-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, I9AtkfCQvw6pgmpKaO67iUXW3Hht+8p7iSylF9/U99AgTlr1zRhis+owJ2xdQWNg ASYIX95mNd/insQeoczZJQ== 0000935069-04-000790.txt : 20040528 0000935069-04-000790.hdr.sgml : 20040528 20040528133057 ACCESSION NUMBER: 0000935069-04-000790 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20040331 FILED AS OF DATE: 20040528 EFFECTIVENESS DATE: 20040528 FILER: COMPANY DATA: COMPANY CONFORMED NAME: OPPENHEIMER INTERNATIONAL BOND FUND CENTRAL INDEX KEY: 0000939800 IRS NUMBER: 841308320 STATE OF INCORPORATION: MA FISCAL YEAR END: 0931 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-07255 FILM NUMBER: 04837733 BUSINESS ADDRESS: STREET 1: 6803 SOUTH TUCSON WAY CITY: CENTENNIAL STATE: CO ZIP: 80112-3924 BUSINESS PHONE: 3037683200 MAIL ADDRESS: STREET 1: 6803 SOUTH TUCSON WAY CITY: CENTENNIAL STATE: CO ZIP: 80112-3924 N-CSRS 1 rs0880_10905.txt RS0880_10905.TXT 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 811-07255 Oppenheimer International Bond Fund (Exact name of registrant as specified in charter) 6803 South Tucson Way, Centennial, Colorado 80112-3924 (Address of principal executive offices) (Zip code) Robert G. Zack, Esq. OppenheimerFunds, Inc. Two World Financial Center, New York, New York 10281-1008 - -------------------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: (303) 768-3200 -------------- Date of fiscal year end: September 30 Date of reporting period: October 1, 2003 - March 31, 2004 ITEM 1. REPORTS TO STOCKHOLDERS. STATEMENT OF INVESTMENTS MARCH 31, 2004 / UNAUDITED - --------------------------------------------------------------------------------
PRINCIPAL MARKET VALUE AMOUNT SEE NOTE 1 - -------------------------------------------------------------------------------------------------- U.S. GOVERNMENT OBLIGATIONS--0.4% - -------------------------------------------------------------------------------------------------- Federal National Mortgage Assn. Sr. Unsec. Nts., 2.125%, 10/9/07 [JPY] (Cost $4,973,237) 510,000,000 $5,196,328 - -------------------------------------------------------------------------------------------------- FOREIGN GOVERNMENT OBLIGATIONS--61.1% - -------------------------------------------------------------------------------------------------- ARGENTINA--2.1% Argentina (Republic of) Bonds: 1.234%, 8/3/12 1 18,905,000 12,582,658 1.278%, 5/3/05 1,2 693,000 670,478 Series PRE8, 2%, 1/3/10 2,3,4 [ARP] 15,670,000 6,348,993 Series PR12, 2%, 1/3/16 2,3,4 [ARP] 18,075,972 5,993,653 - -------------------------------------------------------------------------------------------------- Argentina (Republic of) Disc. Bonds, 2.345%, 3/31/23 1,2 660,000 339,900 - -------------------------------------------------------------------------------------------------- Argentina (Republic of) Letras del Banco Central de la Republica Treasury Bills, 14.75%, 10/8/04 5 [ARP] 412,000 141,195 - -------------------------------------------------------------------------------------------------- Buenos Aires (Province of) Bonds, Bonos de Consolidacion de Deudas, Series PBA1, 3.257%, 4/1/07 1,2,4 [ARP] 1,918,540 773,198 ---------------- 26,850,075 - -------------------------------------------------------------------------------------------------- AUSTRIA--3.2% Austria (Republic of) Nts.: 3.40%, 10/20/04 [EUR] 1,580,000 1,957,370 3.80%, 10/20/13 [EUR] 17,355,000 21,054,243 5.50%, 10/20/07 [EUR] 2,440,000 3,277,602 Series 98-1, 5%, 1/15/08 [EUR] 5,200,000 6,893,993 - -------------------------------------------------------------------------------------------------- Austria (Republic of) Sr. Unsec. Unsub. Nts., Series 1, 5%, 7/15/12 [EUR] 6,525,000 8,700,110 ---------------- 41,883,318 - -------------------------------------------------------------------------------------------------- BELGIUM--2.5% Belgium (Kingdom of) Bonds: 5%, 9/28/11 [EUR] 3,545,000 4,726,312 5.50%, 3/28/28 [EUR] 5,400,000 7,316,255 Series 19, 6.50%, 3/31/05 [EUR] 7,460,000 9,578,301 Series 32, 3.75%, 3/28/09 [EUR] 3,300,000 4,164,864 Series 35, 5.75%, 9/28/10 [EUR] 5,000,000 6,940,212 ---------------- 32,725,944 - -------------------------------------------------------------------------------------------------- BRAZIL--3.3% Brazil (Federal Republic of) Bonds, Series 15 yr., 2.063%, 4/15/09 1 19,412 18,296 - -------------------------------------------------------------------------------------------------- Brazil (Federal Republic of) Debt Capitalization Bonds, Series 20 yr., 8%, 4/15/14 38,506,191 37,736,067 - -------------------------------------------------------------------------------------------------- Brazil (Federal Republic of) Unsec. Bonds, 4.75% 4/10/07 [JPY] 500,000,000 4,740,232 - -------------------------------------------------------------------------------------------------- Brazil (Federal Republic of) Unsec. Unsub. Bonds: 11%, 8/17/40 200 215 Cl. B, 8.875%, 4/15/24 81,000 74,601 ---------------- 42,569,411
9 | OPPENHEIMER INTERNATIONAL BOND FUND STATEMENT OF INVESTMENTS UNAUDITED / CONTINUED - --------------------------------------------------------------------------------
PRINCIPAL MARKET VALUE AMOUNT SEE NOTE 1 - -------------------------------------------------------------------------------------------------- COLOMBIA--0.7% Colombia (Republic of) Unsec. Unsub. Bonds, 5.50%, 4/27/05 [JPY] 960,000,000 $ 9,485,116 - -------------------------------------------------------------------------------------------------- DENMARK--0.7% Denmark (Kingdom of) Nts., 4%, 8/15/08 [DKK] 53,605,000 9,171,226 - -------------------------------------------------------------------------------------------------- FINLAND--3.8% Finland (Republic of) Bonds, 5.375%, 7/4/13 [EUR] 20,985,000 28,713,209 - -------------------------------------------------------------------------------------------------- Finland (Republic of) Sr. Unsec. Unsub. Bonds: 2.75%, 7/4/06 [EUR] 3,470,000 4,309,398 5%, 7/4/07 [EUR] 12,415,000 16,380,759 ---------------- 49,403,366 - -------------------------------------------------------------------------------------------------- FRANCE--3.5% France (Government of) Obligations Assimilables du Tresor Bonds: 4%, 10/25/13 [EUR] 13,960,000 17,177,743 5.50%, 10/25/07 [EUR] 7,835,000 10,515,208 5.50%, 10/25/10 [EUR] 3,080,000 4,222,559 5.75%, 10/25/32 [EUR] 5,300,000 7,502,324 - -------------------------------------------------------------------------------------------------- France (Government of) Treasury Nts., 3.50%, 7/12/04 [EUR] 5,180,000 6,393,392 ---------------- 45,811,226 - -------------------------------------------------------------------------------------------------- GERMANY--3.1% Germany (Republic of) Bonds: 2%, 6/17/05 [EUR] 7,865,000 9,673,512 3%, 12/10/04 [EUR] 2,385,000 2,953,348 5.375%, 1/4/10 [EUR] 7,205,000 9,812,250 Series 01, 5%, 7/4/11 [EUR] 9,135,000 12,215,010 Series 02, 5%, 7/4/12 [EUR] 4,200,000 5,602,677 ---------------- 40,256,797 - -------------------------------------------------------------------------------------------------- GREAT BRITAIN--1.3% United Kingdom Treasury Nts., 7.50%, 12/7/06 6 [GBP] 8,655,000 17,091,634 - -------------------------------------------------------------------------------------------------- GREECE--3.3% Greece (Republic of) Bonds: 5.35%, 5/18/11 [EUR] 9,060,000 12,271,431 6.50%, 1/11/14 [EUR] 14,195,000 20,788,117 - -------------------------------------------------------------------------------------------------- Greece (Republic of) Sr. Unsub. Bonds, 4.65%, 4/19/07 [EUR] 6,980,000 9,091,912 ---------------- 42,151,460 - -------------------------------------------------------------------------------------------------- GUATEMALA--0.2% Guatemala (Republic of) Nts.: 10.25%, 11/8/11 1,940,000 2,347,400 10.25%, 11/8/11 7 160,000 193,600 ---------------- 2,541,000 - -------------------------------------------------------------------------------------------------- IRELAND--3.3% Ireland (Republic of) Treasury Bonds, 3.25%, 4/18/09 [EUR] 34,010,000 41,953,702
10 | OPPENHEIMER INTERNATIONAL BOND FUND
PRINCIPAL MARKET VALUE AMOUNT SEE NOTE 1 - -------------------------------------------------------------------------------------------------- ITALY--3.3% Italy (Republic of) Treasury Bonds, Buoni del Tesoro Poliennali: 4%, 3/1/05 [EUR] 1,135,000 $ 1,421,163 4.25%, 2/1/19 [EUR] 13,785,000 16,499,934 4.50%, 7/1/04 [EUR] 5,870,000 7,258,366 4.50%, 3/1/07 [EUR] 8,015,000 10,392,347 5%, 10/15/07 [EUR] 5,125,000 6,779,287 ---------------- 42,351,097 - -------------------------------------------------------------------------------------------------- IVORY COAST--0.0% Ivory Coast (Government of) Past Due Interest Bonds, 1.90%, 3/29/18 2,3,4 [FRF] 16,007,500 569,794 - -------------------------------------------------------------------------------------------------- JAPAN--4.2% Japan (Government of) Bonds, 5 yr., Series 14, 0.40%, 6/20/06 [JPY] 5,618,800,000 54,294,453 - -------------------------------------------------------------------------------------------------- MEXICO--0.2% Mexican Williams Sr. Nts., 1.278%, 11/15/08 1,4 500,000 522,500 - -------------------------------------------------------------------------------------------------- United Mexican States Bonds, 6.75%, 6/6/06 [JPY] 120,000,000 1,297,410 - -------------------------------------------------------------------------------------------------- United Mexican States Unsec. Unsub. Nts., Series 6 BR, 6.75%, 6/6/06 [JPY] 85,000,000 918,998 ---------------- 2,738,908 - -------------------------------------------------------------------------------------------------- NIGERIA--0.2% Central Bank of Nigeria Gtd. Bonds, Series WW, 6.25%, 11/15/20 1,375,000 1,289,063 - -------------------------------------------------------------------------------------------------- Nigeria (Federal Republic of) Promissory Nts., Series RC, 5.092%, 1/5/10 705,515 649,672 ---------------- 1,938,735 - -------------------------------------------------------------------------------------------------- PERU--0.3% Peru (Republic of) Sr. Nts., 4.53%, 2/28/16 5 6,444,281 3,702,240 - -------------------------------------------------------------------------------------------------- POLAND--1.9% Poland (Republic of) Bonds, Series 0K0805, 5.15%, 8/12/05 5 [PLZ] 102,160,000 24,399,299 - -------------------------------------------------------------------------------------------------- PORTUGAL--3.1% Portugal (Republic of) Obrig Do Tes Medio Prazo Nts., 4.875%, 8/17/07 [EUR] 945,000 1,242,503 - -------------------------------------------------------------------------------------------------- Portugal (Republic of) Obrig Do Tes Medio Prazo Unsec. Unsub. Bonds, 5.85%, 5/20/10 [EUR] 28,140,000 39,186,251 ---------------- 40,428,754 - -------------------------------------------------------------------------------------------------- RUSSIA--0.9% Ministry Finance of Russia Debs.: Series V, 3%, 5/14/08 3,420,000 3,178,463 Series VI, 3%, 5/14/06 3,590,000 3,546,238 - -------------------------------------------------------------------------------------------------- Russian Federation Unsec. Unsub. Nts., 10%, 6/26/07 3,605,000 4,280,938 ---------------- 11,005,639 - -------------------------------------------------------------------------------------------------- SPAIN--2.8% Spain (Kingdom of) Bonds, Bonos y Obligacion del Estado: 4.25%, 10/31/07 [EUR] 8,945,000 11,557,469 4.80%, 10/31/06 [EUR] 5,500,000 7,164,215 5.75%, 7/30/32 [EUR] 5,200,000 7,342,846
11 | OPPENHEIMER INTERNATIONAL BOND FUND STATEMENT OF INVESTMENTS UNAUDITED / CONTINUED - --------------------------------------------------------------------------------
PRINCIPAL MARKET VALUE AMOUNT SEE NOTE 1 - -------------------------------------------------------------------------------------------------- SPAIN Continued Spain (Kingdom of) Treasury Bills, 1.96%, 4/23/04 5 [EUR] 8,300,000 $ 10,189,158 ---------------- 36,253,688 - -------------------------------------------------------------------------------------------------- SWEDEN--8.0% Sweden (Kingdom of) Bonds, Series 1043, 5%, 1/28/09 [SEK] 557,725,000 79,133,008 - -------------------------------------------------------------------------------------------------- Sweden (Kingdom of) Debs., Series 1040, 6.50%, 5/5/08 [SEK] 160,975,000 23,988,398 ---------------- 103,121,406 - -------------------------------------------------------------------------------------------------- THE NETHERLANDS--3.9% Netherlands (Kingdom of the) Bonds: 3.75%, 7/15/09 [EUR] 8,000,000 10,100,573 4.25%, 7/15/13 [EUR] 9,660,000 12,175,371 5%, 7/15/11 8 [EUR] 15,405,000 20,553,605 5.50%, 1/15/28 [EUR] 5,300,000 7,219,848 ---------------- 50,049,397 - -------------------------------------------------------------------------------------------------- TURKEY--0.2% Turkey (Republic of) Nts., 7.20%, 2/16/06 [JPY] 250,000,000 2,607,296 - -------------------------------------------------------------------------------------------------- VENEZUELA--1.1% Venezuela (Republic of) Collateralized Par Bonds, Series W-B, 6.75%, 3/31/20 159,000 148,665 - -------------------------------------------------------------------------------------------------- Venezuela (Republic of) Debs., Series DL, 2.125%, 12/18/07 1 11,824,378 11,188,817 - -------------------------------------------------------------------------------------------------- Venezuela (Republic of) Disc. Bonds, Series W-A, 2.188%, 3/31/20 1 3,075,000 2,598,375 ---------------- 13,935,857 ---------------- Total Foreign Government Obligations (Cost $764,133,029) 789,290,838 - -------------------------------------------------------------------------------------------------- LOAN PARTICIPATIONS--1.2% - -------------------------------------------------------------------------------------------------- Algeria (Republic of) Loan Participation Nts.: 0.938%, 3/4/10 1,4 [JPY] 230,311,880 2,097,568 2%, 9/4/06 1,4 985,714 975,857 2%, 3/4/10 1,4 880,750 866,438 - -------------------------------------------------------------------------------------------------- Deutsche Bank AG, OAO Gazprom Loan Participation Nts., 6.50%, 8/4/05 4 3,005,000 3,013,715 - -------------------------------------------------------------------------------------------------- Deutsche Bank AG, Indonesia (Republic of) Rupiah Loan Participation Nts.: 2.636%, 5/21/04 1,4 5,390,000 5,201,350 2.636%, 3/25/05 1,4 3,155,000 2,957,813 ---------------- Total Loan Participations (Cost $14,411,260) 15,112,741 - -------------------------------------------------------------------------------------------------- CORPORATE BONDS AND NOTES--8.4% - -------------------------------------------------------------------------------------------------- Capital Gaming International, Inc., 11.50% Promissory Nts., 8/1/1995 2,3,4 2,000 -- - -------------------------------------------------------------------------------------------------- European Investment Bank Nts., 2.125%, 9/20/07 [JPY] 136,000,000 1,390,917 - -------------------------------------------------------------------------------------------------- General Electric Capital Corp., 1.40% Sr. Unsec. Unsub. Nts., 11/2/06 [JPY] 4,101,000,000 40,513,315 - -------------------------------------------------------------------------------------------------- Inter-American Development Bank, 1.90% Unsec. Bonds, 7/8/09 [JPY] 113,000,000 1,156,068 - -------------------------------------------------------------------------------------------------- International Bank for Reconstruction and Development (The), 2% Nts., 2/18/08 [JPY] 121,000,000 1,236,140
