-----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, Ohp3NUoBZDkiglJmu+VRAcGqf6l18S7xdRJGtw6z6kacPv2HNPoCfp+0MIwX9hj0 kmYyesyB8DdVVs4FW1+Oog== 0000935069-07-001313.txt : 20070601 0000935069-07-001313.hdr.sgml : 20070601 20070601150120 ACCESSION NUMBER: 0000935069-07-001313 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20070331 FILED AS OF DATE: 20070601 DATE AS OF CHANGE: 20070601 EFFECTIVENESS DATE: 20070601 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: 07893975 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 0000939800 S000007072 OPPENHEIMER INTERNATIONAL BOND FUND C000019293 A C000019294 B C000019295 C C000019296 N C000019297 Y N-CSRS 1 rs880_39476ncsrs.txt RS880_39476NCSRS.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: 03/31/2007 ---------- ITEM 1. REPORTS TO STOCKHOLDERS. TOP HOLDINGS AND ALLOCATIONS - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- TOP TEN GEOGRAPHICAL HOLDINGS - -------------------------------------------------------------------------------- United States 13.6% - -------------------------------------------------------------------------------- Brazil 8.5 - -------------------------------------------------------------------------------- Germany 7.4 - -------------------------------------------------------------------------------- United Kingdom 6.9 - -------------------------------------------------------------------------------- Japan 6.8 - -------------------------------------------------------------------------------- Italy 5.3 - -------------------------------------------------------------------------------- France 4.1 - -------------------------------------------------------------------------------- Russia 3.7 - -------------------------------------------------------------------------------- Australia 3.6 - -------------------------------------------------------------------------------- Turkey 3.6 Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2007, and are based on the total market value of investments. - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- REGIONAL ALLOCATION [THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.] Europe 30.2% Latin America 22.6 United States/Canada 16.2 Asia 15.1 Emerging Europe 8.0 Middle East/Africa 7.6 Supranational 0.3 Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2007, and are based on the total market value of investments. - -------------------------------------------------------------------------------- 9 | OPPENHEIMER INTERNATIONAL BOND FUND NOTES - -------------------------------------------------------------------------------- Total returns include changes in share price and reinvestment of dividends and capital gains distributions in a hypothetical investment for the periods shown. Cumulative total returns are not annualized. The Fund's total returns shown do not reflect the deduction of income taxes on an individual's investment. Taxes may reduce your actual investment returns on income or gains paid by the Fund or any gains you may realize if you sell your shares. INVESTORS SHOULD CONSIDER THE FUND'S INVESTMENT OBJECTIVES, RISKS AND OTHER CHARGES AND EXPENSES CAREFULLY BEFORE INVESTING. THE FUND'S PROSPECTUS CONTAINS THIS AND OTHER INFORMATION ABOUT THE FUND, AND MAY BE OBTAINED BY ASKING YOUR FINANCIAL ADVISOR, CALLING US AT 1.800.525.7048 OR VISITING OUR WEBSITE AT WWW.OPPENHEIMERFUNDS.COM. READ THE PROSPECTUS CAREFULLY BEFORE INVESTING. The Fund's investment strategy and focus can change over time. The mention of specific fund holdings does not constitute a recommendation by OppenheimerFunds, Inc. CLASS A shares of the Fund were first publicly offered on 6/15/95. Unless otherwise noted, Class A returns include the current maximum initial sales charge of 4.75%. CLASS B shares of the Fund were first publicly offered on 6/15/95. Unless otherwise noted, Class B returns include the applicable contingent deferred sales charge of 5% (1-year) and 2% (5-year). Because Class B shares convert to Class A shares 72 months after purchase, the 10-year return for Class B uses Class A performance for the period after conversion. Class B shares are subject to an annual 0.75% asset-based sales charge. CLASS C shares of the Fund were first publicly offered on 6/15/95. Unless otherwise noted, Class C returns include the contingent deferred sales charge of 1% for the 1-year period. Class C shares are subject to an annual 0.75% asset-based sales charge. CLASS N shares of the Fund were first publicly offered on 3/1/01. Class N shares are offered only through retirement plans. Unless otherwise noted, Class N returns include the contingent deferred sales charge of 1% for the 1-year period. Class N shares are subject to an annual 0.25% asset-based sales charge. 10 | OPPENHEIMER INTERNATIONAL BOND FUND CLASS Y shares of the Fund were first publicly offered on 9/27/04. Class Y shares are offered only to certain institutional investors under special agreement with the Distributor. An explanation of the calculation of performance is in the Fund's Statement of Additional Information. 11 | OPPENHEIMER INTERNATIONAL BOND FUND FUND EXPENSES - -------------------------------------------------------------------------------- FUND EXPENSES. As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments, contingent deferred sales charges on redemptions; and redemption fees, if any; and (2) ongoing costs, including management fees; distribution and service fees; and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The examples are based on an investment of $1,000.00 invested at the beginning of the period and held for the entire 6-month period ended March 31, 2007. ACTUAL EXPENSES. The "actual" lines of the table provide information about actual account values and actual expenses. You may use the information on this line for the class of shares you hold, together with the amount you invested, to estimate the expense that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600.00 account value divided by $1,000.00 = 8.60), then multiply the result by the number in the "actual" line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES. The "hypothetical" lines of the table provide information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio for each class of shares, and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example for the class of shares you hold with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front-end or contingent deferred sales charges (loads), or a $12.00 fee imposed annually on accounts valued at less than $500.00 (subject to exceptions described in the Statement of Additional Information). Therefore, the "hypo- 12 | OPPENHEIMER INTERNATIONAL BOND FUND FUND EXPENSES - -------------------------------------------------------------------------------- thetical" lines of the table are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. - -------------------------------------------------------------------------------- BEGINNING ENDING EXPENSES ACCOUNT ACCOUNT PAID DURING VALUE VALUE 6 MONTHS ENDED (10/1/06) (3/31/07) MARCH 31, 2007 - -------------------------------------------------------------------------------- Class A Actual $ 1,000.00 $ 1,077.60 $ 4.93 - -------------------------------------------------------------------------------- Class A Hypothetical 1,000.00 1,020.19 4.80 - -------------------------------------------------------------------------------- Class B Actual 1,000.00 1,073.30 9.40 - -------------------------------------------------------------------------------- Class B Hypothetical 1,000.00 1,015.91 9.14 - -------------------------------------------------------------------------------- Class C Actual 1,000.00 1,074.00 8.72 - -------------------------------------------------------------------------------- Class C Hypothetical 1,000.00 1,016.55 8.48 - -------------------------------------------------------------------------------- Class N Actual 1,000.00 1,075.50 7.27 - -------------------------------------------------------------------------------- Class N Hypothetical 1,000.00 1,017.95 7.07 - -------------------------------------------------------------------------------- Class Y Actual 1,000.00 1,079.80 2.86 - -------------------------------------------------------------------------------- Class Y Hypothetical 1,000.00 1,022.19 2.78 Hypothetical assumes 5% annual return before expenses. Expenses are equal to the Fund's annualized expense ratio for that class, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Those annualized expense ratios, excluding indirect expenses from affiliated fund, based on the 6-month period ended March 31, 2007 are as follows: CLASS EXPENSE RATIOS - ------------------------------- Class A 0.95% - ------------------------------- Class B 1.81 - ------------------------------- Class C 1.68 - ------------------------------- Class N 1.40 - ------------------------------- Class Y 0.55 The expense ratios reflect voluntary waivers or reimbursements of expenses by the Fund's Manager and Transfer Agent that can be terminated at any time, without advance notice. The "Financial Highlights" tables in the Fund's financial statements, included in this report, also show the gross expense ratios, without such waivers or reimbursements. - -------------------------------------------------------------------------------- 13 | OPPENHEIMER INTERNATIONAL BOND FUND STATEMENT OF INVESTMENTS March 31, 2007 / Unaudited - --------------------------------------------------------------------------------
PRINCIPAL VALUE AMOUNT SEE NOTE 1 - ---------------------------------------------------------------------------------------------------------------------------------- ASSET-BACKED SECURITIES--0.0% - ---------------------------------------------------------------------------------------------------------------------------------- Taganka Car Loan Finance plc, Automobile Asset-Backed Certificates, Series 2006-1A, Cl. C, 8.62%, 11/14/13 1,2 (Cost $1,350,000) $ 1,350,000 $ 1,350,000 - ---------------------------------------------------------------------------------------------------------------------------------- U.S. GOVERNMENT OBLIGATIONS--3.1% - ---------------------------------------------------------------------------------------------------------------------------------- U.S. Treasury Nts., 5.125%, 5/15/16 3,4 (Cost $198,506,977) 197,180,000 203,934,992 - ---------------------------------------------------------------------------------------------------------------------------------- FOREIGN GOVERNMENT OBLIGATIONS--52.3% - ---------------------------------------------------------------------------------------------------------------------------------- ARGENTINA--1.6% Argentina (Republic of) Bonds: 2%, 9/30/14 [ARP] 21,270,000 7,610,524 5.475%, 8/3/12 2 20,544,000 19,478,794 Series V, 7%, 3/28/11 47,005,000 45,807,672 Series VII, 7%, 9/12/13 17,605,000 16,883,195 - ---------------------------------------------------------------------------------------------------------------------------------- Buenos Aires (Province of) Bonds, Bonos de Consolidacion de Deudas, Series PBA1, 4/1/07 1,5 [ARP] 2,535 1,022 - ---------------------------------------------------------------------------------------------------------------------------------- Central Bank of Argentina Bonds, 2%, 2/4/18 [ARP] 22,931,998 11,036,961 - ---------------------------------------------------------------------------------------------------------------------------------- Neuquen (Province Del) Sr. Sec. Nts., 8.656%, 10/18/14 1 3,375,000 3,510,000 --------------- 104,328,168 - ---------------------------------------------------------------------------------------------------------------------------------- AUSTRALIA--3.5% New South Wales Treasury Corp. Sr. Unsec. Nts., Series 17RG, 5.50%, 3/1/17 [AUD] 82,715,000 63,822,941 - ---------------------------------------------------------------------------------------------------------------------------------- New South Wales Treasury Corp. Gtd. Bonds, 8%, 3/1/08 [AUD] 208,360,000 170,908,675 --------------- 234,731,616 - ---------------------------------------------------------------------------------------------------------------------------------- BELGIUM--1.8% Belgium (Kingdom of) Bonds, Series 44, 5%, 3/28/35 [EUR] 26,590,000 39,533,173 - ---------------------------------------------------------------------------------------------------------------------------------- Belgium (Kingdom of) Treasury Bills, 3.615%, 5/10/07 6 [EUR] 62,870,000 83,663,989 --------------- 123,197,162 - ---------------------------------------------------------------------------------------------------------------------------------- BRAZIL--2.0% Brazil (Federal Republic of) Bonds: 6%, 1/17/17 16,320,000 16,481,813 8%, 1/15/18 14,015,000 15,864,980 8.75%, 2/4/25 3,475,000 4,474,063 8.875%, 10/14/19 23,654,000 29,934,137 10.25%, 1/10/28 [BRR] 64,020,000 30,972,157 10.50%, 7/14/14 18,700,000 24,076,250 - ---------------------------------------------------------------------------------------------------------------------------------- Brazil (Federal Republic of) Nts., 7.875%, 3/7/15 4,000,000 4,564,000 - ---------------------------------------------------------------------------------------------------------------------------------- Brazil (Federal Republic of) Unsec. Bonds, 4.75%, 4/10/07 1 [JPY] 500,000,000 4,258,953 --------------- 130,626,353
14 | OPPENHEIMER INTERNATIONAL BOND FUND
PRINCIPAL VALUE AMOUNT SEE NOTE 1 - ---------------------------------------------------------------------------------------------------------------------------------- BULGARIA--0.1% Bulgaria (Republic of) Bonds: 8.25%, 1/15/15 $ 1,500,000 $ 1,781,250 8.25%, 1/15/15 7 1,440,000 1,710,000 --------------- 3,491,250 - ---------------------------------------------------------------------------------------------------------------------------------- CANADA--2.6% Canada (Government of) Bonds, 5.25%, 6/1/12 [CAD] 125,120,000 114,513,249 - ---------------------------------------------------------------------------------------------------------------------------------- Canada (Government of) Treasury Bills, 4.059%, 5/3/07 6,8,9 [CAD] 67,280,000 58,069,721 --------------- 172,582,970 - ---------------------------------------------------------------------------------------------------------------------------------- COLOMBIA--1.1% Colombia (Republic of) Bonds: 7.375%, 9/18/37 3,390,000 3,698,490 10.75%, 1/15/13 10,000,000 12,450,000 12%, 10/22/15 [COP] 64,578,000,000 34,049,199 - ---------------------------------------------------------------------------------------------------------------------------------- Colombia (Republic of) Nts.: 8.25%, 12/22/14 6,655,000 7,590,028 11.75%, 3/1/10 [COP] 35,992,780,000 17,402,750 --------------- 75,190,467 - ---------------------------------------------------------------------------------------------------------------------------------- COSTA RICA--0.1% Costa Rica (Republic of) Unsec. Bonds, 9.995%, 8/1/20 2,730,000 3,595,410 - ---------------------------------------------------------------------------------------------------------------------------------- DENMARK--0.5% Denmark (Kingdom of) Bonds: 4%, 11/15/10 [DKK] 57,430,000 10,288,905 4%, 11/15/15 [DKK] 42,400,000 7,587,911 7%, 11/10/24 [DKK] 15,475,000 3,729,648 - ---------------------------------------------------------------------------------------------------------------------------------- Denmark (Kingdom of) Nts., 4%, 8/15/08 [DKK] 61,095,000 10,932,749 --------------- 32,539,213 - ---------------------------------------------------------------------------------------------------------------------------------- DOMINICAN REPUBLIC--0.0% Dominican Republic Unsec. Unsub. Bonds, Series REGS, 9.04%, 1/23/18 2,705,118 3,137,937 - ---------------------------------------------------------------------------------------------------------------------------------- EL SALVADOR--0.1% El Salvador (Republic of) Bonds: 7.625%, 9/21/34 7 1,185,000 1,371,638 7.65%, 6/15/35 7 4,630,000 5,301,350 --------------- 6,672,988 - ---------------------------------------------------------------------------------------------------------------------------------- FRANCE--4.0% France (Government of) Bonds, 3.25%, 4/25/16 10 [EUR] 81,760,000 102,542,127 - ---------------------------------------------------------------------------------------------------------------------------------- France (Government of) Obligations Assimilables du Tresor Bonds, 4%, 4/25/55 [EUR] 72,835,000 92,595,382 - ---------------------------------------------------------------------------------------------------------------------------------- France (Government of) Treasury Bills, 3.574%, 5/10/07 6 [EUR] 50,855,000 67,668,081 --------------- 262,805,590
15 | OPPENHEIMER INTERNATIONAL BOND FUND STATEMENT OF INVESTMENTS Unaudited / Continued - --------------------------------------------------------------------------------
PRINCIPAL VALUE AMOUNT SEE NOTE 1 - ---------------------------------------------------------------------------------------------------------------------------------- GERMANY--7.3% Germany (Federal Republic of) Bonds: Series 03, 3.75% 7/4/13 [EUR] 85,350,000 $ 112,281,329 Series 05, 4%, 1/4/37 [EUR] 103,810,000 133,002,272 - ---------------------------------------------------------------------------------------------------------------------------------- Germany (Federal Republic of) Treasury Bills, Series 0107, 3.802%, 7/18/07 6 [EUR] 180,385,000 238,314,515 --------------- 483,598,116 - ---------------------------------------------------------------------------------------------------------------------------------- GREECE--1.3% Greece (Republic of) Bonds, 4.60%, 5/20/13 [EUR] 61,620,000 84,303,476 - ---------------------------------------------------------------------------------------------------------------------------------- GUATEMALA--0.0% Guatemala (Republic of) Nts.: 10.25%, 11/8/11 1 160,000 187,600 10.25%, 11/8/11 1 525,000 615,563 --------------- 803,163 - ---------------------------------------------------------------------------------------------------------------------------------- INDONESIA--0.3% Indonesia (Republic of) Nts.: 6.75%, 3/10/14 7 5,170,000 5,402,650 7.25%, 4/20/15 7 7,450,000 8,073,938 - ---------------------------------------------------------------------------------------------------------------------------------- Indonesia (Republic of) Unsec. Nts., 8.50%, 10/12/35 7 6,540,000 8,027,850 --------------- 21,504,438 - ---------------------------------------------------------------------------------------------------------------------------------- ISRAEL--0.7% Israel (State of) Bonds, Series 2682, 7.50%, 3/31/14 [ILS] 161,700,000 44,010,556 - ---------------------------------------------------------------------------------------------------------------------------------- ITALY--3.9% Italy (Republic of) Nts., Certificati di Credito del Tesoro, 4%, 7/1/09 2 [EUR] 192,825,000 258,897,938 - ---------------------------------------------------------------------------------------------------------------------------------- JAPAN--6.7% Japan (Government of) Bonds: 2 yr., Series 252, 0.80%, 1/15/09 [JPY] 19,993,000,000 169,742,843 10 yr., Series 245, 0.90%, 12/20/12 [JPY] 9,397,000,000 77,327,486 10 yr., Series 268, 1.50%, 3/20/15 [JPY] 9,820,000,000 83,466,667 30 yr., Series 25, 2.30%, 12/20/36 [JPY] 13,547,000,000 114,153,938 --------------- 444,690,934 - ---------------------------------------------------------------------------------------------------------------------------------- MALAYSIA--0.7% Johor Corp. Malaysia (Government of) Bonds, Series P3, 1%, 7/31/12 1 [MYR] 107,980,000 35,134,490 - ---------------------------------------------------------------------------------------------------------------------------------- Malaysia (Government of) Bonds, Series 2/05, 4.72%, 9/30/15 [MYR] 39,730,000 12,264,303 --------------- 47,398,793 - ---------------------------------------------------------------------------------------------------------------------------------- MEXICO--0.4% Mexican Williams Sr. Nts., 6.128%, 11/15/08 1,2 500,000 515,313 - ---------------------------------------------------------------------------------------------------------------------------------- United Mexican States Bonds, Series M30, 10%, 11/20/36 [MXN] 223,830,000 26,107,718 --------------- 26,623,031
16 | OPPENHEIMER INTERNATIONAL BOND FUND
