<PAGE> 1
OPPENHEIMER QUEST VALUE FUND, INC.
SEMIANNUAL REPORT APRIL 30, 1997
[PHOTO]
"WE HAVE A LOT OF
IMPORTANT
GOALS, SO WE
NEED OUR MONEY
TO GROW SOLIDLY
OVER TIME."
[OPPENHEIMERFUNDS LOGO]
OPPENHEIMERFUNDS
THE RIGHT WAY TO INVEST
<PAGE> 2
THIS FUND IS FOR PEOPLE WHO WANT THEIR MONEY TO GROW OVER TIME AND FEEL MOST
COMFORTABLE INVESTING IN WELL-ESTABLISHED COMPANIES.
NEWS
BEAT THE AVERAGE
Cumulative Total Return for the
5-Year Period Ended 3/31/97:
Oppenheimer Quest Value
Fund, Inc.
Class A (at net asset value)(1)
112.14%
Lipper Capital Appreciation
Average for 76 Capital
Appreciation Funds for the
5-Year Period Ended 3/31/97(3)
80.03%
THE FUND'S CLASS A SHARES ARE RANKED **** AMONG 1,919 (3-YEAR), 1,076 (5-YEAR)
AND 601 (10-YEAR) DOMESTIC EQUITY FUNDS FOR THE COMBINED 3-, 5- AND 10-YEAR
PERIODS ENDED 3/31/97 BY MORNINGSTAR MUTUAL FUNDS.(4)
HOW YOUR FUND IS MANAGED
Oppenheimer Quest Value Fund, Inc. seeks growth by applying a value-oriented
philosophy to investing, looking for stocks that the portfolio manager
believes are undervalued. The manager employs a bottom-up process to select
individual stocks for the Fund. For a stock to be included in the portfolio, a
rigorous research process must be completed.
PERFORMANCE
Total returns for the six months ended 4/30/97 for Class A, B and C shares were
6.87%, 6.60% and 6.60%, respectively, without deducting sales charges.
Cumulative total return for Class Y shares from inception on 12/16/96 to
4/30/97 was 5.94%.(1)
Your Fund's average annual total returns for Class A shares for the 1-,
5- and 10-year periods ended 3/31/97 were 9.63%, 14.86% and 12.16%,
respectively. For Class B shares, average annual total returns for the 1-year
period ended 3/31/97 and since inception on 9/1/93 were 10.77% and 15.49%,
respectively. For Class C shares, average annual total returns for the 1-year
period ended 3/31/97 and since inception on 9/1/93 were 14.78% and 16.04%,
respectively. Cumulative total return for Class Y shares from inception on
12/16/96 to 3/31/97 was 3.52%.(2)
OUTLOOK
"We think that selecting stocks of quality businesses that generate healthy
free cash flows and are run by management interested in maximizing shareholder
value is very important."
Eileen Rominger, Portfolio Manager
April 30, 1997
Total returns include change in share price and reinvestment of dividends and
capital gains distributions in a hypothetical investment for the periods shown.
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
Sub-adviser is OpCap Advisors (formerly Quest for Value Advisors, the Fund's
Adviser until 11/22/95).
1. Includes change in net asset value per share without deducting any sales
charges. Such performance is not annualized and would have been lower if sales
charges were taken into account.
2. Class A returns include the current maximum initial sales charge of 5.75%.
Class A shares were first publicly offered on 4/30/80. The Fund's maximum sales
charge rate for Class A shares was lower prior to 11/22/95, so actual results
would have been greater. Class B returns include the applicable contingent
deferred sales charge of 5% (1-year) and 3% (since inception). Class C returns
include the 1% contingent deferred sales charge for the 1-year period. An
explanation of the different total returns is in the Fund's prospectus. Class B
and C shares are subject to an annual 0.75% asset-based sales charge and Class
A shares are subject to an annual 0.25% asset-based sales charge.
