nvcsrs
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 811-3694
Oppenheimer Gold & Special Minerals 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
OppenheimerFunds, Inc.
Two World Financial
Center, New York, New York 10281-1008
(Name and address of agent for service)
Registrants telephone number, including area code: (303) 768-3200
Date of fiscal year end: June 30
Date of reporting period: 12/30/2011
Item 1. Reports to Stockholders.
Decembeer 31,2011
oppenheimer gold & special minerals fund
Management commentary and semiannual report
Management commentary An interview with your funds portfolio Manager
semiannual report listing of top holdings financial statements |
TOP HOLDINGS AND ALLOCATIONS
Top Ten Common Stock Holdings
|
|
|
|
|
Barrick Gold Corp. |
|
|
6.2 |
% |
Newmont Mining Corp. |
|
|
5.6 |
|
Goldcorp, Inc. |
|
|
4.9 |
|
Silver Wheaton Corp. |
|
|
4.0 |
|
Agnico-Eagle Mines Ltd. |
|
|
3.7 |
|
Kinross Gold Corp. |
|
|
3.5 |
|
New Gold, Inc. |
|
|
3.2 |
|
IAMGOLD Corp. |
|
|
2.9 |
|
Eldorado Gold Corp. |
|
|
2.9 |
|
Newcrest Mining Ltd. |
|
|
2.6 |
|
Portfolio holdings and allocations are subject to change. Percentages are as of December 30, 2011,
and are based on net assets. For more current Top 10 Fund holdings, please visit
oppenheimerfunds.com.
Regional Allocation
Portfolio holdings and allocations are subject to change. Percentages are as of December 30, 2011,
and are based on the total market value of investments.
7 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
NOTES
Total returns include changes in share price and reinvestment of dividends and capital gains
distributions in a hypothetical investment for the periods shown. Cumulative total returns are not
annualized. The Funds total returns shown do not reflect the deduction of income taxes on an
individuals investment. Taxes may reduce your actual investment returns on income or gains paid by
the Fund or any gains you may realize if you sell your shares.
Before investing in any of the Oppenheimer funds, investors should carefully consider a funds
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.
The Funds investment strategy and focus can change over time. The mention of specific fund
holdings does not constitute a recommendation by OppenheimerFunds, Inc.
Class A shares of the Fund
were first publicly offered on 7/19/83. Unless otherwise noted, Class A returns include the current
maximum initial sales charge of 5.75%.
Class B shares of the Fund were first publicly offered on 11/1/95. Unless otherwise noted, Class B
returns include the applicable contingent deferred sales charge of 5% (1-year) and
2% (5-year). Because Class B shares convert to Class A shares 72 months after purchase, the 10-year
return for Class B shares uses Class A performance for the period after conversion. Class B shares
are subject to an annual 0.75% asset-based sales charge.
Class C shares of the Fund were first publicly offered on 11/1/95. Unless otherwise noted, Class C
returns include the contingent deferred sales charge of 1% for the 1-year period. Class C shares
are subject to an annual 0.75% asset-based sales charge.
Class N shares of the Fund were first publicly offered on 3/1/01. Class N shares are offered only
through retirement plans. Unless otherwise noted, Class N returns include the contingent deferred
sales charge of 1% for the 1-year period. Class N shares are subject to an annual 0.25% asset-based
sales charge.
Class Y shares of the Fund were first publicly offered on 9/7/10. Class Y shares are offered only
to fee-based clients of dealers that have a special agreement with the Distributor, to certain
institutional investors under a special agreement with the Distributor, and to present or former
officers, directors, trustees or employees (and their eligible family members) of the Fund, the
Manager, its affiliates, its parent company and the subsidiaries of its parent company, and
retirement plans established for the benefit of such individuals. There is no sales charge for
Class Y shares.
An explanation of the calculation of performance is in the Funds Statement of Additional
Information.
8 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
FUND EXPENSES
Fund Expenses. As a shareholder of the Fund, you incur two types of costs: (1) transaction costs,
which may include sales charges (loads) on purchase payments, contingent deferred sales charges on
redemptions and (2) ongoing costs, including management fees; distribution and service fees; and
other Fund expenses. These examples are intended to help you understand your ongoing costs (in
dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in
other mutual funds.
The examples are based on an investment of $1,000.00 invested at the beginning of the period and
held for the entire 6-month period ended December 30, 2011.
Actual Expenses. The first section of the table provides information about actual account values
and actual expenses. You may use the information in this section for the class of shares you hold,
together with the amount you invested, to estimate the expense that you paid over the period.
Simply divide your account value by $1,000.00 (for example, an $8,600.00 account value divided by
$1,000.00 = 8.60), then multiply the result by the number in the first section under the heading
entitled Expenses Paid During Period to estimate the expenses you paid on your account during
this period.
Hypothetical Example for Comparison Purposes. The second section of the table provides information
about hypothetical account values and hypothetical expenses based on the Funds actual expense
ratio for each class of shares, and an assumed rate of return of 5% per year for each class before
expenses, which is not the actual return. The hypothetical account values and expenses may not be
used to estimate the actual ending account balance or expenses you paid for the period. You may use
this information to compare the ongoing costs of investing in the Fund and other funds. To do so,
compare this 5% hypothetical example for the class of shares you hold with the 5% hypothetical
examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and
do not reflect any transactional costs, such as front-end or contingent deferred sales charges
(loads), or a $12.00 fee imposed annually on accounts valued at less than $500.00 (subject to
exceptions described in the Statement of Additional Information). Therefore, the hypothetical
section of the table is useful in comparing ongoing costs only, and will not help you determine the
relative total costs of owning different funds. In addition, if these transactional costs were
included, your costs would have been higher.
9 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
FUND EXPENSES Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning |
|
|
Ending |
|
|
Expenses |
|
|
|
Account |
|
|
Account |
|
|
Paid During |
|
|
|
Value |
|
|
Value |
|
|
6 Months Ended |
|
Actual |
|
July 1, 2011 |
|
|
December 30, 2011 |
|
|
December 30, 2011 |
|
|
Class A |
|
$ |
1,000.00 |
|
|
$ |
825.00 |
|
|
$ |
5.63 |
|
Class B |
|
|
1,000.00 |
|
|
|
821.80 |
|
|
|
8.93 |
|
Class C |
|
|
1,000.00 |
|
|
|
822.40 |
|
|
|
8.38 |
|
Class N |
|
|
1,000.00 |
|
|
|
823.90 |
|
|
|
6.64 |
|
Class Y |
|
|
1,000.00 |
|
|
|
826.70 |
|
|
|
3.34 |
|
|
Hypothetical |
|
|
|
|
|
|
|
|
|
|
|
|
(5% return before expenses) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A |
|
|
1,000.00 |
|
|
|
1,018.85 |
|
|
|
6.23 |
|
Class B |
|
|
1,000.00 |
|
|
|
1,015.25 |
|
|
|
9.87 |
|
Class C |
|
|
1,000.00 |
|
|
|
1,015.85 |
|
|
|
9.26 |
|
Class N |
|
|
1,000.00 |
|
|
|
1,017.75 |
|
|
|
7.34 |
|
Class Y |
|
|
1,000.00 |
|
|
|
1,021.35 |
|
|
|
3.70 |
|
Expenses are equal to the Funds 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 December 30, 2011 are as follows:
|
|
|
|
|
Class |
|
Expense Ratios |
|
|
Class A |
|
|
1.23 |
% |
Class B |
|
|
1.95 |
|
Class C |
|
|
1.83 |
|
Class N |
|
|
1.45 |
|
Class Y |
|
|
0.73 |
|
The expense ratios reflect voluntary waivers and/or reimbursements of expenses by the Funds
Manager and Transfer Agent. Some of these undertakings may be modified or terminated at any time,
as indicated in the Funds prospectus. The Financial Highlights tables in the Funds financial
statements, included in this report, also show the gross expense ratios, without such waivers or
reimbursements and reduction to custodian expenses, if applicable.
10 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
STATEMENT OF INVESTMENTS December 30, 2011* / Unaudited
|
|
|
|
|
|
|
|
|
|
|
Shares |
|
|
Value |
|
Wholly-Owned Subsidiary2.6% |
|
|
|
|
|
|
|
|
Oppenheimer Gold &
Special Minerals Fund
(Cayman) Ltd.1,2
(Cost $98,659,025) |
|
|
4,056 |
|
|
$ |
92,032,048 |
|
Common Stocks97.1% |
|
|
|
|
|
|
|
|
Energy0.4% |
|
|
|
|
|
|
|
|
Oil, Gas & Consumable Fuels0.4% |
|
|
|
|
|
|
|
|
Uranium Energy
Corp.1,2,3 |
|
|
4,800,000 |
|
|
|
14,688,000 |
|
Materials96.7% |
|
|
|
|
|
|
|
|
Metals & Mining96.7% |
|
|
|
|
|
|
|
|
Agnico-Eagle
Mines Ltd.3,4 |
|
|
3,617,838 |
|
|
|
131,399,876 |
|
Agnico-Eagle
Mines Ltd.4 |
|
|
55,870 |
|
|
|
2,031,886 |
|
Alacer Gold Corp.2,3 |
|
|
3,920,300 |
|
|
|
40,367,065 |
|
Alacer Gold Corp.,
Legend Shares2 |
|
|
3,000,000 |
|
|
|
30,890,798 |
|
Alamos Gold, Inc.3 |
|
|
5,297,350 |
|
|
|
91,257,416 |
|
Allied Nevada
Gold Corp.2,4 |
|
|
1,011,000 |
|
|
|
30,613,080 |
|
Allied Nevada |
|
|
|
|
|
|
|
|
Gold Corp.2,3,4 |
|
|
2,405,200 |
|
|
|
73,070,861 |
|
AngloGold Ashanti |
|
|
|
|
|
|
|
|
Ltd., Sponsored ADR |
|
|
1,180,000 |
|
|
|
50,091,000 |
|
Argonaut Gold, Inc.2 |
|
|
860,000 |
|
|
|
5,866,994 |
|
AuRico Gold, Inc.2,3,4 |
|
|
5,259,100 |
|
|
|
42,125,391 |
|
AuRico Gold, Inc.2,4 |
|
|
546,815 |
|
|
|
4,395,990 |
|
Aurizon Mines Ltd.2 |
|
|
4,792,757 |
|
|
|
23,522,734 |
|
Avion Gold Corp.2 |
|
|
7,899,933 |
|
|
|
12,562,347 |
|
B2Gold Corp.2 |
|
|
9,411,108 |
|
|
|
28,637,482 |
|
Banro Corp.2,3,4 |
|
|
2,727,268 |
|
|
|
10,090,892 |
|
Banro Corp.2,4 |
|
|
4,138,800 |
|
|
|
15,356,725 |
|
Barrick Gold Corp.3 |
|
|
4,887,015 |
|
|
|
221,137,429 |
|
Bear Creek Mining |
|
|
|
|
|
|
|
|
Corp.2 |
|
|
4,070,333 |
|
|
|
14,143,783 |
|
Centamin plc2 |
|
|
18,400,000 |
|
|
|
23,840,982 |
|
Centerra Gold, Inc.3 |
|
|
1,447,151 |
|
|
|
25,569,294 |
|
Chesapeake Gold
Corp.2 |
|
|
881,775 |
|
|
|
8,776,637 |
|
China Gold International |
|
|
|
|
|
|
|
|
Resources Corp. Ltd.2 |
|
|
5,305,926 |
|
|
|
13,333,174 |
|
Claude Resources, Inc.2 |
|
|
1,424,790 |
|
|
|
1,902,051 |
|
Coeur dAlene Mines |
|
|
|
|
|
|
|
|
Corp.2 |
|
|
1,830,700 |
|
|
|
44,193,098 |
|
Colossus Minerals,
Inc.2 |
|
|
4,991,767 |
|
|
|
29,546,361 |
|
Continental Gold Ltd.2 |
|
|
2,664,465 |
|
|
|
19,668,002 |
|
Detour Gold Corp.2,3 |
|
|
3,654,800 |
|
|
|
90,226,474 |
|
Duluth Metals Ltd.1,2 |
|
|
7,804,800 |
|
|
|
16,011,811 |
|
Dundee Precious
Metals, Inc.2 |
|
|
2,200,000 |
|
|
|
17,751,166 |
|
Eldorado Gold Corp.3,4 |
|
|
7,365,400 |
|
|
|
101,362,364 |
|
Eldorado Gold Corp.3,4 |
|
|
2,316,278 |
|
|
|
31,756,171 |
|
Eldorado Gold Corp.,
CDI |
|
|
1,760,000 |
|
|
|
24,481,697 |
|
European Goldfields
Ltd.2,3 |
|
|
4,197,114 |
|
|
|
48,944,014 |
|
Extorre Gold Mines
Ltd.1,2,3 |
|
|
3,646,400 |
|
|
|
26,952,041 |
|
Extorre Gold Mines
Ltd., Legend Shares1,2 |
|
|
4,942,922 |
|
|
|
36,535,168 |
|
First Majestic Silver
Corp.2 |
|
|
2,360,000 |
|
|
|
39,798,577 |
|
Franco-Nevada
Corp.3,4 |
|
|
480,000 |
|
|
|
18,273,600 |
|
Franco-Nevada Corp.4 |
|
|
581,823 |
|
|
|
22,147,824 |
|
Freeport-McMoRan
Copper & Gold, Inc.,
Cl. B |
|
|
1,250,000 |
|
|
|
45,987,500 |
|
Fresnillo plc |
|
|
420,000 |
|
|
|
9,959,933 |
|
Globe Specialty Metals,
Inc. |
|
|
73,500 |
|
|
|
984,165 |
|
Gold Fields Ltd., |
|
|
|
|
|
|
|
|
Sponsored ADR |
|
|
1,450,000 |
|
|
|
22,112,500 |
|
Goldcorp, Inc.3,4 |
|
|
3,928,561 |
|
|
|
173,838,824 |
|
Goldcorp, Inc.4 |
|
|
1,999,704 |
|
|
|
88,742,692 |
|
Guyana Goldfields,
Inc.2 |
|
|
1,156,500 |
|
|
|
8,514,110 |
|
Harmony Gold
Mining Co. Ltd.,
Sponsored ADR |
|
|
300,000 |
|
|
|
3,492,000 |
|
11 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
|
|
|
|
|
|
|
|
|
|
|
Shares |
|
|
Value |
|
Metals & Mining Continued |
IAMGOLD Corp. |
|
|
6,419,845 |
|
|
$ |
101,754,543 |
|
International Minerals
Corp.2 |
|
|
404,446 |
|
|
|
2,302,613 |
|
Ivanhoe Mines Ltd.2,3 |
|
|
3,279,447 |
|
|
|
58,111,801 |
|
Kinross Gold Corp.3,4 |
|
|
10,827,771 |
|
|
|
123,609,302 |
|
Kinross Gold Corp.3,4 |
|
|
6,808,890 |
|
|
|
77,621,346 |
|
Kirkland Lake
Gold, Inc.2 |
|
|
2,360,300 |
|
|
|
35,725,964 |
|
Koza Altin
Isletmeleri AS |
|
|
880,000 |
|
|
|
11,663,630 |
|
Lake Shore Gold
Corp.1,2 |
|
|
19,003,718 |
|
|
|
23,877,064 |
|
Lydian
International Ltd.1,2 |
|
|
1,985,907 |
|
|
|
4,503,014 |
|
Medusa Mining Ltd. |
|
|
3,000,000 |
|
|
|
13,654,356 |
|
Minefinders
Corp. Ltd.2 |
|
|
3,156,989 |
|
|
|
33,464,083 |
|
New Gold, Inc.2,3 |
|
|
11,343,570 |
|
|
|
114,465,668 |
|
Newcrest Mining Ltd. |
|
|
3,039,013 |
|
|
|
92,005,589 |
|
Newmont
Mining Corp.3 |
|
|
3,298,728 |
|
|
|
197,956,667 |
|
Osisko Mining Corp.2,3 |
|
|
6,275,653 |
|
|
|
60,615,878 |
|
Pan American
Silver Corp.3 |
|
|
1,622,441 |
|
|
|
35,385,438 |
|
Paramount Gold &
Silver Corp.2 |
|
|
114,760 |
|
|
|
245,586 |
|
Perseus Mining Ltd.2 |
|
|
2,700,000 |
|
|
|
6,731,779 |
|
Premier Gold
Mines Ltd.1,2 |
|
|
7,158,900 |
|
|
|
31,762,678 |
|
Rainy River
Resources Ltd.1,2 |
|
|
3,539,800 |
|
|
|
24,843,750 |
|
Randgold Resources
Ltd., ADR3 |
|
|
214,514 |
|
|
|
21,901,879 |
|
Real Gold Mining Ltd. |
|
|
10,400,000 |
|
|
|
3,559,241 |
|
Rio Alto Mining Ltd.2 |
|
|
813,668 |
|
|
|
2,547,829 |
|
Romarco
Minerals, Inc.1,2 |
|
|
29,927,000 |
|
|
|
31,726,292 |
|
Romarco Minerals,
Inc., Legend Shares1,2,5 |
|
|
4,200,000 |
|
|
|
4,452,515 |
|
Royal Gold, Inc.3 |
|
|
303,050 |
|
|
|
20,434,662 |
|
Rubicon
Minerals Corp.1,2,3 |
|
|
14,371,727 |
|
|
|
54,325,128 |
|
San Gold Corp.1,2 |
|
|
20,589,712 |
|
|
|
38,198,337 |
|
SEMAFO, Inc.3 |
|
|
11,589,748 |
|
|
|
75,084,502 |
|
Silver Standard
Resources, Inc.2,3 |
|
|
402,530 |
|
|
|
5,562,965 |
|
Silver Wheaton Corp.3 |
|
|
4,919,200 |
|
|
|
142,460,032 |
|
Tahoe Resources, Inc.2 |
|
|
2,284,069 |
|
|
|
39,639,107 |
|
Timmins Gold Corp.2 |
|
|
5,781,224 |
|
|
|
11,065,901 |
|
Yamana Gold, Inc.3 |
|
|
5,051,400 |
|
|
|
74,475,610 |
|
Zhaojin Mining
Industry Co. Ltd. |
|
|
22,694,000 |
|
|
|
36,057,470 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,434,056,198 |
|
|
|
|
|
|
|
|
|
Total Common Stocks
(Cost $2,898,026,589) |
|
|
|
|
|
|
3,448,744,198 |
|
|
|
|
|
|
|
|
|
|
|
|
Units |
|
|
|
|
|
Rights, Warrants and
Certificates0.0% |
|
|
|
|
|
|
|
|
Duluth Metals Ltd. Wts.,
Strike Price $0.001,
Exp. 1/18/131,2 |
|
|
513,653 |
|
|
|
|
|
Kinross Gold Corp. Wts.,
Strike Price 21.939CAD,
Exp. 9/17/142 |
|
|
483,450 |
|
|
|
688,101 |
|
Silver Range
Resources Ltd. Wts.,
Strike Price $0.85,
Exp. 2/10/132 |
|
|
83,328 |
|
|
|
44,169 |
|
|
|
|
|
|
|
|
|
Total Rights, Warrants and
Certificates (Cost $148,711) |
|
|
|
|
|
|
732,270 |
|
Total Investments,
at Value
(Cost $2,996,834,325) |
|
|
99.7 |
% |
|
$ |
3,541,508,516 |
|
Other Assets Net
of Liabilities |
|
|
0.3 |
|
|
|
10,827,808 |
|
|
|
|
Net Assets |
|
|
100.0 |
% |
|
$ |
3,552,336,324 |
|
|
|
|
12 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
Footnotes to Statement of Investments
|
|
|
* |
|
December 30, 2011 represents the last business day of the Funds semiannual period. See Note 1 of
the accompanying Notes. |
Strike price is reported in U.S. Dollars except for those denoted in the following currency:
|
|
|
1. |
|
Is or was an affiliate, as defined in the Investment Company Act of 1940, at or during the
period ended December 30,
2011, by virtue of the Fund owning at least 5% of the voting securities of the issuer or as a
result of the Fund and the issuer
having the same investment adviser. Transactions during the period in which the issuer was an
