraordinary monetary policies had a significant impact on financial markets, with European markets rallying and the euro falling against most major trading partners. Although emerging market local debt continued to experience declines in 2015, the losses were not as significant as they were in 2014. Fed Chairwoman Janet Yellen reaffirmed that the Fed plans to raise U.S. rates during 2015 despite any near-term weakness in first quarter Gross Domestic Product and employment growth. The Fed has made it clear, however, that it will remain flexible on the timing and extent of rate hikes for the remainder of 2015.

FUND REVIEW

During the reporting period, emerging markets local debt as a whole experienced negative results, declining against the U.S. dollar, which strengthened following the close of the Fed’s QE program. While producing negative absolute results, the Fund outperformed the Index.

The Fund’s outperformance versus the Index was driven by its underweight exposure to Russia, which experienced ongoing geopolitical risk, including increased sanctions related to Ukraine, high inflation rates and a weak ruble. An underweight position in Poland versus the Index also contributed positively to the Fund’s relative performance. Polish bonds had a tumultuous period, due partly to uncertainty that emerged after opposition candidate Andrzej Duda won the country’s presidential election. It was the first victory for Mr. Duda’s party in nearly a decade. Also benefiting the Fund’s performance this reporting period were short positions in the Israeli shekel, Brazilian real and Colombian peso.

Detracting from the Fund’s performance was an overweight position in South Korea relative to the Index. South Korea was hampered by lower oil prices and weak global demand during the reporting period, which negatively impacted the Fund’s investments. In addition, our short duration stance in the U.S. detracted from performance. Overall, the Fund’s average duration at period end was 5.5 years, compared to the Index’s average duration of 5.0.

4 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

STRATEGY & OUTLOOK

Emerging market countries have become highly differentiated, and we continue to believe the further removal of extraordinary monetary policy in the U.S. may affect a number of emerging market economies negatively. However, not all emerging market countries are experiencing fragilities; we are finding idiosyncratic opportunities in countries that are either benefiting from lower

commodity prices or have repriced based on local stories. Overall, we believe few countries face structural problems. As the U.S. interest rate cycle plays out, we will continuously examine whether or not emerging market policymakers are taking necessary steps to contain possible volatility either through higher yields or through strong structural stories.

LOGO

Hemant Baijal

Portfolio Manager

5 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

Top Holdings and Allocations*

TOP TEN GEOGRAPHICAL HOLDINGS


Brazil		11.7%
Turkey		11.0
South Africa		10.0
Colombia		8.5
Indonesia		8.5
Russia		7.8
Mexico		6.8
Thailand		4.7
Poland		4.6
Malaysia		4.6

Portfolio holdings and allocation are subject to change. Percentages are as of May 29, 2015, and are based on total market value of investments.

PORTFOLIO ALLOCATION


Foreign Government Obligations			76.9%
Corporate Bonds and Notes			19.6
Short-Term Notes			3.1
Investment Company
Oppenheimer Institutional Money Market Fund			0.4
Over-the-Counter Options Purchased			—**

**	Less than 0.05%.

Portfolio holdings and allocations are subject to change. Percentages are as of May 29, 2015, and are based on the total market value of investments.


CREDIT RATING BREAKDOWN			NRSRO ONLY TOTAL
AAA			2.4%
AA			1.1
A			21.2
BBB			58.3
BB			11.1
B			3.0
CCC			0.5
Unrated			2.4
Total			100.0%

The percentages above are based on the market value of the Fund’s securities as of May 29, 2015, and are subject to change. Except for securities labeled “Unrated,” and except for certain securities issued or guaranteed by a foreign sovereign, all securities have been rated by at least one Nationally Recognized Statistical Rating Organization (“NRSRO”), such as Standard & Poor’s (“S&P”). For securities rated only by an NRSRO other than S&P, OppenheimerFunds, Inc. (the “Sub-Adviser”) converts that rating to the equivalent S&P rating. If two or more NRSROs have assigned a rating to a security, the highest S&P equivalent rating is used. Unrated securities issued or guaranteed by a foreign sovereign are assigned a credit rating equal to the highest NRSRO rating assigned to that foreign sovereign. For securities not rated by an NRSRO, the Sub-Adviser uses its own credit analysis to assign ratings in categories similar to those of S&P. The use of similar categories is not an indication that the Sub-Adviser’s credit analysis process is consistent or comparable with any NRSRO’s process were that NRSRO to rate the same security. Fund assets invested in Oppenheimer Institutional Money Market Fund are assigned that fund’s S&P rating, which is currently AAA. For the purposes of this table, “investment-grade” securities are securities rated within the NRSROs’ four highest rating categories (AAA, AA, A and BBB). Unrated securities do not necessarily indicate low credit quality, and may or may not be the equivalent of investment-grade. Please consult the Fund’s prospectus and Statement of Additional Information for further information.

*May 29, 2015, was the last business day of the Fund’s fiscal year end. See Note 2 of the accompanying Notes to Financial Statements.

6 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

Share Class Performance

AVERAGE ANNUAL TOTAL RETURNS WITHOUT SALES CHARGE AS OF 5/29/15*


	Inception Date	1-Year	Since Inception
Class A (OEMAX)	6/30/10	-11.49%	0.62%
Class C (OEMCX)	6/30/10	-12.15%	-0.14%
Class I (OEMIX)	9/28/12	-11.15%	-5.12%
Class R (OEMNX)	6/30/10	-11.71%	0.37%
Class Y (OEMYX)	6/30/10	-11.24%	0.89%

AVERAGE ANNUAL TOTAL RETURNS WITH SALES CHARGE AS OF 5/29/15*
	Inception Date	1-Year	Since Inception
Class A (OEMAX)	6/30/10	-15.69%	-0.37%
Class C (OEMCX)	6/30/10	-12.99%	-0.14%
Class I (OEMIX)	9/28/12	-11.15%	-5.12%
Class R (OEMNX)	6/30/10	-12.55%	0.37%
Class Y (OEMYX)	6/30/10	-11.24%	0.89%

STANDARDIZED YIELDS


For the 30 Days Ended 5/31/15

Class A		4.96%

Class C		4.47

Class I		5.63

Class R		4.96

Class Y		5.53

*May 29, 2015, was the last business day of the Fund’s fiscal year end. See Note 2 of the accompanying Notes to Financial Statements.

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 4.75%; and for Class C shares, the 1% contingent deferred sales charge for the 1-year period. Prior to 7/1/14, Class R shares were named Class N shares. Beginning 7/1/14, new purchases of Class R shares will no longer be subject to a CDSC upon redemption (any CDSC will remain in effect for purchases prior to 7/1/14). There is no sales charge for Class I and Class Y shares. Returns for periods of less than one year are cumulative and not annualized.

7 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

Standardized yield is based on net investment income for the 30-day period ended 5/31/15 and the maximum offering price at the end of the period for Class A shares and the net asset value for Class C, Class R, Class I and Class Y shares. Each result is compounded semiannually and then annualized. Falling share prices will tend to artificially raise yields.

The Fund’s performance is compared to the performance of the J.P. Morgan Government Bond Index - Emerging Markets Global Diversified. The J.P. Morgan Government Bond Index - Emerging Markets Global Diversified is a comprehensive, global local Emerging Markets Index, and consists of regularly traded, liquid fixed-rate, domestic currency government bonds to which international investors can gain exposure. The Index is unmanaged and cannot be purchased directly by investors. While index comparisons may be useful to provide a benchmark for the Fund’s performance, it must be noted that the Fund’s investments are not limited to the investments comprising the Index. Index performance includes reinvestment of income, but does not reflect transaction costs, fees, expenses or taxes. Index performance is shown for illustrative 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.

8 OPPENHEIMER EMERGING MARKETS LOCAL DEBT 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 and/or 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 May 29, 2015.

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 6 Months Ended May 29, 2015” 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 Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example for the class of shares you hold with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front-end or contingent deferred sales charges (loads). 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.

9 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND


Actual	Beginning Account Value December 1, 2014		Ending Account Value May 29, 2015		Expenses Paid During 6 Months Ended May 29, 2015

Class A	$	1,000.00	$	917.80	$	5.88

Class C		1,000.00		913.30		9.44

Class I		1,000.00		918.50		3.98

Class R		1,000.00		916.70		7.07

Class Y		1,000.00		918.00		4.50

Hypothetical
(5% return before expenses)

Class A		1,000.00		1,018.54		6.19

Class C		1,000.00		1,014.84		9.93

Class I		1,000.00		1,020.52		4.19

Class R		1,000.00		1,017.31		7.44

Class Y		1,000.00		1,019.97		4.74

Expenses are equal to the Fund’s annualized expense ratio for that class, multiplied by the average account value over the period, multiplied by 180/365 (to reflect the one-half year period). Those annualized expense ratios, excluding indirect expenses from affiliated funds, based on the 6-month period ended May 29, 2015 are as follows:


Class	Expense Ratios
Class A		1.24%
Class C		1.99
Class I		0.84
Class R		1.49
Class Y		0.95

The expense ratios reflect voluntary and/or contractual waivers and/or reimbursements of expenses by the Fund’s Manager. 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.

10 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

STATEMENT OF INVESTMENTS May 29, 2015*


		Principal Amount		Value

Foreign Government Obligations—75.5%

Brazil—8.5%
Federative Republic of Brazil Nota Do Tesouro Nacional Sr. Unsec. Nts., 9.762%, 1/1/17	BRL		4,895,000	$	1,467,429

Federative Republic of Brazil Nota Do Tesouro Nacional Unsec. Nts.:
9.762%, 1/1/18	BRL		1,055,000		312,163
9.762%, 1/1/21	BRL		825,000		235,798
10.00%, 1/1/23	BRL		1,700,000		477,509
10.00%, 1/1/25	BRL		810,000		224,214

Federative Republic of Brazil Unsec. Bonds, 12.355%, 1/1/16¹	BRL		5,400,000		1,569,295

					4,286,408


Chile—0.1%
Republic of Chile International Bonds, 5.50%, 8/5/20	CLP		30,000,000		51,721


Colombia—6.9%
Republic of Colombia Sr. Unsec. Bonds:
7.00%, 9/11/19	COP		3,080,000,000		1,285,802
7.75%, 9/18/30	COP		900,000,000		361,886

Republic of Colombia Sr. Unsec. Nts.:
Series B, 7.00%, 5/4/22	COP		1,880,000,000		765,348
Series B, 10.00%, 7/24/24	COP		2,221,000,000		1,060,742

					3,473,778


Ecuador—0.1%
Republic of Ecuador International Bonds, 10.50%, 3/24/20²			30,000		31,650


Hungary—4.5%
Hungary Unsec. Bonds:
Series 20/A, 7.50%, 11/12/20	HUF		303,000,000		1,323,801
Series 23/A, 6.00%, 11/24/23	HUF		228,000,000		965,026

					2,288,827


Indonesia—8.3%
Republic of Indonesia Treasury Bonds:
Series FR68, 8.375%, 3/15/34	IDR		14,820,000,000		1,125,879
Series FR70, 8.375%, 3/15/24	IDR		19,460,000,000		1,495,656
Series FR71, 9.00%, 3/15/29	IDR		19,830,000,000		1,585,830

					4,207,365


Malaysia—4.5%
Federation of Malaysia Bonds, 3.835%, 8/12/15	MYR		8,440,000		2,306,125


Mexico—4.3%
United Mexican States Unsec. Bonds:
Series M, 8.00%, 12/7/23	MXN		3,580,000		264,069
Series M20, 8.50%, 5/31/29	MXN		16,030,000		1,252,302
Series M30, 8.50%, 11/18/38	MXN		5,540,000		438,086
Series M30, 10.00%, 11/20/36	MXN		2,600,000		233,979

					2,188,436


Nigeria—1.7%
Federal Republic of Nigeria Unsec. Bonds, 16.39%, 1/27/22	NGN		155,000,000		865,913

11 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

STATEMENT OF INVESTMENTS Continued


		Principal Amount		Value

Peru—1.8%
Republic of Peru Sr. Unsec. Bonds:
7.84%, 8/12/20²	PEN		1,100,000	$	392,602
8.20%, 8/12/26²	PEN		1,400,000		509,212

					901,814


Poland—4.6%
Republic of Poland Bonds, Series 1015, 6.25%, 10/24/15	PLN		8,480,000		2,307,226


Romania—2.5%
Romania Unsec. Bonds:
3.25%, 1/17/18	RON		1,700,000		435,949
5.75%, 4/29/20	RON		1,600,000		451,531
5.85%, 4/26/23	RON		1,390,000		403,311

					1,290,791


Russia—4.2%
Agency for Housing Mortgage Lending OJSC Via AHML Finance Ltd. Unsec. Nts., 7.75%, 2/13/18²	RUB		6,700,000		113,843

Russian Federation Unsec. Bonds:
Series 6203, 6.90%, 8/3/16	RUB		30,000,000		551,610
Series 6205, 7.60%, 4/14/21	RUB		4,600,000		76,923
Series 6206, 7.40%, 6/14/17	RUB		32,400,000		585,408
Series 6209, 7.60%, 7/20/22	RUB		4,000,000		65,630
Series 6210, 6.80%, 12/11/19	RUB		3,000,000		49,680
Series 6212, 7.05%, 1/19/28	RUB		17,000,000		252,152
Series 6215, 7.00%, 8/16/23	RUB		10,500,000		164,360
Series 6216, 6.70%, 5/15/19	RUB		17,500,000		294,645

					2,154,251


South Africa—9.8%
Republic of South Africa Sr. Unsec. Bonds, Series R208, 6.75%, 3/31/21	ZAR		7,100,000		556,892

Republic of South Africa Unsec. Bonds:
Series 2023, 7.75%, 2/28/23	ZAR		4,400,000		357,537
Series 2030, 8.00%, 1/31/30	ZAR		21,000,000		1,648,115
Series R186, 10.50%, 12/21/26	ZAR		24,800,000		2,404,859

					4,967,403


South Korea—1.0%
Republic of South Korea Treasury Bonds, 2.75%, 12/10/15	KRW		550,000,000		499,028


Thailand—4.6%
Kingdom of Thailand Sr. Unsec. Bonds:
3.625%, 6/16/23	THB		31,300,000		995,393
3.875%, 6/13/19	THB		21,600,000		688,395
5.125%, 3/13/18	THB		20,100,000		652,526

