<PAGE>
1995 SEMIANNUAL REPORT
INTERNATIONAL BOND FUND
- -------------------------------------------------------------------
June 30, 1995
RS0880.001.0695
<PAGE>
DEAR SHAREHOLDER:
Thank you for your recent investment in Oppenheimer International
Bond Fund -- a new fund designed to take advantage of outstanding
international growth and income opportunities over the long term.
As the global economy continues to develop and expand, the Fund's
investment opportunities increase as well. For example, investing
in international bonds was once limited primarily to developed
nations such as Europe and Asia, whose markets tend to be somewhat
closely correlated to ours. Today, the marketplace has expanded to
include emerging growth countries with high return potential, such
as the Czech Republic, Malaysia and Brazil, whose markets tend to
be less closely tied to the U.S. market.
By diversifying the portfolio with a carefully selected blend of
developed and emerging market bonds, Oppenheimer International Bond
Fund expands the concept of foreign bond investing by benefiting
from the potential of each market while seeking to manage the
special risks associated with foreign bonds. It's a strategy that
provides the opportunity to diversify your holdings geographically,
thereby reducing your overall risk because bond markets typically
don't rise or fall simultaneously. This diversification is so
important because international securities involve significant
risks, including political and economic uncertainties as well as
currency rate fluctuations.
We believe the current environment offers outstanding opportunities
as foreign bond markets have lagged the U.S. markets year-to-date
and are poised to catch up to U.S. bonds. As you may know, bond
markets usually react favorably to slower growth being experienced
by many industrialized countries because it reduces the prospects
for inflation -- and as central banks in developed nations cut
rates to stimulate growth, bonds will benefit. And in emerging
markets, international confidence has been restored a great deal
after the volatile performance of emerging market debt following
the Mexican peso devaluation in 1994.
Oppenheimer Management's fixed income investment team will continue
to monitor the economy and market conditions of a broad range of
foreign countries to keep ahead of significant events. We believe
a flexible total return orientation, in addition to this year's
expected strong capital appreciation, justify a positive outlook
for fixed income investments across the board and particularly
overseas.
Thank you for your confidence in OppenheimerFunds and Oppenheimer
International Bond Fund. We look forward to helping you reach your
investment goals in the future.
Sincerely,
/s/ Jon S. Fossel
Jon S. Fossel
President, Oppenheimer
International Bond Fund
/s/ James C. Swain
James C. Swain
Chairman, Oppenheimer
International Bond Fund
July 24, 1995
<PAGE>
STATEMENT OF INVESTMENTS June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT(1) SEE NOTE 1
<S> <C> <C>
==============================================================================================
CERTIFICATES OF DEPOSIT - 2.9%
- ----------------------------------------------------------------------------------------------
First Boston Corp., 12.50% CD, 12/21/95 (2)(3)ARA 30,000 $ 30,009
----------------------------------------------------------------------------------------
Indonesia (Republic of) CD, Bank Negara,
Zero Coupon, 6/17/96 (3)IDR 50,000,000 19,168
-------------
Total Certificates of Deposit
(Cost $49,381) 49,177
FOREIGN GOVERNMENT OBLIGATIONS - 83.1%
ARGENTINA - 5.2%
Argentina (Republic of) Par Bonds,
5%, 3/31/23 (4) 185,000 88,569
AUSTRALIA - 5.7%
New South Wales Treasury Corp. Gtd. Bonds,
12%, 12/1/01 AUD 70,000 56,725
Treasury Corp. of Victoria Gtd. Bonds,
12%, 9/22/01 AUD 50,000 40,327
--------
97,052
BRAZIL - 5.1%
Banco do Estado de Sao Paulo SA, 9.25% Sr.
