<PAGE>
[GRAPHIC OF WORLD MAP]
Semiannual Report May 31, 2000
Oppenheimer
International Growth Fund
[OppenheimerFunds Logo]
<PAGE>
REPORT HIGHLIGHTS
CONTENTS
1 President's Letter
3 An Interview
with Your Fund's
Manager
10 Financial
Statements
29 Officers and Trustees
Strong results for European stocks and a higher allocation to Japanese equities
contributed to the Fund's performance. As in the United States, markets overseas
were volatile during the period, largely due to changing investor sentiment
toward technology stocks.
As bottom-up investors, we work to reduce the impact of market volatility by
investing not in regions but in what we regard as fundamentally sound
individual companies.
CUMULATIVE
TOTAL RETURNS*
For the 6-Month
Period Ended 5/31/00
Class A
Without With
Sales Chg. Sales Chg.
----------------------------
16.85% 10.14%
Class B
Without With
Sales Chg. Sales Chg.
----------------------------
16.42% 11.42%
Class C
Without With
Sales Chg. Sales Chg.
----------------------------
16.46% 15.46%
* SEE NOTES ON PAGE 8 FOR FURTHER DETAILS.
<PAGE>
PRESIDENT'S LETTER
[Photo of
Bridget A. Macaskill
President
Oppenheimer
International
Growth Fund]
Dear Shareholder,
The 1990s, although not free of volatility, were distinguished by an overall
bull market. In contrast, the year 2000 has been characterized so far as a
relatively difficult investment environment with high levels of volatility.
As we entered the year, a vital concern weighing on investors' minds was
growing evidence of a trend toward higher inflation. While productivity
improvements and various economic forces helped keep inflation low over the last
decade, the year 2000 has seen upward pressure on wages and some prices. That's
primarily because the U.S. economy has been growing at a vigorous pace, creating
a labor shortage for businesses and high spending levels among consumers. In
response, since the summer of 1999, the Federal Reserve Board raised short-term
interest rates six times through June 30, 2000, in an attempt to forestall
inflationary pressures.
During that period, higher interest rates adversely affected many stocks
and bonds. In a dramatic decline, previously high-flying technology stocks
generally fell to more reasonable valuations. At the same time, long-neglected
value stocks began to attract investor interest. The result: narrowing of the
valuation gap between growth stocks and value stocks. Finally, in the bond
market, higher interest rates caused prices of most fixed income securities to
fall.
At OppenheimerFunds, we were not surprised by these developments, many of
which we anticipated in our recent letters to investors. What did concern us was
that, prior to the April 2000 correction, we began to see disturbing signs that
short-term trading was taking place not just in technology stocks, but also in
mutual funds. Prudent investors will understand our concern: most stock and bond
funds are carefully designed as long-term investments to help individuals and
families progress toward significant financial goals. In general, short-term
trading is risky and may compromise a well planned financial strategy. It may
also result in unforeseen adverse consequences, such as unnecessarily high tax
bills.
1 OPPENHEIMER INTERNATIONAL GROWTH FUND
<PAGE>
PRESIDENT'S LETTER
We continue to believe that maintaining a long-term perspective and
practicing diversification are the fundamental drivers of consistent performance
over time. These strategies have helped individual investors, as well as
professional investors, weather declining markets and participate in rising
ones. On the following pages, your portfolio manager discusses the long-term
strategies and particular investment decisions that affected your fund during
the reporting period.
You can remain confident that our portfolio managers will continue to
monitor areas of opportunity in the arenas in which your fund invests, as the
effects of today's changing investment environment take hold. Knowing what's
going on in the world's economies, markets and companies--and making investment
decisions designed to try to take advantage of them over the long term--is
central to what makes OppenheimerFunds The Right Way to Invest.
Sincerely,
/s/ Bridget A. Macaskill
Bridget A. Macaskill
June 21, 2000
THESE GENERAL MARKET VIEWS REPRESENT OPINIONS OF OPPENHEIMERFUNDS, INC. AND ARE
NOT INTENDED TO PREDICT OR DEPICT PERFORMANCE OF ANY PARTICULAR FUND. SPECIFIC
DISCUSSION, AS IT APPLIES TO YOUR FUND, IS CONTAINED IN THE PAGES THAT FOLLOW.
STOCKS AND BONDS HAVE DIFFERENT TYPES OF INVESTMENT RISKS; STOCKS ARE SUBJECT TO
MARKET VOLATILITY AND BONDS ARE SUBJECT TO CREDIT AND INTEREST RATE RISKS.
2 OPPENHEIMER INTERNATIONAL GROWTH FUND
<PAGE>
AN INTERVIEW WITH YOUR FUND'S MANAGER
[Photo of Portfolio Management
Team (l to r)
Frank Jennings
William Wilby
George Evans
(Portfolio Manager)]
How did Oppenheimer International Growth Fund perform during the six months that
ended May 31, 2000?
A. We are pleased to report strong performance for Oppenheimer International
Growth Fund during the reporting period, a time when international markets were
quite volatile. In addition, the Fund's Class A shares were rated 4-stars (****)
overall by Morningstar for the 3-year period ended June 30, 2000, among 1,148
international equity funds.(1)
What happened to markets worldwide during the past six months?
International markets experienced robust gains early in the six-month period,
retreated in the middle months, and advanced again as the period came to a
close. The initial charge was led by high gains among high-tech stocks between
December and March, at which point investors became concerned that the sector
had become too overvalued, too quickly. Investors thus shifted their focus to
other sectors; as a result, foreign markets with large technology weightings
declined noticeably through April. Once the valuations of most price-inflated
technology stocks had returned to more normal levels, foreign markets began to
rebound in May.
(1) Morningstar, Inc. rates mutual funds in broad investment classes, based on
risk adjusted returns after considering sales charges and expenses. Return and
risk are measured as performance above and below 90-day U.S. Treasury bill
returns, respectively. Current star ratings are based on the weighted average of
3- , 5- and 10-year (if applicable) ratings for a fund or class and are subject
to change monthly. Top 10%: 5 stars. Next 22.5%: 4 stars. Middle 35%: 3 stars.
Next 22.5%: 2 stars. Bottom 10%: 1 star. The Fund's Class A shares were rated 4
stars (3-year) among 1,148 international equity funds for the period ended
6/30/00.
3 OPPENHEIMER INTERNATIONAL GROWTH FUND
<PAGE>
AN INTERVIEW WITH YOUR FUND'S MANAGER
"We continue to believe that Europe in particular offers many investment
opportunities."
Did these events affect the Fund?
Technology--particularly in terms of new and emerging technologies and
applications--is a major investment theme for the Fund, and accordingly we had a
sizable allocation to this area. In response to the technology-sector correction
after mid-March, we liquidated a few positions where, despite strong
fundamentals for the underlying companies, valuations could not be justified. In
other cases, we trimmed positions. Overall, the adjustments we made were not
significant.
What was the most significant change you made in the portfolio during this
period?
We increased our exposure to the Japanese equity market. For some time now,
we have felt that Japan has not sufficiently addressed the problems that
depressed its economy and markets in the 1990s. For this reason, we have been
cautious about indiscriminately increasing our allocation to Japan. However, we
have selected Japanese companies that we like based on their individual merits.
We've focused almost exclusively on companies that provide components used in
the manufacture of electronic devices and high-tech consumer products. In
particular, we like businesses that have made major investments in research and
development and have maintained competitive positions over the long term. For
instance, Toshiba Corp., the Fund's largest holding, has long been a leader in
laptop computers. More recently, it has restructured its business to become a
leading manufacturer of flash memory chips, semiconductor chips that retain
information when power is cut and that are ideal for portable products, such as
mobile phones and handheld computers.
Beyond increasing our investment in Japan, we made little change to the
Fund's composition. This reflects our buy-and-hold strategy for managing the
Fund--when we commit to a stock, we expect to own it for what may be years--as
4 OPPENHEIMER INTERNATIONAL GROWTH FUND
<PAGE>
well as our view that, on a fundamental level, little has changed regarding our
holdings in overseas markets since our last report in November.
