Oppenheimer Emerging Markets Local Debt Fund

Semiannual Report

11/30/2015

Oppenheimer

Emerging Markets

Local Debt Fund

N-CSRS 1 d118184dncsrs.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: 11/30/2015

Item 1. Reports to Stockholders.

Table of Contents



Fund Performance Discussion			3

Top Holdings and Allocations			5

Fund Expenses			8

Statement of Investments			10

Statement of Assets and Liabilities			18

Statement of Operations			20

Statements of Changes in Net Assets			22

Financial Highlights			23

Notes to Financial Statements			32

Board Approval of the Fund’s Investment Advisory and Sub-Advisory Agreements			53

Portfolio Proxy Voting Policies and Procedures; Updates to Statement of Investments			56

Trustees and Officers			57

Privacy Policy Notice			58

Class A Shares

AVERAGE ANNUAL TOTAL RETURNS AT 11/30/15


	Class A Shares of the Fund
			J.P. Morgan Government
	Without Sales Charge	With Sales Charge	Bond Index - Emerging
			Markets Global Diversified
6-Month	-7.06%	-11.48%		-9.63%

1-Year	-14.70	-18.76		-18.14

5-Year	-2.04	-2.98		-2.45

Since Inception (6/30/10)	-0.79	-1.67		-0.77

2 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

Fund Performance Discussion

The Fund’s Class A shares (without sales charge) produced a return of -7.06% during the reporting period. On a relative basis, the Fund outperformed the J.P. Morgan Government Bond Index—Emerging Markets Global Diversified (the “Index”), which returned -9.63%.

MARKET OVERVIEW

Numerous concerns resulted in market volatility during the reporting period, including the impact of slowing Chinese growth on commodities prices and the global economy, the strength of the U.S. dollar, along with the timing and impact of U.S. interest rate hikes. After several years of strong returns across risk assets, these factors led to market volatility. Few asset classes were spared with most falling into correction territory relative to first-half of 2015 records, and emerging markets were hit particularly hard. Slightly above average valuations in most major risk asset classes by their 2015 peaks left them incrementally more vulnerable to profit taking as negative macro catalysts emerged. Shortly after the reporting period ended, the Fed finally raised rates to 0.25%.

FUND REVIEW

During the reporting period, the Fund’s outperformance was driven largely by underweight positions in South Africa, and Russia. Although the Fund had exposure to South Africa and Russia, it had significant underweight exposure relative to the Index. The decline in the commodity market has had

a meaningful impact on commodity exporting geographies, including South Africa. Labor unrest in South Africa also had a negative impact on the South African rand. Ongoing geopolitical concerns in Russia, including weak oil prices, hurt the ruble this reporting period. In addition to the underweight positions in South Africa and Russia, not having exposure to Malaysia benefited the Fund’s performance relative to the Index this reporting period. Malaysia is an exporter of oil. As a result, the Malaysian ringgit was under pressure due to falling oil prices. In addition, Malaysia has been negatively impacted by slowing growth in China.

The most significant detractor from the Fund’s performance relative to the Index was its exposure to Brazilian local interest rates due to the political turmoil in that country. In addition, the Fund had an underweight duration position in the U.S., which detracted from performance this reporting period.

STRATEGY & OUTLOOK

Emerging market countries have become highly differentiated. These divergences continue to present opportunities in specific names and situations for global fixed income investors. Overall, we believe few emerging

3 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

market 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.


		Hemant Baijal Portfolio Manager

4 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

Top Holdings and Allocations


TOP TEN GEOGRAPHICAL HOLDINGS
Brazil			21.7%
Mexico			20.1
South Africa			12.3
Russia			9.9
Indonesia			9.5
Turkey			7.9
Colombia			5.8
Nigeria			3.2
United States			1.8
Peru			1.8

Portfolio holdings and allocation are subject to change. Percentages are as of November 30, 2015, and are based on total market value of investments.


PORTFOLIO ALLOCATION
Foreign Government Obligations			66.3%
Non-Convertible Corporate Bonds and Notes			31.9
Short-Term Notes			1.8
Over-the-Counter Options Purchased			— *

Less than 0.05%.

Portfolio holdings and allocations are subject to change. Percentages are as of November 30, 2015, and are based on the total market value of investments.


CREDIT RATING BREAKDOWN			NRSRO ONLY TOTAL
AAA			1.8%
AA			0.1
A			23.7
BBB			59.0
BB			9.9
B			5.3
CCC			0.2
Total			100.0%

The percentages above are based on the market value of the Fund’s securities as of November 30, 2015, and are subject to change. 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.

5 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

Share Class Performance

AVERAGE ANNUAL TOTAL RETURNS WITHOUT SALES CHARGE AS OF 11/30/15


	Inception Date		6-Month		1-Year		5-Year		Since Inception
Class A (OEMAX)		6/30/10		-7.06%		-14.70%		-2.04%		-0.79%
Class C (OEMCX)		6/30/10		-7.41%		-15.44%		-2.79%		-1.54%
Class I (OEMIX)		9/28/12		-6.89%		-14.48%		N/A		-6.46%
Class R (OEMNX)		6/30/10		-7.18%		-14.92%		-2.28%		-1.03%
Class Y (OEMYX)		6/30/10		-6.80%		-14.44%		-1.74%		-0.49%
AVERAGE ANNUAL TOTAL RETURNS WITH SALES CHARGE AS OF 11/30/15
	Inception Date		6-Month		1-Year		5-Year		Since Inception
Class A (OEMAX)		6/30/10		-11.48%		-18.76%		-2.98%		-1.67%
Class C (OEMCX)		6/30/10		-8.31%		-16.24%		-2.79%		-1.54%
Class I (OEMIX)		9/28/12		-6.89%		-14.48%		N/A		-6.46%
Class R (OEMNX)		6/30/10		-7.18%		-14.92%		-2.28%		-1.03%
Class Y (OEMYX)		6/30/10		-6.80%		-14.44%		-1.74%		-0.49%

STANDARDIZED YIELDS


For the 30 Days Ended 11/30/15

Class A			7.08%

Class C			6.67

Class I			7.87

Class R			7.18

Class Y			7.74

Performance data quoted represents past performance, which does not guarantee future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. 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 contingent deferred sales charge (“CDSC”) of 1% 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.

Standardized yield is based on net investment income for the 30-day period ended 11/30/15 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.

6 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

The Fund’s performance is compared to the performance of the J.P. Morgan Government Bond Index - Emerging Markets Global Diversified, 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.

7 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 November 30, 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 November 30, 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.

8 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND


Actual	Beginning Account Value June 1, 2015		Ending Account Value November 30, 2015		Expenses Paid During 6 Months Ended November 30, 2015

Class A	$	1,000.00	$	929.40	$	6.05

Class C		1,000.00		925.90		9.68

Class I		1,000.00		931.10		4.11

Class R		1,000.00		928.20		7.26

Class Y		1,000.00		932.00		4.60

Hypothetical
(5% return before expenses)

Class A		1,000.00		1,018.75		6.33

Class C		1,000.00		1,015.00		10.13

Class I		1,000.00		1,020.75		4.30

Class R		1,000.00		1,017.50		7.59

Class Y		1,000.00		1,020.25		4.81

Expenses are equal to the Fund’s annualized expense ratio for that class, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period). Those annualized expense ratios, excluding indirect expenses from affiliated funds, based on the 6-month period ended November 30, 2015 are as follows:


Class	Expense Ratios

Class A		1.25%

Class C		2.00

Class I		0.85

Class R		1.50

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.

