OPPENHEIMER INTERNATIONAL BOND FUND
Supplement Dated January 5, 1996 to the
Prospectus dated December 5, 1995
The following changes are made to the Prospectus:
1. The name "Oppenheimer Management Corporation" is changed to
"OppenheimerFunds, Inc." in "Expenses - Annual Fund Operating Expenses,"
"A Brief Overview of the Fund - Who Manages The Fund," "How the Fund is
Managed - The Manager and Its Affiliates" and the back cover page of the
Prospectus. The name "Oppenheimer Funds Distributor, Inc." is changed to
"OppenheimerFunds Distributor, Inc." in "How the Fund is Managed - The
Distributor," "How to Buy Shares - Buying Shares Through the Distributor"
and the back cover page of the Prospectus. The name "Oppenheimer
Shareholder Services" is changed to "OppenheimerFunds Services" on the
front and back cover pages of the Prospectus, in "How the Fund is Managed
- - the Transfer Agent" and in "How to Sell Shares - Selling Shares by
Mail."
2. In "How to Buy Shares," a new section is added before the section
entitled "Buying Class A Shares," on page 25, as follows:
Special Sales Charge Arrangements for Certain Persons. Appendix
B to this Prospectus sets forth conditions for the waiver of,
or exemption from, sales charges or the special sales charge
rates that apply to purchases of shares of the Fund (including
purchases by exchange) by a person who was a shareholder of one
of the Former Quest for Value Funds (as defined in that
Appendix).
3. In "How to Buy Shares - Buying Class A Shares - Waivers of Class A
Sales Charges - Waivers of Initial and Contingent Deferred Sales Charges
for Certain Purchasers," on pages 27 and 28, the following subsections are
added to the end of that paragraph:
- directors, trustees, officers or full-time employees
of OpCap Advisors or its affiliates, their relatives or any
trust, pension, profit sharing or other benefit plan which
beneficially owns shares for those persons;
- accounts for which Oppenheimer Capital is the
investment adviser (the Distributor must be advised of this
arrangement) and persons who are directors or trustees of the
company or trust which is the beneficial owner of such accounts;
- any unit investment trust that has entered into an
appropriate agreement with the Distributor;
- a TRAC-2000 401(k) plan (sponsored by the former Quest
for Value Advisors) whose Class B or Class C shares of a Former
Quest for Value Fund were exchanged for Class A shares of that
Fund due to the termination of the Class B and C TRAC-2000
program on November 24, 1995; or
- qualified retirement plans that had agreed with the
former Quest for Value Advisors to purchase shares of any of the
Former Quest for Value Funds at net asset value, with such
shares to be held through DCXchange, a sub-transfer agency
mutual fund clearinghouse, provided that such arrangements are
consummated and share purchases commence by March 31, 1996.
4. In "How to Buy Shares - Buying Class A Shares - Waivers of Class A
Sales Charges - Waivers of Initial and Contingent Deferred Sales Charges
in Certain Transactions," on page 28, the following subsection is added
to the end of that paragraph:
- purchased with the proceeds of maturing principal of units of
any Qualified UnitInvestment Liquid Trust Series;
5. "Appendix: Description of Ratings Categories of Rating Services" on
page 43 is renamed to read "Appendix A: Description of Ratings Categories
of Rating Services."
6. The following "Appendix B" is added to the Prospectus after "Appendix
A: Description of Ratings Categories of Rating Services" on page 43:
APPENDIX B
Special Sales Charge Arrangements for Shareholders of the Fund
Who Were Shareholders of the Former Quest for Value Funds
The initial and contingent sales charge rates and waivers
for Class A, Class B and Class C shares of the Fund described
elsewhere in this Prospectus are modified as described below for
those shareholders of (i) Quest for Value Fund, Inc., Quest for
Value Growth and Income Fund, Quest for Value Opportunity Fund,
Quest for Value Small Capitalization Fund and Quest for Value
Global Equity Fund, Inc. on November 24, 1995, when
OppenheimerFunds, Inc. became the investment adviser to those
funds, and (ii) Quest for Value U.S. Government Income Fund,
Quest for Value Investment Quality Income Fund, Quest for Global
Income Fund, Quest for Value New York Tax-Exempt Fund, Quest for
Value National Tax-Exempt Fund and Quest for Value California
Tax-Exempt Fund when those funds merged into various Oppenheimer
funds on November 24, 1995. The funds listed above are referred
to in this Prospectus as the "Former Quest for Value Funds."