3. Source: Lipper Analytical Services, 3/31/97. The Lipper average is shown for
comparative purposes only. Funds included in the index may have different
investment policies and risks than the Fund. Oppenheimer Quest Value Fund, Inc.
is characterized by Lipper as a capital appreciation fund. Lipper performance
is based on total return and does not take sales charges into account.
4. Source: Morningstar Mutual Funds, 3/31/97. Morningstar, Inc. ranks mutual
funds in broad investment classes, based on risk-adjusted returns after
considering sales charges and expenses. Return and risk are measured as
performance above and below 90-day U.S. Treasury bill returns, respectively.
Current star rankings are based on the weighted average of 3-, 5- and 10-year
(if applicable) rankings for a fund or class and are subject to change monthly.
Top 10%: 5 stars. Next 22.5%: 4 stars. Middle 35%: 3 stars. Next 22.5%: 2
stars. Bottom 10%: 1 star. The Fund is ranked 4 stars (3-year), 4 stars
(5-year) and 4 stars (10-year), weighted 20%/30%/50%, respectively, and 3 stars
(1-year) among 3,048 funds.
2 Oppenheimer Quest Value Fund, Inc.
<PAGE> 3
[PHOTO]
Bridget A. Macaskill
President
Oppenheimer
Quest Value Fund,Inc.
DEAR SHAREHOLDER,
So far, 1997 has brought the volatility we anticipated in the equity market.
April saw a 9% decline, but it was followed by an even larger rebound. Despite
this volatility, we remain optimistic about the rest of the year. On the one
hand, the equity market is backed by solid economic fundamentals that should
continue for the near future. On the other hand, the ups and downs of the
business cycle are a reality, and at some point, possibly this year, we expect
that the economy will move into a phase of slower growth.
On a positive note, the economy has been expanding slowly but steadily.
Interest rates are still relatively low, despite the Federal Reserve's recent
increase in short-term rates. Low interest rates translate into reduced
borrowing rates for companies, which use these savings to improve productivity
through new efficiency-enhancing technologies. Higher productivity translates
into lower production costs, which in turn results in higher profits.
In addition, inflation is at its lowest level in three decades. While
it's true that an increase in interest rates often indicates an accelerating
economy, the Federal Reserve has been quick to acknowledge that inflation and
growth are under control. In fact, they've labeled the recent move as a
"pre-emptive" act to keep inflation low and extend the economy's healthy growth
cycle.
Despite this good news, we are realistic about the future of the equity
market. During 1996, most market gains came from a very select group of about
50-100 large-capitalization stocks. The broader market, including small- and
mid-size companies, actually delivered mixed results for the past year. Many
large-company stocks are becoming overvalued, or expensive in price, and market
buyers will reach a point when they are no longer willing to pay high premiums
for them. This may result in a correction, unless investors turn to the many
small- and mid-cap stocks that are relatively undervalued. There is plenty of
room for growth in these areas, and we expect to see these stocks participating
in the market during 1997.
In this uncertain period, selectivity will be our key to maintaining an
effective portfolio. It will be important to base stock choices on the
individual merits of companies, such as strong management, fundamental business
policies, long-term future prospects and price. For you, the investor,
maintaining a long-term investment horizon is essential. Short-term swings will
inevitably occur, but the market's long-term trend has been to move higher and
higher.
Your portfolio managers discuss the outlook for your Fund in light of
these broad issues on the following pages. Thank you for your confidence in
OppenheimerFunds, The Right Way to Invest. We look forward to helping you reach
your investment goals in the future.
/s/ BRIDGET A. MACASKILL
Bridget A. Macaskill
May 21, 1997
3 Oppenheimer Quest Value Fund, Inc.
<PAGE> 4
Q + A
[PHOTO]
Eileen Rominger
Portfolio Manager
AN INTERVIEW WITH YOUR FUND'S MANAGERS.
HOW HAS THE FUND PERFORMED OVER THE PAST SIX MONTHS?
