Annual Report 4/30/2017. Oppenheimer Global Value Fund

Transcription

1 Annual Report 4/30/2017 Oppenheimer Global Value Fund

2 Table of Contents Fund Performance Discussion 3 Top Holdings and Allocations 7 Fund Expenses 10 Statement of Investments 12 Statement of Assets and Liabilities 15 Statement of Operations 17 Statements of Changes in Net Assets 18 Financial Highlights 19 Notes to Financial Statements 24 Report of Independent Registered Public Accounting Firm 37 Federal Income Tax Information 38 Portfolio Proxy Voting Policies and Guidelines; Updates to Statement of Investments 39 Trustees and Officers 40 Privacy Policy Notice 46 Class A Shares AVERAGE ANNUAL TOTAL RETURNS AT 4/30/17 Class A Shares of the Fund Without Sales Charge With Sales Charge MSCI All Country World Index 1-Year 16.51% 9.81% 15.14% 5-Year Since Inception (10/1/07) Performance data quoted represents past performance, which does not guarantee future results. The 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 their original cost. Fund returns include changes in share price, reinvested distributions, and a 5.75% maximum applicable sales charge except where without sales charge is indicated. Current performance may be lower or higher than the performance quoted. Returns do not consider capital gains or income taxes on an individual's investment. For performance data current to the most recent month-end, visit oppenheimerfunds.com or call CALL OPP ( ). See Fund prospectuses and summary prospectuses for more information on share classes and sales charges. 2 OPPENHEIMER GLOBAL VALUE FUND

3 Fund Performance Discussion During the one-year reporting period ended April 30, 2017, the Fund s Class A shares (without sales charge) rose 16.51% compared to the MSCI All Country World Index (the Index ), which rose 15.14%. The Fund outperformed the Index in 9 out of 11 sectors, led by stock selection in the consumer discretionary and telecommunication services sectors, and the Fund s lack of exposure to the consumer staples sectors. The Fund underperformed the Index in information technology and financials, where stock selection detracted from performance. It is important to remember that we are stock pickers, pure and simple. We often think thematically about what is going on in the world and how various companies can benefit in our efforts to find good investments. We follow a simple philosophy that we call The Three Questions : 1) Is the business worth owning, ever?, 2) At what price?, 3) Is the management team working for shareholders? We spend little time thinking about the macro economy. We don t have a forecast for the economy and think efforts in that regard would be wasted time. We spend no time thinking about the Index and allocation of assets by country or sector. What we do think about is owning the right businesses at the right prices, making sure management teams are working for our shareholders, and putting the holdings together in a way that we believe can optimize performance. Portfolio COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN: Oppenheimer Global Value Fund (Class A shares with sales charge) MSCI All Country World Index $20,000 15,000 $15,329 $13,421 10,000 5, /1/07 4/30/09 4/30/10 4/30/11 4/30/12 4/30/13 4/30/14 4/30/15 4/30/16 4/30/17 3 OPPENHEIMER GLOBAL VALUE FUND

4 construction is a very serious consideration. We don t think about allocation by sector or country because we believe they add little to the outcome. Our approach to portfolio construction is focused on managing the risks of individual stocks and seeking to provide a good balance of upside opportunities and downside protection. The beginning months of 2017 continued the market strength that began post the U.S. election. Within the equity markets, the run up for energy stalled in the first quarter and the miners did not outperform the market by much, which was a big shift from the last three quarters of Emerging markets continued to perform particularly well. MARKET OVERVIEW 2016 was comprised of two very different halves. The first half was marked by volatility and generally terrible sentiment with regards to stocks and future growth prospects. Concerns over China s outlook, shrinking oil prices and a lack of growth everywhere kept a heavy weight on overall equity markets. The UK s decision in June to leave the European Union punctuated the first half with an air of doom as global markets dropped precipitously. The pound also plunged to its lowest level in over 30 years as the uncertainty of the event was factored into investors minds. The second half of 2016 was decidedly better, which benefited the Fund over this reporting period. Sentiment shifted as investors viewed the same lowgrowth world through a less-panicked lens. Energy recovered and economic activity showed modest signs of recovery. The U.S. election outcome added fuel to an already burning fire as pro-growth possibilities of the incoming administration shifted sentiment dramatically. Developed markets continued to rise in 2016 following the U.S. election, marked most notably by financials broadly. FUND REVIEW Top performing stocks during the reporting period included E. W. Scripps Co., Alibaba Group Holding Ltd. and Nexstar Media Group, Inc. We trimmed our positions in E.W. Scripps and Nexstar Media Group as the price appreciation in the names was substantial and the position sizes required adjustment. E.W. Scripps Company is an owner of 33 local TV stations in the U.S. along with 34 radio stations, digital assets and syndication as well. The stock was weak for much of 2016, giving us the opportunity to purchase it at an attractive price. The subsequent shift in political winds at the FCC following the Presidential election led to a substantial rally in the shares. Alibaba Group Holding has a lot of ways to win in our view. To put Alibaba in perspective: they are the largest e-commerce company in the largest potential market in the world. Their markets consist of very little organized retail competition. Their markets remain under-penetrated in terms of high-speed broadband penetration, smart phone adoption, and internet usage. These are the 4 OPPENHEIMER GLOBAL VALUE FUND