12 | OPPENHEIMER INTERNATIONAL BOND FUND
PRINCIPAL MARKET VALUE AMOUNT SEE NOTE 1 - -------------------------------------------------------------------------------------------------- CORPORATE BONDS AND NOTES Continued - -------------------------------------------------------------------------------------------------- Japan (Government of) Unsec. Unsub. Nts., 2.875%, 7/28/05 [JPY] 3,320,000,000 $ 33,118,145 - -------------------------------------------------------------------------------------------------- KfW International Finance, Inc., 2.05% Unsec. Unsub. Nts., 9/21/09 [JPY] 104,000,000 1,071,789 - -------------------------------------------------------------------------------------------------- Ongko International Finance Co. BV, 10.50% Sec. Nts., 3/29/04 2,3,4 550,000 2,750 - -------------------------------------------------------------------------------------------------- Petroleos Mexicanos, 7.375% Unsec. Nts., 8/13/07 [ITL] 14,895,000,000 10,429,536 - -------------------------------------------------------------------------------------------------- Pfizer, Inc., 0.80% Unsec. Nts., Series INTL, 3/18/08 [JPY] 1,980,000,000 19,207,151 ---------------- Total Corporate Bonds and Notes (Cost $104,283,493) 108,125,811 SHARES - -------------------------------------------------------------------------------------------------- COMMON STOCKS--3.5% - -------------------------------------------------------------------------------------------------- Banco Bradesco SA, Sponsored ADR 105,000 5,055,750 - -------------------------------------------------------------------------------------------------- Bank Pekao SA, GDR 3 84,110 2,826,096 - -------------------------------------------------------------------------------------------------- Brasil Telecom Participacoes SA, ADR 17,720 605,138 - -------------------------------------------------------------------------------------------------- Cesky Telecom AS, GDR 150,393 1,915,300 - -------------------------------------------------------------------------------------------------- Companhia de Bebidas das Americas, ADR 89,140 1,782,800 - -------------------------------------------------------------------------------------------------- Gedeon Richter Rt, Sponsored GDR 3 8,951 1,021,667 - -------------------------------------------------------------------------------------------------- iShares MSCI Brazil Index Fund 318,500 5,350,800 - -------------------------------------------------------------------------------------------------- iShares MSCI Hong Kong Index Fund 225 2,385 - -------------------------------------------------------------------------------------------------- KGHM Polska Miedz SA, GDR 3 57,244 947,388 - -------------------------------------------------------------------------------------------------- Komercni Banka AS, GDR 3 87,544 3,498,258 - -------------------------------------------------------------------------------------------------- Magyar Tavkozlesi Rt, Sponsored ADR 3 66,191 1,513,788 - -------------------------------------------------------------------------------------------------- MOL Magyar Olaj-es Gazipari Rt, Sponsored GDR 3 38,096 1,333,360 - -------------------------------------------------------------------------------------------------- OTP Bank Rt, GDR 3 76,029 2,850,327 - -------------------------------------------------------------------------------------------------- Petroleo Brasileiro SA, ADR 167,000 5,594,500 - -------------------------------------------------------------------------------------------------- Polski Koncern Naftowy Orlen SA, GDR 3 181,144 2,644,702 - -------------------------------------------------------------------------------------------------- Telekomunikacja Polska SA, GDR 3 632,358 2,548,403 - -------------------------------------------------------------------------------------------------- Telesp Celular Participacoes SA, ADR 3 678,000 6,190,140 ---------------- Total Common Stocks (Cost $41,305,541) 45,680,802 UNITS - -------------------------------------------------------------------------------------------------- RIGHTS, WARRANTS AND CERTIFICATES--4.9% - -------------------------------------------------------------------------------------------------- Chesapeake Energy Corp. Wts., Exp. 9/1/04 3 66 5 - -------------------------------------------------------------------------------------------------- ICG Communications, Inc. Wts., Exp. 9/15/05 3,4 495 5 - -------------------------------------------------------------------------------------------------- Loral Space & Communications Ltd. Wts., Exp. 1/15/07 3,4 50 1 - -------------------------------------------------------------------------------------------------- Morgan Stanley Capital I, Inc. All Country Asia Free (except for Japan) Wts., Exp. 3/4/05 3 427,760 6,755,058 - -------------------------------------------------------------------------------------------------- Morgan Stanley Capital I, Inc. Basket of Countries Wts.: Exp. 11/3/05 3 2,035 21,466,198 Exp. 3/4/05 3 338,332 4,972,770 - -------------------------------------------------------------------------------------------------- Morgan Stanley Capital III, Inc. All Country Asia Free (except for Japan) Wts., Exp. 3/4/05 3 827,508 10,696,948
13 | OPPENHEIMER INTERNATIONAL BOND FUND STATEMENT OF INVESTMENTS UNAUDITED / CONTINUED - --------------------------------------------------------------------------------
MARKET VALUE UNITS SEE NOTE 1 - -------------------------------------------------------------------------------------------------- RIGHTS, WARRANTS AND CERTIFICATES Continued - -------------------------------------------------------------------------------------------------- Morgan Stanley Capital IV, Inc. Basket of Countries Wts., Exp. 11/17/05 3 1,823 $ 18,914,469 - -------------------------------------------------------------------------------------------------- Protection One, Inc. Wts., Exp. 6/30/05 3,4 640 -- - -------------------------------------------------------------------------------------------------- Venezuela (Republic of) Oil Linked Payment Obligation Wts., Exp. 4/15/20 3,4 500 -- ---------------- Total Rights, Warrants and Certificates (Cost $53,838,613) 62,805,454 PRINCIPAL AMOUNT - -------------------------------------------------------------------------------------------------- STRUCTURED NOTES--11.2% - -------------------------------------------------------------------------------------------------- Citigroup Global Markets Holdings, Inc.: Argentine Peso Unsec. Linked Nts., 7/6/04 $ 1,165,000 1,254,589 Brazilian Real Linked Unsec. Nts., 1.12%, 2/2/05 9,500,000 9,690,950 Indonesia (Republic of) Recapitalization Credit Linked Unsec. Nts., 13.15%, 3/17/10 9,523,810 10,040,439 OAO Gazprom Russia Local Market Unsec. Credit Linked Nts., 15.208%, 11/8/05 1 4,406,270 5,355,059 Peruvian Sol Unsec. Linked Nts., 0.77%, 7/14/04 [PEN] 17,413,500 4,987,508 - -------------------------------------------------------------------------------------------------- Citigroup Global Markets Holdings, Inc., Colombia (Republic of) Unsec. Credit Linked Nts.: 15%, 3/15/07 [COP] 22,700,000,000 9,396,431 15%, 3/15/07 [COP] 22,385,000,000 9,266,040 15%, 4/27/12 [COP] 21,392,500,000 9,124,850 - -------------------------------------------------------------------------------------------------- Credit Suisse First Boston Corp. (Nassau Branch), U.S. Dollar/Philippine Peso Linked Nts., 12.50%, 3/5/12 1 [PHP] 119,085,000 2,083,431 - -------------------------------------------------------------------------------------------------- Credit Suisse First Boston International, U.S. Dollar/ South African Rand Linked Nts., Series FBi 43, 1.10%, 5/23/22 1 2,100,000 2,030,070 - -------------------------------------------------------------------------------------------------- Deutsche Bank AG: Basket of Emerging Market Currencies Linked Nts., 0.75%, 4/26/04 12,990,000 13,274,481 Russian Federation Linked Nts., 15%, 3/11/05 [RUR] 141,112,000 5,414,349 Turkey (Republic of) Treasury Bills Linked Nts., 23.72%, 4/27/05 21,176,655 17,143,956 - -------------------------------------------------------------------------------------------------- Deutsche Bank AG, Indonesia (Republic of) Recapitalization Linked Nts.: 13.15%, 3/22/10 6,255,030 6,629,946 13.15%, 9/15/10 4,140,000 4,361,209 14.275%, 12/22/13 4,715,030 5,364,398 - -------------------------------------------------------------------------------------------------- Deutsche Bank AG, Venezuela (Republic of) Credit Linked Nts.: 7.32%, 12/20/06 1 4,715,000 4,780,539 8.15%, 9/20/06 1 2,180,000 2,263,494 11.63%, 6/15/04 1 2,800,000 2,845,080 - -------------------------------------------------------------------------------------------------- JPMorgan Chase Bank: EMBI Plus Turkey (Republic of) Linked Certificate of Deposit, 1.50%, 4/22/04 2,428,000 1,972,702 Polish Zloty/Euro Linked Certificate of Deposit, 0.91%, 4/7/04 2,610,000 2,549,075 Venezuela (Republic of) Credit Linked Default Nts., 7.86%, 9/20/05 1 2,410,000 2,482,059 - -------------------------------------------------------------------------------------------------- JPMorgan Chase Bank, Venezuela (Republic of) Credit Linked Certificate of Deposit: 7.81%, 9/20/05 1 2,410,000 2,475,552 7.96%, 9/20/05 1 2,410,000 2,477,721
14 | OPPENHEIMER INTERNATIONAL BOND FUND
PRINCIPAL MARKET VALUE AMOUNT SEE NOTE 1 - -------------------------------------------------------------------------------------------------- STRUCTURED NOTES Continued - -------------------------------------------------------------------------------------------------- Lehman Brothers International, Turkey (Republic of) Treasury Bills Linked Nts., 24.43%, 1/26/05 $ 9,368,029 $ 8,055,564 ---------------- Total Structured Notes (Cost $141,655,854) 145,319,492 DATE STRIKE CONTRACTS - -------------------------------------------------------------------------------------------------- OPTIONS PURCHASED--0.3% - -------------------------------------------------------------------------------------------------- Euro Call 3,4 6/28/04 1.24EUR 112,000,000 2,467,136 - -------------------------------------------------------------------------------------------------- Japanese Yen Call 3,4 4/22/04 102.92JPY 15,040,000,000 481,280 Japanese Yen Call 3,4 5/11/04 102JPY 16,700,000,000 1,169,000 ---------------- Total Options Purchased (Cost $4,851,289) 4,117,416 PRINCIPAL AMOUNT - -------------------------------------------------------------------------------------------------- JOINT REPURCHASE AGREEMENTS--5.4% - -------------------------------------------------------------------------------------------------- Undivided interest of 4.56% in joint repurchase agreement (Principal Amount/Market Value $1,535,928,000, with a maturity value of $1,535,971,945) with PaineWebber, Inc., 1.03%, dated 3/31/04, to be repurchased at $70,049,004 on 4/1/04, collateralized by Federal National Mortgage Assn., 4.50%, 10/1/33--3/1/34, with a value of $1,568,601,295 (Cost $70,047,000) $70,047,000 70,047,000 - -------------------------------------------------------------------------------------------------- TOTAL INVESTMENTS, AT VALUE (COST $1,199,499,316) 96.4% 1,245,695,882 - -------------------------------------------------------------------------------------------------- OTHER ASSETS NET OF LIABILITIES 3.6 46,891,368 ----------------------------------- NET ASSETS 100.0% $1,292,587,250 ===================================
15 | OPPENHEIMER INTERNATIONAL BOND FUND STATEMENT OF INVESTMENTS UNAUDITED / CONTINUED - -------------------------------------------------------------------------------- FOOTNOTES TO STATEMENT OF INVESTMENTS Principal amount, strike, contracts and notional amount are reported in U.S. Dollars, except for those denoted in the following currencies: ARP Argentine Peso AUD Australian Dollar BRR Brazilian Real CAD Canadian Dollar CHF Swiss Franc COP Colombian Peso DKK Danish Krone EUR Euro FRF French Franc GBP British Pound Sterling HUF Hungary Forints IDR Indonesia Rupiah INR Indian Rupee ITL Italian Lira JPY Japanese Yen KRW South Korean Won NZD New Zealand Dollar PEN Peruvian New Sol PHP Philippines Peso PLZ Polish Zloty RUR Russian Ruble SEK Swedish Krona TWD New Taiwan Dollar ZAR South African Rand 1. Represents the current interest rate for a variable or increasing rate security. 2. Issue is in default. See Note 1 of Notes to Financial Statements. 3. Non-income producing security. 4. Identifies issues considered to be illiquid or restricted. See Note 11 of Notes to Financial Statements. 5. Zero coupon bond reflects effective yield on the date of purchase. 6. A sufficient amount of liquid assets has been designated to cover outstanding written options, as follows:
CONTRACTS EXPIRATION EXERCISE PREMIUM MARKET VALUE SUBJECT TO CALL DATES PRICE RECEIVED SEE NOTE 1 - --------------------------------------------------------------------------------------------------- Euro [EUR] 41,850,000EUR 5/10/04 1.29EUR $ 741,235 $ 116,008 Japanese Yen [JPY] 25,510,000JPY 4/28/04 141.00JPY/EUR 9 355,503 2,194 ------------------------- 1,096,738 118,202 ------------------------- CONTRACTS SUBJECT TO PUT - --------------------------------------------------------------------------------------------------- Hungary Forints [HUF] 10,000,000EUR 5/12/04 263.62HUF/EUR 9 127,300 630,790 Japanese Yen [JPY] 2,161,000,000JPY 6/1/04 120.00JPY 403,387 4,322 Japanese Yen [JPY] 3,860,000,000JPY 6/10/04 111.00JPY 539,010 69,480 ------------------------- 1,069,697 704,592 ------------------------- $2,166,435 $ 822,794 =========================
7. 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 $193,600 or 0.01% of the Fund's net assets as of March 31, 2004. 8. A sufficient amount of securities has been designated to cover outstanding foreign currency contracts. See Note 5 of Notes to Financial Statements. 9. Represents cross currency strike price. 16 | OPPENHEIMER INTERNATIONAL BOND FUND DISTRIBUTION OF INVESTMENTS REPRESENTING GEOGRAPHIC HOLDINGS, AS A PERCENTAGE OF TOTAL INVESTMENTS AT VALUE, IS AS FOLLOWS: GEOGRAPHIC HOLDINGS MARKET VALUE PERCENT - ------------------------------------------------------------------------------ United States $208,309,253 16.7% Sweden 103,121,406 8.3 Japan 87,412,598 7.0 Brazil 71,488,689 5.7 The Netherlands 50,049,397 4.0 Finland 49,403,366 4.0 France 45,811,226 3.7 Italy 42,351,097 3.4 Greece 42,151,460 3.4 Ireland 41,953,702 3.4 Austria 41,883,318 3.4 Portugal 40,428,754 3.2 Germany 40,256,797 3.2 Colombia 37,272,437 3.0 Spain 36,253,688 2.9 Poland 35,914,963 2.9 Indonesia 34,557,905 2.8 Belgium 32,725,944 2.6 Venezuela 31,260,302 2.5 Turkey 29,779,518 2.4 Argentina 28,104,664 2.2 Russia 24,788,762 2.0 Great Britain 17,091,634 1.4 India 13,274,481 1.1 Mexico 13,168,444 1.1 Denmark 9,171,226 0.7 Peru 8,689,748 0.7 Hungary 6,719,142 0.5 Czech Republic 5,413,558 0.4 Algeria 3,939,863 0.3 Supranational 3,783,125 0.3 Guatemala 2,541,000 0.2 Philippines 2,083,431 0.2 South Africa 2,030,070 0.2 Nigeria 1,938,735 0.2 Ivory Coast 569,794 -- Hong Kong 2,385 -- --------------------------------- Total $1,245,695,882 100.0% ================================= SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 17 | OPPENHEIMER INTERNATIONAL BOND FUND STATEMENT OF ASSETS AND LIABILITIES Unaudited - --------------------------------------------------------------------------------
March 31, 2004 - ----------------------------------------------------------------------------------- ASSETS - ----------------------------------------------------------------------------------- Investments, at value (cost $1,199,499,316)--see accompanying statement of investments $1,245,695,882 - ----------------------------------------------------------------------------------- Cash 2,602,309 - ----------------------------------------------------------------------------------- Cash--foreign currencies (cost $448,572) 454,860 - ----------------------------------------------------------------------------------- Cash used for collateral on futures 2,603,000 - ----------------------------------------------------------------------------------- Unrealized appreciation on foreign currency contracts 22,703,410 - ----------------------------------------------------------------------------------- Receivables and other assets: Interest, dividends and principal paydowns 19,267,547 Investments sold 18,004,778 Shares of beneficial interest sold 13,922,931 Futures margins 204,563 Other 10,403 --------------- Total assets 1,325,469,683 - ----------------------------------------------------------------------------------- LIABILITIES - ----------------------------------------------------------------------------------- Unrealized depreciation on foreign currency contracts 2,908,253 - ----------------------------------------------------------------------------------- Options written, at value (premiums received $2,166,435) --see accompanying statement of investments 822,794 - ----------------------------------------------------------------------------------- Swaptions written, at value (premiums received $694,082) 116,259 - ----------------------------------------------------------------------------------- Payables and other liabilities: Investments purchased 13,146,039 Swap contracts 10,503,949 Closed foreign currency contracts 2,359,060 Shares of beneficial interest redeemed 1,612,647 Distribution and service plan fees 653,850 Dividends 438,344 Transfer and shareholder servicing agent fees 185,011 Shareholder communications 66,371 Trustees' compensation 10,262 Other 59,594 --------------- Total liabilities 32,882,433 - ----------------------------------------------------------------------------------- NET ASSETS $1,292,587,250 =============== - ----------------------------------------------------------------------------------- COMPOSITION OF NET ASSETS - ----------------------------------------------------------------------------------- Par value of shares of beneficial interest $ 223,274 - ----------------------------------------------------------------------------------- Additional paid-in capital 1,158,149,339 - ----------------------------------------------------------------------------------- Accumulated net investment loss (5,975,031) - ----------------------------------------------------------------------------------- Accumulated net realized gain on investments and foreign currency transactions 81,762,721 - ----------------------------------------------------------------------------------- Net unrealized appreciation on investments and translation of assets and liabilities denominated in foreign currencies 58,426,947 --------------- NET ASSETS $1,292,587,250 ===============
18 | OPPENHEIMER INTERNATIONAL BOND FUND - -------------------------------------------------------------------------------- NET ASSET VALUE PER SHARE - -------------------------------------------------------------------------------- Class A Shares: Net asset value and redemption price per share (based on net assets of $920,140,198 and 158,793,454 shares of beneficial interest outstanding) $5.79 Maximum offering price per share (net asset value plus sales charge of 4.75% of offering price) $6.08 - -------------------------------------------------------------------------------- Class B Shares: Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $167,509,673 and 28,996,596 shares of beneficial interest outstanding) $5.78 - -------------------------------------------------------------------------------- Class C Shares: Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $194,727,349 and 33,717,840 shares of beneficial interest outstanding) $5.78 - -------------------------------------------------------------------------------- Class N Shares: Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $10,210,030 and 1,765,887 shares of beneficial interest outstanding) $5.78 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 19 | OPPENHEIMER INTERNATIONAL BOND FUND STATEMENT OF OPERATIONS UNAUDITED - --------------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED MARCH 31, 2004 - ----------------------------------------------------------------------------------- INVESTMENT INCOME - ----------------------------------------------------------------------------------- Interest $15,013,910 - ----------------------------------------------------------------------------------- Dividends (net of foreign withholding taxes of $45,432) 303,590 ------------ Total investment income 15,317,500 - ----------------------------------------------------------------------------------- EXPENSES - ----------------------------------------------------------------------------------- Management fees 3,119,278 - ----------------------------------------------------------------------------------- Distribution and service plan fees: Class A 760,249 Class B 735,671 Class C 662,985 Class N 17,619 - ----------------------------------------------------------------------------------- Transfer and shareholder servicing agent fees: Class A 563,372 Class B 183,835 Class C 124,921 Class N 10,375 - ----------------------------------------------------------------------------------- Shareholder communications: Class A 27,427 Class B 13,160 Class C 7,135 Class N 575 - ----------------------------------------------------------------------------------- Custodian fees and expenses 96,318 - ----------------------------------------------------------------------------------- Trustees' compensation 11,315 - ----------------------------------------------------------------------------------- Other 27,740 ------------ Total expenses 6,361,975 Less reduction to custodian expenses (6,730) Less voluntary waiver of transfer and shareholder servicing agent fees: Class A (2,778) Class B (2,013) Class C (504) Class N (120) ------------ Net expenses 6,349,830 - ----------------------------------------------------------------------------------- NET INVESTMENT INCOME 8,967,670
20 | OPPENHEIMER INTERNATIONAL BOND FUND
- ----------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) - ----------------------------------------------------------------------------------- Net realized gain (loss) on: Investments (including premiums on options exercised) $ 20,968,532 Closing of futures contracts (5,582,592) Closing and expiration of option contracts written 1,102,201 Foreign currency transactions 67,801,569 ------------- Net realized gain 84,289,710 - ----------------------------------------------------------------------------------- Net change in unrealized appreciation on: Investments 9,197,810 Translation of assets and liabilities denominated in foreign currencies 9,883,426 Futures contracts 306,447 ------------- Net change in unrealized appreciation 19,387,683 - ----------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $112,645,063 =============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 21 | OPPENHEIMER INTERNATIONAL BOND FUND STATEMENTS OF CHANGES IN NET ASSETS - --------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED ENDED MARCH 31, 2004 SEPTEMBER 30, (UNAUDITED) 2003 - ------------------------------------------------------------------------------------ OPERATIONS - ------------------------------------------------------------------------------------ Net investment income $ 8,967,670 $ 17,157,924 - ------------------------------------------------------------------------------------ Net realized gain 84,289,710 51,584,451 - ------------------------------------------------------------------------------------ Net change in unrealized appreciation 19,387,683 37,514,665 ------------------------------ Net increase in net assets resulting from operations 112,645,063 106,257,040 - ------------------------------------------------------------------------------------ DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS - ------------------------------------------------------------------------------------ Dividends from net investment income: Class A (21,800,869) (11,257,243) Class B (5,158,176) (3,817,825) Class C (4,095,922) (1,988,035) Class N (228,902) (94,512) - ----------------------------------------------------------------------------------- BENEFICIAL INTEREST TRANSACTIONS - ----------------------------------------------------------------------------------- Net increase in net assets resulting from beneficial interest transactions: Class A 434,859,150 193,984,034 Class B 20,181,152 11,875,148 Class C 92,423,645 39,379,694 Class N 4,929,898 2,842,914 - ----------------------------------------------------------------------------------- NET ASSETS - ----------------------------------------------------------------------------------- Total increase 633,755,039 337,181,215 - ----------------------------------------------------------------------------------- Beginning of period 658,832,211 321,650,996 ----------------------------- End of period (including accumulated net investment income (loss) of $(5,975,031) and $16,341,168, respectively) $1,292,587,250 $658,832,211 =============================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 22 | OPPENHEIMER INTERNATIONAL BOND FUND FINANCIAL HIGHLIGHTS - --------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED ENDED MARCH 31, 2004 SEPT. 30, CLASS A (UNAUDITED) 2003 2002 2001 2000 1999 - -------------------------------------------------------------------------------------------------------- PER SHARE OPERATING DATA - -------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $5.33 $4.38 $3.95 $4.19 $4.23 $4.32 - -------------------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment income .06 .20 .24 .30 .45 .58 Net realized and unrealized gain (loss) .62 .95 .41 (.24) (.08) (.14) ----------------------------------------------------------- Total from investment operations .68 1.15 .65 .06 .37 .44 - -------------------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Dividends from net investment income (.22) (.20) (.19) -- (.21) (.53) Tax return of capital distribution -- -- (.03) (.30) (.20) -- ----------------------------------------------------------- Total dividends and/or distributions to shareholders (.22) (.20) (.22) (.30) (.41) (.53) - -------------------------------------------------------------------------------------------------------- Net asset value, end of period $5.79 $5.33 $4.38 $3.95 $4.19 $4.23 =========================================================== - -------------------------------------------------------------------------------------------------------- TOTAL RETURN, AT NET ASSET VALUE 1 13.22% 26.67% 16.78% 1.40% 8.93% 10.58% - -------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA - -------------------------------------------------------------------------------------------------------- Net assets, end of period (in thousands) $920,140 $429,283 $181,456 $118,733 $100,928 $102,236 - -------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $625,488 $285,391 $134,912 $117,000 $110,968 $101,948 - -------------------------------------------------------------------------------------------------------- Ratios to average net assets: 2 Net investment income 2.21% 3.94% 5.16% 7.10% 10.23% 13.47% Total expenses 1.14% 1.22% 1.37% 1.38% 1.31% 1.26% Expenses after expense reimbursement or fee waiver and reduction to custodian expenses N/A 3,4 N/A 3 N/A 3 N/A 3 1.29% 1.25% - -------------------------------------------------------------------------------------------------------- Portfolio turnover rate 107% 341% 372% 377% 288% 285% 1. Assumes an 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 of 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. 