Oppenheimer Quest Value Fund, Inc. performed well during the period. In
fact, for the six-month period ended April 30, 1997, cumulative total return
without deducting sales charges for the Fund's Class A shares was 6.87%.
WHAT CHARACTERISTICS DO YOU LOOK FOR WHEN EVALUATING STOCKS?
In this fund, we look for companies that have three basic traits.
First, the businesses we select must have a competitive advantage versus other
companies within their industry, a benefit that will allow them to sustain a
high return on invested capital. Second, we look for companies with strong
management teams who are focused on working hard for the shareholders through
effective use of cash flow, such as reinvesting in the business, buying back
stock and paying dividends. And third, we look for stocks that can be purchased
at advantageous prices.
WHAT INVESTMENTS MADE POSITIVE CONTRIBUTIONS TO PERFORMANCE?
Once again, we are very pleased to report that the stocks that
contributed the most during the period were our largest holdings. Two of these
positions, ACE Ltd. and EXEL Ltd., are insurance carriers that write specialty
lines of coverage, such as excess liability and catastrophic property
reinsurance. Both companies benefit from low operating costs because they
operate from Bermuda. Wells Fargo & Co., headquartered in California, was able
to dramatically reduce their operating expenses. In addition, they have
instituted a new distribution channel by setting up branches in local
supermarket chains. Finally, McDonnell Douglas, an aerospace firm, reported
impressive gains during the period due to a merger with Boeing
International.(1)
WERE THERE ANY INVESTMENTS THAT DIDN'T PERFORM AS WELL AS EXPECTED?
Our holdings in LucasVarity, a British electrical-equipment
conglomerate, underperformed during this period. This company is currently in
the final stages of a merger, which has caused the stock's price to fall. We
remain confident that the combined company will be able to significantly
increase profit margins.
WHAT IS YOUR OUTLOOK FOR THE FUND?
We think that selecting stocks of quality businesses that generate
healthy free cash flows and are run by management interested in maximizing
shareholder value is very important. But particularly now, when it appears the
market may see more volatility than it has in the past few years, these
characteristics are even more attractive because they may provide the Fund with
a relatively stronger defensive position going forward.