affiliate are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares/Units |
|
|
Gross |
|
|
Gross |
|
|
Shares/Units |
|
|
|
June 30, 2011 |
|
|
Additions |
|
|
Reductions |
|
|
December 30, 2011 |
|
|
Duluth Metals Ltd. |
|
|
7,704,800 |
|
|
|
100,000 |
|
|
|
|
|
|
|
7,804,800 |
|
Duluth Metals Ltd. Wts., |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Strike Price $0.001, Exp. 1/18/13 |
|
|
|
|
|
|
513,653 |
|
|
|
|
|
|
|
513,653 |
|
East Asia Minerals Corp. |
|
|
5,679,700 |
|
|
|
|
|
|
|
5,679,700 |
|
|
|
|
|
Extorre Gold Mines Ltd. |
|
|
3,646,400 |
|
|
|
|
|
|
|
|
|
|
|
3,646,400 |
|
Extorre Gold Mines Ltd., |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Legend Shares |
|
|
4,942,922 |
|
|
|
|
|
|
|
|
|
|
|
4,942,922 |
|
Golden Minerals Co. |
|
|
454,000 |
|
|
|
|
|
|
|
454,000 |
|
|
|
|
|
Golden Minerals Co. |
|
|
335,952 |
|
|
|
|
|
|
|
335,952 |
|
|
|
|
|
Lake Shore Gold Corp.a |
|
|
16,803,718 |
|
|
|
2,200,000 |
|
|
|
|
|
|
|
19,003,718 |
|
Lake Shore Gold Corp., |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Legend Shares |
|
|
2,906,171 |
|
|
|
|
|
|
|
2,906,171 |
|
|
|
|
|
Lydian International Ltd.a |
|
|
4,757,937 |
|
|
|
50,000 |
|
|
|
2,822,030 |
|
|
|
1,985,907 |
|
Lydian International Ltd., |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Legend Shares |
|
|
1,313,454 |
|
|
|
|
|
|
|
1,313,454 |
|
|
|
|
|
Oppenheimer Gold & Special |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Minerals Fund (Cayman) Ltd.b |
|
|
4,056 |
|
|
|
|
|
|
|
|
|
|
|
4,056 |
|
Oppenheimer Institutional |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Money Market Fund, Cl. E |
|
|
22,339,401 |
|
|
|
383,678,299 |
|
|
|
406,017,700 |
|
|
|
|
|
Premier Gold Mines Ltd. |
|
|
7,058,900 |
|
|
|
100,000 |
|
|
|
|
|
|
|
7,158,900 |
|
Premier Gold Mines Ltd., |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Legend Shares |
|
|
835,000 |
|
|
|
|
|
|
|
835,000 |
|
|
|
|
|
Rainy River Resources Ltd.a |
|
|
3,489,800 |
|
|
|
50,000 |
|
|
|
|
|
|
|
3,539,800 |
|
Rainy River Resources Ltd., |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Legend Shares |
|
|
1,786,514 |
|
|
|
|
|
|
|
1,786,514 |
|
|
|
|
|
Romarco Minerals, Inc. |
|
|
29,927,000 |
|
|
|
|
|
|
|
|
|
|
|
29,927,000 |
|
Romarco Minerals, Inc., |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Legend Shares |
|
|
4,200,000 |
|
|
|
|
|
|
|
|
|
|
|
4,200,000 |
|
Rubicon Minerals Corp. |
|
|
14,371,727 |
|
|
|
|
|
|
|
|
|
|
|
14,371,727 |
|
Rubicon Minerals Corp., |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Legend Shares |
|
|
1,099,000 |
|
|
|
|
|
|
|
1,099,000 |
|
|
|
|
|
San Gold Corp. |
|
|
19,989,712 |
|
|
|
600,000 |
|
|
|
|
|
|
|
20,589,712 |
|
San Gold Corp., Legend Shares |
|
|
2,000,000 |
|
|
|
|
|
|
|
2,000,000 |
|
|
|
|
|
Uranium Energy Corp. |
|
|
5,229,508 |
|
|
|
|
|
|
|
429,508 |
|
|
|
4,800,000 |
|
13 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
Footnotes to Statement of Investments Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized |
|
|
|
Value |
|
|
Income |
|
|
Gain (Loss) |
|
|
Duluth Metals Ltd. |
|
$ |
16,011,811 |
|
|
$ |
53,358 |
|
|
$ |
|
|
Duluth Metals Ltd. Wts., Strike Price
$0.001, Exp. 1/18/13 |
|
|
|
|
|
|
|
|
|
|
|
|
East Asia Minerals Corp. |
|
|
|
|
|
|
577,873 |
|
|
|
(15,217,979 |
) |
Extorre Gold Mines Ltd. |
|
|
26,952,041 |
|
|
|
|
|
|
|
|
|
Extorre Gold Mines Ltd., Legend Shares |
|
|
36,535,168 |
|
|
|
|
|
|
|
|
|
Golden Minerals Co. |
|
|
|
|
|
|
|
|
|
|
(5,137,088 |
) |
Golden Minerals Co. |
|
|
|
|
|
|
|
|
|
|
(3,363,424 |
) |
Lake Shore Gold Corp.a |
|
|
|
c |
|
|
|
|
|
|
|
|
Lake Shore Gold Corp., Legend Shares |
|
|
|
|
|
|
|
|
|
|
(5,238,958 |
) |
Lydian International Ltd.a |
|
|
|
c |
|
|
|
|
|
|
(136,999 |
) |
Lydian International Ltd., Legend Shares |
|
|
|
|
|
|
|
|
|
|
385,001 |
|
Oppenheimer Gold & Special Minerals |
|
|
|
|
|
|
|
|
|
|
|
|
Fund (Cayman) Ltd.b |
|
|
92,032,048 |
|
|
|
|
|
|
|
51,210 |
|
Oppenheimer Institutional Money |
|
|
|
|
|
|
|
|
|
|
|
|
Market Fund, Cl. E |
|
|
|
|
|
|
10,642 |
|
|
|
|
|
Premier Gold Mines Ltd. |
|
|
31,762,678 |
|
|
|
|
|
|
|
|
|
Premier Gold Mines Ltd., Legend Shares |
|
|
|
|
|
|
|
|
|
|
1,777,118 |
|
Rainy River Resources Ltd.a |
|
|
|
c |
|
|
|
|
|
|
|
|
Rainy River Resources Ltd., Legend Shares |
|
|
|
|
|
|
|
|
|
|
554,915 |
|
Romarco Minerals, Inc. |
|
|
31,726,292 |
|
|
|
|
|
|
|
|
|
Romarco Minerals, Inc., Legend Shares |
|
|
4,452,515 |
|
|
|
|
|
|
|
|
|
Rubicon Minerals Corp. |
|
|
54,325,128 |
|
|
|
|
|
|
|
|
|
Rubicon Minerals Corp., Legend Shares |
|
|
|
|
|
|
|
|
|
|
(950,804 |
) |
San Gold Corp. |
|
|
38,198,337 |
|
|
|
|
|
|
|
|
|
San Gold Corp., Legend Shares |
|
|
|
|
|
|
|
|
|
|
(3,723,894 |
) |
Uranium Energy Corp. |
|
|
14,688,000 |
|
|
|
|
|
|
|
(1,239,364 |
) |
|
|
|
|
|
$ |
346,684,018 |
|
|
$ |
641,873 |
|
|
$ |
(32,240,266 |
) |
|
|
|
|
|
|
a. |
|
No longer an affiliate as of December 30, 2011. |
|
|
|
b. |
|
Investment in a wholly-owned subsidiary. See Note 1 of the accompanying Notes and individual financial statements of the entity included herein. |
|
|
|
c. |
|
The security is no longer an affiliate, therefore, the value has been excluded from this table. |
|
|
|
2. |
|
Non-income producing security. |
|
|
|
3. |
|
All or a portion of the security position is held in collateralized accounts to cover potential
obligations with respect to outstanding written options. See Note 5 of the accompanying Notes. |
|
|
|
4. |
|
The Fund holds securities which have been issued by the same entity and that trade on separate
exchanges. |
|
|
|
5. |
|
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 $4,452,515 or 0.13% of
the Funds net assets as of December 30, 2011. |
Valuation Inputs
Various data inputs are used in determining the value of each of the Funds investments as of the
reporting period end. These data inputs are categorized in the following hierarchy under applicable
financial accounting standards:
|
1) |
|
Level 1unadjusted quoted prices in active markets for identical assets or liabilities
(including securities actively traded on a securities exchange) |
|
|
2) |
|
Level 2inputs 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 3significant unobservable inputs (including the Managers own judgments about
assumptions that market participants would use in pricing the asset or liability). |
14 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
The table below categorizes amounts that are included in the Funds Statement of Assets and
Liabilities as of December 30, 2011 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: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholly-Owned Subsidiary |
|
$ |
|
|
|
$ |
92,032,048 |
|
|
$ |
|
|
|
$ |
92,032,048 |
|
Common Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy |
|
|
14,688,000 |
|
|
|
|
|
|
|
|
|
|
|
14,688,000 |
|
Materials |
|
|
3,358,618,476 |
|
|
|
71,878,481 |
|
|
|
3,559,241 |
|
|
|
3,434,056,198 |
|
Rights, Warrants and Certificates |
|
|
732,270 |
|
|
|
|
|
|
|
|
|
|
|
732,270 |
|
|
|
|
Total Investments, at Value |
|
|
3,374,038,746 |
|
|
|
163,910,529 |
|
|
|
3,559,241 |
|
|
|
3,541,508,516 |
|
Other Financial Instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency exchange contracts |
|
|
|
|
|
|
2,444 |
|
|
|
|
|
|
|
2,444 |
|
|
|
|
Total Assets |
|
$ |
3,374,038,746 |
|
|
$ |
163,912,973 |
|
|
$ |
3,559,241 |
|
|
$ |
3,541,510,960 |
|
|
|
|
Liabilities Table |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Financial Instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appreciated options written, at value |
|
$ |
(888,156 |
) |
|
$ |
|
|
|
$ |
|
|
|
$ |
(888,156 |
) |
Depreciated options written, at value |
|
|
(2,444,355 |
) |
|
|
|
|
|
|
|
|
|
|
(2,444,355 |
) |
Foreign currency exchange contracts |
|
|
|
|
|
|
(29,951 |
) |
|
|
|
|
|
|
(29,951 |
) |
|
|
|
Total Liabilities |
|
$ |
(3,332,511 |
) |
|
$ |
(29,951 |
) |
|
$ |
|
|
|
$ |
(3,362,462 |
) |
|
|
|
Currency contracts and forwards, if any, are reported at their unrealized appreciation/depreciation
at measurement date, which represents the change in the contracts value from trade date. Futures,
if any, are reported at their variation margin at measurement date, which represents the amount due
to/from the Fund at that date. All additional assets and liabilities included in the above table
are reported at their market value at measurement date.
The table below shows the significant transfers between Level 1 and Level 2. The Funds policy is
to recognize transfers in and transfers out as of the beginning of the reporting period.
|
|
|
|
|
|
|
|
|
|
|
Transfers into Level 1* |
|
|
Transfers out of Level 2* |
|
|
Assets Table |
|
|
|
|
|
|
|
|
Investments, at Value: |
|
|
|
|
|
|
|
|
Common Stocks |
|
|
|
|
|
|
|
|
Materials |
|
$ |
173,258,757 |
|
|
$ |
(173,258,757 |
) |
|
|
|
Total Assets |
|
$ |
173,258,757 |
|
|
$ |
(173,258,757 |
) |
|
|
|
|
|
|
* |
|
Transferred from Level 2 to Level 1 due to the presence of a readily available unadjusted quoted
market price. As of the prior reporting period end, these securities were absent of a readily
available unadjusted quoted market price due to a significant event occurring before the Funds
assets were valued but after the close of the securities respective exchanges. |
See the accompanying Notes for further discussion of the methods used in determining value of the
Funds investments, and a summary of changes to the valuation methodologies, if any, during the
reporting period.
15 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
Footnotes to Statement of Investments Continued
Distribution of investments representing geographic holdings, as a percentage of total investments
at value, is as follows:
|
|
|
|
|
|
|
|
|
Geographic Holdings |
|
Value |
|
|
Percent |
|
|
Canada |
|
$ |
2,502,694,202 |
|
|
|
70.7 |
% |
United States |
|
|
739,240,941 |
|
|
|
20.9 |
|
Australia |
|
|
136,232,706 |
|
|
|
3.9 |
|
South Africa |
|
|
75,695,500 |
|
|
|
2.1 |
|
China |
|
|
36,057,470 |
|
|
|
1.0 |
|
Jersey, Channel Islands |
|
|
26,404,893 |
|
|
|
0.7 |
|
Turkey |
|
|
11,663,630 |
|
|
|
0.3 |
|
United Kingdom |
|
|
9,959,933 |
|
|
|
0.3 |
|
Mongolia |
|
|
3,559,241 |
|
|
|
0.1 |
|
|
|
|
Total |
|
$ |
3,541,508,516 |
|
|
|
100.0 |
% |
|
|
|
Foreign Currency Exchange Contracts as of December 30, 2011 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Counterparty/ |
|
|
|
|
|
Amount |
|
|
Expiration |
|
|
|
|
|
|
Unrealized |
|
|
Unrealized |
|
Contract Description |
|
Buy/Sell |
|
|
(000s) |
|
|
Dates |
|
|
Value |
|
|
Appreciation |
|
|
Depreciation |
|
|
Brown Brothers Harriman |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canadian Dollar (CAD) |
|
Sell |
|
8,403 CAD |
|
|
1/3/12-1/9/12 |
|
|
$ |
8,248,535 |
|
|
$ |
|
|
|
$ |
18,003 |
|
|
JP Morgan Chase: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canadian Dollar (CAD) |
|
Sell |
|
5,181 CAD |
|
|
1/4/12-1/5-12 |
|
|
|
5,085,352 |
|
|
|
2,444 |
|
|
|
8,880 |
|
New Turkish Lira (TRY) |
|
Buy |
|
1,522 TRY |
|
|
1/3/12 |
|
|
|
803,783 |
|
|
|
|
|
|
|
3,068 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,444 |
|
|
|
11,948 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
2,444 |
|
|
$ |
29,951 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Written Options as of December 30, 2011 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized |
|
|
|
|
|
|
|
Number of |
|
|
Exercise |
|
|
Expiration |
|
|
Premiums |
|
|
|
|
|
|
Appreciation/ |
|
Description |
|
Type |
|
|
Contracts |
|
|
Price |
|
|
Date |
|
|
Received |
|
|
Value |
|
|
(Depreciation) |
|
|
Barrick Gold Corp. |
|
Put |
|
|
2,000 |
|
|
$ |
41.000 |
|
|
|
1/23/12 |
|
|
$ |
296,109 |
|
|
$ |
(56,000 |
) |
|
$ |
240,109 |
|
Centerra Gold, Inc. |
|
Put |
|
|
1,610 |
|
|
16.700 CAD |
|
|
1/23/12 |
|
|
|
210,616 |
|
|
|
(59,264 |
) |
|
|
151,352 |
|
Coeur dAlene Mines Corp. |
|
Put |
|
|
2,000 |
|
|
|
21.000 |
|
|
|
1/23/12 |
|
|
|
188,651 |
|
|
|
(40,000 |
) |
|
|
148,651 |
|
First Majestic Silver Corp. |
|
Put |
|
|
1,000 |
|
|
|
15.000 |
|
|
|
1/23/12 |
|
|
|
121,975 |
|
|
|
(30,000 |
) |
|
|
91,975 |
|
First Quantum Minerals Ltd. |
|
Put |
|
|
2,000 |
|
|
18.000 CAD |
|
|
1/23/12 |
|
|
|
275,649 |
|
|
|
(68,712 |
) |
|
|
206,937 |
|
Franco-Nevada Corp. |
|
Put |
|
|
2,000 |
|
|
|
40.000 |
|
|
|
1/23/12 |
|
|
|
263,950 |
|
|
|
(490,000 |
) |
|
|
(226,050 |
) |
Franco-Nevada Corp. |
|
Put |
|
|
2,000 |
|
|
40.000 CAD |
|
|
1/23/12 |
|
|
|
188,850 |
|
|
|
(328,834 |
) |
|
|
(139,984 |
) |
New Gold, Inc. |
|
Put |
|
|
6,000 |
|
|
13.000 CAD |
|
|
1/23/12 |
|
|
|
567,282 |
|
|
|
(1,625,521 |
) |
|
|
(1,058,239 |
) |
NovaGold Resources, Inc. |
|
Put |
|
|
2,000 |
|
|
|
9.000 |
|
|
|
1/23/12 |
|
|
|
203,951 |
|
|
|
(180,000 |
) |
|
|
23,951 |
|
Randgold Resources Ltd., ADR |
|
Put |
|
|
2,000 |
|
|
|
87.500 |
|
|
|
1/23/12 |
|
|
|
347,248 |
|
|
|
(50,000 |
) |
|
|
297,248 |
|
Randgold Resources Ltd., ADR |
|
Put |
|
|
1,000 |
|
|
|
90.000 |
|
|
|
1/23/12 |
|
|
|
94,776 |
|
|
|
(45,000 |
) |
|
|
49,776 |
|
Royal Gold, Inc. |
|
Put |
|
|
2,000 |
|
|
|
60.000 |
|
|
|
1/23/12 |
|
|
|
195,771 |
|
|
|
(80,000 |
) |
|
|
115,771 |
|
Royal Gold, Inc. |
|
Put |
|
|
1,012 |
|
|
|
50.000 |
|
|
|
1/23/12 |
|
|
|
123,439 |
|
|
|
(15,180 |
) |
|
|
108,259 |
|
Silver Wheaton Corp. |
|
Put |
|
|
2,000 |
|
|
|
29.000 |
|
|
|
1/23/12 |
|
|
|
301,949 |
|
|
|
(264,000 |
) |
|
|
37,949 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
3,380,216 |
|
|
$ |
(3,332,511 |
) |
|
$ |
47,705 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exercise price is reported in U.S. Dollars (USD), except for those denoted in the following
currency:
See accompanying Notes to Financial Statements.
16 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
STATEMENT OF ASSETS AND LIABILITIES Unaudited
December 30, 20111
|
|
|
|
|
Assets |
|
|
|
|
Investments, at valuesee accompanying statement of investments: |
|
|
|
|
Unaffiliated companies (cost $2,639,153,617) |
|
$ |
3,194,824,498 |
|
Affiliated companies (cost $259,021,683) |
|
|
254,651,970 |
|
Wholly-owned subsidiary (cost $98,659,025) |
|
|
92,032,048 |
|
|
|
|
|
|
|
|
3,541,508,516 |
|
|
|
|
|
Unrealized appreciation on foreign currency exchange contracts |
|
|
2,444 |
|
|
|
|
|
Receivables and other assets: |
|
|
|
|
Investments sold |
|
|
35,045,636 |
|
Shares of beneficial interest sold |
|
|
6,866,036 |
|
Dividends |
|
|
1,222,723 |
|
Other |
|
|
208,703 |
|
|
|
|
|
Total assets |
|
|
3,584,854,058 |
|
|
|
|
|
|
Liabilities |
|
|
|
|
Bank overdraft |
|
|
1,808,556 |
|
|
|
|
|
Bank overdraft-foreign currencies |
|
|
4,809,526 |
|
|
|
|
|
Appreciated options written, at value (premiums received $2,360,134) |
|
|
888,156 |
|
|
|
|
|
Depreciated options written, at value (premiums received $1,020,082) |
|
|
2,444,355 |
|
|
|
|
|
Unrealized depreciation on foreign currency exchange contracts |
|
|
29,951 |
|
|
|
|
|
Payables and other liabilities: |
|
|
|
|
Shares of beneficial interest redeemed |
|
|
19,483,936 |
|
Transfer and shareholder servicing agent fees |
|
|
1,108,274 |
|
Investments purchased |
|
|
803,783 |
|
Distribution and service plan fees |
|
|
657,750 |
|
Trustees compensation |
|
|
209,738 |
|
Shareholder communications |
|
|
155,166 |
|
Other |
|
|
118,543 |
|
|
|
|
|
Total liabilities |
|
|
32,517,734 |
|
|
|
|
|
|
Net Assets |
|
$ |
3,552,336,324 |
|
|
|
|
|
Composition of Net Assets |
|
|
|
|
Paid-in capital |
|
$ |
3,341,514,542 |
|
|
|
|
|
Accumulated net investment loss |
|
|
(468,994,246 |
) |
|
|
|
|
Accumulated net realized gain on investments and foreign currency transactions |
|
|
135,080,784 |
|
|
|
|
|
Net unrealized appreciation on investments and translation of assets and
liabilities denominated in foreign currencies |
|
|
544,735,244 |
|
|
|
|
|
|
|
|
|
|
Net Assets |
|
$ |
3,552,336,324 |
|
|
|
|
|
1. December 30, 2011 represents the last business day of the Funds semiannual period. See Note 1
of the accompanying Notes.
