<PAGE> 1
ANNUAL REPORT AUGUST 31, 2000
OPPENHEIMER
INTERNATIONAL
SMALL COMPANY FUND
[PHOTO]
[OPPENHEIMERFUNDS LOGO]
THE RIGHT WAY TO INVEST
<PAGE> 2
CONTENTS
1 President's Letter
3 An Interview
with Your Fund's
Managers
7 Fund Performance
12 FINANCIAL
STATEMENTS
32 INDEPENDENT
AUDITORS' REPORT
33 Federal
Income Tax
Information
34 Officers and Trustees
REPORT HIGHLIGHTS
--------------------------------------------------------------------------------
International markets were greatly influenced by THE RISE AND DECLINE OF
TECHNOLOGY STOCKS during the one-year period that ended August 31, 2000.
The European Union and the leading countries in Latin America SHOWED STRONGER
SIGNS OF ECONOMIC GROWTH than did Japan and most other Asian countries.
AVERAGE ANNUAL
TOTAL RETURNS
For the 1-Year Period
Ended 8/31/00*
<TABLE>
<CAPTION>
Class A
Without With
Sales Chg. Sales Chg.
----------------------------------
<S> <C>
5.68% -0.40%
</TABLE>
<TABLE>
<CAPTION>
Class B
Without With
Sales Chg. Sales Chg.
----------------------------------
<S> <C>
4.98% 0.63%
</TABLE>
<TABLE>
<CAPTION>
Class C
Without With
Sales Chg. Sales Chg.
----------------------------------
<S> <C>
4.98% 4.11%
</TABLE>
*SEE NOTES ON PAGE 10 FOR FURTHER DETAILS.
TOC1
<PAGE> 3
[PHOTO]
BRIDGET A MACASKILL
President
Oppenheimer
International
Small Company Fund
PRESIDENT'S LETTER
--------------------------------------------------------------------------------
DEAR SHAREHOLDER,
Over the past several decades, our investment teams have learned the importance
of avoiding complacency when it comes to navigating the financial
markets--especially when times are good. Right now, times appear particularly
good. The U.S. economy is in its tenth year of expansion. In the bond market,
U.S. Treasury issues have been performing favorably over the past year. In
addition, despite volatility in the second quarter, the stock market has been
providing attractive returns from a wide spectrum of industry sectors,
capitalization ranges and investment styles.
We have arrived at this juncture after months of monitoring the rapid
pace of global economic growth and its implications for inflation, as well as
the Federal Reserve Board's evolving monetary policy. At this point, economic
indicators suggest a dampening of short-term inflationary pressures. While
recent increases in oil prices are certainly taking their toll, we don't believe
this signals a return to 1970's-style inflation. Accordingly, if the Fed
continues in its diligence, the economy could maintain its healthy rate of
growth.
In the bond market, the achievement of a federal budget surplus has
prompted the Treasury to buy back many of its long-term securities. The
resulting supply shortage boosted these securities' returns, causing an
inversion of the yield curve-- an unusual situation in which shorter term
Treasuries yield more than their longer term counterparts. Other bond sectors
are offering many opportunities in the form of attractive valuations.
Perhaps most important is that we have begun to see encouraging signs in
the stock market. Formerly high-flying Internet stocks have generally come down
to earth, and investors have begun to refocus on companies with strong business
fundamentals and justifiable valuations. Investors have also returned to
long-neglected, value-oriented companies.
1 OPPENHEIMER INTERNATIONAL SMALL COMPANY FUND
<PAGE> 4
PRESIDENT'S LETTER
--------------------------------------------------------------------------------
What else do these various trends tell us? They tell us that the ability
to discriminate between long-term potential and short-lived fads has become more
critical than ever. Trying to generate good long-term performance requires
tracking the best companies through intensive research, combined with
hard-earned experience.
At OppenheimerFunds, our seasoned portfolio management teams fight
complacency by remaining constantly aware of the risks that face the economy and
financial markets. Virtually anything could affect the overall markets--a surge
in inflation, a decline in productivity, deteriorating corporate earnings, or
even the new Administration's proposals regarding tax reform, healthcare and
Social Security. However, by remaining vigilant in our quest for fundamentally
sound businesses, we believe we can find good investments that can weather
market volatility.
In this environment, we encourage you to consult your financial advisor
and to stay on track with your long-term financial plan. For our part, we will
continue to monitor the opportunities and risks ever present in the financial
markets. Thank you for your confidence in OppenheimerFunds, The Right Way to
Invest.
Sincerely,
/s/ BRIDGET A. MACASKILL
Bridget A. Macaskill
September 22, 2000
THESE GENERAL MARKET VIEWS REPRESENT OPINIONS OF OPPENHEIMERFUNDS, INC.
AND ARE NOT INTENDED TO PREDICT OR DEPICT PERFORMANCE OF THE SECURITIES MARKETS
OR 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 SMALL COMPANY FUND
<PAGE> 5
[PHOTO]
PORTFOLIO MANAGEMENT
TEAM (L TO R)
George Evans
Shanquan Li
AN INTERVIEW WITH YOUR FUND'S MANAGERS
--------------------------------------------------------------------------------
Q
HOW DID THE FUND PERFORM DURING THE ONE-YEAR PERIOD THAT ENDED AUGUST 31, 2000?
A. Results for Oppenheimer International Small Company Fund for the past year
generally reflected the fortunes of equity markets worldwide, rising
substantially during the first six months of the period and declining
thereafter, to end the period with relatively flat performance.
WHAT HAPPENED IN THE INTERNATIONAL EQUITY MARKETS DURING THE PERIOD?
As in the United States, the performance of international markets was closely
linked to the progress of technology stocks. Following exceptional gains late in
1999 and early in 2000, equities for technology and telecommunications companies
retreated after March 2000. The impact was substantial among technology-related
companies in the developed markets of Europe. As the period drew to a close,
nontechnology issues were, in many cases, faring better than high-tech issues.
Also, throughout 2000, small-company stocks in many markets had delivered higher
returns than had their large-company counterparts.
WHY DID THE FUND INVEST HEAVILY IN EUROPEAN STOCKS DURING THE PERIOD?
We have had a positive outlook for Europe for quite some time now but especially
since the introduction of the euro in January 1999. Major economic, monetary and
tax reforms have paved the way for robust economic growth. Most recently, lower
tax rates, reduced barriers to trade and mergers, and a new emphasis on building
shareholder value have helped greatly to accelerate Europe's transformation.
3 OPPENHEIMER INTERNATIONAL SMALL COMPANY FUND
<PAGE> 6
"In our view, Europe
remains the leading
contender for strong
economic growth
and market gain in
the coming months."
AN INTERVIEW WITH YOUR FUND'S MANAGERS
--------------------------------------------------------------------------------
For these reasons, we invested a sizable portion of the Fund's assets in
small companies in Europe, including the United Kingdom. These investments
proved especially beneficial to the Fund's performance as markets rose prior to
March 2000. Despite the fallback in technology stocks since then, several of the
Fund's European high-tech holdings proved to be major contributors to the
performance for the 12-month period.
Although enjoying a positive economic outlook of late, Europe has not
been immune to rising inflation and interest rates. Increasing interest rates
had a negative effect on the Fund's investments in European financial stocks.
Here, the rising interest rates in many European nations caused investors to shy
away from insurance and bank stocks. Finally, the Fund's investments in stocks
from countries in the European Monetary Union (EMU) were, in many cases, hurt by
a general decline in the value of the euro.