					2,336,314


Turkey—8.1%
Republic of Turkey Bonds:
8.20%, 7/13/16	TRY		1,400,000		517,944
8.50%, 7/10/19	TRY		1,100,000		404,858
8.80%, 11/14/18	TRY		1,040,000		387,246
8.80%, 9/27/23	TRY		1,850,000		686,427
10.40%, 3/20/24	TRY		1,080,000		439,469

12 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND


		Principal Amount		Value

Turkey (Continued)
Republic of Turkey Bonds: (Continued)
10.50%, 1/15/20	TRY		655,000	$	260,356

Republic of Turkey Unsec. Bonds:
6.30%, 2/14/18	TRY		1,550,000		542,672
7.10%, 3/8/23	TRY		1,370,000		460,024
9.00%, 3/8/17	TRY		350,000		130,771
9.00%, 7/24/24	TRY		775,000		291,865

					4,121,632

Total Foreign Government Obligations (Cost $42,531,440)					38,278,682


Corporate Bonds and Notes—19.2%

Consumer Discretionary—0.5%

Household Durables—0.2%

Arcelik AS, 5% Sr. Unsec. Nts., 4/3/23²			120,000		115,900

Media—0.3%

VTR Finance BV, 6.875% Sr. Sec. Nts., 1/15/24²			140,000		146,125

Energy—1.8%

Oil, Gas & Consumable Fuels—1.8%

Cosan Luxembourg SA, 5% Sr. Unsec. Nts., 3/14/23²			290,000		274,678

Gazprom OAO Via Gaz Capital SA, 4.95% Sr. Unsec. Nts., 7/19/22²			290,000		273,687

Pacific Rubiales Energy Corp., 5.625% Sr. Unsec. Nts., 1/19/25²			120,000		96,600

YPF SA, 8.50% Sr. Unsec. Nts., 7/28/25²			260,000		266,422

					911,387


Financials—7.7%

Capital Markets—0.3%

Red de Carreteras de Occidente SAPIB de CV, 9% Sr. Sec. Nts., 6/10/28²	MXN		2,300,000		145,985


Commercial Banks—5.1%

Akbank TAS, 7.50% Sr. Unsec. Nts., 2/5/18²	TRY		595,000		203,019

Banco ABC Brasil SA:
7.875% Sub. Nts., 4/8/20²			210,000		219,975
8.50% Sr. Unsec. Nts., 3/28/16²	BRL		145,000		44,028

Banco Santander Brasil SA (Cayman Islands), 8% Sr. Unsec. Unsub. Nts., 3/18/16²	BRL		370,000		111,477

Bancolombia SA, 5.125% Unsec. Sub. Nts., 9/11/22			250,000		256,850

CorpGroup Banking SA, 6.75% Sr. Unsec. Nts., 3/15/23²			250,000		247,103

ICICI Bank Ltd., 6.375% Jr. Sub. Nts., 4/30/22^2,3			230,000		238,979

Moon Wise Global Ltd., 9% Sub. Perpetual Bonds^3,4			225,000		240,244

Turkiye Is Bankasi, 9.123% Unsec. Nts., 7/6/15¹	TRY		2,500,000		930,924

Turkiye Vakiflar Bankasi TAO, 6.875% Sub. Nts., 2/3/25^2,3			120,000		119,964

					2,612,563


Diversified Financial Services—1.1%

Banco BTG Pactual SA (Cayman Islands), 5.75% Sub. Nts., 9/28/22²			260,000		243,750

InRetail Consumer, 5.25% Sr. Unsec. Nts., 10/10/21²			50,000		52,125

Intercorp Peru Ltd., 5.875% Sr. Unsec. Nts., 2/12/25²			260,000		262,210

					558,085

13 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

STATEMENT OF INVESTMENTS Continued


		Principal Amount		Value

Real Estate Management & Development—1.2%

Jafz Sukuk Ltd., 7% Sr. Unsec. Nts., 6/19/19		$	160,000	$	184,141

Logan Property Holdings Co. Ltd., 11.25% Sr. Unsec. Nts., 6/4/19			220,000		225,598

Sukuk Funding No. 3 Ltd., 4.348% Sr. Unsec. Nts., 12/3/18			180,000		190,298

					600,037


Industrials—0.6%

Construction & Engineering—0.1%

Odebrecht Finance Ltd., 8.25% Sr. Unsec. Nts., 4/25/18²	BRL		110,000		27,499


Road & Rail—0.5%

CAR, Inc., 6.125% Sr. Unsec. Nts., 2/4/20²			260,000		268,450


Materials—4.3%

Construction Materials—1.6%

Cemex SAB de CV, 5.70% Sr. Sec. Nts., 1/11/25²			260,000		256,347

Elementia SAB de CV, 5.50% Sr. Unsec. Nts., 1/15/25²			270,000		275,737

Union Andina de Cementos SAA, 5.875% Sr. Unsec. Nts., 10/30/21²			260,000		266,175

					798,259


Metals & Mining—1.7%

ABJA Investment Co. Pte Ltd., 5.95% Sr. Unsec. Nts., 7/31/24			230,000		233,452

Metalloinvest Finance Ltd., 5.625% Unsec. Nts., 4/17/20²			180,000		164,880

OJSC Novolipetsk Steel via Steel Funding Ltd., 4.45% Sr. Unsec. Nts., 2/19/18²			180,000		176,643

Polyus Gold International Ltd., 5.625% Sr. Unsec. Nts., 4/29/20²			290,000		279,850

					854,825


Paper & Forest Products—1.0%

Fibria Overseas Finance Ltd., 5.25% Sr. Unsec. Nts., 5/12/24			250,000		259,400

Suzano Trading Ltd., 5.875% Sr. Unsec. Nts., 1/23/21²			250,000		263,625

					523,025


Telecommunication Services—4.1%

Diversified Telecommunication Services—1.4%

Colombia Telecomunicaciones SA ESP:
5.375% Sr. Unsec. Nts., 9/27/22²			150,000		152,625
8.50% Sub. Perpetual Bonds^2,3,4			150,000		158,775

Columbus International, Inc., 7.375% Sr. Unsec. Nts., 3/30/21²			240,000		261,000

Digicel Ltd., 6.75% Sr. Unsec. Nts., 3/1/23²			40,000		39,800

Oi SA, 9.75% Sr. Unsec. Nts., 9/15/16²	BRL		360,000		105,357

					717,557


Wireless Telecommunication Services—2.7%

Digicel Group Ltd., 7.125% Sr. Unsec. Nts., 4/1/22²			270,000		263,250

Millicom International Cellular SA, 6% Sr. Unsec. Nts., 3/15/25²			290,000		293,271

Mobile Telesystems OJSC via MTS International Funding Ltd., 5% Sr. Unsec. Nts., 5/30/23²			170,000		157,080

Sistema JSFC via Sistema International Funding SA, 6.95% Sr. Unsec. Nts., 5/17/19²			120,000		117,660

VimpelCom Holdings BV:
5.95% Sr. Unsec. Unsub. Nts., 2/13/23²			120,000		111,300
7.504% Sr. Unsec. Nts., 3/1/22²			180,000		183,150
9.00% Sr. Unsec. Nts., 2/13/18²	RUB		6,500,000		115,396

14 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

Principal Amount

Value

Wireless Telecommunication Services (Continued)

Vimpel-Communications OJSC, 10% Sr. Unsec. Nts., 3/8/22³

RUB

8,000,000

151,570

1,392,677

Utilities—0.2%

Electric Utilities—0.2%

Empresas Publicas de Medellin ESP, 8.375% Sr. Unsec. Nts., 2/1/21²

COP

214,000,000

89,904

Total Corporate Bonds and Notes (Cost $10,396,644)

9,762,278

Short-Term Notes—3.0%

United Mexican States Treasury Bills, 3.088%, 6/11/15¹

MXN

8,000,000

519,086

United States Treasury Bills, 0.066%, 10/22/15^1,5

1,000,000

999,930

Total Short-Term Notes (Cost $1,522,477)

1,519,016

Counterparty

Exercise
Price

Expiration
Date

Contracts

Over-the-Counter Option Purchased—0.0%

BRL Currency Call⁶

(Cost $102,192)

GSG

BRL

2.580

12/4/15

BRL

21,700,000

2,843

Shares

Investment Company—0.4%

Oppenheimer Institutional Money Market Fund, Cl. E, 0.14%^7,8 (Cost $185,580)

185,580

Total Investments, at Value (Cost $54,738,333)

98.1%

49,748,399

Net Other Assets (Liabilities)

1.9

939,131

Net Assets

100.0%

50,687,530

Footnotes to Statement of Investments

* May 29, 2015 represents the last business day of the Fund’s reporting period. See Note 2 of the accompanying Notes.

1. Zero coupon bond reflects effective yield on the date of purchase.

2. Represents securities sold under Rule 144A, which are exempt from registration under the Securities Act of 1933, as amended. These securities have been determined to be liquid under guidelines established by the Board of Trustees. These securities amount to $8,137,108 or 16.05% of the Fund’s net assets as of May 29, 2015.

3. Represents the current interest rate for a variable or increasing rate security.

4. This bond has no contractual maturity date, is not redeemable and contractually pays an indefinite stream of interest. Rate reported represents the current interest rate for this variable rate security.

5. All or a portion of the security position is held in segregated accounts and pledged to cover margin requirements under certain derivative contracts. The aggregate market value of such securities is $889,938. See Note 5 of the accompanying Notes.

6. Non-income producing security.

15 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

STATEMENT OF INVESTMENTS Continued

Footnotes to Statement of Investments (Continued)

7. Is or was an affiliate, as defined in the Investment Company Act of 1940, as amended, at or during the period ended May 29, 2015, 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 May 30, 2014^a		Gross Additions		Gross Reductions		Shares May 29, 2015

Oppenheimer Institutional Money Market Fund, Cl. E		—		67,997,180		67,811,600		185,580


	Value		Income

Oppenheimer Institutional Money Market Fund, Cl. E	$	185,580	$	3,494

a. May 30, 2014 represents the last business day of the Fund’s reporting period. See Note 2 of the accompanying Notes.

8. Rate shown is the 7-day yield as of May 29, 2015.

Distribution of investments representing geographic holdings, as a percentage of total investments at value, is as follows:


Geographic Holdings (Unaudited)	Value		Percent

Brazil	$	5,839,040		11.7%
Turkey		5,491,438		11.0
South Africa		4,967,403		10.0
Colombia		4,228,532		8.5
Indonesia		4,207,365		8.5
Russia		3,885,467		7.8
Mexico		3,385,592		6.8
Thailand		2,336,314		4.7
Poland		2,307,226		4.6
Malaysia		2,306,125		4.6
Hungary		2,288,827		4.6
Peru		1,482,324		3.0
Romania		1,290,791		2.6
United States		1,185,510		2.4
Nigeria		865,913		1.7
China		734,292		1.5
South Korea		499,028		1.0
India		472,431		1.0
Chile		444,949		0.9
United Arab Emirates		374,439		0.8
Jamaica		303,050		0.6
Luxembourg		293,271		0.6
Argentina		266,422		0.5
Barbados		261,000		0.5
Ecuador		31,650		0.1

Total	$	49,748,399		100.0%


Forward Currency Exchange Contracts as of May 29, 2015

Counterparty

Settlement

Month(s)

Currency
Purchased

(000’s)

Currency Sold
(000’s)

Unrealized

Appreciation

Unrealized

Depreciation

BAC

06/2015

BRL 4,030

USD 1,323

—

57,749

BAC

10/2015

INR 277,000

USD 4,268

—

39,155

16 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

Forward Currency Exchange Contracts (Continued)


Counterparty	Settlement Month(s)			Currency Purchased (000’s)			Currency Sold (000’s)		Unrealized Appreciation		Unrealized Depreciation
BAC		08/2015	PLN		6,530	USD		1,710	$	30,209	$	—
BAC		07/2015	RUB		62,000	USD		1,174		—		9,507
BAC		07/2015	USD		1,622	RUB		105,800		—		365,371
BOA		08/2015	THB		44,000	USD		1,297		7,530		—
BOA		08/2015	USD		497	IDR		6,753,000		—		4,814
BOA		10/2015	USD		3,586	INR		233,000		28,750		433
BOA		07/2015	USD		913	RON		3,620		18,033		—
CITNA-B		07/2015	ILS		11,290	USD		2,929		1,044		12,052
CITNA-B		06/2015	MXN		69,990	USD		4,670		—		126,045
CITNA-B		07/2015	RON		1,615	USD		426		—		26,768
CITNA-B		06/2015	USD		2,024	MXN		31,400		2,172		16,318
CITNA-B		07/2015	USD		1,338	TRY		3,450		56,819		—
DEU		08/2015	USD		1,110	ZAR		13,595		6,943		—
GSCO-OT		07/2015	BRL		9,230	USD		2,902		—		36,698
GSCO-OT		06/2015	USD		2,500	BRL		7,950		5,336		—
HSBC		07/2015	USD		1,275	ILS		4,950		—		4,073
JPM		06/2015	BRL		3,920	USD		1,336		—		105,702
JPM		01/2016	CNH		17,400	USD		2,829		—		66,178
JPM		08/2015	MYR		7,690	USD		2,114		—		22,242
JPM		08/2015	TRY		2,045	USD		767		—		17,310
JPM		01/2016	USD		1,767	BRL		5,400		190,285		—
JPM		01/2016	USD		2,716	CNH		17,400		—		46,947
JPM		08/2015	USD		1,023	COP		2,578,000		11,997		—
JPM		07/2015	USD		1,606	ILS		6,340		—		32,767
JPM		10/2015	USD		1,400	INR		92,000		—		4,107
JPM		08/2015	USD		509	KRW		559,000		6,100		—
JPM		06/2015	USD		622	MXN		9,300		18,434		—
NOM		08/2015	USD		302	HUF		86,000		—		2,852
TDB		07/2015	USD		1,336	BRL		4,000		94,320		—

Total Unrealized Appreciation and Depreciation									$	477,972	$	997,088

Over-the-Counter Currency Swaps at May 29, 2015

Counterparty

Pay/Receive
Floating Rate

Floating Rate

Fixed
Rate

Maturity
Date

Notional
Amount
Currency
Received

(000’s)

Notional
Amount
Currency
Delivered
(000’s)

Value

BOA

Pay

Six-Month USD
BBA LIBOR

7.100%

1/21/19

INR

43,500

USD

709

(1,770)