17 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
STATEMENT OF ASSETS AND LIABILITIES Unaudited / Continued
|
|
|
|
|
Net Asset Value Per Share |
|
|
|
|
Class A Shares: |
|
|
|
|
Net asset value and redemption price per share (based on net assets of $2,018,436,778
and 58,206,741 shares of beneficial interest outstanding) |
|
$ |
34.68 |
|
Maximum offering price per share (net asset value plus sales charge of 5.75% of offering price) |
|
$ |
36.80 |
|
Class B Shares: |
|
|
|
|
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $128,870,755 and 3,894,111 shares of
beneficial interest outstanding) |
|
$ |
33.09 |
|
Class C Shares: |
|
|
|
|
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $515,564,626 and 15,728,449 shares of
beneficial interest outstanding) |
|
$ |
32.78 |
|
Class N Shares: |
|
|
|
|
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $227,514,338 and 6,780,365 shares of
beneficial interest outstanding) |
|
$ |
33.55 |
|
Class Y Shares: |
|
|
|
|
Net asset value, redemption price and offering price per share (based on net assets of
$661,949,827 and 19,192,037 shares of beneficial interest outstanding) |
|
$ |
34.49 |
|
See accompanying Notes to Financial Statements.
18 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
STATEMENT OF OPERATIONS Unaudited
For the Six Months Ended December 30, 20111
|
|
|
|
|
Investment Income |
|
|
|
|
Dividends: |
|
|
|
|
Unaffiliated companies (net of foreign withholding taxes of $1,283,276) |
|
$ |
12,449,029 |
|
Affiliated companies (net of foreign withholding taxes of $128,741) |
|
|
641,873 |
|
Interest |
|
|
919 |
|
Other income |
|
|
17,374 |
|
|
|
|
|
Total investment income |
|
|
13,109,195 |
|
|
|
|
|
|
Expenses |
|
|
|
|
Management fees |
|
|
13,520,519 |
|
Distribution and service plan fees: |
|
|
|
|
Class A |
|
|
3,481,759 |
|
Class B |
|
|
814,974 |
|
Class C |
|
|
3,163,391 |
|
Class N |
|
|
672,361 |
|
Transfer and shareholder servicing agent fees: |
|
|
|
|
Class A |
|
|
4,965,153 |
|
Class B |
|
|
242,102 |
|
Class C |
|
|
603,653 |
|
Class N |
|
|
431,219 |
|
Class Y |
|
|
200,410 |
|
Shareholder communications: |
|
|
|
|
Class A |
|
|
169,119 |
|
Class B |
|
|
19,820 |
|
Class C |
|
|
33,375 |
|
Class N |
|
|
13,657 |
|
Class Y |
|
|
18,917 |
|
Custodian fees and expenses |
|
|
85,914 |
|
Trustees compensation |
|
|
38,288 |
|
Administration service fees |
|
|
750 |
|
Other |
|
|
274,113 |
|
|
|
|
|
Total expenses |
|
|
28,749,494 |
|
Less waivers and reimbursements of expenses |
|
|
(134,181 |
) |
|
|
|
|
Net expenses |
|
|
28,615,313 |
|
|
|
|
|
|
Net Investment Loss |
|
|
(15,506,118 |
) |
|
|
|
|
1. December 30, 2011 represents the last business day of the Funds semiannual period. See Note 1
of the accompanying Notes.
19 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
STATEMENT OF OPERATIONS Unaudited / Continued
|
|
|
|
|
Realized and Unrealized Gain (Loss) |
|
|
|
|
Net realized gain (loss) on: |
|
|
|
|
Investments from: |
|
|
|
|
Unaffiliated companies (including premiums on options exercised) |
|
$ |
151,046,144 |
|
Affiliated companies |
|
|
(32,291,476 |
) |
Wholly-owned subsidiary |
|
|
51,210 |
|
Closing and expiration of option contracts written |
|
|
20,500,138 |
|
Foreign currency transactions |
|
|
2,482,487 |
|
Short positions |
|
|
(207,401 |
) |
|
|
|
|
Net realized gain |
|
|
141,581,102 |
|
Net change in unrealized appreciation/depreciation on: |
|
|
|
|
Investments |
|
|
(792,884,200 |
) |
Translation of assets and liabilities denominated in foreign currencies |
|
|
(100,757,465 |
) |
Option contracts written |
|
|
(3,507,062 |
) |
|
|
|
|
Net change in unrealized appreciation/depreciation |
|
|
(897,148,727 |
) |
|
|
|
|
|
Net Decrease in Net Assets Resulting from Operations |
|
$ |
(771,073,743 |
) |
|
|
|
|
See accompanying Notes to Financial Statements.
20 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
STATEMENTS OF CHANGES IN NET ASSETS
|
|
|
|
|
|
|
|
|
|
|
Six Months |
|
|
Year |
|
|
|
Ended |
|
|
Ended |
|
|
|
December 30, 20111 |
|
|
June 30, |
|
|
|
(Unaudited) |
|
|
2011 |
|
|
|
|
Operations |
|
|
|
|
|
|
|
|
Net investment loss |
|
$ |
(15,506,118 |
) |
|
$ |
(33,221,979 |
) |
Net realized gain |
|
|
141,581,102 |
|
|
|
627,230,028 |
|
Net change in unrealized appreciation/depreciation |
|
|
(897,148,727 |
) |
|
|
249,128,839 |
|
|
|
|
Net increase (decrease) in net assets resulting from operations |
|
|
(771,073,743 |
) |
|
|
843,136,888 |
|
|
|
|
|
|
|
|
|
|
Dividends and/or Distributions to Shareholders |
|
|
|
|
|
|
|
|
Dividends from net investment income: |
|
|
|
|
|
|
|
|
Class A |
|
|
(34,810,346 |
) |
|
|
(314,109,268 |
) |
Class B |
|
|
(1,171,268 |
) |
|
|
(16,107,603 |
) |
Class C |
|
|
(6,072,427 |
) |
|
|
(56,763,254 |
) |
Class N |
|
|
(3,728,853 |
) |
|
|
(21,907,883 |
) |
Class Y |
|
|
(16,311,298 |
) |
|
|
(4,636,534 |
) |
|
|
|
|
|
|
(62,094,192 |
) |
|
|
(413,524,542 |
) |
Distributions from net realized gain: |
|
|
|
|
|
|
|
|
Class A |
|
|
(98,600,637 |
) |
|
|
(69,442,499 |
) |
Class B |
|
|
(6,565,176 |
) |
|
|
(3,870,155 |
) |
Class C |
|
|
(26,543,222 |
) |
|
|
(13,387,420 |
) |
Class N |
|
|
(11,306,684 |
) |
|
|
(4,974,613 |
) |
Class Y |
|
|
(31,961,434 |
) |
|
|
(988,470 |
) |
|
|
|
|
|
|
(174,977,153 |
) |
|
|
(92,663,157 |
) |
|
|
|
|
|
|
|
|
|
Beneficial Interest Transactions |
|
|
|
|
|
|
|
|
Net increase (decrease) in net assets resulting from beneficial interest transactions: |
|
|
|
|
|
|
|
|
Class A |
|
|
(526,357,374 |
) |
|
|
357,261,110 |
|
Class B |
|
|
(6,726,648 |
) |
|
|
6,893,331 |
|
Class C |
|
|
23,560,643 |
|
|
|
116,160,181 |
|
Class N |
|
|
28,119,862 |
|
|
|
92,585,780 |
|
Class Y |
|
|
606,574,974 |
|
|
|
241,731,148 |
|
|
|
|
|
|
|
125,171,457 |
|
|
|
814,631,550 |
|
|
|
|
|
|
|
|
|
|
Net Assets |
|
|
|
|
|
|
|
|
Total increase (decrease) |
|
|
(882,973,631 |
) |
|
|
1,151,580,739 |
|
Beginning of period |
|
|
4,435,309,955 |
|
|
|
3,283,729,216 |
|
|
|
|
End of period (including accumulated net investment loss
of $468,994,246 and $391,393,936, respectively) |
|
$ |
3,552,336,324 |
|
|
$ |
4,435,309,955 |
|
|
|
|
|
|
|
1. |
|
December 30, 2011 represents the last business day of the Funds semiannual period. See Note 1
of the accompanying Notes. |
See accompanying Notes to Financial Statements.
21 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
FINANCIAL HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 30, 20111 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended June 30, |
|
Class A |
|
(Unaudited) |
|
|
2011 |
|
|
2010 |
|
|
2009 |
|
|
2008 |
|
|
2007 |
|
|
Per Share Operating Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period |
|
$ |
44.89 |
|
|
$ |
39.93 |
|
|
$ |
26.21 |
|
|
$ |
38.79 |
|
|
$ |
31.81 |
|
|
$ |
29.15 |
|
|
Income (loss) from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss)2 |
|
|
(.14 |
) |
|
|
(.28 |
) |
|
|
(.26 |
) |
|
|
.78 |
3 |
|
|
(.09 |
) |
|
|
(.08 |
) |
Net realized and unrealized gain (loss) |
|
|
(7.66 |
) |
|
|
10.76 |
|
|
|
14.65 |
|
|
|
(12.42 |
) |
|
|
9.31 |
|
|
|
7.22 |
|
|
|
|
Total from investment operations |
|
|
(7.80 |
) |
|
|
10.48 |
|
|
|
14.39 |
|
|
|
(11.64 |
) |
|
|
9.22 |
|
|
|
7.14 |
|
|
Dividends and/or distributions to shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends from net investment income |
|
|
(.63 |
) |
|
|
(4.52 |
) |
|
|
(.67 |
) |
|
|
(.49 |
) |
|
|
(.76 |
) |
|
|
(.16 |
) |
Distributions from net realized gain |
|
|
(1.78 |
) |
|
|
(1.00 |
) |
|
|
|
|
|
|
(.45 |
) |
|
|
(1.48 |
) |
|
|
(4.32 |
) |
|
|
|
Total dividends and/or distributions
to shareholders |
|
|
(2.41 |
) |
|
|
(5.52 |
) |
|
|
(.67 |
) |
|
|
(.94 |
) |
|
|
(2.24 |
) |
|
|
(4.48 |
) |
Net asset value, end of period |
|
$ |
34.68 |
|
|
$ |
44.89 |
|
|
$ |
39.93 |
|
|
$ |
26.21 |
|
|
$ |
38.79 |
|
|
$ |
31.81 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Return, at Net Asset Value4 |
|
|
(17.50 |
)% |
|
|
25.22 |
% |
|
|
55.18 |
% |
|
|
(28.29 |
)% |
|
|
29.43 |
% |
|
|
25.97 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of period (in thousands) |
|
$ |
2,018,437 |
|
|
$ |
3,140,551 |
|
|
$ |
2,500,205 |
|
|
$ |
1,439,082 |
|
|
$ |
1,919,047 |
|
|
$ |
1,003,705 |
|
Average net assets (in thousands) |
|
$ |
2,845,696 |
|
|
$ |
3,277,921 |
|
|
$ |
1,983,223 |
|
|
$ |
1,184,093 |
|
|
$ |
1,518,510 |
|
|
$ |
752,592 |
|
|
Ratios to average net assets:5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) |
|
|
(0.64 |
)% |
|
|
(0.61 |
)% |
|
|
(0.74 |
)% |
|
|
3.35 |
%3 |
|
|
(0.24 |
)% |
|
|
(0.26 |
)% |
Total expenses6 |
|
|
1.24 |
% |
|
|
1.07 |
% |
|
|
1.12 |
% |
|
|
1.20 |
% |
|
|
1.06 |
% |
|
|
1.10 |
% |
Expenses after payments, waivers and/or
reimbursements and reduction to
custodian expenses7 |
|
|
1.23 |
% |
|
|
1.07 |
% |
|
|
1.12 |
% |
|
|
1.19 |
% |
|
|
1.06 |
% |
|
|
1.10 |
% |
Portfolio turnover rate |
|
|
22 |
% |
|
|
37 |
% |
|
|
20 |
% |
|
|
81 |
% |
|
|
45 |
% |
|
|
46 |
% |
|
|
|
1. |
|
December 30, 2011 represents the last business day of the Funds semiannual period. See Note 1
of the accompanying Notes. |
|
2. |
|
Per share amounts calculated based on the average shares outstanding during the period. |
|
3. |
|
Net investment income per share and the net investment income ratio include $0.67 and 2.89%,
respectively, resulting from a special dividend from Anglo Ferrous Brazil SA in July 2008. |
|
4. |
|
Assumes an initial investment on the business day before the first day of the fiscal period,
with all dividends and distributions reinvested in additional shares on the reinvestment date, and
redemption at the net asset value calculated on the last business day of the fiscal period. Sales
charges are not reflected in the total returns. Total returns are not annualized for periods less
than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on
fund distributions or the redemption of fund shares. |
|
5. |
|
Annualized for periods less than one full year. |
|
6. |
|
Ratio including all expenses of the wholly-owned subsidiary and indirect expenses from
affiliated fund were as follows: |
|
|
|
|
|
Six Months Ended December 30, 2011 |
|
|
1.25 |
% |
Year Ended June 30, 2011 |
|
|
1.07 |
% |
Year Ended June 30, 2010 |
|
|
1.12 |
% |
Year Ended June 30, 2009 |
|
|
1.20 |
% |
Year Ended June 30, 2008 |
|
|
1.06 |
% |
Year Ended June 30, 2007 |
|
|
1.10 |
% |
|
|
|
7. |
|
Ratio including expenses of the wholly-owned subsidiary and indirect expenses from affiliated
fund were as follows: |
|
|
|
|
|
Six Months Ended December 30, 2011 |
|
|
1.24 |
% |
Year Ended June 30, 2011 |
|
|
1.07 |
% |
Year Ended June 30, 2010 |
|
|
1.12 |
% |
Year Ended June 30, 2009 |
|
|
1.19 |
% |
Year Ended June 30, 2008 |
|
|
1.06 |
% |
Year Ended June 30, 2007 |
|
|
1.10 |
% |
See accompanying Notes to Financial Statements.
22 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 30, 20111 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended June 30, |
|
Class B |
|
(Unaudited) |
|
|
2011 |
|
|
2010 |
|
|
2009 |
|
|
2008 |
|
|
2007 |
|
|
Per Share Operating Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period |
|
$ |
42.76 |
|
|
$ |
38.26 |
|
|
$ |
25.17 |
|
|
$ |
37.00 |
|
|
$ |
30.44 |
|
|
$ |
28.13 |
|
Income (loss) from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss)2 |
|
|
(.29 |
) |
|
|
(.64 |
) |
|
|
(.54 |
) |
|
|
.62 |
3 |
|
|
(.36 |
) |
|
|
(.30 |
) |
Net realized and unrealized gain (loss) |
|
|
(7.28 |
) |
|
|
10.30 |
|
|
|
14.06 |
|
|
|
(11.78 |
) |
|
|
8.90 |
|
|
|
6.93 |
|
|
|
|
Total from investment operations |
|
|
(7.57 |
) |
|
|
9.66 |
|
|
|
13.52 |
|
|
|
(11.16 |
) |
|
|
8.54 |
|
|
|
6.63 |
|
Dividends and/or distributions to shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends from net investment income |
|
|
(.32 |
) |
|
|
(4.16 |
) |
|
|
(.43 |
) |
|
|
(.22 |
) |
|
|
(.50 |
) |
|
|
|
|
Distributions from net realized gain |
|
|
(1.78 |
) |
|
|
(1.00 |
) |
|
|
|
|
|
|
(.45 |
) |
|
|
(1.48 |
) |
|
|
(4.32 |
) |
|
|
|
Total dividends and/or distributions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to shareholders |
|
|
(2.10 |
) |
|
|
(5.16 |
) |
|
|
(.43 |
) |
|
|
(.67 |
) |
|
|
(1.98 |
) |
|
|
(4.32 |
) |
Net asset value, end of period |
|
$ |
33.09 |
|
|
$ |
42.76 |
|
|
$ |
38.26 |
|
|
$ |
25.17 |
|
|
$ |
37.00 |
|
|
$ |
30.44 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Return, at Net Asset Value4 |
|
|
(17.82 |
)% |
|
|
24.19 |
% |
|
|
53.86 |
% |
|
|
(28.91 |
)% |
|
|
28.44 |
% |
|
|
24.97 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of period (in thousands) |
|
$ |
128,871 |
|
|
$ |
171,961 |
|
|
$ |
149,228 |
|
|
$ |
111,935 |
|
|
$ |
176,880 |
|
|
$ |
138,568 |
|
Average net assets (in thousands) |
|
$ |
161,890 |
|
|
$ |
178,499 |
|
|
$ |
137,358 |
|
|
$ |
101,129 |
|
|
$ |
167,286 |
|
|
$ |
121,560 |
|
Ratios to average net assets:5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) |
|
|
(1.35 |
)% |
|
|
(1.44 |
)% |
|
|
(1.61 |
)% |
|
|
2.79 |
%3 |
|
|
(1.03 |
)% |
|
|
(1.05 |
)% |
Total expenses6 |
|
|
1.96 |
% |
|
|
1.91 |
% |
|
|
1.98 |
% |
|
|
2.09 |
% |
|
|
1.86 |
% |
|
|
1.90 |
% |
Expenses after payments, waivers and/or
reimbursements and reduction to
custodian expenses7 |
|
|
1.95 |
% |
|
|
1.91 |
% |
|
|
1.98 |
% |
|
|
2.03 |
% |
|
|
1.86 |
% |
|
|
1.90 |
% |
Portfolio turnover rate |
|
|
22 |
% |
|
|
37 |
% |
|
|
20 |
% |
|
|
81 |
% |
|
|
45 |
% |
|
|
46 |
% |
|
|
|
1. |
|
December 30, 2011 represents the last business day of the Funds semiannual period. See Note 1
of the accompanying Notes. |
|
2. |
|
Per share amounts calculated based on the average shares outstanding during the period. |
|
3. |
|
Net investment income per share and the net investment income ratio include $0.65 and 2.89%,
respectively, resulting from a special dividend from Anglo Ferrous Brazil SA in July 2008. |
|
4. |
|
Assumes an initial investment on the business day before the first day of the fiscal period,
with all dividends and distributions reinvested in additional shares on the reinvestment date, and
redemption at the net asset value calculated on the last business day of the fiscal period. Sales
charges are not reflected in the total returns. Total returns are not annualized for periods less
than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on
fund distributions or the redemption of fund shares. |
|
5. |
|
Annualized for periods less than one full year. |
|
6. |
|
Ratio including all expenses of the wholly-owned subsidiary and indirect expenses from
affiliated fund were as follows: |
|
|
|
|
|
Six Months Ended December 30, 2011 |
|
|
1.97 |
% |
Year Ended June 30, 2011 |
|
|
1.91 |
% |
Year Ended June 30, 2010 |
|
|
1.98 |
% |
Year Ended June 30, 2009 |
|
|
2.09 |
% |
Year Ended June 30, 2008 |
|
|
1.86 |
% |
Year Ended June 30, 2007 |
|
|
1.90 |
% |
|
|
|
7. |
|
Ratio including expenses of the wholly-owned subsidiary and indirect expenses from affiliated
fund were as follows: |
|
|
|
|
|
Six Months Ended December 30, 2011 |
|
|
1.96 |
% |
Year Ended June 30, 2011 |
|
|
1.91 |
% |
Year Ended June 30, 2010 |
|
|
1.98 |
% |
Year Ended June 30, 2009 |
|
|
2.03 |
% |
Year Ended June 30, 2008 |
|
|
1.86 |
% |
Year Ended June 30, 2007 |
|
|
1.90 |
% |
See accompanying Notes to Financial Statements.