2. Annualized for periods of less than one full year. 3. Reduction to custodian expenses less than 0.01%. 4. Voluntary waiver of transfer agent fees less than 0.01%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 23 | OPPENHEIMER INTERNATIONAL BOND FUND FINANCIAL HIGHLIGHTS CONTINUED - --------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED ENDED MARCH 31, 2004 SEPT. 30, CLASS B (UNAUDITED) 2003 2002 2001 2000 1999 - -------------------------------------------------------------------------------------------------------- PER SHARE OPERATING DATA - -------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $5.31 $4.37 $3.94 $4.17 $4.22 $4.31 - -------------------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment income .04 .16 .21 .26 .42 .55 Net realized and unrealized gain (loss) .63 .94 .40 (.22) (.09) (.14) ----------------------------------------------------------- Total from investment operations .67 1.10 .61 .04 .33 .41 - -------------------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Dividends from net investment income (.20) (.16) (.15) -- (.20) (.50) Tax return of capital distribution -- -- (.03) (.27) (.18) -- ----------------------------------------------------------- Total dividends and/or distributions to shareholders (.20) (.16) (.18) (.27) (.38) (.50) - -------------------------------------------------------------------------------------------------------- Net asset value, end of period $5.78 $5.31 $4.37 $3.94 $4.17 $4.22 =========================================================== - -------------------------------------------------------------------------------------------------------- TOTAL RETURN, AT NET ASSET VALUE 1 12.98% 25.48% 15.90% 0.85% 7.94% 9.79% - -------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA - -------------------------------------------------------------------------------------------------------- Net assets, end of period (in thousands) $167,510 $134,661 $100,049 $84,427 $ 98,272 $118,632 - -------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $147,238 $119,232 $ 85,244 $93,455 $115,116 $122,878 - -------------------------------------------------------------------------------------------------------- Ratios to average net assets: 2 Net investment income 1.39% 3.20% 4.41% 6.40% 9.63% 12.70% Total expenses 1.98% 2.03% 2.14% 2.14% 2.05% 2.02% Expenses after expense reimbursement or fee waiver and reduction to custodian expenses N/A 3,4 N/A 3 N/A 3 N/A 3 2.03% 2.01% - -------------------------------------------------------------------------------------------------------- Portfolio turnover rate 107% 341% 372% 377% 288% 285% 1. Assumes an 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 of 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. 2. Annualized for periods of less than one full year. 3. Reduction to custodian expenses less than 0.01%. 4. Voluntary waiver of transfer agent fees less than 0.01%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 24 | OPPENHEIMER INTERNATIONAL BOND FUND
SIX MONTHS YEAR ENDED ENDED MARCH 31, 2004 SEPT. 30, CLASS C (UNAUDITED) 2003 2002 2001 2000 1999 - -------------------------------------------------------------------------------------------------------- PER SHARE OPERATING DATA - -------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $5.31 $4.37 $3.94 $4.17 $4.22 $4.31 - -------------------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment income .04 .16 .21 .26 .41 .55 Net realized and unrealized gain (loss) .63 .94 .40 (.22) (.08) (.14) ---------------------------------------------------------- Total from investment operations .67 1.10 .61 .04 .33 .41 - -------------------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Dividends from net investment income (.20) (.16) (.15) -- (.19) (.50) Tax return of capital distribution -- -- (.03) (.27) (.19) -- ---------------------------------------------------------- Total dividends and/or distributions to shareholders (.20) (.16) (.18) (.27) (.38) (.50) - -------------------------------------------------------------------------------------------------------- Net asset value, end of period $5.78 $5.31 $4.37 $3.94 $4.17 $4.22 ========================================================== - -------------------------------------------------------------------------------------------------------- TOTAL RETURN, AT NET ASSET VALUE 1 13.02% 25.48% 15.90% 0.85% 7.95% 9.80% - -------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA - -------------------------------------------------------------------------------------------------------- Net assets, end of period (in thousands) $194,727 $90,248 $38,865 $25,221 $27,663 $29,456 - -------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $133,079 $63,198 $28,635 $27,125 $30,710 $28,918 - -------------------------------------------------------------------------------------------------------- Ratios to average net assets: 2 Net investment income 1.43% 3.15% 4.37% 6.39% 9.55% 12.76% Total expenses 1.91% 2.02% 2.14% 2.14% 2.05% 2.02% Expenses after expense reimbursement or fee waiver and reduction to custodian expenses N/A 3,4 N/A 3 N/A 3 N/A 3 2.03% 2.01% - -------------------------------------------------------------------------------------------------------- Portfolio turnover rate 107% 341% 372% 377% 288% 285% 1. Assumes an 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 of 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. 2. Annualized for periods of less than one full year. 3. Reduction to custodian expenses less than 0.01%. 4. Voluntary waiver of transfer agent fees less than 0.01%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 25 | OPPENHEIMER INTERNATIONAL BOND FUND FINANCIAL HIGHLIGHTS Continued - --------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED ENDED MARCH 31, 2004 SEPT. 30, CLASS N (UNAUDITED) 2003 2002 2001 1 - ------------------------------------------------------------------------------------------- PER SHARE OPERATING DATA - ------------------------------------------------------------------------------------------- Net asset value, beginning of period $5.32 $4.37 $3.95 $4.23 - ------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment income .05 .18 .21 .16 Net realized and unrealized gain (loss) .62 .95 .42 (.28) --------------------------------------- Total from investment operations .67 1.13 .63 (.12) - ------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Dividends from net investment income (.21) (.18) (.18) -- Tax return of capital distribution -- -- (.03) (.16) --------------------------------------- Total dividends and/or distributions to shareholders (.21) (.18) (.21) (.16) - ------------------------------------------------------------------------------------------- Net asset value, end of period $5.78 $5.32 $4.37 $3.95 ======================================= - ------------------------------------------------------------------------------------------- TOTAL RETURN, AT NET ASSET VALUE 2 13.04% 26.31% 16.23% (2.88)% - ------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA - ------------------------------------------------------------------------------------------- Net assets, end of period (in thousands) $10,210 $4,640 $1,280 $109 - ------------------------------------------------------------------------------------------- Average net assets (in thousands) $ 7,078 $2,653 $ 297 $ 34 - ------------------------------------------------------------------------------------------- Ratios to average net assets: 3 Net investment income 1.86% 3.56% 4.87% 6.56% Total expenses 1.52% 4,5 1.57% 4 1.57% 4 1.39% 4 - ------------------------------------------------------------------------------------------- Portfolio turnover rate 107% 341% 372% 377% 1. For the period from March 1, 2001 (inception of offering) to September 30, 2001. 2. Assumes an 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 of 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. 3. Annualized for periods of less than one full year. 4. Reduction to custodian expenses less than 0.01%. 5. Voluntary waiver of transfer agent fees less than 0.01%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 26 | OPPENHEIMER INTERNATIONAL BOND FUND NOTES TO FINANCIAL STATEMENTS UNAUDITED - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. SIGNIFICANT ACCOUNTING POLICIES Oppenheimer International Bond Fund (the Fund) is a registered investment company organized as a Massachusetts Business Trust. The Fund is registered as a non-diversified, open-end management investment company under the Investment Company Act of 1940, as amended. The Fund's investment objective is to seek total return. The Fund's investment advisor is OppenheimerFunds, Inc. (the Manager). The Fund offers Class A, Class B, Class C and Class N 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. 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 by minor amounts due to each class having its own expenses directly attributable to that class. Classes A, B, C and N have separate distribution and/or service plans. Class B shares will automatically convert to Class A shares six years after the date of purchase. The following is a summary of significant accounting policies consistently followed by the Fund. - -------------------------------------------------------------------------------- SECURITIES VALUATION. Securities listed or traded on National Stock Exchanges or other domestic or foreign exchanges are valued based on the last sale price of the security traded on that exchange prior to the time when the Fund's assets are valued. Securities traded on NASDAQ are valued based on the closing price provided by NASDAQ prior to the time when the Fund's assets are valued. In the absence of a sale, the security is valued at the last sale price on the prior trading day, if it is within the spread of the closing bid and asked prices, and if not, at the closing bid price. Securities may be valued primarily using dealer-supplied valuations or a portfolio pricing service authorized by the Board of Trustees. Securities (including restricted securities) for which market quotations are not readily available are valued at their fair value. Foreign securities whose values have been materially affected by what the Manager identifies as a significant event occurring before the Fund's assets are valued but after the close of their respective foreign exchanges will be fair valued. Fair value is determined in good faith using consistently applied procedures under the supervision of the Board of Trustees. Short-term "money market type" debt securities with remaining maturities of sixty days or less are valued at amortized cost (which approximates market value). - -------------------------------------------------------------------------------- STRUCTURED NOTES. The Fund invests in foreign currency-linked structured notes whose market values and redemption prices are linked to foreign currency exchange rates. The Fund also invests in "index-linked" notes whose principal and/or interest payments depend on the performance of an underlying index. The structured notes are leveraged, increasing the volatility of each note's market value relative to the change in the underlying foreign currency exchange rate or underlying index. Fluctuations in value of these 27 | OPPENHEIMER INTERNATIONAL BOND FUND NOTES TO FINANCIAL STATEMENTS UNAUDITED / CONTINUED - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. SIGNIFICANT ACCOUNTING POLICIES Continued securities are recorded as unrealized gains and losses in the accompanying financial statements. The Fund records a realized gain or loss when a structured note is sold or matures. As of March 31, 2004, the market value of these securities comprised 11.2% of the Fund's net assets and resulted in unrealized gains of $3,663,638. The Fund also hedges a portion of the foreign currency exposure generated by these securities, as discussed in Note 5. - -------------------------------------------------------------------------------- SECURITY CREDIT RISK. The Fund invests in high-yield securities, which may be subject to a greater degree of credit risk, market fluctuations and loss of income and principal, and may be more sensitive to economic conditions than lower-yielding, higher-rated fixed-income securities. The Fund may acquire securities in default, and is not obligated to dispose of securities whose issuers subsequently default. As of March 31, 2004, securities with an aggregate market value of $14,698,766, representing 1.14% of the Fund's net assets, were in default. - -------------------------------------------------------------------------------- FOREIGN CURRENCY TRANSLATION. The Fund's accounting records are maintained in U.S. dollars. Prices of securities denominated in foreign currencies are translated into U.S. dollars at the closing rates of exchange. Amounts related to the purchase and sale of foreign securities and investment income are translated at the rates of exchange prevailing on the respective dates of such transactions. The effect of changes in foreign currency exchange rates on investments is separately identified from the fluctuations arising from changes in market values of securities held and reported with all other foreign currency gains and losses in the Fund's Statement of Operations. - -------------------------------------------------------------------------------- JOINT REPURCHASE AGREEMENTS. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the Fund, along with other affiliated funds advised by the Manager, may transfer uninvested cash balances into joint trading accounts on a daily basis. Secured by U.S. government securities, these balances are invested in one or more repurchase agreements. Securities pledged as collateral for repurchase agreements are held by a custodian bank until the agreements mature. Each agreement requires that the market value of the collateral be sufficient to cover payments of interest and principal. In the event of default by the other party to the agreement, retention of the collateral may be subject to legal proceedings. - -------------------------------------------------------------------------------- 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 28 | OPPENHEIMER INTERNATIONAL BOND FUND 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. Net investment income (loss) and net realized gain (loss) may differ for financial statement and tax purposes primarily due to the recognition of paydown gains and losses as capital gain or loss for tax purposes and the recognition of certain foreign currency gains (losses) as ordinary income (loss) for 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. As of March 31, 2004, the Fund had available for federal income tax purposes an estimated unused capital loss carryforward of zero. 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 March 31, 2004 and the year ended September 30, 2003, the Fund used $2,082,181 and $34,133,620, respectively, of carryforward to offset capital gains realized. As of September 30, 2003, the Fund had available for federal income tax purposes unused capital loss carryforwards as follows: EXPIRING ---------------------- 2008 $ 783,099 2009 1,299,082 ---------- Total $2,082,181 ========== - -------------------------------------------------------------------------------- TRUSTEES' COMPENSATION. The Board of Trustees has adopted a deferred compensation 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. Under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of the Fund or are invested in other Oppenheimer funds selected by the Trustee. Deferral of trustees' fees under the plan will not affect the net assets of the Fund, and will not materially affect the Fund's assets, liabilities or net investment income per share. Amounts will be deferred until distributed in accordance to the Plan. - -------------------------------------------------------------------------------- DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to shareholders, which are determined in accordance with income tax regulations, are recorded on the ex-dividend date. Income distributions, if any, are declared daily and paid monthly. Capital gain distributions, if any, are declared and paid annually. - -------------------------------------------------------------------------------- INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date or upon ex-dividend notification in the case of certain foreign dividends where the ex-dividend date may have passed. Non-cash dividends included in dividend income, if any, are recorded at 29 | OPPENHEIMER INTERNATIONAL BOND FUND NOTES TO FINANCIAL STATEMENTS Unaudited / Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. SIGNIFICANT ACCOUNTING POLICIES Continued the fair market value of the securities received. Interest income, which includes accretion of discount and amortization of premium, is accrued as earned. - -------------------------------------------------------------------------------- EXPENSE OFFSET ARRANGEMENT. The reduction of custodian fees, if applicable, represents earnings on cash balances maintained by the Fund. - -------------------------------------------------------------------------------- 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. - -------------------------------------------------------------------------------- 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 income and expenses during the reporting period. Actual results could differ from those estimates. - -------------------------------------------------------------------------------- 2. SHARES OF BENEFICIAL INTEREST The Fund has authorized an unlimited number of $0.001 par value shares of beneficial interest of each class. Transactions in shares of beneficial interest were as follows:
SIX MONTHS ENDED MARCH 31, 2004 YEAR ENDED SEPTEMBER 30, 2003 SHARES AMOUNT SHARES AMOUNT - --------------------------------------------------------------------------------------- CLASS A Sold 94,227,236 $523,940,278 66,619,226 $327,783,210 Dividends and/or distributions reinvested 3,215,653 17,243,527 1,800,877 8,831,110 Redeemed (19,211,192) (106,324,655) (29,286,342) (142,630,286) ----------------------------------------------------------- Net increase 78,231,697 $434,859,150 39,133,761 $193,984,034 =========================================================== - --------------------------------------------------------------------------------------- CLASS B Sold 8,236,780 $ 45,472,441 14,881,963 $ 71,989,537 Dividends and/or distributions reinvested 739,017 3,929,253 560,961 2,725,698 Redeemed (5,321,223) (29,220,542) (13,006,585) (62,840,087) ----------------------------------------------------------- Net increase 3,654,574 $ 20,181,152 2,436,339 $ 11,875,148 =========================================================== - --------------------------------------------------------------------------------------- CLASS C Sold 19,063,106 $105,375,350 12,729,289 $ 62,063,352 Dividends and/or distributions reinvested 571,167 3,039,001 292,444 1,431,897 Redeemed (2,909,236) (15,990,706) (4,932,108) (24,115,555) ----------------------------------------------------------- Net increase 16,725,037 $ 92,423,645 8,089,625 $ 39,379,694 ===========================================================
30 | OPPENHEIMER INTERNATIONAL BOND FUND
SIX MONTHS ENDED MARCH 31, 2004 YEAR ENDED SEPTEMBER 30, 2003 SHARES AMOUNT SHARES AMOUNT - --------------------------------------------------------------------------------------- CLASS N Sold 1,044,968 $ 5,779,245 682,672 $ 3,342,355 Dividends and/or distributions reinvested 37,956 202,993 15,660 77,211 Redeemed (189,587) (1,052,340) (118,748) (576,652) ----------------------------------------------------------- Net increase 893,337 $ 4,929,898 579,584 $ 2,842,914 ===========================================================
- -------------------------------------------------------------------------------- 3. PURCHASES AND SALES OF SECURITIES The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations, for the six months ended March 31, 2004, were $1,242,400,475 and $819,583,135, respectively. - -------------------------------------------------------------------------------- 4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES MANAGEMENT FEES. Management fees paid to the Manager were in accordance with the investment advisory agreement with the Fund which provides for a fee at an annual rate of 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 $200 million and 0.50% of average annual net assets in excess of $1 billion. - -------------------------------------------------------------------------------- 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 March 31, 2004, the Fund paid $801,845 to OFS for services to the Fund. OFS has voluntarily agreed to limit transfer and shareholder servicing agent fees for all classes, up to an annual rate of 0.35% of average net assets per class. This undertaking may be amended or withdrawn at any time. - -------------------------------------------------------------------------------- DISTRIBUTION AND SERVICE PLAN (12B-1) FEES. Under its General Distributor's Agreement with the Fund, OppenheimerFunds Distributor, Inc. (the Distributor) acts as the Fund's principal underwriter in the continuous public offering of the Fund's classes of shares. - -------------------------------------------------------------------------------- SERVICE PLAN FOR CLASS A SHARES. The Fund has adopted a Service Plan for Class A shares. It reimburses the Distributor for a portion of its costs incurred for services provided to accounts that hold Class A shares. Reimbursement is made quarterly at an annual rate of up to 0.25% of the average annual net assets of Class A shares of the Fund. The Distributor currently uses the fees it receives from the Fund to pay brokers, dealers and other financial institutions for personal services and account maintenance services they provide for their customers who 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 years. Fees incurred by the Fund under the plan are detailed in the Statement of Operations. 31 | OPPENHEIMER INTERNATIONAL BOND FUND NOTES TO FINANCIAL STATEMENTS UNAUDITED / CONTINUED - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued DISTRIBUTION AND SERVICE PLANS FOR CLASS B, CLASS C AND CLASS N SHARES. The Fund has adopted Distribution and Service Plans for Class B, Class C and Class N shares to compensate the Distributor for its services in connection with the distribution of these shares and servicing accounts. Under the plans, the Fund pays the Distributor an annual asset-based sales charge of 0.75% per year on Class B shares and on Class C shares and 0.25% per year on Class N shares. The Distributor also receives a service fee of up to 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. The Distributor's aggregate uncompensated expenses under the plan at March 31, 2004 for Class B, Class C and Class N shares were $6,221,436, $3,245,209 and $103,769, respectively. Fees incurred by the Fund under the plans are detailed in the Statement of Operations. - -------------------------------------------------------------------------------- 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 table below 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 - ---------------------------------------------------------------------------------------------- March 31, 2004 $414,429 $-- $173,904 $47,397 $5,426
- -------------------------------------------------------------------------------- 5. FOREIGN CURRENCY CONTRACTS A foreign currency contract is a commitment to purchase or sell a foreign currency at a future date, at a negotiated rate. The Fund may enter into foreign currency contracts to settle specific purchases or sales of securities denominated in a foreign currency and for protection from adverse exchange rate fluctuation. Risks to the Fund include the potential inability of the counterparty to meet the terms of the contract. The net U.S. dollar value of foreign currency underlying all contractual commitments held by the Fund and the resulting unrealized appreciation or depreciation are determined using prevailing foreign currency exchange rates. Unrealized appreciation and depreciation on foreign currency contracts are reported in the Statement of Assets and Liabilities as a receivable or payable and in the Statement of Operations with the change in unrealized appreciation or depreciation. 32 | OPPENHEIMER INTERNATIONAL BOND FUND The Fund may realize a gain or loss upon the closing or settlement of the foreign transaction. Contracts closed or settled with the same broker are recorded as net realized gains or losses. Such realized gains and losses are reported with all other foreign currency gains and losses in the Statement of Operations. As of March 31, 2004, the Fund had outstanding foreign currency contracts as follows:
VALUATION CONTRACT AS OF EXPIRATION AMOUNT MARCH 31, UNREALIZED UNREALIZED CONTRACT DESCRIPTION DATES (000S) 2004 APPRECIATION DEPRECIATION - ------------------------------------------------------------------------------------------------------------ CONTRACTS TO PURCHASE Argentine Peso [ARP] 5/27/04-7/16/04 50,640ARP $ 17,616,013 $ 1,114,720 $ -- Australian Dollar [AUD] 4/14/04 12,800AUD 9,755,316 212,532 -- Brazilian Real [BRR] 9/15/04-1/31/05 142,154BRR 44,588,773 15,644 615,122 British Pound Sterling [GBP] 4/14/04-7/16/04 16,230GBP 29,623,940 123,311 529,882 Columbian Peso [COP] 3/16/05 16,492,230COP 5,764,892 -- 36,103 Euro [EUR] 5/12/04-6/23/04 210,565EUR 258,231,286 103,083 1,336,485 Hungary Forints [HUF] 5/12/04 2,704,700HUF 13,186,156 486,156 -- Indonesia Rupiah [IDR] 9/24/04 10,250,000IDR 1,196,944 31,906 -- Japanese Yen [JPY] 3/15/05-4/1/05 45,256,300JPY 461,325,996 19,130,431 -- New Taiwan Dollar [TWD] 9/24/04 139,495TWD 4,279,121 33,990 -- New Zealand Dollar [NZD] 4/14/04 14,280NZD 9,490,785 200,931 -- Peruvian New Sol [PEN] 4/29/04-6/15/04 88,571PEN 25,551,790 177,694 -- South Korean Won [KRW] 5/13/04-9/24/04 34,159,000KRW 29,610,967 495,506 -- --------------------------- 22,125,904 2,517,592 --------------------------- CONTRACTS TO SELL Canadian Dollar [CAD] 6/22/04 21,900CAD 16,623,844 143,118 -- Columbian Peso [COP] 4/26/04 26,666,000COP 9,921,805 9,666 -- Euro [EUR] 5/12/04-6/15/04 24,045EUR 29,502,683 424,722 86,531 Japanese Yen [JPY] 4/14/04 1,059,000JPY 10,184,167 -- 177,647 Swiss Franc [CHF] 4/14/04 12,400CHF 9,791,557 -- 126,483 --------------------------- 577,506 390,661 --------------------------- Total unrealized appreciation and depreciation $22,703,410 $2,908,253 ===========================