5 things that drove the flywheel at Amazon user base rising as smart phone adoption and internet usage rise, and buying a greater portion of their overall basket via e-commerce. The key difference here is that numerous retail chains in every category had a 75 year head start in the United States. That doesn t exist in China. As a result, we believe Alibaba can have an easier time achieving dominance. The company also has the opportunity to be dominant in numerous other adjacencies such as financial transactions (Ant Financial), payment processing, cloud computing, video services and advertising. During the reporting period, the company announced fourth quarter 2016 results towards the end of January and exceeded analyst expectations when it reported a 54% rise in revenue. The company raised fiscal year 2017 revenue guidance to 53% year-over-year, up from previous guidance of 48%. The company also announced a new retail initiative whereby they will harness the big data they capture online and will apply it to the highly fragmented offline ecosystem in China. There are numerous opportunities to expand their footprint to other regions within China s sphere. Alibaba is already pursuing such a strategy. Nexstar Broadcasting Group was a local station broadcaster we invested in after they acquired one of our holdings, Media General. The combined entity is called Nexstar Media Group. We believe there are deal synergies to be captured with the Media General buy. Detractors during the reporting period included Restoration Hardware, Rocket Internet SE and Endo International plc. We exited our positions in Restoration Hardware and Rocket Internet. Though we continue to believe in the quality of what Restoration Hardware offers its customers, our concerns about the strength of its balance sheet took it out of consideration for our portfolio. We sold Rocket Internet this reporting period as we viewed management as ineffective. We established a position in Endo International during the reporting period. Endo International is a generic drug company that became over-leveraged from a string of acquisitions. The company basically has a debt problem that we view as solvable. New management now has priorities that are in line with our thoughts on taking the company forward, and we believe the value to be gained appears substantial. STRATEGY & OUTLOOK Thinking about long-term business outcomes and making money with money requires a combination of things, including a dose of intellect, instinct, a bit of courage and a double measure of patience. In managing this portfolio, we are not trying to do everything, or know everything. We are looking to find 40 to 60 stocks we can invest in where we believe the fundamentals warrant a better price or the fundamentals are going in the right direction and that isn t reflected in the 5 OPPENHEIMER GLOBAL VALUE FUND

6 price. Lots of things swirl around us in the effort to do this but we are always mindful of what the task at hand is. In general, most market discussions of late seems to be around how overvalued the market actually is. Perhaps this is so, but remember this we aren t buying the market. We re buying a collection of ideas that we believe can compound value over long periods of time where we believe the balance of risk and reward is strongly in our favor. We have a long track record of success in doing this. If we are to have significant tax reform, especially at the corporate level, it may mean the market is actually cheaper than you think. If you reduce corporate taxes, you are increasing earnings or effectively reducing multiples. Both cheapen the market, and perhaps as importantly, free up a lot of capital to be either returned to shareholders or invested. The big, global, taxpaying companies are beneficiaries of any future tax reform. Finally, just the environmental change of moving from more regulation to deregulation is a large change. That alone could drive markets higher as the business climate becomes simpler and more streamlined. Stay tuned. Randall C. Dishmon Portfolio Manager 6 OPPENHEIMER GLOBAL VALUE FUND

7 Top Holdings and Allocations TOP TEN COMMON STOCK HOLDINGS Citigroup, Inc. 4.8% Abbott Laboratories 4.7 Alphabet, Inc., Cl. A 4.4 Kinnevik AB, Cl. B 4.3 IHS Markit Ltd. 3.9 Alibaba Group Holding Ltd., Sponsored ADR 3.8 Bristol-Myers Squibb Co. 3.8 Baidu, Inc., Sponsored ADR 3.8 Royal Bank of Scotland Group plc 3.4 Mastercard, Inc., Cl. A 3.4 Portfolio holdings and allocations are subject to change. Percentages are as of April 30, 2017, and are based on net assets. For more current Fund holdings, please visit oppenheimerfunds. com. TOP TEN GEOGRAPHICAL HOLDINGS United States 64.7% China 7.6 United Kingdom 6.6 France 5.8 Sweden 4.3 Denmark 4.2 Germany 2.8 Japan 1.7 Switzerland 1.5 South Africa 0.8 Portfolio holdings and allocation are subject to change. Percentages are as of April 30, 2017, and are based on total market value of investments. REGIONAL ALLOCATION U.S./Canada 64.9% Europe 25.1% Asia 9.1% Middle East/Africa 0.9% Portfolio holdings and allocations are subject to change. Percentages are as of April 30, 2017, and are based on the total market value of investments. 7 OPPENHEIMER GLOBAL VALUE FUND