Throughout the period, we continued to believe that Europe offered many
investment opportunities, despite weakness in the euro. Europe was by far the
Fund's largest regional allocation at the end of the period, and our European
investments cover our major investment themes: mass affluence, new technology,
restructuring and aging. One European stock that we added to the portfolio is
Getronics NV, a Dutch computer services company with a very impressive
management team.
What impact did the weak euro have on the Fund's performance?
The euro's decline posed little challenge to performance, because most of the
Fund's European companies sell their products and services in more than one
currency. For those that export their products, the weak euro has allowed them
to sell at a noticeable discount, making their products more attractive to
buyers. What's more, when these companies make sales in countries with strong
currencies, they receive higher-valued money that can be converted to the
cheaper euro.
What is your outlook for the international markets over the coming months?
There are pockets of opportunity in Japan, and we expect continued strength
in European markets. Throughout Europe, lower rates of inflation, declining
unemployment rates, lower taxes, and easier cross-border flow of workers and
capital have proven beneficial to the economy, business and investors. For the
emerging markets, the picture is mixed but much improved over where it stood two
years ago. Although Asia (outside Japan) remains weak, the outlook for Latin
America, especially Brazil, is positive. In terms of the worldwide markets as a
whole, we see great potential for international investments over the next
several years.
5 OPPENHEIMER INTERNATIONAL GROWTH FUND
<PAGE>
AN INTERVIEW WITH YOUR FUND'S MANAGER
For the immediate future, however, we should point out that we also expect
a continuation of the short-term volatility that embroiled foreign markets in
recent months. As bottom-up investors, we work to reduce the impact of this
volatility by investing not in regions but in what we regard as fundamentally
sound individual companies. We believe it is this company-by-company selectivity
that has made the Fund very competitive and part of The Right Way to Invest.
AVERAGE ANNUAL
TOTAL RETURNS(2)
For the Periods Ended 6/30/00
Class A Since
1-Year Inception
---------------------------
50.13% 23.71%
Class B Since
1-Year Inception
---------------------------
53.11% 24.19%
Class C Since
1-Year Inception
---------------------------
57.10% 24.46%
The Fund's returns include results for periods of exceptional market performance
that are not typical of historical results. You should not expect those growth
rates to continue. Because of ongoing market volatility, the Fund's performance
is subject to substantial short-term fluctuation and current performance may be
less than the results shown.
(2) See Notes on page 8 for further details.
6 OPPENHEIMER INTERNATIONAL GROWTH FUND
<PAGE>
REGIONAL ALLOCATION(3)
[PIE CHART]
Europe 55.8%
Asia 25.9
United States/
Canada 9.1
Latin America 6.1
Emerging
Europe 1.7
Middle East/
Africa 1.4
TOP TEN COUNTRY HOLDINGS(3)
-----------------------------------------------
Japan 22.1%
-----------------------------------------------
Great Britain 18.3
-----------------------------------------------
France 8.9
-----------------------------------------------
Germany 8.6
-----------------------------------------------
The Netherlands 8.0
-----------------------------------------------
United States 7.9
-----------------------------------------------
Brazil 4.5
-----------------------------------------------
Switzerland 4.4
-----------------------------------------------
Spain 2.6
-----------------------------------------------
Australia 1.8
TOP TEN STOCK HOLDINGS(4)
-----------------------------------------------
Toshiba Corp. 6.0%
-----------------------------------------------
Reed International plc 5.3
-----------------------------------------------
Psion plc 3.1
-----------------------------------------------
Getronics NV 3.0
-----------------------------------------------
Jenoptik AG 3.0
-----------------------------------------------
ProSieben Media AG, Preference 2.6
-----------------------------------------------
Alcatel SA, Sponsored ADR 2.4
-----------------------------------------------
Ushio, Inc. 2.2
-----------------------------------------------
Mitsubishi Electric Corp. 2.1
-----------------------------------------------
Sharp Corp. 1.8
(3) Portfolio is subject to change. Percentages are as of May 31, 2000, and are
based on total market value of investments.
(4) Portfolio is subject to change. Percentages are as of May 31, 2000, and are
based on total market value of common stock.
7 OPPENHEIMER INTERNATIONAL GROWTH FUND
<PAGE>
NOTES
FOREIGN INVESTING ENTAILS HIGHER EXPENSES AND RISKS, SUCH AS FOREIGN CURRENCY
FLUCTUATION, ECONOMIC AND POLITICAL INSTABILITY, AND DIFFERENCES IN ACCOUNTING
STANDARDS. IN REVIEWING PERFORMANCE AND RANKINGS, PLEASE REMEMBER THAT PAST
PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. INVESTMENT RETURN AND PRINCIPAL
VALUE OF AN INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR QUARTERLY
UPDATES ON THE FUND'S PERFORMANCE, PLEASE CONTACT YOUR FINANCIAL ADVISOR, CALL
US AT 1.800.525.7048 OR VISIT OUR WEBSITE AT WWW.OPPENHEIMERFUNDS.COM.
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 show the effects 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.
CLASS A shares were first publicly offered on 3/25/96. Unless otherwise noted,
Class A returns include the maximum initial sales charge of 5.75%.
CLASS B shares of the Fund were first publicly offered on 3/25/96. Unless
otherwise noted, Class B returns include the applicable contingent deferred
sales charge of 5% (1-year) and 2% (since inception). 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 3/25/96. 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.
An explanation of the calculation of performance is in the Fund's Statement of
Additional Information.
8 OPPENHEIMER INTERNATIONAL GROWTH FUND
<PAGE>
Financials
9 OPPENHEIMER INTERNATIONAL GROWTH FUND
<PAGE>
STATEMENT OF INVESTMENTS May 31, 2000 / Unaudited
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
-------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS--92.5%
-------------------------------------------------------------------------------------------------------
CAPITAL GOODS--21.5%
-------------------------------------------------------------------------------------------------------
AEROSPACE/DEFENSE--1.6%
Embraer-Empresa Brasileira de Aeronautica SA, Preference 2,735,000 $12,360,312
-------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--9.8%
Halma plc 2,032,100 2,764,016
-------------------------------------------------------------------------------------------------------
Mitsubishi Electric Corp. 1,496,000 14,699,494
-------------------------------------------------------------------------------------------------------
Toshiba Corp. 4,376,000 42,266,450
-------------------------------------------------------------------------------------------------------
Ushio, Inc. 673,000 15,250,708
----------
74,980,668
-------------------------------------------------------------------------------------------------------
INDUSTRIAL SERVICES--4.7%
3i Group plc 602,300 11,397,264
-------------------------------------------------------------------------------------------------------
Bellsystem 24, Inc. 1,700 969,399
-------------------------------------------------------------------------------------------------------
Boskalis Westminster 670,403 11,470,951
-------------------------------------------------------------------------------------------------------
Falck AS 20,000 3,018,446
-------------------------------------------------------------------------------------------------------
Fomento de Construccionse y Contrates SA 381,600 8,493,500
-------------------------------------------------------------------------------------------------------
ICTS International NV(1) 165,000 948,750
----------
36,298,310
-------------------------------------------------------------------------------------------------------
MANUFACTURING--5.4%
GSI Lumonics, Inc.(1) 448,000 9,576,000
-------------------------------------------------------------------------------------------------------
HAMAMATSU PHOTONICS K.K. 166,000 9,065,057
-------------------------------------------------------------------------------------------------------
Jenoptik AG 693,300 21,217,892
-------------------------------------------------------------------------------------------------------
Sauer, Inc. 150,000 1,293,750
----------
41,152,699
-------------------------------------------------------------------------------------------------------
COMMUNICATION SERVICES--4.9%
-------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS: LONG DISTANCE--1.3%
Nippon Telegraph & Telephone Corp. 300 3,566,287
-------------------------------------------------------------------------------------------------------
Toyo Communications Equipment Co. Ltd. 426,000 6,207,513
---------
9,773,800