PRINCIPAL VALUE AMOUNT SEE NOTE 1 - ---------------------------------------------------------------------------------------------------------------------------------- NIGERIA--0.6% Nigeria (Federal Republic of) Bonds, Series 5Y, 13.50%, 9/11/11 [NGN] 437,980,000 $ 3,833,823 - ---------------------------------------------------------------------------------------------------------------------------------- Nigeria (Federal Republic of) Nts.: Series 3Y2S, 12.50%, 2/24/09 [NGN] 356,000,000 2,945,938 Series 3Y7S, 17%, 12/16/08 [NGN] 570,000,000 5,007,268 - ---------------------------------------------------------------------------------------------------------------------------------- Nigeria (Federal Republic of) Promissory Nts., Series RC, 5.092%, 1/5/10 379,485 338,557 - ---------------------------------------------------------------------------------------------------------------------------------- Nigeria (Federal Republic of) Treasury Bonds: Series 5Y13, 12.99%, 9/29/11 [NGN] 866,700,000 7,552,720 Series 7Y16, 11.99%, 12/22/13 1 [NGN] 1,422,500,000 11,840,270 Series 7YR, 12.74%, 10/27/13 1 [NGN] 1,050,600,000 9,052,649 --------------- 40,571,225 - ---------------------------------------------------------------------------------------------------------------------------------- PANAMA--0.3% Panama (Republic of) Bonds: 6.70%, 1/26/36 11 2,720,000 2,836,960 7.25%, 3/15/15 15,905,000 17,304,640 9.375%, 4/1/29 1,650,000 2,206,875 --------------- 22,348,475 - ---------------------------------------------------------------------------------------------------------------------------------- PERU--2.2% Peru (Republic of) Bonds: 7.84%, 8/12/20 [PEN] 150,435,000 54,131,311 8.20%, 8/12/26 1 [PEN] 34,690,000 13,231,251 9.91%, 5/5/15 [PEN] 128,732,000 50,898,287 Series 7, 8.60%, 8/12/17 [PEN] 56,965,000 21,356,818 Series 8-1, 12.25%, 8/10/11 [PEN] 18,633,000 7,327,233 - ---------------------------------------------------------------------------------------------------------------------------------- Peru (Republic of) Sr. Nts., 4.533%, 2/28/16 6 2,410,062 1,423,527 --------------- 148,368,427 - ---------------------------------------------------------------------------------------------------------------------------------- PHILIPPINES--0.4% Philippines (Republic of the) Bonds, 8%, 1/15/16 2,910,000 3,291,938 - ---------------------------------------------------------------------------------------------------------------------------------- Philippines (Republic of the) Sr. Unsec. Bonds, 6.375%, 1/15/32 4,265,000 4,163,706 - ---------------------------------------------------------------------------------------------------------------------------------- Philippines (Republic of the) Unsec. Bonds: 7.75%, 1/14/31 4,844,000 5,485,830 9%, 2/15/13 12,145,000 14,042,656 --------------- 26,984,130 - ---------------------------------------------------------------------------------------------------------------------------------- POLAND--1.2% Poland (Republic of) Bonds: Series 0K0807, 4.191%, 8/12/07 6 [PLZ] 43,990,000 14,972,587 Series DS1013, 5%, 10/24/13 [PLZ] 79,840,000 27,431,399 Series WS0922, 5.75%, 9/23/22 [PLZ] 10,000,000 3,609,960 Series 0511, 4.25%, 5/24/11 [PLZ] 97,965,000 32,953,663 --------------- 78,967,609
17 | OPPENHEIMER INTERNATIONAL BOND FUND STATEMENT OF INVESTMENTS Unaudited / Continued - --------------------------------------------------------------------------------
PRINCIPAL VALUE AMOUNT SEE NOTE 1 - ---------------------------------------------------------------------------------------------------------------------------------- SPAIN--2.0% Spain (Government of) Bonds, 3.80%, 1/31/17 [EUR] 30,885,000 $ 40,280,296 - ---------------------------------------------------------------------------------------------------------------------------------- Spain (Government of) Treasury Bills, 3.715%, 10/19/07 6 [EUR] 70,675,000 92,416,397 --------------- 132,696,693 - ---------------------------------------------------------------------------------------------------------------------------------- TURKEY--1.6% Turkey (Republic of) Bonds: 7%, 9/26/16 22,085,000 22,581,913 Series CPI, 10%, 2/15/12 [TRY] 6,800,000 4,898,965 - ---------------------------------------------------------------------------------------------------------------------------------- Turkey (Republic of) Nts.: 7.25%, 3/15/15 8,615,000 8,981,138 9.50%, 1/15/14 1,610,000 1,878,548 11%, 1/14/13 3,850,000 4,728,262 16%, 3/7/12 [TRY] 70,985,000 48,150,472 19.868%, 7/16/08 6 [TRY] 8,755,000 4,971,720 20.493%, 8/13/08 6 [TRY] 15,945,000 8,930,517 --------------- 105,121,535 - ---------------------------------------------------------------------------------------------------------------------------------- UKRAINE--0.1% Ukraine (Government of) Bonds, 7.65%, 6/11/13 7,655,000 8,343,950 - ---------------------------------------------------------------------------------------------------------------------------------- UNITED KINGDOM--4.3% United Kingdom Treasury Bonds: 5%, 3/7/08 [GBP] 43,745,000 85,696,022 6%, 12/7/28 [GBP] 50,025,000 116,844,114 - ---------------------------------------------------------------------------------------------------------------------------------- United Kingdom Treasury Nts., 4%, 3/7/09 [GBP] 44,640,000 85,550,996 --------------- 288,091,132 - ---------------------------------------------------------------------------------------------------------------------------------- URUGUAY--0.9% Uruguay (Oriental Republic of) Bonds: 4.25%, 4/5/27 [UYU] 248,600,000 10,437,699 7.625%, 3/21/36 12,640,000 13,998,800 - ---------------------------------------------------------------------------------------------------------------------------------- Uruguay (Oriental Republic of) Unsec. Bonds: 5%, 9/14/18 [UYU] 403,060,000 18,889,817 8%, 11/18/22 12,685,000 14,460,900 --------------- 57,787,216 --------------- Total Foreign Government Obligations (Cost $3,339,705,038) 3,474,009,961
18 | OPPENHEIMER INTERNATIONAL BOND FUND
PRINCIPAL VALUE AMOUNT SEE NOTE 1 - ---------------------------------------------------------------------------------------------------------------------------------- LOAN PARTICIPATIONS--0.2% - ---------------------------------------------------------------------------------------------------------------------------------- Credit Suisse First Boston International, Export-Import Bank of Ukraine Loan Participation Nts., 8.40%, 2/9/16 $ 5,890,000 $ 6,125,600 - ---------------------------------------------------------------------------------------------------------------------------------- Dali Capital plc/Bank of Moscow Loan Participation Nts., Series 28, Tranche 1, 7.25%, 11/25/09 [RUR] 72,600,000 2,824,772 - ---------------------------------------------------------------------------------------------------------------------------------- Dali Capital SA (ROSBANK) Loan Participation Nts., Series 23, Tranche 1, 8%, 9/30/09 [RUR] 71,200,000 2,756,599 --------------- Total Loan Participations (Cost $11,138,643) 11,706,971 - ---------------------------------------------------------------------------------------------------------------------------------- CORPORATE BONDS AND NOTES--12.7% - ---------------------------------------------------------------------------------------------------------------------------------- AES Dominicana Energia Finance SA, 11% Sr. Nts., 12/13/15 1 7,923,000 8,200,305 - ---------------------------------------------------------------------------------------------------------------------------------- AES Panama SA, 6.35% Sr. Nts., 12/21/16 7 2,225,000 2,223,138 - ---------------------------------------------------------------------------------------------------------------------------------- African Development Bank, 9.25% Bonds, 1/18/08 [NGN] 1,289,400,000 10,300,084 - ---------------------------------------------------------------------------------------------------------------------------------- Alrosa Finance SA: 8.875% Nts., 11/17/14 4,240,000 4,886,600 8.875% Nts., 11/17/14 7 7,625,000 8,787,813 - ---------------------------------------------------------------------------------------------------------------------------------- America Movil SAB de CV, 8.46% Bonds, 12/18/36 1 [MXN] 140,800,000 12,913,815 - ---------------------------------------------------------------------------------------------------------------------------------- Astana-finance: 7.625% Unsec. Bonds, 2/16/09 2,375,000 2,384,749 9% Sr. Unsec. Unsub. Bonds, 11/16/11 1,895,000 1,934,615 - ---------------------------------------------------------------------------------------------------------------------------------- Autopistas del Nordeste Cayman Ltd., 9.39% Nts., 1/15/26 1 8,731,632 9,211,872 - ---------------------------------------------------------------------------------------------------------------------------------- Banco Bilbao Vizcaya Argentaria SA, 4.25% Sec. Bonds, 7/15/14 [EUR] 16,330,000 21,808,891 - ---------------------------------------------------------------------------------------------------------------------------------- Banco BMG SA, 9.15% Nts., 1/15/16 7 9,710,000 10,438,250 - ---------------------------------------------------------------------------------------------------------------------------------- Banco de Credito del Peru, 6.95% Sub. Nts., 11/7/21 1,2 2,750,000 2,743,125 - ---------------------------------------------------------------------------------------------------------------------------------- Banco Hipotecario SA, 9.75% Sr. Unsec. Nts., 4/27/16 1 4,325,000 4,584,500 - ---------------------------------------------------------------------------------------------------------------------------------- C10 Capital SPV Ltd., 6.722% Unsec. Perpetual Debs. 7,12 6,700,000 6,619,774 - ---------------------------------------------------------------------------------------------------------------------------------- Cloverie plc, 9.60% Sec. Nts., Series 2005-93, 12/20/10 1,2 3,600,000 3,628,800 - ---------------------------------------------------------------------------------------------------------------------------------- Depfa ACS Bank, 3.50% Sec. Nts., 3/16/11 [EUR] 22,315,000 29,114,071 - ---------------------------------------------------------------------------------------------------------------------------------- Eletropaulo Metropolitana SA, 19.125% Nts., 6/28/10 1 [BRR] 13,295,000 7,549,944 - ---------------------------------------------------------------------------------------------------------------------------------- Gaz Capital SA, 8.625% Sr. Unsec. Nts., 4/28/34 7 4,440,000 5,716,500 - ---------------------------------------------------------------------------------------------------------------------------------- Halyk Savings Bank Kazakhstan Europe BV, 7.75% Nts., 5/13/13 7 4,400,000 4,636,500 - ---------------------------------------------------------------------------------------------------------------------------------- HBOS Treasury Services plc: 4.375% Sr. Sec. Nts., 7/13/16 [EUR] 63,120,000 84,743,906 4.50% Sr. Sec. Nts., 7/13/21 [EUR] 59,070,000 79,341,160 - ---------------------------------------------------------------------------------------------------------------------------------- HSBC Bank plc: 11.601% Sr. Unsec. Nts., 1/12/10 1,6 42,800,000 26,129,400 12.278% Sr. Unsec. Nts., 3/9/09 1,6 30,220,000 20,703,722 9.751% Sr. Unsec. Nts., 7/8/09 1,6 30,220,000 21,833,950 - ---------------------------------------------------------------------------------------------------------------------------------- ICICI Bank Ltd., 6.375% Bonds, 4/30/22 2,7 5,545,000 5,506,107 - ---------------------------------------------------------------------------------------------------------------------------------- IIRSA Norte Finance Ltd., 8.75% Sr. Nts., 5/30/24 7 8,915,092 10,519,809
19 | OPPENHEIMER INTERNATIONAL BOND FUND STATEMENT OF INVESTMENTS Unaudited / Continued - --------------------------------------------------------------------------------
PRINCIPAL VALUE AMOUNT SEE NOTE 1 - ---------------------------------------------------------------------------------------------------------------------------------- CORPORATE BONDS AND NOTES Continued - ---------------------------------------------------------------------------------------------------------------------------------- Inter-American Development Bank: 6.26% Nts., 12/8/09 2 [BRR] 11,200,000 $ 5,472,795 7.889% Nts., 1/25/12 2 [COP] 12,072,857,239 5,818,134 - ---------------------------------------------------------------------------------------------------------------------------------- International Bank for Reconstruction & Development (The), 15% Nts., 1/7/10 1 [TRY] 3,000,000 2,028,017 - ---------------------------------------------------------------------------------------------------------------------------------- ISA Capital do Brasil SA: 7.875% Sr. Nts., 1/30/12 7 2,225,000 2,284,519 8.80% Sr. Nts., 1/30/17 7 2,780,000 2,960,005 - ---------------------------------------------------------------------------------------------------------------------------------- JP Morgan Hipotecaria su Casita, 6.56% Sec. Nts., 8/26/35 7,11 [MXN] 41,757,200 3,782,955 - ---------------------------------------------------------------------------------------------------------------------------------- JPMorgan, Red Square Capital Ltd., 9% CDO Nts., 11/20/08 11 [RUR] 365,000,000 13,906,688 - ---------------------------------------------------------------------------------------------------------------------------------- Kuznetski Capital SA/Bank of Moscow, 7.375% Nts., 11/26/10 7 2,780,000 2,905,100 - ---------------------------------------------------------------------------------------------------------------------------------- Majapahit Holding BV: 7.25% Nts., 10/17/11 7 2,860,000 2,945,800 7.75% Nts., 10/17/16 7 2,640,000 2,778,600 - ---------------------------------------------------------------------------------------------------------------------------------- MHP SA, 10.25% Sr. Sec. Sub. Bonds, 11/30/11 7 2,745,000 2,841,075 - ---------------------------------------------------------------------------------------------------------------------------------- National Gas Co., 6.05% Nts., 1/15/36 7 4,945,000 4,805,210 - ---------------------------------------------------------------------------------------------------------------------------------- National Power Corp.: 5.875% Unsec. Unsub. Bonds, 12/19/16 [PHP] 665,100,000 13,784,456 6.875% Nts., 11/2/16 7 2,739,000 2,804,051 9.625% Unsec. Bonds, 5/15/28 5,095,000 6,451,544 - ---------------------------------------------------------------------------------------------------------------------------------- Nordic Investment Bank, 12.50% Sr. Unsec. Nts., 2/15/09 1 [TRY] 5,000,000 3,279,454 - ---------------------------------------------------------------------------------------------------------------------------------- Ongko International Finance Co. BV, 10.50% Sec. Nts., 3/29/10 1,5,13 550,000 -- - ---------------------------------------------------------------------------------------------------------------------------------- Petroleum Export Ltd. Cayman SPV, 5.265% Sr. Nts., Cl. A3, 6/15/11 7 11,504,278 11,264,713 - ---------------------------------------------------------------------------------------------------------------------------------- Piazza Vittoria Finance SrL, 4.454% Asset-Backed Nts., 7/20/10 2 [EUR] 47,470,370 63,292,558 - ---------------------------------------------------------------------------------------------------------------------------------- RSHB Capital SA/OJSC Russian Agricultural Bank, 7.175% Nts., 5/16/13 7 3,820,000 4,044,425 - ---------------------------------------------------------------------------------------------------------------------------------- Salisbury International Investments Ltd., 9.51% Sec. Nts., Series 2006-003, Tranche E, 7/20/11 1,2 2,400,000 2,400,000 - ---------------------------------------------------------------------------------------------------------------------------------- Telefonica del Peru SA, 8% Sr. Unsec. Bonds, 4/11/16 1 [PEN] 26,033,700 9,129,587 - ---------------------------------------------------------------------------------------------------------------------------------- Tengizchevroil LLP, 6.124% Nts., 11/15/14 7 5,840,000 5,840,000 - ---------------------------------------------------------------------------------------------------------------------------------- Tiers-BSP, 0%/8.60% Collateralized Trust, Cl. A, 6/15/97 14 6,065,000 2,553,717 - ---------------------------------------------------------------------------------------------------------------------------------- Vitro SA de CV: 8.625% Sr. Unsec. Unsub. Nts., 2/1/12 7 2,775,000 2,816,625 9.125% Sr. Unsec. Nts., 2/1/17 7 4,715,000 4,809,300 - ---------------------------------------------------------------------------------------------------------------------------------- VTB Capital SA, 6.25% Sr. Nts., 6/30/35 7 2,950,000 3,056,938 - ---------------------------------------------------------------------------------------------------------------------------------- WM Covered Bond Program: 3.875% Sec. Nts., Series1, 9/27/11 [EUR] 71,760,000 94,406,497 4% Sec. Mtg. Nts., Series 2, 9/27/16 [EUR] 121,045,000 157,284,604 --------------- Total Corporate Bonds and Notes (Cost $840,094,809) 846,208,767
20 | OPPENHEIMER INTERNATIONAL BOND FUND
VALUE SHARES SEE NOTE 1 - ---------------------------------------------------------------------------------------------------------------------------------- COMMON STOCKS--0.1% - ---------------------------------------------------------------------------------------------------------------------------------- Okumura Corp. 3 459,000 $ 2,500,151 - ---------------------------------------------------------------------------------------------------------------------------------- Societe des Autoroutes Paris-Rhin-Rhone 21,812 1,987,174 --------------- Total Common Stocks (Cost $4,305,601) 4,487,325 UNITS - ---------------------------------------------------------------------------------------------------------------------------------- RIGHTS, WARRANTS AND CERTIFICATES--0.0% - ---------------------------------------------------------------------------------------------------------------------------------- Venezuela (Republic of) Oil Linked Payment Obligation Wts., Exp. 4/15/20 1,13 (Cost $0) 500 18,250 PRINCIPAL AMOUNT - ---------------------------------------------------------------------------------------------------------------------------------- STRUCTURED NOTES--25.6% - ---------------------------------------------------------------------------------------------------------------------------------- Citigroup Global Markets Holdings, Inc.: Argentina (Republic of) Credit Linked Nts., 11.083%, 5/22/08 1,15 [ARP] 11,655,000 10,426,030 Argentina (Republic of) Credit Linked Nts., 4%, 5/18/09 1 [ARP] 7,884,000 7,050,885 Argentina (Republic of) Unsec. Credit Linked Nts., 15.40%, 4/16/10 15 [ARP] 6,931,968 3,649,923 Brazil (Federal Republic of) Unsec. Credit Linked Nts., 10%, 1/5/10 [BRR] 38,356,000 18,344,902 Brazil (Federal Republic of) Unsec. Credit Linked Nts., 10%, 1/5/10 [BRR] 59,878,000 28,638,442 Brazil (Federal Republic of) Unsec. Credit Linked Nts., 10%, 1/5/10 [BRR] 100,000,000 47,827,986 Brazil (Federal Republic of) Unsec. Credit Linked Nts., 14.809%, 1/5/10 6 [BRR] 32,035,902 11,467,805 Brazil (Federal Republic of) Unsec. Credit Linked Nts., 15.427%, 1/2/09 6 [BRR] 28,074,132 11,221,886 Brazil (Federal Republic of) Unsec. Credit Linked Nts., 15.728%, 1/3/08 6 [BRR] 4,719,335 11,022,978 Colombia (Republic of) Credit Linked Bonds, 11%, 7/24/20 [COP] 12,570,000,000 6,184,418 Colombia (Republic of) Credit Linked Nts., Series II, 15%, 4/27/12 [COP] 6,942,469,928 3,770,269 Colombia (Republic of) Unsec. Credit Linked Nts., 15%, 4/27/12 [COP] 31,110,000,000 16,895,005 Colombia (Republic of) Unsec. Credit Linked Nts., 15%, 4/27/12 [COP] 12,430,000,000 6,750,399 Colombia (Republic of) Unsec. Credit Linked Nts., 15%, 4/27/12 [COP] 11,705,100,000 6,356,725 Dominican Republic Credit Linked Nts., 10.105%, 7/2/07 (linked to Dominican Republic Treasury Bills) 6 [DOP] 97,400,000 2,944,671 Dominican Republic Credit Linked Nts., 11.01%, 9/4/07 (linked to Dominican Republic Treasury Bills) 6 [DOP] 169,790,000 5,046,621 Dominican Republic Credit Linked Nts., 14.608%, 5/14/07 (linked to Dominican Republic Treasury Bills) 6 [DOP] 189,200,000 5,810,165 Dominican Republic Credit Linked Nts., 22%, 10/3/11 [DOP] 158,100,000 6,188,919 Dominican Republic Credit Linked Nts., Series II, 15.603%, 4/23/07 (linked to Dominican Republic Treasury Bills) 6 [DOP] 118,210,000 3,636,081 Dominican Republic Unsec. Credit Linked Nts., 11.648%, 9/24/07 (linked to Dominican Republic Treasury Bills) 6 [DOP] 57,500,000 1,700,596 Dominican Republic Unsec. Credit Linked Nts., 15%, 3/12/12 (linked to Dominican Republic Treasury Bills) [DOP] 289,700,000 9,054,312 Dominican Republic Unsec. Credit Linked Nts., 15.638%, 4/30/07 (linked to Dominican Republic Treasury Bills) 6 [DOP] 108,450,000 3,335,868 Dominican Republic Unsec. Credit Linked Nts., 9.696%, 3/10/08 (linked to Dominican Republic Treasury Bills) 6 [DOP] 196,300,000 5,496,946 Dominican Republic Unsec. Credit Linked Nts., Series II, 15.736%, 4/30/07 (linked to Dominican Republic Treasury Bills) 6 [DOP] 237,770,000 7,301,707