- -------------------------------------------------------------------------------- 6. FUTURES CONTRACTS A futures contract is a commitment to buy or sell a specific amount of a commodity or financial instrument at a negotiated price on a stipulated future date. Futures contracts are traded on a commodity exchange. The Fund may buy and sell futures contracts that relate to broadly based securities indices "financial futures" or debt securities "interest rate futures" in order to gain exposure to or protection from changes in market value of stock and bonds or interest rates. The Fund may also buy or write put or call options on these futures contracts. 33 | OPPENHEIMER INTERNATIONAL BOND FUND NOTES TO FINANCIAL STATEMENTS UNAUDITED / CONTINUED - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 6. FUTURES CONTRACTS Continued The Fund generally sells futures contracts as a hedge against increases in interest rates and decreases in market value of portfolio securities. The Fund may also purchase futures contracts to gain exposure to market changes as it may be more efficient or cost effective than actually buying fixed income securities. Upon entering into a futures contract, the Fund is required to deposit either cash or securities (initial margin) in an amount equal to a certain percentage of the contract value. Subsequent payments (variation margin) are made or received by the Fund each day. The variation margin payments are equal to the daily changes in the contract value and are recorded as unrealized gains and losses. The Fund recognizes a realized gain or loss when the contract is closed or has expired. Cash held by the broker to cover initial margin requirements on open futures contracts is noted in the Statement of Assets and Liabilities. Securities held in collateralized accounts to cover initial margin requirements on open futures contracts are noted in the Statement of Investments. The Statement of Assets and Liabilities reflects a receivable and/or payable for the daily mark to market for variation margin. Realized gains and losses are reported on the Statement of Operations as closing and expiration of futures contracts. The net change in unrealized appreciation and depreciation is reported on the Statement of Operations. Risks of entering into futures contracts (and related options) include the possibility that there may be an illiquid market and that a change in the value of the contract or option may not correlate with changes in the value of the underlying securities. As of March 31, 2004, the Fund had outstanding futures contracts as follows:
UNREALIZED EXPIRATION NUMBER OF VALUATION AS OF APPRECIATION CONTRACT DESCRIPTION DATES CONTRACTS MARCH 31, 2004 (DEPRECIATION) - ------------------------------------------------------------------------------------------- CONTRACTS TO PURCHASE Nikkei 225 Index 6/10/04 403 $22,787,019 $997,478 --------- CONTRACTS TO SELL DAX Index 6/18/04 56 6,671,083 22,968 Hang Seng Index 4/29/04 174 14,064,317 94,832 Japan (Government of) Bonds, 10 yr. 6/9/04 23 3,036,747 4,183 Japan (Government of) Bonds, 10 yr. 6/10/04 23 30,409,478 179,074 MIB 30 Index 6/18/04 60 9,878,142 (58,628) Standard & Poor's 500 E-Mini 6/18/04 176 9,900,000 (183,260) Standard & Poor's 500 Index 6/17/04 37 10,405,325 (74,467) --------- (15,298) --------- $982,180 =========
- -------------------------------------------------------------------------------- 7. OPTION ACTIVITY The Fund may buy and sell put and call options, or write put and covered call options on portfolio securities in order to produce incremental earnings or protect against changes in the value of portfolio securities. 34 | OPPENHEIMER INTERNATIONAL BOND FUND The Fund generally purchases put options or writes covered call options to hedge against adverse movements in the value of portfolio holdings. 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 and unrealized appreciation or depreciation is recorded. The Fund will realize a gain or loss upon the expiration or closing of the option transaction. When an option is exercised, the proceeds on sales for a written call option, the purchase cost for a written put option, or the cost of the security for a purchased put or call option is adjusted by the amount of premium received or paid. Securities designated to cover outstanding call options are noted in the Statement of Investments where applicable. Contracts subject to call, expiration date, exercise price, premium received and market value are detailed in a note to the Statement of Investments. Options written are reported as a liability in the Statement of Assets and Liabilities. Realized gains and losses are reported in the Statement of Operations. 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 of not being able to enter into a closing transaction if a liquid secondary market does not exist. Written option activity for the six months ended March 31, 2004 was as follows:
CALL OPTIONS PUT OPTIONS ---------------------------------------------------------- PRINCIPAL/ PRINCIPAL/ NUMBER OF AMOUNT OF NUMBER OF AMOUNT OF CONTRACTS PREMIUMS CONTRACTS PREMIUMS - --------------------------------------------------------------------------------------- Options outstanding as of September 30, 2003 9,887,303,797 $1,566,192 2,163,660,000 $ 414,161 Options written 101,635,000 2,266,863 3,870,000,000 666,309 Options closed or expired (68,823,797) (1,692,953) (2,660,000) (10,773) Options exercised (9,852,755,000) (1,043,364) -- -- ---------------------------------------------------------- Options outstanding as of March 31, 2004 67,360,000 $1,096,738 6,031,000,000 $1,069,697 ==========================================================
- -------------------------------------------------------------------------------- 8. INTEREST RATE SWAP CONTRACTS The Fund may enter into an interest rate swap transaction to maintain a total return or yield spread on a particular investment, or portion of its portfolio, or for other non-speculative purposes. Interest rate swaps involve the exchange of commitments to pay or receive interest, e.g., an exchange of floating rate payments for fixed rate payments. The coupon payments are based on an agreed upon principal amount and a specified index. Because the principal amount is not exchanged, it represents neither an asset nor a liability to either counterparty, and is referred to as notional. The Fund records 35 | OPPENHEIMER INTERNATIONAL BOND FUND NOTES TO FINANCIAL STATEMENTS UNAUDITED / CONTINUED - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 8. INTEREST RATE SWAP CONTRACTS Continued an increase or decrease to interest income, in the amount due to or owed by the Fund at termination or settlement. Interest rate swaps are subject to credit risk (if the counterparty fails to meet its obligations) and interest rate risk. The Fund could be obligated to pay more under its swap agreements than it receives under them, as a result of interest rate changes. As of March 31, 2004, the Fund had entered into the following interest rate swap agreements:
RATE PAID FLOATING RATE BY THE RECEIVED BY FUND AT THE FUND AT UNREALIZED SWAP NOTIONAL MARCH 31, MARCH 31, FLOATING TERMINATION APPRECIATION COUNTERPARTY AMOUNT 2004 2004 RATE INDEX DATE (DEPRECIATION) - ------------------------------------------------------------------------------------------------------------ Citigroup Global Markets 90 Day Holdings, Inc. 333,000,000TWD 2.02% 1.018% CPTW 3/4/09 $ (16,195) Citigroup Global Markets Three-Month Holdings, Inc. 160,000,000 3.453 1.12 LIBOR BBA 3/5/09 (2,250,464) Citigroup Global Markets Three-Month Holdings, Inc. 90,000,000 4.46 1.12 LIBOR BBA 3/15/14 (1,815,945) Citigroup Global Markets 90 Day Holdings, Inc. 333,000,000TWD 2.02 0.99725 CPTW 3/23/09 2,791 Deutsche Six-Month Bank AG 500,000,000INR 1.61 4.87 MIFOR 3/22/09 (41,399) JPMorgan Six-Month Chase Bank 248,765,000 3.484 1.12 USD Flat 3/5/09 (3,929,766) JPMorgan Three-Month Chase Bank 66,000,000ZAR 7.956 9.68 LIBOR Flat 2/18/11 (141,889) JPMorgan Three-Month Chase Bank 66,000,000ZAR 7.966 9.78 LIBOR Flat 2/20/11 (90,012) JPMorgan Three-Month Chase Bank 13,500,000 3.342 1.29 LIBOR Flat 3/31/08 (231,614) JPMorgan Three-Month Chase Bank 110,000,000 3.82 1.17 LIBOR Flat 11/10/08 (3,666,666) JPMorgan Six-Month Chase Bank 8,000,000 1.290 2.92 LIBOR Flat 5/13/08 (6,439) JPMorgan Six-Month Chase Bank 3,880,000EUR 3.135 2.081 LIBOR Flat 7/14/08 (13,717) JPMorgan Six-Month Chase Bank 1,080,000,000HUF 9.13 7.00 LIBOR Flat 7/14/08 (350,784) JPMorgan Six-Month Chase Bank 279,000,000 1.17 3.535 LIBOR Flat 12/23/08 5,512,214 JPMorgan Six-Month Chase Bank 147,000,000EUR 3.064 2.243 EURIBOR 12/3/05 (2,703,580) ------------ $(9,743,465) ============
36 | OPPENHEIMER INTERNATIONAL BOND FUND Index abbreviations: CPTW Taiwan Secondary Commercial Papers EURIBOR Euro Interbank Offered Rate LIBOR London-Interbank Offered Rate LIBOR BBA London-Interbank Offered Rate British Bankers Association MIFOR Mumbai Interbank Forward Offer Rates - -------------------------------------------------------------------------------- 9. CREDIT SWAP CONTRACTS The Fund may enter into a credit swap transaction to maintain a total return on a particular investment or portion of its portfolio, or for other non-speculative purposes. Because the principal amount is not exchanged, it represents neither an asset nor a liability to either counterparty, and is referred to as a notional principal amount. The Fund records an increase or decrease to interest income, in the amount due to or owed by the Fund at termination or settlement. Credit swaps are subject to credit risks (if the counterparty fails to meet its obligations). The Fund pays an annual interest fee on the notional amount in exchange for the counterparty paying in a potential credit event. During the six months ended March 31, 2004, the Fund entered into transactions to hedge credit risk. Information regarding the credit swaps is as follows:
UNREALIZED EXPIRATION NOTIONAL VALUATION AS OF APPRECIATION CONTRACT DESCRIPTION DATES AMOUNT MARCH 31, 2004 (DEPRECIATION) - ---------------------------------------------------------------------------------------------- Deutsche Bank AG, Costa Rica (Republic of) Credit Nts. 5/10/08 $ 1,835,000 $ (78,081) $ (78,081) Deutsche Bank AG, Costa Rica (Republic of) Credit Bonds 4/25/08 990,000 (29,843) (29,843) Deutsche Bank AG, Indonesia (Republic of) Credit Bonds 1/14/09 454,000,000INR (55,485) (55,485) Deutsche Bank AG, Panama (Republic of) Credit Nts. 5/13/08 1,835,000 (58,189) (58,189) Deutsche Bank AG, Peru (Republic of) Credit Bonds 10/20/08 1,205,000 4,372 4,372 Deutsche Bank AG, Philippines (Republic of) 5 yr. Credit Nts. 7/25/08 2,335,000 (46,943) (46,943) Deutsche Bank AG, Philippines (Republic of) 10 yr. Credit Bonds 7/25/13 2,335,000 76,766 76,766 Deutsche Bank AG, Russia Federation Credit Bonds 9/20/13 3,490,000 (126,629) (126,629) Deutsche Bank AG, Russia Federation Credit Bonds 9/10/13 2,570,000 (83,928) (83,928) Deutsche Bank AG, Russia Federation Credit Bonds 10/30/13 5,190,000 (171,563) (171,563) Deutsche Bank AG, Turkey (Republic of ) Credit Bonds 9/20/10 1,595,000 (214,252) (214,252) Deutsche Bank AG, Turkey (Republic of ) Credit Bonds 10/10/13 1,180,000 (116,749) (116,749) Deutsche Bank AG, United Mexican States Credit Bonds 9/20/13 2,790,000 (93,283) (93,283)
37 | OPPENHEIMER INTERNATIONAL BOND FUND NOTES TO FINANCIAL STATEMENTS UNAUDITED / CONTINUED - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 9. CREDIT SWAP CONTRACTS Continued
UNREALIZED EXPIRATION NOTIONAL VALUATION AS OF APPRECIATION CONTRACT DESCRIPTION DATES AMOUNT MARCH 31, 2004 (DEPRECIATION) - -------------------------------------------------------------------------------------------- JPMorgan Chase Bank, Chile (Republic of) Credit Bonds 12/20/13 $ 8,500,000 $(177,034) $ (177,034) JPMorgan Chase Bank, Inter-American Development Bank Credit Bonds 12/20/13 15,910,000 (23,393) (23,393) JPMorgan Chase Bank, Jordan (Kingdom of) Credit Nts. 6/6/06 390,000 637 637 JPMorgan Chase Bank, Peru (Republic of) Credit Bonds 9/20/08 900,000 (46,847) (46,847) JPMorgan Chase Bank, Peru (Republic of) Credit Bonds 9/20/08 1,800,000 (90,098) (90,098) JPMorgan Chase Bank, Peru (Republic of) Credit Bonds 12/20/13 2,540,000 78,105 78,105 JPMorgan Chase Bank, Russian Federation Credit Bonds 10/9/13 550,000 3,499 3,499 JPMorgan Chase Bank, TRAC-X Emerging Markets Credit Nts. 1 12/20/08 1,805,000 (78,549) (78,549) JPMorgan Chase Bank, Turkey (Republic of) Credit Bonds 2/16/06 2,600,000 (46,800) (46,800) JPMorgan Chase Bank, Turkey (Republic of) Credit Bonds 12/19/13 8,500,000 43,300 43,300 JPMorgan Chase Bank, Turkey (Republic of) Credit Bonds 11/27/13 8,500,000 565,000 565,000 JPMorgan Chase Bank, Venezuela (Republic of) Credit Bonds 2/20/14 2,135,000 (147,497) (147,497) JPMorgan Chase Bank, Venezuela (Republic of) Credit Nts. 3/20/06 4,000,000 153,000 153,000 ---------- $(760,484) ==========
1. Comprised of emerging markets credit default swaps of which the underlying is comprised of a pool of emerging market entities and associated benchmark obligations. The Fund received a premium and is obligated to pay a rate that resets every six months primarily based upon default by an emerging market entity within the pool. - -------------------------------------------------------------------------------- 10. SWAPTION TRANSACTIONS The Fund may enter into a swaption transaction, whereby a contract that grants the holder, in return for payment of the purchase price (the "premium") of the option, the right, but not the obligation, to enter into an interest rate swap at a preset rate within a specified period of time, with the writer of the contract. The writer receives premiums and bears the risk of unfavorable changes in the preset rate on the underlying interest rate swap. Swaption contracts written by the Fund do not give rise to counterparty credit risk as they obligate the Fund, not its counterparty, to perform. Swaptions written are reported as a liability in the Statement of Assets and Liabilities. 38 | OPPENHEIMER INTERNATIONAL BOND FUND As of March 31, 2004, the Fund had entered into the following swaption contracts:
CONTRACTS EXPIRATION EXERCISE PREMIUM MARKET VALUE SWAPTIONS SUBJECT TO CALL DATES PRICE RECEIVED SEE NOTE 1 - ---------------------------------------------------------------------------------- Deutsche Bank AG 49,335,000 5/17/04 2.825% $439,082 $ 67,894 JPMorgan Chase Bank 30,000,000 5/10/04 2.920 255,000 48,365 ------------------------- $694,082 $116,259 =========================