8 Share Class Performance AVERAGE ANNUAL TOTAL RETURNS WITHOUT SALES CHARGE AS OF 4/30/17 Inception Date 1-Year 5-Year Since Inception Class A (GLVAX) 10/1/ % 9.80% 5.30% Class C (GLVCX) 10/1/ Class I (GLVIX) 8/28/ N/A Class R (GLVNX) 10/1/ Class Y (GLVYX) 10/1/ AVERAGE ANNUAL TOTAL RETURNS WITH SALES CHARGE AS OF 4/30/17 Inception Date 1-Year 5-Year Since Inception Class A (GLVAX) 10/1/ % 8.51% 4.65% Class C (GLVCX) 10/1/ Class I (GLVIX) 8/28/ N/A Class R (GLVNX) 10/1/ Class Y (GLVYX) 10/1/ Performance data quoted represents past performance, which does not guarantee future results. The 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 their original cost. Current performance may be lower or higher than the performance quoted. Returns do not consider capital gains or income taxes on an individual s investment. For performance data current to the most recent month-end, visit oppenheimerfunds.com or call CALL OPP ( ). Fund returns include changes in share price, reinvested distributions, and the applicable sales charge: for Class A shares, the current maximum initial sales charge of 5.75%; and for Class C shares, the contingent deferred sales charge ( CDSC ) of 1% for the 1-year period. There is no sales charge for Class I, Class R and Class Y shares. See Fund prospectuses and summary prospectuses for more information on share classes and sales charges. The Fund s performance is compared to the performance of the MSCI All Country World Index. The MSCI All Country World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. The Index is unmanaged and cannot be purchased directly by investors. 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 investments comprising the Index. Index performance includes reinvestment of income, but does not reflect transaction costs, fees, expenses or taxes. Index performance is shown for illustrative purposes only as a benchmark for the Fund's performance, and does not predict or depict performance of the Fund. The Fund's performance reflects the effects of the Fund's business and operating expenses. The Fund's investment strategy and focus can change over time. The mention of specific fund holdings does not constitute a recommendation by OppenheimerFunds, Inc. or its affiliates. 8 OPPENHEIMER GLOBAL VALUE FUND

9 Before investing in any of the Oppenheimer funds, investors should carefully consider a fund's investment objectives, risks, charges and expenses. Fund prospectuses and summary prospectuses contain this and other information about the funds, and may be obtained by asking your financial advisor, visiting oppenheimerfunds.com, or calling CALL OPP ( ). Read prospectuses and summary prospectuses carefully before investing. 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. 9 OPPENHEIMER GLOBAL VALUE FUND

10 Fund Expenses Fund Expenses. As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments and/or contingent deferred sales charges on redemptions; and (2) ongoing costs, including management fees; distribution and service fees; and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The examples are based on an investment of $1, invested at the beginning of the period and held for the entire 6-month period ended April 30, Actual Expenses. The first section of the table provides information about actual account values and actual expenses. You may use the information in this section for the class of shares you hold, together with the amount you invested, to estimate the expense that you paid over the period. Simply divide your account value by $1, (for example, an $8, account value divided by $1, = 8.60), then multiply the result by the number in the first section under the heading entitled Expenses Paid During 6 Months Ended April 30, 2017 to estimate the expenses you paid on your account during this period. Hypothetical Example for Comparison Purposes. The second section of the table provides information about hypothetical account values and hypothetical expenses based on the Fund s actual expense ratio for each class of shares, and an assumed rate of return of 5% per year for each class before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example for the class of shares you hold with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front-end or contingent deferred sales charges (loads). Therefore, the hypothetical section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. 10 OPPENHEIMER GLOBAL VALUE FUND

11 Actual Beginning Account Value November 1, 2016 Ending Account Value April 30, 2017 Expenses Paid During 6 Months Ended April 30, 2017 Class A $ 1, $ 1, $ 6.91 Class C 1, , Class I 1, , Class R 1, , Class Y 1, , Hypothetical (5% return before expenses) Class A 1, , Class C 1, , Class I 1, , Class R 1, , Class Y 1, , Expenses are equal to the Fund s annualized expense ratio for that class, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). Those annualized expense ratios, excluding indirect expenses from affiliated funds, based on the 6-month period ended April 30, 2017 are as follows: Class Expense Ratios Class A 1.30% Class C 2.05 Class I 0.86 Class R 1.55 Class Y 1.04 The expense ratios reflect voluntary and/or contractual waivers and/or reimbursements of expenses by the Fund s Manager and Transfer Agent. Some of these undertakings may be modified or terminated at any time, as indicated in the Fund's prospectus. The Financial Highlights tables in the Fund s financial statements, included in this report, also show the gross expense ratios, without such waivers or reimbursements and reduction to custodian expenses, if applicable. 11 OPPENHEIMER GLOBAL VALUE FUND