23 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
FINANCIAL HIGHLIGHTS Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 30, 20111 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended June 30, |
|
Class C |
|
(Unaudited) |
|
|
2011 |
|
|
2010 |
|
|
2009 |
|
|
2008 |
|
|
2007 |
|
|
Per Share Operating Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period |
|
$ |
42.46 |
|
|
$ |
38.04 |
|
|
$ |
25.05 |
|
|
$ |
36.89 |
|
|
$ |
30.41 |
|
|
$ |
28.10 |
|
|
Income (loss) from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss)2 |
|
|
(.26 |
) |
|
|
(.60 |
) |
|
|
(.50 |
) |
|
|
.61 |
3 |
|
|
(.35 |
) |
|
|
(.30 |
) |
Net realized and unrealized gain (loss) |
|
|
(7.23 |
) |
|
|
10.26 |
|
|
|
13.98 |
|
|
|
(11.74 |
) |
|
|
8.88 |
|
|
|
6.93 |
|
|
|
|
Total from investment operations |
|
|
(7.49 |
) |
|
|
9.66 |
|
|
|
13.48 |
|
|
|
(11.13 |
) |
|
|
8.53 |
|
|
|
6.63 |
|
|
Dividends and/or distributions to shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends from net investment income |
|
|
(.41 |
) |
|
|
(4.24 |
) |
|
|
(.49 |
) |
|
|
(.26 |
) |
|
|
(.57 |
) |
|
|
|
|
Distributions from net realized gain |
|
|
(1.78 |
) |
|
|
(1.00 |
) |
|
|
|
|
|
|
(.45 |
) |
|
|
(1.48 |
) |
|
|
(4.32 |
) |
|
|
|
Total dividends and/or distributions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to shareholders |
|
|
(2.19 |
) |
|
|
(5.24 |
) |
|
|
(.49 |
) |
|
|
(.71 |
) |
|
|
(2.05 |
) |
|
|
(4.32 |
) |
|
Net asset value, end of period |
|
$ |
32.78 |
|
|
$ |
42.46 |
|
|
$ |
38.04 |
|
|
$ |
25.05 |
|
|
$ |
36.89 |
|
|
$ |
30.41 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Return, at Net Asset Value4 |
|
|
(17.76 |
)% |
|
|
24.31 |
% |
|
|
53.98 |
% |
|
|
(28.84 |
)% |
|
|
28.45 |
% |
|
|
25.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of period (in thousands) |
|
$ |
515,564 |
|
|
$ |
637,676 |
|
|
$ |
476,835 |
|
|
$ |
288,407 |
|
|
$ |
422,169 |
|
|
$ |
228,513 |
|
|
Average net assets (in thousands) |
|
$ |
627,632 |
|
|
$ |
620,759 |
|
|
$ |
396,328 |
|
|
$ |
252,930 |
|
|
$ |
343,807 |
|
|
$ |
174,909 |
|
|
Ratios to average net assets:5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) |
|
|
(1.23 |
)% |
|
|
(1.35 |
)% |
|
|
(1.51 |
)% |
|
|
2.76 |
%3 |
|
|
(1.00 |
)% |
|
|
(1.03 |
)% |
Total expenses6 |
|
|
1.84 |
% |
|
|
1.81 |
% |
|
|
1.88 |
% |
|
|
1.98 |
% |
|
|
1.82 |
% |
|
|
1.87 |
% |
Expenses after payments, waivers and/or
reimbursements and reduction to
custodian expenses7 |
|
|
1.83 |
% |
|
|
1.81 |
% |
|
|
1.88 |
% |
|
|
1.96 |
% |
|
|
1.82 |
% |
|
|
1.87 |
% |
|
Portfolio turnover rate |
|
|
22 |
% |
|
|
37 |
% |
|
|
20 |
% |
|
|
81 |
% |
|
|
45 |
% |
|
|
46 |
% |
|
|
|
1. |
|
December 30, 2011 represents the last business day of the Funds semiannual period. See Note 1
of the accompanying Notes. |
|
|
|
2. |
|
Per share amounts calculated based on the average shares outstanding during the period. |
|
|
|
3. |
|
Net investment income per share and the net investment income ratio include $0.64 and 2.89%,
respectively, resulting from a special dividend from Anglo Ferrous Brazil SA in July 2008. |
|
|
|
4. |
|
Assumes an initial investment on the business day before the first day of the fiscal period,
with all dividends and distributions reinvested in additional shares on the reinvestment date, and
redemption at the net asset value calculated on the last business day of the fiscal period. Sales
charges are not reflected in the total returns. Total returns are not annualized for periods less
than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on
fund distributions or the redemption of fund shares. |
|
|
|
5. |
|
Annualized for periods less than one full year. |
|
|
|
6. |
|
Ratio including all expenses of the wholly-owned subsidiary and indirect expenses from
affiliated fund were as follows: |
|
|
|
|
|
Six Months Ended December 30, 2011 |
|
|
1.85 |
% |
Year Ended June 30, 2011 |
|
|
1.81 |
% |
Year Ended June 30, 2010 |
|
|
1.88 |
% |
Year Ended June 30, 2009 |
|
|
1.98 |
% |
Year Ended June 30, 2008 |
|
|
1.82 |
% |
Year Ended June 30, 2007 |
|
|
1.87 |
% |
|
|
|
7. |
|
Ratio including expenses of the wholly-owned subsidiary and indirect expenses from affiliated
fund were as follows: |
|
|
|
|
|
Six Months Ended December 30, 2011 |
|
|
1.84 |
% |
Year Ended June 30, 2011 |
|
|
1.81 |
% |
Year Ended June 30, 2010 |
|
|
1.88 |
% |
Year Ended June 30, 2009 |
|
|
1.96 |
% |
Year Ended June 30, 2008 |
|
|
1.82 |
% |
Year Ended June 30, 2007 |
|
|
1.87 |
% |
See accompanying Notes to Financial Statements.
24 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 30, 20111 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended June 30, |
|
Class N |
|
(Unaudited) |
|
|
2011 |
|
|
2010 |
|
|
2009 |
|
|
2008 |
|
|
2007 |
|
|
Per Share Operating Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period |
|
$ |
43.53 |
|
|
$ |
38.88 |
|
|
$ |
25.58 |
|
|
$ |
37.94 |
|
|
$ |
31.18 |
|
|
$ |
28.68 |
|
Income (loss) from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss)2 |
|
|
(.18 |
) |
|
|
(.44 |
) |
|
|
(.39 |
) |
|
|
.57 |
3 |
|
|
(.21 |
) |
|
|
(.17 |
) |
Net realized and unrealized gain (loss) |
|
|
(7.43 |
) |
|
|
10.49 |
|
|
|
14.30 |
|
|
|
(12.04 |
) |
|
|
9.13 |
|
|
|
7.08 |
|
|
|
|
Total from investment operations |
|
|
(7.61 |
) |
|
|
10.05 |
|
|
|
13.91 |
|
|
|
(11.47 |
) |
|
|
8.92 |
|
|
|
6.91 |
|
|
Dividends and/or distributions to shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends from net investment income |
|
|
(.59 |
) |
|
|
(4.40 |
) |
|
|
(.61 |
) |
|
|
(.44 |
) |
|
|
(.68 |
) |
|
|
(.09 |
) |
Distributions from net realized gain |
|
|
(1.78 |
) |
|
|
(1.00 |
) |
|
|
|
|
|
|
(.45 |
) |
|
|
(1.48 |
) |
|
|
(4.32 |
) |
|
|
|
Total dividends and/or distributions to shareholders |
|
|
(2.37 |
) |
|
|
(5.40 |
) |
|
|
(.61 |
) |
|
|
(.89 |
) |
|
|
(2.16 |
) |
|
|
(4.41 |
) |
|
Net asset value, end of period |
|
$ |
33.55 |
|
|
$ |
43.53 |
|
|
$ |
38.88 |
|
|
$ |
25.58 |
|
|
$ |
37.94 |
|
|
$ |
31.18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Return, at Net Asset Value4 |
|
|
(17.61 |
)% |
|
|
24.79 |
% |
|
|
54.60 |
% |
|
|
(28.55 |
)% |
|
|
29.04 |
% |
|
|
25.52 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of period (in thousands) |
|
$ |
227,514 |
|
|
$ |
263,079 |
|
|
$ |
157,461 |
|
|
$ |
72,805 |
|
|
$ |
71,049 |
|
|
$ |
29,063 |
|
|
Average net assets (in thousands) |
|
$ |
266,898 |
|
|
$ |
236,220 |
|
|
$ |
115,927 |
|
|
$ |
54,016 |
|
|
$ |
49,137 |
|
|
$ |
22,412 |
|
|
Ratios to average net assets:5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) |
|
|
(0.85 |
)% |
|
|
(0.96 |
)% |
|
|
(1.12 |
)% |
|
|
2.55 |
%3 |
|
|
(0.59 |
)% |
|
|
(0.57 |
)% |
Total expenses6 |
|
|
1.47 |
% |
|
|
1.43 |
% |
|
|
1.55 |
% |
|
|
1.63 |
% |
|
|
1.39 |
% |
|
|
1.41 |
% |
Expenses after payments, waivers and/or |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
reimbursements and reduction to |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
custodian expenses7 |
|
|
1.45 |
% |
|
|
1.43 |
% |
|
|
1.49 |
% |
|
|
1.52 |
% |
|
|
1.39 |
% |
|
|
1.41 |
% |
|
Portfolio turnover rate |
|
|
22 |
% |
|
|
37 |
% |
|
|
20 |
% |
|
|
81 |
% |
|
|
45 |
% |
|
|
46 |
% |
|
|
|
1. |
|
December 30, 2011 represents the last business day of the Funds semiannual period. See Note 1
of the accompanying Notes. |
|
2. |
|
Per share amounts calculated based on the average shares outstanding during the period. |
|
3. |
|
Net investment income per share and the net investment income ratio include $0.65 and 2.89%,
respectively, resulting from a special dividend from Anglo Ferrous Brazil SA in July 2008. |
|
4. |
|
Assumes an initial investment on the business day before the first day of the fiscal period,
with all dividends and distributions reinvested in additional shares on the reinvestment date, and
redemption at the net asset value calculated on the last business day of the fiscal period. Sales
charges are not reflected in the total returns. Total returns are not annualized for periods less
than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on
fund distributions or the redemption of fund shares. |
|
5. |
|
Annualized for periods less than one full year. |
|
6. |
|
Ratio including all expenses of the wholly-owned subsidiary and indirect expenses from
affiliated fund were as follows: |
|
|
|
|
|
Six Months Ended December 30, 2011 |
|
|
1.48 |
% |
Year Ended June 30, 2011 |
|
|
1.43 |
% |
Year Ended June 30, 2010 |
|
|
1.55 |
% |
Year Ended June 30, 2009 |
|
|
1.63 |
% |
Year Ended June 30, 2008 |
|
|
1.39 |
% |
Year Ended June 30, 2007 |
|
|
1.41 |
% |
|
|
|
7. |
|
Ratio including expenses of the wholly-owned subsidiary and indirect expenses from affiliated
fund were as follows: |
|
|
|
|
|
Six Months Ended December 30, 2011 |
|
|
1.46 |
% |
Year Ended June 30, 2011 |
|
|
1.43 |
% |
Year Ended June 30, 2010 |
|
|
1.49 |
% |
Year Ended June 30, 2009 |
|
|
1.52 |
% |
Year Ended June 30, 2008 |
|
|
1.39 |
% |
Year Ended June 30, 2007 |
|
|
1.41 |
% |
See accompanying Notes to Financial Statements.
25 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
FINANCIAL HIGHLIGHTS Continued
|
|
|
|
|
|
|
|
|
|
|
Six Months |
|
|
|
|
|
|
Ended |
|
|
|
|
|
|
December 30, 20111 |
|
|
Period Ended |
|
Class Y |
|
(Unaudited) |
|
|
June 30, 20112 |
|
|
Per Share Operating Data |
|
|
|
|
|
|
|
|
Net asset value, beginning of period |
|
$ |
44.90 |
|
|
$ |
45.55 |
|
|
Income (loss) from investment operations: |
|
|
|
|
|
|
|
|
Net investment loss3 |
|
|
(.02 |
) |
|
|
(.05 |
) |
Net realized and unrealized gain (loss) |
|
|
(7.70 |
) |
|
|
5.09 |
|
|
|
|
Total from investment operations |
|
|
(7.72 |
) |
|
|
5.04 |
|
|
Dividends and/or distributions to shareholders: |
|
|
|
|
|
|
|
|
Dividends from net investment income |
|
|
(.91 |
) |
|
|
(4.69 |
) |
Distributions from net realized gain |
|
|
(1.78 |
) |
|
|
(1.00 |
) |
|
|
|
Total dividends and/or distributions to shareholders |
|
|
(2.69 |
) |
|
|
(5.69 |
) |
|
Net asset value, end of period |
|
$ |
34.49 |
|
|
$ |
44.90 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Return, at Net Asset Value4 |
|
|
(17.33 |
)% |
|
|
10.16 |
% |
|
|
|
|
|
|
|
|
|
Ratios/Supplemental Data |
|
|
|
|
|
|
|
|
Net assets, end of period (in thousands) |
|
$ |
661,950 |
|
|
$ |
222,043 |
|
|
Average net assets (in thousands) |
|
$ |
452,782 |
|
|
$ |
89,984 |
|
|
Ratios to average net assets:5 |
|
|
|
|
|
|
|
|
Net investment loss |
|
|
(0.12 |
)% |
|
|
(0.13 |
)% |
Total expenses6 |
|
|
0.74 |
% |
|
|
0.66 |
% |
Expenses after payments, waivers and/or reimbursements
and reduction to custodian expenses7 |
|
|
0.73 |
% |
|
|
0.66 |
% |
|
Portfolio turnover rate |
|
|
22 |
% |
|
|
37 |
% |
|
|
|
1. |
|
December 30, 2011 represents the last business day of the Funds semiannual period. See Note 1
of the accompanying Notes. |
|
2. |
|
For the period from September 7, 2010 (inception of offering) to June 30, 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. |
|
5. |
|
Annualized for periods less than one full year. |
|
6. |
|
Ratio including all expenses of the wholly-owned subsidiary and indirect expenses from
affiliated fund were as follows: |
|
|
|
|
|
Six Months Ended December 30, 2011 |
|
|
0.75 |
% |
Period Ended June 30, 2011 |
|
|
0.66 |
% |
|
|
|
7. |
|
Ratio including expenses of the wholly-owned subsidiary and indirect expenses from affiliated
fund were as follows: |
|
|
|
|
|
Six Months Ended December 30, 2011 |
|
|
0.74 |
% |
Period Ended June 30, 2011 |
|
|
0.66 |
% |
See accompanying Notes to Financial Statements.
26 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
NOTES TO FINANCIAL STAT E MENTS Unaudited
1. Significant Accounting Policies
Oppenheimer Gold & Special Minerals Fund (the Fund) is registered under the Investment Company
Act of 1940, as amended, as an open-end management investment company. The Funds investment
objective is to seek capital appreciation. The Funds investment adviser is OppenheimerFunds, Inc.
(the Manager).
The Fund offers Class A, Class B, Class C, Class N and Class Y shares. Class A shares are sold at
their offering price, which is normally net asset value plus a front-end sales charge. Class B,
Class C and Class N shares are sold without a front-end sales charge but may be subject to a
contingent deferred sales charge (CDSC). Class N shares are sold only through retirement plans.
Retirement plans that offer Class N shares may impose charges on those accounts. Class Y shares are
sold to certain institutional investors 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 Y shares. All classes of shares have identical rights and voting privileges with respect
to the Fund in general and exclusive voting rights on matters that affect that class alone.
Earnings, net assets and net asset value per share may differ due to each class having its own
expenses, such as transfer and shareholder servicing agent fees and shareholder communications,
directly attributable to that class. Class A, B, C and N shares have separate distribution and/or
service plans under which they pay fees. Class Y shares do not pay such fees. Class B shares will
automatically convert to Class A shares 72 months after the date of purchase.
The following is a summary of significant accounting policies consistently followed by the Fund.
Semiannual Period. Since December 30, 2011 represents the last day during the Funds semiannual
period on which the New York Stock Exchange was open for trading, the Funds financial statements
have been presented through that date to maintain consistency with the Funds net asset value
calculations used for shareholder transactions.
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.
Each investment asset or liability of the Fund is assigned a level at measurement date based on the
significance and source of the inputs to its valuation. Unadjusted quoted prices in active markets
for identical securities are classified as Level 1, observable market inputs other than
unadjusted quoted prices are classified as Level 2 and significant unobservable inputs, including
the Managers judgment about the assumptions that a market participant would use in pricing an
asset or liability, are classified as Level 3. The inputs used for valuing securities are not
necessarily an indication of the risks associated with investing in those securities. A table
summarizing the Funds investments under these levels of classification is included following the
Statement of Investments.
Securities are valued using unadjusted quoted market prices, when available, as supplied primarily
by portfolio pricing services approved by the Board of Trustees or dealers.
27 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
NOTES TO FINANCIAL STATE MENTS Unaudited / Continued
1. Significant Accounting Policies Continued
Securities traded on a registered U.S. securities exchange are valued based on the last sale price
of the security reported on the principal exchange on which it is traded, prior to the time when
the Funds assets are valued. Securities whose principal exchange is NASDAQ® are valued based on
the official closing prices reported by NASDAQ prior to the time when the Funds assets are valued.
In the absence of a sale, the security is valued at the last sale price on the prior trading day,
if it is within the spread of the current days closing bid and asked prices, and if not, at
the current days closing bid price. A foreign security traded on a foreign exchange is valued
based on the last sale price on the principal exchange on which the security is traded, as
identified by the portfolio pricing service used by the Manager, prior to the time when the Funds
assets are valued. In the absence of a sale, the security is valued at the most recent official
closing price on the principal exchange on which it is traded.
Shares of a registered investment company that are not traded on an exchange are valued at that
investment companys net asset value per share.
U.S. domestic and international debt instruments (including corporate, government, municipal,
mortgage-backed, collateralized mortgage obligations and asset-backed securities) and money
market-type debt instruments with a remaining maturity in excess of sixty days are valued at the
mean between the bid and asked prices utilizing price quotations obtained from independent
pricing services or broker-dealers. Such prices are typically determined based upon information
obtained from market participants including reported trade data, broker-dealer price quotations and
inputs such as benchmark yields and issuer spreads from identical or similar securities.
Forward foreign currency exchange contracts are valued utilizing current and forward currency rates
obtained from independent pricing services.
Money market-type debt instruments with remaining maturities 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.
In the absence of a current price quotation obtained from an independent pricing service or
broker-dealer, including for securities whose values have been materially affected by what the
Manager identifies as a significant event occurring before the Funds assets are valued but after
the close of the securities respective exchanges, the Manager, acting through its internal
valuation committee, in good faith determines the fair valuation of that asset using consistently
applied procedures under the supervision of the Board of Trustees (which reviews those fair
valuations by the Manager). Those procedures include certain standardized methodologies to fair
value securities. Such methodologies include, but are not limited to, pricing securities 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 adjusted for any discounts related to 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.
28 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
There have been no significant changes to the fair valuation methodologies of the Fund during the
period.
The net asset value per share of the Subsidiary is determined as of the close of the Exchange, on
each day the Exchange is open for trading. The net asset value per share is determined by dividing
the value of the Subsidiarys net assets by the number of shares that are outstanding. The
Subsidiary values its investments in the same manner as the Fund as described above.
Securities Sold Short. The Fund sells securities that it does not own, and it will therefore be
obligated to purchase such securities at a future date. Upon entering into a short position, the
Fund is required to segregate securities at its custodian with a value equal to a certain
percentage of the value of the securities that it sold short. Securities that have been segregated
for this purpose are disclosed as such in the Statement of Investments. The value of the open short
position is recorded as a liability, and the Fund records an unrealized gain or loss to the extent
of the difference between the proceeds received and the change in value of the open short position.
The Fund records a realized gain or loss when the short position is closed out. By entering into
short sales, the Fund bears the market risk of increases in value of the security sold short in
excess of the proceeds received. Until the security is replaced, the Fund is required to pay the
lender any dividend or interest earned. Dividend expense on short sales is treated as an expense in
the Statement of Operations.
As of December 30, 2011 the Fund had no outstanding securities sold short.
Investment in Oppenheimer Gold & Special Minerals Fund (Cayman) Ltd. The Fund may invest up to 25%
of its total assets in Oppenheimer Gold & Special Minerals Fund (Cayman) Ltd., a wholly-owned and
controlled Cayman Islands subsidiary (the Subsidiary), which is expected to invest primarily in
shares of exchange-traded funds that invest in gold bullion (Gold ETFs), commodity-linked
derivatives related to gold or other special minerals (including commodity futures, financial
futures, options and swap contracts), and certain fixed-income securities and other investments
that may serve as margin or collateral for the Subsidiarys derivatives positions. Investments in
the Subsidiary are intended to provide the Fund with exposure to minerals commodities market
returns within the limitations of the federal tax requirements that apply to the Fund. The
Subsidiary will be subject to the same investment restrictions and guidelines, and follow the same
compliance policies and procedures, as the Fund. The Fund wholly owns and controls the Subsidiary,
and the Fund and Subsidiary are both managed by the Manager.
The Fund does not consolidate the assets, liabilities, capital or operations of the Subsidiary into
its financial statements. Rather, the Subsidiary is separately presented as an investment in the
Funds Statement of Investments. Shares of the Subsidiary are valued at their net asset value per
share. Gains or losses on withdrawals of capital from the Subsidiary by the Fund are recognized on
an average cost basis. Unrealized appreciation or depreciation on the Funds investment in the
Subsidiary is recorded in the Funds Statement of Assets and Liabilities and the Funds Statement
of Operations. Distributions received from the Subsidiary are recorded as income on the ex-dividend
date.