21 | OPPENHEIMER INTERNATIONAL BOND FUND STATEMENT OF INVESTMENTS Unaudited / Continued - --------------------------------------------------------------------------------
PRINCIPAL VALUE AMOUNT SEE NOTE 1 - ---------------------------------------------------------------------------------------------------------------------------------- STRUCTURED NOTES Continued - ---------------------------------------------------------------------------------------------------------------------------------- Citigroup Global Markets Holdings, Inc.: Continued Egypt (The Arab Republic of) Credit Linked Nts., 8.226%, 6/28/07 (linked to Egyptian Treasury Bills) 1,6 [EGP] 36,460,000 $ 6,271,472 Egypt (The Arab Republic of) Credit Linked Nts., 8.70%, 7/12/07 (linked to Egyptian Treasury Bills) 1,6 [EGP] 51,690,000 8,863,048 Egypt (The Arab Republic of) Unsec. Credit Linked Nts., 8.376%, 2/28/08 (linked to Egyptian Treasury Bills) 1,6 [EGP] 54,300,000 8,840,903 Egypt (The Arab Republic of) Unsec. Credit Linked Nts., 8.50%, 2/16/08 [EGP] 34,150,000 6,020,352 Nigeria (Federal Republic of) Credit Linked Nts., 12.474%, 7/22/07 6 [NGN] 1,606,440,000 12,233,803 Nigeria (Federal Republic of) Credit Linked Nts., 14.50%, 3/1/11 [NGN] 2,672,000,000 23,858,172 Nigeria (Federal Republic of) Credit Linked Nts., Series II, 14.50%, 4/4/11 [NGN] 2,032,000,000 18,193,507 Russian Federation Credit Linked Nts., 7.65%, 12/4/08 1,2 [RUR] 41,690,000 1,624,511 Ukraine Hryvnia Unsec. Credit Linked Nts., 11.94%, 1/4/10 [UAH] 13,799,000 2,968,736 Zambia (Republic of) Credit Linked Nts., 8.833%, 2/21/08 (linked to Zambian Treasury Bills) 6 [ZMK] 38,315,000,000 8,179,573 - ---------------------------------------------------------------------------------------------------------------------------------- Credit Suisse First Boston International: Boryspil Airport Total Return Linked Nts., 10%, 4/19/10 2,11 [UAH] 49,215,000 10,112,884 EES Total Return Linked Nts., 7.10%, 12/12/08 2 [RUR] 72,800,000 2,811,541 Gazprom Total Return Linked Nts., 6.79%, 10/29/09 [RUR] 144,790,000 5,742,419 Gazprom Total Return Linked Nts., Series 002, 6.95%, 8/6/09 [RUR] 141,750,000 5,548,150 Indonesia (Republic of) Total Return Linked Nts., 12%, 9/16/11 [IDR] 116,800,000,000 14,198,912 Lukoil Credit Linked Nts., Series Fbi 105, 7.25%, 11/17/09 1,2 [RUR] 321,528,000 12,500,959 Moitk Total Return Linked Nts., 8.966%, 3/26/11 2 [RUR] 352,714,000 13,581,116 Moscow (City of) Credit Linked Nts., Series Fbi 101, 10%, 12/31/10 1 [RUR] 277,800,000 12,011,603 Moscow (City of) Credit Linked Nts., Series Fbi 98, 11%, 4/23/09 [RUR] 280,840,000 11,995,948 Orenburgskaya IZHK Total Return Linked Nts., 9.24%, 2/21/12 2 [RUR] 64,940,000 2,499,240 South African Rand Interest Bearing Linked Nts., Series Fbi 43, 5.245%, 5/23/22 2 2,100,000 2,059,890 Turkey (Republic of) Credit Linked Nts., Series EMG 59, 21.41%, 7/16/08 6 [TRY] 28,495,000 16,179,960 Ukraine (Republic of) Credit Linked Nts., Series EMG 13, 11.94%, 12/30/09 [UAH] 30,400,000 6,681,303 Vietnam Shipping Industry Group Total Return Linked Nts., 10.50%, 1/19/17 1 [VND] 85,958,000,000 5,655,897 - ---------------------------------------------------------------------------------------------------------------------------------- Credit Suisse First Boston, Inc. (Nassau Branch): Turkey (Republic of) Credit Linked Nts., Series 2, 20.853%, 7/16/08 6 [TRY] 39,420,000 22,383,367 Ukraine (Republic of) Credit Linked Nts., Series EMG 11, 11.94%, 12/30/09 [UAH] 9,163,000 2,013,841 Ukraine (Republic of) Credit Linked Nts., Series NPC 12, 11.94%, 12/30/09 [UAH] 65,490,000 14,393,372 - ---------------------------------------------------------------------------------------------------------------------------------- Deutsche Bank AG: Argentina (Republic of) Credit Linked Nts., 11.077%, 12/21/11 [ARP] 35,580,000 31,460,815 Arrendadora Capita Corp. SA de CV/Capita Corp. (The) de Mexico SA de CV Credit Linked Nts., 9.09%, 1/5/11 1 [MXN] 118,305,720 10,691,002 Arrendadora Capita Corp. SA de CV/Capita Corp. (The) de Mexico SA de CV Credit Linked Nts., 9.65%, 1/5/11 1 [MXN] 78,011,604 7,076,223 Borhis Total Return Linked Nts., 6.45%, 3/15/34 [MXN] 25,990,000 8,707,089
22 | OPPENHEIMER INTERNATIONAL BOND FUND
PRINCIPAL VALUE AMOUNT SEE NOTE 1 - ---------------------------------------------------------------------------------------------------------------------------------- STRUCTURED NOTES Continued - ---------------------------------------------------------------------------------------------------------------------------------- Deutsche Bank AG: Continued Brazil Real Credit Linked Nts., 13.882%, 3/3/10 6 [BRR] 61,128,560 $ 27,091,437 Brazil Real Credit Linked Nts., 6%, 8/18/10 [BRR] 15,895,000 12,044,944 Colombia (Republic of) Credit Linked Nts., 13.50%, 9/15/14 1 [COP] 13,259,000,000 7,132,405 Colombia (Republic of) Total Return Linked Bonds, Series 002, 11%, 7/28/20 [COP] 24,620,000,000 12,166,873 Compania Total Return Linked Nts., 4.454%, 7/22/10 [EUR] 19,753,600 26,352,383 Egypt (The Arab Republic of) Credit Linked Nts., 9.381%, 2/5/08 (linked to Egyptian Treasury Bills) 1,6 [EGP] 36,510,000 5,955,048 Egypt (The Arab Republic of) Total Return Linked Nts., 10.029%, 9/12/07 (linked to Egyptian Treasury Bills) 1,6 [EGP] 71,360,000 11,993,240 European Investment Bank, Russian Federation Credit Linked Nts., 5.502%, 1/19/10 6 8,475,000 7,434,270 Grupo TMM SA Credit Linked Nts., 6%, 9/7/12 1 5,165,807 5,191,797 Halyk Bank of Kazakhstan Total Return Linked Nts., Series I, 7.25%, 3/20/09 [KZT] 2,003,690,000 16,141,515 Indonesia (Republic of) Credit Linked Nts., 9.50%, 6/22/15 10,300,162 10,516,465 Indonesia (Republic of) Credit Linked Nts., Series III, 14.25%, 6/15/13 12,412,800 15,705,916 Nigeria (Federal Republic of) Credit Linked Nts., 12.50%, 2/24/09 [NGN] 525,300,000 4,326,797 Nigeria (Federal Republic of) Credit Linked Nts., 15%, 1/27/09 [NGN] 704,900,000 6,098,666 OAO Gazprom I Credit Nts., 9.22%, 10/20/07 1,435,000 1,524,404 OAO Gazprom II Credit Nts., 8.97%, 4/20/07 1,435,000 1,496,508 Peru (Republic of) Credit Linked Nts., 6.665%, 2/20/11 2 3,255,000 3,326,809 Romania (Republic of) 3 yr. Linked Nts., 12.25%, 10/15/07 [RON] 22,740,000 9,795,999 Romania (Republic of) 3 yr. Linked Nts., 12.89%, 9/24/07 [RON] 3,320,000 1,443,956 Romania (Republic of) 3 yr. Linked Nts., 12.89%, 9/24/07 [RON] 10,000,000 4,349,264 Romania (Republic of) 3 yr. Linked Nts., 12.89%, 9/24/07 [RON] 5,640,000 2,452,985 Russian Federation Credit Linked Nts., 0%, 12/2/09 6 [RUR] 233,573,000 9,618,563 Russian Federation Credit Linked Nts., 6.942%, 2/22/08 6 [RUR] 161,200,000 5,829,626 Russian Federation Credit Linked Nts., 7.176%, 2/21/08 6 [RUR] 78,000,000 2,820,186 Russian Federation Total Return Linked Nts., Series II, 9%, 4/22/11 [RUR] 288,935,000 12,400,879 Russian Railways Total Return Linked Bonds, 6.67%, 1/26/09 2 [RUR] 146,720,000 5,652,220 Ukraine (Republic of) 5 yr. Credit Linked Nts., 4.05%, 8/25/10 2,505,000 2,566,347 Ukraine (Republic of) 5.5 yr. Credit Linked Nts., 4.05%, 2/25/11 2,505,000 2,564,419 Ukraine (Republic of) 6 yr. Credit Linked Nts., 4.05%, 8/25/11 2,505,000 2,563,968 Ukraine (Republic of) 6.5 yr. Credit Linked Nts., 4.05%, 2/27/12 2,505,000 2,562,840 Ukraine (Republic of) 7 yr. Credit Linked Nts., 4.05%, 8/28/12 2,505,000 2,556,428 Ukraine (Republic of) Credit Linked Nts., 10.208%, 7/1/09 1 [UAH] 27,763,200 6,125,932 Ukraine (Republic of) Credit Linked Nts., 11.94%, 12/30/09 [UAH] 3,228,000 725,494 Ukraine (Republic of) Credit Linked Nts., 11.94%, 12/30/09 [UAH] 11,438,000 2,570,695 Ukraine (Republic of) Credit Linked Nts., 5.592%, 5/18/07 [UAH] 27,990,000 5,663,079 Ukraine (Republic of) Credit Linked Nts., 9.60%, 7/1/09 1 [UAH] 7,953,600 1,754,957 Ukraine (Republic of) Credit Linked Nts., Series A, 5.592%, 5/16/07 [UAH] 27,980,000 5,661,056 United Mexican States BORHIS Total Return Linked Nts., 6.10%, 9/27/35 [MXN] 23,552,567 8,550,330 United Mexican States Credit Linked Nts., 9.52%, 1/5/11 1 [MXN] 78,063,736 7,072,112 Videocon International Ltd. Credit Linked Nts., 6.26%, 12/29/09 1 7,300,000 7,341,391 - ---------------------------------------------------------------------------------------------------------------------------------- Deutsche Bank AG Singapore, Vietnam Shipping Industry Group Total Return Linked Nts., 9%, 4/20/17 11 [VND] 216,800,000,000 13,533,084
23 | OPPENHEIMER INTERNATIONAL BOND FUND STATEMENT OF INVESTMENTS Unaudited / Continued - --------------------------------------------------------------------------------
PRINCIPAL VALUE AMOUNT SEE NOTE 1 - ---------------------------------------------------------------------------------------------------------------------------------- STRUCTURED NOTES Continued - ---------------------------------------------------------------------------------------------------------------------------------- Dresdner Bank AG, Lukoil Credit Linked Nts., Series 3, 7.041%, 12/8/11 2 [RUR] 213,030,000 $ 8,206,737 - ---------------------------------------------------------------------------------------------------------------------------------- Goldman Sachs & Co., Turkey (Republic of) Credit Linked Nts., 14.802%, 3/29/17 6 [TRY] 129,050,000 20,942,813 - ---------------------------------------------------------------------------------------------------------------------------------- Goldman Sachs Capital Markets LP, Colombia (Republic of) Credit Linked Nts., 10.476%, 2/8/37 6 [COP] 376,977,600,000 7,513,366 - ---------------------------------------------------------------------------------------------------------------------------------- Goldman Sachs International, Russian Federation Total Return Linked Nts., 8%, 5/13/09 2 [RUR] 573,900,000 22,578,768 - ---------------------------------------------------------------------------------------------------------------------------------- ING Bank NV, Ukraine (Republic of) Credit Linked Nts., Series 725, 11.89%, 12/30/09 1 [UAH] 64,285,000 14,412,420 - ---------------------------------------------------------------------------------------------------------------------------------- JPMorgan Chase Bank: Argentina (Republic of) Credit Linked Nts., 11.032%, 12/19/11 1 [ARP] 36,445,000 31,790,507 Brazil (Federal Republic of) Credit Linked Nts., 12.08%, 1/2/15 6 [BRR] 51,226,300 10,500,496 Brazil (Federal Republic of) Credit Linked Nts., 12.683%, 6/1/13 6 [BRR] 75,340,000 18,283,727 Brazil (Federal Republic of) Credit Linked Nts., 13.847%, 4/1/10 6 [BRR] 129,150,391 45,559,629 Brazil (Federal Republic of) Credit Linked Nts., 14.35%, 2/20/12 [BRR] 34,060,000 16,744,830 Brazil (Federal Republic of) Credit Linked Nts., 15.326%, 1/2/15 6 [BRR] 138,200,796 28,328,748 Brazil (Federal Republic of) Credit Linked Nts., 2.731%, 11/30/12 6 [ARP] 35,605,000 11,005,234 Brazil (Federal Republic of) Credit Linked Nts., 6%, 5/16/45 1 [BRR] 45,170,000 31,766,548 Brazil (Federal Republic of) Credit Linked Nts., Series II, 13.553%, 1/2/15 6 [BRR] 114,770,000 23,525,845 Colombia (Republic of) Credit Linked Bonds, 10.19%, 1/5/16 6 [COP] 153,800,000,000 28,684,103 Colombia (Republic of) Credit Linked Bonds, 10.218%, 10/31/16 1,6 [COP] 90,697,000,000 15,490,528 Colombia (Republic of) Credit Linked Bonds, 11.198%, 8/3/20 6 [COP] 132,560,000,000 17,633,342 Colombia (Republic of) Credit Linked Bonds, Series A, 10.218%, 10/31/16 1,6 [COP] 90,312,000,000 15,424,772 Peru (Republic of) Credit Linked Nts., 8.115%, 9/2/15 6 [PEN] 40,860,000 7,286,112 Russian Federation Railways Credit Linked Nts., 6.59%, 6/15/07 [RUR] 297,950,000 12,638,353 Swaziland (Kingdom of) Credit Linked Nts., 7.25%, 6/20/10 3,850,000 3,849,615 - ---------------------------------------------------------------------------------------------------------------------------------- JSC Astana Finance Nts., 9.16%, 3/14/12 1 14,000,000 13,895,681 - ---------------------------------------------------------------------------------------------------------------------------------- Lehman Brothers International, Romania (Republic of) Total Return Linked Nts., 7.90%, 2/9/10 (linked to Romanian Treasury Bills) [RON] 10,726,400 4,390,014 - ---------------------------------------------------------------------------------------------------------------------------------- Lehman Brothers Special Financing, Inc.: Argentina (Republic of) Credit Linked Nts., 9.655%, 12/20/15 20,000,000 22,808,000 CMS 10 yr. Curve Credit Linked Nts., 6%, 2/5/17 130,660,000 135,612,014 Romania (Republic of) Total Return Linked Nts., 6.50%, 3/9/10 (linked to Romanian Treasury Bills) [RON] 30,904,100 12,127,290 Romania (Republic of) Total Return Linked Nts., 6.75%, 3/11/08 (linked to Romanian Treasury Bills) [RON] 36,650,000 14,645,143 Romania (Republic of) Total Return Linked Nts., 7.25%, 4/19/10 (linked to Romanian Treasury Bills) [RON] 3,105,000 1,318,714 Romania (Republic of) Total Return Linked Nts., 7.75%, 4/21/08 (linked to Romanian Treasury Bills) [RON] 3,101,000 1,338,302 Romania (Republic of) Total Return Linked Nts., 7.75%, 4/21/08 (linked to Romanian Treasury Bills) [RON] 7,453,000 3,216,498
24 | OPPENHEIMER INTERNATIONAL BOND FUND
PRINCIPAL VALUE AMOUNT SEE NOTE 1 - ---------------------------------------------------------------------------------------------------------------------------------- STRUCTURED NOTES Continued - ---------------------------------------------------------------------------------------------------------------------------------- Lehman Brothers Special Financing, Inc.: Continued Romania (Republic of) Total Return Linked Nts., 7.90%, 2/12/08 (linked to Romanian Treasury Bills) [RON] 24,895,500 $ 10,106,132 - ---------------------------------------------------------------------------------------------------------------------------------- Merrill Lynch: Colombia (Republic of) Credit Linked Nts., 10%, 11/17/16 1 [COP] 13,289,000,000 6,214,183 Renaissance Capital International Services Ltd. Total Return Linked Nts., 10.50%, 10/4/08 11 [RUR] 414,000,000 15,932,943 - ---------------------------------------------------------------------------------------------------------------------------------- Morgan Stanley & Co. International Ltd./Red Arrow International Leasing plc: Total Return Linked Nts., Series A, 8.375%, 6/30/12 1 [RUR] 246,944,887 9,836,397 Total Return Linked Nts., Series B, 11%, 6/30/12 1 [RUR] 214,199,179 8,537,004 - ---------------------------------------------------------------------------------------------------------------------------------- Morgan Stanley Capital Services, Inc.: Bank Center Credit Total Return Linked Nts., 7.52%, 6/6/08 [KZT] 3,273,000,000 26,637,258 Brazil (Federal Republic of) Linked Nts., 12.551%, 1/5/22 6 [BRR] 173,500,000 15,789,569 Brazil (Federal Republic of) Sr. Linked Nts., 14.40%, 8/4/16 [BRR] 56,967,568 34,535,016 Philippines (Republic of the) Credit Linked Nts., 10.22%, 9/20/15 1 30,000,000 36,217,327 Philippines (Republic of the) Credit Linked Nts., 8.619%, 9/20/15 1 980,000 1,138,142 Philippines (Republic of the) Credit Linked Nts., 8.22%, 6/20/16 1,2 2,640,000 2,830,462 United Mexican States Credit Linked Nts., 5.64%, 11/20/15 11,760,000 12,444,461 Venezuela (Republic of) 10 yr. Credit Linked Nts., 7.85%, 11/20/15 4,415,000 4,917,827 WTI Trading Ltd. Total Return Linked Nts., Series A, 0%, 2/6/09 1,6 10,900,000 11,227,000 WTI Trading Ltd. Total Return Linked Nts., Series B, 0%, 2/6/09 1,6 14,550,000 14,986,500 - ---------------------------------------------------------------------------------------------------------------------------------- UBS AG: Congo (Republic of) Credit Linked Nts., 9%, 3/22/12 [XAF] 2,050,000,000 3,934,753 Ghana (Republic of) Credit Linked Nts., 14.47%, 12/28/11 1 [GHC] 73,692,320,000 8,247,674 Israel (State of) Credit Linked Nts., 7.50%, 4/5/14 [ILS] 56,205,300 16,196,291 --------------- Total Structured Notes (Cost $1,518,992,864) 1,697,405,522 STRIKE DATE PRICE CONTRACTS - ---------------------------------------------------------------------------------------------------------------------------------- OPTIONS PURCHASED--0.0% - ---------------------------------------------------------------------------------------------------------------------------------- Japanese Yen (JPY) Put 13 (Cost $2,221,645) 7/25/07 $95 261,370,000 1,274,179 SHARES - ---------------------------------------------------------------------------------------------------------------------------------- INVESTMENTS IN AFFILIATED COMPANIES--4.1% - ---------------------------------------------------------------------------------------------------------------------------------- Oppenheimer Institutional Money Market Fund, Cl. E, 5.23% 16,17 (Cost $272,575,619) 272,575,619 272,575,619 - ---------------------------------------------------------------------------------------------------------------------------------- Total Investments, at Value (excluding Investments Purchased with Cash Collateral from Securities Loaned) (Cost $6,188,891,196) 6,512,971,586
25 | OPPENHEIMER INTERNATIONAL BOND FUND STATEMENT OF INVESTMENTS Unaudited / Continued - --------------------------------------------------------------------------------
PRINCIPAL VALUE AMOUNT SEE NOTE 1 - ---------------------------------------------------------------------------------------------------------------------------------- INVESTMENTS PURCHASED WITH CASH COLLATERAL FROM SECURITIES LOANED--0.4% 18 - ---------------------------------------------------------------------------------------------------------------------------------- ASSET-BACKED FLOATING NOTES--0.1% Citigroup Mortgage Loan Trust, Inc., Series 2006-HE1, Cl. A1, 5.38%, 4/25/07 $ 1,362,125 $ 1,362,125 - ---------------------------------------------------------------------------------------------------------------------------------- Countrywide Asset-Backed Certificates, Series 2005-17, Cl. 4AV1, 5.43%, 4/25/07 470,583 470,583 - ---------------------------------------------------------------------------------------------------------------------------------- Whitehawk CDO Funding Corp., 5.4%, 6/15/07 2,000,000 2,000,000 --------------- 3,832,708 - ---------------------------------------------------------------------------------------------------------------------------------- JOINT REPURCHASE AGREEMENTS--0.2% Undivided interest of 0.31% in joint repurchase agreement (Principal Amount/Value $3,500,000,000, with a maturity value of $3,501,591,771) with Bank of America NA, 5.4575%, dated 3/30/07, to be repurchased at $10,917,162 on 4/2/07, collateralized by U.S. Agency Mortgages, 5%-5.50%, 9/1/33-6/1/35, with a value of $3,570,000,000 10,912,199 10,912,199 - ---------------------------------------------------------------------------------------------------------------------------------- Undivided interest of 1% in joint repurchase agreement (Principal Amount/Value $500,000,000, with a maturity value of $500,228,229) with Credit Suisse First Boston LLC, 5.4775%, dated 3/30/07, to be repurchased at $5,002,282 on 4/2/07, collateralized by Private Label CMOs, 0.00%-6.50%, 5/15/16-11/14/42, with a value of $525,000,050 5,000,000 5,000,000 --------------- 15,912,199 - ---------------------------------------------------------------------------------------------------------------------------------- MEDIUM-TERM FLOATING NOTE--0.1% American Express Credit Corp., 5.33%, 4/16/07 2,000,000 2,000,000 - ---------------------------------------------------------------------------------------------------------------------------------- MBIA Global Funding LLC, 5.33%, 4/30/07 2,000,000 2,000,000 --------------- 4,000,000 - ---------------------------------------------------------------------------------------------------------------------------------- YANKEE CERTIFICATE OF DEPOSIT FLOATING NOTE--0.0% Natexis Banques Populaires NY, 5.37%, 4/2/07 2,000,000 2,000,000 --------------- Total Investments Purchased with Cash Collateral from Securities Loaned (Cost $25,744,907) 25,744,907 - ---------------------------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENTS, AT VALUE (COST $6,214,636,103) 98.5% 6,538,716,493 - ---------------------------------------------------------------------------------------------------------------------------------- OTHER ASSETS NET OF LIABILITIES 1.5 99,326,016 --------------------------------- NET ASSETS 100.0% $6,638,042,509 =================================