12 STATEMENT OF INVESTMENTS April 30, 2017 Shares Value Common Stocks 98.5% Consumer Discretionary 17.4% Distributors 2.7% LKQ Corp ,950 $ 14,493,798 Internet & Catalog Retail 3.1% Amazon.com, Inc. 1 13,730 12,700,113 Zalando SE 1,2 86,027 3,793,817 16,493,930 Media 10.6% EW Scripps Co. (The), Cl. A 1 351,633 7,834,383 Liberty Global plc/lilac Group, Cl. A 1 486,400 10,443,008 Live Nation Entertainment, Inc ,157 12,097,209 Madison Square Garden Co. (The), Cl. A 1 65,590 13,234,094 News Corp., Cl. A 207,420 2,638,383 Nexstar Media Group, Inc., Cl. A 142,372 9,823,668 56,070,745 Textiles, Apparel & Luxury Goods 1.0% Christian Dior SE 18,961 5,209,123 Financials 30.5% Capital Markets 6.6% Artisan Partners Asset Management, Inc., Cl. A 116,980 3,427,514 Interactive Brokers Group, Inc., Cl. A 404,730 14,096,746 S&P Global, Inc. 130,860 17,560,103 35,084,363 Commercial Banks 9.4% Citigroup, Inc. 428,840 25,353,021 Royal Bank of Scotland Group plc 1 5,351,340 18,391,452 Virgin Money Holdings UK plc 1,520,000 6,246,217 49,990,690 Diversified Financial Services 8.2% IHS Markit Ltd ,138 20,881,389 Kinnevik AB, Cl. B 860,211 22,943,129 43,824,518 Shares Value Insurance 6.3% American International Group, Inc. 276,904 $ 16,866,223 MBIA, Inc. 1 1,964,940 16,505,496 33,371,719 Health Care 22.7% Biotechnology 7.0% BioMarin Pharmaceutical, Inc. 1 81,110 7,773,583 Genmab AS 1 71,822 14,295,633 Gilead Sciences, Inc. 57,180 3,919,689 Regeneron Pharmaceuticals, Inc. 1 28,560 11,095,274 37,084,179 Health Care Equipment & Supplies 6.3% Abbott Laboratories 579,880 25,305,963 Coloplast AS, Cl. B 97,551 8,349,490 33,655,453 Health Care Technology 0.9% M3, Inc. 197,217 5,042,138 Life Sciences Tools & Services 2.0% Lonza Group AG 1 39,590 8,096,589 MorphoSys AG 1 42,085 2,554,382 10,650,971 Pharmaceuticals 6.5% Bristol-Myers Squibb Co. 358,630 20,101,212 Endo International plc 1 1,252,660 14,242,744 34,343,956 Industrials 1.1% Machinery 0.7% FANUC Corp. 19,000 3,863,089 Professional Services 0.4% Dun & Bradstreet Corp. (The) 20,330 2,228,371 Information Technology 20.8% Internet Software & Services 14.3% Alibaba Group Holding Ltd., Sponsored ADR 1 176,030 20,331,465 Alphabet, Inc., Cl. A 1 25,448 23,527, OPPENHEIMER GLOBAL VALUE FUND

13 Shares Value Internet Software & Services (Continued) Baidu, Inc., Sponsored ADR 1 111,151 $ 20,032,745 Criteo SA, Sponsored ADR 1 222,140 12,082,194 75,973,589 IT Services 3.4% Mastercard, Inc., Cl. A 154,410 17,960,971 Software 3.1% Oracle Corp. 375,340 16,875,287 Materials 2.6% Chemicals 2.6% Monsanto Co. 116,861 13,627,161 Telecommunication Services 3.4% Diversified Telecommunication Services 2.5% Iliad SA 55,240 13,410,816 Wireless Telecommunication Services 0.9% MTN Group Ltd. 485,548 4,593,932 Total Common Stocks (Cost $427,199,353) 523,848,799 Shares Value Preferred Stock 1.5% Fuchs Petrolub SE, Preference (Cost $6,413,059) 162,300 $ 8,372,051 Investment Company 0.1% Oppenheimer Institutional Government Money Market Fund, Cl. E, 0.71% 3,4 (Cost $272,762) 272, ,762 Total Investments, at Value (Cost $433,885,174) 100.1% 532,493,612 Net Other Assets (Liabilities) (0.1) (756,520) Net Assets 100.0% $ 531,737,092 Footnotes to Statement of Investments 1. Non-income producing security. 2. Represents securities sold under Rule 144A, which are exempt from registration under the Securities Act of 1933, as amended. These securities have been determined to be liquid under guidelines established by the Board of Trustees. These securities amount to $3,793,817 or 0.71% of the Fund's net assets at period end. 3. Rate shown is the 7-day yield at period end. 4. Is or was an affiliate, as defined in the Investment Company Act of 1940, as amended, at or during the reporting period, by virtue of the Fund owning at least 5% of the voting securities of the issuer or as a result of the Fund and the issuer having the same investment adviser. Transactions during the reporting period in which the issuer was an affiliate are as follows: Shares April 29, 2016 a Gross Additions Gross Reductions Shares April 30, 2017 Oppenheimer Institutional Government Money Market Fund, Cl. E b 12,556, ,902, ,186, ,762 Value Income Oppenheimer Institutional Government Money Market Fund, Cl. E b $ 272,762 $ 27,522 a. Represents the last business day of the Fund's reporting period. b. Prior to September 28, 2016, this fund was named Oppenheimer Institutional Money Market Fund. 13 OPPENHEIMER GLOBAL VALUE FUND

14 STATEMENT OF INVESTMENTS Continued Distribution of investments representing geographic holdings, as a percentage of total investments at value, is as follows: Geographic Holdings (Unaudited) Value Percent United States $ 344,442, % China 40,364, United Kingdom 35,080, France 30,702, Sweden 22,943, Denmark 22,645, Germany 14,720, Japan 8,905, Switzerland 8,096, South Africa 4,593, Total $ 532,493, % See accompanying Notes to Financial Statements. 14 OPPENHEIMER GLOBAL VALUE FUND