9 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

STATEMENT OF INVESTMENTS November 30, 2015 Unaudited


		Principal Amount		Value

Foreign Government Obligations—63.1%

Brazil—16.2%
Federative Republic of Brazil Nota Do Tesouro Nacional Sr. Unsec. Nts., 9.762%, 1/1/17	BRL		11,445,000	$	2,801,881

Federative Republic of Brazil Nota Do Tesouro Nacional Unsec. Nts.:
9.762%, 1/1/18	BRL		15,055,000		3,510,162
9.762%, 1/1/21	BRL		825,000		172,672
10.00%, 1/1/23	BRL		1,700,000		337,487
10.00%, 1/1/25	BRL		810,000		154,103

					6,976,305

Chile—0.1%
Republic of Chile International Bonds, 5.50%, 8/5/20	CLP		30,000,000		43,756

Colombia—4.9%
Republic of Colombia Sr. Unsec. Bonds:
Series B, 7.00%, 9/11/19	COP		1,500,000,000		475,371
Series B, 7.75%, 9/18/30	COP		900,000,000		260,976

Republic of Colombia Sr. Unsec. Nts.:
Series B, 7.00%, 5/4/22	COP		1,880,000,000		572,435
Series B, 10.00%, 7/24/24	COP		2,221,000,000		786,759

					2,095,541

Hungary—1.0%
Hungary Unsec. Nts., Series 18/A, 5.50%, 12/20/18	HUF		120,000,000		447,800

Indonesia—9.0%
Republic of Indonesia Treasury Bonds:
Series FR68, 8.375%, 3/15/34	IDR		14,820,000,000		1,030,370
Series FR70, 8.375%, 3/15/24	IDR		19,460,000,000		1,401,094
Series FR71, 9.00%, 3/15/29	IDR		19,830,000,000		1,459,914

					3,891,378

Mexico—9.1%
United Mexican States Sr. Unsec. Bonds, Series M10, 8%, 12/17/15	MXN		32,000,000		1,933,786

United Mexican States Unsec. Bonds:
Series M, 8.00%, 12/7/23	MXN		3,580,000		243,655
Series M20, 8.50%, 5/31/29	MXN		16,030,000		1,143,257
Series M30, 8.50%, 11/18/38	MXN		5,540,000		400,050
Series M30, 10.00%, 11/20/36	MXN		2,600,000		213,999

					3,934,747

Nigeria—3.0%
Federal Republic of Nigeria Unsec. Bonds, 16.39%, 1/27/22	NGN		212,000,000		1,300,224

Peru—1.1%
Republic of Peru Sr. Unsec. Bonds, 7.84%, 8/12/20¹	PEN		1,500,000		480,895

Russia—4.7%
Agency for Housing Mortgage Lending OJSC Via AHML Finance Ltd. Unsec. Nts., 7.75%, 2/13/18¹	RUB		6,700,000		94,083

Russian Federation Unsec. Bonds:
Series 6203, 6.90%, 8/3/16	RUB		47,000,000		694,524
Series 6205, 7.60%, 4/14/21	RUB		4,600,000		63,197
Series 6206, 7.40%, 6/14/17	RUB		32,400,000		471,812
Series 6209, 7.60%, 7/20/22	RUB		4,000,000		54,347

10 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND


		Principal Amount		Value

Russia (Continued)

Russian Federation Unsec. Bonds: (Continued)
Series 6210, 6.80%, 12/11/19	RUB		3,000,000	$	40,903
Series 6212, 7.05%, 1/19/28	RUB		17,000,000		214,879
Series 6215, 7.00%, 8/16/23	RUB		10,500,000		136,904
Series 6216, 6.70%, 5/15/19	RUB		17,500,000		241,194

					2,011,843

South Africa—9.8%
Republic of South Africa Sr. Unsec. Bonds, Series R208, 6.75%, 3/31/21	ZAR		7,100,000		462,489

Republic of South Africa Unsec. Bonds:
Series 2023, 7.75%, 2/28/23	ZAR		4,400,000		294,435
Series 2030, 8.00%, 1/31/30	ZAR		21,000,000		1,338,868
Series R186, 10.50%, 12/21/26	ZAR		27,300,000		2,146,317

					4,242,109

Turkey—4.2%
Republic of Turkey Bonds:
8.20%, 7/13/16	TRY		1,400,000		475,036
8.50%, 7/10/19	TRY		1,100,000		359,452
8.80%, 11/14/18	TRY		1,040,000		344,840

Republic of Turkey Unsec. Bonds:
6.30%, 2/14/18	TRY		1,550,000		491,879
9.00%, 3/8/17	TRY		350,000		118,508

					1,789,715

Total Foreign Government Obligations (Cost $34,633,241)					27,214,313

Corporate Bonds and Notes—30.3%

Consumer Discretionary—0.3%

Media—0.3%

VTR Finance BV, 6.875% Sr. Sec. Nts., 1/15/24¹			140,000		135,800

Consumer Staples—2.5%

Beverages—1.6%

AmBev International Finance Co. Ltd., 9.50% Sr. Unsec. Nts., 7/24/17	BRL		3,000,000		715,922

Food Products—0.9%

Marfrig Holdings Europe BV, 6.875% Sr. Unsec. Nts., 6/24/19¹			140,000		131,250

Minerva Luxembourg SA, 7.75% Sr. Unsec. Nts., 1/31/23¹			250,000		246,875

					378,125

Energy—6.9%

Oil, Gas & Consumable Fuels—6.9%

Cosan Luxembourg SA, 5% Sr. Unsec. Nts., 3/14/23¹			290,000		257,868

Gazprom Neft OAO Via GPN Capital SA, 6% Sr. Unsec. Nts., 11/27/23¹			240,000		234,350

Gazprom OAO Via Gaz Capital SA, 7.288% Sr. Unsec. Nts., 8/16/37¹			250,000		256,880

Pacific Exploration & Production Corp., 5.625% Sr. Unsec. Nts., 1/19/25¹			120,000		36,600

Petrobras Global Finance BV:
4.375% Sr. Unsec. Nts., 5/20/23			175,000		122,500
5.625% Sr. Unsec. Nts., 5/20/43			175,000		112,418

11 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

STATEMENT OF INVESTMENTS Unaudited / Continued


		Principal Amount		Value

Oil, Gas & Consumable Fuels (Continued)

Petroleos Mexicanos:
7.19% Sr. Unsec. Nts., 9/12/24	MXN		16,000,000	$	897,315
7.65% Sr. Unsec. Nts., 11/24/21	MXN		16,000,000		971,415

Zhaikmunai LLP, 6.375% Sr. Unsec. Nts., 2/14/19¹			100,000		85,288

					2,974,634

Financials—6.4%

Capital Markets—0.3%

Red de Carreteras de Occidente SAPIB de CV, 9% Sr. Sec. Nts., 6/10/28¹	MXN		2,300,000		135,791

Commercial Banks—6.1%

Akbank TAS, 7.50% Sr. Unsec. Nts., 2/5/18¹	TRY		4,395,000		1,362,457

Banco ABC Brasil SA:
7.875% Sub. Nts., 4/8/20¹			200,000		189,000
8.50% Sr. Unsec. Nts., 3/28/16¹	BRL		145,000		36,484

Banco Santander Brasil SA (Cayman Islands), 8% Sr. Unsec. Unsub. Nts., 3/18/16¹	BRL		370,000		93,978

CorpGroup Banking SA, 6.75% Sr. Unsec. Nts., 3/15/23¹			250,000		238,750

ICICI Bank Ltd., 6.375% Jr. Sub. Nts., 4/30/22^1,2			230,000		236,898

Moon Wise Global Ltd., 9% Sub. Perpetual Bonds^2,3			225,000		242,695

Sberbank of Russia Via SB Capital SA, 5.50% Sub. Nts., 2/26/24^1,2			110,000		101,035

Turkiye Vakiflar Bankasi TAO, 6.875% Sub. Nts., 2/3/25^1,2			120,000		117,360

					2,618,657

Industrials—0.8%

Building Products—0.6%

Elementia SAB de CV, 5.50% Sr. Unsec. Nts., 1/15/25¹			270,000		260,469

Construction & Engineering—0.0%

Odebrecht Finance Ltd., 8.25% Sr. Unsec. Nts., 4/25/18¹	BRL		110,000		16,362

Transportation Infrastructure—0.2%

Aeropuertos Argentina 2000 SA, 10.75% Sr. Sec. Nts., 12/1/20¹			73,500		77,543

Materials—2.8%

Construction Materials—1.0%

Cemex SAB de CV, 5.70% Sr. Sec. Nts., 1/11/25¹			200,000		177,500

Union Andina de Cementos SAA, 5.875% Sr. Unsec. Nts., 10/30/21¹			260,000		256,425

					433,925

Metals & Mining—1.8%

ABJA Investment Co. Pte Ltd., 5.95% Sr. Unsec. Nts., 7/31/24			230,000		201,828

Metalloinvest Finance Ltd., 5.625% Unsec. Nts., 4/17/20¹			180,000		175,950

MMC Norilsk Nickel OJSC via MMC Finance Ltd., 6.625% Sr. Unsec. Nts., 10/14/22¹			200,000		206,000

