OPPENHEIMER INTERNATIONAL BOND FUND
Oppenheimer International Bond Fund
Supplement dated November 1, 2001 to the
Prospectus dated January 17, 2001
The Prospectus is changed as follows:
1. The supplement dated August 7, 2001 is withdrawn.
2. The fifth paragraph of the section entitled
"What Classes of Shares Does the Fund Offer?"
on page 16 is deleted and replaced with the
following:
Class N Shares. If you buy Class N shares
(available only through certain retirement
plans), you pay no sales charge at the time of
purchase, but you will pay an annual
asset-based sales charge. If you sell your
shares within eighteen (18) months of the
retirement plan's first purchase of Class N
shares, you may pay a contingent deferred sales
charge of 1.0%, as described in "How Can You
Buy Class N Shares?" below.
3. The section captioned "Class A Contingent
Deferred Sales Charge" on page 19 is deleted
and replaced with the following:
Class A Contingent Deferred Sales Charge.
There is no initial sales charge on
non-retirement plan purchases of Class A shares
of any one or more of the Oppenheimer funds
aggregating $1 million or more, or for certain
purchases by particular types of retirement
plans that were permitted to purchase such
shares prior to March 1, 2001 ("grandfathered
retirement accounts"). After March 1, 2001,
retirement plans are not permitted to make
initial purchases of Class A shares subject to
a contingent deferred sales charge, except as
provided below.
The Distributor pays dealers of record
concessions in an amount equal to 1.0% of
purchases of $1 million or more other than by
grandfathered retirement accounts. For
grandfathered retirement accounts, the
concession is 1.0% of the first $2.5 million,
plus 0.50% of the next $2.5
(over)
million, plus 0.25% of purchases over $5
million, calculated on a calendar year basis.
In either case, the concession will not be paid
on purchases of shares by exchange or that were
not previously subject to a front-end sales
charge and dealer concession.
If you redeem any of those shares within an 18
month "holding period" measured from the
beginning of the calendar month of their
purchase, a contingent deferred sales charge
(called the "Class A contingent deferred sales
charge") may be deducted from the redemption
proceeds. That sales charge will be equal to
1.0% of the lesser of (1) the aggregate net
asset value of the redeemed shares at the time
of redemption (excluding shares purchased by
reinvestment of dividends or capital gain
distributions) or (2) the original net asset
value of the redeemed shares. The Class A
contingent deferred sales charge will not
exceed the aggregate amount of the commissions
the Distributor paid to your dealer on all
purchases of Class A shares of all Oppenheimer
funds you made that were subject to the Class A
contingent deferred sales charge.
Purchases by Certain Retirement Plans.
There is no initial sales charge on purchases
of Class A shares of any one or more
Oppenheimer funds by retirement plans that have
$10 million or more in plan assets and that
have entered into a special agreement with the
Distributor and by retirement plans which are
part of a retirement plan product or platform
offered by certain banks, broker-dealers,
financial advisors, insurance companies or
recordkeepers which have entered into a special
agreement with the Distributor. The
Distributor currently pays dealers of record
concessions in an amount equal to 0.25% of the
purchase price of Class A
shares by those retirement plans from its own
resources at the time of sale. 1 There is no
contingent deferred sales charge upon the
redemption of such shares.
----------------------
1. No concession will be paid on sales of Class
A shares purchased with the redemption proceeds
of shares of another mutual fund offered as an
investment option in a retirement plan in which
Oppenheimer funds are also offered as
investment options under a special arrangement
with the Distributor, if the purchase occurs
more than 30 days after the Oppenheimer funds
are added as an investment option under that
plan. In applying the contingent deferred sales
charge, all purchases are considered to have
been made on the first regular business day of
the month in which the purchase was made.
Additionally, that concession will not be paid
on purchases of shares by a retirement plan
made with the redemption proceeds of Class N
shares of one or more Oppenheimer funds held by
the plan for more than eighteen (18) months.
4. Effective November 1, 2001, Class N shares will pay
to the Distributor a 0.25% service fee in addition to
the 0.25% asset-based sales charge. The following
changes are to reflect the payment of the service fee:
a. The following sentence is added to the end of the
last sentence in the first paragraph under
"Fees and Expenses of the Fund" on page 8:
", as restated to reflect the change in
Distribution and/or Service (12b-1) Fees for
Class N shares from 0.25% to 0.50% per
annum, effective November 1, 2001."