15 STATEMENT OF ASSETS AND LIABILITIES April 30, 2017 Assets Investments, at value see accompanying statement of investments: Unaffiliated companies (cost $433,612,412) $ 532,220,850 Affiliated companies (cost $272,762) 272, ,493,612 Receivables and other assets: Shares of beneficial interest sold 1,318,548 Dividends 964,177 Other 15,695 Total assets 534,792,032 Liabilities Bank overdraft 32 Payables and other liabilities: Investments purchased 2,374,744 Shares of beneficial interest redeemed 583,680 Distribution and service plan fees 41,421 Trustees' compensation 8,879 Shareholder communications 6,590 Other 39,594 Total liabilities 3,054,940 Net Assets $ 531,737,092 Composition of Net Assets Par value of shares of beneficial interest $ 11,576 Additional paid-in capital 449,860,726 Accumulated net investment loss (8,102) Accumulated net realized loss on investments and foreign currency transactions (16,725,783) Net unrealized appreciation on investments and translation of assets and liabilities denominated in foreign currencies 98,598,675 Net Assets $ 531,737, OPPENHEIMER GLOBAL VALUE FUND

16 STATEMENT OF ASSETS AND LIABILITIES Continued Net Asset Value Per Share Class A Shares: Net asset value and redemption price per share (based on net assets of $145,248,389 and 3,176,111 shares of beneficial interest outstanding) $45.73 Maximum offering price per share (net asset value plus sales charge of 5.75% of offering price) $48.52 Class C Shares: Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $54,018,465 and 1,249,615 shares of beneficial interest outstanding) $43.23 Class I Shares: Net asset value, redemption price and offering price per share (based on net assets of $75,145,207 and 1,605,588 shares of beneficial interest outstanding) $46.80 Class R Shares: Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $6,898,328 and 153,906 shares of beneficial interest outstanding) $44.82 Class Y Shares: Net asset value, redemption price and offering price per share (based on net assets of $250,426,703 and 5,390,303 shares of beneficial interest outstanding) $46.46 See accompanying Notes to Financial Statements. 16 OPPENHEIMER GLOBAL VALUE FUND

17 STATEMENT OF OPERATIONS For the April 30, 2017 Investment Income Dividends: Unaffiliated companies (net of foreign withholding taxes of $143,269) $ 4,199,955 Affiliated companies 27,522 Total investment income 4,227,477 Expenses Management fees 3,347,217 Distribution and service plan fees: Class A 370,284 Class C 600,569 Class R 35,169 Transfer and shareholder servicing agent fees: Class A 334,824 Class C 132,194 Class I 21,732 Class R 15,562 Class Y 279,030 Shareholder communications: Class A 10,603 Class C 5,929 Class I 109 Class R 705 Class Y 4,025 Custodian fees and expenses 25,510 Borrowing fees 7,342 Trustees' compensation 7,234 Other 93,087 Total expenses 5,291,125 Less reduction to custodian expenses (18) Less waivers and reimbursements of expenses (25,858) Net expenses 5,265,249 Net Investment Loss (1,037,772) Realized and Unrealized Gain (Loss) Net realized gain (loss) on: Investment transactions in unaffiliated companies 3,063,928 Foreign currency transactions (66,481) Net realized gain 2,997,447 Net change in unrealized appreciation/depreciation on: Investment transactions 62,593,563 Translation of assets and liabilities denominated in foreign currencies (31,339) Net change in unrealized appreciation/depreciation 62,562,224 Net Increase in Net Assets Resulting from Operations $ 64,521,899 See accompanying Notes to Financial Statements. 17 OPPENHEIMER GLOBAL VALUE FUND

18 STATEMENTS OF CHANGES IN NET ASSETS April 30, 2017 April 29, Operations Net investment loss $ (1,037,772) $ (1,053,336) Net realized gain (loss) 2,997,447 (14,742,281) Net change in unrealized appreciation/depreciation 62,562,224 (24,193,740) Net increase (decrease) in net assets resulting from operations 64,521,899 (39,989,357) Beneficial Interest Transactions Net increase (decrease) in net assets resulting from beneficial interest transactions: Class A (53,465,470) (35,705,652) Class C (25,069,120) (10,717,256) Class I (8,569,327) 54,773,760 Class R (1,864,895) 315,596 Class Y 119,600,890 (12,188,005) 30,632,078 (3,521,557) Net Assets Total increase (decrease) 95,153,977 (43,510,914) Beginning of period 436,583, ,094,029 End of period (including accumulated net investment loss of $8,102 and $382,251, respectively) $ 531,737,092 $ 436,583, Represents the last business day of the Fund s reporting period. See accompanying Notes to Financial Statements. 18 OPPENHEIMER GLOBAL VALUE FUND

19 FINANCIAL HIGHLIGHTS Class A April 30, 2017 April 29, April 30, 2015 April 30, 2014 April 30, 2013 Per Share Operating Data Net asset value, beginning of period $39.26 $42.91 $42.01 $35.48 $29.20 Income (loss) from investment operations: Net investment income (loss) 2 (0.12) (0.08) 0.02 (0.17) 0.12 Net realized and unrealized gain (loss) 6.59 (3.57) Total from investment operations 6.47 (3.65) Dividends and/or distributions to shareholders: Dividends from net investment income (0.05) 0.00 Distributions from net realized gain (0.75) Total dividends and/or distributions to shareholders (0.75) (0.05) 0.00 Net asset value, end of period $45.73 $39.26 $42.91 $42.01 $35.48 Total Return, at Net Asset Value % (8.53)% 3.94% 18.59% 21.51% Ratios/Supplemental Data Net assets, end of period (in thousands) $145,248 $176,181 $231,060 $301,854 $94,978 Average net assets (in thousands) $151,991 $204,746 $266,375 $206,885 $63,128 Ratios to average net assets: 4 Net investment income (loss) (0.29)% (0.20)% 0.04% (0.41)% 0.40% Expenses excluding specific expenses listed below 1.30% 1.30% 1.31% 1.30% 1.34% Interest and fees from borrowings 0.00% % % 0.00% 0.00% Total expenses % 1.30% 1.31% 1.30% 1.34% Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses 1.30% % % % % 7 Portfolio turnover rate 59% 89% 102% 59% 87% 1. Represents the last business day of the Fund's reporting period. 2. Per share amounts calculated based on the average shares outstanding during the period. 3. Assumes an initial investment on the business day before the first day of the fiscal period, 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 less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 4. Annualized for periods less than one full year. 5. Less than 0.005%. 6. Total expenses including indirect expenses from affiliated fund fees and expenses were as follows: April 30, % April 29, % April 30, % April 30, % April 30, % 7. Waiver was less than 0.005%. See accompanying Notes to Financial Statements. 19 OPPENHEIMER GLOBAL VALUE FUND