29 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
NOTES TO FINANCIAL STATE MENTS Unaudited / Continued
1. Significant Accounting Policies Continued
For tax purposes, the Subsidiary is an exempted Cayman investment company. The Subsidiary has
received an undertaking from the Government of the Cayman Islands exempting it from all local
income, profits and capital gains taxes through September of 2030. No such taxes are levied in the
Cayman Islands at the present time. For U.S. income tax purposes, the Subsidiary is a Controlled
Foreign Corporation and as such is not subject to U.S. income tax. However, as a wholly-owned
Controlled Foreign Corporation, the Subsidiarys net income and capital gain, to the extent of its
earnings and profits, will be included each year in the Funds investment company taxable income.
For the six months ended December 30, 2011, the Subsidiary has a surplus of $1,572,905 in its
taxable earnings and profits. In addition, any in-kind capital contributions made by the Fund to
the Subsidiary will result in the Fund recognizing taxable gain to the extent of unrealized gain,
if any, on securities transferred to the Subsidiary while any unrealized losses on securities so
transferred will not be recognized at the time of transfer.
Investment in Oppenheimer Institutional Money Market Fund. The Fund is permitted to invest daily
available cash balances in an affiliated money market fund. The Fund may invest the available cash
in Class E shares of Oppenheimer Institutional Money Market Fund (IMMF) to seek current income
while preserving liquidity. IMMF is a registered open-end management investment company, regulated
as a money market fund under the Investment Company Act of 1940, as amended. The Manager is also
the investment adviser of IMMF. When applicable, the Funds investment in IMMF is included in the
Statement of Investments. Shares of IMMF are valued at their net asset value per share. As a
shareholder, the Fund is subject to its proportional share of IMMFs Class E expenses, including
its management fee. The Manager will waive fees and/or reimburse Fund expenses in an amount equal
to the indirect management fees incurred through the Funds investment in IMMF.
Concentration Risk. Concentration risk is the risk that the Funds investments in securities of
companies in one industry may cause it to be more exposed to changes in that industry or market
sector as compared to a more broadly diversified fund.
The Fund invests primarily in the mining and metals industry.
Foreign Currency Translation. The Funds 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 Exchange, normally 4:00 P.M. 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
30 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
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 Funds 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 Funds 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.
Federal Taxes. The Fund intends to comply with provisions of the Internal Revenue Code applicable
to regulated investment companies and to distribute substantially all of its investment company
taxable income, including any net realized gain on investments not offset by capital loss
carryforwards, if any, to shareholders. Therefore, no federal income or excise tax provision is
required. The Fund files income tax returns in U.S. federal and applicable state jurisdictions. The
statute of limitations on the Funds tax return filings generally remain open for the three
preceding fiscal reporting period ends.
During the fiscal year ended June 30, 2011, the Fund utilized $212,935,676 of capital loss
carryforward to offset capital gains realized in that fiscal year. As of June 30, 2011, the Fund
had available for federal income tax purposes straddle losses of $280,858.
As of December 30, 2011, the Fund had available for federal income tax purposes no estimated
capital loss. This estimated capital loss carryforward represents carryforward as of the end of the
last fiscal year, increased for losses deferred under tax accounting rules to the current fiscal
year and is increased or decreased by capital losses or gains realized in the first six months of
the current fiscal year. During the six months ended December 30, 2011, it is estimated that the
Fund will utilize $280,858 of capital loss carryforward to offset realized capital gains.
Net investment income (loss) and net realized gain (loss) may differ for financial statement and
tax purposes. The character of dividends and distributions made during the fiscal year from net
investment income or net realized gains may differ from their ultimate characterization for federal
income tax purposes. Also, due to timing of dividends and distributions, the fiscal year in which
amounts are distributed may differ from the fiscal year in which the income or net realized gain
was recorded by the Fund.
31 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
1. Significant Accounting Policies Continued
The aggregate cost of securities and other investments and the composition of unrealized
appreciation and depreciation of securities and other investments for federal income tax purposes
as of December 30, 2011 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 |
|
$ |
3,001,785,078 |
|
Federal tax cost of other investments |
|
|
(3,380,216 |
) |
|
|
|
|
Total federal tax cost |
|
$ |
2,998,404,862 |
|
|
|
|
|
|
|
|
|
|
Gross unrealized appreciation |
|
$ |
861,856,783 |
|
Gross unrealized depreciation |
|
|
(322,085,640 |
) |
|
|
|
|
Net unrealized appreciation |
|
$ |
539,771,143 |
|
|
|
|
|
Trustees Compensation. The Fund has adopted an unfunded retirement plan (the Plan) for the
Funds independent trustees. Benefits are based on years of service and fees paid to each trustee
during their period of service. The Plan was frozen with respect to adding new participants
effective December 31, 2006 (the Freeze Date) and existing Plan Participants as of the Freeze
Date will continue to receive accrued benefits under the Plan. Active independent trustees as of
the Freeze Date have each elected a distribution method with respect to their benefits under the
Plan. During the six months ended December 30, 2011, the Funds projected benefit obligations,
payments to retired trustees and accumulated liability were as follows:
|
|
|
|
|
Projected Benefit Obligations Increased |
|
$ |
2,419 |
|
Payments Made to Retired Trustees |
|
|
|
|
Accumulated Liability as of December 30, 2011 |
|
|
100,667 |
|
The Board of Trustees has adopted a compensation deferral plan for independent trustees that
enables trustees to elect to defer receipt of all or a portion of the annual compensation they are
entitled to receive from the Fund. For purposes of determining the amount owed to the Trustee under
the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares
of the Fund or in other Oppenheimer funds selected by the Trustee. The Fund purchases shares of the
funds selected for deferral by the Trustee in amounts equal to his or her deemed investment,
resulting in a Fund asset equal to the deferred compensation liability. Such assets are included as
a component of Other within the asset section of the Statement of Assets and Liabilities.
Deferral of trustees fees under the plan will not affect the net assets of the Fund, and will not
materially affect the Funds assets, liabilities or net investment income per share. Amounts will
be deferred until distributed in accordance with the compensation deferral plan.
32 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
Dividends and Distributions to Shareholders. Dividends and distributions to shareholders, which are
determined in accordance with income tax regulations and may differ from U.S. generally accepted
accounting principles, are recorded on the ex-dividend date. Income and capital gain distributions,
if any, are declared and paid annually or at other times as deemed necessary by the Manager. The
tax character of distributions is determined as of the Funds fiscal year end. Therefore, a portion
of the Funds distributions made to shareholders prior to the Funds 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 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
Funds 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 Funds maximum exposure under these arrangements is unknown as this
would be dependent on future claims that may be made against the Fund. The risk of material loss
from such claims is considered remote.
Other. The preparation of financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported amounts of increases and
decreases in net assets from operations during the reporting period. Actual results could differ
from those estimates.
33 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
2. Shares of Beneficial Interest
The Fund has authorized an unlimited number of no par value shares of beneficial interest of each
class. Transactions in shares of beneficial interest were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended December 30, 2011 |
|
|
Year Ended June 30, 20111 |
|
|
|
Shares |
|
|
Amount |
|
|
Shares |
|
|
Amount |
|
|
Class A |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sold |
|
|
12,251,481 |
|
|
$ |
541,026,552 |
|
|
|
35,306,719 |
|
|
$ |
1,654,658,860 |
|
Dividends and/or |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
distributions reinvested |
|
|
3,441,456 |
|
|
|
121,759,004 |
|
|
|
5,521,055 |
|
|
|
268,488,537 |
|
Redeemed |
|
|
(27,442,755 |
) |
|
|
(1,189,142,930 |
) |
|
|
(33,491,892 |
) |
|
|
(1,565,886,287 |
) |
|
|
|
Net increase (decrease) |
|
|
(11,749,818 |
) |
|
$ |
(526,357,374 |
) |
|
|
7,335,882 |
|
|
$ |
357,261,110 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class B |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sold |
|
|
375,967 |
|
|
$ |
15,849,065 |
|
|
|
1,121,235 |
|
|
$ |
50,449,505 |
|
Dividends and/or |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
distributions reinvested |
|
|
203,547 |
|
|
|
6,873,773 |
|
|
|
369,042 |
|
|
|
17,116,156 |
|
Redeemed |
|
|
(706,950 |
) |
|
|
(29,449,486 |
) |
|
|
(1,369,311 |
) |
|
|
(60,672,330 |
) |
|
|
|
Net increase (decrease) |
|
|
(127,436 |
) |
|
$ |
(6,726,648 |
) |
|
|
120,966 |
|
|
$ |
6,893,331 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class C |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sold |
|
|
2,406,260 |
|
|
$ |
98,196,995 |
|
|
|
5,160,896 |
|
|
$ |
232,029,649 |
|
Dividends and/or |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
distributions reinvested |
|
|
769,655 |
|
|
|
25,744,947 |
|
|
|
1,154,815 |
|
|
|
53,156,150 |
|
Redeemed |
|
|
(2,466,868 |
) |
|
|
(100,381,299 |
) |
|
|
(3,832,423 |
) |
|
|
(169,025,618 |
) |
|
|
|
Net increase |
|
|
709,047 |
|
|
$ |
23,560,643 |
|
|
|
2,483,288 |
|
|
$ |
116,160,181 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class N |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sold |
|
|
1,794,871 |
|
|
$ |
76,962,158 |
|
|
|
3,849,915 |
|
|
$ |
175,742,106 |
|
Dividends and/or |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
distributions reinvested |
|
|
403,337 |
|
|
|
13,809,943 |
|
|
|
517,587 |
|
|
|
24,378,323 |
|
Redeemed |
|
|
(1,461,446 |
) |
|
|
(62,652,239 |
) |
|
|
(2,373,526 |
) |
|
|
(107,534,649 |
) |
|
|
|
Net increase |
|
|
736,762 |
|
|
$ |
28,119,862 |
|
|
|
1,993,976 |
|
|
$ |
92,585,780 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class Y |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sold |
|
|
16,399,724 |
|
|
$ |
697,131,905 |
|
|
|
5,710,742 |
|
|
$ |
276,643,602 |
|
Dividends and/or |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
distributions reinvested |
|
|
245,220 |
|
|
|
8,626,835 |
|
|
|
115,881 |
|
|
|
5,606,301 |
|
Redeemed |
|
|
(2,398,620 |
) |
|
|
(99,183,766 |
) |
|
|
(880,910 |
) |
|
|
(40,518,755 |
) |
|
|
|
Net increase |
|
|
14,246,324 |
|
|
$ |
606,574,974 |
|
|
|
4,945,713 |
|
|
$ |
241,731,148 |
|
|
|
|
|
|
|
1. |
|
For the year ended June 30, 2011, for Class A, Class B, Class C and Class N shares, and for the
period from September 7, 2010 (inception of offering) to June 30, 2011, for Class Y shares. |
3. Purchases and Sales of Securities
The aggregate cost of purchases and proceeds from sales of securities, other than short-term
obligations and investments in the Subsidiary and IMMF, for the six months ended December 30, 2011,
were as follows:
|
|
|
|
|
|
|
|
|
|
|
Purchases |
|
|
Sales |
|
|
Investment securities |
|
$ |
927,729,597 |
|
|
$ |
1,029,420,343 |
|
34 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
4. 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 Effective October 1, 2011 |
|
|
|
|
|
Up to $200 million |
|
|
0.75 |
% |
Next $200 million |
|
|
0.72 |
|
Next $200 million |
|
|
0.69 |
|
Next $200 million |
|
|
0.66 |
|
Next $2.2 billion |
|
|
0.60 |
|
Next $1 billion |
|
|
0.59 |
|
Next $2 billion |
|
|
0.58 |
|
Next $4 billion |
|
|
0.57 |
|
Over $10 billion |
|
|
0.56 |
|
|
|
|
|
|
Fee Schedule Thru Sept. 30, 2011 |
|
|
|
|
|
Up to $200 million |
|
|
0.75 |
% |
Next $200 million |
|
|
0.72 |
|
Next $200 million |
|
|
0.69 |
|
Next $200 million |
|
|
0.66 |
|
Next $2.2 billion |
|
|
0.60 |
|
Next $1 billion |
|
|
0.59 |
|
Over $4 billion |
|
|
0.58 |
|
Administration Service Fees. The Fund pays the Manager a fee of $1,500 per year for preparing
and filing the Funds tax returns.
Transfer Agent Fees. OppenheimerFunds Services (OFS), a division of the Manager, acts as the
transfer and shareholder servicing agent for the Fund. The Fund pays OFS a per account fee. For the
six months ended December 30, 2011, the Fund paid $6,054,842 to OFS for services to the Fund.
Additionally, Class Y shares are subject to minimum fees of $10,000 annually for assets of $10
million or more. The Class Y shares are subject to the minimum fees in the event that the per
account fee does not equal or exceed the applicable minimum fees. OFS may voluntarily waive the
minimum fees.
Distribution and Service Plan (12b-1) Fees. Under its General Distributors Agreement with the
Fund, OppenheimerFunds Distributor, Inc. (the Distributor) acts as the Funds principal
underwriter in the continuous public offering of the Funds classes of shares.
Service Plan for
Class A Shares. The Fund has adopted a Service Plan (the Plan) for Class A shares under Rule
12b-1 of the Investment Company Act of 1940. Under the Plan, the Fund reimburses the Distributor
for a portion of its costs incurred for services provided to accounts that hold Class A shares.
Reimbursement is made periodically at an annual rate of up to 0.25% of the daily net assets of
Class A shares of the Fund. The Distributor currently uses all of those fees to pay dealers,
brokers, banks and other financial institutions periodically for providing personal service and
maintenance of accounts of their customers that hold Class A shares. Any unreimbursed expenses the
Distributor incurs with respect to Class A shares in any fiscal year cannot be recovered in
subsequent periods. Fees incurred by the Fund under the Plan are detailed in the Statement of
Operations.
Distribution and Service Plans for Class B, Class C and Class N Shares. The Fund has adopted
Distribution and Service Plans (the Plans) for Class B, Class C and Class N shares under Rule
12b-1 of the Investment Company Act of 1940 to compensate the Distributor for its services in
connection with the distribution of those shares and servicing accounts.
35 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
4. Fees and Other Transactions with Affiliates Continued
Under the Plans, the Fund pays the Distributor an annual asset-based sales charge of 0.75% on
Class B and Class C shares daily net assets and 0.25% on Class N shares daily net assets. The
Distributor also receives a service fee of 0.25% per year under each plan. If either the Class B,
Class C or Class N plan is terminated by the Fund or by the shareholders of a class, the Board of
Trustees and its independent trustees must determine whether the Distributor shall be entitled to
payment from the Fund of all or a portion of the service fee and/or asset-based sales charge in
respect to shares sold prior to the effective date of such termination. Fees incurred by the Fund
under the Plans are detailed in the Statement of Operations. The Distributor determines its
uncompensated expenses under the Plans at calendar quarter ends. The Distributors aggregate
uncompensated expenses under the Plans at December 30, 2011 were as follows:
|
|
|
|
|
Class B |
|
$ |
732,431 |
|
Class C |
|
|
6,864,463 |
|
Class N |
|
|
2,998,829 |
|
Sales Charges. Front-end sales charges and contingent deferred sales charges (CDSC) do not
represent expenses of the Fund. They are deducted from the proceeds of sales of Fund shares prior
to investment or from redemption proceeds prior to remittance, as applicable. The sales charges
retained by the Distributor from the sale of shares and the CDSC retained by the Distributor on the
redemption of shares is shown in the following table for the period indicated.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A |
|
|
Class B |
|
|
Class C |
|
|
Class N |
|
|
|
Class A |
|
|
Contingent |
|
|
Contingent |
|
|
Contingent |
|
|
Contingent |
|
|
|
Front-End |
|
|
Deferred |
|
|
Deferred |
|
|
Deferred |
|
|
Deferred |
|
|
|
Sales Charges |
|
|
Sales Charges |
|
|
Sales Charges |
|
|
Sales Charges |
|
|
Sales Charges |
|
Six Months |
|
Retained by |
|
|
Retained by |
|
|
Retained by |
|
|
Retained by |
|
|
Retained by |
|
Ended |
|
Distributor |
|
|
Distributor |
|
|
Distributor |
|
|
Distributor |
|
|
Distributor |
|
|
December 30, 2011 |
|
$ |
416,649 |
|
|
$ |
44,267 |
|
|
$ |
177,704 |
|
|
$ |
81,622 |
|
|
$ |
851 |
|
Waivers and Reimbursements of Expenses. The Manager has contractually agreed to waive the
management fee it receives from the Fund in an amount equal to the management fee it receives from
the Subsidiary. This undertaking will continue in effect for so long as the Fund invests in the
Subsidiary and may not be terminated unless approved by the Funds Board of Trustees. During the
six months ended December 30, 2011, the Manager waived $116,165.
The Manager will waive fees and/or reimburse Fund expenses in an amount equal to the indirect
management fees incurred through the Funds investment in IMMF. During the six months ended
December 30, 2011, the Manager waived fees and/or reimbursed the Fund $7,442 for IMMF management
fees.
OFS has voluntarily agreed to limit transfer and shareholder servicing agent fees for Classes B, C,
N and Y shares to 0.35% of average annual net assets per class; this limit also applied to Class A
shares prior to September 1, 2011. Effective September 1, 2011, OFS has voluntarily agreed to limit
its fees for Class A shares to 0.30% of average annual net assets of the class.
36 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
During the six months ended December 30, 2011, OFS waived transfer and shareholder servicing agent
fees as follows:
Some of these undertakings may be modified or terminated at any time; some may not be modified
or terminated until after one year from the date of the current prospectus, as indicated therein.
5. Risk Exposures and the Use of Derivative Instruments
The Funds investment objectives not only permit the Fund to purchase investment securities, they
also allow the Fund to enter into various types of derivatives contracts, including, but not
limited to, futures contracts, forward foreign currency exchange contracts, credit default swaps,
interest rate swaps, total return 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. Central to those strategies are features
inherent to derivatives that make them more attractive for this purpose than equity and debt
securities: they require little or no initial cash investment, they can focus exposure on only
certain selected risk factors, and they may not require the ultimate receipt or delivery of the
underlying security (or securities) to the contract. This 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.
Market Risk Factors. In accordance with its investment objectives, the Fund may use derivatives to
increase or decrease its exposure to one or more of the following market risk factors:
Commodity
Risk. Commodity risk relates to the change in value of commodities or commodity indexes as they
relate to increases or decreases in the commodities market.
Commodities are physical assets that have tangible properties. Examples of these types of assets
are crude oil, heating oil, metals, livestock, and agricultural products.
Credit Risk. Credit risk relates to the ability of the issuer to meet interest and principal
payments, or both, as they come due. In general, lower-grade, higher-yield bonds are subject to
credit risk to a greater extent than lower-yield, higher-quality bonds.
Equity Risk. Equity risk relates to the change in value of equity securities as they relate to
increases or decreases in the general market.
Foreign Exchange Rate Risk. Foreign exchange rate risk relates to the change in the U.S. dollar
value of a security held that is denominated in a foreign currency. The U.S. dollar value of a
foreign currency denominated security will decrease as the dollar appreciates against the currency,
while the U.S. dollar value will increase as the dollar depreciates against the currency.
Interest Rate Risk. Interest rate risk refers to the fluctuations in value of fixed-income
securities resulting from the inverse relationship between price and yield. For example,
37 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
5. Risk Exposures and the Use of Derivative Instruments Continued
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 instruments price over a defined time period. Large increases or
decreases in a financial instruments price over a relative time period typically indicate greater
volatility risk, while small increases or decreases in its price typically indicate lower
volatility risk.
The Funds actual exposures to these market risk factors during the period are discussed in further
detail, by derivative type, below.
Risks of Investing in Derivatives. The Funds use of derivatives can result in losses due to
unanticipated changes in the market risk factors and the overall market. 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.
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. 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 Funds performance.
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. Associated risks can be
different for each type of derivative and are discussed by each derivative type in the notes that
follow.
Counterparty Credit Risk. Certain derivative positions are subject to counterparty credit risk,
which is the risk that the counterparty will not fulfill its obligation to the Fund. The Funds
derivative counterparties are financial institutions who are subject to market conditions that may
weaken their financial position. The Fund intends to enter into financial transactions with
counterparties that the Manager believes to be creditworthy at the time of the transaction.
Credit Related Contingent Features. The Funds agreements with derivative counterparties have
several credit related contingent features that if triggered would allow its derivatives
counterparties to close out and demand payment or additional collateral to cover their
38 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
exposure from the Fund. Credit related contingent features are established between the Fund and its
derivatives counterparties to reduce the risk that the Fund will not fulfill its payment
obligations to its counterparties. These triggering features include, but are not limited to, a
percentage decrease in the Funds net assets and or a percentage decrease in the Funds Net Asset
Value or NAV. The contingent features are established within the Funds International Swap and
Derivatives Association, Inc. master agreements which govern certain positions in swaps,
over-the-counter options and swaptions, and forward currency exchange contracts for each individual
counterparty.
