-----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, HXZQSb8a4moFo39sCiCElGGrcdYmsU1QpMg8njJbCd2xr3smOO+MacccVpqyhzKe DZOpnfpYhGqwYM+/C8aTtQ== 0000935069-08-001209.txt : 20080527 0000935069-08-001209.hdr.sgml : 20080526 20080527132932 ACCESSION NUMBER: 0000935069-08-001209 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20080331 FILED AS OF DATE: 20080527 DATE AS OF CHANGE: 20080527 EFFECTIVENESS DATE: 20080527 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: 08860156 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_46581ncsrs.txt RS880_46581NCSRS.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: 03/31/2008 ---------- ITEM 1. REPORTS TO STOCKHOLDERS. March 31, 2008 - -------------------------------------------------------------------------------- Oppenheimer Management International Bond Commentaries Fund and Semiannual Report - -------------------------------------------------------------------------------- MANAGEMENT COMMENTRIES An Interview with Your Fund's Manager Listing of Top Holdings SEMIANNUAL REPORT Listing of Investments Financial Statements [OPPENHEIMERFUNDS LOGO] TOP HOLDINGS AND ALLOCATIONS TOP TEN GEOGRAPHICAL HOLDINGS United States 13.9% France 10.6 Germany 10.4 Japan 8.9 United Kingdom 7.9 Brazil 6.3 Canada 3.4 Australia 3.2 Peru 3.0 Russia 2.8
Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2008, and are based on the total market value of investments. REGIONAL ALLOCATION [REGIONAL ALLOCATION CHART] Europe 39.6% United States/Canada 17.3 Latin America 17.1 Asia 14.9 Middle East/Africa 6.2 Emerging Europe 4.6 Supranational 0.3
Portfolio holdings and allocations are subject to change. Percentages are as of March 31, 2008, 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 applicable); 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, 2008. ACTUAL EXPENSES. The first section of the table provides information about actual account values and actual expenses. You may use the information in this section for the class of shares you hold, together with the amount you invested, to estimate the expense that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600.00 account value divided by $1,000.00 = 8.60), then multiply the result by the number in the first section under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES. The second section of the table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio for each class of shares, and an assumed rate of return of 5% per year for each class before expenses, which is not the 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 12 | OPPENHEIMER INTERNATIONAL BOND FUND "hypothetical" section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
BEGINNING ENDING EXPENSES ACCOUNT ACCOUNT PAID DURING VALUE VALUE 6 MONTHS ENDED ACTUAL OCTOBER 1, 2007 MARCH 31, 2008 MARCH 31, 2008 - ------------- ---------------- --------------- ---------------- Class A $ 1,000.00 $ 1,109.20 $ 4.76 Class B 1,000.00 1,105.10 9.04 Class C 1,000.00 1,105.60 8.51 Class N 1,000.00 1,105.40 6.97 Class Y 1,000.00 1,111.40 2.75 HYPOTHETICAL (5% return before expenses) Class A 1,000.00 1,020.50 4.56 Class B 1,000.00 1,016.45 8.66 Class C 1,000.00 1,016.95 8.15 Class N 1,000.00 1,018.40 6.68 Class Y 1,000.00 1,022.40 2.63
Expenses are equal to the Fund's annualized expense ratio for that class, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period). Those annualized expense ratios, excluding indirect expenses from affiliated fund, based on the 6-month period ended March 31, 2008 are as follows:
CLASS EXPENSE RATIOS - ---------- -------------- Class A 0.90% Class B 1.71 Class C 1.61 Class N 1.32 Class Y 0.52
The expense ratios reflect reduction to custodian expenses and 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 and reduction to custodian expenses, if applicable. 13 | OPPENHEIMER INTERNATIONAL BOND FUND STATEMENT OF INVESTMENTS March 31, 2008 / Unaudited
PRINCIPAL AMOUNT VALUE -------------- -------------- ASSET-BACKED SECURITIES -- 0.0% Taganka Car Loan Finance plc, Automobile Asset-Backed Certificates, Series 2006-1A, Cl. C, 6.161%, 11/14/13 (1,2) (Cost $ 1,350,000) $ 1,350,000 $ 1,250,775 ============== ============== U.S.GOVERNMENT OBLIGATIONS -- 0.8% U.S.Treasury Nts., 3.25%, 12/31/09 (3) (Cost $101,984,520) 100,000,000 102,851,600 ============== ============== FOREIGN GOVERNMENT OBLIGATIONS -- 61.8% ARGENTINA -- 0.3% Argentina (Republic of) Bonds: 3.092%, 8/3/12 (2) 10,266,875 8,727,562 7%,10/3/15 2,450,000 1,864,450 Series GDP, 0.971%, 12/15/35 (2) 14,920,000 1,797,860 Series V,7%, 3/28/11 18,993,000 17,193,943 Series VII, 7%, 9/12/13 4,700,000 3,850,280 -------------- -------------- Neuquen (Province Del) Sr. Sec. Nts., 8.656%, 10/18/14 (4) 3,375,000 3,299,063 -------------- 36,733,158 -------------- AUSTRALIA -- 3.1% New South Wales Treasury Corp. Bonds, Series 10RG, 7%, 12/1/10 18,325,000 AUD 16,824,581 -------------- -------------- New South Wales Treasury Corp. Sr. Unsec.Nts., 6%, 10/1/09 390,495,000 AUD 352,244,541 -------------- -------------- Queensland Treasury Corp. Unsec. Nts., Series 09G, 6%, 7/14/09 18,875,000 AUD 17,060,053 -------------- 386,129,175 -------------- AUSTRIA -- 0.8% Austria (Republic of) Unsec. Unsub. Nts.,Series E, 4%, 9/15/16 60,081,000 EUR 94,648,372 -------------- -------------- BELGIUM -- 0.7% Belgium (Kingdom of) Bonds, Series 44,5%, 3/28/35 55,700,000 EUR 90,696,178 -------------- -------------- BRAZIL -- 3.6% Brazil (Federal Republic of) Bonds: 6%,1/17/17 16,320,000 16,679,040 8%, 1/15/18 43,285,000 48,587,413 8.75%,2/4/25 2,135,000 2,620,713 8.875%,10/14/19 28,355,000 35,089,313 10.50%,7/14/14 17,650,000 22,459,625 -------------- -------------- Brazil (Federal Republic of) Nts.: 7.875%,3/7/15 4,000,000 4,530,000 10%,1/10/10 198,234,000 BRR 107,483,600 10%,1/1/12 142,758,000 BRR 75,753,593 10%,1/1/17 185,202,000 BRR 90,839,433 -------------- -------------- Brazil (Federal Republic of) Treasury Bills,10.697%, 7/1/08 (5) 92,400,000 BRR 51,253,749 -------------- 455,296,479 --------------
14 | OPPENHEIMER INTERNATIONAL BOND FUND
PRINCIPAL AMOUNT VALUE ------------------ --------------- BULGARIA -- 0.0% Bulgaria (Republic of) Bonds: 8.25%, 1/15/15 $ 1,500,000 $ 1,758,750 8.25%, 1/15/15 (4) 1,440,000 1,688,400 -------------- 3,447,150 -------------- CANADA -- 3.2% Canada (Government of) Nts.: 3.75%, 6/1/12 203,070,000 CAD 204,365,834 4.25%, 12/1/09 198,820,000 CAD 198,907,164 -------------- 403,272,998 -------------- COLOMBIA -- 0.6% Bogota Distrio Capital Sr. Bonds, 9.75%, 7/26/28 (4) 16,413,000,000 COP 7,649,836 ------------------ -------------- Colombia (Republic of) Bonds: 7.375%, 9/18/37 3,390,000 3,644,250 10.75%, 1/15/13 12,180,000 15,115,380 12%, 10/22/15 19,665,000,000 COP 11,261,759 ------------------ -------------- Colombia (Republic of) Nts.: 8.25%, 12/22/14 6,655,000 7,753,075 11.75%, 3/1/10 7,228,000,000 COP 4,015,724 ------------------ -------------- Colombia (Republic of) Unsec. Nts., 7.375%, 1/27/17 11,650,000 12,914,025 -------------- EEB International Ltd. Sr. Unsec. Bonds, 8.75%, 10/31/14 (4) 6,850,000 7,089,750 -------------- 69,443,799 -------------- COSTA RICA -- 0.0% Costa Rica (Republic of) Unsec. Bonds, 9.995%, 8/1/20 2,730,000 3,552,413 ------------------ -------------- DENMARK -- 0.6% Denmark (Kingdom of) Bonds: 4%, 11/15/10 109,710,000 DKK 23,317,335 4%, 11/15/15 79,875,000 DKK 16,852,993 7%, 11/10/24 28,975,000 DKK 7,908,744 ------------------ -------------- Denmark (Kingdom of) Nts., 4%, 8/15/08 115,510,000 DKK 24,428,186 -------------- 72,507,258 -------------- DOMINICAN REPUBLIC -- 0.0% Dominican Republic Unsec. Unsub. Bonds, Series REGS, 9.04%, 1/23/18 2,705,118 2,880,950 ------------------ -------------- EGYPT -- 0.1% Egypt (The Arab Republic of) Unsec. Unsub. Bonds, 8.75%, 7/15/12 (4) 54,260,000 EGP 10,183,242 ------------------ -------------- EL SALVADOR -- 0.1% El Salvador (Republic of) Bonds: 7.625%, 9/21/34 (4) 1,185,000 1,291,650 7.65%, 6/15/35 (4) 7,740,000 8,243,100 -------------- 9,534,750 --------------
15 | OPPENHEIMER INTERNATIONAL BOND FUND STATEMENT OF INVESTMENTS Unaudited / Continued
PRINCIPAL AMOUNT VALUE --------------- -------------- FRANCE--10.1% France (Government of) Obligations Assimilables du Tresor Bonds: 3.25%, 4/25/16 243,495,000 EUR $ 364,854,237 4%, 10/25/38 182,975,000 EUR 258,697,260 ----------- -------------- France (Government of) Treasury Nts.: 3.75%, 1/12/13 293,355,000 EUR 462,283,871 4.50%, 7/12/12 116,140,000 EUR 188,528,329 -------------- 1,274,363,697 -------------- GERMANY--9.8% Germany (Federal Republic of) Bonds: Series 03, 3.75%, 7/4/13 285,480,000 EUR 453,542,767 Series 05, 4%, 1/4/37 (6) 474,115,000 EUR 682,811,379 Series 07, 4.25%, 7/4/17 60,210,000 EUR 97,666,702 -------------- 1,234,020,848 -------------- GHANA--0.1% Ghana (Republic of) Bonds, 8.50%, 10/4/17 (4) 6,100,000 6,405,000 ----------- -------------- GREECE--1.7% Greece (Republic of) Bonds, 4.60%, 5/20/13 129,590,000 EUR 208,728,877 ----------- -------------- GUATEMALA -- 0.0% Guatemala (Republic of) Nts.: 10.25%, 11/8/11 (4) 160,000 186,080 10.25%, 11/8/11 4,830,000 5,617,290 -------------- 5,803,370 -------------- INDONESIA--0.3% Indonesia (Republic of) Nts.: 6.75%, 3/10/14 (4) 11,305,000 11,898,513 6.90%, 1/17/18 (4) 8,270,000 8,717,432 7.25%, 4/20/15 (4) 7,450,000 7,971,500 ----------- -------------- Indonesia (Republic of) Unsec. Nts., 8.50%, 10/12/35 (4) 6,540,000 7,373,850 -------------- 35,961,295 -------------- ISRAEL--0.7% Israel (State of) Bonds: 5.50%, 2/28/17 185,040,000 ILS 51,693,548 Series 2682, 7.50%, 3/31/14 107,990,000 ILS 34,027,563 -------------- 85,721,111 -------------- ITALY--2.2% Italy (Republic of) Nts., Certificati di Credito del Tesoro, 4.20%, 7/1/09 (2) 173,190,000 EUR 273,859,541
16 | OPPENHEIMER INTERNATIONAL BOND FUND
PRINCIPAL AMOUNT VALUE ------------------ ---------------- JAPAN--8.5% Japan (Government of) Bonds: 2 yr., Series 252, 0.80%, 1/15/09 41,477,000,000 JPY $ 416,919,164 10 yr., Series 245, 0.90%, 12/20/12 19,348,000,000 JPY 195,514,180 10 yr., Series 288, 1.70%, 9/20/17 17,087,000,000 JPY 178,852,961 30 yr., Series 25, 2.30%, 12/20/36 27,840,000,000 JPY 274,545,746 ---------------- 1,065,832,051 ---------------- MALAYSIA--0.4% Johor Corp. Malaysia (Government of) Bonds, Series P3, 1%, 7/31/12 (1) 107,980,000 MYR 40,680,288 -------------- ---------------- Malaysia (Government of) Bonds, Series 2/05, 4.72%, 9/30/15 39,730,000 MYR 13,179,156 ---------------- 53,859,444 ---------------- MEXICO--1.8% Mexican Williams Sr. Nts., 5.488%, 11/15/08 (1,2) 500,000 504,100 -------------- ---------------- United Mexican States Bonds: Series A, 6.375%, 1/16/13 10,815,000 11,907,315 Series M7, 8%, 12/24/08 (2) 1,099,090,000 MXN 103,673,999 Series MI10, 8%, 12/19/13 547,680,000 MXN 52,927,623 -------------- ---------------- United Mexican States Nts., 8.375%, 1/14/11 53,310,000 60,293,610 ---------------- 229,306,647 ---------------- NIGERIA--1.2% Nigeria (Federal Republic of) Nts.: Series 3Y2S, 12.50%, 2/24/09 356,000,000 NGN 3,110,990 Series 3Y7S, 17%, 12/16/08 570,000,000 NGN 5,110,110 -------------- ---------------- Nigeria (Federal Republic of) Promissory Nts., Series RC, 5.092%, 1/5/10 259,338 269,911 -------------- ---------------- Nigeria (Federal Republic of) Treasury Bills, Series 364, 9.13%, 2/5/09 (5) 1,350,000,000 NGN 10,649,853 -------------- ---------------- Nigeria (Federal Republic of) Treasury Bonds: Series 3Y, 9.23%, 5/25/12 2,404,900,000 NGN 20,183,780 Series 3Y, 12.50%, 7/31/09 673,100,000 NGN 5,979,789 Series 3Y1S, 15%, 1/27/09 522,300,000 NGN 4,640,089 Series 5 yr., 9.50%, 2/23/12 1,180,900,000 NGN 10,032,077 Series 5Y, 9.50%, 8/31/12 2,202,000,000 NGN 18,659,582 Series 5Y13, 12.99%, 9/29/11 866,700,000 NGN 8,310,518 Series 7Y, 9.20%, 6/29/14 650,000,000 NGN 5,338,701 Series 7Y16, 11.99%, 12/22/13 1,422,500,000 NGN 13,062,722 Series 7YR, 12.74%, 10/27/13 1,050,600,000 NGN 9,871,951 Series 10 yr., 9.35%, 8/31/17 2,514,200,000 NGN 19,833,970 Series 364, 9.163%, 1/8/09 (5) 2,153,400,000 NGN 17,103,586 ---------------- 152,157,629 ----------------
17 | OPPENHEIMER INTERNATIONAL BOND FUND STATEMENT OF INVESTMENTS Unaudited / Continued
PRINCIPAL AMOUNT VALUE ------------------ ----------------- PANAMA--0.4% Panama (Republic of) Bonds: 6.70%, 1/26/36 $ 12,875,000 $ 13,164,688 7.25%, 3/15/15 15,905,000 17,495,500 8.875%, 9/30/27 (7) 3,255,000 4,150,125 9.375%, 4/1/29 (8) 1,650,000 2,178,000 -------------- ----------------- Panama (Republic of) Unsec. Bonds, 7.125%, 1/29/26 11,625,000 12,613,125 ----------------- 49,601,438 ----------------- PERU--2.5% Peru (Republic of) Bonds: 7.84%, 8/12/20 86,585,000 PEN 34,550,788 9.91%, 5/5/15 128,732,000 PEN 57,134,608 Series 7, 8.60%, 8/12/17 102,145,000 PEN 42,882,680 Series 8-1, 12.25%, 8/10/11 129,465,000 PEN 56,990,286 -------------- ----------------- Peru (Republic of) Certificate of Deposit: 5.364%, 4/11/08 (5) 60,230,000 PEN 21,901,093 5.50%, 5/2/08 (1,5) 78,991,000 PEN 28,132,528 5.502%, 4/3/08 (5) 14,220,000 PEN 5,163,615 5.516%, 5/16/08 (5) 28,500,000 PEN 10,308,555 5.719%, 11/6/08 (5) 47,740,000 PEN 16,793,288 5.818%, 1/5/09 (5) 112,630,000 PEN 39,231,895 -------------- ----------------- Peru (Republic of) Sr. Nts., 4.533%, 2/28/16 (5) 1,426,426 956,989 ----------------- 314,046,325 ----------------- PHILIPPINES--0.2% Philippines (Republic of the) Bonds, 8%, 1/15/16 2,910,000 3,331,950 -------------- ----------------- Philippines (Republic of the) Unsec. Bonds: 7.75%, 1/14/31 3,914,000 4,388,377 9%, 2/15/13 13,985,000 16,415,593 ----------------- 24,135,920 ----------------- POLAND--0.3% Poland (Republic of) Bonds: Series DS1013, 5%, 10/24/13 79,840,000 PLZ 34,092,121 Series WS0922, 5.75%, 9/23/22 10,000,000 PLZ 4,395,308 ----------------- 38,487,429 ----------------- THE NETHERLANDS--1.5% Netherlands (Kingdom of the) Bonds, 5%, 7/15/11 81,075,000 EUR 133,002,372 -------------- ----------------- Netherlands (Kingdom of the) Nts., 4.50%, 7/15/17 32,480,000 EUR 52,957,768 ----------------- 185,960,140 ----------------- TURKEY--1.5% Turkey (Republic of) Bonds: 6.75%, 4/3/18 22,650,000 22,593,375 7%, 9/26/16 13,755,000 14,030,100