-------------------------------------------------------------------------------------------------------
TELEPHONE UTILITIES--3.3%
CCT Telecom Holdings Ltd.(1) 6,698,000 1,719,199
-------------------------------------------------------------------------------------------------------
DDI Corp. 830 8,479,220
-------------------------------------------------------------------------------------------------------
Tele Norte Leste Participacoes SA (Telemar) 532,852,000 8,318,971
-------------------------------------------------------------------------------------------------------
Tele Norte Leste Participacoes SA (Telemar), Preference 62,391,641 1,230,402
-------------------------------------------------------------------------------------------------------
Tele Norte Leste Participacoes SA, ADR 88,250 1,731,906
-------------------------------------------------------------------------------------------------------
Videsh Sanchar Nigam Ltd., GDR(2) 234,000 3,650,400
----------
25,130,098
-------------------------------------------------------------------------------------------------------
Telecommunications: Wireless--0.3%
Telesp Celular Participacoes SA, Preference(1) 171,311,220 2,618,232
</TABLE>
10 OPPENHEIMER INTERNATIONAL GROWTH FUND
<PAGE>
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
-------------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER CYCLICALS--12.6%
-------------------------------------------------------------------------------------------------------
AUTOS & HOUSING--4.1%
Aucnet, Inc. 141,330 $6,680,935
-------------------------------------------------------------------------------------------------------
Brazil Realty SA, GDR(3) 121,300 1,546,575
-------------------------------------------------------------------------------------------------------
Ducati Motor Holding SpA(1) 1,634,900 4,199,891
-------------------------------------------------------------------------------------------------------
IRSA Inversiones y Representaciones SA 1,363,718 3,382,359
-------------------------------------------------------------------------------------------------------
Porsche AG, Preference 4,100 10,669,366
-------------------------------------------------------------------------------------------------------
Solidere, GDR(1),(2) 759,300 5,258,152
----------
31,737,278
-------------------------------------------------------------------------------------------------------
CONSUMER SERVICES--0.8%
Brunel International NV 66,900 434,301
-------------------------------------------------------------------------------------------------------
Prosegur, CIA de Seguridad SA 444,400 5,625,664
----------
6,059,965
-------------------------------------------------------------------------------------------------------
LEISURE & ENTERTAINMENT--1.2%
Granada Group plc 1,007,449 8,929,596
-------------------------------------------------------------------------------------------------------
MEDIA--6.0%
Naspers Ltd., N Shares 581,800 5,070,389
-------------------------------------------------------------------------------------------------------
Reed International plc 5,675,300 37,494,290
-------------------------------------------------------------------------------------------------------
Singapore Press Holdings Ltd. 214,000 3,222,594
----------
45,787,273
-------------------------------------------------------------------------------------------------------
TEXTILE/APPAREL & HOME FURNISHINGS--0.5%
Gucci Group NV, NY Registered Shares 41,000 3,510,625
-------------------------------------------------------------------------------------------------------
CONSUMER STAPLES--12.6%
-------------------------------------------------------------------------------------------------------
BROADCASTING--6.4%
Canal Plus 45,800 8,664,884
-------------------------------------------------------------------------------------------------------
Carlton Communications plc 1,035,000 12,283,295
-------------------------------------------------------------------------------------------------------
Grupo Televisa SA, Sponsored GDR(1) 165,000 9,188,437
-------------------------------------------------------------------------------------------------------
ProSieben Media AG, Preference 194,200 18,442,351
----------
48,578,967
-------------------------------------------------------------------------------------------------------
ENTERTAINMENT--3.9%
Imagineer Co. Ltd. 75,000 1,574,182
-------------------------------------------------------------------------------------------------------
Infogrames Entertainment SA(1) 113,500 3,294,635
-------------------------------------------------------------------------------------------------------
Nintendo Co. Ltd. 84,500 12,556,304
-------------------------------------------------------------------------------------------------------
TelePizza SA(1) 1,011,600 5,769,671
-------------------------------------------------------------------------------------------------------
Village Roadshow Ltd., Cl. A, Preference 6,410,185 6,600,904
----------
29,795,696
</TABLE>
11 OPPENHEIMER INTERNATIONAL GROWTH FUND
<PAGE>
STATEMENT OF INVESTMENTS Unaudited / Continued
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
-------------------------------------------------------------------------------
<S> <C> <C>
HOUSEHOLD GOODS--0.9%
Wella AG, Preference 208,000 $ 6,558,573
--------------------------------------------------------------------------------
TOBACCO--1.4%
Cie Financiere Richemont AG, A Units 4,350 10,778,761
--------------------------------------------------------------------------------
ENERGY--0.4%
--------------------------------------------------------------------------------
ENERGY SERVICES--0.4%
Expro International Group plc 605,000 3,190,560
--------------------------------------------------------------------------------
FINANCIAL--5.3%
--------------------------------------------------------------------------------
BANKS--3.3%
Banco Espirito Santo SA 132,500 3,090,445
--------------------------------------------------------------------------------
Espirito Santo Financial Group, ADR 234,700 4,224,600
--------------------------------------------------------------------------------
Julius Baer Holding AG, Cl. B 2,835 10,119,027
--------------------------------------------------------------------------------
Unibanco-Uniao de Bancos Brasileiros SA,
Sponsored GDR 307,300 7,432,819
------------
24,866,891
--------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL--1.3%
ICICI Ltd., Sponsored ADR 130,000 2,535,000
--------------------------------------------------------------------------------
ICICI Ltd., Sponsored ADR 236,400 4,609,800
--------------------------------------------------------------------------------
Magnus Holding NV 574,900 2,772,444
------------
9,917,244
--------------------------------------------------------------------------------
INSURANCE--0.7%
AXA SA 29,500 4,322,611
--------------------------------------------------------------------------------
Ockham Holdings plc 1,460,000 1,353,002
------------
5,675,613
--------------------------------------------------------------------------------
HEALTHCARE--13.5%
--------------------------------------------------------------------------------
HEALTHCARE/DRUGS--8.7%
Actelion Ltd.(1) 10,500 2,973,451
--------------------------------------------------------------------------------
Biocompatibles International plc(1) 2,911,698 12,316,486
--------------------------------------------------------------------------------
Elan Corp. plc, ADR(1) 200,940 7,999,924
--------------------------------------------------------------------------------
FUJISAWA PHARMACEUTICAL Co. Ltd. 254,000 9,388,623
--------------------------------------------------------------------------------
Genset, Sponsored ADR(1) 310,700 7,728,662
--------------------------------------------------------------------------------
GPC Biotech AG(1) 38,600 877,758
--------------------------------------------------------------------------------
NeuroSearch AS(1) 21,600 1,556,177
--------------------------------------------------------------------------------
Nicox SA(1) 114,300 7,844,135
--------------------------------------------------------------------------------
Oxford GlycoSciences plc(1) 97,500 2,113,132
--------------------------------------------------------------------------------
Pliva d.d., Sponsored GDR(2) 578,250 6,418,575
--------------------------------------------------------------------------------
Serono SA 8,800 7,683,776
------------
66,900,699
</TABLE>
12 OPPENHEIMER INTERNATIONAL GROWTH FUND
<PAGE>
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
--------------------------------------------------------------------------------
<S> <C> <C>
HEALTHCARE/SUPPLIES & SERVICES--4.8%
Jomed NV(1) 71,500 $ 2,741,888
--------------------------------------------------------------------------------
Nichii Gakkan Co. 95,375 5,730,915
--------------------------------------------------------------------------------
Novogen Ltd.(1) 2,004,300 3,544,705
--------------------------------------------------------------------------------