- -------------------------------------------------------------------------------- 11. ILLIQUID OR RESTRICTED SECURITIES AND CURRENCY As of March 31, 2004, investments in securities included issues that are illiquid or restricted. Restricted securities are purchased in private placement transactions, are not registered under the Securities Act of 1933, may have contractual restrictions on resale, and are valued under methods approved by the Board of Trustees as reflecting fair value. A security may also be considered illiquid if it lacks a readily available market or if its valuation has not changed for a certain period of time. The Fund intends to invest no more than 10% of its net assets (determined at the time of purchase and reviewed periodically) in illiquid or restricted securities. Certain restricted securities, eligible for resale to qualified institutional investors, are not subject to that limitation. The aggregate value of illiquid or restricted securities subject to this limitation as of March 31, 2004 was $33,895,911, which represents 2.62% of the Fund's net assets, of which $454,860 is considered restricted. Information concerning restricted currency is as follows: ACQUISITION VALUATION AS OF UNREALIZED SECURITY DATE COST MARCH 31, 2004 APPRECIATION - ------------------------------------------------------------------------------- CURRENCY Argentine Peso 3/17/04 $448,572 $454,860 $6,288 - -------------------------------------------------------------------------------- 12. BORROWING AND LENDING ARRANGEMENTS The Fund entered into an "interfund borrowing and lending arrangement" with other funds in the Oppenheimer funds complex, to allow funds to borrow for liquidity purposes. The arrangement was initiated pursuant to exemptive relief granted by the Securities and Exchange Commission (the SEC) to allow these affiliated funds to lend money to, and borrow money from, each other, in an attempt to reduce borrowing costs below those of bank loan facilities. The SEC's order requires the Fund's Board of Trustees to adopt operating policies and procedures to administer interfund borrowing and lending. Under the arrangement the Fund may lend money to other Oppenheimer funds and may borrow from other Oppenheimer funds at a rate set by the Fund's Board of Trustees, based upon a recommendation by the Manager. The Fund's borrowings, if any, are subject to asset coverage requirements under the Investment Company Act and the provisions of the SEC order and other applicable regulations. If the Fund borrows money, there is a risk that the loan could be called on one day's notice, in which case the Fund might have to borrow from a bank at higher rates if a loan were not available from another Oppenheimer fund. If the Fund lends money to another fund, it will be subject to the risk that the other fund might not repay the loan in a timely manner, or at all. 39 | OPPENHEIMER INTERNATIONAL BOND FUND NOTES TO FINANCIAL STATEMENTS UNAUDITED / CONTINUED - -------------------------------------------------------------------------------- The Fund had no interfund borrowings or loans outstanding during the six months ended or at March 31, 2004. - -------------------------------------------------------------------------------- PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES Unaudited - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which the Fund votes proxies relating to securities ("portfolio proxies") held by the Fund. A description of the Fund's Portfolio Proxy Voting Policies and Procedures is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.225.5677, (ii) on the Fund's website at www.oppenheimerfunds.com, and (iii) on the SEC's website at www.sec.gov. In addition, the Fund will be required to file new 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 first such filing is due no later than August 31, 2004, for the twelve months ended June 30, 2004. Once filed, the Fund's Form N-PX filing will be available (i) without charge, upon request, by calling the Fund toll-free at 1.800.225.5677, and (ii) on the SEC's website at www.sec.gov. 40 | OPPENHEIMER INTERNATIONAL BOND FUND ITEM 2. CODE OF ETHICS The registrant has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller or persons performing similar functions. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT The Board of Trustees of the registrant has determined that Edward L. Cameron, the Chairman of the Board's Audit Committee, and George C. Bowen, a member of the Board's Audit Committee, possess the technical attributes identified in Instruction 2(b) of Item 3 to Form N-CSR to qualify as "audit committee financial experts," and has designated Messrs. Cameron and Bowen as the Audit Committee's financial experts. Messrs. Cameron and Bowen are "independent" Trustees pursuant to paragraph (a)(2) of Item 3 to Form N-CSR. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES Not applicable to semiannual reports. ITEM 5. NOT APPLICABLE ITEM 6. SCHEDULE OF INVESTMENTS Not applicable ITEM 7. NOT APPLICABLE ITEM 8. NOT APPLICABLE ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS The Board is responsible for approving nominees for election as trustees. To assist in this task, the Board has designated the Audit Committee as the nominating committee for the Board. It reviews and recommends nominees to the Board. The Committee is comprised entirely of disinterested trustees as defined in Section 2(a)(19) of the Investment Company Act of 1940. The Audit Committee charter describes the responsibilities of the Committee in nominating candidates for election as independent Trustees of the Registrant. The Registrant's Board has adopted a written charter for the Committee. A current copy of the Audit Committee charter is available to shareholders on the OppenheimerFunds website at www.oppenheimerfunds.com. Under the current policy, if the Board determines that a vacancy exists or is likely to exist on the Board, the Audit Committee of the Board will consider candidates for Board membership including recommended by Registrant shareholders. The Audit Committee will consider nominees recommended by independent Board members or recommended by any other Board members including Board members affiliated with the Registrant's investment advisors. The Committee may, upon Board approval, retain an executive search firm to assist in screening potential candidates. Upon Board approval, the Audit Committee may also use the services of legal, financial, or other external counsel that it deems necessary or desirable in the screening process. Shareholders wishing to submit a nominee for election to the Board may do so by mailing their submission to the offices of OppenheimerFunds, Inc., 6803 South Tucson Way, Centennial, CO 80112, to the attention of the Board of Trustees of the named Registrant, c/o the Secretary of the Registrant. The Committee's process for identifying and evaluating nominees for trustees includes a number of factors. In screening candidates for board membership, whether the candidate is suggested by Board members, shareholders or others, the Committee considers the candidate's professional experience, soundness of judgment, integrity, ability to make independent, analytical inquiries, collegiality, willingness and ability to devote the time required to perform Board activities adequately, ability to represent the interests of all shareholders of the Registrant, and diversity relative to the board's composition. Candidates are expected to provide a mix of attributes, experience, perspective and skills necessary to effectively advance the interests of shareholders. ITEM 10. CONTROLS AND PROCEDURES (a) Based on their evaluation of registrant's disclosure controls and procedures (as defined in rule 30a-2(c) under the Investment Company Act of 1940 (17 CFR 270.30a-2(c)) as of March 31, 2004, registrant's principal executive officer and principal financial officer found registrant's disclosure controls and procedures to provide reasonable assurances that information required to be disclosed by registrant in the reports that it files under the Securities Exchange Act of 1934 (a) is accumulated and communicated to registrant's management, including its principal executive officer and principal financial officer, to allow timely decisions regarding required disclosure, and (b) is recorded, processed, summarized and reported, within the time periods specified in the rules and forms adopted by the U.S. Securities and Exchange Commission. (b) There have been no significant changes in registrant's internal controls over financial reporting that occurred during the registrant's last fiscal half-year that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 11. EXHIBITS. (A) EXHIBIT ATTACHED HERETO. (ATTACH CODE OF ETHICS AS EXHIBIT) (B) EXHIBITS ATTACHED HERETO. (ATTACH CERTIFICATIONS AS EXHIBITS) EX-99.CODE ETH 2 ex99_code-880.txt EX99_CODE-880.TXT EX-99.CODE ETH CODE OF ETHICS FOR PRINCIPAL EXECUTIVE AND SENIOR FINANCIAL OFFICERS OF THE OPPENHEIMER FUNDS AND OF OPPENHEIMERFUNDS, INC. This Code of Ethics for Principal Executive and Senior Financial Officers (referred to in this document as the "Code") has been adopted by each of the investment companies for which OppenheimerFunds, Inc. or one of its subsidiaries or affiliates (referred to collectively in this document as "OFI") acts as investment adviser (individually, a "Fund" and collectively, the "Funds"), and by OFI to effectuate compliance with Section 406 under the Sarbanes-Oxley Act of 2002 and the rules adopted to implement Section 406. This Code applies to each Fund's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions ("Covered Officers"). A listing of positions currently within the ambit of Covered Officers is attached as EXHIBIT A.(1) 1. Purpose of the Code This Code sets forth standards and procedures that are reasonably designed to deter wrongdoing and promote: o honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships; o full, fair, accurate, timely, and understandable disclosure in reports and documents that a Fund files with, or submits to, the U.S. Securities and Exchange Commission ("SEC") and in other public communications made by the Fund; o compliance with applicable governmental laws, rules and regulations; o the prompt internal reporting of violations of this Code to the Code Administrator identified below; and o accountability for adherence to this Code. In general, the principles that govern honest and ethical conduct, including the avoidance of conflicts of interest between personal and professional relationships, reflect, at the minimum, the following: (1) the duty at all times in performing any responsibilities as a Fund financial officer, controller, accountant or principal executive officer to place the interests of the Funds ahead of personal interests; (2) the fundamental standard that Covered Officers should not take inappropriate advantage of their positions; (3) the duty to assure that a Fund's financial statements and reports to its shareholders are prepared honestly and accurately in accordance with applicable rules, regulations and accounting standards; and (4) the duty to conduct the Funds' business and affairs in an honest and ethical manner. Each Covered Officer should be sensitive to situations that may give rise to actual as well as apparent conflicts of interest. - -------- 1 The obligations imposed by this Code on Covered Officers are separate from and in addition to any obligations that may be imposed on such persons as Covered Persons under the Code of Ethics adopted by the Oppenheimer Funds dated May 15, 2002, under Rule 17j-1 of the Investment Company Act of 1940, as amended and any other code of conduct applicable to Covered Officers in whatever capacity they serve. This Code does not incorporate by reference any provisions of the Rule 17j-1 Code of Ethics and accordingly, any violations or waivers granted under the Rule 17j-1 Code of Ethics will not be considered a violation or waiver under this Code. It is acknowledged that, as a result of the contractual relationship between each Fund and OFI, of which the Covered Officers are also officers or employees, and subject to OFI's fiduciary duties to each Fund, the Covered Officers will, in the normal course of their duties, be involved in establishing policies and implementing decisions that will have different effects on OFI and the Funds. It is further acknowledged that the participation of the Covered Officers in such activities is inherent in the contractual relationship between each Fund and OFI and is consistent with the expectations of the Board of Trustees/Directors of the performance by the Covered Officers of their duties as officers of the Funds. 