GSG

Pay

Six-Month USD
BBA LIBOR

7.210

1/13/19

INR

44,250

USD

712

12,514

GSG

Pay

Six-Month USD
BBA LIBOR

7.100

1/15/19

INR

43,750

USD

706

6,727

Total of Over-the-Counter Currency Swaps

17,471

17 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

STATEMENT OF INVESTMENTS Continued

Centrally Cleared Interest Rate Swaps at May 29, 2015

Counterparty

Pay/Receive
Floating
Rate

Floating Rate

Fixed Rate

Maturity
Date

Notional Amount
(000’s)

Value

BAC

Pay

Three-

Month

USD BBA

LIBOR

2.702%

6/18/24

USD

870

(50,862)

DEU

Pay

Three-

Month PLN

WIBOR

WIBO

1.940

5/13/17

PLN

38,000

2,857

GSG

Pay

Three-

Month

USD BBA

LIBOR

2.695

6/19/24

USD

870

(50,263)

GSG

Receive

Three-

Month

USD BBA

LIBOR

2.396

10/29/24

USD

440

(9,398)

JPM

Receive

Three-

Month

USD BBA

LIBOR

2.399

10/29/24

USD

410

(8,864)

Total of Centrally Cleared Interest Rate Swaps

(116,530)

Over-the-Counter Interest Rate Swaps at May 29, 2015

Counterparty

Pay/Receive
Floating
Rate

Floating Rate

Fixed Rate

Maturity
Date

Notional Amount
(000’s)

Value

BOA

Pay

Three-

Month

MYR

KLIBOR

4.510%

6/17/24

MYR

2,900

15,899

GSG

Pay

MXN TIIE

BANXICO

5.985

2/5/25

MXN

13,500

(13,701)

GSG

Pay

MXN TIIE

BANXICO

5.545

11/11/21

MXN

25,000

(14,668)

GSG

Pay

Three-

Month

MYR

KLIBOR

4.315

10/8/24

MYR

3,500

3,314

JPM

Pay

Three-

Month

MYR

KLIBOR

4.010

3/6/25

MYR

2,900

(18,079)

JPM

Pay

Three-

Month

COP IBR

OIS

6.090

10/29/24

COP

1,030,000

(4,169)

JPM

Pay

BZDI

13.490

1/2/17

BRL

50,400

36,430

MOS-A

Pay

Three-

Month

COP IBR

OIS

6.090

10/29/24

COP

1,060,000

(4,291)

Total of Over-the-Counter Interest Rate Swaps

735

18 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

Glossary:

Counterparty Abbreviations


BAC		Barclays Bank plc
BOA		Bank of America NA
CITNA-B		Citibank NA
DEU		Deutsche Bank AG
GSCO-OT		Goldman Sachs Bank USA
GSG		Goldman Sachs Group, Inc. (The)
HSBC		HSBC Bank USA NA
JPM		JPMorgan Chase Bank NA
MOS		Morgan Stanley & Co., Inc.
MOS-A		Morgan Stanley
NOM		Nomura Global Financial Products, Inc.
TDB		Toronto Dominion Bank

Currency abbreviations indicate amounts reporting in currencies


BRL		Brazilian Real
CLP		Chilean Peso
CNH		Offshore Chinese Renminbi
COP		Colombian Peso
HUF		Hungarian Forint
IDR		Indonesia Rupiah
ILS		Israeli Shekel
INR		Indian Rupee
KRW		South Korean Won
MXN		Mexican Nuevo Peso
MYR		Malaysian Ringgit
NGN		Nigerian Naira
PEN		Peruvian New Sol
PLN		Polish Zloty
RON		New Romanian Leu
RUB		Russian Ruble
THB		Thailand Baht
TRY		New Turkish Lira
ZAR		South African Rand

Definitions


BANXICO		Banco de Mexico
BBA LIBOR		British Bankers’ Association London - Interbank Offered Rate
BZDI		Brazil Interbank Deposit Rate
IBR		Indicador Bancario de Referencia
KLIBOR		Kuala Lumpur Interbank Offered Rate
OIS		Overnight Index Swap
TIIE		Interbank Equilibrium Interest Rate
WIBOR WIBO		Poland Warsaw Interbank Offer Bid Rate

See accompanying Notes to Financial Statements.

19 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

STATEMENT OF ASSETS AND LIABILITIES May 29, 2015¹



Assets
Investments, at value—see accompanying statement of investments:
Unaffiliated companies (cost $54,552,753)	$	49,562,819
Affiliated companies (cost $185,580)		185,580

		49,748,399

Cash		501,401

Cash—foreign currencies (cost $19)		266

Cash used for collateral on OTC derivatives		70,000

Cash used for collateral on centrally cleared swaps		323,527

Unrealized appreciation on forward currency exchange contracts		477,972

Swaps, at value		74,884

Centrally cleared swaps, at value		2,857

Receivables and other assets:
Interest and dividends		1,120,797
Shares of beneficial interest sold		24,961
Other		13,270

Total assets		52,358,334

Liabilities
Unrealized depreciation on forward currency exchange contracts		997,088

Swaps, at value		56,678

Centrally cleared swaps, at value		119,387

Payables and other liabilities:
Investments purchased		181,914
Shares of beneficial interest redeemed		170,651
Dividends		52,403
Distribution and service plan fees		9,536
Shareholder communications		7,661
Trustees’ compensation		6,366
Other		69,120

Total liabilities		1,670,804

Net Assets	$	50,687,530



Composition of Net Assets
Par value of shares of beneficial interest	$	6,500

Additional paid-in capital		67,270,632

Accumulated net investment loss		(3,418,016)

Accumulated net realized loss on investments and foreign currency transactions		(7,532,794)

Net unrealized depreciation on investments and translation of assets and liabilities denominated in foreign currencies		(5,638,792)

Net Assets	$	50,687,530

20 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND



Net Asset Value Per Share


Class A Shares:
Net asset value and redemption price per share (based on net assets of $32,519,633 and 4,170,773 shares of beneficial interest outstanding)					$7.80
Maximum offering price per share (net asset value plus sales charge of 4.75% of offering price)					$8.19

Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $10,267,509 and 1,316,174 shares of beneficial interest outstanding)					$7.80

Class I Shares:
Net asset value, redemption price and offering price per share (based on net assets of $2,338,557 and 300,075 shares of beneficial interest outstanding)					$7.79

Class R Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $1,377,042 and 176,496 shares of beneficial interest outstanding)					$7.80

Class Y Shares:
Net asset value, redemption price and offering price per share (based on net assets of $4,184,789 and 536,942 shares of beneficial interest outstanding)					$7.79

1. May 29, 2015 represents the last business day of the Fund’s reporting period. See Note 2 of the accompanying Notes.

See accompanying Notes to Financial Statements.

21 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

STATEMENT OF OPERATIONS For the Year Ended May 29, 2015¹



Investment Income
Interest (net of withholding taxes of $72,840)	$	3,589,109

Dividends:
Unaffiliated companies		636
Affiliated companies		3,494

Total investment income		3,593,239

Expenses
Management fees		468,928

Distribution and service plan fees:
Class A		69,440
Class C		128,693
Class R²		8,113

Transfer and shareholder servicing agent fees:
Class A		85,449
Class C		28,376
Class I		362
Class R²		3,640
Class Y		17,434

Shareholder communications:
Class A		15,279
Class C		8,748
Class I		45
Class R²		1,148
Class Y		2,102

Custodian fees and expenses		77,076

Legal, auditing and other professional fees		59,862

Trustees’ compensation		10,426

Other		24,306

Total expenses		1,009,427
Less reduction to custodian expenses		(169	)
Less waivers and reimbursements of expenses		(157,963	)

Net expenses		851,295

Net Investment Income		2,741,944

Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments from unaffiliated companies (net of foreign capital gains tax of $25,670)		(107,049	)
Closing and expiration of option contracts written		251,437
Foreign currency transactions		(4,890,388	)
Swap contracts		217,736
Closing and expiration of swaption contracts written		9,706

Net realized loss		(4,518,558	)

22 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND



Realized and Unrealized Gain (Loss) Continued
Net change in unrealized appreciation/depreciation on:
Investments	$	(256,913	)
Translation of assets and liabilities denominated in foreign currencies		(5,037,294	)
Option contracts written		(46,195	)
Swap contracts		(507,120	)

Net change in unrealized appreciation/depreciation		(5,847,522	)

Net Decrease in Net Assets Resulting from Operations	$	(7,624,136	)

1. May 29, 2015 represents the last business day of the Fund’s reporting period. See Note 2 of the accompanying Notes.

2. Effective July 1, 2014, Class N shares were renamed Class R. See Note 1 of the accompanying Notes.

See accompanying Notes to Financial Statements.

23 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

STATEMENTS OF CHANGES IN NET ASSETS


	Year Ended	Year Ended
	May 29, 2015¹	May 30, 2014¹

Operations
Net investment income	$ 2,741,944	$ 4,040,133

Net realized loss	(4,518,558)	(12,864,631)

Net change in unrealized appreciation/depreciation	(5,847,522)	3,524,325

Net decrease in net assets resulting from operations	(7,624,136)	(5,300,173)

Dividends and/or Distributions to Shareholders
Dividends from net investment income:
Class A	(1,940,515)	(692,346)
Class C	(547,299)	(210,977)
Class I	(68,935)	(287)
Class R²	(77,689)	(28,247)
Class Y	(411,133)	(150,703)
	(3,045,571)	(1,082,560)

Distributions from net realized gain:
Class A	—	(805,007)
Class C	—	(283,398)
Class I	—	(593)
Class R²	—	(33,093)
Class Y	—	(130,035)
	—	(1,252,126)

Tax return of capital distribution:
Class A	(28,005)	(1,883,318)
Class C	(7,898)	(573,901)
Class I	(995)	(780)
Class R²	(1,121)	(76,838)
Class Y	(5,933)	(409,944)
	(43,952)	(2,944,781)

Beneficial Interest Transactions
Net increase (decrease) in net assets resulting from beneficial interest transactions:
Class A	(6,520,157)	(12,643,277)
Class C	(2,670,580)	(8,432,633)
Class I	2,579,812	25,924
Class R²	(297,569)	(754,824)
Class Y	(5,026,847)	(3,675,823)

	(11,935,341)	(25,480,633)

24 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND



Net Assets
Total decrease	$	(22,649,000)	$ (36,060,273)

Beginning of period		73,336,530	109,396,803


End of period (including accumulated net investment loss of $3,418,016 and $1,974,962, respectively)	$	50,687,530	$ 73,336,530

1. May 29, 2015 and May 30, 2014 represent the last business days of the Fund’s respective reporting periods. See Note 2 of the accompanying Notes.

2. Effective July 1, 2014, Class N shares were renamed Class R. See Note 1 of the accompanying Notes.

See accompanying Notes to Financial Statements.

25 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

FINANCIAL HIGHLIGHTS


Class A	Year Ended May 29, 2015 ¹		Year Ended May 30, 2014 ¹		Year Ended May 31, 2013		Year Ended May 31, 2012		Period Ended May 31, 2011²

Per Share Operating Data
Net asset value, beginning of period	$	9.27	$	10.35	$	9.73	$	10.73	$	10.00

Income (loss) from investment operations:
Net investment income³		0.39		0.48		0.53		0.56		0.52
Net realized and unrealized gain (loss)		(1.43)		(0.93)		0.62		(0.94)		0.75

Total from investment operations		(1.04)		(0.45)		1.15		(0.38)		1.27

Dividends and/or distributions to shareholders:
Dividends from net investment income		(0.42)		(0.13)		(0.53)		(0.41)		(0.52)
Distributions from net realized gain		0.00		(0.15)		0.00		0.00		(0.02)
Tax return of capital distribution		(0.01)		(0.35)		0.00		(0.21)		0.00

Total dividends and/or distributions to shareholders		(0.43)		(0.63)		(0.53)		(0.62)		(0.54)

Net asset value, end of period	$	7.80	$	9.27	$	10.35	$	9.73	$	10.73




Total Return, at Net Asset Value⁴		(11.49)%		(4.20)%		11.84%		(3.67)%		12.85%


Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	32,520	$	45,660	$	64,789	$	51,319	$	43,912

Average net assets (in thousands)	$	38,815	$	50,865	$	62,849	$	48,137	$	35,869

Ratios to average net assets:⁵
Net investment income		4.51%		5.08%		4.96%		5.49%		5.31%
Total expenses⁶		1.46%		1.41%		1.30%		1.26%		1.26%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		1.25%		1.25%		1.25%		1.23%		1.24%

Portfolio turnover rate		107%		251%		130%		93%		80%

1. May 29, 2015 and May 30, 2014 represent the last business days of the Fund’s respective reporting periods. See Note 2 of the accompanying Notes.

2. For the period from June 30, 2010 (commencement of operations) to May 31, 2011.

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

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. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.

5. Annualized for periods less than one full year.

6. Total expenses including indirect expenses from affiliated fund fees and expenses were as follows:


Year Ended May 29, 2015	1.47	%
Year Ended May 30, 2014	1.41	%
Year Ended May 31, 2013	1.30	%
Year Ended May 31, 2012	1.26	%
Period Ended May 31, 2011	1.26	%

See accompanying Notes to Financial Statements.

26 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND


Class C	Year Ended May 29, 2015 ¹		Year Ended May 30, 2014 ¹		Year Ended May 31, 2013		Year Ended May 31, 2012		Period Ended May 31, 2011²

Per Share Operating Data
Net asset value, beginning of period	$	9.27	$	10.35	$	9.73	$	10.73	$	10.00

Income (loss) from investment operations:
Net investment income³		0.32		0.41		0.44		0.48		0.44
Net realized and unrealized gain (loss)		(1.42)		(0.94)		0.63		(0.94)		0.75

Total from investment operations		(1.10)		(0.53)		1.07		(0.46)		1.19

Dividends and/or distributions to shareholders:
Dividends from net investment income		(0.36)		(0.11)		(0.45)		(0.36)		(0.44)
Distributions from net realized gain		0.00		(0.15)		0.00		0.00		(0.02)
Tax return of capital distribution		(0.01)		(0.29)		0.00		(0.18)		0.00

Total dividends and/or distributions to shareholders		(0.37)		(0.55)		(0.45)		(0.54)		(0.46)

Net asset value, end of period	$	7.80	$	9.27	$	10.35	$	9.73	$	10.73




Total Return, at Net Asset Value⁴		(12.15)%		(4.92)%		11.00%		(4.40)%		12.05%


Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	10,267	$	15,128	$	26,066	$	12,070	$	7,241

Average net assets (in thousands)	$	12,919	$	18,262	$	19,486	$	9,819	$	3,962

Ratios to average net assets:⁵
Net investment income		3.74%		4.32%		4.16%		4.73%		4.56%
Total expenses⁶		2.31%		2.29%		2.26%		2.36%		2.46%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		2.00%		2.00%		2.00%		2.00%		2.00%

Portfolio turnover rate		107%		251%		130%		93%		80%

1. May 29, 2015 and May 30, 2014 represent the last business days of the Fund’s respective reporting periods. See Note 2 of the accompanying Notes.