OJSC Novolipetsk Steel via Steel Funding Ltd., 4.45% Sr. Unsec. Nts., 2/19/18¹			180,000		180,113

					763,891

Telecommunication Services—8.6%

Diversified Telecommunication Services—1.0%

Colombia Telecomunicaciones SA ESP:
5.375% Sr. Unsec. Nts., 9/27/22¹			120,000		110,100

12 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND


		Principal Amount		Value

Diversified Telecommunication Services (Continued)

Colombia Telecomunicaciones SA ESP: (Continued) 8.50% Sub. Perpetual Bonds^1,2,3		$	70,000	$	62,195

Columbus International, Inc., 7.375% Sr. Unsec. Nts., 3/30/21¹			240,000		251,700

					423,995

Wireless Telecommunication Services—7.6%

America Movil SAB de CV:
6.45% Sr. Unsec. Nts., 12/5/22	MXN		16,000,000		927,384
7.125% Sr. Unsec. Nts., 12/9/24	MXN		16,000,000		946,203

Digicel Group Ltd., 7.125% Sr. Unsec. Nts., 4/1/22¹			270,000		218,892

Digicel Ltd., 6.75% Sr. Unsec. Nts., 3/1/23¹			40,000		35,488

Millicom International Cellular SA, 6% Sr. Unsec. Nts., 3/15/25¹			290,000		253,025

Mobile Telesystems OJSC via MTS International Funding Ltd., 5% Sr. Unsec. Nts., 5/30/23¹			170,000		159,375

Sistema JSFC via Sistema International Funding SA, 6.95% Sr. Unsec. Nts., 5/17/19¹			120,000		122,550

VimpelCom Holdings BV:
5.95% Sr. Unsec. Unsub. Nts., 2/13/23¹			120,000		112,950
9.00% Sr. Unsec. Nts., 2/13/18¹	RUB		35,500,000		507,904

					3,283,771

Utilities—2.0%

Electric Utilities—2.0%

Empresas Publicas de Medellin ESP, 8.375% Sr. Unsec. Nts., 2/1/21¹	COP		214,000,000		67,368

Eskom Holdings SOC Ltd., 10% Sr. Unsec. Nts., 1/25/23	ZAR		11,000,000		795,391

					862,759

Total Corporate Bonds and Notes (Cost $14,609,725)					13,081,644

Short-Term Note—1.7%

United States Treasury Bills, 0.066%, 3/31/164,5 (Cost $749,836)			750,000		749,483

Exercise

Expiration

Counterparty

Price

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

—

Total Investments, at Value (Cost $50,094,994)

95.1%

41,045,440

Net Other Assets (Liabilities)

4.9

2,121,113

Net Assets

100.0%

43,166,553

13 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

STATEMENT OF INVESTMENTS Unaudited / Continued

Footnotes to Statement of Investments

1. 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 $7,723,551 or 17.89% of the Fund’s net assets at period end.

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

3. This bond has no contractual maturity date, is not redeemable and contractually pays an indefinite stream of interest.

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

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 $749,483. See Note 6 of the accompanying Notes.

6. Non-income producing security.

The following issuer is or was an affiliate, as defined in the Investment Company Act of 1940, at or during the period ended November 30, 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. There were no affiliate securities held by the Fund as of November 30, 2015. Transactions during the period in which the issuer was an affiliate are as follows:


	Shares May 29, 2015^a		Gross Additions		Gross Reductions		Shares November 30, 2015

Oppenheimer Institutional Money Market Fund, Cl. E		185,580		10,425,546		10,611,126		—
							Income

Oppenheimer Institutional Money Market Fund, Cl. E								$217

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


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

Brazil	$	8,898,962		21.7%
Mexico		8,250,825		20.1
South Africa		5,037,500		12.3
Russia		4,068,950		9.9
Indonesia		3,891,378		9.5
Turkey		3,269,532		7.9
Colombia		2,371,804		5.8
Nigeria		1,300,224		3.2
United States		749,483		1.8
Peru		737,320		1.8
Hungary		447,800		1.1
India		438,727		1.1
Chile		418,306		1.0
Jamaica		254,380		0.6
Luxembourg		253,025		0.6
Barbados		251,700		0.6
China		242,695		0.6
Kazakhstan		85,287		0.2
Argentina		77,542		0.2

Total	$	41,045,440		100.0%

14 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND



Forward Currency Exchange Contracts as of November 30, 2015
Counterparty	Settlement Month(s)			Currency Purchased (000’s)			Currency Sold (000’s)		Unrealized Appreciation		Unrealized Depreciation

BAC		04/2016	RUB		65,600	USD		991	$	—	$	38,229
BNP		01/2016	USD		488	PEN		1,620		11,838		—
BOA		04/2016	RUB		13,200	USD		202		—		10,374
BOA		07/2016	USD		423	IDR		6,880,000		—		48,168
BOA		12/2015	USD		2,909	TRY		9,130		—		223,100
BOA		12/2015	ZAR		21,840	USD		1,637		—		127,100
CITNA-B		12/2015	ILS		5,110	USD		1,322		—		2,165
CITNA-B		12/2015	TRY		9,440	USD		3,249		—		10,472
CITNA-B		12/2015	USD		1,313	ILS		5,110		—		7,116
CITNA-B		12/2015	USD		2,766	MXN		45,600		15,850		—
CITNA-B		03/2016	USD		3,162	TRY		9,420		10,766		—
CITNA-B		12/2015 - 03/2016	USD		9,459	ZAR		130,360		504,286		—
CITNA-B		12/2015	ZAR		53,860	USD		3,750		—		25,270
GSCO-OT		12/2015	BRL		6,860	USD		1,849		—		75,989
GSCO-OT		12/2015 - 01/2016	USD		6,359	BRL		24,010		201,664		—
HSBC		12/2015	BRL		310	USD		79		895		—
HSBC		12/2015	USD		81	BRL		310		383		—
JPM		12/2015	BRL		7,710	USD		2,002		—		9,522
JPM		01/2016	CNH		17,400	USD		2,829		—		136,226
JPM		02/2016	INR		238,000	USD		3,594		—		63,699
JPM		12/2015	KRW		559,000	USD		482		—		413
JPM		12/2015	MXN		8,300	USD		500		527		—
JPM		01/2016	PLN		16,230	USD		4,099		—		86,968
JPM		12/2015 - 01/2016	USD		3,714	BRL		13,110		386,229		45,990
JPM		01/2016	USD		2,716	CNH		17,400		23,100		—
JPM		12/2015	USD		470	KRW		559,000		—		11,522
JPM		04/2016	USD		2,498	RUB		170,600		18,978		—
JPM		12/2015	USD		105	TRY		310		—		906
MSCO		12/2015	BRL		3,000	USD		802		—		26,895
MSCO		12/2015	USD		779	BRL		3,000		3,705		—
MSCO		02/2016	USD		970	COP		2,942,000		40,295		—
MSCO		12/2015	USD		510	MXN		8,000		27,835		—
TDB		12/2015	BRL		12,520	USD		3,351		—		115,204
TDB		12/2015	HUF		364,000	USD		1,319		—		82,084
TDB		12/2015	USD		3,159	BRL		12,520		—		77,194
TDB		12/2015	USD		499	HUF		139,000		26,227		—
TDB		12/2015	ZAR		800	USD		58		—		3,066

Total Unrealized Appreciation and Depreciation									$	1,272,578	$	1,227,672

Over-the-Counter Currency Swap at November 30, 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

INR 709

(1,205)

GSG

Pay

Six-Month
USD BBA
LIBOR

7.210

1/13/19

INR 44,250

INR 712

(21,006)

15 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

STATEMENT OF INVESTMENTS Unaudited / Continued

Over-the-Counter Currency Swap (Continued)

Counterparty

Pay/Receive
Floating Rate

Floating
Rate

Fixed
Rate

Maturity
Date

Notional Amount
Currency Received
(000’s)

Notional Amount
Currency
Delivered (000’s)

Value

GSG

Pay

Six-Month USD BBA LIBOR

7.100%

1/15/19

INR 43,750

INR 706

$ (26,056)

Total of Over-the-Counter Currency Swap

$ (48,267)

Centrally Cleared Interest Rate Swaps at November 30, 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

$ (61,470)