Debs., 10/4/96 20,000 18,875
Brazil (Federal Republic of) Nts., Banco
Estado Minas Gerais, 7.875%, 2/10/99 (2) 10,000 7,900
Brazil (Federal Republic of) Par Bonds,
4.25%, 4/15/24 (5) 100,000 44,625
Brazil (Federal Republic of) Interest Due
and Unpaid Bonds, 7.813%, 1/1/01 (5) 19,400 15,653
-------
87,053
BULGARIA - 3.7%
Bulgaria (Republic of) Interest Arrears
Bonds, 7.562%, 7/28/11 (5) 150,000 63,094
CANADA - 2.5%
Canada (Government of) Bonds, Series A33,
11.50%, 9/1/00 CAD 50,000 42,394
DENMARK - 5.5%
Denmark (Kingdom of) Bonds, 7%, 11/10/24 DKK 640,000 93,256
ECUADOR - 2.2%
Ecuador (Republic of) Bonds,
7.25%, 2/28/25 (5) 75,000 37,500
FRANCE - 1.5%
France (Government of) Bonds, Obligation
Assimilable du Tresor STRIPS, Zero Coupon,
4/25/02 FRF 200,000 25,147
GERMANY - 6.1%
Germany (Republic of) Debs., Bundespost
Deutscheland, 7.75%, 10/1/04 DEM 140,000 104,485
GREAT BRITAIN - 4.4%
United Kingdom Treasury Nts., 13%, 7/14/00 GBP 40,000 75,767
ITALY - 2.1%
Italy (Republic of) Treasury Bonds, Buoni
del Tesoro Poliennali, 12%, 1/17/99 ITL 35,000,000 21,402
Italy (Republic of) Treasury Bonds, Buoni
del Tesoro Poliennali, 12%, 5/18/99 ITL 25,000,000 15,264
------
36,666
MEXICO - 5.3%
Banco Nacional de Comercio Exterior SNC
International Finance BV Gtd. Matador
Bonds, 10.875%, 6/23/97 (2)(5) 10,000 9,988
Banco Nacional de Obras y Servicios
Publicos SA Nts., 10.75%, 8/16/96 70,000 69,738
Bonos de la Tesoreria de la Federacion,
Zero Coupon, 8/10/95 10,000 9,874
-------
89,600
MOROCCO - 3.4%
Morocco (Kingdom of) Loan Participation
Agreement, Tranche A, 7.375%, 1/1/09 (5) 100,000 58,250
</TABLE>
3 Oppenheimer International Bond Fund
<PAGE>
STATEMENT OF INVESTMENTS (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT(1) SEE NOTE 1
<S> <C> <C>
FOREIGN GOVERNMENT OBLIGATIONS (CONTINUED)
NEW ZEALAND - 10.3%
New Zealand (Republic of) Bonds,
10%, 3/15/02 NZD 30,000 $ 22,551
New Zealand (Republic of) Bonds, 10%,
7/15/97 NZD 220,000 152,111
--------
174,662
NORWAY - 4.1%
Norwegian Government Bonds, 7%, 5/31/01 NOK 440,000 69,758
POLAND - 2.3%
Poland (Republic of) Disc. Bonds,
7.125%, 10/27/24 (5) 50,000 38,406
PORTUGAL - 6.0%
Portugal (Republic of) Gtd. Bonds,
Obrigicion do tes Medio Prazo,
12.50%, 1/23/98 PTE 14,500,000 101,437
SPAIN - 6.8%
Spain (Kingdom of) Bonds, 11.45%, 8/30/98 ESP 14,000,000 115,478
SWEDEN - 0.9%
Sweden (Kingdom of) Bonds, Series 1030,
13%, 6/15/01 SEK 100,000 15,124
------------
Total Foreign Government Obligations
(Cost $1,410,349) 1,413,698
CORPORATE BONDS AND NOTES - 3.0%
FINANCIAL SERVICES - 1.5%
BANKS & THRIFTS - 1.1%
Banco Ganadero SA, Zero Coupon Sr. Unsub.