2. For the period from June 30, 2010 (commencement of operations) to May 31, 2011.

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

5. Annualized for periods less than one full year.

6. Total expenses including indirect expenses from affiliated fund fees and expenses were as follows:


Year Ended May 29, 2015	2.32	%
Year Ended May 30, 2014	2.29	%
Year Ended May 31, 2013	2.26	%
Year Ended May 31, 2012	2.36	%
Period Ended May 31, 2011	2.46	%

See accompanying Notes to Financial Statements.

27 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

FINANCIAL HIGHLIGHTS Continued


Class I	Year Ended May 29, 2015 ¹		Year Ended May 30, 2014 ¹		Period Ended May 31, 2013²

Per Share Operating Data
Net asset value, beginning of period	$	9.26	$	10.34	$	10.53

Income (loss) from investment operations:
Net investment income³		0.32		0.52		0.37
Net realized and unrealized loss		(1.32)		(0.94)		(0.19)

Total from investment operations		(1.00)		(0.42)		0.18

Dividends and/or distributions to shareholders:
Dividends from net investment income		(0.46)		(0.14)		(0.37)
Distributions from net realized gain		0.00		(0.15)		0.00
Tax return of capital distribution		(0.01)		(0.37)		0.00

Total dividends and/or distributions to shareholders		(0.47)		(0.66)		(0.37)

Net asset value, end of period	$	7.79	$	9.26	$	10.34



Total Return, at Net Asset Value⁴		(11.15)%		(3.83)%		1.69%


Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,339	$	34	$	10

Average net assets (in thousands)	$	1,212	$	19	$	10

Ratios to average net assets:⁵
Net investment income		4.02%		5.63%		5.20%
Total expenses⁶		1.08%		1.02%		0.95%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		0.84%		0.85%		0.85%

Portfolio turnover rate		107%		251%		130%

1. May 29, 2015 and May 30, 2014 represent the last business days of the Fund’s respective reporting periods. See Note 2 of the accompanying Notes.

2. For the period from September 28, 2012 (inception of offering) to May 31, 2013.

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

5. Annualized for periods less than one full year.

6. Total expenses including indirect expenses from affiliated fund fees and expenses were as follows:


Year Ended May 29, 2015	1.09	%
Year Ended May 30, 2014	1.02	%
Period Ended May 31, 2013	0.95	%

See accompanying Notes to Financial Statements.

28 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND


Class R	Year Ended May 29, 2015 ¹		Year Ended May 30, 2014 ¹		Year Ended May 31, 2013		Year Ended May 31, 2012		Period Ended May 31, 2011²

Per Share Operating Data
Net asset value, beginning of period	$	9.27	$	10.35	$	9.73	$	10.73	$	10.00

Income (loss) from investment operations:
Net investment income³		0.36		0.46		0.50		0.53		0.49
Net realized and unrealized gain (loss)		(1.42)		(0.94)		0.62		(0.94)		0.75

Total from investment operations		(1.06)		(0.48)		1.12		(0.41)		1.24

Dividends and/or distributions to shareholders:
Dividends from net investment income		(0.40)		(0.12)		(0.50)		(0.39)		(0.49)
Distributions from net realized gain		0.00		(0.15)		0.00		0.00		(0.02)
Tax return of capital distribution		(0.01)		(0.33)		0.00		(0.20)		0.00

Total dividends and/or distributions to shareholders		(0.41)		(0.60)		(0.50)		(0.59)		(0.51)

Net asset value, end of period	$	7.80	$	9.27	$	10.35	$	9.73	$	10.73




Total Return, at Net Asset Value⁴		(11.71)%		(4.45)%		11.57%		(3.90)%		12.59%



Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,377	$	1,957	$	3,014	$	1,452	$	538

Average net assets (in thousands)	$	1,658	$	2,189	$	2,210	$	1,154	$	300

Ratios to average net assets:⁵
Net investment income		4.22%		4.82%		4.69%		5.23%		5.06%
Total expenses⁶		1.80%		1.79%		1.72%		1.69%		2.07%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		1.50%		1.50%		1.50%		1.50%		1.50%

Portfolio turnover rate		107%		251%		130%		93%		80%

1. May 29, 2015 and May 30, 2014 represent the last business days of the Fund’s respective reporting periods. See Note 2 of the accompanying Notes.

2. For the period from June 30, 2010 (commencement of operations) to May 31, 2011.

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

5. Annualized for periods less than one full year.

6. Total expenses including indirect expenses from affiliated fund fees and expenses were as follows:


Year Ended May 29, 2015	1.81	%
Year Ended May 30, 2014	1.79	%
Year Ended May 31, 2013	1.72	%
Year Ended May 31, 2012	1.69	%
Period Ended May 31, 2011	2.07	%

See accompanying Notes to Financial Statements.

29 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

FINANCIAL HIGHLIGHTS Continued


Class Y	Year Ended May 29, 2015 ¹		Year Ended May 30, 2014 ¹		Year Ended May 31, 2013		Year Ended May 31, 2012		Period Ended May 31, 2011²

Per Share Operating Data
Net asset value, beginning of period	$	9.26	$	10.34	$	9.73	$	10.73	$	10.00

Income (loss) from investment operations:
Net investment income³		0.43		0.51		0.55		0.59		0.55
Net realized and unrealized gain (loss)		(1.44)		(0.94)		0.62		(0.94)		0.74

Total from investment operations		(1.01)		(0.43)		1.17		(0.35)		1.29

Dividends and/or distributions to shareholders:
Dividends from net investment income		(0.45)		(0.13)		(0.56)		(0.43)		(0.54)
Distributions from net realized gain		0.00		(0.15)		0.00		0.00		(0.02)
Tax return of capital distribution		(0.01)		(0.37)		0.00		(0.22)		0.00

Total dividends and/or distributions to shareholders		(0.46)		(0.65)		(0.56)		(0.65)		(0.56)

Net asset value, end of period	$	7.79	$	9.26	$	10.34	$	9.73	$	10.73




Total Return, at Net Asset Value⁴		(11.24)%		(3.91)%		12.07%		(3.37)%		13.11%



Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,185	$	10,558	$	15,518	$	7,502	$	2,514

Average net assets (in thousands)	$	7,931	$	10,338	$	11,863	$	5,855	$	883

Ratios to average net assets:⁵
Net investment income		4.93%		5.43%		5.20%		5.74%		5.66%
Total expenses⁶		1.27%		1.22%		1.17%		1.23%		1.33%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		0.95%		0.95%		0.95%		0.95%		0.95%

Portfolio turnover rate		107%		251%		130%		93%		80%

1. May 29, 2015 and May 30, 2014 represent the last business days of the Fund’s respective reporting periods. See Note 2 of the accompanying Notes.

2. For the period from June 30, 2010 (commencement of operations) to May 31, 2011.

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

5. Annualized for periods less than one full year.

6. Total expenses including indirect expenses from affiliated fund fees and expenses were as follows:


Year Ended May 29, 2015	1.28	%
Year Ended May 30, 2014	1.22	%
Year Ended May 31, 2013	1.17	%
Year Ended May 31, 2012	1.23	%
Period Ended May 31, 2011	1.33	%

See accompanying Notes to Financial Statements.

30 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

NOTES TO FINANCIAL STATEMENTS May 29, 2015

1. Organization

Oppenheimer Emerging Markets Local Debt Fund (the “Fund”) is a non-diversified open-end management investment company registered under the Investment Company Act of 1940 (“1940 Act”), as amended. The Fund’s investment objective is to seek total return. 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 R and Class Y shares. As of July 1, 2014, Class N shares were renamed Class R shares. Class N shares subject to a contingent deferred sales charge (“CDSC”) on July 1, 2014, will continue to be subject to a CDSC after the shares are renamed. Purchases of Class R shares occurring on or after July 1, 2014, will not be subject to a CDSC upon redemption. 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 R shares are sold without a front-end sales charge but may be subject to a contingent deferred sales charge (“CDSC”). Class R shares are sold only through retirement plans. Retirement plans that offer Class R 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, C and R shares have separate distribution and/or service plans under which they pay fees. Class I and Class Y shares do not pay such fees.

The following is a summary of significant accounting policies followed in the Fund’s preparation of financial statements in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”).

2. Significant Accounting Policies

Security Valuation. All investments in securities are recorded at their estimated fair value, as described in Note 3.

Reporting Period End Date. The last day of the Fund’s reporting period is the last day the New York Stock Exchange was open for trading during the period. The Fund’s financial statements have been presented through that date to maintain consistency with the Fund’s net asset value calculations used for shareholder transactions.

Foreign Currency Translation. The Fund’s accounting records are maintained in U.S. dollars. The values of securities denominated in foreign currencies and amounts related to the purchase and sale of foreign securities and foreign investment income are translated into U.S. dollars as of the close of the New York Stock Exchange (the “Exchange”), normally 4:00 P.M.

31 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

NOTES TO FINANCIAL STATEMENTS Continued

Significant Accounting Policies (Continued)

Eastern time, on each day the Exchange is open for trading. Foreign exchange rates may be valued primarily using a reliable bank, dealer or service authorized by the Board of Trustees.

Reported net realized gains and losses from foreign currency transactions arise from sales of portfolio securities, sales and maturities of short-term securities, sales of foreign currencies, exchange rate fluctuations between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized appreciation and depreciation on the translation of assets and liabilities denominated in foreign currencies arise from changes in the values of assets and liabilities, including investments in securities at fiscal period end, resulting from changes in exchange rates.

The effect of changes in foreign currency exchange rates on investments is separately identified from the fluctuations arising from changes in market values of securities held and reported with all other foreign currency gains and losses in the Fund’s Statement of Operations.

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.

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 distributions, if any, are declared daily and paid monthly. Capital gain distributions, if any, are declared and paid annually.

Investment Income. Dividend income is recorded on the ex-dividend date or upon ex-dividend notification in the case of certain foreign dividends where the ex-dividend date may have passed. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income 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 overdrafts, to the extent they are not offset by positive cash balances maintained by the Fund, at a rate equal to the Federal Funds Rate plus 0.50%. The “Reduction to custodian expenses” line item, if applicable,

32 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

2. Significant Accounting Policies (Continued)

represents earnings on cash balances maintained by the Fund during the period. Such interest expense and other custodian fees may be paid with these earnings.

Security Transactions. Security transactions are recorded on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost.

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

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

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


Undistributed Net Investment Income	Undistributed Long-Term Gain		Accumulated Loss Carryforward^1,2,3,4		Net Unrealized Depreciation Based on cost of Securities and Other Investments for Federal Income Tax Purposes

$—		$—		$7,306,528		$5,376,118

1. As of May 29, 2015, the Fund had $7,306,528 of net capital loss carryforward available to offset future realized capital gains, if any, and thereby reduce future taxable gain distributions. Details of the capital loss carryforwards are included in the table below. Capital loss carryovers with no expiration, if any, must be utilized prior to those with expiration dates.


Expiring

No expiration	$	7,306,528

2. The Fund had $3,900,591 of post-October foreign currency losses which were deferred.

3. During the fiscal year ended May 29, 2015, the Fund did not utilize any capital loss carryforward.

4. During the fiscal year ended May 31, 2014, the Fund did not utilize any capital loss carryforward.

33 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

NOTES TO FINANCIAL STATEMENTS Continued

2. Significant Accounting Policies (Continued)

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

Accordingly, the following amounts have been reclassified for May 29, 2015. Net assets of the Fund were unaffected by the reclassifications.


Reduction to Paid-in Capital	Increase to Accumulated Net Investment Loss		Reduction to Accumulated Net Realized Loss on Investments

$3,184,944		$1,095,475		$4,280,419

The tax character of distributions paid during the years ended May 31, 2015 and May 31, 2014 was as follows:


	Year Ended May 31, 2015		Year Ended May 31, 2014

Distributions paid from:
Ordinary income	$	3,045,571	$	1,082,560
Long-term capital gain		—		1,252,126
Return of capital		43,952		2,944,781

Total	$	3,089,523	$	5,279,467

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 May 29, 2015 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	$	54,964,600
Federal tax cost of other investments		(488,941)

Total federal tax cost	$	54,475,659

Gross unrealized appreciation	$	644,333
Gross unrealized depreciation		(6,020,451)

Net unrealized depreciation	$	(5,376,118)

Use of Estimates. 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

34 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

2. Significant Accounting Policies (Continued)

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.

3. Securities Valuation

The Fund calculates the net asset value of its shares as of the close of the New York Stock Exchange (the “Exchange”), normally 4:00 P.M. Eastern time, on each day the Exchange is open for trading.

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.

Valuation Methods and Inputs

Securities are valued using unadjusted quoted market prices, when available, as supplied primarily by third party pricing services or dealers.

The following methodologies are used to determine the market value or the fair value of the types of securities described below:

Securities traded on a registered U.S. securities exchange (including exchange-traded derivatives other than futures and futures options) are valued based on the last sale price of the security reported on the principal exchange on which it is traded, prior to the time when the Fund’s assets are valued. In the absence of a sale, the security is valued at the last sale price on the prior trading day, if it is within the spread of the current day’s closing “bid” and “asked” prices, and if not, at the current day’s closing bid price. A security of a foreign issuer traded on a foreign exchange, but not listed on a registered U.S. securities exchange, is valued based on the last sale price on the principal exchange on which the security is traded, as identified by the third party pricing service used by the Manager, prior to the time when the Fund’s assets are valued. If the last sale price is unavailable, the security is valued at the most recent official closing price on the principal exchange on which it is traded. If the last sales price or official closing price for a foreign security is not available, the security is valued at the mean between the bid and asked price per the exchange or, if not available from the exchange, obtained from two dealers. If bid and asked prices are not available from either the exchange or two dealers, the security is valued by using one of the following methodologies (listed in order of priority): (1) using a bid from the exchange, (2) the mean between the bid and asked price as provided by a single dealer, or (3) a bid from a single dealer.