Ortivus AB, Cl. B(4) 551,400 2,018,884
--------------------------------------------------------------------------------
PowderJect Pharmaceuticals plc(1) 1,356,700 7,665,309
--------------------------------------------------------------------------------
SkyePharma plc(1) 7,722,300 10,821,114
--------------------------------------------------------------------------------
SSL International plc 353,000 3,923,598
------------
36,446,413
--------------------------------------------------------------------------------
TECHNOLOGY--20.7%
--------------------------------------------------------------------------------
COMPUTER SERVICES--6.5%
Cap Gemini SA 47,000 8,756,789
--------------------------------------------------------------------------------
Computer Services Solutions Holding NV 420,400 10,858,129
--------------------------------------------------------------------------------
Getronics NV 1,284,651 21,385,367
--------------------------------------------------------------------------------
Unit 4(1) 220,000 8,732,398
------------
49,732,683
--------------------------------------------------------------------------------
COMPUTER SOFTWARE--4.9%
Lernout & Hauspie Speech Products NV(1) 156,600 6,547,837
--------------------------------------------------------------------------------
Misys plc 626,033 5,399,171
--------------------------------------------------------------------------------
Psion plc 2,635,500 21,587,265
--------------------------------------------------------------------------------
Solution 6 Holdings Ltd.(1) 2,286,900 3,941,428
------------
37,475,701
--------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT--3.3%
Alcatel SA, Sponsored ADR 315,300 17,203,556
--------------------------------------------------------------------------------
L.M. Ericsson Telephone Co., ADR, Cl. B 384,800 7,888,400
------------
25,091,956
--------------------------------------------------------------------------------
ELECTRONICS--6.0%
Hoya Corp. 132,000 12,246,854
--------------------------------------------------------------------------------
Sharp Corp. 722,000 13,008,405
--------------------------------------------------------------------------------
Sony Corp., New(1) 60,370 5,466,520
--------------------------------------------------------------------------------
Sony Corp. 40,370 3,655,514
--------------------------------------------------------------------------------
STMicroelectronics NV, NY Registered Shares 150,000 8,981,250
--------------------------------------------------------------------------------
Thomson Multimedia(1) 23,750 2,455,871
------------
45,814,414
--------------------------------------------------------------------------------
TRANSPORTATION--1.0%
--------------------------------------------------------------------------------
SHIPPING--1.0%
MIF Ltd.(1) 204,400 2,052,713
--------------------------------------------------------------------------------
Smit Internationale NV, CVA 241,315 5,684,405
------------
7,737,118
------------
Total Common Stocks (Cost $661,291,386) 706,900,145
</TABLE>
13 OPPENHEIMER INTERNATIONAL GROWTH FUND
<PAGE>
STATEMENT OF INVESTMENTS Unaudited / Continued
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
--------------------------------------------------------------------------------
<S> <C> <C>
PREFERRED STOCKS--1.5%
Ceres, Inc., Preferred(3) 600,000 $ 2,400,000
--------------------------------------------------------------------------------
Fresenius Medical Care AG, Preferred 191,000 8,856,670
------------
Total Preferred Stocks (Cost $10,421,576) 11,256,670
UNITS
--------------------------------------------------------------------------------
RIGHTS, WARRANTS AND CERTIFICATES--0.0%
Tele Norte Leste Participacoes SA
(Telemar) Rts., Exp. 6/9/00 (Cost $0) 677,587 1,303
PRINCIPAL
AMOUNT
--------------------------------------------------------------------------------
REPURCHASE AGREEMENTS--7.5%
Repurchase agreement with Banc One Capital
Markets, Inc., 6.33%, dated 5/31/00, to be
repurchased at $57,710,146 on 6/1/00,
collateralized by U.S. Treasury Nts., 4.25%-7%,
12/31/00-10/15/06, with a value of $46,151,159
and U.S. Treasury Bonds, 5.25%-12%,
11/15/03-11/15/28, with a value of $12,743,091
(Cost $57,700,000) $57,700,000 57,700,000
--------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $729,412,962) 101.5% 775,858,118
--------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS (1.5) (11,481,979)
--------------------------------
NET ASSETS 100.0% $764,376,139
--------------------------------
--------------------------------
</TABLE>
FOOTNOTES TO STATEMENT OF INVESTMENTS
(1) Non-income-producing security.
(2) Represents a security sold under Rule 144A, which is 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 $15,327,127 or 2.01% of the Fund's net
assets as of May 31, 2000.
(3) Identifies issues considered to be illiquid or restricted--See Note 6 of
Notes to Financial Statements.
(4) Affiliated company. Represents ownership of at least 5% of the voting
securities of the issuer, and is or was an affiliate, as defined in the
Investment Company Act of 1940, at or during the period ended May 31, 2000. No
securities of affiliated companies were held by the Fund as of May 31, 2000.
Transactions during the period in which the issuer was an affiliate are as
follows:
<TABLE>
<CAPTION>
SHARES GROSS GROSS SHARES
NOVEMBER 30, 1999 ADDITIONS REDUCTIONS MAY 31, 2000
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Ortivus AB, Cl. B* 551,400 -- -- 551,400
*Not an affiliate as of May 31, 2000.
</TABLE>
14 OPPENHEIMER INTERNATIONAL GROWTH FUND
<PAGE>
DISTRIBUTION OF INVESTMENTS REPRESENTING GEOGRAPHIC DIVERSIFICATION, AS A
PERCENTAGE OF TOTAL INVESTMENTS AT VALUE, IS AS FOLLOWS:
<TABLE>
<CAPTION>
GEOGRAPHICAL DIVERSIFICATION MARKET VALUE PERCENT
--------------------------------------------------------------------------------
<S> <C> <C>
Japan $170,812,375 22.1%
Great Britain 141,238,097 18.3
France 69,252,394 8.9
Germany 66,622,610 8.6
The Netherlands 62,286,747 8.0
United States 61,393,750 7.9
Brazil 35,240,521 4.5
Switzerland 34,296,903 4.4
Spain 19,888,835 2.6
Australia 14,087,036 1.8
India 10,795,200 1.4
Sweden 9,907,284 1.3
Canada 9,576,000 1.2
Mexico 9,188,438 1.2
Ireland 7,999,924 1.0
Italy 7,710,516 1.0
Portugal 7,315,045 0.9
Belgium 6,547,838 0.8
Croatia 6,418,575 0.8
Lebanon 5,258,153 0.7
South Africa 5,070,389 0.7
Denmark 4,574,623 0.6
Argentina 3,382,359 0.4
Singapore 3,222,594 0.4
Norway 2,052,713 0.3
Hong Kong 1,719,199 0.2
------------------------------
TOTAL $775,858,118 100.0%
------------------------------
------------------------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
15 OPPENHEIMER INTERNATIONAL GROWTH FUND
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES Unaudited
<TABLE>
<CAPTION>
May 31, 2000
------------------------------------------------------------------------------------------------
<S> <C>
ASSETS
Investments, at value (cost $729,412,962)--see accompanying statement $775,858,118
------------------------------------------------------------------------------------------------
Cash 385,495
------------------------------------------------------------------------------------------------
Unrealized appreciation on foreign currency contracts 28,526
------------------------------------------------------------------------------------------------
Receivables and other assets:
Shares of beneficial interest sold 9,164,372
Investments sold 8,353,346
Interest and dividends 1,847,476
Other 27,713
-----------
Total assets 795,665,046
------------------------------------------------------------------------------------------------
LIABILITIES
Unrealized depreciation on foreign currency contracts 4,826
------------------------------------------------------------------------------------------------
Payables and other liabilities:
Shares of beneficial interest redeemed 22,638,055
Investments purchased 7,796,376
Distribution and service plan fees 324,355
Transfer and shareholder servicing agent fees 188,005
Trustees' compensation 66,584
Other 270,706
-----------
Total liabilities 31,288,907
------------------------------------------------------------------------------------------------
NET ASSETS $764,376,139
-----------
-----------
------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
Paid-in capital $593,739,469
------------------------------------------------------------------------------------------------
Undistributed net investment income 547,717
------------------------------------------------------------------------------------------------
Accumulated net realized gain on investments and foreign currency transactions 123,721,074
------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of assets and
liabilities denominated in foreign currencies 46,367,879
------------
NET ASSETS $764,376,139
------------
------------
------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$405,053,349 and 18,222,434 shares of beneficial interest outstanding) $22.23
Maximum offering price per share (net asset value plus sales charge
of 5.75% of offering price) $23.59
------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred
salescharge) and offering price per share (based on net assets of $266,805,195
and 12,352,019 shares of beneficial interest outstanding) $21.60
------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $92,517,595
and 4,276,762 shares of beneficial interest outstanding) $21.63
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
16 OPPENHEIMER INTERNATIONAL GROWTH FUND
<PAGE>
STATEMENT OF OPERATIONS Unaudited
<TABLE>
<CAPTION>
For the Six Months Ended May 31, 2000
------------------------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME
Dividends (net of foreign withholding taxes of $514,077) $6,302,432
------------------------------------------------------------------------------------------------
Interest 632,737
----------
Total income 6,935,169
------------------------------------------------------------------------------------------------
EXPENSES
Management fees 2,741,696
------------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 460,327
Class B 1,285,994
Class C 409,107
------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees 851,522
------------------------------------------------------------------------------------------------
Custodian fees and expenses 334,647
------------------------------------------------------------------------------------------------
Trustees' compensation 17,068
------------------------------------------------------------------------------------------------
Other 232,878
Total expenses 6,333,239
Less expenses paid indirectly (4,852)
---------
Net expenses 6,328,387
------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 606,782
------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments 131,883,991
Foreign currency transactions (7,638,285)
-----------
Net realized gain 124,245,706
------------------------------------------------------------------------------------------------
Net change in unrealized depreciation on:
Investments (45,586,743)
Translation of assets and liabilities denominated in foreign currencies
(21,583,013)
Net change -----------
(67,169,756)
-----------
Net realized and unrealized gain 57,075,950
------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $57,682,732
-----------
-----------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
17 OPPENHEIMER INTERNATIONAL GROWTH FUND
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS YEAR
ENDED ENDED
MAY 31, 2000 NOVEMBER 30,
(UNAUDITED) 1999
--------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
Net investment income (loss) $ 606,782 $ (1,941,583)
--------------------------------------------------------------------------------------------------
Net realized gain 124,245,706 7,753,998
--------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation (67,169,756) 112,491,047
------------------------------
Net increase in net assets resulting from operations 57,682,732 118,303,462
--------------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income:
Class A -- (1,612,367)
Class B -- (254,658)
Class C -- (67,795)
--------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (2,338,271) (9,482,138)
Class B (1,929,769) (7,304,835)
Class C (575,074) (1,902,453)
--------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
Net increase (decrease) in net assets resulting from beneficial
interest transactions:
Class A 168,718,276 (26,426,483)
Class B 71,412,291 (3,877,361)
Class C 37,161,717 1,107,177
--------------------------------------------------------------------------------------------------
NET ASSETS
Total increase 330,131,902 68,482,549
--------------------------------------------------------------------------------------------------
Beginning of period 434,244,237 365,761,688
------------------------------
End of period [including undistributed (overdistributed)
net investment income of $547,717 and $(59,065), respectively] $764,376,139 $434,244,237
------------------------------
------------------------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
18 OPPENHEIMER INTERNATIONAL GROWTH FUND
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
SIX MONTHS YEAR
ENDED ENDED
MAY 31, 2000 NOVEMBER 30,
CLASS A (UNAUDITED) 1999 1998 1997 1996(1)
<S> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
Net asset value, beginning of period $19.22 $15.11 $14.37 $11.74 $10.00
------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .02 (.02) .05 (.05)(2) (.01)
Net realized and unrealized gain 3.20 5.02 .91 2.68 (2) 1.75
---------------------------------------------------------------------
Total income from investment
operations 3.22 5.00 .96 2.63 1.74
------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- (.13) -- -- --
Distributions from net realized gain (.21) (.76) (.22) -- --
---------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.21) (.89) (.22) -- --
------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $22.23 $19.22 $15.11 $14.37 $11.74
---------------------------------------------------------------------
---------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(3) 16.85% 35.31% 6.78% 22.40% 17.40%
------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $405,053 $208,981 $186,859 $122,720 $16,918
------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $369,851 $180,719 $175,022 $ 66,156 $ 8,992
------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(4)
Net investment income (loss) 0.55% (0.15)% 0.44% (0.36)% (0.26)%
Expenses 1.43% 1.55% 1.40%(5) 1.78%(5) 1.88%(5)
------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 38% 75% 82% 64% 43%
</TABLE>
(1) For the period from March 25, 1996 (commencement of operations) to November
30, 1996.
(2) Based on average shares outstanding for the period.
(3) Assumes a $1,000 hypothetical initial investment on the business day before
the first day of the fiscal period (or commencement of operations), with all
dividends and distributions reinvested in additional shares on the reinvestment
date, and redemption at the net asset value calculated on the last business day
of the fiscal period. Sales charges are not reflected in the total returns.
Total returns are not annualized for periods of less than one full year.
(4) Annualized for periods of less than one full year.
(5) Expense ratio reflects the effect of expenses paid indirectly by the Fund.
(6) The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities owned
during the period. Securities with a maturity or expiration date at the time of
acquisition of one year or less are excluded from the calculation. Purchases and
sales of investment securities (excluding short-term securities) for the period
ended May 31, 2000, were $450,423,337 and $255,660,858, respectively.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
19 OPPENHEIMER INTERNATIONAL GROWTH FUND
<PAGE>
FINANCIAL HIGHLIGHTS Continued
<TABLE>
<CAPTION>
SIX MONTHS YEAR
ENDED ENDED
MAY 31, 2000 NOVEMBER 30,
CLASS B (UNAUDITED) 1999 1998 1997 1996(1)
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA
Net asset value, beginning of period $18.75 $14.76 $14.15 $11.65 $10.00
-----------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.01) (.14) (.03) (.12)(2) (.10)
Net realized and unrealized gain 3.07 4.92 .86 2.62 (2) 1.75
----------------------------------------------------------
Total income from investment
operations 3.06 4.78 .83 2.50 1.65
-----------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- (.03) --
Distributions from net realized gain (.21) (.76) (.22) -- --
----------------------------------------------------------
Total dividends and/or distributions
to shareholders (.21) (.79) (.22) -- --
-----------------------------------------------------------------------------------------------------------------
Net asset value, end of period $21.60 $18.75 $14.76 $14.15 $11.65
----------------------------------------------------------
----------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(3) 16.42% 34.32% 5.95% 21.46% 16.50%
-----------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $266,805 $176,021 $142,127 $90,565 $8,673
-----------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $257,601 $145,203 $125,772 $45,553 $3,628
-----------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(4)
Net investment loss (0.27)% (0.91)% (0.34)% (1.14)% (1.46)%
Expenses 2.18% 2.31% 2.18%5 2.56%(5) 2.84%(5)
-----------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 38% 75% 82% 64% 43%
</TABLE>
(1) For the period from March 25, 1996 (commencement of operations) to November
30, 1996
(2) Based on average shares outstanding for the period.
(3) Assumes a $1,000 hypothetical initial investment on the business day before
the first day of the fiscal period (or commencement of operations), with all
dividends and distributions reinvested in additional shares on the reinvestment
date, and redemption at the net asset value calculated on the last business day
of the fiscal period. Sales charges are not reflected in the total returns.
Total returns are not annualized for periods of less than one full year.
(4) Annualized for periods of less than one full year.
(5) Expense ratio reflects the effect of expenses paid indirectly by the Fund.