The waivers of initial and contingent deferred sales charges
described in this Appendix apply to shares of the Fund (i)
acquired by such shareholder pursuant to an exchange of shares
of one of the Oppenheimer funds that was one of the Former Quest
for Value Funds or (ii) received by such shareholder pursuant
to the merger of any of the Former Quest for Value Funds into
an Oppenheimer fund on November 24, 1995.
Class A Sales Charges
- Reduced Class A Initial Sales Charge Rates for Certain Former
Quest Shareholders
- Purchases by Groups, Associations and Certain Qualified
Retirement Plans. The following table sets forth the initial
sales charge rates for Class A shares purchased by a "Qualified
Retirement Plan" through a single broker, dealer or financial
institution, or by members of "Associations" formed for any
purpose other than the purchase of securities if that Qualified
Retirement Plan or that Association purchased shares of any of
the Former Quest for Value Funds or received a proposal to
purchase such shares from OCC Distributors prior to November 24,
1995. For this purpose only, a "Qualified Retirement Plan"
includes any 401(k) plan, 403(b) plan, and SEP/IRA or IRA plan
for employees of a single employer.
<TABLE>
<CAPTION>
Front-End Front-End
Sales Sales Commission
Charge Charge as
as a as a Percentage
Number of Percentage Percentage of
Eligible Employees of Offering of Amount Offering
or Members Price Invested Price
<S> <C> <C> <C>
9 or fewer 2.50% 2.56% 2.00%
At least 10 but not
more than 49 2.00% 2.04% 1.60%
</TABLE>
For purchases by Qualified Retirement plans and
Associations having 50 or more eligible employees or members,
there is no initial sales charge on purchases of Class A shares,
but those shares are subject to the Class A contingent deferred
sales charge described on pages 27 through 29 of this
Prospectus.
Purchases made under this arrangement qualify for the lower
of the sales charge rate in the table based on the number of
eligible employees in a Qualified Retirement Plan or members of
an Association or the sales charge rate that applies under the
Rights of Accumulation described above in the Prospectus. In
addition, purchases by 401(k) plans that are Qualified
Retirement Plans qualify for the waiver of the Class A initial
sales charge if they qualified to purchase shares of any of the
Former Quest For Value Funds by virtue of projected
contributions or investments of $1 millon or more each year.
Individuals who qualify under this arrangement for reduced sales
charge rates as members of Associations, or as eligible
employees in Qualified Retirement Plans also may purchase shares
for their individual or custodial accounts at these reduced
sales charge rates, upon request to the Fund's Distributor.
- Special Class A Contingent Deferred Sales Charge Rates
Class A shares of the Fund purchased by exchange of shares of
other Oppenheimer funds that were acquired as a result of the
merger of Former Quest for Value Funds into those Oppenheimer
funds, and which shares were subject to a Class A contingent
deferred sales charge prior to November 24, 1995 will be subject
to a contingent deferred sales charge at the following rates:
if they are redeemed within 18 months of the end of the calendar
month in which they were purchased, at a rate equal to 1.0% if
the redemption occurs within 12 months of their initial purchase
and at a rate of 0.50 of 1.0% if the redemption occurs in the
subsequent six months. Class A shares of any of the Former
Quest Fund for Value Funds purchased without an initial sales
charge on or before November 22, 1995 will continue to be
subject to the applicable contingent deferred sales charge in
effect as of that date as set forth in the then-current
prospectus for such fund.
- Waiver of Class A Sales Charges for Certain Shareholders
Class A shares of the Fund purchased by the following investors
are not subject to any Class A initial or contingent deferred
sales charges:
- Shareholders of the Fund who were shareholders of the AMA
Family of Funds on February 28, 1991 and who acquired shares of
any of the Former Quest for Value Funds by merger of a portfolio
of the AMA Family of Funds.
- Shareholders of the Fund who acquired shares of any
Former Quest for Value Fund by merger of any of the portfolios
of the Unified Funds.