Shares of a registered investment company that are not traded on an exchange are valued at that investment company’s net asset value per share.

Corporate and government debt securities (of U.S. or foreign issuers) and municipal debt securities, event-linked bonds, loans, mortgage-backed securities, collateralized mortgage

35 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

NOTES TO FINANCIAL STATEMENTS Continued

3. Securities Valuation (Continued)

obligations, and asset-backed securities are valued at the mean between the “bid” and “asked” prices utilizing evaluated prices obtained from third party pricing services or broker-dealers who may use matrix pricing methods to determine the evaluated prices.

Short-term money market type debt securities with a remaining maturity of sixty days or less are valued at cost adjusted by the amortization of discount or premium to maturity (amortized cost), which approximates market value. Short-term debt securities with a remaining maturity in excess of sixty days are valued at the mean between the “bid” and “asked” prices utilizing evaluated prices obtained from third party pricing services or broker-dealers.

Structured securities, swaps, swaptions, and other over-the-counter derivatives are valued utilizing evaluated prices obtained from third party pricing services or broker-dealers.

Forward foreign currency exchange contracts are valued utilizing current and forward currency rates obtained from third party pricing services. When the settlement date of a contract is an interim date for which a quotation is not available, interpolated values are derived using the nearest dated forward currency rate.

A description of the standard inputs that may generally be considered by the third party pricing vendors in determining their evaluated prices is provided below.


Security Type		Standard inputs generally considered by third-party pricing vendors

Corporate debt, government debt, municipal, mortgage-backed and asset-backed securities		Reported trade data, broker-dealer price quotations, benchmark yields, issuer spreads on comparable securities, the credit quality, yield, maturity, and other appropriate factors.

Loans		Information obtained from market participants regarding reported trade data and broker-dealer price quotations.

Event-linked bonds		Information obtained from market participants regarding reported trade data and broker-dealer price quotations.

Structured securities		Relevant market information such as the price of underlying financial instruments, stock market indices, foreign currencies, interest rate spreads, commodities, or the occurrence of other specific events.

Swaps		Relevant market information, including underlying reference assets such as credit spreads, credit event probabilities, index values, individual security values, forward interest rates, variable interest rates, volatility measures, and forward currency rates.

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 information or information available to the Manager, when determining the fair value of a

36 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

3. Securities Valuation (Continued)

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. Those fair valuation standardized methodologies include, but are not limited to, valuing securities at the last sale price or initially at cost and subsequently adjusting the value based on: changes in company specific fundamentals, changes in an appropriate securities index, or changes in the value of similar securities which may be further adjusted for any discounts related to security-specific resale restrictions. When possible, such methodologies use observable market inputs such as unadjusted quoted prices of similar securities, observable interest rates, currency rates and yield curves. The methodologies used for valuing securities are not necessarily an indication of the risks associated with investing in those securities nor can it be assured that the Fund can obtain the fair value assigned to a security if it were to sell the security.

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 table below categorizes amounts that are included in the Fund’s Statement of Assets and Liabilities as of May 29, 2015 based on valuation input level:

37 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

NOTES TO FINANCIAL STATEMENTS Continued

3. Securities Valuation (Continued)


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

Assets Table
Investments, at Value:
Foreign Government Obligations	$	—	$	38,278,682	$	—	$	38,278,682
Corporate Bonds and Notes		—		9,762,278		—		9,762,278
Short-Term Notes		—		1,519,016		—		1,519,016
Over-the-Counter Option Purchased		—		2,843		—		2,843
Investment Company		185,580		—		—		185,580

Total Investments, at Value		185,580		49,562,819		—		49,748,399
Other Financial Instruments:
Swaps, at value		—		74,884		—		74,884
Centrally cleared swaps, at value		—		2,857		—		2,857
Forward currency exchange contracts		—		477,972		—		477,972

Total Assets	$	185,580	$	50,118,532	$	—	$	50,304,112


Liabilities Table
Other Financial Instruments:
Swaps, at value	$	—	$	(56,678)	$	—	$	(56,678)
Centrally cleared swaps, at value		—		(119,387)		—		(119,387)
Forward currency exchange contracts		—		(997,088)		—		(997,088)

Total Liabilities	$	—	$	(1,173,153)	$	—	$	(1,173,153)

Forward currency exchange contracts and futures contracts, if any, are reported at their unrealized appreciation/depreciation at measurement date, which represents the change in the contract’s value from trade date. All additional assets and liabilities included in the above table are reported at their market value at measurement date.

4. Investments and Risks

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 or for defensive purposes. IMMF is a registered open-end management investment company, regulated as a money market fund under the 1940 Act. The Manager is the investment adviser of IMMF, and the Sub-Adviser provides investment and related advisory services to IMMF. When applicable, the Fund’s investment in IMMF is included in the Statement of Investments. Shares of IMMF are valued at their net asset value per share. As a shareholder, the Fund is subject to its proportional share of IMMF’s Class E expenses, including its management fee. The Manager will waive fees and/or reimburse Fund expenses in an amount equal to the indirect management fees incurred through the Fund’s investment in IMMF.

Sovereign Debt Risk. The Fund invests in sovereign debt securities, which are subject to certain special risks. These risks include, but are not limited to, the risk that a governmental entity may delay or refuse, or otherwise be unable, to pay interest or repay the principal on its

38 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

4. Investments and Risks (Continued)

sovereign debt. There may also be no legal process for collecting sovereign debt that a government does not pay or bankruptcy proceedings through which all or part of such sovereign debt may be collected. In addition, a restructuring or default of sovereign debt may also cause additional impacts to the financial markets, such as downgrades to credit ratings, reduced liquidity and increased volatility, among others.

5. Risk Exposures and the Use of Derivative Instruments

The Fund’s investment objective not only permits the Fund to purchase investment securities, it also allows the Fund to enter into various types of derivatives contracts, including, but not limited to, futures contracts, forward currency exchange contracts, credit default swaps, interest rate swaps, total return swaps, variance swaps and purchased and written options. In doing so, the Fund will employ strategies in differing combinations to permit it to increase, decrease, or change the level or types of exposure to market risk factors. These instruments may allow the Fund to pursue its objectives more quickly and efficiently than if it were to make direct purchases or sales of securities capable of effecting a similar response to market factors. Such contracts may be entered into through a bilateral over-the-counter (“OTC”) transaction, or through a securities or futures exchange and cleared through a clearinghouse.

Market Risk Factors. In accordance with its investment objectives, the Fund may use derivatives to increase or decrease its exposure to one or more of the following market risk factors:

Commodity Risk. Commodity risk relates to the change in value of commodities or commodity indexes as they relate to increases or decreases in the commodities market. Commodities are physical assets that have tangible properties. Examples of these types of assets are crude oil, heating oil, metals, livestock, and agricultural products.

Credit Risk. Credit risk relates to the ability of the issuer to meet interest and principal payments, or both, as they come due. In general, lower-grade, higher-yield bonds are subject to credit risk to a greater extent than lower-yield, higher-quality bonds.

Equity Risk. Equity risk relates to the change in value of equity securities as they relate to increases or decreases in the general market.

Foreign Exchange Rate Risk. Foreign exchange rate risk relates to the change in the U.S. dollar value of a security held that is denominated in a foreign currency. The U.S. dollar value of a foreign currency denominated security will decrease as the dollar appreciates against the currency, while the U.S. dollar value will increase as the dollar depreciates against the currency.

Interest Rate Risk. Interest rate risk refers to the fluctuations in value of fixed-income securities resulting from the inverse relationship between price and yield. For example, an increase in general interest rates will tend to reduce the market value of already issued fixed-income investments, and a decline in general interest rates will tend to increase their value. In addition, debt securities with longer maturities, which tend to have higher yields, are subject to potentially greater fluctuations in value from changes in interest rates than obligations with shorter maturities.

39 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

NOTES TO FINANCIAL STATEMENTS Continued

5. Risk Exposures and the Use of Derivative Instruments (Continued)

Volatility Risk. Volatility risk refers to the magnitude of the movement, but not the direction of the movement, in a financial instrument’s price over a defined time period. Large increases or decreases in a financial instrument’s price over a relative time period typically indicate greater volatility risk, while small increases or decreases in its price typically indicate lower volatility risk.

Derivatives may have little or no initial cash investment relative to their market value exposure and therefore can produce significant gains or losses in excess of their cost due to unanticipated changes in the market risk factors and the overall market. This use of embedded leverage allows the Fund to increase its market value exposure relative to its net assets and can substantially increase the volatility of the Fund’s performance. In instances where the Fund is using derivatives to decrease, or hedge, exposures to market risk factors for securities held by the Fund, there are also risks that those derivatives may not perform as expected resulting in losses for the combined or hedged positions. Some derivatives have the potential for unlimited loss, regardless of the size of the Fund’s initial investment.

Additional associated risks from investing in derivatives also exist and potentially could have significant effects on the valuation of the derivative and the Fund. Typically, the associated risks are not the risks that the Fund is attempting to increase or decrease exposure to, per its investment objectives, but are the additional risks from investing in derivatives. Examples of these associated risks are liquidity risk, which is the risk that the Fund will not be able to sell the derivative in the open market in a timely manner, and counterparty credit risk, which is the risk that the counterparty will not fulfill its obligation to the Fund.

The Fund’s actual exposures to these market risk factors and associated risks during the period are discussed in further detail, by derivative type, below.

Forward Currency Exchange Contracts

The Fund may enter into forward currency exchange contracts (“forward contracts”) for the purchase or sale of a foreign currency at a negotiated rate at a future date. Such contracts are traded in the OTC inter-bank currency dealer market.

Forward contracts are reported on a schedule following the Statement of Investments. The unrealized appreciation (depreciation) is reported in the Statement of Assets and Liabilities as a receivable (or payable) and in the Statement of Operations within the change in unrealized appreciation (depreciation). At contract close, the difference between the original cost of the contract and the value at the close date is recorded as a realized gain (loss) in the Statement of Operations.

The Fund has entered into forward contracts with the obligation to purchase specified foreign currencies in the future at a currently negotiated forward rate in order to take a positive investment perspective on the related currency. These forward contracts seek to increase exposure to foreign exchange rate risk.

The Fund has entered into forward contracts with the obligation to purchase specified foreign currencies in the future at a currently negotiated forward rate in order to decrease exposure to foreign exchange rate risk associated with foreign currency denominated securities held by the Fund.

40 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

5. Risk Exposures and the Use of Derivative Instruments (Continued)

The Fund has entered into forward contracts with the obligation to sell specified foreign currencies in the future at a currently negotiated forward rate in order to take a negative investment perspective on the related currency. These forward contracts seek to increase exposure to foreign exchange rate risk.

The Fund has entered into forward contracts with the obligation to sell specified foreign currencies in the future at a currently negotiated forward rate in order to decrease exposure to foreign exchange rate risk associated with foreign currency denominated securities held by the Fund.

During the year ended May 29, 2015, the Fund had daily average contract amounts on forward contracts to buy and sell of $39,185,297 and $38,253,412, respectively.

Additional associated risk to the Fund includes counterparty credit risk. Counterparty credit risk arises from the possibility that the counterparty to a forward contract will default and fail to perform its obligations to the Fund.

Option Activity

The Fund may buy and sell put and call options, or write put and call options. When an option is written, the Fund receives a premium and becomes obligated to sell or purchase the underlying security, currency or other underlying financial instrument at a fixed price, upon exercise of the option.

Options can be traded through an exchange or through a privately negotiated arrangement with a dealer in an OTC transaction. Options traded through an exchange are generally cleared through a clearinghouse (such as The Options Clearing Corporation). The difference between the premium received or paid, and market value of the option, is recorded as unrealized appreciation or depreciation. The net change in unrealized appreciation or depreciation is reported in the Statement of Operations. When an option is exercised, the cost of the security purchased or the proceeds of the security sale are adjusted by the amount of premium received or paid. Upon the expiration or closing of the option transaction, a gain or loss is reported in the Statement of Operations.

The Fund has purchased call options on currencies to increase exposure to foreign exchange rate risk. A purchased call option becomes more valuable as the price of the underlying financial instrument appreciates relative to the strike price.

The Fund has purchased put options on currencies to decrease exposure to foreign exchange rate risk. A purchased put option becomes more valuable as the price of the underlying financial instrument depreciates relative to the strike price.

During the year ended May 29, 2015, the Fund had an ending monthly average market value of $48,090 and $54,109 on purchased call options and purchased put options, respectively.

Options written, if any, are reported in a schedule following the Statement of Investments and as a liability in the Statement of Assets and Liabilities. Securities held in collateral accounts to cover potential obligations with respect to outstanding written options are noted in the Statement of Investments.

The risk in writing a call option is that the market price of the security increases and if the option is exercised, the Fund must either purchase the security at a higher price for delivery

41 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

NOTES TO FINANCIAL STATEMENTS Continued

5. Risk Exposures and the Use of Derivative Instruments (Continued)

or, if the Fund owns the underlying security, give up the opportunity for profit. The risk in writing a put option is that the Fund may incur a loss if the market price of the security decreases and the option is exercised. The risk in buying an option is that the Fund pays a premium whether or not the option is exercised. The Fund also has the additional risk that there may be an illiquid market where the Fund is unable to close the contract.

The Fund has written put options on currencies to increase exposure to foreign exchange rate risk. A written put option becomes more valuable as the price of the underlying financial instrument appreciates relative to the strike price.

The Fund has written call options on currencies to decrease exposure to foreign exchange rate risk. A written call option becomes more valuable as the price of the underlying financial instrument depreciates relative to the strike price.

During the year ended May 29, 2015, the Fund had an ending monthly average market value of $8,702 and $81,651 on written call options and written put options, respectively.

Additional associated risks to the Fund include counterparty credit risk and liquidity risk.

Written option activity for the year ended May 29, 2015 was as follows:


	Number of Contracts		Amount of Premiums

Options outstanding as of May 30, 2014		18,235,830,000		$ 140,588
Options written		49,404,591,486		565,552
Options closed or expired		(36,495,412,000)		(251,438)
Options exercised		(31,145,009,486)		(454,702)

Options outstanding as of May 29, 2015		—		$ —

Swap Contracts

The Fund may enter into swap contract agreements with a counterparty to exchange a series of cash flows based on either specified reference rates, the price or volatility of asset or non-asset references, or the occurrence of a credit event, over a specified period. Swaps can be executed in a bi-lateral privately negotiated arrangement with a dealer in an OTC transaction (“OTC swaps”) or executed on a regulated market. Certain swaps, regardless of the venue of their execution, are required to be cleared through a clearinghouse (“centrally cleared swaps”). Swap contracts may include interest rate, equity, debt, index, total return, credit default, currency, and volatility swaps.