1. The Fund's portfolio is subject to change.
4 Oppenheimer Quest Value Fund, Inc.
<PAGE> 5
FINANCIALS
<TABLE>
<CAPTION>
CONTENTS
<S> <C>
STATEMENT OF INVESTMENTS 6
STATEMENT OF ASSETS AND LIABILITIES 9
STATEMENT OF OPERATIONS 10
STATEMENTS OF CHANGES IN NET ASSETS 11
FINANCIAL HIGHLIGHTS 12
NOTES TO FINANCIAL STATEMENTS 14
</TABLE>
5 Oppenheimer Quest Value Fund, Inc.
<PAGE> 6
STATEMENT OF INVESTMENTS April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT SEE NOTE 1
====================================================================================================================================
<S> <C> <C>
SHORT-TERM NOTES--18.2%
- ------------------------------------------------------------------------------------------------------------------------------------
American Express Credit Corp., 5.49%, 5/27/97(1) $ 15,660,000 $ 15,597,908
----------------------------------------------------------------------------------------------------------------------------
Deere (John) Capital Corp., 5.48%, 5/21/97(1) 4,503,000 4,489,291
----------------------------------------------------------------------------------------------------------------------------
Deere (John) Capital Corp., 5.49%, 5/27/97(1) 13,000,000 12,948,455
----------------------------------------------------------------------------------------------------------------------------
Deere (John) Capital Corp., 5.55%, 5/1/97(1) 13,668,000 13,668,000
----------------------------------------------------------------------------------------------------------------------------
Federal Farm Credit Bank, 5.36%, 5/16/97(1) 4,580,000 4,569,771
----------------------------------------------------------------------------------------------------------------------------
Ford Motor Credit Co., 5.53%, 5/5/97(1) 30,000,000 29,981,567
----------------------------------------------------------------------------------------------------------------------------
General Motors Acceptance Corp., 5.56%, 5/8/97(1) 30,000,000 29,967,567
----------------------------------------------------------------------------------------------------------------------------
Merrill Lynch & Co., Inc., 5.57%, 6/2/97(1) 30,000,000 29,852,533
------------
Total Short-Term Notes (Cost $141,075,092) 141,075,092
====================================================================================================================================
CONVERTIBLE CORPORATE BONDS AND NOTES--0.4%
- ------------------------------------------------------------------------------------------------------------------------------------
Security Capital Realty, Inc., 12% Cv. Sub. Debs. Interest Shares, 6/30/14(2) 102,061 102,061
----------------------------------------------------------------------------------------------------------------------------
Security Capital Realty, Inc., 12% Cv. Sub. Debs., 6/30/14(2) 2,310,155 2,688,933
------------
Total Convertible Corporate Bonds and Notes (Cost $2,293,828) 2,790,994
<CAPTION>
SHARES
====================================================================================================================================
<S> <C> <C>
COMMON STOCKS--81.2%
- ------------------------------------------------------------------------------------------------------------------------------------
BASIC MATERIALS--4.7%
- ------------------------------------------------------------------------------------------------------------------------------------
CHEMICALS--3.2%
Du Pont (E.I.) De Nemours & Co. 60,000 6,367,500
----------------------------------------------------------------------------------------------------------------------------
Hercules, Inc. 241,000 9,489,375
----------------------------------------------------------------------------------------------------------------------------
Monsanto Co. 215,000 9,191,250
------------
25,048,125
- ------------------------------------------------------------------------------------------------------------------------------------
METALS--1.1%
Freeport McMoRan, Inc. 66,333 1,940,240
----------------------------------------------------------------------------------------------------------------------------
Freeport-McMoRan Copper & Gold, Inc., Cl. B 229,290 6,678,071
------------
8,618,311
- ------------------------------------------------------------------------------------------------------------------------------------
PAPER--0.4%
Champion International Corp. 60,000 2,790,000
- ------------------------------------------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS--11.4%
- ------------------------------------------------------------------------------------------------------------------------------------
AUTOS & HOUSING--0.5%
Security Capital Realty, Inc.(2)(3) 3,049 3,713,034
- ------------------------------------------------------------------------------------------------------------------------------------
LEISURE & ENTERTAINMENT--6.8%
AMR Corp.(3) 152,000 14,155,000
----------------------------------------------------------------------------------------------------------------------------
Carnival Corp., Cl. A 450,000 16,593,750
----------------------------------------------------------------------------------------------------------------------------
McDonald's Corp. 400,000 21,450,000
------------
52,198,750
- ------------------------------------------------------------------------------------------------------------------------------------
MEDIA--1.5%
Tele-Communications, Inc. (New), TCI Group, Series A(3) 810,000 11,188,125
- ------------------------------------------------------------------------------------------------------------------------------------
RETAIL: GENERAL--2.6%
May Department Stores Cos. 438,000 20,257,500
- ------------------------------------------------------------------------------------------------------------------------------------
CONSUMER NON-CYCLICALS--7.7%
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE/DRUGS--1.0%
Warner-Lambert Co. 81,000 7,938,000
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE/SUPPLIES &
SERVICES--5.6%
Becton, Dickinson & Co. 398,000 18,308,000
----------------------------------------------------------------------------------------------------------------------------