As always, please keep in mind that investing in foreign securities
entails additional expenses and risks, including foreign currency fluctuations.
WHAT PROMPTED YOU TO INCREASE THE FUND'S INVESTMENT IN JAPAN?
While Japan's economy and equity markets continue to fight their way out of a
decade-long depression, there are narrow windows of investment opportunity. For
instance, Japan is home to some of the world's leading providers of electronics
components. At this juncture, the demand for components used in manufacturing a
wide variety of consumer products is beginning to exceed the supply. This has
been good news for component manufacturers such as Takasago Electric Industry
Co. Ltd.
4 OPPENHEIMER INTERNATIONAL SMALL COMPANY FUND
<PAGE> 7
AVERAGE ANNUAL
TOTAL RETURNS
For the Periods Ended 9/30/00(1)
<TABLE>
<CAPTION>
Class A Since
1-Year Inception
-----------------------------
<S> <C>
-10.03% 20.39%
</TABLE>
<TABLE>
<CAPTION>
Class B Since
1-Year Inception
-----------------------------
<S> <C>
-9.14% 21.24%
</TABLE>
<TABLE>
<CAPTION>
Class C Since
1-Year Inception
-----------------------------
<S> <C>
-6.00% 21.96%
</TABLE>
HOW DID THE FUND'S INVESTMENTS IN THE EMERGING MARKETS FARE?
We have maintained a cautious approach to the developing countries in Asia and
have been quite selective in our investments in Latin America. In our opinion,
the non-performing loan problems in Asia that triggered a major retrenchment in
1998 have not yet been adequately resolved. And, while matters in Latin America
are improving, we found only a few companies that met our investment criteria.
One notable example was Brazilian company Empresa Brasileira de
Aeronautica SA (Embraer), Preference which contributed significantly to the
Fund's total return. Embraer is a well-run Brazilian airline that appears to be
riding the swell of economic growth and consumer affluence around the world.
Since 1994, Brazil has waged outright war against inflation and so far has been
fairly successful. Brazilian interest rates are now declining, and the
government is well positioned to meet its loan payments to the International
Monetary Fund. Added to this is strong U.S. investment in Brazil; several of the
Fortune 500 companies have direct investment there.
WHAT IS YOUR OUTLOOK FOR INTERNATIONAL INVESTING?
Despite weakness in the euro, we continue to believe that the tax reform and
corporate restructuring occurring in Europe will fuel gains in its equity
markets.
We foresee less progress for the markets of Japan and other parts of
Asia, and will remain highly selective in our investment choices in those
countries. Latin America presents a more encouraging scenario, but we continue
to take a cautious approach to our investments in the region. The recent upgrade
in Mexico's debt rating and the growing investment in the region by
multinational corporations point to greater economic stability and better
investment opportunities down the road.
1. See page 10 for further details.
5 OPPENHEIMER INTERNATIONAL SMALL COMPANY FUND
<PAGE> 8
REGIONAL ALLOCATION(2)
[PIE CHART]
<TABLE>
<S> <C>
- Europe 47.8%
- Asia 32.9
- United States/
Canada 6.8
- Middle East/
Africa 6.7
- Latin America 4.9
- Emerging
Europe 0.9
</TABLE>
As always, we will continue to look for companies in all parts of the
world that have strong records of profitability and that participate in
industries which may benefit from long-term global trends, such as new
technology. This formula has served the Fund since its inception and is just one
reason why Oppenheimer International Small Company Fund is part of The Right Way
to Invest.
<TABLE>
<CAPTION>
TOP TEN COUNTRY HOLDINGS(2)
..................................................................
<S> <C>
Japan 14.3%
..................................................................
Germany 8.8
..................................................................
Great Britain 8.5
..................................................................
Canada 6.8
..................................................................
Hong Kong 6.4
..................................................................
Belgium 6.3
..................................................................
France 6.2
..................................................................
Israel 4.8
..................................................................
Brazil 4.5
..................................................................
India 4.4
..................................................................
<CAPTION>
TOP TEN COMMON STOCK HOLDINGS(3)
..................................................................
<S> <C>
Audiocodes Ltd. 2.2%
..................................................................
OMNI Industries Ltd. 2.1
..................................................................
Empresa Brasileira de Aeronautica SA (Embraer), Preference 2.0
..................................................................
Elcoteq Network Corp., Cl. A 1.9
..................................................................
Ubizen 1.9
..................................................................
Neptune Orient Lines Ltd. 1.9
..................................................................
JJB Sports plc 1.9
..................................................................
M-Systems Flash Disk Pioneers Ltd. 1.9
..................................................................
Marionnaud Parfumeries SA 1.8
..................................................................
Systematics AG 1.7
..................................................................
</TABLE>
2. Portfolio is subject to change. Percentages are as of August 31, 2000, and
are based on total market value of investments.
3. Portfolio is subject to change. Percentages are as of August 31, 2000, and
are based on net assets. oppenheimer International Small Company Fund
6 OPPENHEIMER INTERNATIONAL SMALL COMPANY FUND
<PAGE> 9
FUND PERFORMANCE
--------------------------------------------------------------------------------
HOW HAS THE FUND PERFORMED? Below is a discussion, by the Manager, of the Fund's
performance during its fiscal year ended August 31, 2000, followed by a
graphical comparison of the Fund's performance to an appropriate broad-based
market index and to a sector index.
MANAGEMENT'S DISCUSSION OF PERFORMANCE. The fiscal year that ended August 31,
2000, began with strong increases in markets throughout the world. These
advances were driven largely by a combination of economic growth and investor
enthusiasm for technology-related stocks. After March 2000, investor concerns
about the earnings potential of technology stocks, as well as inflationary
pressures and rising interest rates in the United States and Europe, triggered a
selloff in technology and telecommunications in both regions, affecting many
international markets. In addition, weakness in the euro reduced the total
returns on European investments denominated in U.S. dollars. Throughout the
one-year period, the Fund had a large allocation to European stocks and to
technology-related issues. The Fund invested very selectively in Japan, where
the economy continues to be feeble; and in Latin America, where signs of
economic resurgence are increasingly evident. Investments in Asia, where the
issues that provoked a financial crisis in 1998 remained unresolved, were
limited. The Fund's portfolio holdings, allocations and strategies are subject
to change.
COMPARING THE FUND'S PERFORMANCE TO THE MARKET. The graphs that follow show the
performance of a hypothetical $10,000 investment in Class A, Class B and Class C
shares of the Fund from the commencement date of November 17, 1997 until August
31, 2000. The Fund's performance reflects the deduction of the maximum initial
sales charge on Class A shares, the applicable contingent deferred sales charge
on Class B and Class C shares, and reinvestment of all dividends and capital
gains distributions.
The Fund's performance is compared to the performances of the HSBC James
Capel World excluding U.S. Smaller Companies Index (WexUS) and the Morgan
Stanley Capital International (MSCI) EAFE Index. The performance of small
international companies is represented by WexUS, an index composed of 1,200
securities with a market capitalization range of $53-$1,033 million in Europe,
UK, Southeast Asia, Japan, Australia and New Zealand. The performance of large
international companies is represented by the MSCI EAFE Index which is composed
of common stocks issued in Europe, Australia and the Far East.
Index performance reflects the reinvestment of dividends but does not
consider the effect of capital gains or transaction costs, and none of the data
in the graphs shows the effect of taxes. The Fund's performance reflects the
effect of Fund business and operating expenses. While index comparisons may be
useful to provide a benchmark for the Fund's performance, it must be noted that
the Fund's investments are not limited to the securities in either index shown.