Valuations of derivative instruments as of December 30, 2011 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Derivatives |
|
Liability Derivatives |
Derivatives Not |
|
Statement of Assets |
|
|
|
|
|
Statement of Assets |
|
|
Accounted for as |
|
and Liabilities |
|
|
|
|
|
and Liabilities |
|
|
Hedging Instruments |
|
Location |
|
Value |
|
|
Location |
|
Value |
|
|
Foreign exchange
contracts
|
|
Unrealized
appreciation on
foreign currency
exchange contracts
|
|
$ |
2,444 |
|
|
Unrealized
depreciation on
foreign currency
exchange contracts
|
|
$ |
29,951 |
|
Equity contracts
|
|
|
|
|
|
|
|
Appreciated options
written, at value
|
|
|
888,156 |
|
Equity contracts
|
|
|
|
|
|
|
|
Depreciated options
written, at value
|
|
|
2,444,355 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
$ |
2,444 |
|
|
|
|
$ |
3,362,462 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The effect of derivative instruments on the Statement of Operations is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount of Realized Gain or (Loss) Recognized on Derivatives |
|
|
|
Investments from |
|
|
Closing and |
|
|
|
|
|
|
|
Derivatives Not |
|
unaffiliated companies |
|
|
expiration of |
|
|
Foreign |
|
|
|
|
Accounted for as |
|
(including premiums |
|
|
option contracts |
|
|
currency |
|
|
|
|
Hedging Instruments |
|
on options exercised)* |
|
|
written |
|
|
transactions |
|
|
Total |
|
|
Equity contracts |
|
$ |
6,018,819 |
|
|
$ |
20,500,138 |
|
|
$ |
|
|
|
$ |
26,518,957 |
|
Foreign exchange contracts |
|
|
|
|
|
|
|
|
|
|
833,522 |
|
|
|
833,522 |
|
|
|
|
Total |
|
$ |
6,018,819 |
|
|
$ |
20,500,138 |
|
|
$ |
833,522 |
|
|
$ |
27,352,479 |
|
|
|
|
|
|
|
* |
|
Includes purchased option contracts, purchased swaption contracts and written option contracts
exercised, if any. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount of Change in Unrealized Gain or (Loss) Recognized on Derivatives |
|
Derivatives Not Accounted |
|
Option contracts |
|
|
Translation of assets and liabilities |
|
|
|
|
for as Hedging Instruments |
|
written |
|
|
denominated in foreign currencies |
|
|
Total |
|
|
Equity contracts |
|
$ |
(3,507,062 |
) |
|
$ |
|
|
|
$ |
(3,507,062 |
) |
Foreign exchange contracts |
|
|
|
|
|
|
38,707 |
|
|
|
38,707 |
|
|
|
|
Total |
|
$ |
(3,507,062 |
) |
|
$ |
38,707 |
|
|
$ |
(3,468,355 |
) |
|
|
|
Foreign Currency Exchange Contracts
The Fund may enter into foreign currency exchange contracts (forward contracts) for the purchase
or sale of a foreign currency at a negotiated rate at a future date.
39 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
5. Risk Exposures and the Use of Derivative Instruments Continued
Forward contracts are reported on a schedule following the Statement of Investments. Forward
contracts will be valued daily based upon the closing prices of the forward currency rates
determined at the close of the Exchange as provided by a bank, dealer or pricing service. The
resulting 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 purchased and sold certain forward foreign currency exchange contracts of different
currencies in order to acquire currencies to pay for or sell currencies to acquire related foreign
securities purchase and sale transactions, respectively, or to convert foreign currencies to U.S.
dollars from related foreign securities transactions. These foreign currency exchange contracts are
negotiated at the current spot exchange rate with settlement typically within two business days
thereafter.
During the six months ended December 30, 2011, the Fund had daily average contract amounts on
forward foreign currency contracts to buy and sell of $6,332,907 and $9,824,294, respectively.
Additional associated risk to the Fund includes counterparty credit risk. Counterparty credit risk
arises from the possibility that the counterparty will default.
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 at a fixed price, upon exercise of the option.
Options are valued daily based upon the last sale price on the principal exchange on which the
option is traded. 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.
Options written, if any, are reported in a schedule following the Statement of Investments and as a
liability in the Statement of Assets and Liabilities. Securities held in collateralized accounts to
cover potential obligations with respect to outstanding written options are noted in the Statement
of Investments.
The risk in writing a call option is that the Fund gives up the opportunity for profit if the
market price of the security increases and the option is exercised. The risk in writing a put
option is that the Fund may incur a loss if the market price of the security decreases and the
option is exercised. The risk in buying an option is that the Fund pays a premium whether or not
the option is exercised. The Fund also has the additional risk that there may be an illiquid market
where the Fund is unable to close the contract.
40 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
The Fund has written put options on individual equity securities and/or equity indexes to increase
exposure to equity risk. A written put option becomes more valuable as the price of the underlying
financial instrument appreciates relative to the strike price.
The Fund has written call options on individual equity securities and/or equity indexes to decrease
exposure to equity risk. A written call option becomes more valuable as the price of the underlying
financial instrument depreciates relative to the strike price.
During the six months ended December 30, 2011, the Fund had an ending monthly average market value
of $7,397,804 and $8,827,451 on written call options and written put options, respectively.
Additional associated risks to the Fund include counterparty credit risk for over-the-counter
options and liquidity risk.
Written option activity for the six months ended December 30, 2011 was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Call Options |
|
|
Put Options |
|
|
|
Number of |
|
|
Amount of |
|
|
Number of |
|
|
Amount of |
|
|
|
Contracts |
|
|
Premiums |
|
|
Contracts |
|
|
Premiums |
|
|
Options outstanding as of
June 30, 2011 |
|
|
72,000 |
|
|
$ |
9,166,073 |
|
|
|
94,500 |
|
|
$ |
11,825,430 |
|
Options written |
|
|
87,000 |
|
|
|
10,259,780 |
|
|
|
71,000 |
|
|
|
8,577,245 |
|
Options closed or expired |
|
|
(136,000 |
) |
|
|
(16,225,975 |
) |
|
|
(114,333 |
) |
|
|
(14,203,518 |
) |
Options exercised |
|
|
(23,000 |
) |
|
|
(3,199,878 |
) |
|
|
(22,545 |
) |
|
|
(2,818,941 |
) |
|
|
|
Options outstanding as of
December 30, 2011 |
|
|
|
|
|
$ |
|
|
|
|
28,622 |
|
|
$ |
3,380,216 |
|
|
|
|
6. Pending Litigation
Since 2009, a number of class action, derivative and individual lawsuits have been pending in
federal and state courts against OppenheimerFunds, Inc., the Funds investment advisor (the
Manager), OppenheimerFunds Distributor, Inc., the Funds principal underwriter and distributor
(the Distributor), and certain funds (but not including the Fund) advised by the Manager and
distributed by the Distributor (the Defendant Funds). Several of these lawsuits also name as
defendants certain officers and current and former trustees of the respective Defendant Funds. The
lawsuits raise claims under federal securities laws and various states securities, consumer
protection and common law and allege, among other things, that the disclosure documents of the
respective Defendant Funds contained misrepresentations and omissions and that the respective
Defendant Funds investment policies were not followed. The plaintiffs in these actions seek
unspecified damages, equitable relief and awards of attorneys fees and litigation expenses. On
September 30, 2011, the U.S. District Court for the District of Colorado entered orders and final
judgments approving the settlement of certain putative class actions involving two Defendant Funds,
Oppenheimer Champion Income Fund and Oppenheimer Core Bond Fund. Those orders are not subject to
further appeal. These settlements do not resolve other outstanding lawsuits relating to Oppenheimer
Champion Income Fund and Oppenheimer Core Bond
41 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
6. Pending Litigation Continued
Fund, nor do the settlements affect certain other putative class action lawsuits pending in
federal court against the Manager, the Distributor, and other Defendant Funds and their independent
trustees.
In 2009, what are claimed to be derivative lawsuits were filed in New Mexico state court against
the Manager and a subsidiary (but not against the Fund) on behalf of the New Mexico Education Plan
Trust challenging a settlement reached in 2010 between the Manager, its subsidiary and the
Distributor and the board of the New Mexico section 529 college savings plan. These lawsuits allege
breach of contract, breach of fiduciary duty, negligence and violation of state securities laws,
and seek compensatory damages, equitable relief and an award of attorneys fees and litigation
expenses. On September 9, 2011, the court denied plaintiffs request for a hearing to determine the
fairness of the settlement, finding that plaintiffs lacked standing to pursue derivative claims on
behalf of the Trust. On October 27, 2011, the parties to these actions filed a joint motion to
dismiss the lawsuits with prejudice, which the court granted on October 28, 2011.
Other class action and individual lawsuits have been filed since 2008 in various state and federal
courts against the Manager and certain of its affiliates by investors seeking to recover
investments they allegedly lost as a result of the Ponzi scheme run by Bernard L. Madoff and his
firm, Bernard L. Madoff Investment Securities, LLC (BLMIS). Plaintiffs in these suits allege that
they suffered losses as a result of their investments in several funds managed by an affiliate of
the Manager and assert a variety of claims, including breach of fiduciary duty, fraud, negligent
misrepresentation, unjust enrichment, and violation of federal and state securities laws and
regulations, among others. They seek unspecified damages, equitable relief and awards of attorneys
fees and litigation expenses. Neither the Distributor, nor any of the Oppenheimer mutual funds,
their independent trustees or directors are named as defendants in these lawsuits. None of the
Oppenheimer mutual funds invested in any funds or accounts managed by Madoff or BLMIS. On February
28, 2011, a stipulation of partial settlement of three groups of consolidated putative class action
lawsuits relating to these matters was filed in the U.S. District Court for the Southern District
of New York. On August 19, 2011, the court entered an order and final judgment approving the
settlement as fair, reasonable and adequate. In September 2011, certain parties filed notices of
appeal from the courts order approving the settlement. On July 29, 2011, a stipulation of
settlement between certain affiliates of the Manager and the Trustee appointed under the Securities
Investor Protection Act to liquidate BLMIS was filed in the U.S. Bankruptcy Court for the Southern
District of New York to resolve purported preference and fraudulent transfer claims by the Trustee.
On September 22, 2011, the court entered an order approving the settlement as fair, reasonable and
adequate. In October 2011, certain parties filed notices of appeal from the courts order approving
the settlement. The aforementioned settlements do not resolve other outstanding lawsuits against
the Manager and its affiliates relating to BLMIS.
On April 16, 2010, a lawsuit was filed in New York state court against the Manager, an affiliate of
the Manager and AAArdvark IV Funding Limited (AAArdvark IV), an entity
42 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
advised by the Managers affiliate, in connection with investments made by the plaintiffs in
AAArdvark IV. Plaintiffs allege breach of contract against the defendants and seek compensatory
damages, costs and disbursements, including attorney fees. On July 15, 2011, a lawsuit was filed in
New York state court against the Manager, an affiliate of the Manager and AAArdvark Funding Limited
(AAArdvark I), an entity advised by the Managers affiliate, in connection with investments made
by the plaintiffs in AAArdvark I. The complaint alleges breach of contract against the defendants
and seeks compensatory damages, costs and disbursements, including attorney fees. On November 9,
2011, a lawsuit was filed in New York state court against the Manager, an affiliate of the Manager
and AAArdvark XS Funding Limited (AAArdvark XS), an entity advised by the Managers affiliate, in
connection with investments made by the plaintiffs in AAArdvark XS. The complaint alleges breach of
contract against the defendants and seeks compensatory damages, costs and disbursements, including
attorney fees.
The Manager believes the lawsuits and appeals described above are without legal merit and, with the
exception of actions it has settled, is defending against them vigorously. The Defendant Funds
Boards of Trustees have also engaged counsel to represent the Funds and the present and former
Independent Trustees named in those suits. While it is premature to render any opinion as to the
outcome in these lawsuits, or whether any costs that the Defendant Funds may bear in defending the
suits might not be reimbursed by insurance, the Manager believes that these suits should not impair
the ability of the Manager or the Distributor to perform their respective duties to the Fund, and
that the outcome of all of the suits together should not have any material effect on the operations
of any of the Oppenheimer mutual funds.
43 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
BOARD APPROVAL OF THE FUNDS INVESTMENT ADVISORY AGREEMENT Unaudited
Each year, the Board of Trustees (the Board), including a majority of the independent
Trustees, is required to determine whether to renew the Funds investment advisory agreement (the
Agreement). The Investment Company Act of 1940, as amended, requires that the Board request and
evaluate, and that the Manager provide, such information as may be reasonably necessary to evaluate
the terms of the Agreement. The Board employs an independent consultant to prepare a report that
provides information, including comparative information that the Board requests for that purpose.
In addition, the Board receives information throughout the year regarding Fund services, fees,
expenses and performance.
The Manager and the independent consultant provided information to the Board on the following
factors: (i) the nature, quality and extent of the Managers services, (ii) the investment
performance of the Fund and the Manager, (iii) the fees and expenses of the Fund, including
comparative expense information, (iv) the profitability of the Manager and its affiliates,
including an analysis of the cost of providing services, (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 Manager from its relationship with the Fund. The Board was
aware that there are alternatives to retaining the Manager.
Outlined below is a summary of the principal information considered by the Board as well as the
Boards 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 Managers investment team, who provide research, analysis
and other advisory services in regard to the Funds investments; securities trading services;
oversight of third-party service providers; monitoring compliance with applicable Fund policies and
procedures and adherence to the Funds investment restrictions. The Manager is responsible for
providing certain administrative services to the Fund as well. Those services include providing and
supervising all administrative and clerical personnel who are necessary in order to provide
effective corporate administration for the Fund; compiling and maintaining records with respect to
the Funds operations; preparing and filing reports required by the Securities and Exchange
Commission; preparing periodic reports regarding the operations of the Fund for its shareholders;
preparing proxy materials for shareholder meetings; and preparing the registration statements
required by Federal and state securities laws for the sale of the Funds shares. The Manager also
provides the Fund with office space, facilities and equipment.
44 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
The Board also considered the quality of the services provided and the quality of the Managers
resources that are available to the Fund. The Board took account of the fact that the Manager 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 and compliance services, 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 Shanquan Li, the portfolio
manager for the Fund, and the Managers investment team and analysts. The Board members also
considered the totality of their experiences with the Manager as directors or trustees of the Fund
and other funds advised by the Manager. The Board considered information regarding the quality of
services provided by affiliates of the Manager, which its members have become knowledgeable about
in connection with the renewal of the Funds service agreements. The Board concluded, in light of
the Managers experience, reputation, personnel, operations and resources that the Fund benefits
from the services provided under the Agreement.
Investment Performance of the Manager and the Fund. Throughout the year, the Manager provided
information on the investment performance of the Fund and the Manager, including comparative
performance information. The Board also reviewed information, prepared by the Manager and by the
independent consultant, comparing the Funds historical performance to relevant market indices and
to the performance of other retail front-end load and no-load precious metals funds. The Board
noted that the Funds one-year, three-year, five-year and ten-year performance was better than its
peer group median.
Costs of Services by the Manager. The Board reviewed the fees paid to the Manager and the other
expenses borne by the Fund. The Board also considered the comparability of the fees charged and the
services provided to the Fund to the fees and services for other clients or accounts advised by the
Manager. The independent consultant provided comparative data in regard to the fees and expenses of
the Fund and other retail front-end load precious metals funds with comparable asset levels and
distribution features. The Board noted that the Funds actual management fees were equal to its
peer group median and lower than its peer group average. The Funds contractual management fees and
total expenses were lower than its peer group median and average. The Manager has contractually
agreed to waive the management fee it receives from the Fund in an amount equal to the management
fee it receives from Oppenheimer Gold & Special Minerals Fund (Cayman) Ltd.
45 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
BOARD APPROVAL OF THE FUNDS INVESTMENT
ADVISORY AGREEMENT Unaudited / Continued
Economies of Scale and Profits Realized by the Manager. The Board considered information
regarding the Managers costs in serving as the Funds investment adviser, including the costs
associated with the personnel and systems necessary to manage the Fund, and information regarding
the Managers profitability from its relationship with the Fund. The Board reviewed whether the
Manager 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 Funds assets grow. Based on the Boards
evaluation, the Manager agreed to a revised breakpoint schedule that, effective October 1, 2011,
declines for additional assets as the Funds assets grow: 0.75% of the first $200 million of
average annual net assets of the Fund, 0.72% of the next $200 million, 0.69% of the next $200
million, 0.66% of the next $200 million, 0.60% of the next $2.2 billion, 0.59% of the next $1
billion, 0.58% of the next $2 billion, 0.57% of the next $4 billion and 0.56% of average annual net
assets over $10 billion.
Other Benefits to the Manager. In addition to considering the profits realized by the Manager, the
Board considered information that was provided regarding the direct and indirect benefits the
Manager receives as a result of its relationship with the Fund, including compensation paid to the
Managers affiliates and research provided to the Manager in connection with permissible brokerage
arrangements (soft dollar arrangements). The Board also considered that the Manager must be able to
pay and retain experienced professional personnel at competitive rates to provide quality services
to the Fund.
Conclusions. These factors were also considered by the independent Trustees meeting separately from
the full Board, assisted by experienced counsel to the Fund and to the independent Trustees. Fund
counsel and the independent Trustees counsel are independent of the Manager within the meaning and
intent of the Securities and Exchange Commission Rules.
Based on its review of the information it received and its evaluations described above, the Board,
including a majority of the independent Trustees, decided to continue the Agreement through
September 30, 2012. In arriving at this decision, the Board did not single out any factor or
factors as being more important than others, but considered all of the above information, and
considered the terms and conditions of the Agreement, including the management fee, in light of all
of the surrounding circumstances.
46 | OPPENHEIMER GOLD & SPECIAL MINERALS 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 Funds
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 Funds website at
oppenheimerfunds.com, and (iii) on the SECs 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 Funds 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 SECs 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 Funds Form N-Q filings are available on the
SECs website at www.sec.gov. Those forms may be reviewed and copied at the SECs 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.
HouseholdingDelivery 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 funds prospectus (or, if available, the funds 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.
47 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
OPPENHEIMER GOLD & SPECIAL MINERALS FUND
|
|
|
Trustees and Officers
|
|
Brian F. Wruble, Chairman of the Board of Trustees and Trustee |
|
|
David K. Downes, Trustee |
|
|
Matthew P. Fink, Trustee |
|
|
Phillip A. Griffiths, Trustee |
|
|
Mary F. Miller, Trustee |
|
|
Joel W. Motley, Trustee |
|
|
Mary Ann Tynan, Trustee |
|
|
Joseph M. Wikler, Trustee |
|
|
Peter I. Wold, Trustee |
|
|
William F. Glavin, Jr., President and Principal Executive Officer |
|
|
Shanquan Li, Vice President |
|
|
Arthur S. Gabinet, Secretary |
|
|
Christina M. Nasta, Vice President and Chief Business Officer |
|
|
Mark S. Vandehey, Vice President and Chief Compliance Officer |
|
|
Brian W. Wixted, Treasurer and Principal Financial & Accounting Officer |
|
|
|
Manager
|
|
OppenheimerFunds, Inc. |
|
|
|
Distributor
|
|
OppenheimerFunds Distributor, Inc. |
|
|
|
Transfer and Shareholder Servicing Agent
|
|
OppenheimerFunds Services |
|
|
|
Independent Registered Public Accounting Firm
|
|
KPMG LLP |
|
|
|
Legal Counsel
|
|
Kramer Levin Naftalis & Frankel LLP |
|
|
|
|
|
The financial statements included herein have been taken from the records of
the Fund without examination of those records by the independent registered
public accounting firm. |
©2012 OppenheimerFunds, Inc. All rights reserved.
48 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
Financial Statements for Oppenheimer Gold & Special Minerals Fund (Cayman) Ltd. for the Six Months Ended December 30, 2011
|
|
|
|
|
|
50 |
|
|
Statement of Investments |
|
52 |
|
|
Statement of Assets and Liabilities |
|
53 |
|
|
Statement of Operations |
|
54 |
|
|
Statements of Changes in Net Assets |
|
55 |
|
|
Notes to Financial Statements |
49 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
OPPENHEIMER GOLD & SPECIAL MINERALS FUND (CAYMAN) LTD.