18 | OPPENHEIMER INTERNATIONAL BOND FUND
PRINCIPAL AMOUNT VALUE ------------------ ----------------- TURKEY Continued Turkey (Republic of) Nts.: 7.25%, 3/15/15 $ 4,755,000 $ 5,028,413 14%, 1/19/11 (2) 66,350,000 TRY 46,158,576 15.861%, 10/7/09 (5) 79,000,000 TRY 45,712,006 16%, 3/7/12 (2) 54,770,000 TRY 38,556,820 17.864%, 8/13/08 (5) 28,615,000 TRY 20,198,591 ----------------- 192,277,881 ----------------- UNITED KINGDOM--4.6% United Kingdom Treasury Bonds: 5.75%, 12/7/09 164,590,000 GBP 336,722,388 6%, 12/7/28 103,895,000 GBP 244,910,085 ----------------- 581,632,473 ----------------- URUGUAY--0.5% Uruguay (Oriental Republic of) Bonds: 4.25%, 4/5/27 248,600,000 UYU 12,883,222 7.625%, 3/21/36 9,935,000 10,108,863 -------------- ----------------- Uruguay (Oriental Republic of) Unsec. Bonds: 5%, 9/14/18 403,060,000 UYU 24,290,085 8%, 11/18/22 10,815,000 11,626,125 ----------------- 58,908,295 ----------------- VENEZUELA--0.4% Venezuela (Republic of) Bonds, 9.25%, 9/15/27 33,610,000 32,013,525 -------------- ----------------- Venezuela (Republic of) Nts., 10.75%, 9/19/13 11,155,000 11,405,988 -------------- ----------------- Venezuela (Republic of) Unsec. Bonds, 7.65%, 4/21/25 14,440,000 11,651,275 ----------------- 55,070,788 ----------------- Total Foreign Government Obligations (Cost $ 7,284,971,135) 7,764,466,121 ================= LOAN PARTICIPATIONS--0.8% Bayerische Hypo- und Vereinsbank AG for the City of Kiev, Ukraine Loan Participation Nts., 8.625%, 7/15/11 (1) 18,470,000 19,397,600 -------------- ----------------- Credit Suisse First Boston International, Export-Import Bank of Ukraine Loan Participation Nts., 8.40%, 2/9/16 5,890,000 5,713,300 -------------- ----------------- Dali Capital plc/Bank of Moscow Loan Participation Nts., Series 28, Tranche 1, 7.25%, 11/25/09 72,600,000 RUR 3,114,560 -------------- ----------------- Dali Capital SA (ROSBANK) Loan Participation Nts., Series 23, Tranche 1, 8%, 9/30/09 71,200,000 RUR 2,927,229 -------------- ----------------- Gaz Capital SA Sr. Unsec. Loan Participation Nts., 7.288%, 8/16/37 (4) 27,890,000 25,884,430 -------------- ----------------- Gazprom International SA Unsec. Loan Participation Nts., 7.201%, 2/1/20 (4) 5,650,297 5,777,429 -------------- ----------------- VTB Capital SA Loan Participation Nts., 6.315%, 2/4/15 (2) 36,440,000 36,834,281 ----------------- Total Loan Participations (Cost $ 100,660,527) 99,648,829
19 | OPPENHEIMER INTERNATIONAL BOND FUND STATEMENT OF INVESTMENTS Unaudited / Continued
PRINCIPAL AMOUNT VALUE ------------------- ---------------- CORPORATE BONDS AND NOTES--13.8% AES Dominicana Energia Finance SA, 11% Sr. Nts., 12/13/15 (4) $ 7,923,000 $ 7,625,888 --------------- ---------------- AES Panama SA, 6.35% Sr. Nts., 12/21/16 (4) 2,225,000 2,227,772 --------------- ---------------- Alrosa Finance SA: 8.875% Nts., 11/17/14 7,010,000 7,528,390 8.875% Nts., 11/17/14 (4) 10,295,000 11,056,315 --------------- ---------------- AmBev International Finance Co. Ltd., 9.50% Bonds, 7/24/17 (4) 27,130,000 BRR 13,335,399 --------------- ---------------- America Movil SAB de CV: 8.46% Bonds, 12/18/36 (4) 27,100,000 MXN 2,501,010 8.46% Sr. Unsec. Unsub. Bonds, 12/18/36 113,700,000 MXN 10,493,166 --------------- ---------------- Autopistas del Nordeste Cayman Ltd., 9.39% Nts., 1/15/26 (4) 10,183,222 10,183,222 --------------- ---------------- BA Covered Bond Issuer, 4.25% Sec. Nts., 4/5/17 43,620,000 EUR 67,132,696 --------------- ---------------- Banco Bilbao Vizcaya Argentaria SA, 4.25% Sec. Bonds, 7/15/14 32,820,000 EUR 51,143,157 --------------- ---------------- Banco BMG SA, 9.15% Nts., 1/15/16 (4) 9,710,000 9,710,000 --------------- ---------------- Banco de Credito del Peru, 6.95% Sub. Nts., 11/7/21 (2,4) 2,750,000 2,750,000 --------------- ---------------- Banco Hipotecario SA, 9.75% Sr. Unsec. Nts., 4/27/16 (4) 4,325,000 3,881,688 --------------- ---------------- Banco Invex SA, 25.672% Mtg. Backed Certificates, Series 062U, 3/13/34 (2,9) 29,007,078 MXN 11,316,481 --------------- ---------------- Bank of Scotland plc: 4.375% Sr. Sec. Nts., 7/13/16 162,890,000 EUR 251,179,409 4.50% Sr. Sec. Nts., 7/13/21 75,890,000 EUR 112,006,672 --------------- ---------------- C10 Capital SPV Ltd., 6.722% Unsec. Perpetual Debs. (4,10) 6,700,000 6,211,851 --------------- ---------------- Cloverie plc, 6.792% Sec. Nts., Series 2005-93, 12/20/10 (1,2) 3,600,000 3,106,800 --------------- ---------------- Coriolanus Ltd., 10.62% Sec. Nts., 8/10/10 16,300,000 11,744,150 --------------- ---------------- Depfa ACS Bank, 3.875% Sec. Nts., 11/14/16 8,775,000 EUR 13,370,996 --------------- ---------------- Eirles Two Ltd., 6.482% Sec. Nts., Series 335, 4/30/12 (1,2) 10,800,000 8,235,000 --------------- ---------------- Eletropaulo Metropolitana SA, 19.125% Nts., 6/28/10 (4) 13,295,000 BRR 8,334,473 --------------- ---------------- Exsportfinans ASA, 3.50% Nts., 2/11/11 (2) 195,570,000 EUR 299,776,742 --------------- ---------------- HSBC Bank plc: 11.601% Sr. Unsec. Nts., 1/12/10 (5) 42,800,000 33,127,200 12.278% Sr. Unsec. Nts., 3/9/09 (5) 30,220,000 26,140,300 9.751% Sr. Unsec. Nts., 7/8/09 (5) 30,220,000 27,605,970 --------------- ---------------- HSBK Europe BV, 7.25% Unsec. Unsub. Nts., 5/3/17 (4) 3,260,000 2,836,200 --------------- ---------------- ICICI Bank Ltd.: 6.375% Bonds, 4/30/22 (2,4) 12,125,000 10,447,979 6.625% Nts., 10/3/12 (4) 11,560,000 11,556,451 --------------- ---------------- IIRSA Norte Finance Ltd., 8.75% Sr. Nts., 5/30/24 (1) 9,712,227 10,853,413 --------------- ---------------- Inter-American Development Bank: 6.26% Nts., 12/8/09 (2) 11,200,000 BRR 6,508,919 9.891% Nts., 1/25/12 (1,2) 9,658,285,859 COP 5,691,944 --------------- ---------------- International Bank for Reconstruction & Development (The), 15% Nts., 1/7/10 3,000,000 TRY 2,193,937
20 | OPPENHEIMER INTERNATIONAL BOND FUND
PRINCIPAL AMOUNT VALUE ----------------- --------------- CORPORATE BONDS AND NOTES Continued ISA Capital do Brasil SA: 7.875% Sr. Nts., 1/30/12 (4) $ 2,225,000 $ 2,302,875 8.80% Sr. Nts., 1/30/17 (4) 2,780,000 2,905,100 ------------- --------------- JPMorgan, Red Square Capital Ltd., 9% Collaterlized Debt Obligation Nts., 11/20/08 (4) 365,000,000 RUR 14,925,382 ------------- --------------- JPMorgan Hipotecaria su Casita: 6.47% Sec. Nts., 8/26/35 (1) 37,486,491 MXN 3,500,911 20.368% Mtg. Backed Certificates, Series 06U, 9/25/35 (2) 19,683,268 MXN 8,090,588 ------------- --------------- JSC Astana Finance, 9.16% Nts., 3/14/12 (1) 14,000,000 12,829,536 ------------- --------------- Kuznetski Capital SA/Bank of Moscow, 7.375% Nts., 11/26/10 (4) 2,780,000 2,870,350 ------------- --------------- Majapahit Holding BV: 7.25% Nts., 10/17/11 (4) 2,860,000 2,867,150 7.75% Nts., 10/17/16 (4) 6,420,000 6,355,800 ------------- --------------- MHP SA, 10.25% Sr. Sec. Sub. Bonds, 11/30/11 (4) 2,745,000 2,552,850 ------------- --------------- Morgan Stanley, 6.25% Sr. Nts., 3/23/17 (1) 26,120,000 PEN 8,605,242 ------------- --------------- National Gas Co., 6.05% Nts., 1/15/36 (4) 4,945,000 4,654,036 ------------- --------------- National Power Corp.: 5.875% Unsec. Unsub. Bonds, 12/19/16 665,100,000 PHP 15,063,074 6.875% Nts., 11/2/16 (4) 2,739,000 2,773,238 9.625% Unsec. Bonds, 5/15/28 5,095,000 6,095,149 ------------- --------------- Nordic Investment Bank, 12.50% Sr. Unsec. Nts., 2/15/09 5,000,000 TRY 3,603,125 ------------- --------------- Ongko International Finance Co. BV, 10.50% Sec. Nts., 3/29/10 (1,11,12) 550,000 -- ------------- --------------- Panama Canal Railway Co., 7% Sr. Sec. Nts., 11/1/26 (1) 8,465,000 7,787,800 ------------- --------------- Petrobras International Finance Co., 5.785% Sr. Unsec. Nts., 3/1/18 20,900,000 20,229,110 ------------- --------------- Petroleum Export Ltd. Cayman SPV, 5.265% Sr. Nts., Cl. A3, 6/15/11 (4) 9,653,017 9,692,025 ------------- --------------- Piazza Vittoria Finance SrL, 6.033% Asset-Backed Nts., 7/20/10 (1,2) 8,946,738 EUR 14,124,719 ------------- --------------- Rabobank Nederland, 3% Nts., 3/11/11 (1,2) 163,350,000 162,533,250 ------------- --------------- RSHB Capital SA/OJSC Russian Agricultural Bank, 7.175% Nts., 5/16/13 (4) 3,820,000 3,901,175 ------------- --------------- Salisbury International Investments Ltd., 8.044% Sec. Nts., Series 2006-003, Tranche E, 7/20/11 (2) 2,400,000 2,208,000 ------------- --------------- Telefonica del Peru SA, 8% Sr. Unsec. Bonds, 4/11/16 (4) 26,033,700 PEN 10,033,731 ------------- --------------- Tengizchevroil LLP, 6.124% Nts., 11/15/14 (4) 5,840,000 5,601,144 ------------- --------------- TGI International Ltd., 9.50% Nts., 10/3/17 (4) 10,640,000 11,039,000 ------------- --------------- Tiers-BSP, 0%/8.60% Collateralized Trust, Cl. A, 6/15/97 (13) 6,065,000 3,216,251 ------------- --------------- Vitro SAB de CV: 8.625% Sr. Unsec. Unsub. Nts., 2/1/12 2,775,000 2,573,813 9.125% Sr. Unsec. Unsub. Nts., 2/1/17 4,715,000 3,937,025 ------------- --------------- VTB Capital SA, 6.25% Sr. Nts., 6/30/35 (4) 2,950,000 2,732,438
21 | OPPENHEIMER INTERNATIONAL BOND FUND STATEMENT OF INVESTMENTS Unaudited / Continued
PRINCIPAL AMOUNT VALUE --------------- --------------- CORPORATE BONDS AND NOTES Continued WM Covered Bond Program: 3.875% Sec. Nts., Series 1, 9/27/11 105,230,000 EUR $ 159,741,403 4% Sec. Mtg. Nts., Series 2, 9/27/16 103,055,000 EUR 145,945,638 --------------- Total Corporate Bonds and Notes (Cost $1,624,043,515) 1,727,104,518
SHARES --------------- COMMON STOCKS--0.0% Societe des Autoroutes Paris-Rhin-Rhone (Cost $3,981,149) 39,005 4,716,981
PRINCIPAL AMOUNT --------------- STRUCTURED SECURITIES--10.3% Citigroup Global Markets Holdings, Inc.: Brazil (Federal Republic of) Unsec. Credit Linked Nts., 14.809%, 1/5/10 (5) 32,035,902 BRR 14,632,139 Colombia (Republic of) Credit Linked Bonds, 11%, 7/27/20 12,570,000,000 COP 6,638,386 Colombia (Republic of) Credit Linked Nts., Series II, 15%, 4/27/12 6,942,469,928 COP 4,224,581 Colombia (Republic of) Unsec. Credit Linked Nts., 15%, 4/27/12 12,430,000,000 COP 7,563,813 Colombia (Republic of) Unsec. Credit Linked Nts., 15%, 4/27/12 11,705,100,000 COP 7,122,703 Colombia (Republic of) Unsec. Credit Linked Nts., 15%, 4/27/12 31,110,000,000 COP 18,930,831 Dominican Republic Credit Linked Bonds, 9.85%, 11/10/08 (5) 116,770,000 DOP 3,181,513 Dominican Republic Credit Linked Nts., 22%, 10/3/11 158,100,000 DOP 5,500,143 Dominican Republic Credit Linked Nts., 9.522%, 5/12/08 (5) 106,540,000 DOP 3,096,459 Dominican Republic Unsec. Credit Linked Nts., 12.047%, 2/23/09 (5) 218,500,000 DOP 5,796,301 Dominican Republic Unsec. Credit Linked Nts., 13.182%, 2/23/09 (5) 400,000,000 DOP 10,479,627 Dominican Republic Unsec. Credit Linked Nts., 15%, 3/12/12 289,700,000 DOP 8,292,793 Dominican Republic Unsec. Credit Linked Nts., 9.342%, 8/11/08 (5) 244,600,000 DOP 6,888,772 Dominican Republic Unsec. Credit Linked Nts., Series 007, 9.302%, 5/12/08 (5) 211,900,000 DOP 6,158,625 Egypt (The Arab Republic of) Credit Linked Nts., 5.765%, 2/5/09 (5) 76,850,000 EGP 13,158,548 Egypt (The Arab Republic of) Credit Linked Nts., 6.089%, 3/5/09 (5) 57,120,000 EGP 9,721,172 Egypt (The Arab Republic of) Credit Linked Nts., 6.267%, 3/26/09 (5) 77,610,000 EGP 13,148,793 Egypt (The Arab Republic of) Credit Linked Nts., 6.641%, 2/19/09 (5) 77,660,000 EGP 13,256,900 Egypt (The Arab Republic of) Credit Linked Nts., 7.024%, 7/10/08 (5) 53,890,000 EGP 9,688,875 Egypt (The Arab Republic of) Credit Linked Nts., 7.981%, 4/2/09 (5) 35,560,000 EGP 6,015,552 Egypt (The Arab Republic of) Unsec. Credit Linked Nts., 6.529%, 3/26/09 (5) 77,010,000 EGP 13,047,140 Ghana (Republic of) Credit Linked Nts., 13.50%, 4/2/10 (1) 15,350,000 GHS 15,607,193 Nigeria (Federal Republic of) Credit Linked Nts., 14.50%, 3/1/11 (2,4) 2,672,000,000 NGN 25,808,601 Nigeria (Federal Republic of) Credit Linked Nts., Series II, 14.50%, 4/4/11 (1) 2,032,000,000 NGN 19,698,588 Renins Nonlife Ltd. Credit Linked Nts., 12.50%, 5/30/12 (1) 5,241,363 4,926,881 Russian Federation Credit Linked Nts., 7.65%, 12/4/08 (1,2) 41,690,000 RUR 1,743,268 Ukraine Hryvnia Unsec. Credit Linked Nts., 11.94%, 1/4/10 13,799,000 UAH 2,946,494 Zimbabwe (Republic of) Credit Linked Nts., 10.076%, 11/26/08 (5) 7,965,000,000 ZMK 2,040,019 Zimbabwe (Republic of) Credit Linked Nts., 10.717%, 3/4/09 (5) 16,940,000,000 ZMK 4,205,610 Zimbabwe (Republic of) Credit Linked Nts., 10.793%, 2/25/09 (5) 16,940,000,000 ZMK 4,197,464
22 | OPPENHEIMER INTERNATIONAL BOND FUND