26 | OPPENHEIMER INTERNATIONAL BOND FUND FOOTNOTES TO STATEMENT OF INVESTMENTS Principal amount is reported in U.S. Dollars (USD), except for those denoted in the following currencies: ARP Argentine Peso AUD Australian Dollar BRR Brazilian Real CAD Canadian Dollar COP Colombian Peso DKK Danish Krone DOP Dominican Republic Peso EGP Egyptian Pounds EUR Euro GBP British Pound Sterling GHC Ghanaian Cedi IDR Indonesia Rupiah ILS Israeli Shekel JPY Japanese Yen KZT Kazakhstan Tenge MXN Mexican Nuevo Peso MYR Malaysian Ringgit NGN Nigeria Naira PEN Peruvian New Sol PHP Philippines Peso PLZ Polish Zloty RON New Romanian Leu RUR Russian Ruble TRY New Turkish Lira UAH Ukraine Hryvnia UYU Uruguay Peso VND Vietnam Dong XAF CFA Franc BEAC ZMK Zambian Kwacha 1. Illiquid or restricted security. The aggregate value of illiquid or restricted securities as of March 31, 2007 was $579,646,412, which represents 8.73% of the Fund's net assets. In addition, the Fund has restricted currency of $4,452,553, which represents 0.07% of the Fund's net assets. See Note 12 of accompanying Notes. 2. Represents the current interest rate for a variable or increasing rate security. 3. Partial or fully-loaned security. See Note 13 of accompanying Notes. 4. All or a portion of the security is held in collateralized accounts to cover initial margin requirements on open futures contracts. The aggregate market value of such securities is $41,308,344. See Note 6 of accompanying Notes. 5. Issue is in default. See Note 1 of accompanying Notes. 6. Zero coupon bond reflects effective yield on the date of purchase. 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 $144,274,633 or 2.17% of the Fund's net assets as of March 31, 2007. 8. A sufficient amount of securities has been designated to cover outstanding foreign currency contracts. See Note 5 of accompanying Notes. 9. A sufficient amount of liquid assets has been designated to cover outstanding written call options, as follows:
CONTRACTS EXPIRATION EXERCISE PREMIUM VALUE SUBJECT TO CALL DATES PRICE RECEIVED SEE NOTE 1 - ----------------------------------------------------------------------------------------- Japanese Yen (JPY) 578,000,000 4/4/07 $117.00 $29,394 $35,431 Japanese Yen (JPY) 523,000,000 4/5/07 117.35 25,270 32,845 Japanese Yen (JPY) 537,000,000 4/9/07 118.00 27,532 27,532 -------------------- $82,196 $95,808 ====================
10. A sufficient amount of liquid assets has been designated to cover outstanding written put options, as follows:
CONTRACTS EXPIRATION EXERCISE PREMIUM VALUE SUBJECT TO PUT DATES PRICE RECEIVED SEE NOTE 1 - ----------------------------------------------------------------------------------------- Japanese Yen (JPY) 578,000,000 4/4/07 $117.00 $27,912 $14,045 Japanese Yen (JPY) 523,000,000 4/5/07 117.35 26,384 19,822 Japanese Yen (JPY) 537,000,000 4/9/07 118.00 27,533 27,532 -------------------- $81,829 $61,399 ====================
27 | OPPENHEIMER INTERNATIONAL BOND FUND STATEMENT OF INVESTMENTS Unaudited / Continued - -------------------------------------------------------------------------------- 11. When-issued security or forward commitment to be delivered and settled after March 31, 2007. See Note 1 of accompanying Notes. 12. This bond has no contractual maturity date, is not redeemable and contractually pays an indefinite stream of interest. Rate reported represents the current interest rate for this variable rate security. 13. Non-income producing security. 14. Denotes a step bond: a zero coupon bond that converts to a fixed or variable interest rate at a designated future date. 15. Denotes an inflation-indexed security: coupon and principal are indexed to the consumer price index. 16. Is or was an affiliate, as defined in the Investment Company Act of 1940, at or during the period ended March 31, 2007 by virtue of the Fund owning at least 5% of the voting securities of the issuer or as a result of the Fund and the issuer having the same investment advisor. Transactions during the period in which the issuer was an affiliate are as follows:
SHARES SHARES SEPTEMBER 30, GROSS GROSS MARCH 31, 2006 ADDITIONS REDUCTIONS 2007 - ------------------------------------------------------------------------------------------------------- Oppenheimer Institutional Money Market Fund, Cl. E, 5.23% -- 2,414,551,422 2,141,975,803 272,575,619
VALUE DIVIDEND SEE NOTE 1 INCOME - ------------------------------------------------------------------------------------------------------- Oppenheimer Institutional Money Market Fund, Cl. E, 5.23% $ 272,575,619 $10,153,693
17. Rate shown is the 7-day yield as of March 31, 2007. 18. The security/securities have been segregated to satisfy the forward commitment to return the cash collateral received in securities lending transactions upon the borrower's return of the securities loaned. See Note 13 of accompanying Notes. 28 | OPPENHEIMER INTERNATIONAL BOND FUND DISTRIBUTION OF INVESTMENTS REPRESENTING GEOGRAPHIC HOLDINGS, AS A PERCENTAGE OF TOTAL INVESTMENTS AT VALUE, IS AS FOLLOWS: GEOGRAPHIC HOLDINGS VALUE PERCENT - -------------------------------------------------------------------------------- United States $ 890,832,812 13.6% Brazil 557,559,093 8.5 Germany 483,598,116 7.4 United Kingdom 452,176,198 6.9 Japan 447,191,085 6.8 Italy 348,542,879 5.3 France 264,792,764 4.1 Russia 243,057,780 3.7 Australia 234,731,616 3.6 Turkey 233,294,747 3.6 Colombia 225,406,855 3.4 Argentina 216,098,828 3.3 Peru 181,373,869 2.8 Canada 172,582,970 2.6 Spain 154,505,584 2.4 Ukraine 129,421,896 2.0 Belgium 123,197,162 1.9 Mexico 117,298,514 1.8 Nigeria 115,582,254 1.8 Philippines 92,763,829 1.4 Greece 84,303,476 1.3 Poland 78,967,609 1.2 Kazakhstan 71,470,318 1.1 Dominican Republic 71,066,000 1.1 Indonesia 67,650,131 1.0 Romania 65,184,297 1.0 Israel 60,206,847 0.9 Egypt 59,208,776 0.9 Uruguay 57,787,216 0.9 Malaysia 47,398,793 0.7 Denmark 32,539,213 0.5 Ireland 29,114,071 0.4 Panama 24,571,613 0.4 Supranational 22,627,200 0.3 Vietnam 19,188,981 0.3 India 12,847,498 0.2 Ghana 8,247,674 0.1 Zambia 8,179,573 0.1 El Salvador 6,672,988 0.1 Venezuela 4,936,077 0.1 Trinidad & Tobago 4,805,210 0.1 Congo 3,934,753 0.1 Swaziland 3,849,615 0.1 Costa Rica 3,595,410 0.1 Bulgaria 3,491,250 0.1 South Africa 2,059,890 0.0 Guatemala 803,163 0.0 ------------------------- Total $6,538,716,493 100.0% ========================= SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 29 | OPPENHEIMER INTERNATIONAL BOND FUND STATEMENT OF ASSETS AND LIABILITIES Unaudited - --------------------------------------------------------------------------------
March 31, 2007 - -------------------------------------------------------------------------------------------------------------- ASSETS - -------------------------------------------------------------------------------------------------------------- Investments, at value--see accompanying statement of investments: Unaffiliated companies (cost $5,942,060,484) $ 6,266,140,874 Affiliated companies (cost $272,575,619) 272,575,619 ----------------- 6,538,716,493 - -------------------------------------------------------------------------------------------------------------- Cash 17,172,744 - -------------------------------------------------------------------------------------------------------------- Cash--foreign currencies (cost $4,022,774) 4,036,966 - -------------------------------------------------------------------------------------------------------------- Unrealized appreciation on foreign currency contracts 64,347,399 - -------------------------------------------------------------------------------------------------------------- Swaps, at value (premiums received $473,599) 55,008,130 - -------------------------------------------------------------------------------------------------------------- Receivables and other assets: Investments sold (including $17,029,829 sold on a when-issued basis or forward commitment) 108,193,570 Interest, dividends and principal paydowns 75,541,792 Shares of beneficial interest sold 41,315,574 Other 38,194 ----------------- Total assets 6,904,370,862 - -------------------------------------------------------------------------------------------------------------- LIABILITIES - -------------------------------------------------------------------------------------------------------------- Options written, at value (premiums received $164,025)--see accompanying statement of investments 157,207 - -------------------------------------------------------------------------------------------------------------- Return of collateral for securities loaned 25,744,907 - -------------------------------------------------------------------------------------------------------------- Unrealized depreciation on foreign currency contracts 24,105,638 - -------------------------------------------------------------------------------------------------------------- Swaps, at value 7,565,355 - -------------------------------------------------------------------------------------------------------------- Payables and other liabilities: Investments purchased (including $61,056,062 purchased on a when-issued basis or forward commitment) 177,014,915 Shares of beneficial interest redeemed 14,821,505 Closed foreign currency contracts 6,179,634 Dividends 4,819,993 Distribution and service plan fees 3,680,789 Transfer and shareholder servicing agent fees 786,358 Futures margins 758,356 Shareholder communications 459,402 Trustees' compensation 21,808 Other 212,486 ----------------- Total liabilities 266,328,353 - -------------------------------------------------------------------------------------------------------------- NET ASSETS $ 6,638,042,509 =================
30 | OPPENHEIMER INTERNATIONAL BOND FUND - -------------------------------------------------------------------------------------------------------------- COMPOSITION OF NET ASSETS - -------------------------------------------------------------------------------------------------------------- Par value of shares of beneficial interest $ 1,084,901 - -------------------------------------------------------------------------------------------------------------- Additional paid-in capital 6,225,349,535 - -------------------------------------------------------------------------------------------------------------- Accumulated net investment income 36,856,957 - -------------------------------------------------------------------------------------------------------------- Accumulated net realized loss on investments and foreign currency transactions (30,075,477) - -------------------------------------------------------------------------------------------------------------- Net unrealized appreciation on investments and translation of assets and liabilities denominated in foreign currencies 404,826,593 ----------------- NET ASSETS $ 6,638,042,509 =================
- -------------------------------------------------------------------------------------------------------------- NET ASSET VALUE PER SHARE - -------------------------------------------------------------------------------------------------------------- Class A Shares: Net asset value and redemption price per share (based on net assets of $4,930,672,432 and 805,299,320 shares of beneficial interest outstanding) $6.12 Maximum offering price per share (net asset value plus sales charge of 4.75% of offering price) $6.43 - -------------------------------------------------------------------------------------------------------------- Class B Shares: Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $240,143,281 and 39,353,326 shares of beneficial interest outstanding) $6.10 - -------------------------------------------------------------------------------------------------------------- Class C Shares: Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $1,062,359,726 and 174,076,418 shares of beneficial interest outstanding) $6.10 - -------------------------------------------------------------------------------------------------------------- Class N Shares: Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $111,194,713 and 18,206,463 shares of beneficial interest outstanding) $6.11 - -------------------------------------------------------------------------------------------------------------- Class Y Shares: Net asset value, redemption price and offering price per share (based on net assets of $293,672,357 and 47,965,490 shares of beneficial interest outstanding) $6.12
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 31 | OPPENHEIMER INTERNATIONAL BOND FUND STATEMENT OF OPERATIONS Unaudited - --------------------------------------------------------------------------------
For the Six Months Ended March 31, 2007 - ------------------------------------------------------------------------------------- INVESTMENT INCOME - ------------------------------------------------------------------------------------- Interest (net of foreign withholding taxes of $1,430,144) $ 132,324,093 - ------------------------------------------------------------------------------------- Dividends: Unaffiliated companies (net of foreign withholding taxes of $4,390) 82,305 Affiliated companies 10,153,693 - ------------------------------------------------------------------------------------- Portfolio lending fees 306,278 --------------- Total investment income 142,866,369 - ------------------------------------------------------------------------------------- EXPENSES - ------------------------------------------------------------------------------------- Management fees 15,713,337 - ------------------------------------------------------------------------------------- Distribution and service plan fees: Class A 5,525,018 Class B 1,170,542 Class C 4,806,195 Class N 229,857 - ------------------------------------------------------------------------------------- Transfer and shareholder servicing agent fees: Class A 3,405,427 Class B 286,491 Class C 631,905 Class N 259,657 Class Y 7,029 - ------------------------------------------------------------------------------------- Shareholder communications: Class A 164,835 Class B 21,386 Class C 30,729 Class N 2,278 Class Y 254 - ------------------------------------------------------------------------------------- Custodian fees and expenses 454,524 - ------------------------------------------------------------------------------------- Trustees' compensation 47,696 - ------------------------------------------------------------------------------------- Administration service fees 750 - ------------------------------------------------------------------------------------- Other 256,743 --------------- Total expenses 33,014,653 Less reduction to custodian expenses (66,369) Less waivers and reimbursements of expenses (290,818) --------------- Net expenses 32,657,466 - ------------------------------------------------------------------------------------- NET INVESTMENT INCOME 110,208,903
32 | OPPENHEIMER INTERNATIONAL BOND FUND - ------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) - ------------------------------------------------------------------------------------- Net realized gain on: Investments (including premiums on options exercised) $ 42,689,639 Closing and expiration of option contracts written 1,707,952 Closing and expiration of futures contracts 91,921 Foreign currency transactions 11,834,407 Swap contracts 24,277,394 --------------- Net realized gain 80,601,313 - ------------------------------------------------------------------------------------- Net change in unrealized appreciation (depreciation) on: Investments 36,710,485 Translation of assets and liabilities denominated in foreign 211,696,285 currencies Futures contracts (22,826,669) Option contracts written (264,137) Swap contracts 25,824,511 --------------- Net change in unrealized appreciation 251,140,475 - ------------------------------------------------------------------------------------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 441,950,691 ===============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 33 | OPPENHEIMER INTERNATIONAL BOND FUND STATEMENTS OF CHANGES IN NET ASSETS - --------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED ENDED MARCH 31, 2007 SEPTEMBER 30, (UNAUDITED) 2006 - -------------------------------------------------------------------------------------------- OPERATIONS - -------------------------------------------------------------------------------------------- Net investment income $ 110,208,903 $ 161,377,436 - -------------------------------------------------------------------------------------------- Net realized gain (loss) 80,601,313 (25,734,684) - -------------------------------------------------------------------------------------------- Net change in unrealized appreciation 251,140,475 (8,589,064) ---------------------------------- Net increase in net assets resulting from operations 441,950,691 127,053,688 - -------------------------------------------------------------------------------------------- DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS - -------------------------------------------------------------------------------------------- Dividends from net investment income: Class A (85,331,430) (200,784,108) Class B (3,498,736) (12,370,619) Class C (14,949,097) (36,714,329) Class N (1,576,589) (3,110,737) Class Y (4,824,640) (5,420,742) ---------------------------------- (110,180,492) (258,400,535) - -------------------------------------------------------------------------------------------- Distributions from net realized gain: Class A (9,318,274) (11,599,099) Class B (500,536) (891,798) Class C (2,033,412) (2,435,648) Class N (194,577) (203,177) Class Y (465,053) (253,487) ---------------------------------- (12,511,852) (15,383,209) - -------------------------------------------------------------------------------------------- BENEFICIAL INTEREST TRANSACTIONS - -------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from beneficial interest transactions: Class A 617,373,950 1,502,920,202 Class B (7,308,042) 18,514,548 Class C 136,046,518 338,152,983 Class N 42,719,222 18,829,709 Class Y 104,740,174 141,286,624 ---------------------------------- 893,571,822 2,019,704,066 - -------------------------------------------------------------------------------------------- NET ASSETS - -------------------------------------------------------------------------------------------- Total increase 1,212,830,169 1,872,974,010 - -------------------------------------------------------------------------------------------- Beginning of period 5,425,212,340 3,552,238,330 ---------------------------------- End of period (including accumulated net investment income of $36,856,957 and $36,828,546, respectively) $ 6,638,042,509 $ 5,425,212,340 ==================================
34 | OPPENHEIMER INTERNATIONAL BOND FUND FINANCIAL HIGHLIGHTS - --------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED ENDED MARCH 31, 2007 SEPT. 30, CLASS A (UNAUDITED) 2006 2005 2004 2003 2002 - ----------------------------------------------------------------------------------------------------------------------------------- PER SHARE OPERATING DATA - ----------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 5.80 $ 6.01 $ 5.63 $ 5.33 $ 4.38 $ 3.95 - ----------------------------------------------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment income .11 1 .22 1 .23 1 .13 .20 .24 Net realized and unrealized gain (loss) .33 (.04) .62 .47 .95 .41 ------------------------------------------------------------------------------------------- Total from investment operations .44 .18 .85 .60 1.15 .65 - ----------------------------------------------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Dividends from net investment income (.11) (.37) (.41) (.30) (.20) (.19) Distributions from net realized gain (.01) (.02) (.06) -- -- -- Tax return of capital distribution -- -- -- -- -- (.03) ------------------------------------------------------------------------------------------- Total dividends and/or distributions to shareholders (.12) (.39) (.47) (.30) (.20) (.22) - ----------------------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $ 6.12 $ 5.80 $ 6.01 $ 5.63 $ 5.33 $ 4.38 =========================================================================================== TOTAL RETURN, AT NET ASSET VALUE 2 7.76% 3.23% 15.53% 11.56% 26.67% 16.78% - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA - ----------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (in thousands) $ 4,930,673 $ 4,075,172 $ 2,683,900 $ 1,177,628 $ 429,283 $ 181,456 - ----------------------------------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $ 4,459,527 $ 3,430,374 $ 1,925,344 $ 811,608 $ 285,391 $ 134,912 - ----------------------------------------------------------------------------------------------------------------------------------- Ratios to average net assets: 3 Net investment income 3.84% 3.72% 3.85% 2.19% 3.94% 5.16% Total expenses 0.96% 4 0.98% 1.03% 1.13% 1.22% 1.37% Expenses after payments and waivers and reduction to custodian expenses 0.95% 0.97% 1.02% 1.13% 1.22% 1.37% - ----------------------------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 37% 144% 90% 133% 341% 372%