STATEMENT OF INVESTMENTS December 30, 2011* / Unaudited
|
|
|
|
|
|
|
|
|
|
|
Shares |
|
|
Value |
|
|
Investment Company100.7% |
|
|
|
|
|
|
|
|
SPDR Gold Trust1,2 (Cost $100,708,915) |
|
|
610,000 |
|
|
$ |
92,713,900 |
|
Total Investments, at Value (Cost $100,708,915) |
|
|
100.7 |
% |
|
|
92,713,900 |
|
Liabilities in Excess of Other Assets |
|
|
(0.7 |
) |
|
|
(681,852 |
) |
|
|
|
Net Assets |
|
|
100.0 |
% |
|
$ |
92,032,048 |
|
|
|
|
Footnotes to Statement of Investments
|
|
|
* |
|
December 30, 2011 represents the last business day of the Funds semiannual period. See Note
1 of the accompanying Notes. |
|
1. |
|
All or a portion of the security position is held in collateralized accounts to cover potential
obligations with respect to outstanding written options. See Note 5 of the accompanying Notes. |
|
2. |
|
Non-income producing security. |
Valuation Inputs
Various data inputs are used in determining the value of each of the Funds investments as of the
reporting period end. These data inputs are categorized in the following hierarchy under applicable
financial accounting standards:
|
1) |
|
Level 1unadjusted quoted prices in active markets for identical assets or liabilities
(including securities actively traded on a securities exchange) |
|
|
2) |
|
Level 2inputs 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 3significant unobservable inputs (including the Managers own judgments about
assumptions that market participants would use in pricing the asset or liability). |
The table below categorizes amounts that are included in the Funds Statement of Assets and
Liabilities as of December 30, 2011 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: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Company |
|
$ |
92,713,900 |
|
|
$ |
|
|
|
$ |
|
|
|
$ |
92,713,900 |
|
|
|
|
Total Assets |
|
$ |
92,713,900 |
|
|
$ |
|
|
|
$ |
|
|
|
$ |
92,713,900 |
|
|
|
|
Liabilities Table |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Financial Instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appreciated options written, at value |
|
$ |
(209,000 |
) |
|
$ |
|
|
|
$ |
|
|
|
$ |
(209,000 |
) |
Depreciated options written, at value |
|
|
(387,000 |
) |
|
|
|
|
|
|
|
|
|
|
(387,000 |
) |
|
|
|
Total Liabilities |
|
$ |
(596,000 |
) |
|
$ |
|
|
|
$ |
|
|
|
$ |
(596,000 |
) |
|
|
|
Currency contracts and forwards, if any, are reported at their unrealized appreciation/depreciation
at measurement date, which represents the change in the contracts value from trade date. Futures,
if any, are reported at their variation margin at measurement date, which represents the amount due
to/from the Fund at that date. All additional assets and liabilities included in the above table
are reported at their market value at measurement date.
See the accompanying Notes for further discussion of the methods used in determining value of the
Funds investments, and a summary of changes to the valuation methodologies, if any, during the
reporting period.
50 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
Written Options as of December 30, 2011 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized |
|
|
|
|
|
|
|
Number of |
|
|
Exercise |
|
|
Expiration |
|
|
Premiums |
|
|
|
|
|
|
Appreciation/ |
|
Description |
|
Type |
|
|
Contracts |
|
|
Price |
|
|
Date |
|
|
Received |
|
|
Value |
|
|
(Depreciation) |
|
|
SPDR Gold Trust |
|
Put |
|
|
1,000 |
|
|
$ |
150.000 |
|
|
|
1/23/12 |
|
|
$ |
234,413 |
|
|
$ |
(209,000 |
) |
|
$ |
25,413 |
|
SPDR Gold Trust |
|
Put |
|
|
1,000 |
|
|
|
150.000 |
|
|
|
2/20/12 |
|
|
|
232,973 |
|
|
|
(387,000 |
) |
|
|
(154,027 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
467,386 |
|
|
$ |
(596,000 |
) |
|
$ |
(128,614 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying Notes to Financial Statements.
51 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
OPPENHEIMER GOLD & SPECIAL MINERALS FUND (CAYMAN) LTD.
STATEMENT OF ASSETS AND LIABILITIES Unaudited
December 30, 20111
|
|
|
|
|
Assets |
|
|
|
|
Investments, at value (cost $100,708,915)see accompanying statement of investments |
|
$ |
92,713,900 |
|
|
|
|
|
|
Liabilities |
|
|
|
|
Appreciated options written, at value (premiums received $234,413) |
|
|
209,000 |
|
Depreciated options written, at value (premiums received $232,973) |
|
|
387,000 |
|
Payables and other liabilities: |
|
|
|
|
Management and administrative fees |
|
|
54,660 |
|
Investments purchased |
|
|
12,023 |
|
Other |
|
|
19,169 |
|
|
|
|
|
Total liabilities |
|
|
681,852 |
|
|
|
|
|
|
Net Assets |
|
$ |
92,032,048 |
|
|
|
|
|
|
|
|
|
|
Composition of Net Assets |
|
|
|
|
Par value of shares of beneficial interest |
|
$ |
41 |
|
Additional paid-in capital |
|
|
98,623,771 |
|
Accumulated net investment loss |
|
|
(168,128 |
) |
Accumulated net realized gain on investments |
|
|
1,699,993 |
|
Net unrealized depreciation on investments |
|
|
(8,123,629 |
) |
|
|
|
|
Net Assetsapplicable to 4,055.82 shares of beneficial interest outstanding |
|
$ |
92,032,048 |
|
|
|
|
|
Net Asset Value, Redemption Price Per Share and Offering Price Per Share |
|
$ |
22,691.35 |
|
|
|
|
1. |
|
December 30, 2011 represents the last business day of the Funds semiannual period. See Note 1
of the accompanying Notes. |
See accompanying Notes to Financial Statements.
52 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
OPPENHEMIER GOLD & SPECIAL MINERALS FUND (CAYMAN) LTD.
STATEMENT OF OPERATIONS Unaudited
For the Six Months Ended December 30, 20111
|
|
|
|
|
Expenses |
|
|
|
|
Management fees |
|
$ |
116,636 |
|
Legal, auditing and other professional fees |
|
|
5,949 |
|
Directors compensation |
|
|
3,681 |
|
Custodian fees and expenses |
|
|
332 |
|
Other |
|
|
490 |
|
|
|
|
|
Total expenses |
|
|
127,088 |
|
|
|
|
|
|
Net Investment Loss |
|
|
(127,088 |
) |
|
|
|
|
|
Realized and Unrealized Gain (Loss) |
|
|
|
|
Net realized gain on: |
|
|
|
|
Investments (including premiums on options exercised) |
|
|
1,002,685 |
|
Closing and expiration of option contracts written |
|
|
697,308 |
|
|
|
|
|
Net realized gain |
|
|
1,699,993 |
|
Net change in unrealized appreciation/depreciation on: |
|
|
|
|
Investments |
|
|
(8,123,561 |
) |
Option contracts written |
|
|
(128,614 |
) |
|
|
|
|
Net change in unrealized appreciation/depreciation |
|
|
(8,252,175 |
) |
|
|
|
|
|
Net Decrease in Net Assets Resulting from Operations |
|
$ |
(6,679,270 |
) |
|
|
|
|
|
|
|
1. |
|
December 30, 2011 represents the last business day of the Funds semiannual period. See Note 1
of the accompanying Notes. |
See accompanying Notes to Financial Statements.
53 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
OPPENHEIMER GOLD & SPECIAL MINERALS FUND (CAYMAN) LTD.
STATEMENTS OF CHANGES IN NET ASSETS
|
|
|
|
|
|
|
|
|
|
|
Six Months |
|
|
|
|
|
|
Ended |
|
|
|
|
|
|
December 30, 20111 |
|
|
Period Ended |
|
|
|
(Unaudited) |
|
|
June 30, 20112 |
|
|
Operations |
|
|
|
|
|
|
|
|
Net investment loss |
|
$ |
(127,088 |
) |
|
$ |
(41,040 |
) |
Net realized gain |
|
|
1,699,993 |
|
|
|
|
|
Net change in unrealized appreciation/depreciation |
|
|
(8,252,175 |
) |
|
|
128,546 |
|
|
|
|
Net increase (decrease) in net assets resulting from operations |
|
|
(6,679,270 |
) |
|
|
87,506 |
|
|
|
|
|
|
|
|
|
|
Capital Transactions |
|
|
|
|
|
|
|
|
Net increase in net assets resulting from capital transactions |
|
|
97,123,441 |
|
|
|
1,500,371 |
|
|
|
|
|
|
|
|
|
|
Net Assets |
|
|
|
|
|
|
|
|
Total increase |
|
|
90,444,171 |
|
|
|
1,587,877 |
|
Beginning of period |
|
|
1,587,877 |
|
|
|
|
|
|
|
|
End of period (including accumulated net investment loss of $168,128
and $41,040, respectively) |
|
$ |
92,032,048 |
|
|
$ |
1,587,877 |
|
|
|
|
|
|
|
1. |
|
December 30, 2011 represents the last business day of the Funds semiannual period. See Note 1
of the accompanying Notes. |
|
2. |
|
For the period from December 8, 2010 (commencement of operations) to June 30, 2011. |
See accompanying Notes to Financial Statements.
54 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
OPPENHEIMER GOLD & SPECIAL MINERALS FUND (CAYMAN) LTD.
NOTES TO FINANCIAL STATEMENTS Unaudited
1. Significant Accounting Policies
Oppenheimer Gold & Special Minerals Fund (Cayman) Ltd. (the Fund) is organized as a Cayman
Islands Company Limited by Shares. The Fund intends to carry on the business of an investment
company and to acquire, invest in and hold by way of investment, sell and deal primarily in
commodity-linked derivatives (including commodity futures, financial futures, options and swap
contracts) and exchange traded funds (ETF) related to gold or other special minerals. The
Subsidiary may also invest in certain fixed-income securities and other investments that may serve
as margin or collateral for its derivatives positions. The Funds investment adviser is
OppenheimerFunds, Inc. (the Manager). The Sub-Adviser is Oppenheimer Real Asset Management, Inc.
(ORAMI or the Sub-Adviser), a wholly-owned subsidiary of the Manager. As of December 30, 2011,
100% of the Fund was owned by Oppenheimer Gold & Special Minerals Fund (OGSMF). The Manager is
also the investment adviser of OGSMF. The Fund commenced operations on December 8, 2010.
The beneficial interest of each investor in the Fund is represented by units of participating
shares. The Funds directors may further designate classes of participating shares and series
within each class. As of December 30, 2011, the directors have not designated classes or series of
outstanding participating shares. During the six months ended December 30, 2011, all income,
profits, losses and expenses, if any, of the Fund were allocated pro rata to all participating
shares of the Fund. Issuance of additional participating shares is at the discretion of the Funds
directors.
The following is a summary of significant accounting policies consistently followed by the Fund.
Semiannual Period. Since December 30, 2011 represents the last day during the Funds semiannual
period on which the New York Stock Exchange was open for trading, the Funds financial statements
have been presented through that date to maintain consistency with the Funds net asset value
calculations used for shareholder transactions.
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.
Each investment asset or liability of the Fund is assigned a level at measurement date based on the
significance and source of the inputs to its valuation. Unadjusted quoted prices in active markets
for identical securities are classified as Level 1, observable market inputs other than
unadjusted quoted prices are classified as Level 2 and significant unobservable inputs, including
the Managers judgment about the assumptions that a market participant would use in pricing an
asset or liability, are classified as Level 3. The inputs used for valuing securities are not
necessarily an indication of the risks associated with investing in those securities. A table
summarizing the Funds investments under these levels of classification is included following the
Statement of Investments.
Securities are valued using unadjusted quoted market prices, when available, as supplied primarily
by portfolio pricing services approved by the Board of Directors or dealers.
55 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
OPPENHEIMER GOLD & SPECIAL MINERALS FUND (CAYMAN) LTD.
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
1. Significant Accounting Policies Continued
Securities traded on a registered U.S. securities exchange are valued based on the last sale
price of the security reported on the principal exchange on which it is traded, prior to the time
when the Funds assets are valued. Securities whose principal exchange is NASDAQ® are valued based
on the official closing prices reported by NASDAQ prior to the time when the Funds assets are
valued. In the absence of a sale, the security is valued at the last sale price on the prior
trading day, if it is within the spread of the current days closing bid and asked prices, and
if not, at the current days closing bid price. A foreign security traded on a foreign exchange is
valued based on the last sale price on the principal exchange on which the security is traded, as
identified by the portfolio pricing service used by the Manager, prior to the time when the Funds
assets are valued. In the absence of a sale, the security is valued at the most recent official
closing price on the principal exchange on which it is traded.
Shares of a registered investment company that are not traded on an exchange are valued at that
investment companys net asset value per share.
U.S. domestic and international debt instruments (including corporate, government, municipal,
mortgage-backed, collateralized mortgage obligations and asset-backed securities) and money
market-type debt instruments with a remaining maturity in excess of sixty days are valued at the
mean between the bid and asked prices utilizing price quotations obtained from independent
pricing services or broker-dealers. Such prices are typically determined based upon information
obtained from market participants including reported trade data, broker-dealer price quotations and
inputs such as benchmark yields and issuer spreads from identical or similar securities.
Money market-type debt instruments with remaining maturities 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.
In the absence of a current price quotation obtained from an independent pricing service or
broker-dealer, including for securities whose values have been materially affected by what the
Manager identifies as a significant event occurring before the Funds assets are valued but after
the close of the securities respective exchanges, the Manager, acting through its internal
valuation committee, in good faith determines the fair valuation of that asset using consistently
applied procedures under the supervision of the Board of Directors (which reviews those fair
valuations by the Manager). Those procedures include certain standardized methodologies to fair
value securities. Such methodologies include, but are not limited to, pricing securities 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 adjusted for any discounts related to 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.
56 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
There have been no significant changes to the fair valuation methodologies of the Fund during the
period.
Income Taxes. The Fund has received an undertaking from the Government of the Cayman Islands
exempting it from all local income, profits and capital gains taxes through September of 2030. No
such taxes are levied in the Cayman Islands at the present time. The Fund is a Controlled Foreign
Corporation under U.S. tax laws and as such is not subject to U.S. income tax. Therefore, the Fund
is not required to record a tax provision.
Dividends and Distributions to Shareholders. Dividends and distributions to shareholders, if any,
are declared and paid annually from the Funds tax basis earnings and profits. Distributions are
recorded on ex-dividend date. The tax character of distributions is determined as of the Funds
fiscal year end. Therefore, a portion of the Funds distributions made to shareholders prior to the
Funds 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 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 Funds 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 Funds 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.
57 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
OPPENHEIMER GOLD & SPECIAL MINERALS FUND (CAYMAN) LTD.
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
1. Significant Accounting Policies Continued
Other. The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements and the reported amounts of
increases and decreases in net assets from operations during the reporting period. Actual results
could differ from those estimates.
2. Capital Transactions
The Fund has authorized 5,000,000 participating shares of $0.01 par value per share. The Fund
issued 4,055.82 participating shares for $405,582 on December 8, 2010 in conjunction with OGSMFs
initial capitalization of the Fund. All subsequent capital contributions and withdrawals did not
have participating shares associated with the transaction.
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
Period Ended |
|
|
|
December 30, 2011 |
|
|
June 30, 20111 |
|
|
|
Amount |
|
|
Amount |
|
|
Contributions |
|
$ |
98,000,626 |
|
|
$ |
1,500,371 |
|
Withdrawals |
|
|
(877,185 |
) |
|
|
|
|
|
|
|
Net increase |
|
$ |
97,123,441 |
|
|
$ |
1,500,371 |
|
|
|
|
|
|
|
1. |
|
For the period from December 8, 2010 (commencement of operations) to June 30, 2011. |
3. Expenses
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 Effective October 1,
2011 |
|
|
|
Up to $200 million |
|
|
0.75 |
% |
Next $200 million |
|
|
0.72 |
|
Next $200 million |
|
|
0.69 |
|
Next $200 million |
|
|
0.66 |
|
Next $2.2 billion |
|
|
0.60 |
|
Next $1 billion |
|
|
0.59 |
|
Next $2 billion |
|
|
0.58 |
|
Next $4 billion |
|
|
0.57 |
|
Over $10 billion |
|
|
0.56 |
|
|
|
|
|
|
Fee Schedule Thru Sept. 30, 2011 |
|
|
|
|
Up to $200 million |
|
|
0.75 |
% |
Next $200 million |
|
|
0.72 |
|
Next $200 million |
|
|
0.69 |
|
Next $200 million |
|
|
0.66 |
|
Next $2.2 billion |
|
|
0.60 |
|
Next $1 billion |
|
|
0.59 |
|
Over $4 billion |
|
|
0.58 |
|
Sub-Adviser Fees. The Manager retains 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 a fee in
monthly installments, based on the daily net assets of the Fund at an annual rate as shown in the
following table:
|
|
|
|
|
Fee Schedule Effective October 1, 2011 |
|
|
|
Up to $200 million |
|
|
0.375 |
% |
Next $200 million |
|
|
0.360 |
|
Next $200 million |
|
|
0.345 |
|
Next $200 million |
|
|
0.330 |
|
|
|
|
|
|
Fee Schedule Thru Sept. 30, 2011 |
|
|
|
|
Up to $200 million |
|
|
0.375 |
% |
Next $200 million |
|
|
0.360 |
|
Next $200 million |
|
|
0.345 |
|
Next $200 million |
|
|
0.330 |
|
58 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
|
|
|
|
|
Fee Schedule Effective October 1, 2011 |
|
|
|
|
Next $2.2 billion |
|
|
0.300 |
% |
Next $1 billion |
|
|
0.295 |
|
Next $2 billion |
|
|
0.290 |
|
Next $4 billion |
|
|
0.285 |
|
Over $10 billion |
|
|
0.280 |
|
|
|
|
|
|
Fee Schedule Thru Sept. 30, 2011 |
|
|
|
|
Next $2.2 billion |
|
|
0.300 |
% |
Next $1 billion |
|
|
0.295 |
|
Over $4 billion |
|
|
0.290 |
|
The Fund shall bear all fees and expenses related to the business and affairs of the Fund,
including among others, directors fees, audit fees, custodian fees and expenses in connection with
the purchase and sale of securities and other Fund assets.
4. Financial Highlights
The following represents the total return of the Fund for the six months ended December 30, 2011.
Total return was calculated based upon the daily returns of the Fund during this period. The
calculation has not been annualized for reporting purposes:
|
|
|
|
|
Six Months Ended December 30, 2011 |
|
|
(50.01 |
)% |
Period Ended June 30, 20111 |
|
|
2.34 |
% |
The following represents certain financial ratios of the Fund for the periods noted. The
computation of the net investment income and total expense ratios was based upon the daily net
assets of the Fund during these periods. The calculations have been annualized for reporting
purposes:
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
Period Ended |
|
|
|
December 30, 2011 |
|
|
June 30, 20111 |
|
|
Ratios to average net assets: |
|
|
|
|
|
|
|
|
Net investment loss |
|
|
(0.81 |
)% |
|
|
(6.18 |
)% |
Total expenses |
|
|
0.81 |
% |
|
|
6.18 |
% |
|
|
|
1. |
|
For the period from December 8, 2010 (commencement of operations) to June 30, 2011. |
5. Risk Exposures and the Use of Derivative Instruments
The Funds investment objectives not only permit the Fund to purchase investment securities, they
also allow the Fund to enter into various types of derivatives contracts, including, but not
limited to, futures contracts, forward foreign currency exchange contracts, credit default swaps,
interest rate swaps, total return 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. Central to those strategies are features
inherent to derivatives that make them more attractive for this purpose than equity and debt
securities: they require little or no initial cash investment, they can focus exposure on only
certain selected risk factors, and they may not require the ultimate receipt or delivery of the
underlying security (or securities) to the contract. This 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.
59 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
OPPENHEIMER GOLD & SPECIAL MINERALS FUND (CAYMAN) LTD.
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
5. Risk Exposures and the Use of Derivative Instruments Continued
Market Risk Factors. In accordance with its investment objectives, the Fund may use
derivatives to increase or decrease its exposure to one or more of the following market risk
factors:
Commodity Risk. Commodity risk relates to the change in value of commodities or commodity
indexes as they relate to increases or decreases in the commodities market.
Commodities are physical assets that have tangible properties. Examples of these types of assets
are crude oil, heating oil, metals, livestock, and agricultural products.
Credit Risk. Credit risk relates to the ability of the issuer to meet interest and principal
payments, or both, as they come due. In general, lower-grade, higher-yield bonds are subject to
credit risk to a greater extent than lower-yield, higher-quality bonds.
Equity Risk. Equity risk relates to the change in value of equity securities as they relate to
increases or decreases in the general market.
Foreign Exchange Rate Risk. Foreign exchange rate risk relates to the change in the U.S. dollar
value of a security held that is denominated in a foreign currency. The U.S. dollar value of a
foreign currency denominated security will decrease as the dollar appreciates against the currency,
while the U.S. dollar value will increase as the dollar depreciates against the currency.