PRINCIPAL AMOUNT VALUE --------------- -------------- STRUCTURED SECURITIES Continued Credit Suisse First Boston International: Boryspil Airport Total Return Linked Nts., 10%, 4/19/10 (2) 49,215,000 UAH $ 10,106,071 EES Total Return Linked Nts., 7.10%, 12/12/08 (1,2) 72,800,000 RUR 3,064,272 Gazprom Total Return Linked Nts., 6.79%, 10/29/09 144,790,000 RUR 6,273,709 Gazprom Total Return Linked Nts., Series 002, 6.95%, 8/6/09 141,750,000 RUR 6,054,510 Indonesia (Republic of) Total Return Linked Nts., 12%, 9/16/11 (1) 116,800,000,000 IDR 13,391,840 Lukoil Credit Linked Nts., Series Fbi 105, 7.25%, 11/19/09 (1,2) 321,528,000 RUR 13,629,431 Moitk Total Return Linked Nts., 9.014%, 3/26/11 (1,2) 244,714,000 RUR 9,993,173 Moscow (City of) Credit Linked Nts., Series Fbi 101, 10%, 12/31/10 (1) 277,800,000 RUR 12,680,289 Moscow (City of) Credit Linked Nts., Series Fbi 98, 11%, 4/23/09 (4) 280,840,000 RUR 12,655,182 Orenburgskaya IZHK Total Return Linked Nts., 9.24%, 2/21/12 (1,2) 64,940,000 RUR 2,598,004 Ukraine (Republic of) Credit Linked Nts., Series EMG 13, 11.94%, 12/30/09 30,400,000 UAH 6,489,411 Vietnam Shipping Industry Group Total Return Linked Nts., 10.50%, 1/19/17 (1) 85,958,000,000 VND 5,193,074 --------------- -------------- Credit Suisse First Boston, Inc. (Nassau Branch): Russian Oreniz Credit Linked Nts., Series 009, 9.24%, 2/21/12 (1,2) 75,000,000 RUR 3,000,466 Russian Specialized Construction and Installation Administration Credit Linked Nts., 8.59%, 5/20/10 (1,2) 64,600,000 RUR 2,735,616 Ukraine (Republic of) Credit Linked Nts., Series EMG 11, 11.94%, 12/30/09 9,163,000 UAH 1,956,002 Ukraine (Republic of) Credit Linked Nts., Series NPC 12, 11.94%, 12/30/09 (4) 65,490,000 UAH 13,979,984 --------------- -------------- Credit Suisse Group, Russian Moscoblgaz Finance Total Return Linked Nts., 9.25%, 6/24/12 (1) 64,500,000 RUR 2,621,577 --------------- -------------- Deutsche Bank AG: Argentina (Republic of) Credit Linked Nts., 11.991%, 12/21/11 (1,14) 35,580,000 ARP 30,377,142 Arrendadora Capita Corp. SA de CV/Capita Corp. (The) de Mexico SA de CV Credit Linked Nts., 9.09%, 1/5/11 (1) 91,947,523 MXN 8,639,452 Arrendadora Capita Corp. SA de CV/Capita Corp. (The) de Mexico SA de CV Credit Linked Nts., 9.65%, 1/5/11 (1) 60,726,068 MXN 5,705,862 Brazil Real Credit Linked Nts., 13.882%, 3/3/10 (5) 61,128,560 BRR 27,699,929 Brazil Real Credit Linked Nts., 6%, 8/18/10 15,895,000 BRR 14,908,254 Colombia (Republic of) Credit Linked Nts., 13.50%, 9/15/14 13,259,000,000 COP 7,846,897 Colombia (Republic of) Total Return Linked Bonds, Series 002, 11%, 7/28/20 24,620,000,000 COP 12,996,261 Compania Total Return Linked Nts., 4.454%, 7/22/10 3,722,960 EUR 5,994,024 Egypt (The Arab Republic of) Total Return Linked Nts., 7.725%, 9/16/08 (5) 74,375,000 EGP 13,298,972 European Investment Bank, Russian Federation Credit Linked Nts., 5.502%, 1/19/10 (1,5) 8,475,000 7,491,053 Grupo TMM SA Credit Linked Nts., 6%, 9/7/12 (1) 4,750,996 4,750,996 Halyk Bank of Kazakhstan Total Return Linked Nts., Series I, 7.25%, 3/20/09 2,003,690,000 KZT 15,981,042 Indonesia (Republic of) Credit Linked Nts., 9.50%, 6/22/15 10,300,162 9,829,650 Indonesia (Republic of) Credit Linked Nts., Series III, 14.25%, 6/22/13 12,412,800 14,734,490 Nigeria (Federal Republic of) Credit Linked Nts., 12.50%, 2/24/09 525,300,000 NGN 4,627,253 Nigeria (Federal Republic of) Credit Linked Nts., 15%, 1/27/09 704,900,000 NGN 6,397,179
23 | OPPENHEIMER INTERNATIONAL BOND FUND STATEMENT OF INVESTMENTS Unaudited / Continued
PRINCIPAL AMOUNT VALUE --------------- ---------------- STRUCTURED SECURITIES Continued Deutsche Bank AG: Continued Opic Reforma Credit Linked Nts., 9.94%, 10/3/15 (1,2,14) 27,100,000 MXN $ 2,546,334 Peru (Republic of) Credit Linked Nts., 4.249%, 2/20/11 (2) 3,255,000 3,275,276 RuRail Total Return Linked Bonds, 6.67%, 1/26/09 (2) 146,720,000 RUR 6,244,374 Russian Federation Credit Linked Nts., 0%, 12/2/09 (5) 233,573,000 RUR 10,468,678 Russian Federation Total Return Linked Nts., 7.919%, 3/20/09 (5) 103,900,000 RUR 4,069,312 Russian Federation Total Return Linked Nts., 7.949%, 1/15/09 (5) 195,710,000 RUR 7,780,140 Russian Federation Total Return Linked Nts., Series II, 9%, 4/22/11 288,935,000 RUR 13,151,659 Ukraine (Republic of) 5 yr. Credit Linked Nts., 4.05%, 8/25/10 2,505,000 2,457,305 Ukraine (Republic of) 5.5 yr. Credit Linked Nts., 4.05%, 3/1/11 2,505,000 2,443,051 Ukraine (Republic of) 6 yr. Credit Linked Nts., 4.05%, 8/29/11 2,505,000 2,423,613 Ukraine (Republic of) 6.5 yr. Credit Linked Nts., 4.05%, 2/29/12 2,505,000 2,403,472 Ukraine (Republic of) 7 yr. Credit Linked Nts., 4.05%, 8/30/12 2,505,000 2,386,488 Ukraine (Republic of) Credit Linked Nts., 10.208%, 7/1/09 18,508,800 UAH 3,873,323 Ukraine (Republic of) Credit Linked Nts., 11.94%, 12/30/09 3,228,000 UAH 690,449 Ukraine (Republic of) Credit Linked Nts., 11.94%, 12/30/09 11,438,000 UAH 2,446,518 Ukraine (Republic of) Credit Linked Nts., 9.60%, 7/1/09 5,302,400 UAH 1,109,629 United Mexican States Credit Linked Nts., 9.52%, 1/5/11 (1) 60,680,624 MXN 5,701,593 Videocon International Ltd. Credit Linked Nts., 6.26%, 12/29/09 7,300,000 6,570,949 --------------- ---------------- Deutsche Bank AG Singapore, Vietnam Shipping Industry Group Total Return Linked Nts., 9%, 4/20/17 (1) 216,800,000,000 VND 12,193,325 --------------- ---------------- Dresdner Bank AG, Lukoil Credit Linked Nts., Series 3, 7.04%, 12/8/11 (2,4) 213,030,000 RUR 10,017,592 --------------- ---------------- Goldman Sachs & Co., Turkey (Republic of) Credit Linked Nts., 14.802%, 3/29/17 (4,5) 129,050,000 TRY 17,118,976 --------------- ---------------- Goldman Sachs Capital Markets LP, Colombia (Republic of) Credit Linked Nts., 10.476%, 2/8/37 (4,5) 376,977,600,000 COP 4,901,296 --------------- ---------------- Goldman Sachs International, Russian Federation Total Return Linked Nts., 8%, 5/13/09 (2) 573,900,000 RUR 24,033,121 --------------- ---------------- Hallertau SPC 2007-01, Philippines (Republic of) Credit Linked Nts., 6.42%, 12/20/17 (1,2) 45,030,000 42,166,092 --------------- ---------------- ING Bank NV, Ukraine (Republic of) Credit Linked Nts., Series 725, 11.89%, 12/30/09 (1) 64,285,000 UAH 13,729,448 --------------- ---------------- JPMorgan Chase Bank NA: Argentina (Republic of) Credit Linked Nts., 11.942%, 12/19/11 (1,14) 36,445,000 ARP 29,299,328 Brazil (Federal Republic of) Credit Linked Nts., 13.847%, 4/1/10 (1,5) 129,150,391 BRR 58,006,168 Brazil (Federal Republic of) Credit Linked Nts., 14.35%, 2/20/12 (1) 34,060,000 BRR 17,058,146 Brazil (Federal Republic of) Credit Linked Nts., 15.326%, 1/2/15 (5) 115,066,796 BRR 27,991,816 Brazil (Federal Republic of) Credit Linked Nts., 2.731%, 11/30/12 (4,5) 35,605,000 ARP 10,420,893 Brazil (Federal Republic of) Credit Linked Nts., 6%, 5/16/45 (1) 11,130,000 BRR 9,774,382 Colombia (Republic of) Credit Linked Bonds, 10.19%, 1/5/16 (4,5) 153,800,000,000 COP 32,809,210 Colombia (Republic of) Credit Linked Bonds, 10.218%, 10/31/16 (1,5) 90,697,000,000 COP 17,470,029 Colombia (Republic of) Credit Linked Bonds, Series A, 10.218%, 10/31/16 (1,5) 90,312,000,000 COP 17,395,871 Peru (Republic of) Credit Linked Nts., 8.115%, 9/2/15 (4,5) 40,860,000 PEN 8,674,755 Swaziland (Kingdom of) Credit Linked Nts., 7.25%, 6/20/10 (4) 3,850,000 4,100,250
24 | OPPENHEIMER INTERNATIONAL BOND FUND
PRINCIPAL AMOUNT VALUE -------------- ------------------ STRUCTURED SECURITIES Continued Lehman Brothers International, Romania (Republic of) Total Return Linked Nts., 7.90%, 2/9/10 10,726,400 RON $ 4,500,769 -------------- ------------------ Lehman Brothers Special Financing, Inc.: Argentina (Republic of) Credit Linked Nts., 9.655%, 12/20/15 (4) 20,000,000 19,304,000 Romania (Republic of) Total Return Linked Nts., 6.50%, 3/9/10 30,904,100 RON 12,553,528 Romania (Republic of) Total Return Linked Nts., 7.25%, 4/19/10 3,105,000 RON 1,360,889 Romania (Republic of) Total Return Linked Nts., 7.75%, 4/21/08 3,101,000 RON 1,408,033 Romania (Republic of) Total Return Linked Nts., 7.75%, 4/21/08 7,453,000 RON 3,384,091 -------------- ------------------ Merrill Lynch: Colombia (Republic of) Credit Linked Nts., 10%, 11/17/16 (1) 13,289,000,000 COP 6,176,439 Renaissance Capital International Services Ltd. Total Return Linked Nts., 10.50%, 10/7/08 414,000,000 RUR 17,267,363 -------------- ------------------ Morgan Stanley, Russian Federation Total Return Linked Securities, Series 007, Cl. VR, 5%, 8/22/34 486,546,147 RUR 16,896,334 -------------- ------------------ Morgan Stanley & Co. International Ltd./Red Arrow International Leasing plc, Total Return Linked Nts., Series A, 8.375%, 6/30/12 (1) 195,413,674 RUR 8,358,351 -------------- ------------------ Morgan Stanley Capital Services, Inc.: Bank Center Credit Total Return Linked Nts.,7.52%, 6/6/08 3,273,000,000 KZT 26,899,265 Brazil (Federal Republic of) Linked Nts., 12.551%, 1/5/22 (4,5) 173,500,000 BRR 14,930,472 Brazil (Federal Republic of) Sr. Linked Nts., 14.40%, 8/4/16 (1) 56,967,568 BRR 39,413,363 Brazil (Federal Republic of) Total Return Nts., 8/2/10 26,340,805 BRR 12,434,235 Ukraine (Republic of) Credit Linked Nts., 6.653%, 10/15/17 (2,4) 17,600,000 16,825,600 Ukraine (Republic of) Credit Linked Nts., Series 2, 5.728%, 10/15/17 (1,2) 12,250,000 11,986,625 United Mexican States Credit Linked Nts., 5.64%, 11/20/15 (4) 11,760,000 11,825,856 WTI Trading Ltd. Total Return Linked Nts., Series A, 13.50%, 2/9/09 (1) 10,900,000 10,355,000 WTI Trading Ltd. Total Return Linked Nts., Series B, 13.50%, 2/9/09 (1) 14,550,000 13,822,500 -------------- ------------------ UBS AG: Egypt (The Arab Republic of) Credit Linked Nts., 7.449%, 60,670,000 EGP 10,578,901 11/26/08 (1,5,15) Ghana (Republic of) Credit Linked Nts., 14.47%, 12/28/11 (4) 7,369,232 GHS 7,535,231 ------------------ Total Structured Securities (Cost $ 1,189,419,559) 1,290,438,557
SHARES -------------- INVESTMENT COMPANY--8.2% Oppenheimer Institutional Money Market Fund, Cl. E, 3.29% (16,17) (Cost $ 1,029,080,236) 1,029,080,236 1,029,080,236 ------------- ------------------ TOTAL INVESTMENTS, AT VALUE (COST $ 11,335,490,641) 95.7% 12,019,557,617 ------------- ------------------ OTHER ASSETS NET OF LIABILITIES 4.3 538,968,112 ------------- ------------------ NET ASSETS 100.0% $ 12,558,525,729 ============= ==================
25 | OPPENHEIMER INTERNATIONAL BOND FUND STATEMENT OF INVESTMENTS Unaudited / Continued FOOTNOTES TO STATEMENT OF INVESTMENTS Principal amount is reported in U.S. Dollars, except for those denoted in the following currencies:
ARP Argentine Peso KZT Kazakhstan Tenge AUD Australian Dollar MXN Mexican Nuevo Peso BRR Brazilian Real MYR Malaysian Ringgit CAD Canadian Dollar NGN Nigeria Naira COP Colombian Peso PEN Peruvian New Sol DKK Danish Krone PHP Philippines Peso DOP Dominican Republic Peso PLZ Polish Zloty EGP Egyptian Pounds RON New Romanian Leu EUR Euro RUR Russian Ruble GBP British Pound Sterling TRY New Turkish Lira GHS Ghana Cedi UAH Ukraine Hryvnia IDR Indonesia Rupiah UYU Uruguay Peso ILS Israeli Shekel VND Vietnam Dong JPY Japanese Yen ZMK Zambian Kwacha
1. Illiquid or restricted security. The aggregate value of illiquid or restricted securities as of March 31, 2008 was $821,113,978, which represents 6.54% of the Fund's net assets, of which $2,546,334 is considered restricted. See Note 9 of accompanying Notes. Information concerning restricted securities is as follows:
ACQUISITION UNREALIZED SECURITY DATE COST VALUE APPRECIATION - ---------------------------------- ----------- ----------- ----------- --------------- Deutsche Bank AG, Opic Reforma Credit Linked Nts., 9.94%, 10/3/15 12/27/07 $ 2,490,580 $ 2,546,334 $ 55,754
2. Represents the current interest rate for a variable or increasing rate security. 3. 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 $102,851,600. See Note 6 of accompanying Notes. 4. 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 $512,431,715 or 4.08% of the Fund's net assets as of March 31, 2008. 5. Zero coupon bond reflects effective yield on the date of purchase. 6. A sufficient amount of securities has been designated to cover outstanding foreign currency contracts. See Note 5 of accompanying Notes. 7. A sufficient amount of liquid assets has been designated to cover outstanding written put options. 8. A sufficient amount of liquid assets has been designated to cover outstanding written call options. 9. Denotes an inflation-indexed security: coupon and principal are indexed to the consumer price index. 10. 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. 11. Non-income producing security. 12. Issue is in default. See Note 1 of accompanying Notes. 13. Denotes a step bond: a zero coupon bond that converts to a fixed or variable interest rate at a designated future date. 14. Represents the current interest rate on a security whose interest rate is 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. See Note 1 of accompanying Notes. 15. When-issued security or delayed delivery to be delivered and settled after March 31, 2008. See Note 1 of accompanying Notes. 16. Rate shown is the 7-day yield as of March 31, 2008. 17. Is or was an affiliate, as defined in the Investment Company Act of 1940, at or during the period ended March 31, 2008, by virtue of the Fund owning at least 5% of the voting securities of the issuer or as a result of the Fund and the issuer having the same investment adviser. Transactions during the period in which the issuer was an affiliate are as follows: 26 | OPPENHEIMER INTERNATIONAL BOND FUND
SHARES GROSS GROSS SHARES SEPTEMBER 30, 2007 ADDITIONS REDUCTIONS MARCH 31, 2008 ------------------- ------------- ------------- -------------- Oppenheimer Institutional Money Market Fund, Cl. E 1,166,273,150 6,114,314,792 6,251,507,706 1,029,080,236
DIVIDEND VALUE INCOME --------------- ------------ Oppenheimer Institutional Money Market Fund, Cl. E $ 1,029,080,236 $ 16,404,866
FOREIGN CURRENCY EXCHANGE CONTRACTS AS OF MARCH 31, 2008 ARE AS FOLLOWS:
CONTRACT AMOUNT EXPIRATION UNREALIZED UNREALIZED CONTRACT DESCRIPTION BUY/SELL (000S) DATE VALUE APPRECIATION DEPRECIATION - ------------------------ ---------- --------------- --------------- -------------- ------------ ------------ Argentine Peso (ARP) Sell 387,100 ARP 4/21/08 $ 121,861,738 $ 531,515 $ -- Australian Dollar (AUD) Sell 157,900 AUD 4/8/08-4/28/08 143,872,442 714,437 1,696,311 Australian Dollar (AUD) Buy 167,396 AUD 4/28/08-5/9/08 152,453,620 1,229,035 30,643 Brazilian Real (BRR) Buy 374,411 BRR 5/5/08-1/5/10 207,417,946 15,886,489 2,246,666 British Pound Sterling (GBP) Sell 162,560 GBP 4/2/08-8/5/08 321,448,310 2,363,757 1,814,265 British Pound Sterling (GBP) Buy 139,085 GBP 4/10/08-5/9/08 275,713,854 2,260,480 190,681 Canadian Dollar (CAD) Sell 478,610 CAD 4/8/08-4/10/08 466,202,123 14,268,583 1,240,648 Canadian Dollar (CAD) Buy 125,335 CAD 4/25/08-5/9/08 122,052,270 -- 317,755 Chilean Peso (CLP) Buy 70,076,000 CLP 4/7/08-6/17/08 160,094,943 1,120,546 480,499 Colombian Peso (COP) Sell 267,010,000 COP 5/6/08-6/9/08 144,114,223 -- 5,264,930 Czech Koruna (CZK) Buy 1,681,026 CZK 4/2/08-4/30/08 105,089,640 9,554,598 424 Egyptian Pounds (EGP) Buy 90,760 EGP 4/1/08-4/7/08 16,655,112 38,277 -- Euro (EUR) Sell 1,281,505 EUR 4/2/08-8/5/08 2,021,905,189 -- 104,256,300 Euro (EUR) Buy 1,032,280 EUR 4/7/08-6/27/08 1,627,388,410 115,422,172 -- Hungarian Forint (HUF) Sell 29,064,000 HUF 4/21/08-10/2/08 174,081,809 226,873 1,619,202 Hungarian Forint (HUF) Buy 8,731,000 HUF 4/21/08 52,716,617 -- 262,752 Indonesia Rupiah (IDR) Buy 659,110,000 IDR 5/30/08 71,139,773 -- 1,086,135 Israeli Shekel (ILS) Buy 311,610 ILS 4/30/08-5/2/08 88,378,502 5,960,755 -- Japanese Yen (JPY) Sell 21,892,150 JPY 4/2/08-8/5/08 220,416,211 -- 11,607,112 Japanese Yen (JPY) Buy 226,045,000 JPY 4/10/08-6/10/08 2,270,253,635 168,356,548 408,464 Kuwaiti Dinar (KWD) Buy 2,809 KWD 1/29/09 10,793,058 319,530 -- Malaysian Ringgit (MYR) Buy 572,670 MYR 4/10/08-6/17/08 178,949,101 2,492,373 857,466 Mexican Nuevo Peso (MXN) Sell 1,322,300 MXN 4/25/08 123,830,943 -- 1,060,869 Mexican Nuevo Peso (MXN) Buy 1,118,380 MXN 5/27/08 104,301,190 1,499,462 -- New Taiwan Dollar (TWD) Sell 3,463,000 TWD 4/30/08 114,851,419 1,747,907 -- New Taiwan Dollar (TWD) Buy 2,260,000 TWD 4/28/08 74,916,150 -- 1,388,800 New Turkish Lira (TRY) Sell 204,150 TRY 4/28/08 151,418,254 6,089,402 -- New Zealand Dollar (NZD) Sell 136,440 NZD 4/8/08-4/28/08 106,970,770 1,264,333 1,934,491 New Zealand Dollar (NZD) Buy 232,000 NZD 5/14/08 180,996,467 9,383,519 -- Norwegian Krone (NOK) Sell 584,430 NOK 4/28/08 114,495,189 -- 4,219,447 Norwegian Krone (NOK) Buy 3,354,120 NOK 4/10/08-5/14/08 657,503,385 19,721,235 -- Peruvian New Sol (PEN) Buy 61,820 PEN 4/18/08 22,563,299 1,290,141 -- Philippines Peso (PHP) Buy 8,742,000 PHP 4/25/08-5/30/08 208,520,242 -- 4,022,309 Polish Zloty (PLZ) Buy 579,660 PLZ 4/10/08-10/2/08 259,179,832 14,950,784 147,506 Qatari Riyal (QAR) Buy 36,740 QAR 1/29/09 10,375,667 -- 97,537 Saudi Riyal (SAR) Buy 38,670 SAR 1/29/09 10,493,129 20,550 -- Singapore Dollar (SGD) Sell 205,300 SGD 4/28/08 149,354,370 -- 1,615,408
27 | OPPENHEIMER INTERNATIONAL BOND FUND STATEMENT OF INVESTMENTS Unaudited / Continued FOOTNOTES TO STATEMENT OF INVESTMENTS Continued FOREIGN CURRENCY EXCHANGE CONTRACTS: Continued
CONTRACT AMOUNT EXPIRATION UNREALIZED UNREALIZED CONTRACT DESCRIPTION BUY/SELL (000S) DATE VALUE APPRECIATION DEPRECIATION - ---------------------- -------- --------------- --------------- ------------- ------------- ------------- Slovak Koruna (SKK) Buy 1,619,150 SKK 4/30/08 $ 78,590,015 $ 7,618,243 $ -- South Korean Won (KRW) Buy 140,666,000 KRW 4/28/08-6/30/08 142,150,311 388,108 4,541,207 Swedish Krona (SEK) Sell 674,850 SEK 5/14/08 113,308,541 -- 9,403,335 Swedish Krona (SEK) Buy 807,860 SEK 4/10/08 135,893,012 10,761,859 -- Swiss Franc (CHF) Sell 101,180 CHF 4/8/08-4/28/08 101,896,236 -- 2,575,381 Swiss Franc (CHF) Buy 413,213 CHF 4/7/08-5/9/08 416,107,160 24,934,773 1,432 Ukraine Hryvnia (UAH) Buy 54,570 UAH 1/28/09 10,168,262 -- 303,817 United Arab Emirates Dirham (AED) Buy 37,420 AED 1/29/09 10,445,527 -- 21,605 Vietnam Dong (VND) Buy 166,420,000 VND 1/30/09 9,949,919 -- 523,334 ------------- ------------- Total unrealized appreciation and depreciation $ 440,416,284 $ 165,236,731 ============= =============
FUTURES CONTRACTS AS OF MARCH 31, 2008 ARE AS FOLLOWS:
UNREALIZED NUMBER OF EXPIRATION APPRECIATION CONTRACT DESCRIPTION BUY/SELL CONTRACTS DATE VALUE (DEPRECIATION) - ----------------------------------- --------- ---------- ---------- -------------- -------------- Amsterdam Exchange Index Buy 83 4/18/08 $ 11,579,719 $ 537,894 Australia (Commonwealth of) Bonds, 10 yr. Sell 686 6/16/08 62,414,590 126,428 CAC-40 10 Index Sell 548 4/18/08 40,774,917 (1,469,739) Canada (Government of) Bonds, 10 yr. Buy 1,900 6/19/08 221,717,570 7,566,151 DAX Index Sell 488 6/20/08 127,034,780 (3,404,881) DAX Index Buy 43 6/20/08 11,193,638 299,961 Euro-Bundesobligation, 10 yr. Buy 2,943 6/6/08 538,875,515 (5,909,580) Euro-Bundesobligation, 10 yr. Sell 4,857 6/6/08 889,336,859 12,278,095 Euro-Schatz Buy 12,288 6/6/08 2,027,371,592 (14,534,533) FTSE 100 Index Sell 642 6/20/08 72,734,177 (2,120,544) FTSE/JSE Top 40 Index (The) Sell 323 6/19/08 11,137,725 10,667 Hang Seng China Enterprises Index Sell 134 4/29/08 10,301,401 (68,912) Japan (Government of) Bonds, 10 yr. Buy 564 6/11/08 795,077,047 8,813,705 Mexican Bola Index Sell 380 6/20/08 11,188,180 (659,167) Nikkei 225 Index Sell 567 6/12/08 71,045,646 (437,610) OMXS 30 Index Sell 5,165 4/25/08 80,862,715 (2,208,517) SGX CNX Nifty Index Sell 1,029 4/24/08 9,703,470 346,736 Standard & Poor's 500 E-Mini Index Buy 1,157 6/20/08 76,593,400 2,569,238 Standard & Poor's 500 E-Mini Index Sell 160 6/20/08 10,592,000 (355,200) Standard & Poor's/MIB Index, 10 yr. Buy 43 6/20/08 10,400,894 99,909 Standard & Poor's/Toronto Stock Exchange 60 Index Buy 529 6/19/08 80,995,314 460,575 U.S. Long Bonds Buy 2,748 6/19/08 326,453,813 9,211,644 U.S. Treasury Nts., 5 yr. Sell 1,552 6/30/08 177,291,750 (2,693,006) U.S. Treasury Nts., 5 yr. Buy 1,897 6/30/08 216,702,609 2,562,797 U.S. Treasury Nts., 10 yr. Sell 6,935 6/19/08 824,939,922 (29,355,854) -------------- $ (18,333,743) ==============
28 | OPPENHEIMER INTERNATIONAL BOND FUND WRITTEN OPTIONS AS OF MARCH 31, 2008 ARE AS FOLLOWS:
NUMBER OF EXERCISE EXPIRATION PREMIUMS DESCRIPTION TYPE CONTRACTS PRICE DATE RECEIVED VALUE - ---------------------------- ------ ----------- -------- ----------- ----------- ----------- British Pound Sterling (GBP) Call 1,930,000 $ 1.98 4/7/08 $ 20,060 $ 17,684 British Pound Sterling (GBP) Call 1,805,000 1.99 4/1/08 17,802 2,673 British Pound Sterling (GBP) Put 1,805,000 1.99 4/1/08 18,702 19,160 British Pound Sterling (GBP) Call 1,965,000 2.00 4/4/08 21,136 6,736 British Pound Sterling (GBP) Put 1,930,000 1.98 4/7/08 20,060 22,543 British Pound Sterling (GBP) Put 1,965,000 2.00 4/4/08 21,136 34,973 Euro (EUR) Call 7,365,000 1.56 4/1/08 70,821 154,431 Euro (EUR) Call 6,785,000 1.57 4/2/08 67,084 62,504 Euro (EUR) Call 9,330,000 1.58 4/3/08 95,906 72,667 Euro (EUR) Put 7,365,000 1.56 4/1/08 72,314 4,088 Euro (EUR) Put 6,785,000 1.57 4/2/08 67,084 25,028 Euro (EUR) Put 9,330,000 1.58 4/3/08 96,053 75,357 Euro (EUR) Call 7,950,000 1.58 4/4/08 83,871 59,971 Euro (EUR) Call 7,980,000 1.58 4/7/08 79,616 71,197 Euro (EUR) Put 7,950,000 1.58 4/4/08 83,871 81,144 Euro (EUR) Put 7,980,000 1.58 4/7/08 79,616 92,927 Japanese Yen (JPY) Call 863,000,000 99.45 4/7/08 85,736 85,696 Japanese Yen (JPY) Put 863,000,000 99.45 4/7/08 85,736 85,696 Japanese Yen (JPY) Call 828,000,000 100.05 4/1/08 73,241 51,634 Japanese Yen (JPY) Call 796,000,000 99.15 4/2/08 77,553 32,079 Japanese Yen (JPY) Call 977,000,000 99.30 4/3/08 88,550 49,143 Japanese Yen (JPY) Put 828,000,000 100.05 4/1/08 73,241 24,120 Japanese Yen (JPY) Put 796,000,000 99.15 4/2/08 75,385 81,908 Japanese Yen (JPY) Put 977,000,000 99.30 4/3/08 93,469 93,206 Japanese Yen (JPY) Call 905,000,000 99.70 4/4/08 86,461 81,350 Japanese Yen (JPY) Put 905,000,000 99.70 4/4/08 86,461 80,038 ----------- ----------- $ 1,740,965 $ 1,467,953 =========== ===========
CREDIT DEFAULT SWAP CONTRACTS AS OF MARCH 31, 2008 ARE AS FOLLOWS:
PAY/ NOTIONAL RECEIVE SWAP BUY/SELL AMOUNT FIXED TERMINATION COUNTERPARTY REFERENCE ENTITY CREDIT PROTECTION (000S) RATE DATE VALUE - ---------------------------- -------------------------------- ----------------- ----------- ------- ----------- --------- Citibank NA, New York: Pakistan Sell $ 3,010 5.100% 3/20/13 $ 35,843 Republic of Hungary Buy 7,535 0.400 12/20/15 799,870 --------- ----- -------- --------- Credit Suisse International: Development Bank of Kazakhstan Sell 18,510 3.750 2/20/13 114,225 Joint Stock Co. "Halyk Bank of Sell 3,840 4.950 3/20/13 28,343 Kazakhstan" NJSC Naftogaz Sell 5,000 3.250 4/20/11 (392,920) Republic of Turkey Buy 8,695 2.985 4/20/13 3,008 --------- ----- -------- --------- Deutsche Bank AG Republic of Peru Sell 1,200 1.320 4/20/17 (63,022) --------- ----- -------- --------- Lehman Brothers Special Financing, Inc. JSC "Gazprom" Buy 7,590 2.150 2/20/11 (25,335)
29 | OPPENHEIMER INTERNATIONAL BOND FUND STATEMENT OF INVESTMENTS Unaudited / Continued FOOTNOTES TO STATEMENT OF INVESTMENTS Continued CREDIT DEFAULT SWAP CONTRACTS: Continued
PAY/ NOTIONAL RECEIVE SWAP BUY/SELL AMOUNT FIXED TERMINATION COUNTERPARTY REFERENCE ENTITY CREDIT PROTECTION (000S) RATE DATE VALUE - ---------------------- ----------------------------------- ----------------- -------- -------- ---------- ------------ Morgan Stanley Capital Services, Inc.: Istanbul Bond Co. SA for Finansbank Sell $ 17,390 1.300% 3/24/13 $ (1,148,818) Joint Stock Co. "Halyk Bank of Kazakhstan" Sell 7,670 4.780 3/20/13 5,806 Joint Stock Co. "Halyk Bank of Kazakhstan" Sell 7,680 4.880 3/20/13 35,743 Republic of Peru Sell 4,960 1.040 6/20/17 (246,333) Republic of Turkey Buy 8,695 2.980 4/20/13 4,826 -------- -------- ------- ------------ UBS AG Republic of The Philippines Sell 5,945 1.450 6/20/17 (587,515) ------------ $ (1,436,279) ============
INTEREST RATE SWAP CONTRACTS AS OF MARCH 31, 2008 ARE AS FOLLOWS:
SWAP NOTIONAL PAID BY RECEIVED BY TERMINATION COUNTERPARTY AMOUNT THE FUND THE FUND DATE VALUE - ---------------------- ----------------- --------------- -------------- ----------- ----------- Banco Santander Central Hispano SA: Six-Month 5,126,000,000 CLP TNA-Chile 6.600% 8/21/17 $ 287,687 27,880,000 BRR BZDI 14.000 1/3/12 474,899 -------------- ---------- ------------ Citibank NA, London: 16,830,000 PLZ Six-Month WIBOR 5.520 3/24/10 (128,001) 26,928,000 PLZ Six-Month WIBOR 5.550 3/25/10 (198,096) -------------- ----------- Citibank NA, New York: 489,400,000 TWD 2.320% TWD-Telerate 6/27/11 22,135 Six-Month 4,101,000,000 CLP TNA-Chile 6.530 8/25/17 99,017 -------------- ---------- ------------ Credit Suisse First Boston, Inc. 46,785,000 PLZ Six-Month WIBOR 4.480 7/1/10 (57,485) -------------- ---------- ------------ Credit Suisse International: 133,400,000 MXN MXN TIIE 8.300 12/17/26 90,210 Six-Month 4,101,000,000 CLP TNA-Chile 6.580 8/21/17 256,592 -------------- ---------- ------------ Deutsche Bank AG: Three-Month 127,600,000 NZD NZD-BBR 7.588 1/8/18 586,867 INR MIBOR-OIS 490,200,000 INR 7.175 Compound 6/27/11 35,665 Three-Month 578,290,000 SEK SEK-STIBOR 4.788 11/14/17 1,101,621 -------------- ---------- ------------ Goldman Sachs Capital Markets LP 261,580,000 MXN MXN TIIE 8.140 1/10/18 271,393 -------------- ---------- ------------ Goldman Sachs CNY- International 107,900,000 CNY 4.000 CFXSREPOFIX01 2/16/17 436,432 -------------- ---------- ------------ J Aron & Co.: 46,300,000 BRR BZDI 10.670 1/2/12 (1,669,460) 140,720,000 MXN MXN TIIE 9.150 8/27/26 1,165,836 60,800,000 MXN MXN TIIE 9.330 9/16/26 719,848 53,700,000 BRR BZDI 12.920 1/2/14 (258,171)
30 | OPPENHEIMER INTERNATIONAL BOND FUND INTEREST RATE SWAP CONTRACTS: Continued
SWAP NOTIONAL PAID BY RECEIVED BY TERMINATION COUNTERPARTY AMOUNT THE FUND THE FUND DATE VALUE - ------------------------ ----------- ------------ ----------- --------- ----------- J Aron & Co.: Continued 26,730,000 BRR BZDI 12.870% 1/2/14 $ (160,636) 53,240,000 BRR BZDI 12.710 1/4/10 70,392 110,230,000 BRR BZDI 12.610 1/4/10 734,113 99,100,000 BRR BZDI 12.260 1/2/15 (1,474,950) 45,260,000 BRR BZDI 12.290 1/2/15 (633,361) 27,880,000 BRR BZDI 14.050 1/2/12 569,882 44,980,000 BRR BZDI 13.100 1/2/17 948 ---------- ------- ----------- JPMorgan Chase Bank NA: Six-Month 1,988,000,000 CZK 4.400% CZK-PRIBOR 4/4/18 -- 34,270,000 BRR BZDI 13.910 1/2/12 1,128,877 ---------- ------- ----------- Lehman Brothers Special Financing, Inc.: Six-Month 55,540,000 PLZ WIBOR 4.530 7/5/10 38,864 105,670,000 BRR BZDI 12.900 1/2/14 (1,587,609) ---------- ------- ----------- Merrill Lynch Capital Services, Inc.: Six-Month 141,100,000 SGD 3.335 SGD-SOR 1/8/18 (485,078) Three-Month 321,780,000 CAD CAD-BA-CDOR 4.030 1/16/11 5,329,614 ---------- ------- ----------- Morgan Stanley Capital Services, Inc.: Three-Month 640,910,000 SEK SEK-STIBOR 4.494 1/25/18 (2,578,590) Six-Month 122,500,000 EUR 4.713 EURIBOR 8/22/17 (9,792,303) Six-Month NOK-NIBOR- 1,684,700,000 NOK 4.985 NIBR 1/18/11 6,728,081 Three-Month 670,900,000 SEK SEK-STIBOR 4.260 1/18/11 (971,825) Six-Month 71,200,000 EUR EUR-EURIBOR 3.996 1/18/11 (787,639) Six-Month 115,170,000 CHF CHF-BBA LIBOR 2.660 1/18/11 (761,228) UBS AG 100,000,000 BRR BZDI 10.670 1/2/12 (4,206,702) ---------- ------- ----------- Westpac Banking Corp.: Six-Month 111,760,000 AUD AUD-BBR 7.010 1/8/18 (1,011,979) Six-Month EUR-EURIBOR- 274,430,000 EUR Telerate 4.240 11/29/10 925,873 Three-Month 178,200,000 NZD 7.970 NZD-BBR-FRA 11/29/10 (2,115,805)
31 | OPPENHEIMER INTERNATIONAL BOND FUND STATEMENT OF INVESTMENTS Unaudited / Continued FOOTNOTES TO STATEMENT OF INVESTMENTS Continued INTEREST RATE SWAP CONTRACTS: Continued