7 OPPENHEIMER INTERNATIONAL SMALL COMPANY FUND
<PAGE> 10
FUND PERFORMANCE
-------------------------------------------------------------------------------
The following table was originally a line graph in the printed materials.]
CLASS A SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
<TABLE>
<CAPTION>
Oppenheimer International
Small Company Fund HSBC James Capel World Morgan Stanley Capital Intl.
(Class A) excl. U.S. Smaller Co. Index (MSCI) EAFE Index
<S> <C> <C> <C>
11/17/97 $ 9425 $ 10000 $ 10000
11/30/97 9529 9476 9900
02/28/98 10509 10240 11121
05/31/98 12187 10975 11506
08/31/98 10858 8937 10267
11/30/98 11800 9367 11561
02/28/99 12646 9603 11704
05/31/99 14648 10271 12042
08/31/99 17708 11767 12939
11/30/99 18461 12194 14039
02/29/00 22241 13668 14720
05/31/00 18284 11975 14141
08/31/00 18714 12367 14209
</TABLE>
AVERAGE ANNUAL TOTAL RETURN OF CLASS A SHARES OF THE FUND AT 8/31/00(1)
1 Year -0.40% Life 25.20%
[The following table was originally a line graph in the printed materials.]
CLASS B SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
<TABLE>
<CAPTION>
Oppenheimer International
Small Company Fund HSBC James Capel World Morgan Stanley Capital Intl.
(Class B) excl. U.S. Smaller Co. Index (MSCI) EAFE Index
<S> <C> <C> <C>
11/17/97 $ 10000 $ 10000 $ 10000
11/30/97 10110 9476 9900
02/28/98 11130 10240 11121
05/31/98 12880 10975 11506
08/31/98 11450 8937 10267
11/30/98 12420 9367 11561
02/28/99 13273 9603 11704
05/31/99 15349 10271 12042
08/31/99 18523 11767 12939
11/30/99 19275 12194 14039
02/29/00 23180 13668 14720
05/31/00 19017 11975 14141
08/31/00 19145 12367 14209
</TABLE>
AVERAGE ANNUAL TOTAL RETURN OF CLASS B SHARES OF THE FUND AT 8/31/00(1)
1 Year 0.63% Life 26.22%
1. See page 10 for further details.
8 OPPENHEIMER INTERNATIONAL SMALL COMPANY FUND
<PAGE> 11
[The following table was originally a line graph in the printed materials.]
CLASS C SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
<TABLE>
<CAPTION>
Oppenheimer International
Small Company Fund HSBC James Capel World Morgan Stanley Capital Intl.
(Class C) excl. U.S. Smaller Co. Index (MSCI) EAFE Index
<S> <C> <C> <C>
11/17/97 $ 10000 $ 10000 $ 10000
11/30/97 10110 9476 9900
02/28/98 11130 10240 11121
05/31/98 12870 10975 11506
08/31/98 11450 8937 10267
11/30/98 12420 9367 11561
02/28/99 13273 9603 11704
05/31/99 15349 10271 12042
08/31/99 18523 11767 12939
11/30/99 19265 12194 14039
02/29/00 23173 13668 14720
05/31/00 19016 11975 14141
08/31/00 19445 12367 14209
</TABLE>
AVERAGE ANNUAL TOTAL RETURN OF CLASS C SHARES OF THE FUND AT 8/31/00(1)
1 Year 4.11% Life 26.93%
THE PERFORMANCE INFORMATION IN THE GRAPHS FOR BOTH INDICES BEGINS ON 11/30/97.
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
9 OPPENHEIMER INTERNATIONAL SMALL COMPANY FUND
<PAGE> 12
NOTES
--------------------------------------------------------------------------------
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. THE FUND'S RETURNS
AT 9/30/00 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 HAS
BEEN SUBJECT TO SUBSTANTIAL SHORT-TERM FLUCTUATIONS AND CURRENT PERFORMANCE MAY
BE LESS THAN THE RESULTS SHOWN. 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 and the ending account values in the graphs include changes in
share price and reinvestment of dividends and capital gains distributions in a
hypothetical investment for the periods shown. 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 11/17/97. Class A returns include
the maximum initial sales charge of 5.75%.
CLASS B shares were first publicly offered on 11/17/97. Class B returns include
the applicable contingent deferred sales charge of 5% (1-year) and 3% (since
commencement). Class B shares are subject to a 0.75% annual asset-based sales
charge. The ending account value in the graph is net of the applicable 3%
contingent deferred sales charge.
CLASS C shares were first publicly offered on 11/17/97. Class C returns include
the contingent deferred sales charge of 1% for the one-year period. Class C
shares are subject to a 0.75% annual asset-based sales charge.
An explanation of the calculation of performance is in the Fund's Statement of
Additional Information.
10 OPPENHEIMER INTERNATIONAL SMALL COMPANY FUND
<PAGE> 13
FINANCIALS
--------------------------------------------------------------------------------
11 OPPENHEIMER INTERNATIONAL SMALL COMPANY FUND
<PAGE> 14
STATEMENT OF INVESTMENTS August 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
==================================================================================
<S> <C> <C>
COMMON STOCKS--98.7%
----------------------------------------------------------------------------------
BASIC MATERIALS--5.4%
----------------------------------------------------------------------------------
CHEMICALS--1.4%
Jilin Chemical Industrial Co. Ltd. 7,006,000 $ 529,989
----------------------------------------------------------------------------------
LG Chemical Ltd. 21,254 358,467
----------------------------------------------------------------------------------
Showa Denko K.K.(1) 406,000 571,080
------------
1,459,536
----------------------------------------------------------------------------------
METALS--1.2%
Antofagasta plc 195,400 1,259,480
----------------------------------------------------------------------------------
PAPER--2.8%
----------------------------------------------------------------------------------
AssiDoman AB 91,400 1,380,226
----------------------------------------------------------------------------------
Grupo Empresarial Ence SA 62,200 1,150,282
----------------------------------------------------------------------------------
Hokuetsu Paper Mills Ltd. 46,000 376,575
------------
2,907,083
----------------------------------------------------------------------------------
CAPITAL GOODS--15.0%
----------------------------------------------------------------------------------
AEROSPACE/DEFENSE--2.0%
Empresa Brasileira de Aeronautica SA (Embraer),
Preference 300,000 2,039,571
----------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--2.0%
Fuji Electric Co. Ltd.(1) 175,000 654,773
----------------------------------------------------------------------------------
Weg SA, Preference 2,199,000 1,438,203
------------
2,092,976
----------------------------------------------------------------------------------
INDUSTRIAL SERVICES--3.7%
Cookson Group plc 152,000 519,726
----------------------------------------------------------------------------------
Danka Business Systems plc, Sponsored ADR(1) 230,000 373,750
----------------------------------------------------------------------------------
Grupo Elektra SA de CV, CPO 388,200 392,185
----------------------------------------------------------------------------------
Prolion Holding NV(1) 51,000 1,088,258
----------------------------------------------------------------------------------
Vinci 29,900 1,515,293
------------
3,889,212
----------------------------------------------------------------------------------
MANUFACTURING--7.3%
ESEC Holding AG 800 1,692,643
----------------------------------------------------------------------------------
Jenoptik AG 30,000 906,882
----------------------------------------------------------------------------------
OMNI Industries Ltd. 1,000,000 2,161,157
----------------------------------------------------------------------------------
Perlos Oyj 40,000 1,207,398
----------------------------------------------------------------------------------
Takasago Electric Industry Co. Ltd. 36,400 1,655,476
------------
7,623,556
----------------------------------------------------------------------------------
COMMUNICATION SERVICES--1.1%
----------------------------------------------------------------------------------
TELECOMMUNICATIONS: WIRELESS--1.1%
Filtronic plc 66,500 1,185,279
</TABLE>
12 OPPENHEIMER INTERNATIONAL SMALL COMPANY FUND
<PAGE> 15
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
----------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER CYCLICALS--15.9%
----------------------------------------------------------------------------------
AUTOS & HOUSING--4.1%
Goldcrest Co. Ltd. 14,200 $ 1,448,762
----------------------------------------------------------------------------------
Hino Motors Ltd.(1) 181,000 724,747
----------------------------------------------------------------------------------
Joint Corp. 26,000 804,576
----------------------------------------------------------------------------------
Nitori Co. Ltd. 44,000 1,299,700
------------
4,277,785
----------------------------------------------------------------------------------