1. Per share amounts calculated based on the average shares outstanding during the period. 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. Expenses including indirect expenses from affiliated fund were as follows: Six Months Ended March 31, 2007 0.97% SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 35 | OPPENHEIMER INTERNATIONAL BOND FUND FINANCIAL HIGHLIGHTS Continued - --------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED ENDED MARCH 31, 2007 SEPT. 30, CLASS B (UNAUDITED) 2006 2005 2004 2003 2002 - ----------------------------------------------------------------------------------------------------------------------------------- PER SHARE OPERATING DATA - ----------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 5.78 $ 5.99 $ 5.61 $ 5.31 $ 4.37 $ 3.94 - ----------------------------------------------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment income .09 1 .17 1 .17 1 .08 .16 .21 Net realized and unrealized gain (loss) .33 (.04) .63 .47 .94 .40 ------------------------------------------------------------------------------------------- Total from investment operations .42 .13 .80 .55 1.10 .61 - ----------------------------------------------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Dividends from net investment income (.09) (.32) (.36) (.25) (.16) (.15) Distributions from net realized gain (.01) (.02) (.06) -- -- -- Tax return of capital distribution -- -- -- -- -- (.03) ------------------------------------------------------------------------------------------- Total dividends and/or distributions to shareholders (.10) (.34) (.42) (.25) (.16) (.18) - ----------------------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $ 6.10 $ 5.78 $ 5.99 $ 5.61 $ 5.31 $ 4.37 =========================================================================================== - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN, AT NET ASSET VALUE 2 7.33% 2.35% 14.58% 10.66% 25.48% 15.90% - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA - ----------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (in thousands) $ 240,143 $ 234,848 $ 224,381 $ 167,621 $ 134,661 $ 100,049 - ----------------------------------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $ 235,032 $ 229,871 $ 201,541 $ 153,117 $ 119,232 $ 85,244 - ----------------------------------------------------------------------------------------------------------------------------------- Ratios to average net assets: 3 Net investment income 2.99% 2.88% 2.95% 1.40% 3.20% 4.41% Total expenses 1.82% 4 1.83% 1.89% 1.98% 2.03% 2.14% Expenses after payments and waivers and reduction to custodian expenses 1.81% 1.83% 1.89% 1.98% 2.03% 2.14% - ----------------------------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 37% 144% 90% 133% 341% 372%
1. Per share amounts calculated based on the average shares outstanding during the period. 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. Expenses including indirect expenses from affiliated fund were as follows: Six Months Ended March 31, 2007 1.83% SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 36 | OPPENHEIMER INTERNATIONAL BOND FUND
SIX MONTHS YEAR ENDED ENDED MARCH 31, 2007 SEPT. 30, CLASS C (UNAUDITED) 2006 2005 2004 2003 2002 - ----------------------------------------------------------------------------------------------------------------------------------- PER SHARE OPERATING DATA - ----------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 5.78 $ 5.99 $ 5.61 $ 5.31 $ 4.37 $ 3.94 - ----------------------------------------------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment income .09 1 .17 1 .18 1 .09 .16 .21 Net realized and unrealized gain (loss) .33 (.03) .63 .46 .94 .40 ------------------------------------------------------------------------------------------- Total from investment operations .42 .14 .81 .55 1.10 .61 - ----------------------------------------------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Dividends from net investment income (.09) (.33) (.37) (.25) (.16) (.15) Distributions from net realized gain (.01) (.02) (.06) -- -- -- Tax return of capital distribution -- -- -- -- -- (.03) ------------------------------------------------------------------------------------------- Total dividends and/or distributions to shareholders (.10) (.35) (.43) (.25) (.16) (.18) - ----------------------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $ 6.10 $ 5.78 $ 5.99 $ 5.61 $ 5.31 $ 4.37 =========================================================================================== - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN, AT NET ASSET VALUE 2 7.40% 2.46% 14.70% 10.75% 25.48% 15.90% - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA - ----------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (in thousands) $ 1,062,360 $ 875,032 $ 560,138 $ 233,311 $ 90,248 $ 38,865 - ----------------------------------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $ 965,390 $ 717,977 $ 401,401 $ 170,796 $ 63,198 $ 28,635 - ----------------------------------------------------------------------------------------------------------------------------------- Ratios to average net assets: 3 Net investment income 3.11% 2.98% 3.10% 1.46% 3.15% 4.37% Total expenses 1.69% 4 1.71% 1.77% 1.88% 2.02% 2.14% Expenses after payments and waivers and reduction to custodian expenses 1.68% 1.71% 1.77% 1.88% 2.02% 2.14% - ----------------------------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 37% 144% 90% 133% 341% 372%
1. Per share amounts calculated based on the average shares outstanding during the period. 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. Expenses including indirect expenses from affiliated fund were as follows: Six Months Ended March 31, 2007 1.70% SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 37 | OPPENHEIMER INTERNATIONAL BOND FUND FINANCIAL HIGHLIGHTS Continued - --------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED ENDED MARCH 31, 2007 SEPT. 30, CLASS N (UNAUDITED) 2006 2005 2004 2003 2002 - ----------------------------------------------------------------------------------------------------------------------------------- PER SHARE OPERATING DATA - ----------------------------------------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 5.79 $ 6.00 $ 5.61 $ 5.32 $ 4.37 $ 3.95 - ----------------------------------------------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment income .10 1 .19 1 .20 1 .12 .18 .21 Net realized and unrealized gain (loss) .33 (.04) .64 .45 .95 .42 ------------------------------------------------------------------------------------------- Total from investment operations .43 .15 .84 .57 1.13 .63 - ----------------------------------------------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Dividends from net investment income (.10) (.34) (.39) (.28) (.18) (.18) Distributions from net realized gain (.01) (.02) (.06) -- -- -- Tax return of capital distribution -- -- -- -- -- (.03) ------------------------------------------------------------------------------------------- Total dividends and/or distributions to shareholders (.11) (.36) (.45) (.28) (.18) (.21) - ----------------------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $ 6.11 $ 5.79 $ 6.00 $ 5.61 $ 5.32 $ 4.37 =========================================================================================== - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL RETURN, AT NET ASSET VALUE 2 7.55% 2.78% 15.27% 11.00% 26.31% 16.23% - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA - ----------------------------------------------------------------------------------------------------------------------------------- Net assets, end of period (in thousands) $ 111,195 $ 63,432 $ 46,533 $ 18,641 $ 4,640 $ 1,280 - ----------------------------------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $ 92,546 $ 55,216 $ 30,696 $ 10,769 $ 2,653 $ 297 - ----------------------------------------------------------------------------------------------------------------------------------- Ratios to average net assets: 3 Net investment income 3.42% 3.29% 3.45% 1.83% 3.56% 4.87% Total expenses 1.62% 4 1.58% 1.47% 1.49% 1.57% 1.57% Expenses after payments and waivers and reduction to custodian expenses 1.40% 1.42% 1.46% 1.49% 1.57% 1.57% - ----------------------------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 37% 144% 90% 133% 341% 372%
1. Per share amounts calculated based on the average shares outstanding during the period 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. Expenses including indirect expenses from affiliated fund were as follows: Six Months Ended March 31, 2007 1.63% SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 38 | OPPENHEIMER INTERNATIONAL BOND FUND
SIX MONTHS YEAR ENDED ENDED MARCH 31, 2007 SEPT. 30, CLASS Y (UNAUDITED) 2006 2005 2004 1 - ----------------------------------------------------------------------------------------------------- PER SHARE OPERATING DATA - ----------------------------------------------------------------------------------------------------- Net asset value, beginning of period $ 5.80 $ 6.01 $ 5.63 $ 5.58 - ----------------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment income .13 2 .24 2 .25 2 -- 3 Net realized and unrealized gain (loss) .33 (.04) .63 .05 ------------------------------------------------------------- Total from investment operations .46 .20 .88 .05 - ----------------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Dividends from net investment income (.13) (.39) (.44) -- Distributions from net realized gain (.01) (.02) (.06) -- Tax return of capital distribution -- -- -- -- ------------------------------------------------------------- Total dividends and/or distributions to shareholders (.14) (.41) (.50) -- - ----------------------------------------------------------------------------------------------------- Net asset value, end of period $ 6.12 $ 5.80 $ 6.01 $ 5.63 ============================================================= - ----------------------------------------------------------------------------------------------------- TOTAL RETURN, AT NET ASSET VALUE 4 7.98% 3.64% 15.96% 0.92% - ----------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------- RATIOS/SUPPLEMENTAL DATA - ----------------------------------------------------------------------------------------------------- Net assets, end of period (in thousands) $ 293,672 $ 176,728 $ 37,286 $ 14,268 - ----------------------------------------------------------------------------------------------------- Average net assets (in thousands) $ 227,677 $ 97,992 $ 25,559 $ 7,086 - ----------------------------------------------------------------------------------------------------- Ratios to average net assets: 5 Net investment income 4.25% 4.11% 4.23% 4.84% Total expenses 0.56% 6 0.56% 0.67% 1.17% Expenses after payments and waivers and reduction to custodian expenses 0.55% 0.56% 0.66% 1.17% - ----------------------------------------------------------------------------------------------------- Portfolio turnover rate 37% 144% 90% 133%
1. For the period from September 27, 2004 (inception of offering) to September 30, 2004. 2. Per share amounts calculated based on the average shares outstanding during the period. 3. Less than $0.005 per share. 4. 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. 5. Annualized for periods of less than one full year. 6. Expenses including indirect expenses from affiliated fund were as follows: Six Months Ended March 31, 2007 0.57% SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 39 | 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 primary objective is to seek total return. As a secondary objective, the Fund seeks income when consistent with total return. The Fund's investment advisor is OppenheimerFunds, Inc. (the Manager). The Fund offers Class A, Class B, Class C, Class N and Class Y shares. Class A shares are sold at their offering price, which is normally net asset value plus a front-end sales charge. Class B, Class C and Class N shares are sold without a front-end sales charge but may be subject to a contingent deferred sales charge (CDSC). Class N shares are sold only through retirement plans. Retirement plans that offer Class N shares may impose charges on those accounts. Class Y shares are sold to certain institutional investors without either a front-end sales charge or a CDSC, however, the institutional investor 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 due to each class having its own expenses, such as transfer and shareholder servicing agent fees and shareholder communications, directly attributable to that class. Class A, B, C and N have separate distribution and/or service plans. No such plan has been adopted for Class Y shares. 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. The Fund calculates the net asset value of its shares as of the close of the New York Stock Exchange (the "Exchange"), normally 4:00 P.M. Eastern time, on each day the Exchange is open for business. Securities may be valued primarily using dealer-supplied valuations or a portfolio pricing service authorized by the Board of Trustees. Securities listed or traded on National Stock Exchanges or other domestic 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(R) 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 traded on foreign exchanges are valued based on the last sale price on the principal exchange on which the security is traded, as identified by the portfolio pricing service, prior to the time when the Fund's assets are valued. In the absence of a sale, the security is valued at the official closing price on the principal exchange. Corporate, government and municipal debt instruments having a remaining maturity in excess of sixty days and all mortgage-backed securities will be valued at the mean between the "bid" and "asked" prices. Futures contracts traded 40 | OPPENHEIMER INTERNATIONAL BOND FUND on a commodities or futures exchange will be valued at the final settlement price or official closing price on the principal exchange as reported by such principal exchange at its trading session ending at, or most recently prior to, the time when the Fund's assets are valued. Options are valued daily based upon the last sale price on the principal exchange on which the option is traded. Securities (including restricted securities) for which market quotations are not readily available are valued at their fair value. Foreign and domestic 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 exchanges will be fair valued. Fair value is determined in good faith using consistently applied procedures under the supervision of the Board of Trustees. Investments in open-end registered investment companies (including affiliated funds) are valued at that fund's net asset value. 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 structured notes whose market values, interest rates and/or redemption prices are linked to the performance of underlying foreign currencies, interest rate spreads, stock market indices, prices of individual securities, commodities or other financial instruments or the occurrence of other specific events. The structured notes are often leveraged, increasing the volatility of each note's market value relative to the change in the underlying linked financial element or event. Fluctuations in value of these securities are recorded as unrealized gains and losses in the accompanying Statement of Operations. The Fund records a realized gain or loss when a structured note is sold or matures. - -------------------------------------------------------------------------------- SECURITIES ON A WHEN-ISSUED BASIS OR FORWARD COMMITMENT. Delivery and payment for securities that have been purchased by the Fund on a when-issued basis or forward commitment take place generally at least ten days or more after the trade date. Normally the settlement date occurs within six months after the trade date; however, the Fund may, from time to time, purchase securities whose settlement date extends six months or more beyond trade date. During this period, such securities do not earn interest, are subject to market fluctuation and may increase or decrease in value prior to their delivery. The Fund maintains internally designated assets with a market value equal to or greater than the amount of its purchase commitments. The purchase of securities on a when-issued basis or forward commitment may increase the volatility of the Fund's net asset value to the extent the Fund executes such transactions while remaining substantially fully invested. The Fund may also sell securities that it purchased on a when-issued basis or forward commitment prior to settlement of the original purchase. As of March 31, 2007, the Fund had purchased $61,056,062 of securities issued on a when-issued basis or forward commitment and sold $17,029,829 of securities issued on a when-issued basis or forward commitment. 41 | OPPENHEIMER INTERNATIONAL BOND FUND NOTES TO FINANCIAL STATEMENTS Unaudited / Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. SIGNIFICANT ACCOUNTING POLICIES Continued 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, 2007, securities with an aggregate market value of $1,022, representing less than 0.01% of the Fund's net assets, were in default. - -------------------------------------------------------------------------------- FOREIGN CURRENCY TRANSLATION. The Fund's accounting records are maintained in U.S. dollars. The values of securities denominated in foreign currencies and amounts related to the purchase and sale of foreign securities and foreign investment income are translated into U.S. dollars as of the close of the New York Stock Exchange (the "Exchange"), normally 4:00 P.M. Eastern time, on each day the Exchange is open for business. Foreign exchange rates may be valued primarily using dealer supplied valuations or a portfolio pricing service authorized by the Board of Trustees. Reported net realized foreign exchange gains or losses arise from sales of portfolio securities, sales and maturities of short-term securities, sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the values of assets and liabilities, including investments in securities at fiscal period end, resulting from changes in exchange rates. The effect of changes in foreign currency exchange rates on investments is separately identified from the fluctuations arising from changes in market values of securities held and reported with all other foreign currency gains and losses in the Fund's Statement of Operations. - -------------------------------------------------------------------------------- INVESTMENT IN OPPENHEIMER INSTITUTIONAL MONEY MARKET FUND. The Fund is permitted to invest daily available cash balances in an affiliated money market fund. The Fund may invest the available cash in Class E shares of Oppenheimer Institutional Money Market Fund ("IMMF") which seeks current income and stability of principal. IMMF is a registered open-end management investment company, regulated as a money market fund under the Investment Company Act of 1940, as amended. The Manager is also the investment advisor of IMMF. The Fund's investment in IMMF is included in the Statement of Investments. As a shareholder, the Fund is subject to its proportional share of IMMF's Class E expenses, including its management fee. The Manager will waive fees and/or reimburse Fund expenses in an amount equal to the indirect management fees incurred through the Fund's investment in IMMF. 42 | OPPENHEIMER INTERNATIONAL BOND FUND - -------------------------------------------------------------------------------- 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. 