Tenet Healthcare Corp.(3) 955,500 24,843,000
------------
43,151,000
</TABLE>
6 Oppenheimer Quest Value Fund, Inc.
<PAGE> 7
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
HOUSEHOLD GOODS--1.1%
Avon Products, Inc. 135,600 $ 8,356,350
------------
- ------------------------------------------------------------------------------------------------------------------------------------
ENERGY--0.4%
- ------------------------------------------------------------------------------------------------------------------------------------
OIL-INTEGRATED--0.4%
Triton Energy Ltd.(3) 88,000 3,234,000
- ------------------------------------------------------------------------------------------------------------------------------------
FINANCIAL--33.9%
- ------------------------------------------------------------------------------------------------------------------------------------
BANKS--6.5%
BankBoston Corp. 100,000 7,275,000
----------------------------------------------------------------------------------------------------------------------------
Citicorp 170,000 19,146,250
----------------------------------------------------------------------------------------------------------------------------
Wells Fargo & Co. 88,666 23,651,655
------------
50,072,905
- ------------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL--5.3%
Countrywide Credit Industries, Inc. 620,000 16,817,500
----------------------------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp. 662,000 21,101,250
----------------------------------------------------------------------------------------------------------------------------
Nationwide Financial Services, Inc., Cl. A(3) 125,000 3,312,500
------------
41,231,250
- ------------------------------------------------------------------------------------------------------------------------------------
INSURANCE--22.1%
ACE Ltd. 766,200 45,972,000
----------------------------------------------------------------------------------------------------------------------------
AFLAC, Inc. 329,050 14,149,150
----------------------------------------------------------------------------------------------------------------------------
American International Group, Inc. 59,000 7,581,500
----------------------------------------------------------------------------------------------------------------------------
Everest Reinsurance Holdings, Inc. 340,000 9,775,000
----------------------------------------------------------------------------------------------------------------------------
EXEL Ltd. 1,131,400 44,124,600
----------------------------------------------------------------------------------------------------------------------------
General Re Corp. 149,000 24,920,250
----------------------------------------------------------------------------------------------------------------------------
Mid Ocean Ltd. 259,900 11,922,913
----------------------------------------------------------------------------------------------------------------------------
Progressive Corp. 162,000 12,332,250
------------
170,777,663
- ------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL--15.3%
- ------------------------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--1.1%
General Electric Co. 75,200 8,337,800
- ------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL SERVICES--1.7%
Donnelley (R.R.) & Sons Co. 380,000 13,015,000
- ------------------------------------------------------------------------------------------------------------------------------------
MANUFACTURING--10.5%
Caterpillar, Inc. 330,000 29,370,000
----------------------------------------------------------------------------------------------------------------------------
Dover Corp. 150,000 7,950,000
----------------------------------------------------------------------------------------------------------------------------
LucasVarity plc, ADR(3) 700,900 21,027,000
----------------------------------------------------------------------------------------------------------------------------
Tenneco, Inc. 290,000 11,563,750
----------------------------------------------------------------------------------------------------------------------------
Textron, Inc. 100,000 11,137,500
------------
81,048,250
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION--2.0%
Canadian Pacific Ltd. (New) 470,000 11,456,250
----------------------------------------------------------------------------------------------------------------------------
CSX Corp. 88,400 4,121,650
------------
15,577,900
</TABLE>
7 Oppenheimer Quest Value Fund, Inc.
<PAGE> 8
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
TECHNOLOGY--7.6%
- ------------------------------------------------------------------------------------------------------------------------------------
AEROSPACE/DEFENSE--4.8%
Lockheed Martin Corp. 270,000 $ 24,165,000
----------------------------------------------------------------------------------------------------------------------------
McDonnell Douglas Corp. 224,000 13,300,000
------------
37,465,000
- ------------------------------------------------------------------------------------------------------------------------------------
COMPUTER HARDWARE--0.7%
Adaptec, Inc.(3) 150,000 5,550,000
- ------------------------------------------------------------------------------------------------------------------------------------
ELECTRONICS--0.6%
Arrow Electronics, Inc.(3) 89,500 4,978,438
- ------------------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS-TECHNOLOGY--1.5%
Sprint Corp. 260,200 11,416,275
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES--0.2%
- ------------------------------------------------------------------------------------------------------------------------------------
GAS UTILITIES--0.2%
El Paso Natural Gas Co. 23,250 1,351,406
------------
Total Common Stocks (Cost $469,823,371) 627,315,082
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $613,192,291) 99.8% 771,181,168
- ------------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 0.2 1,803,693
------------- ------------
NET ASSETS 100.0% $772,984,861
============= ============
</TABLE>
1. Short-term notes are generally traded on a discount basis; the interest rate
is the discount rate received by the Fund at the time of purchase.