SWAP NOTIONAL PAID BY RECEIVED BY TERMINATION COUNTERPARTY AMOUNT THE FUND THE FUND DATE VALUE - ----------------------- ----------- -------- ----------- ----------- ------------ Westpac Banking Corp.: Continued Three-Month 177,710,000 NZD 7.840% NZD-BBR-FRA 10/13/10 $ (255,959) Three-Month 407,940,000 NZD 7.933 NZD-BBR-FRA 1/18/11 996,165 Three-Month 177,710,000 NZD 7.908 NZD-BBR-FRA 10/19/10 (1,859,896) ------------ $ (8,923,762) ============
Notional amount is reported in U.S. Dollars (USD), except for those denoted in the following currencies:
AUD Australian Dollar BRR Brazilian Real CAD Canadian Dollar CHF Swiss Franc CLP Chilean Peso CNY Chinese Renminbi (Yuan) CZK Czech Koruna EUR Euro INR Indian Rupee MXN Mexican Nuevo Peso NOK Norwegian Krone NZD New Zealand Dollar PLZ Polish Zloty SEK Swedish Krona SGD Singapore Dollar TWD New Taiwan Dollar Abbreviations are as follows: BBA LIBOR British Bankers' Association London Interbank Offered Rate BBR Bank Bill Rate BZDI Brazil Interbank Deposit Rate CDOR Canada Bankers Acceptances Rate CFXSREPOFIX01 Chinese Renminbi 7 Days Repurchase Fixing Rates EURIBOR Euro Interbank Offered Rate FRA Forward Rate Agreement MIBOR-OIS Mid Market Interest Rate for French Franc/Austrian Schilling and India Swap Composites -- Overnight Indexed Swap NIBOR-NIBR Norwegian Interbank Offered Rate PRIBOR Prague Interbank Offering Rate SOR Swap Offer Rate STIBOR Stockholm Interbank Offered Rate TIIE Interbank Equilibrium Interest Rate TNA Tasa Nominal Annual WIBOR Poland Warsaw Interbank Offer Bid Rate
32 | OPPENHEIMER INTERNATIONAL BOND FUND TOTAL RETURN SWAP CONTRACTS AS OF MARCH 31, 2008 ARE AS FOLLOWS:
SWAP NOTIONAL PAID BY RECEIVED BY TERMINATION COUNTERPARTY AMOUNT THE FUND THE FUND DATE VALUE - ---------------------- ------------- -------------------- ---------------- ----------- ----------- Citibank NA, New York: Twelve-Month JPY BBA LIBOR plus 40 basis points If positive, and if negative, the the Total absolute value of Return of a the Total Return custom of a custom basket of 7,389,208,000 JPY basket of securities securities 4/8/08 $ (61,417) Twelve-Month GBP BBA LIBOR plus 35 basis points and if neg- If positive, ative, the absolute the Total value of the Return of a Total Return of a custom custom basket of basket of 35,585,554 GBP securities securities 5/7/08 2,054,533 ----------- Deutsche Bank AG: Six-Month USD 5.460 times 16,760,000 BBA LIBOR UDI 5/13/15 5,399,474 Six-Month USD 5.250 times 11,050,000 LIBOR UDI 6/23/15 3,121,648 ----------- Goldman Sachs Group, Inc. Group, Inc.(The): Six-Month BBA 5.100 times 11,580,000 LIBOR UDI 1/14/15 3,717,924 Six-Month BBA 5.080 times 11,580,000 LIBOR UDI 1/20/15 3,820,584 ----------- Goldman Sachs International: If negative, the If positive, absolute value of the Total the Total Return Return of the of the BOVESPA BOVESPA 19,517,807 BRR 04/08 Index 04/08 Index 4/17/08 152,862 One-Month USD BBA LIBOR and if If positive, the negative, the Total Return absolute value of of the MSCI the MSCI Daily Daily Total Total Return New Return New Belgium USD Belgium USD 2,173,624 Market Index Market Index 10/8/08 116,724
33 | OPPENHEIMER INTERNATIONAL BOND FUND STATEMENT OF INVESTMENTS Unaudited / Continued FOOTNOTES TO STATEMENT OF INVESTMENTS Continued TOTAL RETURN SWAP CONTRACTS: Continued
SWAP NOTIONAL PAID BY RECEIVED BY TERMINATION COUNTERPARTY AMOUNT THE FUND THE FUND DATE VALUE - ---------------------------- ------------- ------------------ ------------- ------------ ----------- Goldman Sachs International: Continued One-Month USD If positive, BBA LIBOR and if the Total negative, the Return of the absolute value of MSCI Daily the MSCI Daily Total Return Total Return New New Belgium Belgium USD USD Market $ 7,930,842 Market Index Index 10/8/08 $ 366,700 One-Month USD If positive, BBA LIBOR and if the Total negative, the Return of the absolute value of MSCI Daily the MSCI Daily Total Return Total Return New New Belgium Belgium USD USD Market 1,489,014 Market Index Index 10/8/08 71,790 One-Month USD If positive, BBA LIBOR and if the Total negative, the Return of the absolute value of MSCI Daily the MSCI Daily Total Return Total Return New New Belgium Belgium USD USD Market 1,037,320 Market Index Index 10/8/08 50,615 ------------ Merrill Lynch Capital Services, Inc.: The Constant Maturity Option Price divided by 134,690,000 5.3300% 10,000 8/13/17 (4,418,800) The Constant Maturity Option Price divided by 248,000,000 4.6600 10,000 6/11/17 2,818,728 ------------ One-Month EUR BBA LIBOR plus 25 basis points and if If positive, negative, the the Total absolute value of Return of a the Total Return of custom a custom basket of basket of Morgan Stanley 31,055,220EUR securities securities 3/6/09 (1,451,662)
34 | OPPENHEIMER INTERNATIONAL BOND FUND TOTAL RETURN SWAP CONTRACTS: Continued
SWAP NOTIONAL PAID BY RECEIVED BY TERMINATION COUNTERPARTY AMOUNT THE FUND THE FUND DATE VALUE - ---------------------------- --------------- ------------------- ------------- ------------- ------------- One-Month EUR BBA LIBOR plus 30 basis points and if If positive, negative, the the Total absolute value of Return of a the Total Return of custom Morgan Stanley a custom basket of basket of International 28,109,300 EUR securities securities 10/7/08 $ 493,216 ------------- $ 16,252,919 =============
Notional amount is reported in U.S. Dollars (USD), except for those denoted in the following currencies: BRR Brazilian Real EUR Euro GBP British Pound Sterling JPY Japanese Yen Abbreviations are as follows: BBA LIBOR British Bankers' Association London-Interbank Offered Rate BOVESPA Bovespa Index that trades on the Sao Paulo Stock Exchange MSCI Morgan Stanley Capital International UDI Unidad de Inversion (Unit of Investments) CURRENCY SWAP CONTRACTS AS OF MARCH 31, 2008 ARE AS FOLLOWS:
SWAP NOTIONAL PAID BY RECEIVED BY TERMINATION COUNTERPARTY AMOUNT THE FUND THE FUND DATE VALUE - ------------------ ------------ ---------------- ----------- ------------ ------------- Credit Suisse International: Three Month 18,590,000 TRY USD BBA LIBOR 16.75% 2/26/12 $ 813,167 Three Month 7,370,000 TRY TRYUSD BBA LIBOR 17.25 2/7/12 476,015 Three Month 11,105,000 TRY TRYUSD BBA LIBOR 17.30 2/9/12 705,505 ------------- Merrill Lynch Three Month International 3,840,000 TRY TRYBBA LIBOR 17.10 2/6/12 300,903 ------------- $ 2,295,590 =============
Notional amount is reported in U.S. Dollars (USD), except for those denoted in the following currency: TRY New Turkish Lira Abbreviation is as follows: BBA LIBOR British Bankers' Association London-Interbank Offered Rate 35 | OPPENHEIMER INTERNATIONAL BOND FUND STATEMENT OF INVESTMENTS Unaudited / Continued FOOTNOTES TO STATEMENT OF INVESTMENTS Continued DISTRIBUTION OF INVESTMENTS REPRESENTING GEOGRAPHIC HOLDINGS, AS A PERCENTAGE OF TOTAL INVESTMENTS AT VALUE, IS AS FOLLOWS:
GEOGRAPHIC HOLDINGS VALUE PERCENT - ---------------------- ---------------- ------- United States $ 1,667,284,823 13.9% France 1,279,080,678 10.6 Germany 1,247,391,844 10.4 Japan 1,065,832,051 8.9 United Kingdom 944,818,554 7.9 Brazil 759,383,233 6.3 Canada 403,272,998 3.4 Australia 386,129,175 3.2 Peru 358,238,742 3.0 Russia 338,301,259 2.8 Mexico 317,101,585 2.6 European Union 299,776,742 2.5 Turkey 296,270,327 2.5 Italy 293,978,284 2.4 Colombia 224,559,116 1.9 Greece 208,728,877 1.7 Nigeria 208,689,250 1.7 The Netherlands 185,960,140 1.5 Ukraine 150,094,733 1.3 Egypt 121,790,120 1.0 Argentina 119,595,316 1.0 Austria 94,648,372 0.8 Philippines 93,449,724 0.8 Belgium 90,696,178 0.8 Israel 85,721,111 0.7 Indonesia 83,140,225 0.7 Denmark 72,507,258 0.6 Dominican Republic 70,084,293 0.6 Kazakhstan 64,147,187 0.5 Panama 59,617,010 0.5 Uruguay 58,908,295 0.5 Venezuela 55,070,788 0.5 Malaysia 53,859,444 0.5 Spain 51,143,157 0.4 Poland 38,487,429 0.3 Supranational 31,547,725 0.3 Ghana 29,547,424 0.2 India 28,575,379 0.2 Romania 23,207,310 0.2 Vietnam 17,386,399 0.1 Zambia 10,443,093 0.1 El Salvador 9,534,750 0.1 Guatemala 5,803,370 0.1 Trinidad & Tobago 4,654,036 0.0 Swaziland 4,100,250 0.0 Costa Rica 3,552,413 0.0 Bulgaria 3,447,150 0.0 ---------------- ------- Total $ 12,019,557,617 100.0% ================ =======
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 36 | OPPENHEIMER INTERNATIONAL BOND FUND STATEMENT OF ASSETS AND LIABILITIES Unaudited March 31, 2008 ASSETS Investments, at value--see accompanying statement of investments: Unaffiliated companies (cost $10,306,410,405) $ 10,990,477,381 Affiliated companies (cost $ 1,029,080,236) 1,029,080,236 ---------------- 12,019,557,617 ---------------- Cash 1,991,892 ---------------- Cash--foreign currencies (cost $ 10,340,957) 10,339,807 ---------------- Unrealized appreciation on foreign currency exchange contracts 440,416,284 ---------------- Swaps, at value 47,579,063 ---------------- Receivables and other assets: Interest, dividends and principal paydowns 188,061,903 Closed foreign currency contracts 135,364,985 Shares of beneficial interest sold 95,748,003 Futures margins 3,173,222 Investments sold 753,759 Other 57,439 ---------------- Total assets 12,943,043,974 ================ LIABILITIES Options written, at value (premiums received $1,740,965)--see accompanying statement of investments 1,467,953 ---------------- Unrealized depreciation on foreign currency exchange contracts 165,236,731 ---------------- Swaps, at value 39,390,595 ---------------- Payables and other liabilities: Closed foreign currency contracts 111,498,954 Shares of beneficial interest redeemed 31,448,802 Investments purchased on a when-issued or delayed delivery basis 16,658,648 Dividends 8,270,381 Distribution and service plan fees 6,213,879 Transfer and shareholder servicing agent fees 1,159,038 Trustees' compensation 37,958 Shareholder communications 25,595 Other 3,109,711 ---------------- Total liabilities 384,518,245 ================ NET ASSETS $ 12,558,525,729 ================
37 | OPPENHEIMER INTERNATIONAL BOND FUND STATEMENT OF ASSETS AND LIABILITIES Unaudited / Continued COMPOSITION OF NET ASSETS Par value of shares of beneficial interest $ 1,861,039 ---------------- Additional paid-in capital 11,237,609,473 ---------------- Accumulated net investment loss (146,555,773) ---------------- Accumulated net realized gain on investments and foreign currency transactions 509,885,380 ---------------- Net unrealized appreciation on investments and translation of assets and liabilities denominated in foreign currencies 955,725,610 ---------------- NET ASSETS $ 12,558,525,729 ================ NET ASSET VALUE PER SHARE Class A Shares: Net asset value and redemption price per share (based on net assets of $ 9,056,227,807 and 1,341,092,327 shares of beneficial interest outstanding) $ 6.75 Maximum offering price per share (net asset value plus sales charge of 4.75% of offering price) $ 7.09 ---------------- Class B Shares: Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $ 332,376,041 and 49,393,660 shares of beneficial interest outstanding) $ 6.73 ---------------- Class C Shares: Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $ 2,008,571,973 and 298,455,693 shares of beneficial interest outstanding) $ 6.73 ---------------- Class N Shares: Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $ 231,940,853 and 34,439,016 shares of beneficial interest outstanding) $ 6.73 ---------------- Class Y Shares: Net asset value, redemption price and offering price per share (based on net assets of $ 929,409,055 and 137,658,097 shares of beneficial interest outstanding) $ 6.75
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 38 | OPPENHEIMER INTERNATIONAL BOND FUND STATEMENT OF OPERATIONS Unaudited For the Six Months Ended March 31, 2008 INVESTMENT INCOME Interest (net of foreign withholding taxes of $ 1,828,140) $ 230,955,527 ---------------- Dividends: Unaffiliated companies 1,842 Affiliated companies 16,404,866 ---------------- Portfolio lending fees 301,684 ---------------- Total investment income 247,663,919 ================ EXPENSES Management fees 26,221,579 ---------------- Distribution and service plan fees: Class A 9,260,464 Class B 1,391,303 Class C 8,116,652 Class N 440,384 ---------------- Transfer and shareholder servicing agent fees: Class A 5,103,796 Class B 316,563 Class C 953,350 Class N 503,376 Class Y 54,507 ---------------- Shareholder communications: Class A 157,096 Class B 16,095 Class C 32,811 Class N 2,376 Class Y 2,180 ---------------- Custodian fees and expenses 292,249 ---------------- Trustees' compensation 69,383 ---------------- Administration service fees 750 ---------------- Other 298,068 ---------------- Total expenses 53,232,982 Less reduction to custodian expenses (25,846) Less waivers and reimbursements of expenses (540,444) ---------------- Net expenses 52,666,692 ================ NET INVESTMENT INCOME 194,997,227