(6) The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities owned
during the period. Securities with a maturity or expiration date at the time of
acquisition of one year or less are excluded from the calculation. Purchases and
sales of investment securities (excluding short-term securities) for the period
ended May 31, 2000, were $450,423,337 and $255,660,858, respectively.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
20 OPPENHEIMER INTERNATIONAL GROWTH FUND
<PAGE>
<TABLE>
<CAPTION>
SIX MONTHS YEAR
ENDED ENDED
MAY 31, 2000 NOVEMBER 30,
CLASS C (UNAUDITED) 1999 1998 1997 1996(1)
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA
Net asset value, beginning of period $18.77 $14.78 $14.17 $11.66 $10.00
-----------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .02 (.13) (.03) (.13)(2) (.09)
Net realized and unrealized gain 3.05 4.91 .86 2.64 (2) 1.75
----------------------------------------------------------
Total income from investment
operations 3.07 4.78 .83 2.51 1.66
-----------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- (.03) -- -- --
Distributions from net realized gain (.21) (.76) (.22) -- --
----------------------------------------------------------
Total dividends and/or distributions
to shareholders (.21) (.79) (.22) -- --
-----------------------------------------------------------------------------------------------------------------
Net asset value, end of period $21.63 $18.77 $14.78 $14.17 $11.66
----------------------------------------------------------
----------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(3) 16.46% 34.28% 5.94% 21.53% 16.60%
-----------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $92,518 $49,242 $36,776 $21,908 $2,149
-----------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $82,043 $39,641 $32,460 $10,864 $ 938
-----------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(4)
Net investment loss (0.12)% (0.92)% (0.34)% (1.18)% (1.48)%
Expenses 2.17% 2.32% 2.17%(5) 2.55%(5) 2.82%(5)
-----------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 38% 75% 82% 64% 43%
</TABLE>
(1) For the period from March 25, 1996 (commencement of operations) to November
30, 1996.
(2) Based on average shares outstanding for the period.
(3) Assumes a $1,000 hypothetical initial investment on the business day before
the first day of the fiscal period (or commencement of operations), with all
dividends and distributions reinvested in additional shares on the reinvestment
date, and redemption at the net asset value calculated on the last business day
of the fiscal period. Sales charges are not reflected in the total returns.
Total returns are not annualized for periods of less than one full year.
(4) Annualized for periods of less than one full year.
(5) Expense ratio reflects the effect of expenses paid indirectly by the Fund.
(6) The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities owned
during the period. Securities with a maturity or expiration date at the time of
acquisition of one year or less are excluded from the calculation. Purchases and
sales of investment securities (excluding short-term securities) for the period
ended May 31, 2000, were $450,423,337 and $255,660,858, respectively.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
21 OPPENHEIMER INTERNATIONAL GROWTH FUND
<PAGE>
NOTES TO FINANCIAL STATEMENTS Unaudited
-------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer International Growth Fund (the Fund) is registered under the
Investment Company Act of 1940, as amended, as an open-end management investment
company. The Fund's investment objective is to seek long-term capital
appreciation. The Fund's investment advisor is OppenheimerFunds, Inc. (the
Manager).
The Fund offers Class A, Class B and Class C shares. Class A shares are
sold at their offering price, which is normally net asset value plus an initial
sales charge. Class B and Class C shares are sold without an initial sales
charge but may be subject to a contingent deferred sales charge (CDSC). All
classes of shares have identical rights to earnings, assets and voting
privileges, except that each class has its own expenses directly attributable to
that class and exclusive voting rights with respect to matters affecting that
class. Classes A, B and C shares have separate distribution and/or service
plans. Class B shares will automatically convert to Class A shares six years
after the date of purchase. The following is a summary of significant accounting
policies consistently followed by the Fund.
-------------------------------------------------------------------------------
SECURITIES VALUATION. Securities for which quotations are readily available are
valued at the last sale price, or if in the absence of a sale, 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 (including
restricted securities) for which quotations are not readily available are valued
primarily using dealer-supplied valuations, a portfolio pricing service
authorized by the Board of Trustees, or at their fair value. Fair value is
determined in good faith under consistently applied procedures under the
supervision of the Board of Trustees. Foreign currency contracts are valued
based on the closing prices of the forward currency contract rates in the London
foreign exchange markets on a daily basis as provided by a reliable bank, dealer
or pricing service. Short-term "money market type" debt securities with
remaining maturities of sixty days or less are valued at cost (or last
determined market value) and adjusted for amortization or accretion to maturity
of any premium or discount.
-------------------------------------------------------------------------------
FOREIGN CURRENCY TRANSLATION. The accounting records of the Fund are maintained
in U.S. dollars. Prices of securities denominated in foreign currencies are
translated into U.S. dollars at the closing rates of exchange. Amounts related
to the purchase and sale of foreign securities and investment income are
translated at the rates of exchange prevailing on the respective dates of such
transactions. The effect of changes in foreign currency exchange rates on
investments is separately identified from the fluctuations arising from changes
in market values of securities held and reported with all other foreign currency
gains and losses in the Fund's Statement of Operations.
-------------------------------------------------------------------------------
REPURCHASE AGREEMENTS. The Fund requires the custodian to take possession, to
have legally segregated in the Federal Reserve Book Entry System or to have
segregated within the custodian's vault, all securities held as collateral for
repurchase agreements. The market value of the underlying securities is required
to be at least 102% of the resale price at
22 OPPENHEIMER INTERNATIONAL GROWTH FUND
<PAGE>
the time of purchase. If the seller of the agreement defaults and the value
of the collateral declines, or if the seller enters an insolvency proceeding,
realization of the value of the collateral by the Fund may be delayed or
limited.
-------------------------------------------------------------------------------
ALLOCATION OF INCOME, EXPENSES, GAINS AND LOSSES. Income, expenses (other than
those attributable to a specific class), gains and losses are allocated daily 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 continue to comply with provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income, including any net realized gain on
investments not offset by loss carryovers, to shareholders. Therefore, no
federal income or excise tax provision is required.
-------------------------------------------------------------------------------
TRUSTEES' COMPENSATION. The Fund has adopted an unfunded retirement plan for the
Fund's independent Board of Trustees. Benefits are based on years of service and
fees paid to each trustee during the years of service. During the six months
ended May 31, 2000, a provision of $7,040 was made for the Fund's projected
benefit obligations and payments of $1,627 were made to retired trustees,
resulting in an accumulated liability of $64,478 as of May 31, 2000.
The Board of Trustees has adopted a deferred compensation plan for
independent trustees that enables trustees to elect to defer receipt of all or a
portion of annual compensation they are entitled to receive from the Fund. Under
the plan, the compensation deferred is periodically adjusted as though an
equivalent amount had been invested for the Board of Trustees in shares of one
or more Oppenheimer funds selected by the trustee. The amount paid to the Board
of Trustees under the plan will be determined based upon the performance of the
selected funds. 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.
-------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations,
are recorded on the ex-dividend date.
-------------------------------------------------------------------------------
CLASSIFICATION OF DISTRIBUTIONS TO SHAREHOLDERS. Net investment income (loss)
and net realized gain (loss) may differ for financial statement and tax purposes
primarily because of the recognition of certain foreign currency gains (losses)
as ordinary income (loss) for tax purposes. The character of distributions made
during the year from net investment income or net realized gains may differ from
its ultimate characterization for federal income tax purposes. Also, due to
timing of dividend distributions, the fiscal year in which amounts are
distributed may differ from the fiscal year in which the income or realized gain
was recorded by the Fund.
23 OPPENHEIMER INTERNATIONAL GROWTH FUND
<PAGE>
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
--------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
Expense Offset Arrangements. Expenses paid indirectly represent a reduction of
custodian fees for earnings on cash balances maintained by the Fund.
--------------------------------------------------------------------------------
OTHER. Investment transactions are accounted for as of trade date and dividend
income is recorded on the ex-dividend date. Certain dividends from foreign
securities will be recorded as soon as the Fund is informed of the dividend if
such information is obtained subsequent to the ex-dividend date. Realized gains
and losses on investments and unrealized appreciation and depreciation are
determined on an identified cost basis, which is the same basis used for federal
income tax purposes.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of income and expenses during the reporting
period. Actual results could differ from those estimates.