Unsec. Nts., 6/16/96 (2) 10,000 9,116
Morgan Stanley Group, 14.25% Indian Rupee
Indexed Nts., 6/26/96 (3)INR 314,100 10,003
----------
19,119
DIVERSIFIED FINANCIAL - 0.4%
Banco del Atlantico SA, 7.875% Eurobonds,
11/5/98 10,000 7,550
UTILITIES - 1.5%
New Zealand Electric Corp., 10% Debs.,
10/15/01 NZD 35,000 25,420
-----------
Total Corporate Bonds and Notes
(Cost $52,268) 52,089
TOTAL INVESTMENTS, AT VALUE
(COST $1,511,998) 89.0% 1,514,964
OTHER ASSETS NET OF LIABILITIES 11.0 186,562
----- -----------
NET ASSETS 100.0% $ 1,701,526
===== ===========
1. Face amount is reported in local currency. Foreign currency abbreviations
are as follows:
ARA - Argentine Austral IDR - Indonesian Rupiah
AUD - Australian Dollar INR - Indian Rupee
CAD - Canadian Dollar ITL - Italian Lira
DEM - German Deutsche Mark NOK - Norwegian Krone
DKK - Danish Krone NZD - New Zealand Dollar
ESP - Spanish Peseta PTE - Portugese Escudo
FRF - French Franc SEK - Swedish Krona
GBP - British Pound Sterling
2. Represents a security sold under Rule 144A, which is exempt
from registration under the Securities Act of 1933, as amended. This
security has been determined to be liquid under guidelines established
by the Board of Trustees. These securities amount to $57,013 or 3.35%
of the Fund's net assets, at June 30, 1995.
3. Indexed instrument for which the principal amount and/or interest
due at maturity is affected by the relative value of a foreign currency.
4. Represents the current interest rate for an increasing rate security.
5. Represents the current interest rate for a variable rate security.
See accompanying Notes to Financial Statements.
</TABLE>
4 Oppenheimer International Bond Fund
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES June 30, 1995 (Unaudited)
<TABLE>
<S> <C> <C>
ASSETS
Investments, at value (cost $1,511,998)
- see accompanying statement $1,514,964
Cash 148,349
Unrealized appreciation on forward foreign
exchange contracts - Note 5 94
Receivables:
Investments sold 168,134
Interest and dividends 57,255
Shares of beneficial interest sold 47,678
Other 1,241
----------
Total assets 1,937,715
==========
LIABILITIES
Payables and other liabilities:
Investments purchased 228,471
Dividends 6,003
Shares of beneficial interest redeemed 300
Other 1,415
----------
Total liabilities 236,189
----------
NET ASSETS $1,701,526
==========
COMPOSITION OF
NET ASSETS
Paid-in capital $1,702,293
Overdistributed net investment income (2,128)
Accumulated net realized loss from
investment transactions (1,702)
Net unrealized appreciation on investments and
translation of assets and liabilities
denominated in foreign currencies 3,063
----------
Net assets $1,701,526
==========
NET ASSET VALUE
PER SHARE
Class A Shares:
Net asset value and redemption price per share
(based on net assets of $1,661,378 and 332,505
shares of beneficial interest outstanding) $ 5.00
Maximum offering price per share
(net asset value plus sales charge of
4.75% of offering price) $5.25
Class B Shares:
Net asset value, redemption price and offering
price per share (based on net assets of $5,999 and
1,200 shares of beneficial interest outstanding) $5.00
Class C Shares:
Net asset value, redemption price and offering
price per share (based on net assets of $34,149 and
6,836 shares of beneficial interest outstanding) $5.00
</TABLE>
See accompanying Notes to Financial Statements.
5 Oppenheimer International Bond Fund
<PAGE>
STATEMENT OF OPERATIONS
For the Period from June 15, 1995
(commencement of operations) to June 30, 1995 (Unaudited)
<TABLE>
<S> <C> <C>
INVESTMENT
INCOME
Interest income $ 4,463
--------
EXPENSES
Management fees - Note 4 410
Other 178
--------
Net expenses 588
NET INVESTMENT INCOME 3,875
--------
REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND
FOREIGN CURRENCY
TRANSACTIONS
Net realized gain (loss) from:
Investments (1,704)
Foreign currency transactions 2
-------
Net realized loss (1,702)
-------
Net change in unrealized appreciation
or depreciation on:
Investments 803
Translation of assets and liabilities
denominated in foreign currencies 2,260
-----
Net change 3,063
-----
Net realized and unrealized gain on
investments and foreign currency
transactions 1,361
-----
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 5,236
=======
</TABLE>
See accompanying Notes to Financial Statements.