20 FINANCIAL HIGHLIGHTS Continued Class C April 30, 2017 April 29, April 30, 2015 April 30, 2014 April 30, 2013 Per Share Operating Data Net asset value, beginning of period $37.39 $41.18 $40.65 $34.56 $28.67 Income (loss) from investment operations: Net investment loss 2 (0.42) (0.37) (0.30) (0.50) (0.13) Net realized and unrealized gain (loss) 6.26 (3.42) Total from investment operations 5.84 (3.79) Dividends and/or distributions to shareholders: Dividends from net investment income Distributions from net realized gain (0.75) Total dividends and/or distributions to shareholders (0.75) Net asset value, end of period $43.23 $37.39 $41.18 $40.65 $34.56 Total Return, at Net Asset Value % (9.20)% 3.16% 17.65% 20.55% Ratios/Supplemental Data Net assets, end of period (in thousands) $54,019 $70,795 $89,540 $94,011 $18,062 Average net assets (in thousands) $59,990 $79,329 $92,759 $51,545 $11,396 Ratios to average net assets: 4 Net investment loss (1.06)% (0.96)% (0.75)% (1.23)% (0.43)% Expenses excluding specific expenses listed below 2.06% 2.06% 2.07% 2.06% 2.16% Interest and fees from borrowings 0.00% % % 0.00% 0.00% Total expenses % 2.06% 2.07% 2.06% 2.16% Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses 2.06% % % % % Portfolio turnover rate 59% 89% 102% 59% 87% 1. Represents the last business day of the Fund's reporting period. 2. Per share amounts calculated based on the average shares outstanding during the period. 3. Assumes an initial investment on the business day before the first day of the fiscal period, 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 less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 4. Annualized for periods less than one full year. 5. Less than 0.005%. 6. Total expenses including indirect expenses from affiliated fund fees and expenses were as follows: April 30, % April 29, % April 30, % April 30, % April 30, % 7. Waiver was less than 0.005%. See accompanying Notes to Financial Statements. 20 OPPENHEIMER GLOBAL VALUE FUND

21 Class I April 30, 2017 April 29, April 30, 2015 April 30, 2014 Period Ended April 30, Per Share Operating Data Net asset value, beginning of period $40.00 $43.53 $42.42 $35.76 $28.68 Income (loss) from investment operations: Net investment income Net realized and unrealized gain (loss) 6.75 (3.61) Total from investment operations 6.80 (3.53) Dividends and/or distributions to shareholders: Dividends from net investment income (0.16) 0.00 Distributions from net realized gain (0.75) Total dividends and/or distributions to shareholders (0.75) (0.16) 0.00 Net asset value, end of period $46.80 $40.00 $43.53 $42.42 $35.76 Total Return, at Net Asset Value % (8.11)% 4.40% 19.09% 24.69% Ratios/Supplemental Data Net assets, end of period (in thousands) $75,145 $72,137 $18,703 $14,350 $6,364 Average net assets (in thousands) $72,417 $54,326 $15,286 $10,473 $2,381 Ratios to average net assets: 5 Net investment income 0.13% 0.20% 0.43% 0.10% 0.31% Expenses excluding specific expenses listed below 0.86% 0.86% 0.87% 0.86% 0.89% Interest and fees from borrowings 0.00% % % 0.00% 0.00% Total expenses % 0.86% 0.87% 0.86% 0.89% Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses 0.86% % % % % 8 Portfolio turnover rate 59% 89% 102% 59% 87% 1. Represents the last business day of the Fund's reporting period. 2. For the period from August 28, 2012 (inception of offering) to April 30, Per share amounts calculated based on the average shares outstanding during the period. 4. Assumes an initial investment on the business day before the first day of the fiscal period, 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 less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 5. Annualized for periods less than one full year. 6. Less than 0.005%. 7. Total expenses including indirect expenses from affiliated fund fees and expenses were as follows: April 30, % April 29, % April 30, % April 30, % Period Ended April 30, % 8. Waiver was less than 0.005%. See accompanying Notes to Financial Statements. 21 OPPENHEIMER GLOBAL VALUE FUND