--------------------------------------------------------------------------------
2. SHARES OF BENEFICIAL INTEREST
The fund has authorized an unlimited number of no par value shares of beneficial
interest of each class. Transactions in shares of beneficial interest were as
follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED MAY 31, 2000 YEAR ENDED NOVEMBER 30, 1999
SHARES AMOUNT SHARES AMOUNT
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CLASS A
Sold 39,497,174 $ 959,652,415 28,386,105 $ 443,398,379
Dividends and/or
distributions reinvested 107,443 2,137,023 755,138 10,481,320
Redeemed (32,257,334) (793,071,162) (30,634,400) (480,306,182)
--------------------------------------------------------------
Net increase (decrease) 7,347,283 $ 168,718,276 (1,493,157) $ (26,426,483)
--------------------------------------------------------------
--------------------------------------------------------------
---------------------------------------------------------------------------------------------
CLASS B
Sold 5,504,402 $ 132,529,185 5,389,439 $ 81,564,985
Dividends and/or
distributions reinvested 95,982 1,861,952 535,401 7,308,215
Redeemed (2,636,535) (62,978,846) (6,163,506) (92,750,561)
--------------------------------------------------------------
Net increase (decrease) 2,963,849 $ 71,412,291 (238,666) $ (3,877,361)
--------------------------------------------------------------
--------------------------------------------------------------
---------------------------------------------------------------------------------------------
CLASS C
Sold 9,435,417 $ 224,669,624 9,122,829 $ 139,300,660
Dividends and/or
distributions reinvested 27,786 539,702 137,399 1,876,855
Redeemed (7,809,879) (188,047,609) (9,124,669) (140,070,338)
--------------------------------------------------------------
Net increase 1,653,324 $ 37,161,717 135,559 $ 1,107,177
--------------------------------------------------------------
--------------------------------------------------------------
</TABLE>
24 OPPENHEIMER INTERNATIONAL GROWTH FUND
<PAGE>
--------------------------------------------------------------------------------
3. UNREALIZED GAINS AND LOSSES ON INVESTMENTS
As of May 31, 2000, net unrealized appreciation on investments of $46,445,157
was composed of gross appreciation of $114,206,865, and gross depreciation of
$67,761,708.
--------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
MANAGEMENT FEES. Management fees paid to the Manager were in accordance with the
investment advisory agreement with the Fund which provides for a fee of 0.80% of
the first $250 million of average annual net assets of the Fund, 0.77% of the
next $250 million, 0.75% of the next $500 million, 0.69% of the next $1 billion,
and 0.67% of average annual net assets in excess of $2 billion. The Fund's
management fee for the six months ended May 31, 2000, was 0.77% of average
annual net assets for each class of shares, annualized for periods of less than
one full year.
--------------------------------------------------------------------------------
TRANSFER AGENT FEES. OppenheimerFunds Services (OFS), a division of the Manager,
is the transfer and shareholder servicing agent for the Fund and for other
Oppenheimer funds. OFS's total costs of providing such services are allocated
ratably to these funds.
--------------------------------------------------------------------------------
DISTRIBUTION AND SERVICE PLAN FEES. Under its General Distributor's Agreement
with the Manager, the Distributor acts as the Fund's principal underwriter in
the continuous public offering of the different classes of shares of the Fund.
The compensation paid to (or retained by) the Distributor from the sale of
shares or on the redemption of shares is shown in the table below for the period
indicated:
<TABLE>
<CAPTION>
AGGREGATE CLASS A COMMISSIONS COMMISSIONS COMMISSIONS
FRONT-END FRONT-END ON CLASS A ON CLASS B ON CLASS C
SALES CHARGES SALES CHARGES SHARES SHARES SHARES
SIX MONTHS ON CLASS A RETAINED BY ADVANCED BY ADVANCED BY ADVANCED BY
ENDED SHARES DISTRIBUTOR DISTRIBUTOR(1) DISTRIBUTOR(1) DISTRIBUTOR(1)
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
May 31, 2000 $1,121,742 $269,885 $299,698 $1,639,512 $355,466
</TABLE>
(1) The Distributor advances commission payments to dealers for certain sales of
Class A shares and for sales of Class B and Class C shares from its own
resources at the time of sale.
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C
CONTINGENT DEFERRED CONTINGENT DEFERRED CONTINGENT DEFERRED
SIX MONTHS SALES CHARGES SALES CHARGES SALES CHARGES
ENDED RETAINED BY DISTRIBUTOR RETAINED BY DISTRIBUTOR RETAINED BY DISTRIBUTOR
-----------------------------------------------------------------------------------------
<S> <C> <C> <C>
May 31, 2000 $18,107 $160,362 $17,465
</TABLE>
The Fund has adopted a Service Plan for Class A shares and Distribution and
Service Plans for Class B and Class C shares under Rule 12b-1 of the Investment
Company Act. Under those plans the Fund pays the Distributor for all or a
portion of its costs incurred in connection with the distribution and/or
servicing of the shares of the particular class.
25 OPPENHEIMER INTERNATIONAL GROWTH FUND
<PAGE>
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
--------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued
CLASS A SERVICE PLAN FEES. Under the Class A service plan, the Distributor
currently uses the fees it receives from the Fund to pay brokers, dealers, banks
and other financial institutions. The Class A service plan permits
reimbursements to the Distributor at a rate of up to 0.25% of average annual net
assets of Class A shares purchased. The Distributor makes payments to plan
recipients quarterly at an annual rate not to exceed 0.25% of the average annual
net assets consisting of Class A shares of the Fund. For six months ended May
31, 2000, payments under the Class A plan totaled $460,327, all of which was
paid by the Distributor to recipients. That included $35,739 paid to an
affiliate of the Manager. Any unreimbursed expenses the Distributor incurs with
respect to Class A shares in any fiscal year cannot be recovered in subsequent
years.
--------------------------------------------------------------------------------
CLASS B AND CLASS C DISTRIBUTION AND SERVICE PLAN FEES. Under each plan,
service fees and distribution fees are computed on the average of the net asset
value of shares in the respective class, determined as of the close of each
regular business day during the period. The Class B and Class C plans provide
for the Distributor to be compensated at a flat rate, whether the Distributor's
distribution expenses are more or less than the amounts paid by the Fund under
the plan during the period for which the fee is paid.
The Distributor retains the asset-based sales charge on Class B shares. The
Distributor retains the asset-based sales charge on Class C shares during the
first year the shares are outstanding. The asset-based sales charges on Class B
and Class C shares allow investors to buy shares without a front-end sales
charge while allowing the Distributor to compensate dealers that sell those
shares.
The Distributor's actual expenses in selling Class B and Class C shares may
be more than the payments it receives from the contingent deferred sales charges
collected on redeemed shares and asset-based sales charges from the Fund under
the plans. If any plan is terminated by the Fund, the Board of Trustees may
allow the Fund to continue payments of the asset-based sales charge to the
Distributor for distributing shares before the plan was terminated. The plans
allow for the carryforward of distribution expenses, to be recovered from
asset-based sales charges in subsequent fiscal periods.
Distribution fees paid to the Distributor for the six months ended May 31, 2000,
were as follows:
<TABLE>
<CAPTION>
DISTRIBUTOR'S DISTRIBUTOR'S
AGGREGATE UNREIMBURSED
UNREIMBURSED EXPENSES AS %
TOTAL PAYMENTS AMOUNT RETAINED EXPENSES OF NET ASSETS
UNDER PLAN BY DISTRIBUTOR UNDER PLAN OF CLASS
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class B Plan $1,285,994 $1,033,164 $4,466,041 1.67%
Class C Plan 409,107 154,109 942,070 1.02
</TABLE>
26 OPPENHEIMER INTERNATIONAL GROWTH FUND
<PAGE>
--------------------------------------------------------------------------------
5. FOREIGN CURRENCY CONTRACTS
A foreign currency contract is a commitment to purchase or sell a foreign
currency at a future date, at a negotiated rate. The Fund may enter into foreign
currency contracts for operational purposes and to seek to protect against
adverse exchange rate fluctuations. Risks to the Fund include the potential
inability of the counterparty to meet the terms of the contract.
The net U.S. dollar value of foreign currency underlying all contractual
commitments held by the Fund and the resulting unrealized appreciation or
depreciation are determined using foreign currency exchange rates as provided by
a reliable bank, dealer or pricing service. Unrealized appreciation and
depreciation on foreign currency contracts are reported in the Statement of
Assets and Liabilities.