39 | OPPENHEIMER INTERNATIONAL BOND FUND STATEMENT OF OPERATIONS Unaudited / Continued REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) on: Investments from unaffiliated companies (including premiums on options exercised) $ 96,714,904 Closing and expiration of option contracts written 12,499,143 Closing and expiration of futures contracts 92,917,925 Foreign currency transactions 337,075,107 Swap contracts (29,580,087) ---------------- Net realized gain 509,626,992 ---------------- Net change in unrealized appreciation (depreciation) on: Investments (119,668,330) Translation of assets and liabilities denominated in foreign currencies 511,910,537 Futures contracts (2,871,659) Option contracts written 339,503 Swap contracts (24,972,337) ---------------- Net change in unrealized appreciation 364,737,714 ================ NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 1,069,361,933 ================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 40 | OPPENHEIMER INTERNATIONAL BOND FUND STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS YEAR ENDED ENDED MARCH 31, 2008 SEPTEMBER 30, (UNAUDITED) 2007 --------------- ---------------- OPERATIONS Net investment income $ 194,997,227 $ 257,556,342 --------------- ---------------- Net realized gain 509,626,992 252,152,510 --------------- ---------------- Net change in unrealized appreciation 364,737,714 437,301,778 --------------- ---------------- Net increase in net assets resulting from operations 1,069,361,933 947,010,630 =============== ================ DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS Dividends from net investment income: Class A (351,060,109) (198,019,724) Class B (12,399,592) (7,485,081) Class C (71,285,272) (34,902,172) Class N (8,488,221) (3,994,007) Class Y (33,795,942) (13,121,592) --------------- ---------------- (477,029,136) (257,522,576) --------------- ---------------- Distributions from net realized gain: Class A (28,021,443) (9,318,202) Class B (1,084,821) (500,541) Class C (6,187,775) (2,033,412) Class N (709,320) (194,577) Class Y (2,674,800) (465,053) --------------- ---------------- (38,678,159) (12,511,785) =============== ================ BENEFICIAL INTEREST TRANSACTIONS Net increase in net assets resulting from beneficial interest transactions: Class A 2,355,257,036 1,722,287,255 Class B 57,755,871 283,956 Class C 562,716,053 374,437,685 Class N 68,503,291 78,446,426 Class Y 435,676,079 247,318,830 --------------- ---------------- 3,479,908,330 2,422,774,152 =============== ================ NET ASSETS Total increase 4,033,562,968 3,099,750,421 --------------- ---------------- Beginning of period 8,524,962,761 5,425,212,340 --------------- ---------------- End of period (including accumulated net investment income (loss) of $(146,555,773) and $135,476,136, respectively) $12,558,525,729 $ 8,524,962,761 =============== ================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 41 | OPPENHEIMER INTERNATIONAL BOND FUND FINANCIAL HIGHLIGHTS
SIX MONTHS ENDED MARCH 31, 2008 YEAR ENDED SEPTEMBER 30, CLASS A (UNAUDITED) 2007 2006 2005 2004 2003 - -------------------------------- -------------- ----------- ----------- ----------- ----------- --------- PER SHARE OPERATING DATA Net asset value, beginning of period $ 6.41 $ 5.80 $ 6.01 $ 5.63 $ 5.33 $ 4.38 -------------- ----------- ----------- ----------- ----------- --------- Income (loss) from investment operations: Net investment income .13(1) .24(1) .22(1) .23(1) .13 .20 Net realized and unrealized gain (loss) .55 .62 (.04) .62 .47 .95 -------------- ----------- ----------- ----------- ----------- --------- Total from investment operations .68 .86 .18 .85 .60 1.15 -------------- ----------- ----------- ----------- ----------- --------- Dividends and/or distributions to shareholders: Dividends from net investment income (.31) (.24) (.37) (.41) (.30) (.20) Distributions from net realized gain (.03) (.01) (.02) (.06) -- -- -------------- ----------- ----------- ----------- ----------- --------- Total dividends and/or distributions to shareholders (.34) (.25) (.39) (.47) (.30) (.20) -------------- ----------- ----------- ----------- ----------- --------- Net asset value, end of period $ 6.75 $ 6.41 $ 5.80 $ 6.01 $ 5.63 $ 5.33 ============== =========== =========== =========== =========== ========= TOTAL RETURN, AT NET ASSET VALUE (2) 10.92% 15.18% 3.23% 15.53% 11.56% 26.67% ============== =========== =========== =========== =========== ========= RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands) $ 9,056,228 $ 6,300,320 $ 4,075,172 $ 2,683,900 $ 1,177,628 $ 429,283 -------------- ----------- ----------- ----------- ----------- --------- Average net assets (in thousands) $ 7,511,180 $ 4,988,412 $ 3,430,374 $ 1,925,344 $ 811,608 $ 285,391 -------------- ----------- ----------- ----------- ----------- --------- Ratios to average net assets: (3) Net investment income 3.89% 3.97% 3.72% 3.85% 2.19% 3.94% Total expenses 0.91%(4) 0.94%(4) 0.98% 1.03% 1.13% 1.22% Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses 0.90% 0.93% 0.97% 1.02% 1.13% 1.22% -------------- ----------- ----------- ----------- ----------- --------- Portfolio turnover rate 50% 68% 144% 90% 133% 341%
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 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 less than one full year. 4. Total expenses including indirect expenses from affiliated fund were as follows: Six Months Ended March 31, 2008 0.92% Year Ended September 30, 2007 0.95%
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 42 | OPPENHEIMER INTERNATIONAL BOND FUND
SIX MONTHS ENDED MARCH 31, 2008 YEAR ENDED SEPTEMBER 30, CLASS B (UNAUDITED) 2007 2006 2005 2004 2003 -------------- ----------- ----------- ----------- ----------- --------- PER SHARE OPERATING DATA Net asset value, beginning of period $ 6.39 $ 5.78 $ 5.99 $ 5.61 $ 5.31 $ 4.37 -------------- ----------- ----------- ----------- ----------- --------- Income (loss) from investment operations: Net investment income .10(1) .19(1) .17(1) .17(1) .08 .16 Net realized and unrealized gain (loss) .56 .62 (.04) .63 .47 .94 -------------- ----------- ----------- ----------- ----------- --------- Total from investment operations .66 .81 .13 .80 .55 1.10 -------------- ----------- ----------- ----------- ----------- --------- Dividends and/or distributions to shareholders: Dividends from net investment income (.29) (.19) (.32) (.36) (.25) (.16) Distributions from net realized gain (.03) (.01) (.02) (.06) -- -- -------------- ----------- ----------- ----------- ----------- --------- Total dividends and/or distributions to shareholders (.32) (.20) (.34) (.42) (.25) (.16) -------------- ----------- ----------- ----------- ----------- --------- Net asset value, end of period $ 6.73 $ 6.39 $ 5.78 $ 5.99 $ 5.61 $ 5.31 ============== =========== =========== =========== =========== ========= TOTAL RETURN, AT NET ASSET VALUE (2) 10.51% 14.26% 2.35% 14.58% 10.66% 25.48% ============== =========== =========== =========== =========== ========= RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands) $ 332,376 $ 259,285 $ 234,848 $ 224,381 $ 167,621 $ 134,661 -------------- ----------- ----------- ----------- ----------- --------- Average net assets (in thousands) $ 288,078 $ 240,238 $ 229,871 $ 201,541 $ 153,117 $ 119,232 -------------- ----------- ----------- ----------- ----------- --------- Ratios to average net assets: (3) Net investment income 3.09% 3.12% 2.88% 2.95% 1.40% 3.20% Total expenses 1.72%(4) 1.79%(4) 1.83% 1.89% 1.98% 2.03% Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses 1.71% 1.78% 1.83% 1.89% 1.98% 2.03% -------------- ----------- ----------- ----------- ----------- --------- Portfolio turnover rate 50% 68% 144% 90% 133% 341%
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 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 less than one full year. 4. Total expenses including indirect expenses from affiliated fund were as follows: Six Months Ended March 31, 2008 1.73% Year Ended September 30, 2007 1.80%
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 43 | OPPENHEIMER INTERNATIONAL BOND FUND FINANCIAL HIGHLIGHTS Continued
SIX MONTHS ENDED MARCH 31, 2008 YEAR ENDED SEPTEMBER 30, CLASS C (UNAUDITED) 2007 2006 2005 2004 2003 -------------- ----------- ----------- ----------- ----------- --------- PER SHARE OPERATING DATA Net asset value, beginning of period $ 6.39 $ 5.78 $ 5.99 $ 5.61 $ 5.31 $ 4.37 -------------- ----------- ----------- ----------- ----------- --------- Income (loss) from investment operations: Net investment income .10(1) .20(1) .17(1) .18(1) .09 .16 Net realized and unrealized gain (loss) .56 .62 (.03) .63 .46 .94 -------------- ----------- ----------- ----------- ----------- --------- Total from investment operations .66 .82 .14 .81 .55 1.10 -------------- ----------- ----------- ----------- ----------- --------- Dividends and/or distributions to shareholders: Dividends from net investment income (.29) (.20) (.33) (.37) (.25) (.16) Distributions from net realized gain (.03) (.01) (.02) (.06) -- -- -------------- ----------- ----------- ----------- ----------- --------- Total dividends and/or distributions to shareholders (.32) (.21) (.35) (.43) (.25) (.16) -------------- ----------- ----------- ----------- ----------- --------- Net asset value, end of period $ 6.73 $ 6.39 $ 5.78 $ 5.99 $ 5.61 $ 5.31 ============== =========== =========== =========== =========== ========= TOTAL RETURN, AT NET ASSET VALUE (2) 10.56% 14.39% 2.46% 14.70% 10.75% 25.48% ============== =========== =========== =========== =========== ========= RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands) $ 2,008,572 $ 1,357,937 $ 875,032 $ 560,138 $ 233,311 $ 90,248 -------------- ----------- ----------- ----------- ----------- --------- Average net assets (in thousands) $ 1,649,879 $ 1,078,601 $ 717,977 $ 401,401 $ 170,796 $ 63,198 -------------- ----------- ----------- ----------- ----------- --------- Ratios to average net assets: (3) Net investment income 3.17% 3.24% 2.98% 3.10% 1.46% 3.15% Total expenses 1.62%(4) 1.67%(4) 1.71% 1.77% 1.88% 2.02% Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses 1.61% 1.66% 1.71% 1.77% 1.88% 2.02% -------------- ----------- ----------- ----------- ----------- --------- Portfolio turnover rate 50% 68% 144% 90% 133% 341%
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 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 less than one full year. 4. Total expenses including indirect expenses from affiliated fund were as follows: Six Months Ended March 31, 2008 1.63% Year Ended September 30, 2007 1.68%
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 44 | OPPENHEIMER INTERNATIONAL BOND FUND
SIX MONTHS ENDED MARCH 31, 2008 YEAR ENDED SEPTEMBER 30, CLASS N (UNAUDITED) 2007 2006 2005 2004 2003 --------------- ----------- ----------- ----------- ----------- --------- PER SHARE OPERATING DATA Net asset value, beginning of period $ 6.40 $ 5.79 $ 6.00 $ 5.61 $ 5.32 $ 4.37 -------------- ----------- ----------- ----------- ----------- --------- Income (loss) from investment operations: Net investment income .11(1) .22(1) .19(1) .20(1) .12 .18 Net realized and unrealized gain (loss) .55 .61 (.04) .64 .45 .95 -------------- ----------- ----------- ----------- ----------- --------- Total from investment operations .66 .83 .15 .84 .57 1.13 -------------- ----------- ----------- ----------- ----------- --------- Dividends and/or distributions to shareholders: Dividends from net investment income (.30) (.21) (.34) (.39) (.28) (.18) Distributions from net realized gain (.03) (.01) (.02) (.06) -- -- -------------- ----------- ----------- ----------- ----------- --------- Total dividends and/or distributions to shareholders (.33) (.22) (.36) (.45) (.28) (.18) -------------- ----------- ----------- ----------- ----------- --------- Net asset value, end of period $ 6.73 $ 6.40 $ 5.79 $ 6.00 $ 5.61 $ 5.32 ============== =========== =========== =========== =========== ========= TOTAL RETURN, AT NET ASSET VALUE (2) 10.54% 14.71% 2.78% 15.27% 11.00% 26.31% ============== =========== =========== =========== =========== ========= RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands) $ 231,941 $ 153,181 $ 63,432 $ 46,533 $ 18,641 $ 4,640 -------------- ----------- ----------- ----------- ----------- --------- Average net assets (in thousands) $ 190,011 $ 112,319 $ 55,216 $ 30,696 $ 10,769 $ 2,653 -------------- ----------- ----------- ----------- ----------- --------- Ratios to average net assets: (3) Net investment income 3.48% 3.56% 3.29% 3.45% 1.83% 3.56% Total expenses 1.52%(4) 1.61%(4) 1.58% 1.47% 1.49% 1.57% Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses 1.32% 1.37% 1.42% 1.46% 1.49% 1.57% -------------- ----------- ----------- ----------- ----------- --------- Portfolio turnover rate 50% 68% 144% 90% 133% 341%
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 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 less than one full year. 4. Total expenses including indirect expenses from affiliated fund were as follows: Six Months Ended March 31, 2008 1.53% Year Ended September 30, 2007 1.62%
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 45 | OPPENHEIMER INTERNATIONAL BOND FUND FINANCIAL HIGHLIGHTS Continued
SIX MONTHS ENDED MARCH 31, 2008 YEAR ENDED SEPTEMBER 30, CLASS Y (UNAUDITED) 2007 2006 2005 2004(1) - ----------------------------------------------- -------------- ----------- ----------- ----------- ----------- PER SHARE OPERATING DATA Net asset value, beginning of period $ 6.41 $ 5.80 $ 6.01 $ 5.63 $ 5.58 ----------- ----------- ----------- ----------- ----------- Income (loss) from investment operations: Net investment income (loss) .14(2) .27(2) .24(2) .25(2) --(3) Net realized and unrealized gain (loss) .56 .62 (.04) .63 .05 ----------- ----------- ----------- ----------- ----------- Total from investment operations .70 .89 .20 .88 .05 ----------- ----------- ----------- ----------- ----------- Dividends and/or distributions to shareholders: Dividends from net investment income (.33) (.27) (.39) (.44) -- Distributions from net realized gain (.03) (.01) (.02) (.06) -- ----------- ----------- ----------- ----------- ----------- Total dividends and/or distributions to shareholders (.36) (.28) (.41) (.50) -- ----------- ----------- ----------- ----------- ----------- Net asset value, end of period $ 6.75 $ 6.41 $ 5.80 $ 6.01 $ 5.63 =========== =========== =========== =========== =========== TOTAL RETURN, AT NET ASSET VALUE (4) 11.14% 15.63% 3.64% 15.96% 0.92% =========== =========== =========== =========== =========== RATIOS/SUPPLEMENTAL DATA Net assets, end of period (in thousands) $ 929,409 $ 454,240 $ 176,728 $ 37,286 $ 14,268 ----------- ----------- ----------- ----------- ----------- Average net assets (in thousands) $ 703,108 $ 299,298 $ 97,992 $ 25,559 $ 7,086 ----------- ----------- ----------- ----------- ----------- Ratios to average net assets: (5) Net investment income 4.26% 4.38% 4.11% 4.23% 4.84% Total expenses 0.53%(6) 0.55%(6) 0.56% 0.67% 1.17% Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses 0.52% 0.54% 0.56% 0.66% 1.17% ----------- ----------- ----------- ----------- ----------- Portfolio turnover rate 50% 68% 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 less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 5. Annualized for periods less than one full year. 6. Total expenses including indirect expenses from affiliated fund were as follows: Six Months Ended March 31, 2008 0.54% Year Ended September 30, 2007 0.56%