22 FINANCIAL HIGHLIGHTS Continued Class R April 30, 2017 April 29, April 30, 2015 April 30, 2014 April 30, 2013 Per Share Operating Data Net asset value, beginning of period $38.57 $42.27 $41.50 $35.11 $28.98 Income (loss) from investment operations: Net investment income (loss) 2 (0.23) (0.18) (0.12) (0.29) 0.03 Net realized and unrealized gain (loss) 6.48 (3.52) Total from investment operations 6.25 (3.70) Dividends and/or distributions to shareholders: Dividends from net investment income Distributions from net realized gain (0.75) Total dividends and/or distributions to shareholders (0.75) Net asset value, end of period $44.82 $38.57 $42.27 $41.50 $35.11 Total Return, at Net Asset Value % (8.76)% 3.70% 18.20% 21.15% Ratios/Supplemental Data Net assets, end of period (in thousands) $6,898 $7,709 $8,113 $5,445 $1,555 Average net assets (in thousands) $7,066 $7,813 $6,980 $3,548 $1,188 Ratios to average net assets: 4 Net investment income (loss) (0.56)% (0.46)% (0.30)% (0.69)% 0.11% Expenses excluding specific expenses listed below 1.56% 1.55% 1.53% 1.57% 1.64% Interest and fees from borrowings 0.00% % % 0.00% 0.00% Total expenses % 1.55% 1.53% 1.57% 1.64% Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses 1.56% % % % 1.64% 7 Portfolio turnover rate 59% 89% 102% 59% 87% 1. Represents the last business day of the Fund's reporting period. 2. Per share amounts calculated based on the average shares outstanding during the period. 3. Assumes an initial investment on the business day before the first day of the fiscal period, 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 less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 4. Annualized for periods less than one full year. 5. Less than 0.005%. 6. Total expenses including indirect expenses from affiliated fund fees and expenses were as follows: April 30, % April 29, % April 30, % April 30, % April 30, % 7. Waiver was less than 0.005%. See accompanying Notes to Financial Statements. 22 OPPENHEIMER GLOBAL VALUE FUND

23 Class Y April 30, 2017 April 29, April 30, 2015 April 30, 2014 April 30, 2013 Per Share Operating Data Net asset value, beginning of period $39.78 $43.38 $42.35 $35.73 $29.32 Income (loss) from investment operations: Net investment income (loss) 2 (0.00) (0.09) 0.23 Net realized and unrealized gain (loss) 6.68 (3.62) Total from investment operations 6.68 (3.60) Dividends and/or distributions to shareholders: Dividends from net investment income (0.13) 0.00 Distributions from net realized gain (0.75) Total dividends and/or distributions to shareholders (0.75) (0.13) 0.00 Net asset value, end of period $46.46 $39.78 $43.38 $42.35 $35.73 Total Return, at Net Asset Value % (8.28)% 4.22% 18.88% 21.86% Ratios/Supplemental Data Net assets, end of period (in thousands) $250,427 $109,761 $132,678 $112,851 $22,158 Average net assets (in thousands) $127,129 $119,119 $135,104 $59,159 $15,188 Ratios to average net assets: 5 Net investment income (loss) (0.01)% 0.04% 0.20% (0.22)% 0.74% Expenses excluding specific expenses listed below 1.05% 1.05% 1.07% 1.04% 1.03% Interest and fees from borrowings 0.00% % % 0.00% 0.00% Total expenses % 1.05% 1.07% 1.04% 1.03% Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses 1.05% % % 1.04% % Portfolio turnover rate 59% 89% 102% 59% 87% 1. Represents the last business day of the Fund's reporting period. 2. Per share amounts calculated based on the average shares outstanding during the period. 3. Less than $0.005 per share. 4. Assumes an initial investment on the business day before the first day of the fiscal period, 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 less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 5. Annualized for periods less than one full year. 6. Less than 0.005%. 7. Total expenses including indirect expenses from affiliated fund fees and expenses were as follows: April 30, % April 29, % April 30, % April 30, % April 30, % 8. Waiver was less than 0.005%. See accompanying Notes to Financial Statements. 23 OPPENHEIMER GLOBAL VALUE FUND

24 NOTES TO FINANCIAL STATEMENTS April 30, Organization Oppenheimer Global Value Fund (the Fund ) is a diversified open-end management investment company registered under the Investment Company Act of 1940 ( 1940 Act ), as amended. The Fund s investment objective is to seek capital appreciation. The Fund s investment adviser is OFI Global Asset Management, Inc. ( OFI Global or the Manager ), a wholly-owned subsidiary of OppenheimerFunds, Inc. ( OFI or the Sub-Adviser ). The Manager has entered into a sub-advisory agreement with OFI. The Fund offers Class A, Class C, Class I, Class R and Class Y shares. As of July 1, 2014, Class N shares were renamed Class R shares. Class N shares subject to a contingent deferred sales charge ( CDSC ) on July 1, 2014, continue to be subject to a CDSC after the shares were renamed. Purchases of Class R shares occurring on or after July 1, 2014, are not subject to a CDSC upon redemption. Class A shares are sold at their offering price, which is normally net asset value plus a front-end sales charge. Class C and Class R shares are sold without a front-end sales charge but may be subject to a CDSC. Class R shares are sold only through retirement plans. Retirement plans that offer Class R shares may impose charges on those accounts. Class I and Class Y shares are sold to certain institutional investors or intermediaries without either a front-end sales charge or a CDSC, however, the intermediaries may impose charges on their accountholders who beneficially own Class I and Class Y shares. All classes of shares have identical rights and voting privileges with respect to the Fund in general and exclusive voting rights on matters that affect that class alone. Earnings, net assets and net asset value per share may differ due to each class having its own expenses, such as transfer and shareholder servicing agent fees and shareholder communications, directly attributable to that class. Class A, C and R shares have separate distribution and/or service plans under which they pay fees. Class I and Class Y shares do not pay such fees. The following is a summary of significant accounting policies followed in the Fund's preparation of financial statements in accordance with accounting principles generally accepted in the United States ( U.S. GAAP ). 2. Significant Accounting Policies Security Valuation. All investments in securities are recorded at their estimated fair value, as described in Note 3. Foreign Currency Translation. The books and records of the Fund are maintained in U.S. dollars. Any foreign currency amounts are translated into U.S. dollars on the following basis: (1) Value of investment securities, other assets and liabilities at the exchange rates prevailing at Market Close as described in Note 3. (2) Purchases and sales of investment securities, income and expenses at the rates of exchange prevailing on the respective dates of such transactions. Although the net assets and the values are presented at the foreign exchange rates at Market Close, the Fund does not isolate the portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in prices of securities held. Such fluctuations are included with the net realized and unrealized 24 OPPENHEIMER GLOBAL VALUE FUND