CONSUMER SERVICES--2.5%
Cell Network AB 111,180 824,734
----------------------------------------------------------------------------------
Creyf's NV 38,950 1,013,287
----------------------------------------------------------------------------------
Drake Beam Morin-Japan, Inc. 6,000 731,433
------------
2,569,454
----------------------------------------------------------------------------------
LEISURE & ENTERTAINMENT--1.6%
Kinowelt Medien AG(1) 34,400 1,605,715
----------------------------------------------------------------------------------
MEDIA--0.6%
Taylor & Francis Group plc 70,000 638,345
----------------------------------------------------------------------------------
RETAIL: SPECIALTY--6.7%
JJB Sports plc 251,500 1,957,739
----------------------------------------------------------------------------------
Marionnaud Parfumeries SA(1) 19,800 1,871,324
----------------------------------------------------------------------------------
Olympic Corp. 36,900 726,650
----------------------------------------------------------------------------------
Rallye SA 17,200 967,252
----------------------------------------------------------------------------------
Shinsegae Department Store Co. 29,500 1,468,681
------------
6,991,646
----------------------------------------------------------------------------------
TEXTILE/APPAREL & HOME FURNISHINGS--0.4%
Profurn Ltd. 669,327 446,378
----------------------------------------------------------------------------------
CONSUMER STAPLES--6.2%
----------------------------------------------------------------------------------
BROADCASTING--1.7%
Antenna Hungaria Rt.(1) 16,200 341,673
----------------------------------------------------------------------------------
Intertainment AG(1) 22,900 1,386,950
------------
1,728,623
----------------------------------------------------------------------------------
ENTERTAINMENT--0.7%
Edel Music AG(1) 42,700 740,309
----------------------------------------------------------------------------------
FOOD--1.1%
Kamps AG 54,900 1,186,610
----------------------------------------------------------------------------------
FOOD & DRUG RETAILERS--2.2%
Cia Brasileira de Distribuicao Grupo Pao de Acucar,
Sponsored ADR 29,700 1,108,181
----------------------------------------------------------------------------------
Superdiplo SA(1) 70,000 1,188,727
------------
2,296,908
----------------------------------------------------------------------------------
TOBACCO--0.5%
British American Tobacco Australasia Ltd. 75,600 528,548
</TABLE>
13 OPPENHEIMER INTERNATIONAL SMALL COMPANY FUND
<PAGE> 16
STATEMENT OF INVESTMENTS Continued
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
----------------------------------------------------------------------------------
<S> <C> <C>
ENERGY--1.3%
----------------------------------------------------------------------------------
OIL: DOMESTIC--0.5%
Gulf Canada Resources Ltd.(1) 86,800 $ 479,704
----------------------------------------------------------------------------------
OIL: INTERNATIONAL--0.8%
Japan Energy Corp.(1) 283,000 305,186
----------------------------------------------------------------------------------
Rio Alto Exploration Ltd.(1) 24,900 494,724
------------
799,910
----------------------------------------------------------------------------------
FINANCIAL--10.6%
----------------------------------------------------------------------------------
BANKS--3.1%
Chuo Mitsui Trust & Banking Co. Ltd. (The) 317,000 1,218,773
----------------------------------------------------------------------------------
Fairfax Financial Holdings Ltd.(1) 9,200 1,235,234
----------------------------------------------------------------------------------
North Pacific Bank Ltd. (The) 133,000 793,211
------------
3,247,218
----------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL--6.6%
Gold-Zack AG 60,000 1,407,268
----------------------------------------------------------------------------------
Guoco Group Ltd. 398,000 1,020,604
----------------------------------------------------------------------------------
ICICI Ltd., Sponsored ADR 63,500 896,938
----------------------------------------------------------------------------------
Tsubasa Securities Co. Ltd. 85,000 408,102
----------------------------------------------------------------------------------
Wheelock & Co. Ltd. 1,830,000 1,525,137
----------------------------------------------------------------------------------
Wing Hang Bank Ltd. 480,000 1,581,680
------------
6,839,729
----------------------------------------------------------------------------------
INSURANCE--0.9%
Metropolitan Life Ltd. 635,400 879,399
----------------------------------------------------------------------------------
HEALTHCARE--4.8%
----------------------------------------------------------------------------------
HEALTHCARE/DRUGS--3.8%
Biocompatibles International plc(1) 186,100 1,245,567
----------------------------------------------------------------------------------
Canadian Medical Laboratories Ltd.(1) 85,400 926,561
----------------------------------------------------------------------------------
Goldshield Group plc 40,000 477,240
----------------------------------------------------------------------------------
Omega Pharma SA 34,700 1,295,774
------------
3,945,142
----------------------------------------------------------------------------------
HEALTHCARE/SUPPLIES & SERVICES--1.0%
Instrumentarium Corp. Oyj 43,900 1,051,899
----------------------------------------------------------------------------------
TECHNOLOGY--36.1%
----------------------------------------------------------------------------------
COMPUTER HARDWARE--6.6%
Creo Products, Inc.(1) 57,400 1,628,725
----------------------------------------------------------------------------------
M-Systems Flash Disk Pioneers Ltd.(1) 24,700 1,932,775
----------------------------------------------------------------------------------
Optimal Robotics Corp.(1) 40,800 1,361,700
----------------------------------------------------------------------------------
Systemat-Datarelay SA 45,000 926,220
----------------------------------------------------------------------------------
Trigem Computer, Inc. 56,968 999,348
------------
6,848,768
</TABLE>
14 OPPENHEIMER INTERNATIONAL SMALL COMPANY FUND
<PAGE> 17
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
----------------------------------------------------------------------------------
<S> <C> <C>
COMPUTER SERVICES--9.1%
Adcore AB(1) 100,232 $ 1,062,174
----------------------------------------------------------------------------------
CCT Telecom Holdings Ltd.(1) 3,300,000 693,908
----------------------------------------------------------------------------------
Computacenter plc(1) 35,800 221,378
----------------------------------------------------------------------------------
Computer Configurations Holdings Ltd.(1) 803,800 632,895
----------------------------------------------------------------------------------
Computer Services Solutions Holding NV 54,400 1,117,279
----------------------------------------------------------------------------------
Systematics AG(1) 39,400 1,777,800
----------------------------------------------------------------------------------
Ubizen(1) 52,000 1,988,028
----------------------------------------------------------------------------------
Unit 4(1) 29,000 1,405,223
----------------------------------------------------------------------------------
Yuxing Infotech Holdings Ltd. 1,800,000 536,587
------------
9,435,272
----------------------------------------------------------------------------------
COMPUTER SOFTWARE--8.1%
INTEC, Inc. 53,000 1,123,218
----------------------------------------------------------------------------------
Magic Software Enterprises Ltd.(1) 85,700 771,300
----------------------------------------------------------------------------------
MERANT plc, Sponsored ADR(1) 47,200 365,800
----------------------------------------------------------------------------------
Navision Software AS(1) 17,000 595,958
----------------------------------------------------------------------------------
NIIT Ltd. 38,300 1,577,605
----------------------------------------------------------------------------------
Real Software Group NV 23,000 1,236,160
----------------------------------------------------------------------------------
Satyam Computer Services Ltd. 72,000 899,646
----------------------------------------------------------------------------------
SSI Ltd. 18,700 1,156,258