Swap contracts are reported on a schedule following the Statement of Investments. The values of centrally cleared swap and OTC swap contracts are aggregated by positive and negative values and disclosed separately on the Statement of Assets and Liabilities. The unrealized appreciation (depreciation) related to the change in the valuation of the notional amount of the swap is combined with the accrued interest due to (owed by) the Fund, if any, at termination or settlement. The net change in this amount during the period is included on the Statement of Operations. The Fund also records any periodic payments received from (paid to) the counterparty, including at termination, under such contracts as realized gain (loss) on the Statement of Operations.

Swap contract agreements are exposed to the market risk factor of the specific underlying reference rate or asset. Swap contracts are typically more attractively priced compared to similar investments in related cash securities because they isolate the risk to one market risk

42 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

5. Risk Exposures and the Use of Derivative Instruments (Continued)

factor and eliminate the other market risk factors. Investments in cash securities (for instance bonds) have exposure to multiple risk factors (credit and interest rate risk). Because swaps have embedded leverage, they can expose the Fund to substantial risk in the isolated market risk factor.

Currency Swap Contracts. A currency swap contract is an agreement between counterparties to exchange different currencies at contract inception that are equivalent to a notional value. The exchange at contract inception is made at the current spot rate. The contract also includes an agreement to reverse the exchange of the same notional values of those currencies at contract termination. The re-exchange at contract termination may take place at the same exchange rate, a specified rate or the then current spot rate. Certain currency swap contracts provide for exchanging the currencies only at contract termination and can provide for only a net payment in the settlement currency, typically USD. A currency swap contract may also include the exchange of periodic payments, between the counterparties, that are based on interest rates available in the respective currencies at contract inception. Other currency swap contracts may not provide for exchanging the different currencies at all, and only for exchanging interest cash flows based on the notional value in the contract.

The Fund has entered into currency swap contracts with the obligation to pay an interest rate on the dollar notional amount and receive an interest rate on the various foreign currency notional amounts in order to take a positive investment perspective on the related currencies for which the Fund receives a payment. These currency swap contracts increase exposure to foreign exchange rate risk.

For the year ended May 29, 2015, the Fund had ending monthly average notional amounts of $2,131,260 on currency swaps which receive a fixed rate.

Additional associated risks to the Fund include counterparty credit risk and liquidity risk.

Interest Rate Swap Contracts. An interest rate swap is an agreement between counterparties to exchange periodic payments based on interest rates. One cash flow stream will typically be a floating rate payment based upon a specified floating interest rate while the other is typically a fixed interest rate.

The Fund has entered into interest rate swaps in which it pays a floating interest rate and receives a fixed interest rate in order to increase exposure to interest rate risk. Typically, if relative interest rates rise, payments made by the Fund under a swap agreement will be greater than the payments received by the Fund.

The Fund has entered into interest rate swaps in which it pays a fixed interest rate and receives a floating interest rate in order to decrease exposure to interest rate risk. Typically, if relative interest rates rise, payments received by the Fund under the swap agreement will be greater than the payments made by the Fund.

For the year ended May 29, 2015, the Fund had ending monthly average notional amounts of $12,892,543 and $24,983,579 on interest rate swaps which pay a fixed rate and interest rate swaps which receive a fixed rate, respectively.

Additional associated risks to the Fund include counterparty credit risk and liquidity risk.

43 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

NOTES TO FINANCIAL STATEMENTS Continued

5. Risk Exposures and the Use of Derivative Instruments (Continued)

Swaption Transactions

The Fund may enter into a swaption contract which grants the purchaser the right, but not the obligation, to enter into a swap transaction at preset terms detailed in the underlying agreement within a specified period of time. The purchaser pays a premium to the swaption writer who bears the risk of unfavorable changes in the preset terms on the underlying swap.

Purchased swaptions are reported as a component of investments in the Statement of Investments and the Statement of Assets and Liabilities. Written swaptions are reported on a schedule following the Statement of Investments and their value is reported as a separate asset or liability line item in the Statement of Assets and Liabilities. The net change in unrealized appreciation or depreciation on written swaptions is separately reported in the Statement of Operations. When a swaption is exercised, the cost of the swap is adjusted by the amount of premium paid or received. Upon the expiration or closing of an unexercised swaption contract, a gain or loss is reported in the Statement of Operations for the amount of the premium paid or received.

The Fund generally will incur a greater risk when it writes a swaption than when it purchases a swaption. When the Fund writes a swaption it will become obligated, upon exercise of the swaption, according to the terms of the underlying agreement. Swaption contracts written by the Fund do not give rise to counterparty credit risk prior to exercise as they obligate the Fund, not its counterparty, to perform. When the Fund purchases a swaption it only risks losing the amount of the premium it paid if the swaption expires unexercised. However, when the Fund exercises a purchased swaption there is a risk that the counterparty will fail to perform or otherwise default on its obligations under the swaption contract.

The Fund has written swaptions which gives it the obligation, if exercised by the purchaser, to enter into an interest rate swap in which it pays a floating interest rate and receives a fixed interest rate in order to increase exposure to interest rate risk. A written swaption of this type becomes more valuable as the reference interest rate decreases relative to the preset interest rate.

During the year ended May 29, 2015, the Fund had an ending monthly average market value of $18,286 written swaptions.

Written swaption activity for the year ended May 29, 2015 was as follows:


	Notional Amount			Amount of Premiums

Swaptions outstanding as of May 30, 2014		—			$ —
Swaptions written		98,300,000			98,240
Swaptions closed or expired		(11,500,000	)		(9,706)
Swaptions exercised		(86,800,000	)		(88,534)

Swaptions outstanding as of May 29, 2015		—			$ —

Counterparty Credit Risk. Derivative positions are subject to the risk that the counterparty will not fulfill its obligation to the Fund. The Fund intends to enter into derivative transactions with counterparties that the Manager believes to be creditworthy at the time of the transaction.

44 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

5. Risk Exposures and the Use of Derivative Instruments (Continued)

The Fund’s risk of loss from counterparty credit risk on OTC derivatives is generally limited to the aggregate unrealized gain netted against any collateral held by the Fund. For OTC options purchased, the Fund bears the risk of loss of the amount of the premiums paid plus the positive change in market values net of any collateral held by the Fund should the counterparty fail to perform under the contracts. Options written by the Fund do not typically give rise to counterparty credit risk, as options written generally obligate the Fund and not the counterparty to perform.

To reduce counterparty risk with respect to OTC transactions, the Fund has entered into master netting arrangements, established within the Fund’s International Swap and Derivatives Association, Inc. (“ISDA”) master agreements, which allow the Fund to make (or to have an entitlement to receive) a single net payment in the event of default (close-out netting) for outstanding payables and receivables with respect to certain OTC positions in swaps, options, swaptions, and forward currency exchange contracts for each individual counterparty. In addition, the Fund may require that certain counterparties post cash and/or securities in collateral accounts to cover their net payment obligations for those derivative contracts subject to ISDA master agreements. If the counterparty fails to perform under these contracts and agreements, the cash and/or securities will be made available to the Fund.

ISDA master agreements include credit related contingent features which allow counterparties to OTC derivatives to terminate derivative contracts prior to maturity in the event that, for example, the Fund’s net assets decline by a stated percentage or the Fund fails to meet the terms of its ISDA master agreements, which would cause the Fund to accelerate payment of any net liability owed to the counterparty.

For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statement of Assets and Liabilities. Bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy, insolvency or other events.

The Fund’s risk of loss from counterparty credit risk on exchange-traded derivatives cleared through a clearinghouse and for centrally cleared swaps is generally considered lower than as compared to OTC derivatives. However, counterparty credit risk exists with respect to initial and variation margin deposited/paid by the Fund that is held in futures commission merchant, broker and/or clearinghouse accounts for such exchange-traded derivatives and for centrally cleared swaps.

With respect to centrally cleared swaps, such transactions will be submitted for clearing, and if cleared, will be held in accounts at futures commission merchants or brokers that are members of clearinghouses. While brokers, futures commission merchants and clearinghouses are required to segregate customer margin from their own assets, in the event that a broker, futures commission merchant or clearinghouse becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the broker, futures commission merchant or clearinghouse for all its customers, U.S. bankruptcy laws will typically allocate that shortfall on a pro-rata basis across all the broker’s, futures commission merchant’s or clearinghouse’s customers, potentially resulting in losses to the Fund.

There is the risk that a broker, futures commission merchant or clearinghouse will decline to clear a transaction on the Fund’s behalf, and the Fund may be required to pay a

45 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

NOTES TO FINANCIAL STATEMENTS Continued

5. Risk Exposures and the Use of Derivative Instruments (Continued)

termination fee to the executing broker with whom the Fund initially enters into the transaction. Clearinghouses may also be permitted to terminate centrally cleared swaps at any time. The Fund is also subject to the risk that the broker or futures commission merchant will improperly use the Fund’s assets deposited/paid as initial or variation margin to satisfy payment obligations of another customer. In the event of a default by another customer of the broker or futures commission merchant, the Fund might not receive its variation margin payments from the clearinghouse, due to the manner in which variation margin payments are aggregated for all customers of the broker/futures commission merchant.

Collateral and margin requirements differ by type of derivative. Margin requirements are established by the broker, futures commission merchant or clearinghouse for exchange-traded and cleared derivatives, including centrally cleared swaps. Brokers, futures commission merchants and clearinghouses can ask for margin in excess of the regulatory minimum, or increase the margin amount, in certain circumstances.

Collateral terms are contract specific for OTC derivatives. For derivatives traded under an ISDA master agreement, the collateral requirements are typically calculated by netting the mark to market amount for each transaction under such agreement and comparing that amount to the value of any collateral currently pledged by the Fund or the counterparty.

For financial reporting purposes, cash collateral that has been pledged to cover obligations of the Fund, if any, is reported separately on the Statement of Assets and Liabilities as cash pledged as collateral. Non-cash collateral pledged by the Fund, if any, is noted in the Statement of Investments. Generally, the amount of collateral due from or to a party must exceed a minimum transfer amount threshold (e.g. $250,000) before a transfer has to be made. To the extent amounts due to the Fund from its counterparties are not fully collateralized, contractually or otherwise, the Fund bears the risk of loss from counterparty nonperformance.

The following table presents by counterparty the Fund’s OTC derivative assets net of the related collateral posted for the benefit of the Fund at May 29, 2015.


		Gross Amounts Not Offset in the Statement of Assets & Liabilities
Counterparty	Gross Amount of Assets in the Statement of Assets & Liabilities*	Financial Instruments Available for Offset	Financial Instruments Collateral Received**		Cash Collateral Received**		Net Amount

Bank of America NA	$ 70,212	$ (7,017)	$	—	$	—	$	63,195
Barclays Bank plc	30,209	(30,209)		—		—		—
Citibank NA	60,035	(60,035)		—		—		—
Deutsche Bank Securities, Inc.	6,943	—		—		—		6,943
Goldman Sachs Bank USA	5,336	(5,336)		—		—		—
Goldman Sachs Group, Inc. (The)	25,398	(25,398)		—		—		—
JPMorgan Chase Bank NA	263,246	(263,246)		—		—		—

46 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

5. Risk Exposures and the Use of Derivative Instruments (Continued)


			Gross Amounts Not Offset in the Statement of Assets & Liabilities (Continued)
Counterparty	Gross Amount of Assets in the Statement of Assets & Liabilities*		Financial Instruments Available for Offset	Financial Instruments Collateral Received**	Cash Collateral Received**	Net Amount

Toronto Dominion Bank	$	94,320	$ —	$ —	$ —	$	94,320

	$	555,699	$ (391,241)	$ —	$ —	$	164,458

* OTC derivatives are reported gross on the Statement of Assets and Liabilities. Exchange traded options and margin related to cleared swaps and futures are excluded from these reported amounts.

** Reported collateral posted for the benefit of the Fund within this table is limited to the net outstanding amount due from an individual counterparty. The collateral posted for the benefit of the Fund may exceed these amounts.

The following table presents by counterparty the Fund’s OTC derivative liabilities net of the related collateral pledged by the Fund at May 29, 2015.


			Gross Amounts Not Offset in the Statement of Assets & Liabilities
Counterparty	Gross Amount of Liabilities in the Statement of Assets & Liabilities*		Financial Instruments Available for Offset	Financial Instruments Collateral Pledged**		Cash Collateral Pledged**		Net Amount

Bank of America NA	$	(7,017)	$ 7,017	$	—	$	—	$	—
Barclays Bank plc		(471,782)	30,209		279,980		—		(161,593)
Citibank NA		(181,183)	60,035		121,148		—		—
Goldman Sachs Bank USA		(36,698)	5,336		25,062		—		(6,300)
Goldman Sachs Group, Inc. (The)		(28,369)	25,398		—		—		(2,971)
HSBC Bank USA NA		(4,073)	—		—		—		(4,073)
JPMorgan Chase Bank NA		(317,501)	263,246		—		—		(54,255)
Morgan Stanley		(4,291)	—		4,291		—		—
Nomura Global Financial Products, Inc.		(2,852)	—		—		—		(2,852)

	$	(1,053,766)	$ 391,241	$	430,481		$ —	$	(232,044)

* OTC derivatives are reported gross on the Statement of Assets and Liabilities. Exchange traded options and margin related to cleared swaps and futures are excluded from these reported amounts.

** Reported collateral pledged within this table is limited to the net outstanding amount due from the Fund. The securities pledged as collateral by the Fund as reported on the Statements of investments may exceed these amounts.

The following table presents the valuations of derivative instruments by risk exposure as reported within the Statement of Assets and Liabilities as of May 29, 2015:

47 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

NOTES TO FINANCIAL STATEMENTS Continued

5. Risk Exposures and the Use of Derivative Instruments (Continued)

Asset Derivatives

Liability Derivatives

Derivatives Not

Accounted for as

Hedging

Instruments

Statement of Assets and

Liabilities Location

Value

Statement of Assets and

Liabilities Location

Value

Forward currency exchange contracts

Swaps, at value

19,241

Swaps, at value

1,770

Interest rate contracts

Swaps, at value

55,643

Swaps, at value

54,908

Interest rate contracts

Centrally cleared swaps, at value

2,857

Centrally cleared swaps, at value

119,387

Forward currency exchange contracts

Unrealized appreciation on forward currency exchange contracts

477,972

Unrealized depreciation on forward currency exchange contracts

997,088

Forward currency exchange contracts

Investments, at value

2,843 *

Total

558,556

1,173,153

*Amount relates to purchased option contracts.