6 Oppenheimer International Bond Fund
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Period Ended
June 30, 1995(1)
(Unaudited)
<S> <C> <C>
Operations Net investment income $ 3,875
Net realized loss on investments
and foreign currency transactions (1,702)
Net change in unrealized appreciation
or depreciation on investments and
translation of assets and liabilities
denominated in foreign currencies 3,063
-------
Net increase in net assets resulting
from operations 5,236
-------
DIVIDENDS TO
SHAREHOLDERS
Dividends from net investment income:
Class A ($.021 per share) (5,956)
Class B ($.020 per share) (11)
Class C ($.020 per share) (36)
BENEFICIAL INTEREST
TRANSACTIONS Net increase in net assets
resulting from Class A
beneficial interest
transactions - Note 2 1,662,165
Net increase in net assets
resulting from Class B
beneficial interest
transactions - Note 2 6,000
Net increase in net assets
resulting from Class C
beneficial interest
transactions - Note 2 34,128
--------
NET ASSETS Total increase 1,701,526
Beginning of period --
---------
End of period $1,701,526
==========
1. For the period from June 15, 1995 (commencement of operations) to June
30, 1995.
</TABLE>
See accompanying Notes to Financial Statements.
7 Oppenheimer International Bond Fund
<PAGE>
FINANCIAL HIGHLIGHTS For the period from June 15, 1995
(commencement of operations)to June 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C
PERIOD ENDED PERIOD ENDED PERIOD ENDED
JUNE 30, 1995 JUNE 30, 1995 JUNE 30,1995
<S> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $ 5.00 $ 5.00 $ 5.00
Income (loss) from investment operations:
Net investment income .02 .02 .02
Net realized and unrealized loss on
investments and foreign currency
transactions -- -- --
------ ------- -----
Total income from investment operations .02 .02 .02
------ ------- -----
Dividends to shareholders from net investment
income (.02) (.02) (.02)
Net asset value, end of period $ 5.00 $ 5.00 $ 5.00
======= ======= ======
TOTAL RETURN, AT NET ASSET VALUE(1) .45% .45% .45%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $1,661 $6 $34
Average net assets (in thousands) $1,343 $3 $8
Number of shares outstanding at end of period
(in thousands) 333 1 7
Ratios to average net assets(2):
Net investment income 6.52% 7.02% 7.73%
Expenses .99% 1.58% 1.63%
Portfolio turnover rate(3) 15.0% 15.0% 15.0%
1. Assumes a hypothetical initial investment on the business day before 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.
2. Annualized.
3. 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 June 30, 1995 were $1,628,816 and $163,873, respectively.
</TABLE>
See accompanying Notes to Financial Statements.
8 Oppenheimer International Bond Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
1.SIGNIFICANT ACCOUNTING
POLICIES
Oppenheimer International Bond Fund (the Fund), is a registered investment
company organized as a Massachusetts Business Trust with a single series of
the same name. The Fund is registered as a diversified, open-end management
investment company under the Investment Company Act of 1940, as amended. The
Fund's investment advisor is Oppenheimer Management Corporation (the
Manager). The Fund offers Class A, Class B and Class C shares. Class B and
Class C shares may be subject to a contingent deferred sales charge. All
three classes of shares have identical rights to earnings, assets and voting
privileges, except that each class has its own distribution and/or service
plan, expenses directly attributable to a particular class and exclusive
voting rights with respect to matters affecting a single class. 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.
INVESTMENT VALUATION. Portfolio securities are valued at the close of the
New York Stock Exchange on each trading day. Listed and unlisted securities
for which such information is regularly reported are valued at the last sale
price of the day or, in the absence of sales, at values based on the closing
bid or asked price or the last sale price on the prior trading day. Long-
term and short-term "non-money market" debt securities are valued by a
portfolio pricing service approved by the Board of Trustees. Such securities
which cannot be valued by the approved portfolio pricing service are valued
using dealer-supplied valuations provided the Manager is satisfied that the
firm rendering the quotes is reliable and that the quotes reflect current
market value, or under consistently applied procedures established by the
Board of Trustees to determine fair value in good faith. Short-term "money
market type" debt securities having a remaining maturity of 60 days or less
are valued at cost (or last determined market value) adjusted for
amortization to maturity of any premium or discount. Forward 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 or dealer. Options are valued based upon the last sale price
on the principal exchange on which the option is traded or, in the absence of
any transactions that day, the value is based upon the last sale price on the
prior trading date if it is within the spread between the closing bid and
asked prices. If the last sale price is outside the spread, the closing bid
or asked price closest to the last reported sale price is used.