DEU

Pay

Three-Month PLN

WIBOR WIBO

1.940

5/13/17

PLN

38,000

48,830

Three-Month USD

GSG

Receive

BBA LIBOR

2.396

10/29/24

USD

440

(15,662)

Three-Month USD

GSG

Receive

BBA LIBOR

2.695

6/19/24

USD

870

(60,901)

Three-Month USD

JPM

Receive

BBA LIBOR

2.399

10/29/24

USD

410

(14,679)

Total of Centrally Cleared Interest Rate Swaps

$ (103,882)

Over-the-Counter Interest Rate Swaps at November 30, 2015

Counterparty

Pay/Receive
Floating Rate

Floating Rate

Fixed Rate

Maturity Date

Notional Amount
(000’s)

Value

GSG

Pay

MXN TIIE BANXICO

5.545%

11/11/21

MXN

25,000

$ (5,474)

GSG

Pay

MXN TIIE BANXICO

5.985

2/5/25

MXN

13,500

(10,917)

Three-Month

GSG

Pay

MYR KLIBOR

4.315

10/8/24

MYR

3,500

(1,394)

Three-Month

JPM

Pay

MYR KLIBOR

4.010

3/6/25

MYR

2,900

(18,643)

JPM

Pay

BZDI

13.490

1/2/17

BRL

50,400

(287,439)

Three-Month

JPM

Pay

COP IBR OIS

6.090

10/29/24

COP

1,030,000

(27,075)

Three-Month

MOS-A

Pay

COP IBR OIS

6.090

10/29/24

COP

1,060,000

(27,863)

Total of Over-the-Counter Interest Rate Swaps

$ (378,805)


Glossary:
Counterparty Abbreviations
BAC		Barclays Bank plc
BNP		BNP Paribas
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-A		Morgan Stanley
MSCO		Morgan Stanley Capital Services, Inc.
TDB		Toronto Dominion Bank

16 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND


Glossary (Continued)
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
RUB		Russian Ruble
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.

17 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

STATEMENT OF ASSETS AND LIABILITIES November 30, 2015 Unaudited



Assets
Investments, at value (cost $50,094,994)—see accompanying statement of investments	$	41,045,440

Cash		312,842

Cash used for collateral on OTC derivatives		609,000

Cash used for collateral on centrally cleared swaps		272,323

Unrealized appreciation on forward currency exchange contracts		1,272,578

Centrally cleared swaps, at value		48,830

Receivables and other assets:
Investments sold		6,864,676
Interest and dividends		1,203,353
Shares of beneficial interest sold		27,354

Total assets		51,656,396

Liabilities
Bank overdraft-foreign		6,360,803

Unrealized depreciation on forward currency exchange contracts		1,227,672

Swaps, at value		427,072

Centrally cleared swaps, at value		152,712

Payables and other liabilities:
Shares of beneficial interest redeemed		105,524
Investments purchased		95,681
Dividends		57,203
Distribution and service plan fees		7,849
Trustees’ compensation		6,119
Shareholder communications		6,075
Other		43,133

Total liabilities		8,489,843

Net Assets	$	43,166,553



Composition of Net Assets
Par value of shares of beneficial interest	$	6,161

Additional paid-in capital		64,751,031

Accumulated net investment loss		(3,413,499)

Accumulated net realized loss on investments and foreign currency transactions		(8,597,653)

Net unrealized depreciation on investments and translation of assets and liabilities denominated in foreign currencies		(9,579,487)

Net Assets	$	43,166,553

18 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 $28,471,943 and 4,063,893 shares of beneficial interest outstanding)	$	7.01
Maximum offering price per share (net asset value plus sales charge of 4.75% of offering price)	$	7.36

Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $8,075,796 and 1,152,190 shares of beneficial interest outstanding)	$	7.01

Class I Shares:
Net asset value, redemption price and offering price per share (based on net assets of $2,164,170 and 309,080 shares of beneficial interest outstanding)	$	7.00

Class R Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $1,136,874 and 162,283 shares of beneficial interest outstanding)	$	7.01

Class Y Shares:
Net asset value, redemption price and offering price per share (based on net assets of $3,317,770 and 473,563 shares of beneficial interest outstanding)	$	7.01

See accompanying Notes to Financial Statements.

19 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

STATEMENT OF

OPERATIONS For the Six Months Ended November 30, 2015 Unaudited



Investment Income
Interest (net of foreign withholding taxes of $15,394)	$	1,822,082

Dividends - affiliated companies		217

Total investment income		1,822,299

Expenses
Management fees		173,097

Distribution and service plan fees:
Class A		25,547
Class C		45,186
Class R		3,021

Transfer and shareholder servicing agent fees:
Class A		33,040
Class C		9,965
Class I		335
Class R		1,355
Class Y		3,963

Shareholder communications:
Class A		6,420
Class C		3,378
Class I		15
Class R		402
Class Y		1,041

Custodian fees and expenses		31,271

Legal, auditing and other professional fees		21,855

Trustees’ compensation		5,136

Borrowing fees		274

Other		8,008

Total expenses		373,309
Less reduction to custodian expenses		(117)
Less waivers and reimbursements of expenses		(58,773)

Net expenses		314,419

Net Investment Income		1,507,880

Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments from unaffiliated companies (net of foreign capital gains tax of $965)		(228,552)
Foreign currency transactions		(923,223)
Swap contracts		86,916

Net realized loss		(1,064,859)

20 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

STATEMENT OF OPERATIONS Unaudited / Continued



Realized and Unrealized Gain (Loss) Continued
Net change in unrealized appreciation/depreciation on:
Investments	$	(1,221,209)
Translation of assets and liabilities denominated in foreign currencies		(2,286,856)
Swap contracts		(432,630)

Net change in unrealized appreciation/depreciation		(3,940,695)

Net Decrease in Net Assets Resulting from Operations	$	(3,497,674)

See accompanying Notes to Financial Statements.

21 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

STATEMENTS OF CHANGES IN NET ASSETS


	Six Months Ended November 30, 2015 (Unaudited)		Year Ended May 29, 2015¹

Operations
Net investment income	$	1,507,880	$	2,741,944

Net realized loss		(1,064,859)		(4,518,558)

Net change in unrealized appreciation/depreciation		(3,940,695)		(5,847,522)

Net decrease in net assets resulting from operations		(3,497,674)		(7,624,136)

Dividends and/or Distributions to Shareholders
Dividends from net investment income:
Class A		(994,287)		(1,940,515)
Class C		(265,588)		(547,299)
Class I		(78,470)		(68,935)
Class R²		(39,228)		(77,689)
Class Y		(125,790)		(411,133)

		(1,503,363)		(3,045,571)

Tax return of capital distribution:
Class A		—		(28,005)
Class C		—		(7,898)
Class I		—		(995)
Class R²		—		(1,121)
Class Y		—		(5,933)

		—		(43,952)

Beneficial Interest Transactions
Net increase (decrease) in net assets resulting from beneficial interest transactions:
Class A		(818,386)		(6,520,157)
Class C		(1,208,822)		(2,670,580)
Class I		65,564		2,579,812
Class R²		(105,815)		(297,569)
Class Y		(452,481)		(5,026,847)

		(2,519,940)		(11,935,341)

Net Assets
Total decrease		(7,520,977)		(22,649,000)

Beginning of period		50,687,530		73,336,530


End of period (including accumulated net investment loss of $3,413,499 and $3,418,016, respectively)	$	43,166,553	$	50,687,530

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.