The effect of derivative instruments on the Statement of Operations is as follows:


Amount of Realized Gain or (Loss) Recognized on Derivatives

Derivatives Not Accounted for as Hedging Instruments	Investment from unaffiliated companies*		Closing and expiration of swaption contracts written		Closing and expiration of option contracts written		Foreign currency transactions		Swap contracts		Total

Forward currency exchange contracts	$	(32,601)	$	—	$	251,437	$	(461,176)	$	146,576	$	(95,764)
Interest rate contracts		78,851		9,706		—		—		71,160		159,717

Total	$	46,250	$	9,706	$	251,437	$	(461,176)	$	217,736	$	63,953

*Includes purchased option contracts, purchased swaption contracts, written option contracts exercised and written swaption contracts exercised if any.


Amount of Change in Unrealized Gain or (Loss) Recognized on Derivatives

Derivatives Not Accounted for as Hedging Instruments	Investments*		Option contracts written		Translation of assets and liabilities denominated in foreign currencies		Swap contracts		Total

Forward currency exchange contracts	$	(104,117)	$	(46,195)	$	900,369	$	(196,520)	$	553,537
Interest rate contracts		—		—		—		(310,600)		(310,600)

Total	$	(104,117)	$	(46,195)	$	900,369	$	(507,120)	$	242,937

*Includes purchased option contracts and purchased swaption contracts, if any.

6. 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:

48 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

6. Shares of Beneficial Interest (Continued)


	Year Ended May 29, 2015¹						Year Ended May 30, 2014¹
	Shares			Amount			Shares			Amount

Class A
Sold		635,619		$	5,460,176			1,348,520		$	12,743,557
Dividends and/or distributions reinvested		159,194			1,360,020			252,835			2,346,148
Redeemed		(1,551,935	)		(13,340,353	)		(2,935,513	)		(27,732,982)

Net decrease		(757,122	)	$	(6,520,157	)		(1,334,158	)	$	(12,643,277)



Class C
Sold		285,812		$	2,454,409			432,441		$	4,073,802
Dividends and/or distributions reinvested		60,386			515,821			101,261			940,261
Redeemed		(662,014	)		(5,640,810	)		(1,420,094	)		(13,446,696)

Net decrease		(315,816	)	$	(2,670,580	)		(886,392	)	$	(8,432,633)



Class I
Sold		288,998		$	2,520,216			3,794		$	35,393
Dividends and/or distributions reinvested		8,586			69,488			113			1,027
Redeemed		(1,186	)		(9,892	)		(1,180	)		(10,496)

Net increase		296,398		$	2,579,812			2,727		$	25,924



Class R²
Sold		44,204		$	379,008			67,615		$	640,145
Dividends and/or distributions reinvested		9,185			78,368			14,611			135,646
Redeemed		(88,042	)		(754,945	)		(162,331	)		(1,530,615)

Net decrease		(34,653	)	$	(297,569	)		(80,105	)	$	(754,824)



Class Y
Sold		329,593		$	2,923,872			794,067		$	7,385,037
Dividends and/or distributions reinvested		32,248			275,435			56,622			527,630
Redeemed		(965,101	)		(8,226,154	)		(1,210,645	)		(11,588,490)

Net decrease		(603,260	)	$	(5,026,847	)		(359,956	)	$	(3,675,823)

1. May 29, 2015 and May 30, 2014 represent the last business days of the Fund’s respective reporting periods. See Note 2.

2. Effective July 1, 2014, Class N shares were renamed Class R.

7. Purchases and Sales of Securities

The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations and investments in IMMF, for the year ended May 29, 2015 were as follows:


	Purchases		Sales

Investment securities	$	44,793,213	$	45,392,202
U.S. government and government agency obligations		—		1,087,613

49 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

NOTES TO FINANCIAL STATEMENTS Continued

8. Fees and Other Transactions with Affiliates

Management Fees. Under the investment advisory agreement, the Fund pays the Manager a management fee based on the daily net assets of the Fund at an annual rate as shown in the following table:


Fee Schedule

Up to $500 million			0.75%
Next $500 million			0.70
Next $4 billion			0.65
Over $5 billion			0.60

The Fund’s effective management fee for the fiscal year ended May 29, 2015 was 0.75% of average annual net assets before any applicable waivers.

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 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. The Fund pays the Transfer Agent a fee based on annual net assets. Fees incurred and average net assets for each class with respect to these services are detailed in the Statement of Operations and Financial Highlights, respectively.

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.

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

50 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

8. Fees and Other Transactions with Affiliates (Continued)

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 pursuant to Rule 12b-1 under the 1940 Act. 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 C and Class R Shares. The Fund has adopted Distribution and Service Plans (the “Plans”) for Class C and Class R shares pursuant to Rule 12b-1 under the 1940 Act to compensate the Distributor for distributing those share classes, maintaining accounts and providing shareholder services. Under the Plans, the Fund pays the Distributor an annual asset-based sales charge of 0.75% on Class C shares daily net assets and 0.25% on Class R shares daily net assets. The Fund also pays a service fee under the Plans at an annual rate of 0.25% of daily net assets. The Plans continue in effect from year to year only if the Fund’s Board of Trustees vote annually to approve its continuance at an in person meeting called for that purpose. Fees incurred by the Fund under the Plans are detailed in the Statement of Operations.

Sales Charges. Front-end sales charges and 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.


Year Ended	Class A Front-End Sales Charges Retained by Distributor		Class A Contingent Deferred Sales Charges Retained by Distributor		Class C Contingent Deferred Sales Charges Retained by Distributor		Class R Contingent Deferred Sales Charges Retained by Distributor

May 29, 2015		$18,244		$18		$4,452		$299

Waivers and Reimbursements of Expenses. The Manager has agreed to contractually waive a portion of its management fees and/or reimburse the Fund for certain expenses so that “Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses” will not exceed 1.25% of average annual net assets for Class A shares, 2.00% for

51 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

NOTES TO FINANCIAL STATEMENTS Continued

8. Fees and Other Transactions with Affiliates (Continued)

Class C shares, 0.85% for Class I, 1.50% for Class R shares and 0.95% for Class Y shares. During the year ended May 29, 2015, the Manager reimbursed the Fund $81,133, $40,016, $2,937, $4,973 and $25,376 for Class A, Class C, Class I, Class R and Class Y shares, respectively.

The Manager will waive fees and/or reimburse Fund expenses in an amount equal to the indirect management fees incurred through the Fund’s investment in IMMF. During the year ended May 29, 2015, the Manager waived fees and/or reimbursed the Fund $3,528 for IMMF management fees.

Waivers and/or reimbursements may be modified or terminated as set forth according to the terms in the prospectus.

9. Pending Litigation

In 2009, seven class action lawsuits were filed 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 named as defendants certain officers and current and former trustees of the respective Defendant Funds. The lawsuits raised claims under federal securities laws and alleged, among other things, that the disclosure documents of the respective Defendant Funds contained misrepresentations and omissions and that the respective Defendant Funds’ investment policies were not followed. The plaintiffs in these actions sought unspecified damages, equitable relief and awards of attorneys’ fees and litigation expenses. The Defendant Funds’ Boards of Trustees also engaged counsel to represent the Funds and the present and former Independent Trustees named in those suits. In March 2014, the parties in six of these lawsuits executed stipulations and agreements of settlement resolving those actions. In July 2014, the court entered an order and final judgment approving the settlements as fair, reasonable and adequate. The settlements do not resolve a seventh outstanding lawsuit relating to Oppenheimer Rochester California Municipal Fund (the “California Fund Suit”). OFI believes the California Fund Suit is without legal merit and is defending the suit vigorously. While it is premature to render any opinion as to the utcome in the California Fund Suit, or whether any costs that OFI may bear in defending the California Fund Suit might not be reimbursed by insurance, OFI believes the California Fund Suit should not impair the ability of OFI or the Distributor to perform their respective duties to the Fund, and that the outcome of the California Fund Suit should not have any material effect on the operations of any of the Oppenheimer funds.

52 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Trustees and Shareholders of Oppenheimer Emerging Markets Local Debt Fund:

We have audited the accompanying statement of assets and liabilities of Oppenheimer Emerging Markets Local Debt Fund, including the statement of investments, as of May 29, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of May 29, 2015, by correspondence with the custodian, transfer agent and brokers, or by other appropriate auditing procedures where replies from brokers were not received. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Oppenheimer Emerging Markets Local Debt Fund as of May 29, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

KPMG LLP

Denver, Colorado

July 21, 2015

53 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

FEDERAL INCOME TAX INFORMATION Unaudited

In early 2015, if applicable, shareholders of record received information regarding all dividends and distributions paid to them by the Fund during calendar year 2014.

None of the dividends paid by the Fund during the fiscal year ended May 29, 2015 are eligible for the corporate dividend-received deduction.

Dividends, if any, paid by the Fund during the fiscal year ended May 29, 2015 which are not designated as capital gain distributions, may be eligible for lower individual income tax rates to the extent that the Fund has received qualified dividend income as stipulated by recent tax legislation. In early 2015, shareholders of record received information regarding the percentage of distributions that are eligible for lower individual income tax rates. The amount will be the maximum amount allowed.

Recent tax legislation allows a regulated investment company to designate distributions not designated as capital gain distributions, as either interest related dividends or short-term capital gain dividends, both of which are exempt from the U.S. withholding tax applicable to non U.S. taxpayers. For the fiscal year ended May 29, 2015, the maximum amount allowable but not less than $682,396 of the ordinary distributions to be paid by the Fund qualifies as an interest related dividend.

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

54 OPPENHEIMER EMERGING MARKETS LOCAL DEBT 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 www.oppenheimerfunds.com, and (iii) on the SEC’s website at www.sec.gov. In addition, the Fund is required to file Form N-PX, with its complete proxy voting record for the 12 months ended June 30th, no later than August 31st of each year. The Fund’s voting record is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.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.

55 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

TRUSTEES AND OFFICERS Unaudited


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

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

Sam Freedman, Chairman of the Board of Trustees (since 2012) and Trustee (since 2010) Year of Birth: 1940		Director of Colorado UpLIFT (charitable organization) (since September 1984). Mr. Freedman held several positions with the Sub-Adviser and with subsidiary or affiliated companies of the Sub-Adviser (until October 1994). Oversees 38 portfolios in the OppenheimerFunds complex. Mr. Freedman has served on the Boards of certain Oppenheimer funds since 1996, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Jon S. Fossel, Trustee (since 2010) Year of Birth: 1942		Chairman of the Board (2006-December 2011) and Director (June 2002-December 2011) of UNUMProvident (insurance company); Director of Northwestern Energy Corp. (public utility corporation) (November 2004-December 2009); Director of P.R. Pharmaceuticals (October 1999-October 2003); Director of Rocky Mountain Elk Foundation (non-profit organization) (February 1998-February 2003 and February 2005-February 2007); Chairman and Director (until October 1996) and President and Chief Executive Officer (until October 1995) of the Sub-Adviser; President, Chief Executive Officer and Director of the following: Oppenheimer Acquisition Corp. (“OAC”) (parent holding company of the Sub-Adviser), Shareholders Services, Inc. and Shareholder Financial Services, Inc. (until October 1995). Oversees 38 portfolios in the OppenheimerFunds complex. Mr. Fossel has served on the Boards of certain Oppenheimer funds since 1990, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Richard F. Grabish, Trustee (since 2010) Year of Birth: 1948		Formerly Senior Vice President and Assistant Director of Sales and Marketing (March 1997-December 2007), Director (March 1987-December 2007) and Manager of Private Client Services (June 1985-June 2005) of A.G. Edwards & Sons, Inc. (broker/dealer and investment firm); Chairman and Chief Executive Officer of A.G. Edwards Trust Company, FSB (March 2001-December 2007); President and Vice Chairman of A.G. Edwards Trust Company, FSB (investment adviser) (April 1987-March 2001); President of A.G. Edwards Trust Company, FSB (investment adviser) (June 2005-December 2007). Oversees 38 portfolios in the OppenheimerFunds complex. Mr. Grabish has served on the Boards of certain Oppenheimer funds since 2001, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Beverly L. Hamilton, Trustee (since 2010) Year of Birth: 1946		Trustee of Monterey Institute for International Studies (educational organization) (since February 2000); Board Member of Middlebury College (educational organization) (December 2005-June 2011); Chairman (since 2010) of American Funds’ Emerging Markets Growth Fund, Inc. (mutual fund);

56 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND


Beverly L. Hamilton, Continued		Director of The California Endowment (philanthropic organization) (April 2002-April 2008); Director (February 2002-2005) and Chairman of Trustees (2006-2007) of the Community Hospital of Monterey Peninsula; Director (October 1991-2005); Vice Chairman (2006-2009) of American Funds’ Emerging Markets Growth Fund, Inc. (mutual fund); President of ARCO Investment Management Company (February 1991-April 2000); Member of the investment committees of The Rockefeller Foundation (2001-2006) and The University of Michigan (since 2000); Advisor at Credit Suisse First Boston’s Sprout venture capital unit (venture capital fund) (1994-January 2005); Trustee of MassMutual Institutional Funds (investment company) (1996-June 2004); Trustee of MML Series Investment Fund (investment company) (April 1989-June 2004); Member of the investment committee of Hartford Hospital (2000-2003); and Advisor to Unilever (Holland) pension fund (2000-2003). Oversees 38 portfolios in the OppenheimerFunds complex. Ms. Hamilton has served on the Boards of certain Oppenheimer funds since 2002, during which time she has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Victoria J. Herget, Trustee (since 2012) Year of Birth:1951		Board Chair (2008-Present) and Director (2004-Present), United Educators (insurance company); Trustee (since 2000) and Chair (since 2010), Newberry Library (independent research library); Trustee, Mather LifeWays (senior living organization) (since 2001); Independent Director of the First American Funds (mutual fund family) (2003-2011); former Managing Director (1993-2001), Principal (1985-1993), Vice President (1978-1985) and Assistant Vice President (1973-1978) of Zurich Scudder Investments (investment adviser) (and its predecessor firms); Trustee (1992-2007), Chair of the Board of Trustees (1999-2007), Investment Committee Chair (1994-1999) and Investment Committee member (2007-2010) of Wellesley College; Trustee, BoardSource (non-profit organization) (2006-2009) and Chicago City Day School (K-8 School) (1994-2005). Oversees 38 portfolios in the OppenheimerFunds complex. Ms. Herget has served on the Boards of certain Oppenheimer funds since 2012, during which time she has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Robert J. Malone, Trustee (since 2010) Year of Birth: 1944		Chairman of the Board (since 2012) and Director (since August 2005) of Jones International University (educational organization) (since August 2005); Chairman, Chief Executive Officer and Director of Steele Street Bank Trust (commercial banking) (since August 2003); Trustee of the Gallagher Family Foundation (non-profit organization) (since 2000); Board of Directors of Opera Colorado Foundation (non-profit organization) (2008-2012); Director of Colorado UpLIFT (charitable organization) (1986-2010); Director of Jones Knowledge, Inc. (2006-2010); Former Chairman of U.S. Bank-Colorado (subsidiary of U.S. Bancorp and formerly Colorado National Bank) (July 1996-April 1999); Director of Commercial Assets, Inc. (real estate investment trust) (1993-2000); Director of U.S. Exploration, Inc. (oil and gas exploration) (1997-February 2004); Chairman of the Board (1991-1994) and Trustee (1985-1994) of Regis University; and Chairman of the Board (1990-1991 and Trustee (1984-1999) of Young Presidents Organization. Oversees 38 portfolios in the OppenheimerFunds complex. Mr. Malone has served on the Boards of