b. The "Annual Fund Operating Expenses" table on page 8
is deleted and replaced with the following
table:
(over)
Annual Fund Operating Expenses (deducted from Fund assets):
(% of average daily net assets)
------------------------------------------------------------------------
Class A Class B Class C Class N
Shares Shares Shares Shares
------------------------------------------------------------------------
------------------------------------------------------------------------
Management Fees 0.74% 0.74% 0.74% 0.74%
------------------------------------------------------------------------
------------------------------------------------------------------------
Distribution
and/or Service 0.25% 1.00% 1.00% 0.50%
(12b-1) Fees
------------------------------------------------------------------------
------------------------------------------------------------------------
Other Expenses 0.32% 0.31% 0.31% 0.32%
------------------------------------------------------------------------
------------------------------------------------------------------------
Total Annual 1.31% 2.05% 2.05% 1.56%
Operating
Expenses
------------------------------------------------------------------------
"Total Annual Operating Expenses" were 1.29%, 2.03%, 2.03%
and 1.54% for Class A, Class B Class C and Class N shares,
respectively, after giving effect to an expense offset
arrangement that reduced the Fund's custodian fees.
Expenses may vary in future years. "Other expenses" include
transfer agent fees, custodial expenses, and accounting and
legal expenses the Fund pays. Class N shares were not
offered for sale during the Fund's last fiscal year. The
expenses above for Class N shares are based on the expected
expenses for that class for the current fiscal year.
c. The following is added as the second footnote under
the "Annual Fund Operating Expenses" table
on page 8: "For the fiscal year ended
September 30, 2001, "Distribution and/or
Service 12b-1 Fees" and "Total Annual
Operating Expenses" for the Class N shares
were 0.50% and 1.56%, respectively.
d. The third sentence of the first paragraph under
"Distribution and Service Plans for Class B,
Class C and Class N shares" on page 21 is
revised to read as follows: "The Distributor
also receives a service fee of 0.25% per
year under each plan." The last sentence of
the first paragraph is deleted.
e. The first sentence of the second paragraph under
"Distribution and Service Plans for Class B,
Class C and Class N shares" on page 21 is
revised to read as follows: "The asset-based
sales charge and service fees increase Class
B and Class C expenses by 1.00% and increase
f. Class N expenses by 0.50% of the net assets per year
of the respective class."
g. The first sentence of the third paragraph under
"Distribution and Service Plans for Class B,
Class C and Class N shares" on page 21 is
revised to read as follows: "The Distributor
uses the service fees to compensate dealers
for providing personal services for accounts
that hold Class B, Class C or Class N
shares."
h. The sixth paragraph under "Distribution and Service
Plans for Class B, Class C and Class N
shares" on page 22 is deleted and replaced
by the following paragraph:
The Distributor currently pays
a sales concession of 0.75% of
the purchase price of Class N
shares to dealers from its own
resources at the time of sale.
Including the advance of the
service fee, the total amount
paid by the Distributor to the
dealer at the time of sale of
Class N shares is therefore
1.00% of the purchase price.
The Distributor retains the
asset-based sales charge on
Class N shares. That sales
concession on the sale of
Class N shares will not be
paid on (i) purchases of Class
N shares in amounts of
$500,000 or more by a
retirement plan that pays for
the purchase with the
redemption proceeds of Class A
shares of one or more
Oppenheimer funds, or with the
redemption proceeds of Class C
shares of one or
more Oppenheimer funds held by
the plan for more than one
year (other than rollovers
from an
OppenheimerFunds-sponsored
Pinnacle or Ascender
(over)
401(k) plan to any IRA
invested in the Oppenheimer
funds), and (ii) on purchases
of Class N shares by an
OppenheimerFunds - sponsored
Pinnacle or Ascender 401(k)
plan made with the redemption
proceeds of Class A shares of
one or more Oppenheimer funds.
5. The third sentence of the section captioned
"OPPENHEIMERFUNDS INTERNET WEBSITE" on page 23 is
deleted and replaced with the following:
To perform account transactions or obtain
account information online, you must first
obtain a user I.D. and password on that web
site.
6. The first sentence of the last paragraph under the
heading "Shareholder Account Rules and Policies" on page
30 is revised by adding the words "and annual notice of
the Fund's privacy policy" after the phrase, "annual and
semi-annual report."
7. The last sentence of the last paragraph under the
heading "Shareholder Account Rules and Policies" on page
30 is revised to read as follows:
Individual copies of prospectuses, reports and
privacy notices will be sent to you commencing
30 days after the Transfer Agent receives your
request to stop householding.
8. The first sentence under "How to Get More
Information" on the prospectus back cover is revised to
read as follows:
You can request the Statement of Additional
Information, the Annual and Semi-Annual
Reports, the notice explaining the Fund's
privacy policy and other information about the
Fund or your account:
November 1, 2001 PS0880.024