22 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

FINANCIAL HIGHLIGHTS


Class A	Six Months Ended November 30, 2015 (Unaudited)		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	$	7.80	$	9.27	$	10.35	$	9.73	$	10.73	$	10.00

Income (loss) from investment operations:
Net investment income³		0.24		0.39		0.48		0.53		0.56		0.52
Net realized and unrealized gain (loss)		(0.79)		(1.43)		(0.93)		0.62		(0.94)		0.75

Total from investment operations		(0.55)		(1.04)		(0.45)		1.15		(0.38)		1.27

Dividends and/or distributions to shareholders:
Dividends from net investment income		(0.24)		(0.42)		(0.13)		(0.53)		(0.41)		(0.52)
Distributions from net realized gain		0.00		0.00		(0.15)		0.00		0.00		(0.02)
Tax return of capital distribution		0.00		(0.01)		(0.35)		0.00		(0.21)		0.00

Total dividends and/or distributions to shareholders		(0.24)		(0.43)		(0.63)		(0.53)		(0.62)		(0.54)

Net asset value, end of period	$	7.01	$	7.80	$	9.27	$	10.35	$	9.73	$	10.73


Total Return, at Net Asset Value⁴		(7.06)%		(11.49)%		(4.20)%		11.84%		(3.67)%		12.85%

Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	28,472	$	32,520	$	45,660	$	64,789	$	51,319	$	43,912

Average net assets (in thousands)	$	29,993	$	38,815	$	50,865	$	62,849	$	48,137	$	35,869

Ratios to average net assets:⁵
Net investment income		6.65%		4.51%		5.08%		4.96%		5.49%		5.31%
Expenses excluding interest and fees from borrowings		1.47%		1.46%		1.41%		1.30%		1.26%		1.26%
Interest and fees from borrowings		0.00%⁶		0.00%		0.00%		0.00%		0.00%		0.00%

Total expenses⁷		1.47%		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%		1.25%		1.23%		1.24%

Portfolio turnover rate		41%		107%		251%		130%		93%		80%

23 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

FINANCIAL HIGHLIGHTS Continued

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. Less than 0.005%.

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



Six Months Ended November 30, 2015	1.47	%
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.

24 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND


Class C	Six Months Ended November 30, 2015 (Unaudited)		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
Class C	Six Months Ended November 30, 2015 (Unaudited)		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	$	7.80	$	9.27	$	10.35	$	9.73	$	10.73	$	10.00

Income (loss) from investment operations:
Net investment income³		0.22		0.32		0.41		0.44		0.48		0.44
Net realized and unrealized gain (loss)		(0.79)		(1.42)		(0.94)		0.63		(0.94)		0.75

Total from investment operations		(0.57)		(1.10)		(0.53)		1.07		(0.46)		1.19

Dividends and/or distributions to shareholders:
Dividends from net investment income		(0.22)		(0.36)		(0.11)		(0.45)		(0.36)		(0.44)
Distributions from net realized gain		0.00		0.00		(0.15)		0.00		0.00		(0.02)
Tax return of capital distribution		0.00		(0.01)		(0.29)		0.00		(0.18)		0.00

Total dividends and/or distributions to shareholders		(0.22)		(0.37)		(0.55)		(0.45)		(0.54)		(0.46)

Net asset value, end of period	$	7.01	$	7.80	$	9.27	$	10.35	$	9.73	$	10.73



Total Return, at Net Asset Value⁴		(7.41)%		(12.15)%		(4.92)%		11.00%		(4.40)%		12.05%

Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	8,076	$	10,267	$	15,128	$	26,066	$	12,070	$	7,241

Average net assets (in thousands)	$	9,040	$	12,919	$	18,262	$	19,486	$	9,819	$	3,962

Ratios to average net assets:⁵
Net investment income		5.89%		3.74%		4.32%		4.16%		4.73%		4.56%
Expenses excluding interest and fees from borrowings		2.33%		2.31%		2.29%		2.26%		2.36%		2.46%
Interest and fees from borrowings		0.00%⁶		0.00%		0.00%		0.00%		0.00%		0.00%

Total expenses⁷		2.33%		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%		2.00%

Portfolio turnover rate		41%		107%		251%		130%		93%		80%

25 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

FINANCIAL HIGHLIGHTS Continued

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. Less than 0.005%.

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



Six Months Ended November 30, 2015	2.33	%
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.

26 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND


Class I	Six Months Ended November 30, 2015 (Unaudited)		Year Ended May 29, 2015 ¹		Year Ended May 30, 2014 ¹		Period Ended May 31, 2013²
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	$	7.79	$	9.26	$	10.34	$	10.53

Income (loss) from investment operations:
Net investment income³		0.26		0.32		0.52		0.37
Net realized and unrealized loss		(0.79)		(1.32)		(0.94)		(0.19)

Total from investment operations		(0.53)		(1.00)		(0.42)		0.18

Dividends and/or distributions to shareholders:
Dividends from net investment income		(0.26)		(0.46)		(0.14)		(0.37)
Distributions from net realized gain		0.00		0.00		(0.15)		0.00
Tax return of capital distribution		0.00		(0.01)		(0.37)		0.00

Total dividends and/or distributions to shareholders		(0.26)		(0.47)		(0.66)		(0.37)

Net asset value, end of period	$	7.00	$	7.79	$	9.26	$	10.34


Total Return, at Net Asset Value⁴		(6.89)%		(11.15)%		(3.83)%		1.69%

Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,164	$	2,339	$	34	$	10

Average net assets (in thousands)	$	2,227	$	1,212	$	19	$	10

Ratios to average net assets:⁵
Net investment income		7.06%		4.02%		5.63%		5.20%
Expenses excluding interest and fees from borrowings		1.07%		1.08%		1.02%		0.95%
Interest and fees from borrowings		0.00%⁶		0.00%		0.00%		0.00%

Total expenses⁷		1.07%		1.08%		1.02%		0.95%
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses		0.85%		0.84%		0.85%		0.85%

Portfolio turnover rate		41%		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. Less than 0.005%.

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



Six Months Ended November 30, 2015	1.07	%
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.

27 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

FINANCIAL HIGHLIGHTS Continued


Class R	Six Months Ended November 30, 2015 (Unaudited)		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	$	7.80	$	9.27	$	10.35	$	9.73	$	10.73	$	10.00

Income (loss) from investment operations:
Net investment income³		0.23		0.36		0.46		0.50		0.53		0.49
Net realized and unrealized gain (loss)		(0.79)		(1.42)		(0.94)		0.62		(0.94)		0.75

Total from investment operations		(0.56)		(1.06)		(0.48)		1.12		(0.41)		1.24

Dividends and/or distributions to shareholders:
Dividends from net investment income		(0.23)		(0.40)		(0.12)		(0.50)		(0.39)		(0.49)
Distributions from net realized gain		0.00		0.00		(0.15)		0.00		0.00		(0.02)
Tax return of capital distribution		0.00		(0.01)		(0.33)		0.00		(0.20)		0.00

Total dividends and/or distributions to shareholders		(0.23)		(0.41)		(0.60)		(0.50)		(0.59)		(0.51)

Net asset value, end of period	$	7.01	$	7.80	$	9.27	$	10.35	$	9.73	$	10.73



Total Return, at Net Asset Value⁴		(7.18)%		(11.71)%		(4.45)%		11.57%		(3.90)%		12.59%

Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,137	$	1,377	$	1,957	$	3,014	$	1,452	$	538

Average net assets (in thousands)	$	1,229	$	1,658	$	2,189	$	2,210	$	1,154	$	300

Ratios to average net assets:⁵
Net investment income		6.40%		4.22%		4.82%		4.69%		5.23%		5.06%
Expenses excluding interest and fees from borrowings		1.82%		1.80%		1.79%		1.72%		1.69%		2.07%
Interest and fees from borrowings		0.00%⁶		0.00%		0.00%		0.00%		0.00%		0.00%

Total expenses⁷		1.82%		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%		1.50%

Portfolio turnover rate		41 %		107 %		251 %		130 %		93 %		80 %

28 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

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. Less than 0.005%.

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



Six Months Ended November 30, 2015	1.82	%
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	Six Months Ended November 30, 2015 (Unaudited)			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	$	7.79		$	9.26		$	10.34		$	9.73		$	10.73		$	10.00

Income (loss) from investment operations:
Net investment income³		0.26			0.43			0.51			0.55			0.59			0.55
Net realized and unrealized gain (loss)		(0.79	)		(1.44	)		(0.94	)		0.62			(0.94	)		0.74

Total from investment operations		(0.53	)		(1.01	)		(0.43	)		1.17			(0.35	)		1.29

Dividends and/or distributions to shareholders:
Dividends from net investment income		(0.25	)		(0.45	)		(0.13	)		(0.56	)		(0.43	)		(0.54)
Distributions from net realized gain		0.00			0.00			(0.15	)		0.00			0.00			(0.02)
Tax return of capital distribution		0.00			(0.01	)		(0.37	)		0.00			(0.22	)		0.00

Total dividends and/or distributions to shareholders		(0.25	)		(0.46	)		(0.65	)		(0.56	)		(0.65	)		(0.56)

Net asset value, end of period	$	7.01		$	7.79		$	9.26		$	10.34		$	9.73		$	10.73



Total Return, at Net Asset Value⁴		(6.80	)%		(11.24	)%		(3.91	)%		12.07%			(3.37	)%		13.11%

Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,318		$	4,185		$	10,558		$	15,518		$	7,502		$	2,514

Average net assets (in thousands)	$	3,595		$	7,931		$	10,338		$	11,863		$	5,855		$	883

Ratios to average net assets:⁵
Net investment income		7.01%			4.93%			5.43%			5.20%			5.74%			5.66%
Expenses excluding interest and fees from borrowings		1.33%			1.27%			1.22%			1.17%			1.23%			1.33%
Interest and fees from borrowings		0.00%	⁶		0.00%			0.00%			0.00%			0.00%			0.00%

Total expenses⁷		1.33%			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%			0.95%

Portfolio turnover rate		41%			107%			251%			130%			93%			80%

30 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

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. Less than 0.005%.