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 46 | 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 adviser is OppenheimerFunds, Inc. (the "Manager"). The Fund offers Class A, Class B, Class C, Class N and Class Y shares. Class A shares are sold at their offering price, which is normally net asset value plus a front-end sales charge. Class B, Class C and Class N shares are sold without a front-end sales charge but may be subject to a contingent deferred sales charge ("CDSC"). Class N shares are sold only through retirement plans. Retirement plans that offer Class N shares may impose charges on those accounts. Class Y shares are sold to certain institutional investors 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 72 months 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 trading. Securities may be valued primarily using dealer-supplied valuations or a portfolio pricing service authorized by the Board of Trustees. Securities traded on a registered U.S. securities exchange 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 whose principal exchange is NASDAQ(R) are valued based on the closing price reported 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, collateralized mortgage obligations and other asset-backed securities will be valued at the mean between 47 | OPPENHEIMER INTERNATIONAL BOND FUND NOTES TO FINANCIAL STATEMENTS Unaudited / Continued 1. SIGNIFICANT ACCOUNTING POLICIES Continued the "bid" and "asked" prices. Securities for which market quotations are not readily available are valued at their fair value. 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. Shares of a registered investment company that are not traded on an exchange are valued at the acquired investment company's net asset value per share. "Money market-type" debt instruments with remaining maturities of sixty days or less are valued at cost adjusted by the amortization of discount or premium to maturity (amortized cost), which approximates market value. STRUCTURED SECURITIES. The Fund invests in structured securities 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 securities 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 security is sold or matures. SECURITIES ON A WHEN-ISSUED OR DELAYED DELIVERY BASIS. The Fund may purchase securities on a "when-issued" basis, and may purchase or sell securities on a "delayed delivery" basis. "When-issued" or "delayed delivery" refers to securities whose terms and indenture are available and for which a market exists, but which are not available for immediate delivery. Delivery and payment for securities that have been purchased by the Fund on a when-issued basis normally takes place within six months and possibly as long as two years or more after the 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 purchase of securities on a when-issued basis may increase the volatility of the Fund's net asset value to the extent the Fund executes such transactions while remaining substantially fully invested. When the Fund engages in when-issued or delayed delivery transactions, it relies on the buyer or seller, as the case may be, to complete the transaction. Their failure to do so may cause the Fund to lose the opportunity to obtain or dispose of the security at a price and yield it considers advantageous. The Fund maintains internally designated assets with a market value equal to or greater than the amount of its purchase commitments. The Fund may also sell securities that it purchased on a when-issued basis or forward commitment prior to settlement of the original purchase. 48 | OPPENHEIMER INTERNATIONAL BOND FUND As of March 31, 2008, the Fund had purchased securities issued on a when-issued or delayed delivery basis and sold securities issued on a delayed delivery basis as follows:
WHEN-ISSUED OR DELAYED DELIVERY BASIS TRANSACTIONS --------------------------- Purchased securities $ 16,658,648
CREDIT RISK. The Fund invests in high-yield, non-investment-grade bonds, which may be subject to a greater degree of credit risk. Credit risk relates to the ability of the issuer to meet interest or principal payments or both as they become due. The Fund may acquire securities in default, and is not obligated to dispose of securities whose issuers subsequently default. As of March 31, 2008, securities that were in default had a market value of zero. 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 Exchange, normally 4:00 P.M. Eastern time, on each day the Exchange is open for trading. Foreign exchange rates may be valued primarily using a reliable bank, dealer or service authorized by the Board of Trustees. Reported net realized gains and losses from foreign currency transactions arise from sales of portfolio securities, sales and maturities of short-term securities, sales of foreign currencies, exchange rate fluctuations between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized appreciation and depreciation on the translation of assets and liabilities denominated in foreign currencies arise from changes in the values of assets and liabilities, including investments in securities at fiscal period end, resulting from changes in exchange rates. The effect of changes in foreign currency exchange rates on investments is separately identified from the fluctuations arising from changes in market values of securities held and reported with all other foreign currency gains and losses in the Fund's Statement of Operations. INVESTMENT IN OPPENHEIMER INSTITUTIONAL MONEY MARKET FUND. The Fund is permitted to invest daily available cash balances in an affiliated money market fund. The Fund may invest the available cash in Class E shares of Oppenheimer Institutional Money Market Fund ("IMMF") to seek current income while preserving liquidity. IMMF is a registered open-end management investment company, regulated as a money market fund under the Investment Company Act of 1940, as amended. The Manager is also the investment adviser of IMMF. 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. 49 | OPPENHEIMER INTERNATIONAL BOND FUND NOTES TO FINANCIAL STATEMENTS Unaudited / Continued 1. SIGNIFICANT ACCOUNTING POLICIES Continued 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. The Fund files income tax returns in U.S. federal and applicable state jurisdictions. The statute of limitations on the Fund's tax return filings generally remain open for the three preceding fiscal reporting period ends. 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. The approximate aggregate cost of securities and other investments and the composition of unrealized appreciation and depreciation of securities and other investments for federal income tax purposes as of March 31, 2008 are noted below. The primary difference between book and tax appreciation or depreciation of securities and other investments, if applicable, is attributable to the tax deferral of losses. Federal tax cost of securities $ 11,336,137,960 Federal tax cost of other investments 1,943,808,736 -------------------- Total federal tax cost $ 13,279,946,696 ==================== Gross unrealized appreciation $ 878,402,617 Gross unrealized depreciation (204,873,672) -------------------- Net unrealized appreciation $ 673,528,945 ====================
50 | OPPENHEIMER INTERNATIONAL BOND FUND 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 and may differ from U.S. generally accepted accounting principles, are recorded on the ex-dividend date. Income distributions, if any, are declared daily and paid monthly. Capital gain distributions, if any, are declared and paid annually. INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date or upon ex-dividend notification in the case of certain foreign dividends where the ex-dividend date may have passed. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income is recognized on an accrual basis. Discount and premium, which are included in interest income on the Statement of Operations, are amortized or accreted daily. CUSTODIAN FEES. "Custodian fees and expenses" in the Statement of Operations may include interest expense incurred by the Fund on any cash overdrafts of its custodian account during the period. Such cash overdrafts may result from the effects of failed trades in portfolio securities and from cash outflows resulting from unanticipated shareholder redemption activity. The Fund pays interest to its custodian on such cash overdrafts, to the extent they are not offset by positive cash balances maintained by the Fund, at a rate equal to the Federal Funds Rate plus 0.50%. The "Reduction to custodian expenses" line item, if applicable, 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 51 | OPPENHEIMER INTERNATIONAL BOND FUND NOTES TO FINANCIAL STATEMENTS Unaudited / Continued 1. SIGNIFICANT ACCOUNTING POLICIES Continued Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote. OTHER. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. 2. 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, 2008 YEAR ENDED SEPTEMBER 30, 2007 SHARES AMOUNT SHARES AMOUNT ------------ --------------- ------------ --------------- CLASS A Sold 443,735,799 $ 2,915,169,514 433,932,882 $ 2,659,913,820 Dividends and/or distributions reinvested 46,151,478 298,269,874 25,787,295 158,485,899 Redeemed (130,996,754) (858,182,352) (179,871,991) (1,096,112,464) ------------ --------------- ------------ --------------- Net increase 358,890,523 $ 2,355,257,036 279,848,186 $ 1,722,287,255 ============ =============== ============ =============== CLASS B Sold 13,430,387 $ 87,935,609 10,415,726 $ 63,664,138 Dividends and/or distributions reinvested 1,691,595 10,864,167 1,057,950 6,467,460 Redeemed (6,286,327) (41,043,905) (11,528,127) (69,847,642) ------------ --------------- ------------ --------------- Net increase (decrease) 8,835,655 $ 57,755,871 (54,451) $ 283,956 ============ =============== ============ =============== CLASS C Sold 99,458,617 $ 651,154,407 88,253,662 $ 539,409,592 Dividends and/or distributions reinvested 7,468,293 47,980,569 3,770,947 23,093,523 Redeemed (20,861,746) (136,418,923) (30,938,093) (188,065,430) ------------ --------------- ------------ --------------- Net increase 86,065,164 $ 562,716,053 61,086,516 $ 374,437,685 ============ =============== ============ =============== CLASS N Sold 13,128,465 $ 85,778,624 16,571,249 $ 100,240,959 Dividends and/or distributions reinvested 1,337,438 8,611,243 633,640 3,890,963 Redeemed (3,967,814) (25,886,576) (4,223,784) (25,685,496) ------------ --------------- ------------ --------------- Net increase 10,498,089 $ 68,503,291 12,981,105 $ 78,446,426 ============ =============== ============ ===============
52 | OPPENHEIMER INTERNATIONAL BOND FUND
SIX MONTHS ENDED MARCH 31, 2008 YEAR ENDED SEPTEMBER 30, 2007 SHARES AMOUNT SHARES AMOUNT ------------ --------------- ------------ --------------- CLASS Y Sold 71,019,970 $ 463,646,170 42,411,954 $ 259,884,092 Dividends and/or distributions reinvested 5,028,087 32,500,861 2,027,388 12,488,704 Redeemed (9,207,197) (60,470,952) (4,082,901) (25,053,966) ------------ --------------- ------------ --------------- Net increase 66,840,860 $ 435,676,079 40,356,441 $ 247,318,830 ============ =============== ============ ===============
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 IMMF, for the six months ended March 31, 2008, were as follows:
PURCHASES SALES -------------- -------------- Investment securities $6,205,099,722 $3,027,144,695 U.S. government and government agency obligations 479,166,172 711,827,625
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES MANAGEMENT FEES. Under the investment advisory agreement, the Fund pays the Manager a management fee based on the daily net assets of the Fund at an annual rate as shown in the following table:
FEE SCHEDULE - ------------ 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"), 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, 2008, the Fund paid $6,561,449 to OFS for services to the Fund. Additionally, Class Y shares are subject to minimum fees of $10,000 annually for assets of $10 million or more. The Class Y shares are subject to the minimum fees in the event that the per account fee does not equal or exceed the applicable minimum fees. OFS may voluntarily waive the minimum fees. DISTRIBUTION AND SERVICE PLAN (12B-1) FEES. Under its General 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. 53 | OPPENHEIMER INTERNATIONAL BOND FUND NOTES TO FINANCIAL STATEMENTS Unaudited / Continued 4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued SERVICE PLAN FOR CLASS A SHARES. The Fund has adopted a Service Plan (the "Plan") for Class A shares under Rule 12b-1 of the Investment Company Act of 1940. Under the Plan, the Fund reimburses the Distributor for a portion of its costs incurred for services provided to accounts that hold Class A shares. Reimbursement is made periodically at an annual rate of up to 0.25% of the 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 service and maintenance of accounts of their customers that hold Class A shares. Any unreimbursed expenses the Distributor incurs with respect to Class A shares in any fiscal year cannot be recovered in subsequent periods. Fees incurred by the Fund under the Plan are detailed in the Statement of Operations. DISTRIBUTION AND SERVICE PLANS FOR CLASS B, CLASS C AND CLASS N SHARES. The Fund has adopted Distribution and Service Plans (the "Plans") for Class B, Class C and Class N shares under Rule 12b-1 of the Investment Company Act of 1940 to compensate the Distributor for its services in connection with the distribution of those shares and servicing accounts. 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's aggregate uncompensated expenses under the Plans at March 31, 2008 for Class B, Class C and Class N shares were $8,480,966, $24,358,471 and $2,135,201, 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, 2008 $ 1,558,681 $ 136,819 $ 289,409 $ 173,585 $ 5,185
54 | OPPENHEIMER INTERNATIONAL BOND FUND 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, 2008, OFS waived $176,329 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, 2008, the Manager waived $364,115 for IMMF management fees. 5. FOREIGN CURRENCY EXCHANGE CONTRACTS The Fund may enter into foreign currency exchange contracts ("forward contracts") for the purchase or sale of a foreign currency at a negotiated rate at a future date. Forward contracts are reported on a schedule following the Statement of Investments. Forward contracts will be valued daily based upon the closing prices of the forward currency rates determined at the close of the Exchange as provided by a bank, dealer or pricing service. The resulting unrealized appreciation (depreciation) is reported in the Statement of Assets and Liabilities as a receivable or payable and in the Statement of Operations within the change in unrealized appreciation (depreciation). At contract close, the difference between the original cost of the contract and the value at the close date is recorded as a realized gain (loss) in the Statement of Operations. Risks to the Fund include both market and credit risk. Market risk is the risk that the value of the forward contract will depreciate due to unfavorable changes in the exchange rates. 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 payments that the Fund has not yet received. 6. FUTURES CONTRACTS A futures contract is a commitment to buy or sell a specific amount of a financial instrument at a negotiated price on a stipulated future date. The Fund may buy and sell futures and may also buy or write put or call options on these futures contracts. Futures contracts traded 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. 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. 55 | OPPENHEIMER INTERNATIONAL BOND FUND NOTES TO FINANCIAL STATEMENTS Unaudited / Continued 6. FUTURES CONTRACTS Continued Futures contracts are reported on a schedule following the Statement of Investments. Securities held in collateralized accounts to cover initial margin requirements on open futures contracts are noted in the Statement of Investments. Cash held by the broker to cover initial margin requirements on open futures contracts and the receivable and/or payable for the daily mark to market for the variation margin are noted in the Statement of Assets and Liabilities. The net change in unrealized appreciation and depreciation is reported in the Statement of Operations. Realized gains (losses) are reported in the Statement of Operations at the closing or expiration of futures contracts. Risks of entering into futures contracts (and related options) include the possibility that there may be an illiquid market where the Fund is unable to liquidate the contract or enter into an offsetting position and, if used for hedging purposes, the risk that the price of the contract will correlate imperfectly with the prices of the Fund's securities. 7. OPTION ACTIVITY The Fund may buy and sell put and call options, or write put and covered call options. When an option is written, the Fund receives a premium and becomes obligated to sell or purchase the underlying security at a fixed price, upon exercise of the option. Options are valued daily based upon the last sale price on the principal exchange on which the option is traded. The difference between the premium received or paid, and market value of the option, is recorded as unrealized appreciation or depreciation. The net change in unrealized appreciation or depreciation is reported in the Statement of Operations. When an option is exercised, the cost of the security purchased or the proceeds of the security sale are adjusted by the amount of premium received or paid. Upon the expiration or closing of the option transaction, a gain or loss is reported in the Statement of Operations. Securities designated to cover outstanding call or put options are noted in the Statement of Investments where applicable. Options written are reported in a schedule following the Statement of Investments and as a liability in the Statement of Assets and Liabilities. The risk in writing a call option is that the Fund gives up the opportunity for profit if the market price of the security increases and the option is exercised. The risk in writing a put option is that the Fund may incur a loss if the market price of the security decreases and the option is exercised. The risk in buying an option is that the Fund pays a premium whether or not the option is exercised. The Fund also has the additional risk that there may be an illiquid market where the Fund is unable to close the contract. 56 | OPPENHEIMER INTERNATIONAL BOND FUND Written option activity for the six months ended March 31, 2008 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, 2007 15,320,000 $ 96,794 15,320,000 $ 96,917 Options written 76,126,860,000 13,536,970 48,200,375,000 10,654,326 Options closed or expired (46,403,540,000) (7,324,150) (26,313,925,000) (5,913,620) Options exercised (25,324,530,000) (5,441,777) (17,487,660,000) (3,964,495) --------------- --------------- --------------- --------------- Options outstanding as of March 31, 2008 4,414,110,000 $ 867,837 4,414,110,000 $ 873,128 =============== =============== =============== ===============
8. SWAP CONTRACTS The Fund may enter into swap contract agreements with a counterparty to exchange a series of cash flows based on either specified reference rates, or the occurrence of a credit event, over a specified period. Such contracts may include interest rate, equity, debt, index, total return, credit and currency swaps. Swaps are marked to market daily using primarily quotations from pricing services, counterparties and brokers. Swap contracts are reported on a schedule following the Statement of Investments. 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. 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. Risks of entering into swap contracts include credit, market and liquidity risk. 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 payments that the Fund has not yet received. Market risk is the risk that the value of the contract will depreciate due to unfavorable changes in the reference asset. If there is an illiquid market for the agreement, the Fund may be unable to close the contract prior to contract termination. 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 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 57 | OPPENHEIMER INTERNATIONAL BOND FUND NOTES TO FINANCIAL STATEMENTS Unaudited / Continued 8. SWAP CONTRACTS Continued value of the credit default swap contract less the value of the underlying security. 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. Risks of credit default swaps include, but are not limited to, the cost of paying for credit protection if there are no credit events, or the cost of selling protection (paying the notional amount) when a credit event occurs, pricing transparency when assessing the cost of a credit default swap, and the need to fund the delivery obligation (either cash or defaulted securities). INTEREST RATE SWAP CONTRACTS. An interest rate swap is an agreement between counter-parties to exchange periodic interest payments on the notional amount of the contract. One cash flow stream will typically be a floating rate payment based upon a specified index while the other is typically a fixed rate. Interest rate swap agreements include interest rate risk. There is a risk, based on future movements of interest rates where the payments made by the Fund under a swap agreement will be greater than the payments it received. TOTAL RETURN SWAP CONTRACTS. A total return swap is an agreement between counter-parties to exchange a set of future cash flows on the notional amount of the contract. One cash flow is typically 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. CURRENCY SWAPS. A currency swap is an agreement between counterparties 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 swap agreements include exchange rate 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. 9. ILLIQUID OR RESTRICTED SECURITIES As of March 31, 2008, investments in securities included issues that are illiquid or restricted. Investments may be illiquid because they do not have an active trading market, making it difficult to value them or dispose of them promptly at an acceptable price. A restricted security may have a contractual restriction on its resale and is valued under methods approved by the Board of Trustees as reflecting fair value. The Fund will 58 | OPPENHEIMER INTERNATIONAL BOND FUND not invest more than 15% of its net assets (determined at the time of purchase and reviewed periodically) in illiquid and restricted securities. Certain restricted securities, eligible for resale to qualified institutional purchasers, may not be subject to that limitation. Securities that are illiquid or restricted are marked with an applicable footnote on the Statement of Investments. Restricted securities are reported on a schedule following the Statement of Investments. 10. UNFUNDED PURCHASE COMMITMENTS Pursuant to the terms of certain indenture agreements, the Fund has unfunded purchase commitments of $24,636,364 at March 31, 2008. The Fund generally will maintain with its custodian, liquid investments having an aggregate value at least equal to the amount of unfunded purchase commitments. The following commitments are subject to funding based on the borrower's discretion. The Fund is obligated to fund these commitments at the time of the request by the borrower. These commitments have been excluded from the Statement of Investments. As of March 31, 2008, the Fund had unfunded purchase commitments as follows:
COMMITMENT TERMINATION UNFUNDED DATE AMOUNT ----------- ------------ Deutsche Bank AG, Optic Reforma Credit Linked Nts. 10/3/15 $ 24,636,364
11. SECURITIES LENDING The Fund lends portfolio securities from time to time in order to earn additional income in the form of fees or interest on securities received as collateral or the investment of any cash received as collateral. The loans are secured by collateral (either securities, letters of credit, or cash) 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 each business day and any additional required collateral is delivered to the Fund on the next business day. 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 and recognizes the gain or loss in the fair value of the securities loaned that may occur during the term of the loan. The Fund has the right under the lending agreement to recover the securities from the borrower on demand. As of March 31, 2008, the Fund had no securities on loan. 59 | OPPENHEIMER INTERNATIONAL BOND FUND NOTES TO FINANCIAL STATEMENTS Unaudited / Continued 12. RECENT ACCOUNTING PRONOUNCEMENT In September 2006, Financial Accounting Standards Board ("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, 2008, 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. 60 | 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. 61 | 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 03/31/2008, 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: 05/14/2008 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: 05/14/2008 By: /s/ Brian W. Wixted --------------------------- Brian W. Wixted Principal Financial Officer Date: 05/14/2008 EX-99.CERT 2 rs880_46581cert302.txt RS880_46581CERT302.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: 05/14/2008 /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: 05/14/2008 /s/ Brian W. Wixted - --------------------------- Brian W. Wixted Principal Financial Officer EX-99.906CERT 3 rs880_46581cert906.txt RS880_46581CERT906.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 03/31/2008 (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 Oppenheimer International Bond Fund Fund /s/ John V. Murphy /s/ Brian W. Wixted - ------------------------------- ------------------------------ John V. Murphy Brian W. Wixted Date: 05/14/2008 Date: 05/14/2008 -----END PRIVACY-ENHANCED MESSAGE-----