----------------------------------------------------------------------------------
Titus Interactive(1) 32,800 742,185
------------
8,468,130
----------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT--2.2%
Audiocodes Ltd.(1) 20,000 2,247,500
----------------------------------------------------------------------------------
ELECTRONICS--10.1%
Ando Electronic Co. Ltd.(1) 20,000 393,849
----------------------------------------------------------------------------------
ASM Pacific Technology Ltd. 300,000 953,932
----------------------------------------------------------------------------------
Elcoteq Network Corp., Cl. A 60,200 1,993,762
----------------------------------------------------------------------------------
Ingenico SA 26,900 1,283,136
----------------------------------------------------------------------------------
Micronas Semiconductor Holding AG(1) 2,600 1,529,324
----------------------------------------------------------------------------------
Mitel Corp.(1) 35,800 877,100
----------------------------------------------------------------------------------
Radio Korasidi SA 31,400 610,572
----------------------------------------------------------------------------------
SEZ Holding AG 1,400 1,150,465
----------------------------------------------------------------------------------
Shinko Electric Industries Co. Ltd. 28,000 1,499,250
----------------------------------------------------------------------------------
VTech Holdings Ltd. 85,000 264,832
------------
10,556,222
</TABLE>
15 OPPENHEIMER INTERNATIONAL SMALL COMPANY FUND
<PAGE> 18
STATEMENT OF INVESTMENTS Continued
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
----------------------------------------------------------------------------------
<S> <C> <C>
TRANSPORTATION--1.9%
----------------------------------------------------------------------------------
SHIPPING--1.9%
Neptune Orient Lines Ltd.(1) 1,800,000 $ 1,965,956
----------------------------------------------------------------------------------
UTILITIES--0.4%
----------------------------------------------------------------------------------
ELECTRIC UTILITIES--0.4%
Independent Energy Holdings plc(1) 74,500 455,270
------------
Total Common Stocks (Cost $111,711,932) 102,687,133
<CAPTION>
PRINCIPAL
AMOUNT
==================================================================================
<S> <C> <C>
REPURCHASE AGREEMENTS--0.0%
----------------------------------------------------------------------------------
Repurchase agreement with Banc One Capital
Markets, Inc., 6.57%, dated 8/31/00, to be
repurchased at $22,004 on 9/1/00, collateralized
by U.S. Treasury Bonds, 6.25%-12%,
11/15/03-8/15/23, with a value of $9,417, U.S.
Treasury Nts., 4.25%-7.50%, 12/31/00-2/15/07, with
a value of $10,754 and U.S. Treasury Bills,
11/30/00, with a value of $2,303 (Cost $22,000) $ 22,000 22,000
----------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $111,733,932) 98.7% 102,709,133
----------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 1.3 1,379,749
------------------------
NET ASSETS 100.0% $104,088,882
========================
</TABLE>
16 OPPENHEIMER INTERNATIONAL SMALL COMPANY FUND
<PAGE> 19
FOOTNOTES TO STATEMENT OF INVESTMENTS
1. Non-income-producing security.
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 $ 14,735,362 14.3%
Germany 9,011,533 8.8
Great Britain 8,699,574 8.5
Canada 7,003,749 6.8
Hong Kong 6,576,680 6.4
Belgium 6,459,469 6.3
France 6,379,190 6.2
Israel 4,951,575 4.8
Brazil 4,585,955 4.5
India 4,530,447 4.4
Switzerland 4,372,432 4.3
Finland 4,253,059 4.1
Singapore 4,127,113 4.0
The Netherlands 3,610,760 3.5
Sweden 3,267,133 3.2
Korea, Republic of (South) 2,826,496 2.8
Spain 2,339,009 2.3
South Africa 1,958,672 1.9
Greece 610,572 0.6
Denmark 595,958 0.6
China 529,989 0.5
Australia 528,548 0.5
Mexico 392,185 0.4
Hungary 341,673 0.3
United States 22,000 0.0
------------------------------
TOTAL $102,709,133 100.0%
==============================
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
17 OPPENHEIMER INTERNATIONAL SMALL COMPANY FUND
<PAGE> 20
STATEMENT OF ASSETS AND LIABILITIES August 31, 2000
--------------------------------------------------------------------------------
<TABLE>
===================================================================================
<S> <C>
ASSETS
Investments, at value (cost $111,733,932)--see accompanying
statement $102,709,133
-----------------------------------------------------------------------------------
Unrealized appreciation on foreign currency contracts 2,017
Receivables and other assets:
Shares of beneficial interest sold 2,651,879
Investments sold 2,378,718
Interest and dividends 88,721
Other 6,426
-------------
Total assets 107,836,894
===================================================================================
LIABILITIES
Bank overdraft 802,925
-----------------------------------------------------------------------------------
Unrealized depreciation on foreign currency
contracts 1,994
-----------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 1,901,179
Shares of beneficial interest redeemed 735,170
Foreign capital gains taxes 72,391
Transfer and shareholder servicing agent fees 64,664
Distribution and service plan fees 42,489
Trustees' compensation 34,397
Other 92,803
-------------
Total liabilities 3,748,012
===================================================================================
NET ASSETS $104,088,882
=============
===================================================================================
COMPOSITION OF NET ASSETS
Paid-in capital $108,908,780
-----------------------------------------------------------------------------------
Undistributed net investment income 385,386
-----------------------------------------------------------------------------------
Accumulated net realized gain on investments and foreign currency
transactions 3,827,826
-----------------------------------------------------------------------------------
Net unrealized depreciation on investments and translation of
assets and liabilities denominated in foreign currencies (9,033,110)
-------------
NET ASSETS $104,088,882
=============
</TABLE>
18 OPPENHEIMER INTERNATIONAL SMALL COMPANY FUND
<PAGE> 21
<TABLE>
<S> <C>
===================================================================================
NET ASSET VALUE PER SHARE
Class A Shares:
Net asset value and redemption price per share (based on net
assets of $60,336,186 and 3,960,847 shares of beneficial
interest outstanding) $15.23
Maximum offering price per share(net asset value plus sales
charge of 5.75% of offering price) $16.16
-----------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable
contingent deferred sales charge) and offering price per
share (based on net assets of $31,807,196 and 2,122,404
shares of beneficial interest outstanding) $14.99
-----------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable
contingent deferred sales charge) and offering price per
share (based on net assets of $11,945,500 and 798,185 shares
of beneficial interest outstanding) $14.97
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
19 OPPENHEIMER INTERNATIONAL SMALL COMPANY FUND
<PAGE> 22
STATEMENT OF OPERATIONS For the Year Ended August 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
==================================================================================
INVESTMENT INCOME
Dividends (net of foreign withholding taxes of $69,430) $ 733,475
----------------------------------------------------------------------------------
Interest 184,474
-----------
Total income 917,949
==================================================================================
EXPENSES
Management fees 690,859
----------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 123,250
Class B 253,362
Class C 89,818
----------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees 324,747
----------------------------------------------------------------------------------
Shareholder reports 97,980
----------------------------------------------------------------------------------
Foreign capital gains taxes 72,391
----------------------------------------------------------------------------------
Custodian fees and expenses 48,801
----------------------------------------------------------------------------------
Trustees' compensation 12,764
-----------
Other 52,718
-----------
Total expenses 1,766,690
Less expenses paid indirectly (7,855)
-----------
Net expenses 1,758,835
==================================================================================