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



Six Months Ended November 30, 2015	1.33	%
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.

31 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

NOTES TO FINANCIAL STATEMENTS November 30, 2015 Unaudited

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, continue to be subject to a CDSC after the shares were renamed. Purchases of Class R shares occurring on or after July 1, 2014, are not 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.

32 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

2. 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.

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

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

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

33 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

2. Significant Accounting Policies (Continued)

not offset by positive cash balances maintained by the Fund, at a rate equal to the Federal Funds Rate plus 0.50%. The “Reduction to custodian expenses” line item, if applicable, represents earnings on cash balances maintained by the Fund during the period. Such interest expense and other custodian fees may be paid with these earnings.

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

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

Federal Taxes. The Fund intends to comply with provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its investment company taxable income to shareholders. Therefore, no federal income or excise tax provision is required. The Fund files income tax returns in U.S. federal and applicable state jurisdictions. The statute of limitations on the Fund’s tax return filings generally remains open for the three preceding fiscal reporting period ends.

During the fiscal year ended May 29, 2015, the Fund did not utilize any capital loss carryforward to offset capital gains realized in that fiscal year. The Fund had post-October foreign currency losses of $3,900,591. Details of the fiscal year ended May 29, 2015 capital loss carryforwards are included in the table below. Capital loss carryforwards with no expiration, if any, must be utilized prior to those with expiration dates. Capital losses with no expiration will be carried forward to future years if not offset by gains.


Expiring

No expiration	$	7,306,528

At period end, it is estimated that the capital loss carryforwards would be $8,371,387 which will not expire. The estimated capital loss carryforward represents the carryforward as of the end of the last fiscal year, increased or decreased by capital losses or gains realized in the first six months of the current fiscal year. During the reporting period, it is estimated that the Fund will not utilize any capital loss carryforward to offset realized capital gains.

Net investment income (loss) and net realized gain (loss) may differ for financial statement and tax purposes. The character of dividends and distributions made during the fiscal year from net investment income or net realized gains 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

34 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

2. Significant Accounting Policies (Continued)

timing of dividends and distributions, the fiscal year in which amounts are distributed may differ from the fiscal year in which the income or net realized gain was recorded by the Fund.

The aggregate cost of securities and other investments and the composition of unrealized appreciation and depreciation of securities and other investments for federal income tax purposes at period end 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	$	50,293,140
Federal tax cost of other investments		(6,360,648)

Total federal tax cost	$	43,932,492

Gross unrealized appreciation	$	397,512
Gross unrealized depreciation		(10,176,320)

Net unrealized depreciation	$	(9,778,808)

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 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, except in the case of a scheduled early closing of the Exchange, in which case the Fund will calculate net asset value of the shares as of the scheduled early closing time of the Exchange.

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

35 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

3. Securities Valuation (Continued)

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 mean between the bid and asked price on the principal exchange or, if not available from the principal 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) a bid from the principal exchange, (2) the mean between the bid and asked price as provided by a single dealer, or (3) a bid from a single dealer. 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) 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 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.

36 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

3. Securities Valuation (Continued)


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 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

37 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

3. Securities Valuation (Continued)

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 at period end based on valuation input level:


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

Assets Table
Investments, at Value:
Foreign Government Obligations	$	—	$	27,214,313	$	—	$	27,214,313
Corporate Bonds and Notes		—		13,081,644		—		13,081,644
Short-Term Note		—		749,483		—		749,483
Over-the-Counter Option Purchased		—		—		—		—

Total Investments, at Value		—		41,045,440		—		41,045,440
Other Financial Instruments:
Centrally cleared swaps, at value		—		48,830		—		48,830
Forward currency exchange contracts		—		1,272,578		—		1,272,578

Total Assets	$	—	$	42,366,848	$	—	$	42,366,848


Liabilities Table
Other Financial Instruments:
Swaps, at value	$	—	$	(427,072)	$	—	$	(427,072)
Centrally cleared swaps, at value		—		(152,712)		—		(152,712)
Forward currency exchange contracts		—		(1,227,672)		—		(1,227,672)

Total Liabilities	$	—	$	(1,807,456)	$	—	$	(1,807,456)

Forward currency exchange contracts and futures contracts, if any, are reported at their unrealized appreciation/depreciation at measurement date, which represents the change in

38 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

3. Securities Valuation (Continued)

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

Risks of Foreign Investing. The Fund may invest in foreign securities which are subject to special risks. Securities traded in foreign markets may be less liquid and more volatile than those traded in U.S. markets. Foreign issuers are usually not subject to the same accounting and disclosure requirements that U.S. companies are subject to, which may make it difficult for the Fund to evaluate a foreign company’s operations or financial condition. A change in the value of a foreign currency against the U.S. dollar will result in a change in the U.S. dollar value of investments denominated in that foreign currency and in the value of any income or distributions the Fund may receive on those investments. The value of foreign investments may be affected by exchange control regulations, foreign taxes, higher transaction and other costs, delays in the settlement of transactions, changes in economic or monetary policy in the United States or abroad, expropriation or nationalization of a company’s assets, or other political and economic factors. In addition, due to the inter-relationship of global economies and financial markets, changes in political and economic factors in one country or region could adversely affect conditions in another country or region. Investments in foreign securities may also expose the Fund to time-zone arbitrage risk. Foreign securities may trade on weekends or other days when the Fund does not price its shares. At times, the Fund may emphasize investments in a particular country or region and may be subject to greater risks from adverse events that occur in that country or region. Foreign securities and foreign currencies held in foreign banks and securities depositories may be subject to limited or no regulatory oversight.

Investments in Affiliated Funds. The Fund is permitted to invest in other mutual funds advised by the Manager (“Affiliated Funds”). Affiliated Funds are open-end management investment companies registered under the 1940 Act, as amended. The Manager is the investment adviser of, and the Sub-Adviser provides investment and related advisory services to, the Affiliated Funds. When applicable, the Fund’s investments in Affiliated Funds are included in the Statement of Investments. Shares of Affiliated Funds are valued at their net asset value per share. As a shareholder, the Fund is subject to its proportional share of the Affiliated Funds’ expenses, including their 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 the Affiliated Funds.

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

Investment in Oppenheimer Institutional Money Market Fund. The Fund is permitted to invest daily available cash balances in a money market Affiliated Fund. The Fund may invest the available cash in Class E shares of Oppenheimer Institutional Money Market Fund

39 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

4. Investments and Risks (Continued)

(“IMMF”) to seek current income while preserving liquidity or for defensive purposes. IMMF is regulated as a money market fund under the Investment Company Act of 1940, as amended.

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 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. Market Risk Factors

The Fund’s investments in securities and/or financial derivatives may expose the fund to various 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 of debt to meet interest and principal payments, or both, as they come due. In general, lower-grade, higher-yield debt securities are subject to credit risk to a greater extent than lower-yield, higher-quality securities.

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.

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.

40 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

6. 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.

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.

41 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

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

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.

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 reporting period, the Fund had daily average contract amounts on forward contracts to buy and sell of $19,286,319 and $31,672,020, 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.

During the reporting period, the Fund had an ending monthly average market value of $660 on purchased call options.

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

42 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

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

(“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 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. These currency swap contracts increase exposure to, or decrease exposure away from, foreign exchange and interest rate risk.

For the reporting period, the Fund had ending monthly average notional amounts of $2,020,240 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

43 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

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

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 reporting period, the Fund had ending monthly average notional amounts of $14,853,959 and $16,902,553 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.