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. - -------------------------------------------------------------------------------- INVESTMENTS WITH OFF BALANCE SHEET RISK. The Fund enters into financial instrument transactions (such as swaps, futures, options and other derivatives) that may have off-balance sheet market risk. Off-balance sheet market risk exists when the maximum potential loss on a particular financial instrument is greater than the value of such financial instrument, as reflected in the Fund's Statement of Assets and Liabilities. - -------------------------------------------------------------------------------- ALLOCATION OF INCOME, EXPENSES, GAINS AND LOSSES. Income, expenses (other than those attributable to a specific class), gains and losses are allocated on a daily basis to each class of shares based upon the relative proportion of net assets represented by such class. Operating expenses directly attributable to a specific class are charged against the operations of that class. - -------------------------------------------------------------------------------- FEDERAL TAXES. The Fund intends to comply with provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its investment company taxable income, including any net realized gain on investments not offset by capital loss carryforwards, if any, to shareholders, therefore, no federal income or excise tax provision is required. Net investment income (loss) and net realized gain (loss) may differ for financial statement and tax purposes. The character of dividends and distributions made during the fiscal year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. Also, due to timing of dividends and distributions, the fiscal year in which amounts are distributed may differ from the fiscal year in which the income or net realized gain was recorded by the Fund. As of March 31, 2007, the Fund had available for federal income tax purposes an estimated capital loss carryforward of $14,678,278 expiring by 2015. 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. As of March 31, 2007, it is estimated that the Fund will utilize $81,074,912 of capital loss carryforward to offset realized capital gains. During the fiscal year ended September 30, 2006, the Fund did not utilize any capital loss carryforward to offset capital gains realized in that fiscal year. As of September 30, 2006, the Fund had available for federal income tax purposes post-October foreign currency losses of $91,897,279 and straddle losses of $3,855,911. 43 | OPPENHEIMER INTERNATIONAL BOND FUND NOTES TO FINANCIAL STATEMENTS Unaudited / Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. SIGNIFICANT ACCOUNTING POLICIES Continued TRUSTEES' COMPENSATION. The Board of Trustees has adopted a compensation deferral plan for independent trustees that enables trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. For purposes of determining the amount owed to the Trustee under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of the Fund or in other Oppenheimer funds selected by the Trustee. The Fund purchases shares of the funds selected for deferral by the Trustee in amounts equal to his or her deemed investment, resulting in a Fund asset equal to the deferred compensation liability. Such assets are included as a component of "Other" within the asset section of the Statement of Assets and Liabilities. Deferral of trustees' fees under the plan will not affect the net assets of the Fund, and will not materially affect the Fund's assets, liabilities or net investment income per share. Amounts will be deferred until distributed in accordance to the compensation deferral 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 the fair market value of the securities received. Interest income, which includes accretion of discount and amortization of premium, is accrued as earned. - -------------------------------------------------------------------------------- CUSTODIAN FEES. "Custodian fees and expenses" in the Statement of Operations may include interest expense incurred by the Fund on any cash overdrafts of its custodian account during the period. Such cash overdrafts may result from the effects of failed trades in portfolio securities and from cash outflows resulting from unanticipated shareholder redemption activity. The Fund pays interest to its custodian on such cash overdrafts, to the extent they are not offset by positive cash balances maintained by the Fund, at a rate equal to the Federal Funds Rate plus 0.50%. The "Reduction to custodian expenses" line item, if applicable, represents earnings on cash balances maintained by the Fund during the period. Such interest expense and other custodian fees may be paid with these earnings. - -------------------------------------------------------------------------------- SECURITY TRANSACTIONS. Security transactions are recorded on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost. - -------------------------------------------------------------------------------- INDEMNIFICATIONS. The Fund's organizational documents provide current and former trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent 44 | OPPENHEIMER INTERNATIONAL BOND FUND on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote. - -------------------------------------------------------------------------------- OTHER. The preparation of financial statements in conformity with U.S. generally accepted accounting principles 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, 2007 YEAR ENDED SEPTEMBER 30, 2006 SHARES AMOUNT SHARES AMOUNT - ----------------------------------------------------------------------------------------------------------------- CLASS A Sold 184,906,688 $ 1,106,221,035 401,071,813 $ 2,346,328,470 Dividends and/or distributions reinvested 11,986,511 72,158,028 28,014,878 162,673,081 Redeemed (93,947,497) (561,005,113) (173,146,915) (1,006,081,349) ------------------------------------------------------------------- Net increase 102,945,702 $ 617,373,950 255,939,776 $ 1,502,920,202 =================================================================== - ----------------------------------------------------------------------------------------------------------------- CLASS B Sold 4,406,470 $ 26,294,981 13,953,510 $ 81,256,556 Dividends and/or distributions reinvested 543,196 3,258,540 1,823,352 10,550,724 Redeemed (6,208,796) (36,861,563) (12,609,581) (73,292,732) ------------------------------------------------------------------- Net increase (decrease) (1,259,130) $ (7,308,042) 3,167,281 $ 18,514,548 =================================================================== - ----------------------------------------------------------------------------------------------------------------- CLASS C Sold 36,350,513 $ 216,719,310 76,001,789 $ 443,443,673 Dividends and/or distributions reinvested 1,784,392 10,707,130 4,461,718 25,813,712 Redeemed (15,362,500) (91,379,922) (22,632,214) (131,104,402) ------------------------------------------------------------------- Net increase 22,772,405 $ 136,046,518 57,831,293 $ 338,152,983 =================================================================== - ----------------------------------------------------------------------------------------------------------------- CLASS N Sold 8,986,585 $ 53,039,155 7,063,532 $ 41,194,742 Dividends and/or distributions reinvested 274,119 1,646,382 531,451 3,078,829 Redeemed (2,014,063) (11,966,315) (4,393,527) (25,443,862) ------------------------------------------------------------------- Net increase 7,246,641 $ 42,719,222 3,201,456 $ 18,829,709 =================================================================== - ----------------------------------------------------------------------------------------------------------------- CLASS Y Sold 18,159,512 $ 108,655,681 24,796,488 $ 144,435,008 Dividends and/or distributions reinvested 833,419 5,019,282 973,953 5,648,766 Redeemed (1,488,237) (8,934,789) (1,513,656) (8,797,150) ------------------------------------------------------------------- Net increase 17,504,694 $ 104,740,174 24,256,785 $ 141,286,624 ===================================================================
45 | OPPENHEIMER INTERNATIONAL BOND FUND NOTES TO FINANCIAL STATEMENTS Unaudited / Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 3. PURCHASES AND SALES OF SECURITIES The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations and investments in affiliated companies, for the six months ended March 31, 2007, were as follows: PURCHASES SALES - -------------------------------------------------------------------------------- Investment securities $2,744,222,162 $1,411,047,717 U.S. government and government agency obligations 95,765,734 188,488,493 - -------------------------------------------------------------------------------- 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 average net assets as shown in the following table: FEE SCHEDULE -------------------------------- Up to $200 million 0.75% Next $200 million 0.72 Next $200 million 0.69 Next $200 million 0.66 Next $200 million 0.60 Next $4 billion 0.50 Over $5 billion 0.48 - -------------------------------------------------------------------------------- ADMINISTRATION SERVICE FEES. The Fund pays the Manager a fee of $1,500 per year for preparing and filing the Fund's tax returns. - -------------------------------------------------------------------------------- TRANSFER AGENT FEES. OppenheimerFunds Services (OFS or the Transfer Agent), 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, 2007, the Fund paid $4,462,397 to OFS for services to the Fund. Additionally, Class Y shares are subject to minimum fees of $10,000 per annum for assets of $10 million or more. The Class Y shares are subject to the minimum fees in the event that the per account fee does not equal or exceed the applicable minimum fees. OFS may voluntarily waive the minimum fees. - -------------------------------------------------------------------------------- DISTRIBUTION AND SERVICE PLAN (12b-1) FEES. Under its General 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 periodically 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 all of those fees to pay dealers, brokers, banks and other financial institutions periodically for providing personal services and maintenance of accounts of their customers that hold Class A shares. Any unreimbursed expenses the Distributor incurs with respect to 46 | OPPENHEIMER INTERNATIONAL BOND FUND Class A shares in any fiscal year cannot be recovered in subsequent periods. Fees incurred by the Fund under the plan are detailed in the Statement of Operations. - -------------------------------------------------------------------------------- DISTRIBUTION AND SERVICE PLANS FOR CLASS B, CLASS C AND CLASS N SHARES. The Fund has adopted Distribution and Service Plans for Class B, Class C and Class N shares to compensate the Distributor for its services in connection with the distribution of those shares and servicing accounts. Under the plans, the Fund pays the Distributor an annual asset-based sales charge of 0.75% on Class B and Class C shares and 0.25% on Class N shares. The Distributor also receives a service fee of 0.25% per year under each plan. If either the Class B, Class C or Class N plan is terminated by the Fund or by the shareholders of a class, the Board of Trustees and its independent trustees must determine whether the Distributor shall be entitled to payment from the Fund of all or a portion of the service fee and/or asset-based sales charge in respect to shares sold prior to the effective date of such termination. The Distributor determines its uncompensated expenses under the plan at calendar quarter ends. The Distributor's aggregate uncompensated expenses under the plan at March 31, 2007 for Class B, Class C and Class N shares were $7,668,510, $13,915,452 and $1,126,137, 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 following table for the period indicated.
CLASS A CLASS B CLASS C CLASS N CLASS A CONTINGENT CONTINGENT CONTINGENT CONTINGENT FRONT-END DEFERRED DEFERRED DEFERRED DEFERRED SALES CHARGES SALES CHARGES SALES CHARGES SALES CHARGES SALES CHARGES SIX MONTHS RETAINED BY RETAINED BY RETAINED BY RETAINED BY RETAINED BY ENDED DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR - ---------------------------------------------------------------------------------------------------- March 31, 2007 $ 700,965 $ 97,372 $ 261,293 $ 99,601 $ 5,092
- -------------------------------------------------------------------------------- WAIVERS AND REIMBURSEMENTS OF EXPENSES. OFS has voluntarily agreed to limit transfer and shareholder servicing agent fees for all classes to 0.35% of average annual net assets per class. During the six months ended March 31, 2007, OFS waived $98,259 for Class N shares. This undertaking may be amended or withdrawn at any time. The Manager will waive fees and/or reimburse Fund expenses in an amount equal to the indirect management fees incurred through the Fund's investment in IMMF. During the six months ended March 31, 2007, the Manager waived $192,559 for IMMF management fees. - -------------------------------------------------------------------------------- 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 47 | OPPENHEIMER INTERNATIONAL BOND FUND NOTES TO FINANCIAL STATEMENTS Unaudited / Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 5. FOREIGN CURRENCY CONTRACTS Continued 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. 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, 2007, the Fund had outstanding foreign currency contracts as follows:
VALUATION CONTRACT AS OF EXPIRATION AMOUNT MARCH 31, UNREALIZED UNREALIZED CONTRACT DESCRIPTION DATES (000S) 2007 APPRECIATION DEPRECIATION - --------------------------------------------------------------------------------------------------------------------------- CONTRACTS TO PURCHASE Australian Dollar [AUD] 4/23/07 2,002AUD $ 1,618,746 $ 15,144 $ -- Brazilian Real [BRR] 5/3/07-1/13/10 657,329BRR 300,330,525 43,860,875 -- British Pound Sterling [GPB] 4/10/07-4/23/07 61,455GPB 120,931,398 1,465,096 -- Canadian Dollar [CAD] 4/23/07 7,370CAD 6,388,086 29,156 -- Chilean Peso [CLP] 5/16/07-6/28/07 23,557,000CLP 43,659,850 18,960 86,822 Euro [EUR] 4/2/07-9/24/07 557,054EUR 744,447,176 6,011,455 -- Hungarian Forint [HUF] 4/26/07 12,134,000HUF 65,284,087 -- 683,076 Indian Rupee [INR] 4/26/07 2,869,000INR 65,660,468 217,949 -- Japanese Yen [JPY] 4/2/07-5/14/07 105,824,000JPY 901,681,646 5,704,271 1,350,805 Malaysian Ringgit [MYR] 5/16/07 97,730MYR 28,332,508 261,281 -- Mexican Nuevo Peso [MXN] 4/2/07-5/25/07 1,723,842MXN 155,733,160 -- 591,830 New Turkish Lira [TRY] 4/24/07 91,400TRY 65,089,833 433,080 -- New Zealand Dollar [NZD] 9/24/07 25,060NZD 17,673,789 235,037 -- Norwegian Krone [NOK] 9/24/07-1/29/08 239,020NOK 39,464,474 1,043,415 -- Polish Zloty [PLZ] 4/30/07-5/7/07 221,970PLZ 76,783,323 2,334,558 -- Russian Ruble [RUR] 4/4/07-6/6/07 2,480,220RUR 95,464,662 559,438 -- Singapore Dollar [SGD] 2/5/08 99,680SGD 66,920,341 665,269 2,426 South African Rand [ZAR] 4/26/07-8/1/07 867,840ZAR 118,724,185 272,279 628,444 South Korean Won [KRW] 4/12/07-7/2/07 51,918,000KRW 55,248,245 -- 77,896 Swedish Krone [SEK] 4/10/07 77,740SEK 39,796,994 86,011 83,759 Swiss Franc [CHF] 4/5/07-4/23/07 89,452CHF 73,662,161 336,314 2,319 Ukraine Hryvnia [UAH] 4/5/07 50,954UAH 10,113,245 -- 6,668 Uruguay Peso [UYU] 4/3/07 248,600UYU 10,296,128 53,029 -- Vietnam Dong [VND] 4/13/07 218,426,000VND 13,634,582 -- 34,129 ----------------------------- 63,602,617 3,548,174 -----------------------------
48 | OPPENHEIMER INTERNATIONAL BOND FUND
VALUATION CONTRACT AS OF EXPIRATION AMOUNT MARCH 31, UNREALIZED UNREALIZED CONTRACT DESCRIPTION DATES (000S) 2007 APPRECIATION DEPRECIATION - --------------------------------------------------------------------------------------------------------------------------- CONTRACTS TO SELL Australian Dollar [AUD] 4/10/07-4/11/07 207,940AUD $ 168,192,805 $ -- $ 5,762,492 British Pound Sterling [GPB] 8/6/07 19,550GPB 38,435,909 -- 60,038 Canadian Dollar [CAD] 8/21/07 60,215CAD 52,369,569 -- 487,242 Chinese Renminbi [CNY] 4/26/07 507,100CNY 65,865,863 106,947 -- Czech Koruna [CZK] 4/26/07-1/25/08 1,559,750CZK 74,713,291 80,009 276,309 Euro [EUR] 4/2/07-1/29/08 343,785EUR 459,828,296 4,938 9,875,280 Hong Kong Dollar [HKD] 1/25/08 136,990HKD 17,674,442 44,733 1,294 Indian Rupee [INR] 4/5/07 21,837INR 501,905 -- 2,194 Japanese Yen [JPY] 4/2/07-2/5/08 21,589,000JPY 186,678,587 49,494 1,881,269 New Turkish Lira [TRY] 5/7/07-6/29/07 43,255TRY 30,365,897 -- 453,065 New Zealand Dollar [NZD] 1/16/08 77,760NZD 54,343,337 -- 1,565,296 Russian Ruble [RUR] 4/3/07-4/4/07 450,583RUR 17,341,055 -- 10,935 Swedish Krone [SEK] 4/26/07-9/24/07 529,430SEK 76,005,475 261,062 -- Swiss Franc [CHF] 1/25/08 103,455CHF 85,638,719 197,599 182,050 ----------------------------- 744,782 20,557,464 ----------------------------- Total unrealized appreciation and depreciation $ 64,347,399 $ 24,105,638 =============================
- -------------------------------------------------------------------------------- 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 stocks and bonds or interest rates. The Fund may also buy or write put or call options on these futures contracts. 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 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 49 | OPPENHEIMER INTERNATIONAL BOND FUND NOTES TO FINANCIAL STATEMENTS Unaudited / Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 6. FUTURES CONTRACTS Continued losses are reported in the Statement of Operations at the closing and expiration of futures contracts. The net change in unrealized appreciation and depreciation is reported in 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, 2007, the Fund had outstanding futures contracts as follows:
UNREALIZED EXPIRATION NUMBER OF VALUATION AS OF APPRECIATION CONTRACT DESCRIPTION DATES CONTRACTS MARCH 31, 2007 (DEPRECIATION) - ----------------------------------------------------------------------------------------------------- CONTRACTS TO PURCHASE 30 Day Interbank Cash Rate 4/20/07 32 $ 6,268,425 $ 325,628 Canada (Government of) Bonds, 10 yr. 6/20/07 249 24,447,077 (49,934) DAX Index 6/15/07 30 6,982,126 314,855 Euro-Bundesobligation, 10 yr. 6/7/07 3,221 494,472,702 (5,160,463) Euro-Schatz 6/7/07 4,684 646,389,372 (1,752,495) Japan (Government of) Bonds, 10 yr. 6/11/07 477 543,020,621 217,260 Nikkei 225 Index 6/7/07 53 7,785,387 (41,217) Standard & Poor's/MIB Index, 10 yr. 6/15/07 25 6,850,713 299,200 Standard & Poor's/Toronto Stock Exchange 60 Index 6/14/07 61 7,991,026 93,659 U.S. Treasury Nts., 10 yr. 6/20/07 2,733 295,505,625 5,354 U.S. Treasury Nts., 30 yr. 6/20/07 44 4,895,000 (15,079) --------------- (5,763,232) --------------- CONTRACTS TO SELL Australia (Commonwealth of) Bonds, 10 yr. 6/15/07 686 56,023,278 66,467 CAC-40 10 Index 4/20/07 290 21,872,320 (380,316) DAX Index 6/15/07 148 34,445,157 (1,428,927) Euro-Bundesobligation, 5 yr. 6/7/07 196 28,324,290 200,426 FTSE 100 Index 6/15/07 488 60,749,119 (1,675,017) Nikkei 225 Index 6/7/07 273 40,102,088 (1,017,145) Standard & Poor's 500 E-Mini 6/15/07 92 6,583,520 (60,544) Standard & Poor's/Toronto Stock Exchange 60 Index 6/14/07 52 6,812,023 (203,381) U.S. Treasury Nts., 10 yr. 6/20/07 3,809 411,848,125 594,249 United Kingdom Long Gilt 6/27/07 50 10,607,671 113,790 --------------- (2,990,398) --------------- $ (8,753,630) ===============
50 | OPPENHEIMER INTERNATIONAL BOND FUND - -------------------------------------------------------------------------------- 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. 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 or put options are noted in the Statement of Investments where applicable. Contracts subject to call or put, 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, 2007 was as follows:
CALL OPTIONS PUT OPTIONS ----------------------------- ------------------------------- NUMBER OF AMOUNT OF NUMBER OF AMOUNT OF CONTRACTS PREMIUMS CONTRACTS PREMIUMS - --------------------------------------------------------------------------------------------- Options outstanding as of September 30, 2006 -- $ -- 32,820,000 $ 556,532 Options written 9,613,620,000 578,178 9,712,160,000 1,306,895 Options closed or expired (6,358,620,000) (416,470) (2,800,980,000) (1,509,435) Options exercised (1,617,000,000) (79,512) (5,306,000,000) (272,163) --------------------------------------------------------------- Options outstanding as of March 31, 2007 1,638,000,000 $ 82,196 1,638,000,000 $ 81,829 ===============================================================