57 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

TRUSTEES AND OFFICERS Unaudited / Continued


Robert J. Malone, Continued		certain Oppenheimer funds since 2002, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

F. William Marshall, Jr., Trustee (since 2010) Year of Birth: 1942		Trustee Emeritus of Worcester Polytech Institute (WPI) (private university) (since 2009); Trustee of MassMutual Select Funds (formerly MassMutual Institutional Funds) (investment company) (since 1996), MML Series Investment Fund (investment company) (since 1996) and Mass Mutual Premier Funds (investment company) (since January 2012); President and Treasurer of the SIS Funds (private charitable fund) (January 1999-March 2011); Former Trustee of WPI (1985-2008); Former Chairman of the Board (2004-2006) and Former Chairman of the Investment Committee of WPI (1994-2008); Chairman of SIS Family Bank, F.S.B. (formerly SIS Bank) (commercial bank) (January 1999-July 1999); Executive Vice President of Peoples Heritage Financial Group, Inc. (commercial bank) (January 1999-July 1999); and Former President and Chief Executive Officer of SIS Bancorp. (1993-1999). Oversees 42 portfolios in the OppenheimerFunds complex. Mr. Marshall has served on the Boards of certain Oppenheimer funds since 2000, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

Karen L. Stuckey, Trustee (since 2012) Year of Birth: 1953		Partner (1990-2012) of PricewaterhouseCoopers LLP (professional services firm) (held various positions 1975-1990); Trustee (1992-2006) and member of Executive, Nominating and Audit Committees and Chair of Finance Committee of Lehigh University; and member, Women’s Investment Management Forum (professional organization) since inception. Oversees 38 portfolios in the OppenheimerFunds complex. Ms. Stuckey has served on the Boards of certain Oppenheimer funds since 2012, during which time she has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

James D. Vaughn, Trustee (since 2012) Year of Birth:1945		Retired; former managing partner (1994-2001) of Denver office of Deloitte & Touche LLP, (held various positions 1969-1993); Trustee and Chairman of the Audit Committee of Schroder Funds (2003 - 2012); Board member and Chairman of Audit Committee of AMG National Trust Bank (since 2005); Trustee and Investment Committee member, University of South Dakota Foundation (since 1996); Board member, Audit Committee Member and past Board Chair, Junior Achievement (since 1993); former Board member, Mile High United Way, Boys and Girls Clubs, Boy Scouts, Colorado Business Committee for the Arts, Economic Club of Colorado and Metro Denver Network. Oversees 38 portfolios in the OppenheimerFunds complex. Mr. Vaughn has served on the Boards of certain Oppenheimer funds since 2012, during which time he has become familiar with the Fund’s (and other Oppenheimer funds’) financial, accounting, regulatory and investment matters and has contributed to the Boards’ deliberations.

58 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND




INTERESTED TRUSTEE AND OFFICER		Mr. Steinmetz is an “Interested Trustee” because he is affiliated with the Manager and the Sub-Adviser by virtue of his positions as Chairman of the Sub-Adviser and officer and director of the Manager. Both as a Trustee and as an officer, Mr. Steinmetz serves for an indefinite term, or until his resignation, retirement, death or removal. Mr. Steinmetz’s address is 225 Liberty Street, 16th Floor, New York, New York 10281-1008.

Arthur P. Steinmetz, Trustee (since 2015), President and Principal Executive Officer (since 2014) Year of Birth: 1958		Chairman of the Sub-Adviser (since January 2015); CEO and Chairman of the Manager (since July 2014), President of the Manager (since May 2013), a Director of the Manager (since January 2013), Director of the Sub-Adviser (since July 2014), President, Management Director and CEO of Oppenheimer Acquisition Corp. (the Sub-Adviser’s parent holding company) (since July 2014), and President and Director of OFI SteelPath, Inc. (since January 2013). Chief Investment Officer of the OppenheimerFunds advisory entities from (January 2013-December 2013); Executive Vice President of the Manager (January 2013-May 2013); Chief Investment Officer of the Sub-Adviser (October 2010-December 2012); Chief Investment Officer, Fixed-Income, of the Sub-Adviser (April 2009-October 2010); Executive Vice President of the Sub-Adviser (October 2009-December 2012); Director of Fixed Income of the Sub-Adviser (January 2009-April 2009); and a Senior Vice President of the Sub-Adviser (March 1993-September 2009). An officer of 91 portfolios in the OppenheimerFunds complex.



OTHER OFFICERS OF THE FUND		The addresses of the Officers in the chart below are as follows: for Messrs. Baijal and Gabinet , Mss. Sexton and Picciotto, 225 Liberty Street, New York, New York 10281-1008, for Mr. Wixted, 6803 S. Tucson Way, Centennial, Colorado 80112-3924. Each Officer serves for an indefinite term or until his or her resignation, retirement, death or removal.

Hemant Baijal Vice President (since 2015) Year of Birth:1962		Vice President and Senior Portfolio Manager of the Sub-Adviser (since July 2011) and Co-Head of the Global Debt Team (since January 2015). Co-founder, Partner and Portfolio Manager of Six Seasons Global Asset Management (January 2009-December 2010). Partner and Portfolio Manager of Aravali Partners, LLC (September 2006-December 2008); Partner and Portfolio Manager at Havell Capital Management, LLC (November 1996-August 2006). A portfolio manager and officer of other portfolios in the OppenheimerFunds complex.

Arthur S. Gabinet, Secretary and Chief Legal Officer (since 2011) Year of Birth: 1958		Executive Vice President, Secretary and General Counsel of the Manager (since January 2013); General Counsel OFI SteelPath, Inc. (since January 2013); Executive Vice President (May 2010-December 2012) and General Counsel (since January 2011) of the Sub-Adviser; General Counsel of the Distributor (since January 2011); General Counsel of Centennial Asset Management Corporation (January 2011-December 2012); Executive Vice President (January 2011-December 2012) and General Counsel of HarbourView Asset Management Corporation (since January 2011); Assistant Secretary (since January 2011) and Director (since January 2011) of OppenheimerFunds International Ltd. and OppenheimerFunds plc; Director of Oppenheimer Real Asset Management, Inc. (January 2011-December 2012) and General Counsel (since January 2011); Executive Vice President (January 2011-December 2011) and General Counsel of Shareholder Financial Services, Inc. and Shareholder Services, Inc. (since January 2011); Executive Vice President (January 2011-December 2012) and General Counsel of OFI Private Investments Inc. (since

59 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

TRUSTEES AND OFFICERS Unaudited / Continued


Arthur S. Gabinet, Continued		January 2011); Vice President of OppenheimerFunds Legacy Program (January 2011-December 2011); Executive Vice President (January 2011-December 2012) and General Counsel of OFI Institutional Asset Management, Inc. (since January 2011); General Counsel, Asset Management of the Sub-Adviser (May 2010-December 2010); Principal, The Vanguard Group (November 2005-April 2010); District Administrator, U.S. Securities and Exchange Commission (January 2003-October 2005). An officer of 91 portfolios in the OppenheimerFunds complex.

Jennifer Sexton, Vice President and Chief Business Officer (since 2014) Year of Birth: 1969		Senior Vice President of OppenheimerFunds Distributor, Inc. (since June 2014); Vice President of OppenheimerFunds Distributor, Inc. (April 2006-June 2014); Vice President of the Sub-Adviser (January 1998-March 2006); Assistant Vice President of the Sub-Adviser (October 1991-December 1998). An officer of 91 portfolios in the OppenheimerFunds complex.

Mary Ann Picciotto, Chief Compliance Officer and Chief Anti-Money Laundering Officer (since 2014) Year of Birth: 1973		Senior Vice President and Chief Compliance Officer of the Manager (since March 2014); Chief Compliance Officer of the Sub-Adviser, OFI SteelPath, Inc., OFI Global Trust Company, OFI Global Institutional, Inc., Oppenheimer Real Asset Management, Inc., OFI Private Investments, Inc., Harborview Asset Management Corporation, Trinity Investment Management Corporation, and Shareholder Services, Inc. (since March 2014); Managing Director of Morgan Stanley Investment Management Inc. and certain of its various affiliated entities; Chief Compliance Officer of various Morgan Stanley Funds (May 2010-January 2014); Chief Compliance Officer of Morgan Stanley Investment Management Inc. (April 2007-January 2014). An officer of 91 portfolios in the OppenheimerFunds complex.

Brian W. Wixted, Treasurer and Principal Financial & Accounting Officer (since 2010) Year of Birth: 1959		Senior Vice President of the Manager (since January 2013); Treasurer of the Sub-Adviser, HarbourView Asset Management Corporation, Shareholder Financial Services, Inc., Shareholder Services, Inc., and Oppenheimer Real Asset Management, Inc. (March 1999-June 2008), OFI Private Investments, Inc. (March 2000-June 2008), OppenheimerFunds International Ltd. and OppenheimerFunds plc (since May 2000), OFI Institutional Asset Management, Inc. (November 2000-June 2008), and OppenheimerFunds Legacy Program (charitable trust program established by the Sub-Adviser) (June 2003-December 2011); Treasurer and Chief Financial Officer of OFI Trust Company (since May 2000); Assistant Treasurer of Oppenheimer Acquisition Corporation (March 1999-June 2008). An officer of 91 portfolios in the OppenheimerFunds complex.

The Fund’s Statement of Additional Information contains additional information about the Fund’s Trustees and Officers and is available without charge upon request, by calling 1.800.CALL OPP (225.5677).

60 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND


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		Ropes & Gray LLP

© 2015 OppenheimerFunds, Inc. All rights reserved.

61 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

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:

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Applications or other forms

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

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

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Your transactions with us, our affiliates or others

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

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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

Copies of confirmations, account statements and other documents reporting activity in your fund accounts are made available to your financial advisor (as designated by you). 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.

62 OPPENHEIMER EMERGING MARKETS LOCAL DEBT 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.

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All transactions, including redemptions, exchanges and purchases, are secured by SSL and 256-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.

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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.

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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., 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 March 2015. 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 this privacy policy, 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).

63 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

LOGO

Item 2.

Code of Ethics.

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

Item 3.

Audit Committee Financial Expert.

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

Item 4.

Principal Accountant Fees and Services.

(a)	Audit Fees

The principal accountant for the audit of the registrant’s annual financial statements billed $40,300 in fiscal 2015 and $39,500 in fiscal 2014.

(b)	Audit-Related Fees

The principal accountant for the audit of the registrant’s annual financial statements billed no such fees in fiscal 2015 and no such fees in fiscal 2014.

The principal accountant for the audit of the registrant’s annual financial statements billed $1,061,442 in fiscal 2015 and $871,571 in fiscal 2014 to the registrant’s investment adviser or any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant.

Such services include: Internal control reviews, GIPS attestation procedures, system conversion testing, and corporate restructuring.

(c)

Tax Fees

The principal accountant for the audit of the registrant’s annual financial statements billed no such fees in fiscal 2015 and no such fees in fiscal 2014.

The principal accountant for the audit of the registrant’s annual financial statements billed $559,556 in fiscal 2015 and $386,917 in fiscal 2014 to the registrant’s investment adviser or any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant.

Such services include: tax compliance, tax planning and tax advice. Tax compliance generally involves preparation of original and amended tax returns, claims for a refund and tax payment-

planning services. Tax planning and tax advice includes assistance with tax audits and appeals, tax advice related to mergers and acquisitions and requests for rulings or technical advice from taxing authorities.

(d)	All Other Fees

The principal accountant for the audit of the registrant’s annual financial statements billed no such fees in fiscal 2015 and no such fees in fiscal 2014.

The principal accountant for the audit of the registrant’s annual financial statements billed no such fees in fiscal 2015 and no such fees in fiscal 2014 to the registrant’s investment adviser or any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant.

Such fees would include the cost to the principal accountant of attending audit committee meetings and consultations regarding the registrant’s retirement plan with respect to its Trustees.

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

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

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

(2) 0%

(f)	Not applicable as less than 50%.

(g)

The principal accountant for the audit of the registrant’s annual financial statements billed $1,620,998 in fiscal 2015 and $1,258,488 in fiscal 2014 to the registrant and the registrant’s investment adviser or any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant related to non-audit fees. Those billings did not include any prohibited non-audit services as defined by the Securities Exchange Act of 1934.

(h)

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

Item 5.

Audit Committee of Listed Registrants

Not applicable.

Item 6.

Schedule of Investments.

a) Not applicable. 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 5/29/2015, 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) Exhibit attached hereto.

(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 Emerging Markets Local Debt Fund


By:		/s/ Arthur P. Steinmetz
		Arthur P. Steinmetz
		Principal Executive Officer
Date:		7/9/2015

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/ Arthur P. Steinmetz
		Arthur P. Steinmetz
		Principal Executive Officer
Date:		7/9/2015

By:		/s/ Brian W. Wixted
		Brian W. Wixted
		Principal Financial Officer
Date:		7/9/2015