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.

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.

At period end, the Fund has required certain counterparties to post collateral of $288,231.

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.

44 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

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

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 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

45 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

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

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 pledged by the Fund at period end:


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

BNP Paribas	$	11,838	$	—	$	—	$	—	$	11,838
Citibank NA		530,902		(45,023)		(263,241)		—		222,638
Goldman Sachs Bank USA		201,664		(75,989)		—		—		125,675
HSBC Bank USA NA		1,278		—		—		—		1,278
JPMorgan Chase Bank NA		428,834		(428,834)		—		—		—
Morgan Stanley Capital Services, Inc.		71,835		(26,895)		(24,990)		—		19,950
Toronto Dominion Bank		26,227		(26,227)		—		—		—

	$	1,272,578	$	(602,968)	$	(288,231)	$	—	$	381,379

*OTC derivatives are reported gross on the Statement of Assets and Liabilities. Exchange traded options and margin related to centrally 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 period end:


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

Bank of America NA	$	(409,947)	$	—	$	130,947	$	279,000	$	—
Barclays Bank plc		(38,229)		—		—		—		(38,229)
Citibank NA		(45,023)		45,023		—		—		—
Goldman Sachs Bank USA		(75,989)		75,989		—		—		—
Goldman Sachs Group, Inc. (The)		(64,847)		—		—		—		(64,847)
JPMorgan Chase Bank NA		(688,403)		428,834		—		—		(259,569)
Morgan Stanley		(27,863)		—		—		—		(27,863)
Morgan Stanley Capital Services, Inc.		(26,895)		26,895		—		—		—

46 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

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


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

Toronto Dominion Bank		(277,548)		26,227		—		251,321		—

	$	(1,654,744)	$	602,968	$	130,947	$	530,321	$	(390,508)

**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 at period end:

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

Foreign exchange contracts

Swaps, at value

48,267

Interest rate contracts

Swaps, at value

378,805

Interest rate contracts

Centrally cleared swaps, at value

48,830

Centrally cleared swaps, at value

152,712

Foreign exchange contracts

Unrealized appreciation on foreign currency exchange contracts

1,272,578

Unrealized depreciation on foreign currency exchange contracts

1,227,672

Total

1,321,408

1,807,456

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	Foreign currency transactions		Swap contracts		Total

Foreign exchange contracts	$	1,281,583	$	70,158	$	1,351,741
Interest rate contracts		—		16,758		16,758

Total	$	1,281,583	$	86,916	$	1,368,499


Amount of Change in Unrealized Gain or (Loss) Recognized on Derivatives
Derivatives Not Accounted for as Hedging Instruments	Investments*		Translation of assets and liabilities denominated in foreign currencies		Swap contracts		Total

Foreign exchange contracts	$	(2,843)	$	564,022	$	(65,738)	$	495,441
Interest rate contracts		—		—		(366,892)		(366,892)

Total	$	(2,843)	$	564,022	$	(432,630)	$	128,549

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

47 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

7. Shares of Beneficial Interest

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


	Six Months Ended November 30, 2015					Year Ended May 29, 2015 ¹
	Shares			Amount		Shares			Amount

Class A
Sold		319,450		$	2,343,515		635,619		$	5,460,176
Dividends and/or distributions reinvested		91,388			662,506		159,194			1,360,020
Redeemed		(517,718	)		(3,824,407)		(1,551,935	)		(13,340,353)

Net decrease		(106,880	)	$	(818,386)		(757,122	)	$	(6,520,157)


Class C
Sold		54,496		$	400,830		285,812		$	2,454,409
Dividends and/or distributions reinvested		34,328			249,083		60,386			515,821
Redeemed		(252,808	)		(1,858,735)		(662,014	)		(5,640,810)

Net decrease		(163,984	)	$	(1,208,822)		(315,816	)	$	(2,670,580)


Class I
Sold		236		$	1,725		288,998		$	2,520,216
Dividends and/or distributions reinvested		10,807			78,224		8,586			69,488
Redeemed		(2,038	)		(14,385)		(1,186	)		(9,892)

Net increase		9,005		$	65,564		296,398		$	2,579,812


Class R²
Sold		10,784		$	80,101		44,204		$	379,008
Dividends and/or distributions reinvested		5,308			38,490		9,185			78,368
Redeemed		(30,305	)		(224,406)		(88,042	)		(754,945)

Net decrease		(14,213	)	$	(105,815)		(34,653	)	$	(297,569)


Class Y
Sold		609,453		$	4,411,618		329,593		$	2,923,872
Dividends and/or distributions reinvested		15,577			112,998		32,248			275,435
Redeemed		(688,409	)		(4,977,097)		(965,101	)		(8,226,154)

Net decrease		(63,379	)	$	(452,481)		(603,260	)	$	(5,026,847)

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

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

8. 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 reporting period were as follows:

48 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

8. Purchases and Sales of Securities (Continued)


	Purchases		Sales

Investment securities		$20,201,317		$16,315,113

9. 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 reporting period 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 Trustees 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 Trustees. The Fund purchases shares of the funds selected for deferral by the Trustees in amounts equal to his or her deemed investment,

49 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

9. Fees and Other Transactions with Affiliates (Continued)

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.

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 votes annually to approve their 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.

50 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

9. Fees and Other Transactions with Affiliates (Continued)

Waivers and Reimbursements of Expenses. The Manager has agreed to voluntarily 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”, excluding interest and fees from borrowings will not exceed 1.25% of average annual net assets for Class A shares, 2.00% for Class C shares, 0.85% for Class I, 1.50% for Class R shares and 0.95% for Class Y shares. During the reporting period, the Manager reimbursed the Fund $32,731, $14,824, $2,423, $1,913 and $6,717 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 reporting period, the Manager waived fees and/or reimbursed the Fund $165 for IMMF management fees.

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

10. Borrowings and Other Financing

Joint Credit Facility. A number of mutual funds managed by the Manager participate in a $1.28 billion revolving credit facility (the “Facility”) intended to provide short-term financing, if necessary, subject to certain restrictions in connection with atypical redemption activity. Expenses and fees related to the Facility are paid by the participating funds and are disclosed separately or as other expenses on the Statement of Operations. The Fund did not utilize the Facility during the reporting period.

11. Pending Litigation

In 2009, several putative class action lawsuits were filed and later consolidated before the U.S. District Court for the District of Colorado against OppenheimerFunds, Inc. (“OFI”), OppenheimerFunds Distributor, Inc. (“OFDI”), and Oppenheimer Rochester California Municipal Fund, a fund advised by OFI Global Asset Management, Inc. and distributed by the Distributor (the “California Fund”), in connection with the California Fund’s investment performance. The plaintiffs asserted claims against OFI, OFDI and certain present and former trustees and officers of the California Fund under the federal securities laws, alleging, among other things, that the disclosure documents of the California Fund contained misrepresentations and omissions and the investment policies of the California Fund were not followed. Plaintiffs in the suit filed an amended complaint and defendants filed a motion to dismiss. In 2011, the court issued an order which granted in part and denied in part the defendants’ motion to dismiss. In 2012, plaintiffs filed a motion, which defendants opposed, to certify a class and appoint class representatives and class counsel. In March 2015, the court granted plaintiffs’ motion for class certification. In May 2015, the U.S. Court of Appeals for the Tenth Circuit vacated the class certification order and remanded the matter to the district court for further proceedings. In October 2015, the district court reaffirmed its order granting plaintiffs’ motion for class certification. In December 2015, the Tenth Circuit denied defendants’ petition to appeal the district court’s reaffirmed class certification order.

51 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

NOTES TO FINANCIAL STATEMENTS Unaudited / Continued

11. Pending Litigation (Continued)

OFI and OFDI believe the suit is without merit; that it is premature to render any opinion as to the likelihood of an outcome unfavorable to them in the suit; and that no estimate can yet be made as to the amount or range of any potential loss. Furthermore, OFI believes that the suit should not impair the ability of OFI or OFDI to perform their respective duties to the Fund and that the outcome of the suit should not have any material effect on the operations of any of the Oppenheimer funds.