NET INVESTMENT LOSS (840,886)
==================================================================================
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments 13,885,128
Foreign currency transactions (3,731,348)
-----------
Net realized gain 10,153,780
----------------------------------------------------------------------------------
Net change in unrealized depreciation on:
Investments (7,400,612)
Translation of assets and liabilities denominated in foreign
currencies (4,400,782)
-----------
Net change (11,801,394)
-----------
Net realized and unrealized loss (1,647,614)
==================================================================================
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $(2,488,500)
===========
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
19 OPPENHEIMER INTERNATIONAL SMALL COMPANY FUND
<PAGE> 23
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED AUGUST 31 2000 1999
==================================================================================
<S> <C> <C>
OPERATIONS
Net investment income (loss) $ (840,886) $ 109,108
----------------------------------------------------------------------------------
Net realized gain 10,153,780 7,463,791
----------------------------------------------------------------------------------
Net change in unrealized appreciation
(depreciation) (11,801,394) 3,727,838
--------------------------
Net increase (decrease) in net assets resulting
from operations (2,488,500) 11,300,737
==================================================================================
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income:
Class A (382,508) (39,378)
Class B (95,047) --
Class C (36,304) --
----------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (6,325,013) (653,225)
Class B (2,747,741) (222,502)
Class C (876,679) (49,271)
==================================================================================
BENEFICIAL INTEREST TRANSACTIONS
Net increase in net assets resulting from
beneficial interest transactions:
Class A 41,011,174 10,428,211
Class B 24,098,579 6,385,658
Class C 10,387,914 1,548,125
==================================================================================
NET ASSETS
Total increase 62,545,875 28,698,355
----------------------------------------------------------------------------------
Beginning of period 41,543,007 12,844,652
---------------------------
End of period (including undistributed net
investment income of $385,386 and $342,771,
respectively) $104,088,882 $41,543,007
===========================
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
21 OPPENHEIMER INTERNATIONAL SMALL COMPANY FUND
<PAGE> 24
FINANCIAL HIGHLIGHTS
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS A YEAR ENDED AUGUST 31, 2000 1999 1998(1)
=========================================================================================
<S> <C> <C> <C>
PER SHARE OPERATING DATA
Net asset value, beginning of period $ 17.42 $ 11.52 $10.00
-----------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.10) .06 .03
Net realized and unrealized gain 1.12 6.72 1.49
-------------------------------
Total income from
investment operations 1.02 6.78 1.52
-----------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.18) (.04) --
Distributions from net realized gain (3.03) (.84) --
-------------------------------
Total dividends and/or distributions
to shareholders (3.21) (.88) --
-----------------------------------------------------------------------------------------
Net asset value, end of period $ 15.23 $ 17.42 $11.52
===============================
=========================================================================================
TOTAL RETURN, AT NET ASSET VALUE(2) 5.68% 63.10% 15.20%
=========================================================================================
RATIOS/SUPPLEMENTAL DATA
NET ASSETS, END OF PERIOD (IN THOUSANDS) $60,336 $26,965 $9,605
-----------------------------------------------------------------------------------------
Average net assets (in thousands) $52,095 $14,208 $6,482
-----------------------------------------------------------------------------------------
Ratios to average net assets:(3)
Net investment income (loss) (0.67)% 0.73% 0.44%
Expenses 1.74 % 2.05% 1.77%(4)
-----------------------------------------------------------------------------------------
Portfolio turnover rate 199% 280% 239%
</TABLE>
1. For the period from November 17, 1997 (commencement of operations) to
August 31, 1998.
2. 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.
3. Annualized for periods of less than one full year.
4. Expense ratio has not been grossed up to reflect the effect of expenses
paid indirectly.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
22 OPPENHEIMER INTERNATIONAL SMALL COMPANY FUND
<PAGE> 25
<TABLE>
<CAPTION>
CLASS B YEAR ENDED AUGUST 31, 2000 1999 1998(1)
-----------------------------------------------------------------------------------------
<S> <C> <C> <C>
PER SHARE OPERATING DATA
Net asset value, beginning of period $ 17.22 $ 11.45 $10.00
-----------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.19) .02 (.01)
Net realized and unrealized gain 1.09 6.59 1.46
-------------------------------
Total income from
investment operations .90 6.61 1.45
-----------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.10) -- --
Distributions from net realized gain (3.03) (.84) --
-------------------------------
Total dividends and/or distributions
to shareholders (3.13) (.84) --
-----------------------------------------------------------------------------------------
Net asset value, end of period $ 14.99 $ 17.22 $11.45
===============================
=========================================================================================
TOTAL RETURN, AT NET ASSET VALUE(2) 4.98% 61.77% 14.50%
=========================================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $31,807 $11,764 $2,631
-----------------------------------------------------------------------------------------
Average net assets (in thousands) $25,377 $ 5,367 $1,187
-----------------------------------------------------------------------------------------
Ratios to average net assets:(3)
Net investment income (loss) (1.44)% 0.09% (0.38)%
Expenses 2.51% 2.84% 2.67%(4)
-----------------------------------------------------------------------------------------
Portfolio turnover rate 199% 280% 239%
</TABLE>
1. For the period from November 17, 1997 (commencement of operations) to
August 31, 1998.
2. 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.
3. Annualized for periods of less than one full year.
4. Expense ratio has not been grossed up to reflect the effect of expenses
paid indirectly.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
23 OPPENHEIMER INTERNATIONAL SMALL COMPANY FUND
<PAGE> 26
FINANCIAL HIGHLIGHTS Continued
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS C YEAR ENDED AUGUST 31, 2000 1999 1998(1)
-------------------------------------------------------------------------------------
<S> <C> <C> <C>
PER SHARE OPERATING DATA
Net asset value, beginning of period $ 17.22 $11.45 $10.00
-------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.16) .04 (.04)
Net realized and unrealized gain 1.07 6.57 1.49
---------------------------
Total income from
investment operations .91 6.61 1.45
-------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.13) -- --
Distributions from net realized gain (3.03) (.84) --
---------------------------
Total dividends and/or distributions
to shareholders (3.16) (.84) --
-------------------------------------------------------------------------------------
Net asset value, end of period $ 14.97 $17.22 $11.45
===========================
=====================================================================================
TOTAL RETURN, AT NET ASSET VALUE(2) 4.98% 61.77% 14.50%
=====================================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $11,946 $2,815 $609
-------------------------------------------------------------------------------------
Average net assets (in thousands) $ 9,003 $1,256 $454
-------------------------------------------------------------------------------------
Ratios to average net assets:(3)
Net investment income (loss) (1.38)% 0.09% (0.66)%
Expenses 2.51% 2.84% 2.58%4
-------------------------------------------------------------------------------------
Portfolio turnover rate 199% 280% 239%
</TABLE>
1. For the period from November 17, 1997 (commencement of operations) to
August 31, 1998.