Interest Rate Risk. Interest rate risk refers to the fluctuations in value of fixed-income
securities resulting from the inverse relationship between price and yield. For example, an
increase in general interest rates will tend to reduce the market value of already issued
fixed-income investments, and a decline in general interest rates will tend to increase their
value. In addition, debt securities with longer maturities, which tend to have higher yields, are
subject to potentially greater fluctuations in value from changes in interest rates than
obligations with shorter maturities.
Volatility Risk. Volatility risk refers to the magnitude of the movement, but not the direction of
the movement, in a financial instruments price over a defined time period. Large increases or
decreases in a financial instruments price over a relative time period typically indicate greater
volatility risk, while small increases or decreases in its price typically indicate lower
volatility risk.
The Funds actual exposures to these market risk factors during the period are discussed in further
detail, by derivative type, below.
Risks of Investing in Derivatives. The Funds use of derivatives can result in losses due to
unanticipated changes in the market risk factors and the overall market. 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.
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.
60 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
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 Funds performance.
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. Associated risks can be
different for each type of derivative and are discussed by each derivative type in the notes that
follow.
Counterparty Credit Risk. Certain derivative positions are subject to counterparty credit risk,
which is the risk that the counterparty will not fulfill its obligation to the Fund. The Funds
derivative counterparties are financial institutions who are subject to market conditions that may
weaken their financial position. The Fund intends to enter into financial transactions with
counterparties that the Manager believes to be creditworthy at the time of the transaction.
Credit Related Contingent Features. The Funds agreements with derivative counter-parties have
several credit related contingent features that if triggered would allow its derivatives
counterparties to close out and demand payment or additional collateral to cover their exposure
from the Fund. Credit related contingent features are established between the Fund and its
derivatives counterparties to reduce the risk that the Fund will not fulfill its payment
obligations to its counterparties. These triggering features include, but are not limited to, a
percentage decrease in the Funds net assets and or a percentage decrease in the Funds Net Asset
Value or NAV. The contingent features are established within the Funds International Swap and
Derivatives Association, Inc. master agreements which govern certain positions in swaps,
over-the-counter options and swaptions, and forward currency exchange contracts for each individual
counterparty.
Valuations of derivative instruments as of December 30, 2011 are as follows:
|
|
|
|
|
|
|
|
|
|
|
Liability Derivatives |
Derivatives Not |
|
Statement of Assets |
|
|
|
|
Accounted for as |
|
and Liabilities |
|
|
|
|
Hedging Instruments |
|
Location |
|
|
Value |
|
|
Equity contracts |
|
Appreciated options |
|
|
|
|
|
|
|
written, at value |
|
|
$ |
209,000 |
|
Equity contracts |
|
Depreciated options |
|
|
|
|
|
|
|
written, at value |
|
|
|
387,000 |
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
$ |
596,000 |
|
|
|
|
|
|
|
|
|
61 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
OPPENHEIMER GOLD & SPECIAL MINERALS FUND (CAYMAN) LTD.
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
5. Risk Exposures and the Use of Derivative Instruments Continued
The effect of derivative instruments on the Statement of Operations is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount of Realized Gain or (Loss) Recognized on Derivatives |
|
|
|
|
|
|
|
Closing and |
|
|
|
|
Derivatives Not |
|
Investments |
|
|
expiration of |
|
|
|
|
Accounted for as |
|
(including premiums |
|
|
option contracts |
|
|
|
|
Hedging Instruments |
|
on options exercised)* |
|
|
written |
|
|
Total |
|
|
Equity contracts |
|
$ |
512,935 |
|
|
$ |
697,308 |
|
|
$ |
1,210,243 |
|
|
|
|
* |
|
Includes purchased option contracts, purchased swaption contracts and written option contracts
exercised, if any. |
|
|
|
|
|
Amount of Change in Unrealized Gain or (Loss) Recognized on Derivatives |
|
Derivatives Not Accounted |
|
Option contracts |
|
for as Hedging Instruments |
|
written |
|
|
Equity contracts |
|
$ |
(128,614 |
) |
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 at a fixed price, upon exercise of the option.
Options are valued daily based upon the last sale price on the principal exchange on which the
option is traded. 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.
Options written, if any, are reported in a schedule following the Statement of Investments and as a
liability in the Statement of Assets and Liabilities. Securities held in collateralized accounts to
cover potential obligations with respect to outstanding written options are noted in the Statement
of Investments.
The risk in writing a call option is that the Fund gives up the opportunity for profit if the
market price of the security increases and the option is exercised. The risk in writing a put
option is that the Fund may incur a loss if the market price of the security decreases and the
option is exercised. The risk in buying an option is that the Fund pays a premium whether or not
the option is exercised. The Fund also has the additional risk that there may be an illiquid market
where the Fund is unable to close the contract.
The Fund has written put options on individual equity securities and/or equity indexes to increase
exposure to equity risk. A written put option becomes more valuable as the price of the underlying
financial instrument appreciates relative to the strike price.
The Fund has written call options on individual equity securities and/or equity indexes to decrease
exposure to equity risk. A written call option becomes more valuable as the price of the underlying
financial instrument depreciates relative to the strike price.
62 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
During the six months ended December 30, 2011, the Fund had an ending monthly average market value
of $13,000 and $234,714 on written call options and written put options, respectively.
Additional associated risks to the Fund include counterparty credit risk for over-the-counter
options and liquidity risk.
Written option activity for the six months ended December 30, 2011 was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Call Options |
|
|
Put Options |
|
|
|
Number of |
|
|
Amount of |
|
|
Number of |
|
|
Amount of |
|
|
|
Contracts |
|
|
Premiums |
|
|
Contracts |
|
|
Premiums |
|
|
Options outstanding as of
June 30, 2011 |
|
|
|
|
|
$ |
|
|
|
|
|
|
|
$ |
|
|
Options written |
|
|
4,000 |
|
|
|
745,375 |
|
|
|
4,000 |
|
|
|
980,321 |
|
Options closed or expired |
|
|
(4,000 |
) |
|
|
(745,375 |
) |
|
|
|
|
|
|
|
|
Options exercised |
|
|
|
|
|
|
|
|
|
|
(2,000 |
) |
|
|
(512,935 |
) |
|
|
|
Options outstanding as of
December 30, 2011 |
|
|
|
|
|
$ |
|
|
|
|
2,000 |
|
|
$ |
467,386 |
|
|
|
|
6. Pending Litigation
Since 2009, a number of class action, derivative and individual lawsuits have been pending in
federal and state courts against OppenheimerFunds, Inc., the Funds investment advisor (the
Manager), OppenheimerFunds Distributor, Inc., the Funds principal underwriter and distributor
(the Distributor), and certain funds (but not including the Fund) advised by the Manager and
distributed by the Distributor (the Defendant Funds). Several of these lawsuits also name as
defendants certain officers and current and former trustees of the respective Defendant Funds. The
lawsuits raise claims under federal securities laws and various states securities, consumer
protection and common law and allege, among other things, that the disclosure documents of the
respective Defendant Funds contained misrepresentations and omissions and that the respective
Defendant Funds investment policies were not followed. The plaintiffs in these actions seek
unspecified damages, equitable relief and awards of attorneys fees and litigation expenses. On
September 30, 2011, the U.S. District Court for the District of Colorado entered orders and final
judgments approving the settlement of certain putative class actions involving two Defendant Funds,
Oppenheimer Champion Income Fund and Oppenheimer Core Bond Fund. Those orders are not subject to
further appeal. These settlements do not resolve other outstanding lawsuits relating to Oppenheimer
Champion Income Fund and Oppenheimer Core Bond Fund, nor do the settlements affect certain other
putative class action lawsuits pending in federal court against the Manager, the Distributor, and
other Defendant Funds and their independent trustees.
In 2009, what are claimed to be derivative lawsuits were filed in New Mexico state court against
the Manager and a subsidiary (but not against the Fund) on behalf of the New Mexico Education Plan
Trust challenging a settlement reached in 2010 between the Manager, its subsidiary and the
Distributor and the board of the New Mexico section 529 college savings plan. These lawsuits allege
breach of contract, breach of fiduciary duty, negligence
63 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
OPPENHEIMER GOLD & SPECIAL MINERALS FUND (CAYMAN) LTD.
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
6. Pending Litigation Continued
and violation of state securities laws, and seek
compensatory damages, equitable relief and an award of attorneys fees and litigation expenses. On
September 9, 2011, the court denied plaintiffs request for a hearing to determine the fairness of
the settlement, finding that plaintiffs lacked standing to pursue derivative claims on behalf of
the Trust. On October 27, 2011, the parties to these actions filed a joint motion to dismiss the
lawsuits with prejudice, which the court granted on October 28, 2011.
Other class action and individual lawsuits have been filed since 2008 in various state and federal
courts against the Manager and certain of its affiliates by investors seeking to recover
investments they allegedly lost as a result of the Ponzi scheme run by Bernard L. Madoff and his
firm, Bernard L. Madoff Investment Securities, LLC (BLMIS). Plaintiffs in these suits allege that
they suffered losses as a result of their investments in several funds managed by an affiliate of
the Manager and assert a variety of claims, including breach of fiduciary duty, fraud, negligent
misrepresentation, unjust enrichment, and violation of federal and state securities laws and
regulations, among others. They seek unspecified damages, equitable relief and awards of attorneys
fees and litigation expenses. Neither the Distributor, nor any of the Oppenheimer mutual funds,
their independent trustees or directors are named as defendants in these lawsuits. None of the
Oppenheimer mutual funds invested in any funds or accounts managed by Madoff or BLMIS. On February
28, 2011, a stipulation of partial settlement of three groups of consolidated putative class action
lawsuits relating to these matters was filed in the U.S. District Court for the Southern District
of New York. On August 19, 2011, the court entered an order and final judgment approving the
settlement as fair, reasonable and adequate. In September 2011, certain parties filed notices of
appeal from the courts order approving the settlement. On July 29, 2011, a stipulation of
settlement between certain affiliates of the Manager and the Trustee appointed under the Securities
Investor Protection Act to liquidate BLMIS was filed in the U.S. Bankruptcy Court for the Southern
District of New York to resolve purported preference and fraudulent transfer claims by the Trustee.
On September 22, 2011, the court entered an order approving the settlement as fair, reasonable and
adequate. In October 2011, certain parties filed notices of appeal from the courts order approving
the settlement. The aforementioned settlements do not resolve other outstanding lawsuits against
the Manager and its affiliates relating to BLMIS.
On April 16, 2010, a lawsuit was filed in New York state court against the Manager, an affiliate of
the Manager and AAArdvark IV Funding Limited (AAArdvark IV), an entity advised by the Managers
affiliate, in connection with investments made by the plaintiffs in AAArdvark IV. Plaintiffs allege
breach of contract against the defendants and seek compensatory damages, costs and disbursements,
including attorney fees. On July 15, 2011, a lawsuit was filed in New York state court against the
Manager, an affiliate of the Manager and AAArdvark Funding Limited (AAArdvark I), an entity
advised by the Managers affiliate, in connection with investments made by the plaintiffs in
AAArdvark I. The complaint alleges breach of contract against the defendants and seeks compensatory
damages, costs and disbursements, including attorney fees. On November 9, 2011, a lawsuit was filed
in New York state court against the Manager, an affiliate of the Manager
64 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
and AAArdvark XS Funding Limited (AAArdvark XS), an entity advised by the Managers affiliate, in
connection with investments made by the plaintiffs in AAArdvark XS. The complaint alleges breach of
contract against the defendants and seeks compensatory damages, costs and disbursements, including
attorney fees.
The Manager believes the lawsuits and appeals described above are without legal merit and, with the
exception of actions it has settled, is defending against them vigorously. The Defendant Funds
Boards of Trustees have also engaged counsel to represent the Funds and the present and former
Independent Trustees named in those suits. While it is premature to render any opinion as to the
outcome in these lawsuits, or whether any costs that the Defendant Funds may bear in defending the
suits might not be reimbursed by insurance, the Manager believes that these suits should not impair
the ability of the Manager or the Distributor to perform their respective duties to the Fund, and
that the outcome of all of the suits together should not have any material effect on the operations
of any of the Oppenheimer mutual funds.
7. Subsequent Events Evaluation
The Fund has evaluated the need for disclosures and/or adjustments resulting from subsequent events
through February 21, 2012, the date the financial statements were available to be issued. This
evaluation determined that there are no subsequent events that necessitated disclosures and/or
adjustments.
65 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
PRIVACY POLICY NOTICE
As an Oppenheimer fund shareholder, you are entitled to know how we protect your personal
information and how we limit its disclosure.
Information Sources
We obtain nonpublic personal information about our shareholders from the following sources:
|
|
Applications or other forms |
|
|
|
When you create a user ID and password for online account access |
|
|
|
When you enroll in eDocs Direct, our electronic document delivery service |
|
|
|
Your transactions with us, our affiliates or others |
|
|
|
A software program on our website, often referred to as a cookie, which indicates
which parts of our site youve visited |
|
|
|
When you set up challenge questions to reset your password online |
If you visit oppenheimerfunds.com and do not log on to the secure account information areas, we do
not obtain any personal information about you. When you do log on to a secure area, we do obtain
your user ID and password to identify you. We also use this information to provide you with
products and services you have requested, to inform you about products and services that you may be
interested in and assist you in other ways.
We do not collect personal information through our website unless you willingly provide it to us,
either directly by email or in those areas of the website that request information. In order to
update your personal information (including your mailing address, email address and phone number)
you must first log on and visit your user profile.
If you have set your browser to warn you before accepting cookies, you will receive the warning
message with each cookie. You can refuse cookies by turning them off in your browser. However,
doing so may limit your access to certain sections of our website.
We use cookies to help us improve and manage our website. For example, cookies help us recognize
new versus repeat visitors to the site, track the pages visited, and enable some special features
on the website. This data helps us provide a better service for our website visitors.
Protection of Information
We do not disclose any non-public personal information (such as names on a customer list) about
current or former customers to anyone, except as permitted by law.
Disclosure of Information
We send your financial advisor (as designated by you) copies of confirmations, account statements
and other documents reporting activity in your fund accounts. We may also use details about you and
your investments to help us, our financial service affiliates, or firms that jointly market their
financial products and services with ours, to better serve your investment needs or suggest
financial services or educational material that may be of interest to you. If this requires us to
provide you with an opportunity to opt in or opt out of such information sharing with a firm
not affiliated with us, you will receive notification on how to do so, before any such sharing
takes place.
Right of Refusal
We will not disclose your personal information to unaffiliated third parties (except as permitted
by law), unless we first offer you a reasonable opportunity to refuse or opt out of such
disclosure.
66 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
Internet Security and Encryption
In general, the email services provided by our website are encrypted and provide a secure and
private means of communication with us. To protect your own privacy, confidential and/or personal
information should only be communicated via email when you are advised that you are using a secure
website.
As a security measure, we do not include personal or account information in non-secure emails, and
we advise you not to send such information to us in non-secure emails. Instead, you may take
advantage of the secure features of our website to encrypt your email correspondence. To do this,
you will need to use a browser that supports Secure Sockets Layer (SSL) protocol.
We do not
guarantee or warrant that any part of our website, including files available for download, are free
of viruses or other harmful code. It is your responsibility to take appropriate precautions, such
as use of an anti-virus software package, to protect your computer hardware and software.
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All transactions, including redemptions, exchanges and purchases, are secured by SSL
and 128-bit encryption. SSL is used to establish a secure connection between your PC and
OppenheimerFunds server. It transmits information in an encrypted and scrambled format. |
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Encryption is achieved through an electronic scrambling technology that uses a key to
code and then decode the data. Encryption acts like the cable converter box you may have on your
television set. It scrambles data with a secret code so that no one can make sense of it while it
is being transmitted. When the data reaches its destination, the same software unscrambles the
data. |
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You can exit the secure area by either closing your browser, or for added security, you
can use the Log Out button before you close your browser. |
Other Security Measures
We maintain physical, electronic and procedural safeguards to protect your personal account
information. Our employees and agents have access to that information only so that they may offer
you products or provide services, for example, when responding to your account questions.
How You Can Help
You can also do your part to keep your account information private and to prevent unauthorized
transactions. If you obtain a user ID and password for your account, do not allow it to be used by
anyone else. Also, take special precautions when accessing your account on a computer used by
others.
Who We Are
This joint notice describes the privacy policies of the Oppenheimer funds, OppenheimerFunds
Distributor, Inc., the trustee of OppenheimerFunds Individual Retirement Accounts (IRAs) and the
custodian of the OppenheimerFunds 403(b)(7) tax sheltered custodial accounts. It applies to all
Oppenheimer fund accounts you presently have, or may open in the future, using your Social Security
numberwhether or not you remain a shareholder of our funds. This notice was last updated January
16, 2004. In the event it is updated or changed, we will post an updated notice on our website at
oppenheimerfunds.com. If you have any questions about these privacy policies, write to us at P.O.
Box 5270, Denver, CO 80217-5270, email us by clicking on the Contact Us section of our website at
oppenheimerfunds.com or call us at 1.800.CALL OPP (225.5677).
67 | OPPENHEIMER GOLD & SPECIAL MINERALS FUND
Item 2. Code of Ethics.
Not applicable to semiannual reports.
Item 3. Audit Committee Financial Expert.
Not applicable to semiannual reports.
Item 4. Principal Accountant Fees and Services.
Not applicable to semiannual reports.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. Schedule of Investments.
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 Funds Governance Committee Provisions with Respect to Nominations of Directors/Trustees to the
Respective Boards
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The Funds Governance Committee (the Committee) will evaluate potential Board candidates to
assess their qualifications. The Committee shall have the authority, upon approval of the
Board, to retain an executive search firm to assist in this effort. The Committee may
consider recommendations by business and personal contacts of current Board members and by
executive search firms which the Committee may engage from time to time and may also consider
shareholder recommendations. The Committee may consider the advice and recommendation of the
Funds investment manager and its affiliates in making the selection. |
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The Committee shall screen candidates for Board membership. The Committee has not
established specific qualifications that it believes must be met by a trustee nominee. In
evaluating trustee nominees, the Committee considers, among other things, an individuals
background, skills, and experience; whether the individual is an interested person as
defined in the Investment Company Act of 1940; and whether the individual would be deemed an
audit committee financial expert within the meaning of applicable SEC rules. The Committee
also considers whether the individuals background, skills, and experience will complement the
background, skills, and experience of other nominees and will contribute to the Board. There
are no differences in the manner in which the Committee evaluates nominees for trustees based
on whether the nominee is recommended by a shareholder. |
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The Committee may consider nominations from shareholders for the Board at such times as the
Committee meets to consider new nominees for the Board. The Committee shall have the sole
discretion to determine the candidates to present to the Board and, in such cases where
required, to shareholders. Recommendations for trustee nominees should, at a minimum, be
accompanied by the following: |
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the name, address, and business, educational, and/or other pertinent background of the
person being recommended; |
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a statement concerning whether the person is an interested person as defined in the
Investment Company Act of 1940; |
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any other information that the Funds would be required to include in a proxy statement
concerning the person if he or she was nominated; and |
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the name and address of the person submitting the recommendation and, if that person is
a shareholder, the period for which that person held Fund shares. |
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The recommendation also can include any additional information which the person submitting it
believes would assist the Committee in evaluating the recommendation. |
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Shareholders should note that a person who owns securities issued by Massachusetts Mutual
Life Insurance Company (the parent company of the Funds investment adviser) would be deemed
an interested person under the Investment Company Act of 1940. In addition, certain other
relationships with Massachusetts Mutual Life Insurance Company or its |
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subsidiaries, with registered broker-dealers, or with the Funds outside legal counsel may cause
a person to be deemed an interested person. |
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Before the Committee decides to nominate an individual as a trustee, Committee members and
other directors customarily interview the individual in person. In addition, the individual
customarily is asked to complete a detailed questionnaire which is designed to elicit
information which must be disclosed under SEC and stock exchange rules and to determine
whether the individual is subject to any statutory disqualification from serving as a trustee
of a registered investment company. |
Item 11. Controls and Procedures.
Based on their evaluation of the registrants 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 12/30/2011, the
registrants principal executive officer and principal financial officer found the registrants
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 registrants 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 registrants internal controls over financial reporting that
occurred during the registrants second fiscal quarter of the period covered by this report that
have materially affected, or are reasonably likely to materially affect, the registrants 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 Gold & Special Minerals Fund
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By: |
/s/ William F. Glavin, Jr.
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William F. Glavin, Jr. |
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Principal Executive Officer |
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Date: 2/9/2012
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.
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By: |
/s/ William F. Glavin, Jr.
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William F. Glavin, Jr. |
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Principal Executive Officer |
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Date: 2/9/2012
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By: |
/s/ Brian W. Wixted
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Brian W. Wixted |
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Principal Financial Officer |
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Date: 2/9/2012