- Waiver of Class A Contingent Deferred Sales Charge in Certain
Transactions
The Class A contingent deferred sales charge will not apply to
redemptions of Class A shares of the Fund purchased by the
following investors who were shareholders of any Former Quest
for Value Fund:
- Investors who purchased Class A shares from a dealer that
is or was not permitted to receive a sales load or redemption
fee imposed on a shareholder with whom that dealer has a
fiduciary relationship under the Employee Retirement Income
Security Act of 1974 and regulations adopted under that law.
- Participants in Qualified Retirement Plans that purchased
shares of any of the Former Quest For Value Funds pursuant to
a special "strategic alliance" with the distributor of those
funds. The Fund's Distributor will pay a commission to the
dealer for purchases of Fund shares as described above in "Class
A Contingent Deferred Sales Charge."
Class A, Class B and Class C Contingent Deferred Sales Charge Waivers
- Waivers for Redemptions of Shares Purchased Prior to March
6, 1995
In the following cases, the contingent deferred sales charge
will be waived for redemptions of Class A, B or C shares of the
Fund acquired by merger of a Former Quest for Value Fund into
the Fund or by exchange from an Oppenheimer fund that was a
Former Quest for Value Fund or into which such fund merged, if
those shares were purchased prior to March 6, 1995: in
connection with (i) distributions to participants or
beneficiaries of plans qualified under Section 401(a) of the
Internal Revenue Code or from custodial accounts under
Section 403(b)(7) of the Code, Individual Retirement Accounts,
deferred compensation plans under Section 457 of the Code, and
other employee benefit plans, and returns of excess
contributions made to each type of plan, (ii) withdrawals under
an automatic withdrawal plan holding only either Class B or C
shares if the annual withdrawal does not exceed 10% of the
initial value of the account, and (iii) liquidation of a
shareholder's account if the aggregate net asset value of shares
held in the account is less than the required minimum value of
such accounts.
- Waivers for Redemptions of Shares Purchased on or After March
6, 1995 but Prior to November 24, 1995.
In the following cases, the contingent deferred sales charge
will be waived for redemptions of Class A, B or C shares of the
Fund acquired by merger of a Former Quest for Value Fund into
the Fund or by exchange from an Oppenheimer fund that was a
Former Quest For Value Fund or into which such fund merged, if
those shares were purchased on or after March 6, 1995, but prior
to November 24, 1995: (1) distributions to participants or
beneficiaries from Individual Retirement Accounts under
Section 408(a) of the Internal Revenue Code or retirement plans
under Section 401(a), 401(k), 403(b) and 457 of the Code, if
those distributions are made either (a) to an individual
participant as a result of separation from service or
(b) following the death or disability (as defined in the Code)
of the participant or beneficiary; (2) returns of excess
contributions to such retirement plans; (3) redemptions other
than from retirement plans following the death or disability of
the shareholder(s) (as evidenced by a determination of total
disability by the U.S. Social Security Administration);
(4) withdrawals under an automatic withdrawal plan (but only for
Class B or C shares) where the annual withdrawals do not exceed
10% of the initial value of the account; and (5) liquidation of
a shareholder's account if the aggregate net asset value of
shares held in the account is less than the required minimum
account value. A shareholder's account will be credited with
the amount of any contingent deferred sales charge paid on the
redemption of any Class A, B or C shares of the Fund described
in this section if within 90 days after that redemption, the
proceeds are invested in the same Class of shares in this Fund
or another Oppenheimer fund.
Special Dealer Arrangements
Dealers who sold Class B shares of a Former Quest for Value Fund
to Quest for Value prototype 401(k) plans that were maintained
on the TRAC-2000 recordkeeping system and that were transferred
to an OppenheimerFunds prototype 401(k) plan shall be eligible
for an additional one-time payment by the Distributor of 1% of
the value of the plan assets transferred, but that payment may
not exceed $5,000 as to any one plan.
Dealers who sold Class C shares of a Former Quest for Value Fund
to Quest for Value prototype 401(k) plans that were maintained
on the TRAC-2000 recordkeeping system and (i) the shares held
by those plans were exchanged for Class A shares, or (ii) the
plan assets were transferred to an OppenheimerFunds prototype
401(k) plan, shall be eligible for an additional one-time
payment by the Distributor of 1% of the value of the plan assets
transferred, but that payment may not exceed $5,000.
January 5, 1996