2. 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.
3. Annualized for periods of less than one full year.
4. Expense ratio has not been grossed up to reflect the effect of expenses
paid indirectly.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
24 OPPENHEIMER INTERNATIONAL SMALL COMPANY FUND
<PAGE> 27
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
================================================================================
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer International Small Company 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 a
front-end sales charge. Class B and Class C shares are sold without a front-end
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 have separate distribution and/or service plans.
Class B shares will automatically convert to Class A shares six years after the
date of purchase. The following is a summary of significant accounting policies
consistently followed by the Fund.
--------------------------------------------------------------------------------
SECURITIES VALUATION. Securities listed or traded on National Stock Exchanges
or other domestic or foreign exchanges are valued based on the last sale price
of the security traded on that exchange prior to the time when the Fund's
assets are valued. 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
(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. Short-term "money market type"
debt securities with remaining maturities of sixty days or less are valued at
amortized cost (which approximates market value).
--------------------------------------------------------------------------------
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.
25 OPPENHEIMER INTERNATIONAL SMALL COMPANY FUND
<PAGE> 28
NOTES TO FINANCIAL STATEMENTS Continued
--------------------------------------------------------------------------------
================================================================================
1. SIGNIFICANT ACCOUNTING POLICIES Continued
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 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
year ended August 31, 2000, a provision of $5,899 was made for the Fund's
projected benefit obligations and payments of $460 were made to retired
trustees, resulting in an accumulated liability of $32,718 as of August 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.
26 OPPENHEIMER INTERNATIONAL SMALL COMPANY FUND
<PAGE> 29
--------------------------------------------------------------------------------
CLASSIFICATION OF DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Net investment
income (loss) and net realized gain (loss) may differ for financial statement
and tax purposes primarily because of paydown gains and losses and the
recognition of certain foreign currency gains (losses) as ordinary income
(loss) for tax purposes. The character of dividends and distributions made
during the fiscal year from net investment income or net realized gains may
differ from its 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
realized gain was recorded by the Fund.
The Fund adjusts the classification of distributions to shareholders to
reflect the differences between financial statement amounts and distributions
determined in accordance with income tax regulations. Accordingly, during the
year ended August 31, 2000, amounts have been reclassified to reflect an
increase in paid-in capital of $2,103,557, a decrease in overdistributed net
investment income of $1,397,360, and a decrease in accumulated net realized
gain on investments of $3,500,917. This reclassification includes $2,103,557
distributed in connection with Fund share redemptions which increased paid-in
capital and reduced accumulated net realized gain. Net assets of the Fund were
unaffected by the reclassifications.
--------------------------------------------------------------------------------
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.
27 OPPENHEIMER INTERNATIONAL SMALL COMPANY FUND
<PAGE> 30
NOTES TO FINANCIAL STATEMENTS Continued
--------------------------------------------------------------------------------
================================================================================
2. SHARES OF BENEFICIAL INTEREST
The Fund has authorized an unlimited number of no par value shares of
beneficial interest for each class. Transactions in shares of beneficial
interest were as follows:
<TABLE>
<CAPTION>
YEAR ENDED AUGUST 31, 2000 YEAR ENDED AUGUST 31, 1999
SHARES AMOUNT SHARES AMOUNT
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CLASS A
Sold 4,935,306 $ 83,041,032 1,342,812 $ 18,716,106
Dividends and/or
distributions reinvested 408,411 6,293,616 57,034 639,347
Redeemed (2,931,162) (48,323,474) (684,920) (8,927,242)
---------------------------------------------------------------
Net increase 2,412,555 $ 41,011,174 714,926 $10,428,211
===============================================================
-------------------------------------------------------------------------------------------------
CLASS B
Sold 2,309,773 $ 38,332,497 708,065 $10,033,460
Dividends and/or
distributions reinvested 180,676 2,753,506 19,492 217,331
Redeemed (1,051,156) (16,987,424) (274,188) (3,865,133)
---------------------------------------------------------------
Net increase 1,439,293 $ 24,098,579 453,369 $ 6,385,658
===============================================================
-------------------------------------------------------------------------------------------------
CLASS C
Sold 1,527,990 $ 25,298,837 142,500 $ 1,990,985
Dividends and/or
distributions reinvested 56,909 866,168 4,411 49,186
Redeemed (950,210) (15,777,091) (36,570) (492,046)
---------------------------------------------------------------
Net increase 634,689 $ 10,387,914 110,341 $ 1,548,125
===============================================================
</TABLE>
================================================================================
3. PURCHASES AND SALES OF SECURITIES
The aggregate cost of purchases and proceeds from sales of securities,
other than short-term obligations, for the year ended August 31, 2000, were
$227,691,309 and $162,707,411, respectively.
As of August 31, 2000, unrealized appreciation (depreciation) based on
cost of securities for federal income tax purposes of $111,733,932 was:
<TABLE>
<S> <C>
Gross unrealized appreciation $ 9,128,542
Gross unrealized depreciation (18,153,341)
------------
Net unrealized depreciation $ (9,024,799)
============
</TABLE>
28 OPPENHEIMER INTERNATIONAL SMALL COMPANY FUND
<PAGE> 31
================================================================================
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 year ended August 31, 2000 was an annualized rate
of 0.80%, before any waiver by the Manager if applicable.
--------------------------------------------------------------------------------
TRANSFER AGENT FEES. OppenheimerFunds Services (OFS), a division of the
Manager, acts as the transfer and shareholder servicing agent for the Fund on
an "at-cost" basis. OFS also acts as the transfer and shareholder servicing
agent for the other Oppenheimer 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
ON CLASS A RETAINED BY ADVANCED BY ADVANCED BY ADVANCED BY
YEAR ENDED SHARES DISTRIBUTOR DISTRIBUTOR(1) DISTRIBUTOR(1) DISTRIBUTOR(1)
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
August 31, 2000 $586,428 $165,265 $108,878 $645,866 $65,470
</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
SALES CHARGES SALES CHARGES SALES CHARGES
YEAR ENDED RETAINED BY DISTRIBUTOR RETAINED BY DISTRIBUTOR RETAINED BY DISTRIBUTOR
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
August 31, 2000 $-- $61,444 $1,885
</TABLE>
29 OPPENHEIMER INTERNATIONAL SMALL COMPANY FUND
<PAGE> 32
NOTES TO FINANCIAL STATEMENTS Continued
--------------------------------------------------------------------------------
================================================================================
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued
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.
--------------------------------------------------------------------------------
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 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 the year ended August 31,
2000, payments under the Class A plan totaled $123,250 prior to Manager waivers
if applicable, all of which were paid by the Distributor to recipients, and
included $8,605 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 year ended August 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 $253,362 $220,080 $723,447 2.27%
Class C Plan 89,818 54,360 84,603 0.71
</TABLE>
30 OPPENHEIMER INTERNATIONAL SMALL COMPANY FUND
<PAGE> 33
================================================================================
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 August 31, 2000, the Fund had outstanding
foreign currency contracts as follows:
<TABLE>
<CAPTION>
EXPIRATION CONTRACT VALUATION AS OF UNREALIZED UNREALIZED
CONTRACT DESCRIPTION DATE AMOUNT (000s) AUGUST 31, 2000 APPRECIATION DEPRECIATION
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CONTRACTS TO PURCHASE
Hong Kong Dollar (HKD) 9/1/00 HKD852 $109,274 $ 3 $ --
------ ------
CONTRACTS TO SELL
British Pound
Sterling (GBP) 9/4/00-9/5/00 GBP351 510,088 475 1,093
Euro (EUR) 9/1/00-9/14/00 EUR890 791,176 1,235 --
Japanese Yen (JPY) 9/1/00-9/4/00 JPY12,594 118,099 304 --
Swedish Krona (SEK) 9/1/00-9/4/00 SEK3,274 347,039 -- 901
------ ------
2,014 1,994
------ ------
Total Unrealized Appreciation and Depreciation $2,017 $1,994
====== ======
</TABLE>
================================================================================
6. 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 year ended August 31,
2000.