51 | OPPENHEIMER INTERNATIONAL BOND FUND NOTES TO FINANCIAL STATEMENTS Unaudited / Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 8. TOTAL RETURN SWAP CONTRACTS A total return swap is an agreement under which a set of future cash flows is exchanged between two counterparties. One cash flow stream will typically be based on a reference interest rate or index and the other on the total return of a reference asset such as a security, a basket of securities, or an index. The total return includes appreciation or depreciation on the reference asset, plus any interest or dividend payments. Payments under the swap are based on an agreed upon principal amount but since this principal amount is not exchanged, it represents neither an asset nor a liability to either counterparty, and is referred to as notional. Total return swaps are marked to market daily using primarily quotations from counterparties and brokers. The value of the contracts is separately disclosed on the Statement of Assets and Liabilities. The unrealized appreciation (depreciation) related to the change in the valuation of the notional amount of the swap is combined with the amount due to (owed by) the Fund at termination or settlement. The net change in this amount during the period is included on the Statement of Operations. The Fund also records any periodic payments received from (paid to) the counterparty, including at termination, under such contracts as realized gain (loss) on the Statement of Operations. The primary risks associated with total return swaps are credit risks (if the counterparty fails to meet its obligations) and market risk (if there is no liquid market for the agreement or unfavorable changes occur in the reference asset). As of March 31, 2007, the Fund had entered into the following total return swap agreements:
SWAP NOTIONAL PAID BY RECEIVED BY TERMINATION COUNTERPARTY AMOUNT THE FUND THE FUND DATES VALUE - --------------------------------------------------------------------------------------- Deutsche Bank AG: Six-Month $ 11,050,000 BBA LIBOR 5.25% 6/23/15 $ 1,943,126 Six-Month 16,760,000 BBA LIBOR 5.46 5/13/15 3,523,159 - --------------------------------------------------------------------------------------- Goldman Sachs Group, Inc. (The): Six-Month 11,580,000 BBA LIBOR 5.10 1/14/15 2,411,666 Six-Month 11,580,000 BBA LIBOR 5.08 1/20/15 2,472,612
52 | OPPENHEIMER INTERNATIONAL BOND FUND
SWAP NOTIONAL PAID BY RECEIVED BY TERMINATION COUNTERPARTY AMOUNT THE FUND THE FUND DATES VALUE - --------------------------------------------------------------------------------------------------------- Goldman Sachs International: One-Month BBA LIBOR USD and if negative the absolute value If positive the of the Total Return Total Return of of the MSCI Daily the MSCI Daily Total Return Net Total Return Net Belgium USD Belgium USD 5,395,703 Market Index. Market Index. 10/8/07 $ 315,851 If positive If negative, the the Total Return absolute value of of the INDF/NSE the Total Return NIFTY Index INDF/NSE NIFTY 288,440,900INR 3/07 Future. Index 3/07 Future. 4/5/07 502,413 If negative, the absolute value If positive, of the Total the Total Return of the Return of the BMU/BOVESPA BMU/BOVESPA 12,836,983BRR 4/07 Index. 4/07 Index. 4/19/07 75,253 If positive, If negative, the the Total Return absolute value of of the INDF/NSE the Total Return NIFTY Index INDF/NSE NIFTY 264,827,130INR 4/07 Future. Index 4/07 Future. 5/3/07 (60,929) If positive, the absolute value of the Total Return If negative, the of the Swiss Total Return of the Market Index Swiss Market Index 7,095,787CH 6/07 Future. 6/07 Future. 6/20/07 (94,219) If positive, the absolute value of the Total Return If negative, the of the Swiss Total Return of the Market Index Swiss Market Index 810,269CH 6/07 Future. 6/07 Future. 6/20/07 75
53 | OPPENHEIMER INTERNATIONAL BOND FUND NOTES TO FINANCIAL STATEMENTS Unaudited / Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 8. TOTAL RETURN SWAP CONTRACTS Continued
SWAP NOTIONAL PAID BY RECEIVED BY TERMINATION COUNTERPARTY AMOUNT THE FUND THE FUND DATES VALUE - --------------------------------------------------------------------------------------------------------------- Morgan Stanley International: One-Month BBA LIBOR GBP If positive, the and if negative Total Return of a the absolute value custom basket of of the Total Return securities plus the of a custom basket dividends from the 19,368,400GBP of securities. basket of securities. 10/9/07 $ 2,325,135 One-Month BBA LIBOR EUR If positive, the and if negative Total Return of a the absolute value custom basket of of the Total Return securities plus the of a custom basket dividends from the 37,021,700EUR of securities. basket of securities. 12/2/07 2,295,090 One-Month If positive, the BBA LIBOR JPY Total Return of a and if negative the custom basket of absolute value of securities plus the the Total Return dividends from of a custom basket the basket 4,201,443,500JPY of securities. of securities. 10/9/07 1,081,665 ------------ $ 16,790,897 ============
Notional amount is reported in U.S. Dollars (USD), except for those denoted in the following currencies: BRR Brazilian Real CHF Swiss Franc EUR Euro GBP British Pound Sterling INR Indian Rupee JPY Japanese Yen Abbreviations are as follows: BBA LIBOR British Bankers' Association London-Interbank Offered Rate BMU/BOVESPA Bovespa Index that trades on the Sao Paulo Stock Exchange INDF/NSE NIFTY Indian National Stock Exchange Nifty MSCI Morgan Stanley Capital International 54 | OPPENHEIMER INTERNATIONAL BOND FUND - -------------------------------------------------------------------------------- 9.INTEREST RATE SWAP CONTRACTS An interest rate swap is an agreement under which a set of future cash flows is exchanged between two counterparties. Interest rate swaps involve the exchange of rights to receive or commitments to pay interest. One cash flow stream will typically be a floating rate payment based upon a specified index while the other is typically a fixed rate. Payments under the swap are based on an agreed upon principal amount but since this principal amount is not exchanged, it represents neither an asset nor a liability to either counterparty, and is referred to as notional. Interest rate swaps are marked to market daily using primarily quotations from counterparties and brokers. The value of the contracts is separately disclosed on the Statement of Assets and Liabilities. The unrealized appreciation (depreciation) related to the change in the valuation of the notional amount of the swap is combined with the amount due to (owed by) the Fund at termination or settlement. The net change in this amount during the period is included on the Statement of Operations. The Fund also records any periodic payments received from (paid to) the counterparty, including at termination, under such contracts as realized gain (loss) on the Statement of Operations. Swap agreements entail both interest rate risk and credit risk. There is a risk, based on movements of interest rates in the future, the payments made by the Fund under a swap agreement will be greater than the payments it received. Credit risk arises from the possibility that the counterparty will default. If the counterparty defaults, the Fund's loss will consist of the net amount of contractual interest payments that the Fund has not yet received. The Manager will monitor the creditworthiness of counterparties to the Fund's interest rate swap transactions on an ongoing basis. As of March 31, 2007, the Fund had entered into the following interest rate swap agreements:
SWAP NOTIONAL PAID BY RECEIVED BY TERMINATION COUNTERPARTY AMOUNT THE FUND THE FUND DATES VALUE - -------------------------------------------------------------------------------------------------- Barclays Bank plc: 49,540,000EUR 4.2200% EURIBOR 1/29/10 $ -- 48,900,000EUR EURIBOR 4.1120% 6/15/09 (160,507) BBA 33,420,000GBP 5.5525 LIBOR GBP 6/13/09 237,081 114,700,000MXN MXN TIIE 9.2700 7/17/26 1,292,337 406,840,000NOK NIBOR 5.3850 1/29/10 45,409 - -------------------------------------------------------------------------------------------------- Citigroup Global Markets Holdings, Inc.: Six-Month 16,830,000PLZ WIBO 5.5200 3/24/10 91,577 Six-Month 26,928,000PLZ WIBO 5.5500 3/25/10 154,252 489,400,000TWD 2.3200 TWD-telerate 6/27/11 (201,066)
55 | OPPENHEIMER INTERNATIONAL BOND FUND NOTES TO FINANCIAL STATEMENTS Unaudited / Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 9. INTEREST RATE SWAP CONTRACTS Continued
SWAP NOTIONAL PAID BY RECEIVED BY TERMINATION COUNTERPARTY AMOUNT THE FUND THE FUND DATES VALUE - -------------------------------------------------------------------------------------------------------------- Credit Suisse First Boston, Inc. Six-Month (Nassau Branch) 46,785,000PLZ WIBO 4.4800% 7/1/10 $ 132,843 - -------------------------------------------------------------------------------------------------------------- Credit Suisse First Boston International: 112,580,000MXN 28-Day MXN TIIE 10.0000 7/9/15 1,351,051 133,400,000MXN MXN TIIE 8.3000 12/17/26 316,322 - -------------------------------------------------------------------------------------------------------------- Six-Month Deutsche Bank AG 2,387,000,000HUF 8.4400% BUBOR 7/4/11 (5,935) - -------------------------------------------------------------------------------------------------------------- INR MIBOR-OIS Deutsche Bank AG, 5 yr. 490,200,000INR 7.175 Compound 6/27/11 365,179 - -------------------------------------------------------------------------------------------------------------- Goldman Sachs Capital Markets LP: 16,060,000BRR BZDI 12.8400 1/2/14 278,934 26,730,000BRR BZDI 12.8700 1/2/14 475,470 34,800,000BRR BZDI 12.7300 1/2/14 551,048 45,260,000BRR BZDI 12.2900 1/2/15 452,037 53,240,000BRR BZDI 12.6700 1/4/10 509,583 53,240,000BRR BZDI 12.7100 1/4/10 530,342 53,700,000BRR BZDI 12.9200 1/2/14 992,302 75,174,396BRR BZDI 17.1800 1/2/08 2,464,450 99,100,000BRR BZDI 12.2600 1/2/15 946,119 159,910,000BRR BZDI 12.6100 1/4/10 1,440,060 CNY- 107,900,000CNY 4.0000 CFXSREPOFIX01 2/16/17 263,888 55,700,000MXN MXN TIIE 10.0000 6/24/15 661,296 60,800,000MXN MXN TIIE 9.3300 9/16/26 704,201 93,375,000MXN MXN TIIE 10.4300 5/29/15 1,326,836 93,375,000MXN MXN TIIE 10.3000 6/1/15 1,256,938 94,500,000MXN MXN TIIE 10.2900 6/4/15 1,266,240 120,050,000MXN MXN TIIE 10.2200 1/30/15 1,533,099
56 | OPPENHEIMER INTERNATIONAL BOND FUND
UNREALIZED SWAP NOTIONAL PAID BY RECEIVED BY TERMINATION APPRECIATION COUNTERPARTY AMOUNT THE FUND THE FUND DATES (DEPRECIATION) - ---------------------------------------------------------------------------------------------------------------- Goldman Sachs Group, Inc. (The): 27,880,000BRR BZDI 14.0500% 1/2/12 $ 846,373 38,800,000MXN MXN TIIE 8.7000 2/5/16 180,294 48,030,000MXN MXN TIIE 9.4100 8/31/20 516,121 61,200,000MXN MXN TIIE 10.8500 3/5/15 996,273 91,750,000MXN MXN TIIE 9.2900 7/17/26 1,028,026 96,930,000MXN MXN TIIE 9.5000 8/28/25 1,262,332 100,000,000MXN MXN TIIE 10.7500 5/8/15 1,587,551 109,710,000MXN MXN TIIE 10.7000 5/8/15 1,711,223 140,720,000MXN MXN TIIE 9.1500 8/27/26 1,405,803 144,000,000MXN MXN TIIE 9.5100 8/26/25 1,869,061 289,270,000MXN MXN TIIE 9.8400 12/31/09 1,434,988 - ---------------------------------------------------------------------------------------------------------------- JPMorgan Chase Bank: 55,370,000BRR BZDI 13.9100 1/2/12 1,523,556 BUBOR 958,000,000HUF HUF 7.3200 2/28/12 20,968 114,500,000MXN MXN TIIE 9.7600 8/17/15 1,228,706 Three-Month 264,090,000ZAR 8.2900% JIBA 6/23/08 373,577 - ---------------------------------------------------------------------------------------------------------------- Lehman Brothers Special Financing., Inc.: The greater of 0% and 8* (-0.0031375- (10 yr. CMS Index + 2 yr. CMS Index)) 131,690,000 quarterly. $ 3,950,700 2/5/17 (3,437,750) 28-Day 111,440,000MXN MXN TIIE 9.9900 7/9/15 1,308,207 Six-Month 55,540,000PLZ WIBO 4.5300 7/5/10 123,855 - ---------------------------------------------------------------------------------------------------------------- Morgan Stanley Capital Services, Inc. 269,500,000SEK STIBOR SEK 4.1825 11/12/12 (265,575) - ---------------------------------------------------------------------------------------------------------------- Santander Central Hispano: 27,880,000BRR BZDI 14.0000 1/3/12 805,980 199,500,000MXN MXN TIIE 8.1200 1/26/17 272,055 --------------- $ 34,063,010 ===============
57 | OPPENHEIMER INTERNATIONAL BOND FUND NOTES TO FINANCIAL STATEMENTS Unaudited / Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 9. INTEREST RATE SWAP CONTRACTS Continued Notional amount is reported in U.S. Dollars (USD), except for those denoted in the following currencies: BRR Brazilian Real CNY Chinese Renminbi EUR Euro GBP British Pound Sterling HUF Hungarian Forint INR Indian Rupee MXN Mexican Nuveo Peso NOK Norwegian Krone PLZ Polish Zloty SEK Swedish Krone TWD New Taiwan Dollar ZAR South African Rand Index abbreviations are as follows: BBA LIBOR British Bankers' Association London-Interbank Offered Rate BUBOR Budapest Interbank Offered Rate BZDI Brazil Interbank Deposit Rate CFXSREPOFIX01 Chinese Renminbi 7 Days Repurchase Fixing Rates EURIBOR Euro Interbank Offered Rate JIBA South Africa Johannesburg Interbank Agreed Rate MXN TIIE Mexican Peso-Interbank Equilibrium Interest Rate MIBOR-OIS Mid Market Interest Rate for French Franc/Austrian Schilling and India Swap Composites-Overnight Indexed Swap NIBOR Norwegian Interbank Offered Rate STIBOR Stockholm Interbank Offered Rate WIBO Poland Warsaw Interbank Offer Bid Rate - -------------------------------------------------------------------------------- 10. CREDIT DEFAULT SWAP CONTRACTS A credit default swap is a bilateral contract that enables an investor to buy or sell protection against a defined-issuer credit event. The Fund may enter into credit default swaps to hedge an existing position or to obtain exposure to a security or market by purchasing or selling credit protection. The Fund may enter into credit default swaps on a single security, or a basket of securities. In a credit default swap contract, the purchaser of the contract will pay a periodic interest fee, similar to an insurance premium, on the notional amount of the swap contract to the counterparty (the seller of the contract). If there is a credit event (for example, bankruptcy or a failure to timely pay interest or principal), the purchaser will exercise the contract and will receive a payment from the seller of the contract equal to the notional value of the credit default swap contract less the value of the underlying security. The periodic interest fees are accrued daily as a component of unrealized appreciation (depreciation) and are recorded as realized loss (gain) upon payment. In the event that the credit default swap is exercised due to a credit event, the difference between the value of the underlying security and the notional amount is recorded as realized gain (loss) and is included on the Statement of Operations. 58 | OPPENHEIMER INTERNATIONAL BOND FUND Credit default swaps are marked to market daily using primarily quotations from counterparties and brokers. The value of the contracts is separately disclosed on the Statement of Assets and Liabilities. The unrealized appreciation (depreciation) related to the change in the valuation of the notional amount of the swap is combined with the accrued interest due to (owed by) the Fund at termination or settlement. The net change in this amount during the period is included on the Statement of Operations. Risks of credit default swaps include, but are not limited to, the cost of paying for credit protection if there are no credit events, pricing transparency when assessing the cost of a credit default swap, counterparty risk, adverse pricing when purchasing bonds to satisfy its delivery obligation, and the need to fund the delivery obligation (either cash or defaulted securities depending on whether the Fund is the purchaser or seller of the credit default swap contract, respectively). Information regarding such credit default swaps as of March 31, 2007 is as follows:
BUY/SELL NOTIONAL PREMIUM CREDIT AMOUNT PAY/RECEIVE TERMINATION PAID/ COUNTERPARTY REFERENCE ENTITY PROTECTION (000S) FIXED RATE DATES (RECEIVED) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- Citigroup Global Markets Holdings, Inc. Hungary (Republic of) Buy $ 7,535 0.40% 12/20/15 $ -- $ (38,109) - ----------------------------------------------------------------------------------------------------------------------------------- Credit Suisse First Boston, Inc. NJSC Naftogaz Sell 8,215 3.25 4/20/11 -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Deutsche Bank AG: Peru (Republic of) Sell 1,200 1.32 4/20/17 -- 5,540 Philippines (Republic of the) Buy 14,000 3.69 9/20/15 -- (1,738,412) - ----------------------------------------------------------------------------------------------------------------------------------- JPMorgan Chase Bank: Russian Federation Buy 550 2.40 10/9/13 -- (61,734) Ukraine (Republic of) Sell 1,056 1.92 8/20/11 -- 27,059 - ----------------------------------------------------------------------------------------------------------------------------------- Morgan Stanley Capital Services, Inc.: Colombia (Republic of) Buy 1,980 3.70 8/20/15 -- (307,522) Dominican Republic Buy 7,970 3.25 6/20/11 -- (627,681) Istanbul Bond Co SA for Finansbank Sell 17,390 1.30 3/24/13 -- (288,438) Turkey (Republic of) Sell 5,150 2.75 11/20/16 -- 111,437 Venezuela (Republic of) Buy 4,415 3.48 11/20/15 (473,599) (398,297) --------------------------- $ (473,599) $ (3,316,157) ===========================
59 | OPPENHEIMER INTERNATIONAL BOND FUND NOTES TO FINANCIAL STATEMENTS Unaudited / Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 11. CURRENCY SWAPS A currency swap is an arrangement under which counterparties agree to exchange different currencies equivalent to the notional value at contract inception and reverse the exchange of the same notional values of those currencies at contract termination. The contract may also include periodic exchanges of cash flows based on a specified index or interest rate. Currency swaps are marked to market daily using primarily quotations from counterparties and brokers. The value of the contracts is separately disclosed on the Statement of Assets and Liabilities. The unrealized appreciation (depreciation) related to the change in the valuation of the notional amount of the swap is combined with the amount due to (owed by) the Fund at termination or settlement. The net change in this amount during the period is included on the Statement of Operations. The Fund also records any periodic payments received from (paid to) the counterparty, including at termination, under such contracts as realized gain (loss) on the Statement of Operations. Currency swap agreements entail exchange rate risk, interest rate risk and credit risk. Due to the exchange of currency at contract termination, changes in currency exchange rates may result in the Fund paying an amount greater than the amount received. There is a risk, based on movements of interest rates or indexes that the periodic payments made by the Fund will be greater than the payments received. Credit risk arises from the possibility that the counterparty will default on its payments to the Fund. The Manager monitors the creditworthiness of counterparties on an ongoing basis. As of March 31, 2007, the Fund entered into the following currency swap arrangements:
NOTIONAL SWAP AMOUNT PAID BY RECEIVED BY TERMINATION COUNTERPARTY (000S) THE FUND THE FUND DATES VALUE - ----------------------------------------------------------------------------------------- Merrill Lynch: Three-Month 3,840TRY/USD BBA LIBOR 17.10% 2/6/12 $ 21,565 - ----------------------------------------------------------------------------------------- Credit Suisse: Three-Month 7,370TRY/USD BBA LIBOR 17.25 2/7/12 87,651 Three-Month 11,105TRY/USD BBA LIBOR 17.30 2/9/12 73,287 Three-Month 18,590TRY/USD BBA LIBOR 16.75 2/26/12 (277,478) ---------- $ (94,975) ==========