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 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 results 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 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 AND GAINS AND LOSSES. Income, expenses (other
than those attributable to a specific class) and 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.
9 Oppenheimer International Bond Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued)
1.SIGNIFICANT
ACCOUNTING POLICIES (CONTINUED)
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 tax or excise provision is required.
DISTRIBUTIONS TO SHAREHOLDERS. The Fund intends to declare dividends
separately for Class A, Class B and Class C shares from net investment income
each day the New York Stock Exchange is open for business and pay such
dividends monthly. Distributions from net realized gains on investments, if
any, will be declared at least once each year.
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 paydown gains (losses), and the recognition
of certain foreign currency gains (losses) as ordinary income (loss) for tax
purposes. The character of the distributions made during the year from net
investment income or net realized gains may differ from their ultimate
characterization for federal income tax purposes. Also, due to timing of
dividend distributions, the fiscal year in which amounts are distributed may
differ from the year that the income or realized gain (loss) was recorded by
the Fund.
OTHER. Investment transactions are accounted for on the date the investments
are purchased or sold (trade date) and dividend income is recorded on the ex-
dividend date. Discount on securities purchased is amortized over the life
of the respective securities, in accordance with federal income tax
requirements. Realized gains and losses on investments and options written
and unrealized appreciation and depreciation are determined on an identified
cost basis, which is the same basis used for federal income tax purposes.
Dividends in kind are recognized as income on the ex-dividend date, at the
current market value of the underlying security. Interest on payment-in-kind
debt instruments is accrued as income at the coupon rate and a market
adjustment is made on the ex-date.
2.SHARES OF BENEFICIAL INTEREST
The Fund has authorized an unlimited number of no par value shares of
beneficial interest. Transactions in shares of beneficial interest were as
follows:
PERIOD ENDED
JUNE 30, 1995(1)
SHARES AMOUNT
Class A:
Sold 332,565 $1,662,465
Redeemed (60) (300)
-------- ---------
Net increase 332,505 $1,662,165
======== =========
Class B:
Sold 1,200 $ 6,000
Redeemed -- --
------ -------
Net increase 1,200 $ 6,000
====== =======
Class C:
Sold 6,836 $34,128
Redeemed -- --
----- -------
Net increase 6,836 $34,128
===== =======
1. For the period from June 15, 1995 (commencement of operations) to June
30, 1995.
3.UNREALIZED GAINS AND LOSSES
ON INVESTMENTS
At June 30, 1995, net unrealized appreciation of investments of $2,966 was
composed of gross appreciation of $9,174, and gross depreciation of $6,208.
10 Oppenheimer International Bond Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued)
4.MANAGEMENT FEES AND OTHER
TRANSACTIONS WITH AFFILIATES
Management fees paid to the Manager were in accordance with the investment
advisory agreement with the Fund which provides for an annual fee of .75% on
the first $200 million of net assets with a reduction of .03% on each $200
million thereafter to $800 million, .60% on the next $200 million and .50% on
net assets in excess of $1 billion. The Manager has agreed to reimburse the
Fund if aggregate expenses (with specified exceptions) exceed the most
stringent state regulatory limit on Fund expenses.
For the period ended June 30, 1995, commissions (sales charges paid by
investors) on sales of Class A shares totaled $1,078, of which $24 was
retained by Oppenheimer Funds Distributor, Inc. (OFDI), a subsidiary of the
Manager, as general distributor, and by an affiliated broker/dealer.
Oppenheimer Shareholder Services (OSS), a division of the Manager, is the
transfer and shareholder servicing agent for the Fund, and for other
registered investment companies. OSS's total costs of providing such
services are allocated ratably to these companies.