52 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

BOARD APPROVAL OF THE FUND’S INVESTMENT ADVISORY AND

SUB-ADVISORY AGREEMENTS Unaudited

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

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

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

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

The Board also considered the quality of the services provided and the quality of the Managers’ resources that are available to the Fund. The Board took account of the fact that

53 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

BOARD APPROVAL OF THE FUND’S INVESTMENT ADVISORY AND

SUB-ADVISORY AGREEMENTS Unaudited / Continued

the Sub-Adviser has had over fifty years of experience as an investment adviser and that its assets under management rank it among the top mutual fund managers in the United States. The Board evaluated the Managers’ advisory, administrative, accounting, legal, compliance services and risk management, and information the Board has received regarding the experience and professional qualifications of the Managers’ key personnel and the size and functions of its staff. In its evaluation of the quality of the portfolio management services provided, the Board considered the experience of Hemant Baijal, the portfolio manager for the Fund, and the Sub-Adviser’s investment team and analysts. The Board members also considered the totality of their experiences with the Managers as directors or trustees of the Fund and other funds advised by the Managers. The Board considered information regarding the quality of services provided by affiliates of the Managers, which the Board members have become knowledgeable about through their experiences with the Managers and in connection with the renewal of the Fund’s service agreements. The Board concluded, in light of the Managers’ experience, reputation, personnel, operations and resources that the Fund benefits from the services provided under the Agreements.

Investment Performance of the Managers and the Fund. Throughout the year, the Managers provided information on the investment performance of the Fund, including comparative performance information. The Board also reviewed information, prepared by the Managers and the independent consultant, comparing the Fund’s historical performance to relevant market indices and to the performance of other retail emerging markets bond funds. The Board noted that the Fund underperformed its category median for the one- and three-year periods. The Board considered that the Fund’s underperformance versus its category median during these periods was mostly due to the fact that, unlike other competitors in its category, the Fund has a blended approach that incorporates emerging market hard currency debt, emerging market local currency debt and emerging market corporate debt. The Board took into consideration the Adviser’s assertion that value has been restored in emerging market local currency debt and that the Adviser continues to see positive underlying fundamentals in emerging market local currency debt, which it believes have potential to drive long-term outperformance of the asset class. The Board also took into account recent changes to the Fund, including that Hemant Baijal was appointed as the Fund’s portfolio manager effective March 31, 2015.

Fees and Expenses of the Fund. The Board reviewed the fees paid to the Managers and the other expenses borne by the Fund. The Board noted that the Adviser, not the Fund, pays the Sub-Adviser’s fee under the sub-advisory agreement. The independent consultant provided comparative data in regard to the fees and expenses of the Fund and other retail emerging markets bond funds with comparable asset levels and distribution features. The Board noted that the Fund’s contractual management fee was equal to its peer group median and slightly lower than its category median, and that the Fund’s total expenses were slightly lower than its peer group median and category median. The Board also considered that within the total asset range of $50 million to $100 million, the Fund’s effective management fee was equal to its peer group median and its category median. The Board noted that the Fund’s contractual management fees rank in the second quintile and the total expenses rank in the third quintile. The Board also considered that the Adviser has contractually agreed to waive fees and/or reimburse the Fund so that total expenses, as a percentage of average daily

54 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

net assets, will not exceed the following annual rates: 1.25% for Class A shares; 2.00% for Class C shares; 1.50% for Class R shares; 0.95% for Class Y shares; and 0.85% for Class I shares. This waiver and/or reimbursement may not be amended or withdrawn for one year from the date of the Fund’s prospectus.

Economies of Scale and Profits Realized by the Managers. The Board considered information regarding the Managers’ costs in serving as the Fund’s investment adviser and sub-adviser, including the costs associated with the personnel and systems necessary to manage the Fund, and information regarding the Managers’ profitability from their relationship with the Fund. The Board reviewed whether the Managers may realize economies of scale in managing and supporting the Fund. The Board noted that the Fund currently has management fee breakpoints, which are intended to share with Fund shareholders economies of scale that may exist as the Fund’s assets grow.

Other Benefits to the Managers. In addition to considering the profits realized by the Managers, the Board considered information that was provided regarding the direct and indirect benefits the Managers receive as a result of their relationship with the Fund, including compensation paid to the Managers’ affiliates.

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

Based on its review of the information it received and its evaluations described above, the Board, including a majority of the independent Trustees, decided to continue the Agreements through August 31, 2016. In arriving at its decision, the Board did not identify any factor or factors as being more important than others, but considered all of the above information, and considered the terms and conditions of the Agreements, including the management fees, in light of all the surrounding circumstances.

55 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.

56 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND

OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND


Trustees and Officers		Sam Freedman, Chairman of the Board of Trustees and Trustee
		Jon S. Fossel, Trustee
		Richard F. Grabish, Trustee
		Beverly L. Hamilton, Trustee
		Victoria J. Herget, Trustee
		Robert J. Malone, Trustee
		F. William Marshall, Jr., Trustee
		Karen L. Stuckey, Trustee
		James D. Vaughn, Trustee
		Arthur P. Steinmetz, Trustee, President and Principal Executive Officer
		Hemant Baijal, Vice President
		Arthur S. Gabinet, Secretary and Chief Legal Officer
		Jennifer Sexton, Vice President and Chief Business Officer
		Mary Ann Picciotto, Chief Compliance Officer and Chief Anti-Money
		Laundering Officer
		Brian W. Wixted, Treasurer and Principal Financial & Accounting Officer

Manager		OFI Global Asset Management, Inc.

Sub-Adviser		OppenheimerFunds, Inc.

Distributor		OppenheimerFunds Distributor, Inc.

Transfer and Shareholder		OFI Global Asset Management, Inc.
Servicing Agent

Sub-Transfer Agent		Shareholder Services, Inc.
		DBA OppenheimerFunds Services

Independent Registered		KPMG LLP
Public Accounting Firm

Legal Counsel		Ropes & Gray LLP

		The financial statements included herein have been taken from the records of the Fund without examination of those records by the independent registered public accounting firm.

57 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:

● Applications or other forms

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

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

● Your transactions with us, our affiliates or others

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

● When you set up challenge questions to reset your password online

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

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

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

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

Protection of Information

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

Disclosure of Information

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.

58 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.


●		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.
●		Encryption is achieved through an electronic scrambling technology that uses a “key” to code and then decode the data. Encryption acts like the cable converter box you may have on your television set. It scrambles data with a secret code so that no one can make sense of it while it is being transmitted. When the data reaches its destination, the same software unscrambles the data.
●		You can exit the secure area by either closing your browser, or for added security, you can use the Log Out button before you close your browser.

Other Security Measures

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

How You Can Help

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

Who We Are

This joint notice describes the privacy policies of the Oppenheimer funds, OppenheimerFunds, Inc., 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).

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63 OPPENHEIMER EMERGING MARKETS LOCAL DEBT FUND




		Visit us at oppenheimerfunds.com for 24-hr access to account information and transactions or call us at 800 CALL OPP (800 225 5677) for 24-hr automated information and automated transactions. Representatives also available Mon–Fri 8am–8pm ET.

Visit Us

oppenheimerfunds.com

Call Us

800 225 5677

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		Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc.
		225 Liberty Street, New York, NY 10281-1008
		© 2016 OppenheimerFunds Distributor, Inc. All rights reserved.
		RS1360.001.1115 January 21, 2016

Item 2. Code of Ethics.

Not applicable to semiannual reports.

Item 3. Audit Committee Financial Expert.

Not applicable to semiannual reports.

Item 4. Principal Accountant Fees and Services.

Not applicable to semiannual reports.

Item 5. Audit Committee of Listed Registrants

Not applicable.

Item 6. Schedule of Investments.

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

b) Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders.

The Fund’s Governance Committee Provisions with Respect to Nominations of Directors/Trustees to the Respective Boards

None

Item 11. Controls and Procedures.

Based on their evaluation of the registrant’s disclosure controls and procedures (as defined in rule 30a-3(c) under the Investment Company Act of 1940 (17 CFR 270.30a-3(c)) as of 11/30/2015, 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) Not applicable to semiannual reports.

(2) Exhibits attached hereto.

(3) Not applicable.

(b)	Exhibit attached hereto.

SIGNATURES

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

Oppenheimer Emerging Markets Local Debt Fund


By:		/s/ Arthur P. Steinmetz
		Arthur P. Steinmetz
		Principal Executive Officer
Date:		1/15/2016

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:		1/15/2016

By:		/s/ Brian W. Wixted
		Brian W. Wixted
		Principal Financial Officer
Date:		1/15/2016