Notional amount is reported in U.S. Dollars (USD), except for those denoted in the following currency: TRY Turkish Lira Abbreviation is as follows: BBA LIBOR British Bankers' Association London-Interbank Offered Rate 60 | OPPENHEIMER INTERNATIONAL BOND FUND - -------------------------------------------------------------------------------- 12. ILLIQUID OR RESTRICTED SECURITIES AND CURRENCY As of March 31, 2007, 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 will not invest 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. Securities that are illiquid or restricted are marked with the applicable footnote on the Statement of Investments. Information concerning restricted currency is as follows: ACQUISITION VALUATION AS OF UNREALIZED CURRENCY DATES COST MARCH 31, 2007 APPRECIATION - -------------------------------------------------------------------------------- Argentine Peso [ARP] 1/31/07-3/30/07 $4,441,805 $4,452,553 $10,748 - -------------------------------------------------------------------------------- 13. SECURITIES LENDING The Fund lends portfolio securities from time to time in order to earn additional income. In return, the Fund receives collateral in the form of securities, letters of credit or cash, against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business each day. If the Fund is undercollateralized at the close of business due to an increase in market value of securities on loan, additional collateral is requested from the borrowing counterparty and is delivered to the Fund on the next business day. Cash collateral may be invested in approved investments and the Fund bears the risk of any loss in value of these investments. The Fund retains a portion of the interest earned from the collateral. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund could experience delays and cost in recovering the securities loaned or in gaining access to the collateral. The Fund continues to receive the economic benefit of interest or dividends paid on the securities loaned in the form of a substitute payment received from the borrower. As of March 31, 2007, the Fund had on loan securities valued at $166,196,385, which are included in the Statement of Assets and Liabilities as "Investments, at value" and, when applicable, as "Receivable for Investments sold." Collateral of $169,759,190 was received for the loans, of which $25,744,907 was received in cash and subsequently invested in approved investments. In addition, collateral of $144,014,284 was also received in the form of securities. 61 | OPPENHEIMER INTERNATIONAL BOND FUND NOTES TO FINANCIAL STATEMENTS Unaudited / Continued - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 14. RECENT ACCOUNTING PRONOUNCEMENTS In June 2006, the Financial Accounting Standards Board ("FASB") issued FASB Interpretation No. 48 ("FIN 48"), ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES. FIN 48 clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements in accordance with FASB Statement No. 109, ACCOUNTING FOR INCOME TAXES. FIN 48 requires the evaluation of tax positions taken in the course of preparing the Fund's tax returns to determine whether it is "more-likely-than-not" that tax positions taken in the Fund's tax return will be ultimately sustained. A tax liability and expense must be recorded in respect of any tax position that, in Management's judgment, will not be fully realized. FIN 48 is effective for fiscal years beginning after December 15, 2006. As of March 31, 2007, the Manager has evaluated the implications of FIN 48 and does not currently anticipate a material impact to the Fund's financial statements. The Manager will continue to monitor the Fund's tax positions prospectively for potential future impacts. In September 2006, the FASB issued Statement of Financial Accounting Standards ("SFAS") No. 157, FAIR VALUE MEASUREMENTS. This standard establishes a single authoritative definition of fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. SFAS No. 157 applies to fair value measurements already required or permitted by existing standards. SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. As of March 31, 2007, the Manager does not believe the adoption of SFAS No. 157 will materially impact the financial statement amounts; however, additional disclosures may be required about the inputs used to develop the measurements and the effect of certain of the measurements on changes in net assets for the period. 62 | OPPENHEIMER INTERNATIONAL BOND FUND PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES; UPDATES TO STATEMENTS OF INVESTMENTS Unaudited - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which the Fund votes proxies relating to securities ("portfolio proxies") held by the Fund. A description of the Fund's Portfolio Proxy Voting Policies and Procedures is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.525.7048, (ii) on the Fund's website at www.oppenheimerfunds.com, and (iii) on the SEC's website at www.sec.gov. In addition, the Fund is required to file Form N-PX, with its complete proxy voting record for the 12 months ended June 30th, no later than August 31st of each year. The Fund's voting record is available (i) without charge, upon request, by calling the Fund toll-free at 1.800.525.7048, and (ii) in the Form N-PX filing on the SEC's website at www.sec.gov. The Fund files its complete schedule of portfolio holdings with the SEC for the first quarter and the third quarter of each fiscal year on Form N-Q. The Fund's Form N-Q filings are available on the SEC's website at http://www.sec.gov. Those forms may be reviewed and copied at the SEC's Public Reference Room in Washington D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. 63 | OPPENHEIMER INTERNATIONAL BOND FUND BOARD APPROVAL OF THE FUND'S INVESTMENT ADVISORY AGREEMENT Unaudited - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Each year, the Board of Trustees (the "Board"), including a majority of the independent Trustees, is required to determine whether to renew the Fund's investment advisory agreement (the "Agreement"). The Investment Company Act of 1940, as amended, requires that the Board request and evaluate, and that the Manager provide, such information as may be reasonably necessary to evaluate the terms of the Agreement. The Board employs an independent consultant to prepare a report that provides information, including comparative information, that the Board requests for that purpose. In addition, the Board receives information throughout the year regarding Fund services, fees, expenses and performance. The Manager and the independent consultant provided information to the Board on the following factors: (i) the nature, quality and extent of the Manager's services, (ii) the investment performance of the Fund and the Manager, (iii) the fees and expenses of the Fund, including comparative expense information, (iv) the profitability of the Manager and its affiliates, including an analysis of the cost of providing services, (v) whether economies of scale are realized as the Fund grows and whether fee levels reflect these economies of scale for Fund investors and (vi) other benefits to the Manager from its relationship with the Fund. Outlined below is a summary of the principal information considered by the Board as well as the Board's conclusions. The Board was aware that there are alternatives to retaining the Manager. NATURE, QUALITY AND EXTENT OF SERVICES. The Board considered information about the nature and extent of the services provided to the Fund and information regarding the Manager's key personnel who provide such services. The Manager's duties include providing the Fund with the services of the portfolio manager and the Manager's investment team, who provide research, analysis and other advisory services in regard to the Fund's investments; securities trading services; oversight of third party service providers; monitoring compliance with applicable Fund policies and procedures and adherence to the Fund's investment restrictions. The Manager is responsible for providing certain administrative services to the Fund as well. Those services include providing and supervising all administrative and clerical personnel who are necessary in order to provide effective corporate administration for the Fund; compiling and maintaining records with respect to the Fund's operations; preparing and filing reports required by the Securities and Exchange Commission; preparing periodic reports regarding the operations of the Fund for its shareholders; preparing proxy materials for shareholder meetings; and preparing the registration statements required by Federal and state securities laws for the sale of the Fund's shares. The Manager also provides the Fund with office space, facilities and equipment. The Board also considered the quality of the services provided and the quality of the Manager's resources that are available to the Fund. The Board took account of the fact 64 | OPPENHEIMER INTERNATIONAL BOND FUND that the Manager has had over forty years of experience as an investment adviser and that its assets under management rank it among the top mutual fund managers in the United States. The Board evaluated the Manager's administrative, accounting, legal and compliance services, and information the Board has received regarding the experience and professional qualifications of the Manager's key personnel and the size and functions of its staff providing investment management services to the Fund. In its evaluation of the quality of the portfolio management services provided, the Board considered the experience of Arthur P. Steinmetz and the Manager's international and quantitative fixed income investment team and analysts. Mr. Steinmetz has been a portfolio manager of the Fund since April 2004. The Board members also considered the totality of their experiences with the Manager as directors or trustees of the Fund and other funds advised by the Manager. In light of the foregoing, the Board concluded that the Fund benefits from the services provided under the Agreement as a result of the Manager's experience, reputation, personnel, operations, and resources. INVESTMENT PERFORMANCE OF THE MANAGER AND THE FUND. During the year, the Manager provided information on the investment performance of the Fund and the Manager at each Board meeting, including comparative performance information. The Board also reviewed information, prepared by the Manager and by the independent consultant, comparing the Fund's historical performance to relevant market indices and to the performance of other retail front-end load and no-load international income funds (including both funds advised by the Manager and funds advised by other investment advisers). The Board noted that the Fund's one-year, three-year, five-year and ten-year performance were better than its peer group median. COSTS OF SERVICES AND PROFITS REALIZED BY THE MANAGER. The Board considered information regarding the Manager's costs in serving as the Fund's investment adviser, including the costs associated with the personnel and systems necessary to manage the Fund, and information regarding the Manager's profitability from its relationship with the Fund. The Board reviewed the fees paid to the Manager and the other expenses borne by the Fund. The Board also evaluated the comparability of the fees charged and the services provided to the Fund to the fees and services for other clients or accounts advised by the Manager. The independent consultant provided comparative data in regard to the fees and expenses of the Fund, other international income funds, global income funds and other funds with comparable asset levels and distribution features. The Board noted that the Fund's contractual and actual management fees are lower than its peer group median. 65 | OPPENHEIMER INTERNATIONAL BOND FUND BOARD APPROVAL OF THE FUND'S INVESTMENT ADVISORY AGREEMENT Unaudited / Continued - -------------------------------------------------------------------------------- ECONOMIES OF SCALE. The Board reviewed whether the Manager may realize economies of scale in managing and supporting the Fund and whether any economies of scale would benefit the Fund's shareholders. The Board noted that the Fund currently has management fee breakpoints, which are intended to share with shareholders any economies of scale that may exist as the Fund grows. OTHER BENEFITS TO THE MANAGER. In addition to considering the profits realized by the Manager, the Board considered information that was provided regarding the direct and indirect benefits the Manager receives as a result of its relationship with the Fund, including compensation paid to the Manager's affiliates. The Board also considered that the Manager must be able to pay and retain experienced professional personnel at competitive rates to provide services to the Fund and that maintaining the financial viability of the Manager is important in order for the Manager to continue to provide quality services to the Fund and its shareholders. CONCLUSIONS. These factors were also considered by the independent Trustees meeting separately from the full Board, assisted by experienced counsel to the Fund and to the independent Trustees. Fund counsel and the independent Trustees' counsel are both independent of the Manager within the meaning and intent of the Securities and Exchange Commission Rules. Based on its review of the information it received and its evaluations described above, the Board, including a majority of the independent Trustees, decided to continue the Agreement for another year. In arriving at this decision, the Board did not single out any factor or factors as being more important than others, but considered all of the factors together. The Board considered the Agreement, including the management fee, in light of all of the surrounding circumstances. 66 | OPPENHEIMER INTERNATIONAL BOND FUND ITEM 2. CODE OF ETHICS. Not applicable to semiannual reports. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable to semiannual reports. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable to semiannual reports. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS Not applicable. ITEM 6. SCHEDULE OF INVESTMENTS. Not applicable. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. THE FUND'S GOVERNANCE COMMITTEE PROVISIONS WITH RESPECT TO NOMINATIONS OF DIRECTORS/TRUSTEES TO THE RESPECTIVE BOARDS 1. The Fund's Governance Committee (the "Committee") will evaluate potential Board candidates to assess their qualifications. The Committee shall have the authority, upon approval of the Board, to retain an executive search firm to assist in this effort. The Committee may consider recommendations by business and personal contacts of current Board members and by executive search firms which the Committee may engage from time to time and may also consider shareholder recommendations. The Committee may consider the advice and recommendation of the Funds' investment manager and its affiliates in making the selection. 2. The Committee shall screen candidates for Board membership. The Committee has not established specific qualifications that it believes must be met by a trustee nominee. In evaluating trustee nominees, the Committee considers, among other things, an individual's background, skills, and experience; whether the individual is an "interested person" as defined in the Investment Company Act of 1940; and whether the individual would be deemed an "audit committee financial expert" within the meaning of applicable SEC rules. The Committee also considers whether the individual's background, skills, and experience will complement the background, skills, and experience of other nominees and will contribute to the Board. There are no differences in the manner in which the Committee evaluates nominees for trustees based on whether the nominee is recommended by a shareholder. 3. The Committee may consider nominations from shareholders for the Board at such times as the Committee meets to consider new nominees for the Board. The Committee shall have the sole discretion to determine the candidates to present to the Board and, in such cases where required, to shareholders. Recommendations for trustee nominees should, at a minimum, be accompanied by the following: o the name, address, and business, educational, and/or other pertinent background of the person being recommended; o a statement concerning whether the person is an "interested person" as defined in the Investment Company Act of 1940; o any other information that the Funds would be required to include in a proxy statement concerning the person if he or she was nominated; and o the name and address of the person submitting the recommendation and, if that person is a shareholder, the period for which that person held Fund shares. The recommendation also can include any additional information which the person submitting it believes would assist the Committee in evaluating the recommendation. 4. Shareholders should note that a person who owns securities issued by Massachusetts Mutual Life Insurance Company (the parent company of the Funds' investment adviser) would be deemed an "interested person" under the Investment Company Act of 1940. In addition, certain other relationships with Massachusetts Mutual Life Insurance Company or its subsidiaries, with registered broker-dealers, or with the Funds' outside legal counsel may cause a person to be deemed an "interested person." 5. Before the Committee decides to nominate an individual as a trustee, Committee members and other directors customarily interview the individual in person. In addition, the individual customarily is asked to complete a detailed questionnaire which is designed to elicit information which must be disclosed under SEC and stock exchange rules and to determine whether the individual is subject to any statutory disqualification from serving as a trustee of a registered investment company. ITEM 11. CONTROLS AND PROCEDURES. Based on their evaluation of the registrant's disclosure controls and procedures (as defined in rule 30a-3(c) under the Investment Company Act of 1940 (17 CFR 270.30a-3(c)) as of 03/31/2007, the registrant's principal executive officer and principal financial officer found the registrant's disclosure controls and procedures to provide reasonable assurances that information required to be disclosed by the registrant in the reports that it files under the Securities Exchange Act of 1934 (a) is accumulated and communicated to registrant's management, including its principal executive officer and principal financial officer, to allow timely decisions regarding required disclosure, and (b) is recorded, processed, summarized and reported, within the time periods specified in the rules and forms adopted by the U.S. Securities and Exchange Commission. There have been no changes in the registrant's internal controls over financial reporting that occurred during the registrant's second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 12. EXHIBITS. (a) (1) Not applicable to semiannual reports. (2) Exhibits attached hereto. (3) Not applicable. (b) Exhibit attached hereto. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Oppenheimer International Bond Fund By: /s/ John V. Murphy ------------------ John V. Murphy Principal Executive Officer Date: 05/14/2007 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ John V. Murphy ------------------ John V. Murphy Principal Executive Officer Date: 05/14/2007 By: /s/ Brian W. Wixted ------------------- Brian W. Wixted Principal Financial Officer Date: 05/14/2007 EX-99.CERT 2 rs880_39476cert302.txt RS880_39476CERT302.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 officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of Trustees (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: 05/14/2007 /s/ John V. Murphy - ------------------ John V. Murphy Principal Executive Officer Exhibit 99.CERT Section 302 Certifications CERTIFICATIONS I, Brian W. Wixted, certify that: 1. I have reviewed this report on Form N-CSR of Oppenheimer International 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 officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of Trustees (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: 05/14/2007 /s/ Brian W. Wixted - ------------------- Brian W. Wixted Principal Financial Officer EX-99.906CERT 3 rs880_39476cert906.txt RS880_39476CERT906.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, Principal Executive Officer, and Brian W. Wixted, Principal Financial Officer, of Oppenheimer International Bond Fund (the "Registrant"), each certify to the best of his knowledge that: 1. The Registrant's periodic report on Form N-CSR for the period ended 03/31/2007 (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. Principal Executive Officer Principal 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: 05/14/2007 Date: 05/14/2007 -----END PRIVACY-ENHANCED MESSAGE-----