Under separate approved plans, each class may expend up to .25% of its net
assets annually to reimburse OFDI for costs incurred in connection with the
personal service and maintenance of accounts that hold shares of the Fund,
including amounts paid to brokers, dealers, banks and other institutions. In
addition, Class B and Class C shares are subject to an asset-based sales
charge of .75% of net assets annually, to reimburse OFDI for sales
commissions paid from its own resources at the time of sale and associated
financing costs. In the event of termination or discontinuance of the Class
B or Class C plan, the Board of Trustees may allow the Fund to continue
payment of the asset-based sales charge to OFDI for distribution expenses
incurred on Class B or Class C shares sold prior to termination or
discontinuance of the plan.
5.FORWARD FOREIGN CURRENCY CONTRACTS
A forward foreign currency exchange contract (forward contract) is a
commitment to purchase or sell a foreign currency at a future date, at a
negotiated rate.
The Fund uses forward contracts to seek to manage foreign currency risks.
They may also be used to tactically shift portfolio currency risk. The Fund
generally enters into forward contracts as a hedge upon the purchase or sale
of a security denominated in a foreign currency. In addition, the Fund may
enter into such contracts as a hedge against changes in foreign currency
exchange rates on portfolio positions.
Forward 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 or dealer. The Fund will realize a gain
or loss upon the closing or settlement of the forward transaction.
In this report, securities held in segregated accounts to cover net exposure
on outstanding forward contracts are noted in the Statement of Investments
where applicable. Gains and losses on outstanding contracts (unrealized
appreciation or depreciation on forward contracts) are reported in the
Statement of Assets and Liabilities. Realized gains and losses are reported
with all other foreign currency gains and losses in the Fund's Statement of
Operations.
11 Oppenheimer International Bond Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued)
5.FORWARD FOREIGN CURRENCY CONTRACTS (CONTINUED)
Risks include the potential inability of the counterparty to meet the terms
of the contract and unanticipated movements in the value of a foreign
currency relative to the U.S. dollar.
At June 30, 1995, the Fund had outstanding forward contracts to purchase and
sell foreign currencies as follows:
VALUATION UNREALIZED
CONTRACTS EXPIRATION CONTRACT AS OF APPRECIATION
TO PURCHASE DATE AMOUNT(000s) JUNE 30, 1995 (DEPRECIATION)
Australian
Dollar 7/7/95 55 $ 39,302 $ (115)
German
Deutsche Mark 8/3/95 114 82,645 (325)
---------- ----------
$121,947 (440)
========== ----------
CONTRACTS
TO SELL
British
Pound Sterling 7/5/95 3 $ 4,056 $ 139
Norwegian
Krone 7/7/95 187 30,344 35
Spanish Peseta 8/3/95 10,000 82,285 360
---------- --------
$116,685 534
========== --------
Net Unrealized Appreciation $ 94
========
12 Oppenheimer International Bond Fund
<PAGE>
OPPENHEIMER INTERNATIONAL BOND FUND
OFFICERS AND TRUSTEES
James C. Swain, Chairman and Chief Executive Officer
Robert G. Avis, Trustee
William A. Baker, Trustee
Charles Conrad, Jr., Trustee
Jon S. Fossel, Trustee and President
Raymond J. Kalinowski, Trustee
C. Howard Kast, Trustee
Robert M. Kirchner, Trustee
Ned M. Steel, Trustee
Andrew J. Donohue, Vice President
Ashwin Vasan, Vice President
George C. Bowen, Vice President, Secretary, and Treasurer
Robert J. Bishop, Assistant Treasurer
Scott Farrar, Assistant Treasurer
Robert G. Zack, Assistant Secretary
INVESTMENT ADVISOR
Oppenheimer Management Corporation
DISTRIBUTOR Oppenheimer Funds Distributor, Inc.
TRANSFER AND Oppenheimer Shareholder Services
SHAREHOLDER
SERVICING AGENT
CUSTODIAN OF The Bank of New York
PORTFOLIO SECURITIES
INDEPENDENT AUDITORS
Deloitte & Touche LLP
LEGAL COUNSEL Myer, Swanson, Adams & Wolf, P.C.
The financial statements included herein have been taken from the records of
the Fund without examination by the independent auditors.
This is a copy of a report to shareholders of Oppenheimer International Bond
Fund. This report must be preceded or accompanied by a Prospectus of
Oppenheimer International Bond 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.
13 Oppenheimer International Bond Fund