2. Prohibitions The specific provisions and reporting requirements of this Code are concerned primarily with promoting honest and ethical conduct and avoiding conflicts of interest in personal and professional relationships. No Covered Officer may use information concerning the business and affairs of a Fund, including the investment intentions of a Fund, or use his or her ability to influence such investment intentions, for personal gain to himself or herself, his or her family or friends or any other person or in a manner detrimental to the interests of a Fund or its shareholders. No Covered Officer may use his or her personal influence or personal relationships to influence the preparation and issuance of financial reports of a Fund whereby the Covered Officer would benefit personally to the detriment of the Fund and its shareholders. No Covered Officer shall intentionally for any reason take any action or fail to take any action in connection with his or her official acts on behalf of a Fund that causes the Fund to violate applicable laws, rules and regulations. No Covered Officer shall, in connection with carrying out his or her official duties and responsibilities on behalf of a Fund: (i) employ any device, scheme or artifice to defraud a Fund or its shareholders; (ii) intentionally cause a Fund to make any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made, in light of the circumstances under which they are made, not misleading in its official documents, regulatory filings, financial statements or communications to the public; (iii) engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any Fund or its shareholders; (iv) engage in any manipulative practice with respect to any Fund; (v) use his or her personal influence or personal relationships to influence any business decision, investment decisions, or financial reporting by a Fund whereby the Covered Officer would benefit personally to the detriment of the Fund or its shareholders; (vi) intentionally cause a Fund to fail to comply with applicable laws, rules and regulations, including failure to comply with the requirement of full, fair, accurate, understandable and timely disclosure in reports and documents that a Fund files with, or submits to, the SEC and in other public communications made by the Fund; (vii) intentionally mislead or omit to provide material information to the Fund's independent auditors or to the Board of Trustees/Directors or the officers of the Fund or its investment adviser in connection with financial reporting matters; (viii)fail to notify the Code Administrator or the Chief Executive Officer of the Fund or its investment adviser promptly if he or she becomes aware of any existing or potential violations of this Code or applicable laws; (ix) retaliate against others for, or otherwise discourage the reporting of, actual or apparent violations of this Code; or (x) fails to acknowledge or certify compliance with this Code if requested to do so. 3. Reports of Conflicts of Interests If a Covered Officer becomes aware of a conflict of interest under this Code or, to the Covered Officer's reasonable belief, the appearance of one, he or she must immediately report the matter to the Code's Administrator. If the Code Administrator is involved or believed to be involved in the conflict of interest or appearance of conflict of interest, the Covered Officer shall report the matter directly to the OFI's Chief Executive Officer. Upon receipt of a report of a conflict, the Code Administrator will take prompt steps to determine whether a conflict of interest exists. If the Code Administrator determines that an actual conflict of interest exists, the Code Administrator will take steps to resolve the conflict. If the Code Administrator determines that the appearance of a conflict exists, the Code Administrator will take appropriate steps to remedy such appearance. If the Code Administrator determines that no conflict or appearance of a conflict exists, the Code Administrator shall meet with the Covered Officer to advise him or her of such finding and of his or her reason for taking no action. In lieu of determining whether a conflict or appearance of conflict exists, the Code Administrator may in his or her discretion refer the matter to the Fund's Board of Trustees/Directors. 4. Waivers Any Covered Officer requesting a waiver of any of the provisions of this Code must submit a written request for such waiver to the Code Administrator, setting forth the basis of such request and all necessary facts upon which such request can be evaluated. The Code Administrator shall review such request and make a written determination thereon, which shall be binding. The Code Administrator may in reviewing such request, consult at his discretion with legal counsel to OFI or to the Fund. In determining whether to waive any of the provisions of this Code, the Code Administrator shall consider whether the proposed waiver: : (i) is prohibited by this Code; (ii) is consistent with honest and ethical conduct; and (iii)will result in a conflict of interest between the Covered Officer's personal and professional obligations to a Fund. In lieu of determining whether to grant a waiver, the Code Administrator in his or her discretion may refer the matter to the appropriate Fund's Board of Trustees/Directors. 5. Reporting Requirements (a) Each Covered Officer shall, upon becoming subject to this Code, be provided with a copy of this Code and shall affirm in writing that he or she has received, read, understands and shall adhere to this Code. (b) At least annually, all Covered Officers shall be provided with a copy of this Code and shall certify that they have read and understand this Code and recognize that they are subject thereto. (c) At least annually, all Covered Officers shall certify that they have complied with the requirements of this Code and that they have disclosed or reported any violations of this Code to the Code Administrator or the Chief Executive Officer of the Fund or its investment adviser. (d) The Code Administrator shall submit a quarterly report to the Board of Trustees/Directors of each Fund containing (i) a description of any report of a conflict of interest or apparent conflict and the disposition thereof; (ii) a description of any request for a waiver from this Code and the disposition thereof; (iii) any violation of the Code that has been reported or found and the sanction imposed; (iv) interpretations issued under the Code by the Code Administrator; and (v) any other significant information arising under the Code including any proposed amendments. (e) Each Covered Officer shall notify the Code Administrator promptly if he or she knows of or has a reasonable belief that any violation of this Code has occurred or is likely to occur. Failure to do so is itself a violation of this Code. (f) Any changes to or waivers of this Code, including "implicit" waivers as defined in applicable SEC rules, will, to the extent required, be disclosed by the Code Administrator or his or her designee as provided by applicable SEC rules.(2) 6. Annual Renewal At least annually, the Board of Trustees/Directors of each Fund shall review the Code and determine whether any amendments (including any amendments that may be recommended by OFI or the Fund's legal counsel) are necessary or desirable, and shall consider whether to renew and/or amend the Code. 7. Sanctions Any violation of this Code of Ethics shall be subject to the imposition of such sanctions by OFI as may be deemed appropriate under the circumstances to achieve the purposes of this Code and may include, without limitation, a letter of censure, suspension from employment or termination of employment, in the sole discretion of OFI. 8. Administration and Construction (a) The administration of this Code of Ethics shall be the responsibility of OFI's General Counsel or his designee as the "Code Administrator" of this Code, acting under the terms of this Code and the oversight of the Trustees/Directors of the Funds. (b) The duties of such Code Administrator will include: (i) Continuous maintenance of a current list of the names of all Covered Officers; (ii) Furnishing all Covered Officers a copy of this Code and initially and periodically informing them of their duties and obligations thereunder; (iii) Maintaining or supervising the maintenance of all records required by this Code, including records of waivers granted hereunder; (iv) Issuing interpretations of this Code which appear to the Code Administrator to be consistent with the objectives of this Code and any applicable laws or regulations; (v) Conducting such inspections or investigations as shall reasonably be required to detect and report any violations of this Code, with his or her recommendations, to the Chief Executive Officer of OFI and to the Trustees/Directors of the affected Fund(s) or any committee appointed by them to deal with such information; and (vi) Periodically conducting educational training programs as needed to explain and reinforce the terms of this Code. (c) In carrying out the duties and responsibilities described under this Code, the Code Administrator may consult with legal counsel, who may include legal counsel to the applicable Funds, and such other persons as the Administrator shall deem necessary or desirable. The Code Administrator - --------- 2 An "implicit waiver" is the failure to take action within a reasonable period of time regarding a material departure from a provision of this Code that has been made known to the General Counsel, the Code Administrator, an executive officer of the Fund or OFI. shall be protected from any liability hereunder or under any applicable law, rule or regulation, for decisions made in good faith based upon his or her reasonable judgment. 9. Required Records The Administrator shall maintain and cause to be maintained in an easily accessible place, the following records for the period required by applicable SEC rules (currently six years following the end of the fiscal year of OFI in which the applicable event or report occurred): (a) A copy of any Code which has been in effect during the period; (b) A record of any violation of any such Code and of any action taken as a result of such violation, during the period; (c) A copy of each annual report pursuant to the Code made by a Covered Officer during the period; (d) A copy of each report made by the Code Administrator pursuant to this Code during the period; (e) A list of all Covered Officers who are or have been required to make reports pursuant to this Code during the period, plus those person(s) who are or were responsible for reviewing these reports; (f) A record of any request to waive any requirement of this Code, the decision thereon and the reasons supporting the decision; and (g) A record of any report of any conflict of interest or appearance of a conflict of interest received by the Code Administrator or discovered by the Code Administrator during the period, the decision thereon and the reasons supporting the decision. 10. Amendments and Modifications This Code may not be amended or modified except by an amendment in writing which is approved or ratified by OFI and by a majority vote of the Independent Trustees/Directors of each of the applicable Funds. 11. Confidentiality. This Code is identified for the internal use of the Funds and OFI. Reports and records prepared or maintained under this Code are considered confidential and shall be maintained and protected accordingly to the extent permitted by applicable laws, rules and regulations. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the Trustees/Directors of the affected Fund(s) and their counsel, the independent auditors of the affected Funds and/or OFI, and to OFI, except as such disclosure may be required pursuant to applicable judicial or regulatory process. Dated as of: June 25, 2003 Adopted by Board I of the Oppenheimer Funds June 13, 2003 /S/ ROBERT G. ZACK Robert G. Zack, Secretary Adopted by Board II of the Oppenheimer/Centennial Funds June 24, 2003 /S/ ROBERT G. ZACK Robert G. Zack, Secretary Adopted by Board III of the Oppenheimer Funds June 9, 2003 /S/ ROBERT G. ZACK Robert G. Zack, Secretary Adopted by Board IV of the Oppenheimer Funds May 21, 2003 /S/ ROBERT G. ZACK Robert G. Zack, Secretary Adopted by the Boards of Directors of OppenheimerFunds, Inc. and its subsidiaries and affiliates that act as investment adviser to the Oppenheimer or Centennial funds June 1, 2003 /S/ ROBERT G. ZACK Robert G. Zack, Senior Vice President and General Counsel EXHIBIT A POSITIONS COVERED BY THIS CODE OF ETHICS FOR SENIOR OFFICERS Each Oppenheimer or Centennial fund Principal Executive Officer Principal Financial Officer Treasurer Assistant Treasurer Personnel of OFI who by virtue of their jobs perform critical financial and accounting functions for OFI on behalf of a Fund, including: Treasurer Senior Vice President/Fund Accounting Vice President/Fund Accounting EX-99.CERT 3 ex99_302cert-880.txt EX99_302CERT-880.TXT Exhibit 99.CERT Section 302 Certifications CERTIFICATIONS I, John V. Murphy, certify that: -------------- 1. I have reviewed this report on Form N-CSR of Oppenheimer International Bond Fund; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and c) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most last fiscal half-year that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. 5. The registrant's other certifying officers and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of trustees (or persons performing the equivalent functions): a) all significant deficiencies and material weaknesses in the design or operation of internal controls which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: 5/14/04 /s/John V. Murphy ---------------------------- John V. Murphy Chief Executive Officer Exhibit 99.CERT Section 302 Certifications CERTIFICATIONS I, Brian W. Wixted, certify that: --------------- 1. I have reviewed this report on Form N-CSR of Oppenheimer International Bond Fund; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and c) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most last fiscal half-year that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. 5. The registrant's other certifying officers and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of trustees (or persons performing the equivalent functions): a) all significant deficiencies and material weaknesses in the design or operation of internal controls which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: 5/14/04 /s/Brian W. Wixted ---------------------------- Brian W. Wixted Chief Financial Officer EX-99.906 4 ex99_906cert-880.txt EX99_906CERT-880.TXT EX-99.906CERT Section 906 Certifications CERTIFICATION PURSUANT TO 18 U.S.C SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 John V. Murphy, Chief Executive Officer, and Brian W. Wixted, Chief Financial Officer, of Oppenheimer International Bond Fund (the "Registrant"), each certify to the best of his or her knowledge that: 1. The Registrant's periodic report on Form N-CSR for the period ended March 31, 2004 (the "Form N-CSR") fully complies with the requirements of Section 15(d) of the Securities Exchange Act of 1934, as amended; and 2. The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant. This certification is being furnished to the Commission solely pursuant to 18 U.S.C. ss. 1350 and is not being filed as part of the Form N-CSR filed with the Commission. Chief Executive Officer Chief Financial Officer Oppenheimer International Bond Fund Oppenheimer International Bond Fund /s/John V. Murphy /s/Brian W. Wixted - ---------------------------- ---------------------------- John V. Murphy Brian W. Wixted Date: 5/14/04 Date: 5/14/04 -----END PRIVACY-ENHANCED MESSAGE-----