25 2. Significant Accounting Policies (Continued) gains or losses from investments shown in the Statement of Operations. For securities, which are subject to foreign withholding tax upon disposition, realized gains or losses on such securities are recorded net of foreign withholding tax. Reported net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, the difference between the amounts of dividends, interest, and foreign withholding tax reclaims recorded on Fund s books, and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities other than investments in securities, resulting from changes in the exchange rate. Allocation of Income, Expenses, Gains and Losses. Income, expenses (other than those attributable to a specific class), gains and losses are allocated on a daily basis 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. Dividends and Distributions to Shareholders. Dividends and distributions to shareholders, which are determined in accordance with income tax regulations and may differ from U.S. GAAP, are recorded on the ex-dividend date. Income and capital gain distributions, if any, are declared and paid annually or at other times as deemed necessary by the Manager. Investment Income. Dividend income is recorded on the ex-dividend date or upon exdividend notification in the case of certain foreign dividends where the ex-dividend date may have passed. Non-cash dividends included in dividend income, if any, are recorded at the fair value of the securities received. Withholding taxes on foreign dividends, if any, and capital gains taxes on foreign investments, if any, have been provided for in accordance with the Fund's understanding of the applicable tax rules and regulations. Interest income is recognized on an accrual basis. Discount and premium, which are included in interest income on the Statement of Operations, are amortized or accreted daily. Custodian Fees. Custodian fees and expenses in the Statement of Operations may include interest expense incurred by the Fund on any cash overdrafts of its custodian account during the period. Such cash overdrafts may result from the effects of failed trades in portfolio securities and from cash outflows resulting from unanticipated shareholder redemption activity. The Fund pays interest to its custodian on such cash overdrafts, to the extent they are not offset by positive cash balances maintained by the Fund, at a rate equal to the Federal Funds Rate plus 0.50%. This rate increased to 2.00% effective January 1, The Reduction to custodian expenses line item, if applicable, represents earnings on cash balances maintained by the Fund during the period. Such interest expense and other custodian fees may be paid with these earnings. 25 OPPENHEIMER GLOBAL VALUE FUND

26 NOTES TO FINANCIAL STATEMENTS Continued 2. Significant Accounting Policies (Continued) Security Transactions. Security transactions are recorded on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost. Indemnifications. The Fund s organizational documents provide current and former Trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund s maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote. Federal Taxes. The Fund intends to comply with provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its investment company taxable income, including any net realized gain on investments not offset by capital loss carryforwards, if any, to shareholders. Therefore, no federal income or excise tax provision is required. The Fund files income tax returns in U.S. federal and applicable state jurisdictions. The statute of limitations on the Fund's tax return filings generally remains open for the three preceding fiscal reporting period ends. The Fund has analyzed its tax positions for the fiscal year ended April 30, 2017, including open tax years, and does not believe there are any uncertain tax positions requiring recognition in the Fund s financial statements. The tax components of capital shown in the following table represent distribution requirements the Fund must satisfy under the income tax regulations, losses the Fund may be able to offset against income and gains realized in future years and unrealized appreciation or depreciation of securities and other investments for federal income tax purposes. Net Unrealized Appreciation Based on cost of Securities and Undistributed Undistributed Accumulated Other Investments Net Investment Long-Term Loss for Federal Income Income Gain Carryforward 1,2,3 Tax Purposes $ $ $14,109,991 $95,982, At period end, the Fund had $14,109,991 of net capital loss carryforward available to offset future realized capital gains, if any, and thereby reduce future taxable gain distributions. Details of the capital loss carryforwards are included in the table below. Capital loss carryovers with no expiration, if any, must be utilized prior to those with expiration dates. Expiring No expiration $ 14,109, During the reporting period, the Fund utilized $774,228 of capital loss carryforward to offset capital gains realized in that fiscal year. 3. During the previous reporting period, the Fund did not utilize any capital loss carryforward. Net investment income (loss) and net realized gain (loss) may differ for financial statement and tax purposes. The character of dividends and distributions made during the fiscal year 26 OPPENHEIMER GLOBAL VALUE FUND