31 OPPENHEIMER INTERNATIONAL SMALL COMPANY FUND
<PAGE> 34
INDEPENDENT AUDITORS' REPORT
--------------------------------------------------------------------------------
================================================================================
THE BOARD OF TRUSTEES AND SHAREHOLDERS OF OPPENHEIMER INTERNATIONAL SMALL
COMPANY FUND:
We have audited the accompanying statement of assets and liabilities, including
the statement of investments, of Oppenheimer International Small Company Fund
as of August 31, 2000, and the related statement of operations for the year
then ended, the statements of changes in net assets for each of the years in
the two-year period then ended and the financial highlights for each of the
years in the two-year period then ended and the period from November 17, 1997
(commencement of operations) to August 31, 1998. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures
included confirmation of securities owned as of August 31, 2000, by
correspondence with the custodian and brokers; and where confirmations were not
received from brokers, we performed other auditing procedures. An audit also
includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Oppenheimer International Small Company Fund as of August 31, 2000,
the results of its operations for the year then ended, the changes in its net
assets for each of the years in the two-year period then ended, and the
financial highlights for each of the years in the two-year period then ended
and the period from November 17, 1997 (commencement of operations) to August
31, 1998, in conformity with accounting principles generally accepted in the
United States of America.
KPMG LLP
Denver, Colorado
September 22, 2000
32 OPPENHEIMER INTERNATIONAL SMALL COMPANY FUND
<PAGE> 35
FEDERAL INCOME TAX INFORMATION Unaudited
--------------------------------------------------------------------------------
================================================================================
In early 2001 shareholders will receive information regarding all dividends and
distributions paid to them by the Fund during calendar year 2000. Regulations of
the U.S. Treasury Department require the Fund to report this information to the
Internal Revenue Service.
Dividends and distributions of $3.2173, $3.1387, and $3.1594 per share
were paid to Class A, Class B and Class C shareholders, respectively, on
December 6, 1999, of which $0.1925 was designated as a "capital gain
distribution" for federal income tax purposes. Whether received in stock or in
cash, the capital gain distribution should be treated by shareholders as a gain
from the sale of capital assets held for more than one year (long-term capital
gains).
The dividends paid by the Fund during the year ended August 31, 2000,
are not eligible for the corporate dividend-received deduction.
The foregoing information is presented to assist shareholders in
reporting distributions received from the Fund to the Internal Revenue Service.
Because of the complexity of the federal regulations which may affect your
individual tax return and the many variations in state and local tax
regulations, we recommend that you consult your tax advisor for specific
guidance.
33 OPPENHEIMER INTERNATIONAL SMALL COMPANY FUND
<PAGE> 36
OPPENHEIMER INTERNATIONAL SMALL COMPANY 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
Shanquan Li, 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 Mayer, Brown & Platt
For more complete information about Oppenheimer
International Small Company Fund, please refer
to the Prospectus. To obtain a copy, call your
financial advisor, or call OppenheimerFunds
Distributor, Inc. at 1.800.525.7048, or visit
the OppenheimerFunds Internet web site, at
www.oppenheimerfunds.com
SHARES OF OPPENHEIMER FUNDS ARE NOT DEPOSITS
OR OBLIGATIONS OF ANY BANK, ARE NOT GUARANTEED
BY ANY BANK, ARE NOT INSURED BY THE FDIC OR
ANY OTHER AGENCY, AND INVOLVE INVESTMENT
RISKS, INCLUDING THE 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.
34 OPPENHEIMER INTERNATIONAL SMALL COMPANY FUND
<PAGE> 37
OPPENHEIMERFUNDS FAMILY
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
===========================================================================================================
GLOBAL EQUITY
-----------------------------------------------------------------------------------------------------------
Developing Markets Fund Global Fund
International Small Company Fund Quest Global Value Fund
Europe Fund Global Growth & Income Fund
International Growth Fund
===========================================================================================================
EQUITY
-----------------------------------------------------------------------------------------------------------
Stock Stock & Bond
Emerging Technologies Fund Main Street(R) Growth & Income Fund
Enterprise Fund Quest Opportunity Value Fund
Discovery Fund Total Return Fund
Main Street(R) Small Cap Fund Quest Balanced Value Fund
Quest Small Cap Fund(1) Capital Income Fund
MidCap Fund Multiple Strategies Fund
Main Street(R) Opportunity Fund Disciplined Allocation Fund(2)
Growth Fund Convertible Securities Fund
Capital Appreciation Fund
Large Cap Growth Fund Specialty
Disciplined Value Fund(2) Real Asset Fund(R)
Quest Capital Value Fund Gold & Special Minerals Fund
Quest Value Fund
Trinity Growth Fund
Trinity Core Fund
Trinity Value Fund
===========================================================================================================
FIXED INCOME
-----------------------------------------------------------------------------------------------------------
Taxable Municipal
International Bond Fund California Municipal Fund(3)
World Bond Fund(2) Main Street(R) California Municipal Fund(2,3)
High Yield Fund Florida Municipal Fund(3)
Champion Income Fund New Jersey Municipal Fund(3)
Strategic Income Fund New York Municipal Fund(3)
Bond Fund Pennsylvania Municipal Fund(3)
Senior Floating Rate Fund Municipal Bond Fund
U.S. Government Trust Insured Municipal Fund(2)
Limited-Term Government Fund Intermediate Municipal Fund
Rochester Division
Rochester Fund Municipals
Limited Term New York Municipal Fund
===========================================================================================================
MONEY MARKET(4)
-----------------------------------------------------------------------------------------------------------
Money Market Fund Cash Reserves
</TABLE>
1. The Fund's name changed from "Oppenheimer Quest Small Cap Value Fund" on
5/19/00.
2. The Fund's Board has proposed to reorganize the Fund into another
Oppenheimer fund, subject to shareholder approval.
3. Available to investors only in certain states.
4. An investment in money market funds is neither insured nor guaranteed by
the Federal Deposit Insurance Corporation or any other government agency.
Although these funds may seek to preserve the value of your investment at
$1.00 per share, it is possible to lose money by investing in these funds.
oppenheimer International Small Company Fund This page intentionally left
blank.>
35 OPPENHEIMER INTERNATIONAL SMALL COMPANY FUND
<PAGE> 38
THIS PAGE INTENTIONALLY LEFT BLANK.
<PAGE> 39
<PAGE> 40
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
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--------------------------------------------------------------------------------
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--------------------------------------------------------------------------------
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1.800.843.4461
--------------------------------------------------------------------------------
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on the economy and issues that may affect your investments
1.800.835.3104
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5270, Denver, CO 80217-5270
--------------------------------------------------------------------------------
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RA0815.001.0800 October 30, 2000