The Fund may realize a gain or loss upon the closing or settlement of the
foreign currency transactions. Realized gains and losses are reported with all
other foreign currency gains and losses in the Statement of Operations.
Securities denominated in foreign currency to cover net exposure on
outstanding foreign currency contracts are noted in the Statement of Investments
where applicable.
As of May 31, 2000, the Fund had outstanding foreign currency contracts as
follows:
<TABLE>
<CAPTION>
CONTRACT VALUATION AS OF UNREALIZED UNREALIZED
CONTRACT DESCRIPTION EXPIRATION DATE AMOUNT(000S) MAY 31, 2000 APPRECIATION DEPRECIATION
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CONTRACTS TO PURCHASE
Australian Dollar (AUD) 6/1/00-6/2/00 AUD745 $ 425,093 $ -- $1,863
British Pound Sterling (GBP) 6/1/00-6/6/00 GBP3,090 4,618,779 26,453 2,837
Japanese Yen (JPY) 6/2/00 JPY5,327 49,471 -- 126
-------------------------
26,453 4,826
-------------------------
CONTRACTS TO SELL
Euro (EUR) 6/30/00 EUR2,114 1,964,886 2,073 --
-------------------------
Total Unrealized Appreciation
and Depreciation $28,526 $4,826
-------------------------
-------------------------
</TABLE>
27 OPPENHEIMER INTERNATIONAL GROWTH FUND
<PAGE>
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
--------------------------------------------------------------------------------
6. ILLIQUID OR RESTRICTED SECURITIES
As of May 31, 2000, investments in securities included issues that are illiquid
or restricted. Restricted securities are often purchased in private placement
transactions, are not registered under the Securities Act of 1933, may have
contractual restrictions on resale, and are valued under methods approved by the
Board of Trustees as reflecting fair value. A security may also be considered
illiquid if it lacks a readily available market or if its valuation has not
changed for a certain period of time. The Fund intends to invest no more than
10% of its net assets (determined at the time of purchase and reviewed
periodically) in illiquid or restricted securities. Certain restricted
securities, eligible for resale to qualified institutional investors, are not
subject to that limitation. The aggregate value of illiquid or restricted
securities subject to this limitation as of May 31, 2000, was $3,946,575, which
represents 0.52% of the Fund's net assets, of which $2,400,000 is considered
restricted. Information concerning restricted securities is as follows:
<TABLE>
<CAPTION>
VALUATION
PER UNIT AS OF
SECURITY ACQUISITION DATE COST PER UNIT MAY 31, 2000
----------------------------------------------------------------------------
<S> <C> <C> <C>
STOCKS AND WARRANTS
Ceres, Inc., Preferred 1/6/99 $4.00 $4.00
</TABLE>
--------------------------------------------------------------------------------
7. BANK BORROWINGS
The Fund may borrow from a bank for temporary or emergency purposes including,
without limitation, funding of shareholder redemptions provided asset coverage
for borrowings exceeds 300%. The Fund has entered into an agreement which
enables it to participate with other Oppenheimer funds in an unsecured line of
credit with a bank, which permits borrowings up to $400 million, collectively.
Interest is charged to each fund, based on its borrowings, at a rate equal to
the Federal Funds Rate plus 0.45%. Borrowings are payable 30 days after such
loan is executed. The Fund also pays a commitment fee equal to its pro rata
share of the average unutilized amount of the credit facility at a rate of 0.08%
per annum.
The Fund had no borrowings outstanding during the six months ended May 31,
2000.
28 OPPENHEIMER INTERNATIONAL GROWTH FUND
<PAGE>
OPPENHEIMER INTERNATIONAL GROWTH FUND
--------------------------------------------------------------------------------
OFFICERS AND TRUSTEES Leon Levy, Chairman of the Board of Trustees
Donald W. Spiro, Vice Chairman of the Board of Trustees
Bridget A. Macaskill, Trustee and President
Robert G. Galli, Trustee
Phillip A. Griffiths, Trustee
Benjamin Lipstein, Trustee
Elizabeth B. Moynihan, Trustee
Kenneth A. Randall, Trustee
Edward V. Regan, Trustee
Russell S. Reynolds, Jr., Trustee
Clayton K. Yeutter, Trustee
George Evans, Vice President
Andrew J. Donohue, Secretary
Brian W. Wixted, Treasurer
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Robert G. Zack, Assistant Secretary
--------------------------------------------------------------------------------
INVESTMENT ADVISOR OppenheimerFunds, Inc.
--------------------------------------------------------------------------------
DISTRIBUTOR OppenheimerFunds Distributor, Inc.
--------------------------------------------------------------------------------
TRANSFER AND SHAREHOLDER OppenheimerFunds Services
SERVICING AGENT
--------------------------------------------------------------------------------
CUSTODIAN OF The Bank of New York
PORTFOLIO SECURITIES
--------------------------------------------------------------------------------
INDEPENDENT AUDITORS KPMG LLP
--------------------------------------------------------------------------------
LEGAL COUNSEL Gordon Altman Butowsky Weitzen Shalov & Wein
The financial statements included herein have been
taken from the records of the Fund without examination
of those records by the independent auditors.
This is a copy of a report to shareholders of
Oppenheimer International Growth Fund. This report must
be preceded or accompanied by a Prospectus of
Oppenheimer International Growth Fund. For material
information concerning the Fund, see the Prospectus.
SHARES OF OPPENHEIMER FUNDS ARE NOT DEPOSITS OR
OBLIGATIONS OF ANY BANK, ARE NOT GUARANTEED BY ANY
BANK, AND ARE NOT INSURED BY THE FDIC OR ANY OTHER
AGENCY, AND INVOLVE INVESTMENT RISKS, INCLUDING
POSSIBLE LOSS OF THE PRINCIPAL AMOUNT INVESTED.
OPPENHEIMER FUNDS ARE DISTRIBUTED BY OPPENHEIMERFUNDS
DISTRIBUTOR, INC., TWO WORLD TRADE CENTER, NEW YORK, NY
10048-0203.
'c' Copyright 2000 OppenheimerFunds, Inc.
All rights reserved.
29 OPPENHEIMER INTERNATIONAL GROWTH FUND
<PAGE>
INFORMATION AND SERVICES
As an Oppenheimer fund shareholder, you can benefit
from special services designed to make investing
simple. Whether it's automatic investment plans, timely
market updates, or immediate account access, you can
count on us whenever you need assistance. So call us
today, or visit our website--we're here to help.
--------------------------------------------------------------------------------
INTERNET
24-hr access to account information and transactions(1)
www.oppenheimerfunds.com
------------------------------------------------------
GENERAL INFORMATION
Mon-Fri 8am-9pm ET, Sat 10am-4pm ET
1.800.525.7048
------------------------------------------------------
TELEPHONE TRANSACTIONS
Mon-Fri 8am-9pm ET, Sat 10am-4pm ET
1.800.852.8457
------------------------------------------------------
PHONELINK
24-hr automated information and automated transactions
1.800.533.3310
------------------------------------------------------
TELECOMMUNICATIONS DEVICE FOR THE DEAF (TDD)
Mon-Fri 9am-6:30pm ET
1.800.843.4461
------------------------------------------------------
OPPENHEIMERFUNDS MARKET HOTLINE
24 hours a day, timely and insightful messages on the
economy and issues that may affect your investments
1.800.835.3104
------------------------------------------------------
TRANSFER AND SHAREHOLDER SERVICING AGENT
OppenheimerFunds Services
P.O. Box 5270, Denver, CO 80217-5270
------------------------------------------------------
Ticker Symbols
Class A: OIGAX Class B: IGRWX Class C: OIGCX
--------------------------------------------------------------------------------
(1)At times, this website may be inaccessible or its
transaction feature may be unavailable.
RS0825.001.0500 July 28, 2000 [OppenheimerFunds Logo]
STATEMENT OF DIFFERENCES
------------------------
The copyright symbol shall be expressed as................................. 'c'