2. Identifies issues considered to be illiquid or restricted--See Note 5 of
Notes to Financial Statements.
3. Non-income producing security.
See accompanying Notes to Financial Statements.
8 Oppenheimer Quest Value Fund, Inc.
<PAGE> 9
Statement of Assets and Liabilities April 30, 1997 (Unaudited)
<TABLE>
====================================================================================================================================
<S> <C>
ASSETS
Investments, at value (cost $613,192,291)--see accompanying statement $771,181,168
----------------------------------------------------------------------------------------------------------------------------
Receivables:
Shares of capital stock sold 7,039,214
Interest and dividends 854,430
----------------------------------------------------------------------------------------------------------------------------
Other 23,379
------------
Total assets 779,098,191
====================================================================================================================================
LIABILITIES
Bank overdraft 509,537
----------------------------------------------------------------------------------------------------------------------------
Payables and other liabilities:
Shares of capital stock redeemed 3,475,228
Distribution and service plan fees 1,495,445
Investments purchased 304,164
Transfer agent and accounting service fees 27,181
Directors' fees 8,990
Other 292,785
------------
Total liabilities 6,113,330
====================================================================================================================================
NET ASSETS $772,984,861
============
====================================================================================================================================
COMPOSITION OF
NET ASSETS
Par value of shares of capital stock $ 44,445,528
----------------------------------------------------------------------------------------------------------------------------
Additional paid-in capital 545,952,171
----------------------------------------------------------------------------------------------------------------------------
Undistributed net investment income 1,568,294
----------------------------------------------------------------------------------------------------------------------------
Accumulated net realized gain on investment transactions 23,029,991
----------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments--Note 3 157,988,877
------------
Net assets $772,984,861
============
====================================================================================================================================
NET ASSET VALUE
PER SHARE
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$530,656,072 and 30,388,942 shares of capital stock outstanding) $17.46
Maximum offering price per share (net asset value plus sales charge
of 5.75% of offering price) $18.53
----------------------------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price and offering price per share (based on net assets
of $187,965,435 and 10,902,702 shares of capital stock outstanding) $17.24
----------------------------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price and offering price per share (based on net assets
of $53,510,950 and 3,105,133 shares of capital stock outstanding) $17.23
----------------------------------------------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based on net assets
of $852,404 and 48,751 shares of capital stock outstanding) $17.48
</TABLE>
See accompanying Notes to Financial Statements.
9 Oppenheimer Quest Value Fund, Inc.
<PAGE> 10
STATEMENT OF OPERATIONS For the Six Months Ended April 30, 1997 (Unaudited)
<TABLE>
====================================================================================================================================
<S> <C>
INVESTMENT INCOME
Dividend $4,379,939
----------------------------------------------------------------------------------------------------------------------------
Interest 3,186,339
------------
Total income 7,566,278
====================================================================================================================================
EXPENSES
Management fees--Note 4 3,168,578
----------------------------------------------------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 1,178,622
Class B 742,698
Class C 199,833
----------------------------------------------------------------------------------------------------------------------------
Transfer agent and accounting service fees--Note 4 276,131
----------------------------------------------------------------------------------------------------------------------------
Registration and filing fees:
Class A 157,735
Class B 60,228
Class C 17,034
Class Y 288
----------------------------------------------------------------------------------------------------------------------------
Shareholder reports 87,701
----------------------------------------------------------------------------------------------------------------------------
Legal and auditing fees 26,860
----------------------------------------------------------------------------------------------------------------------------
Custodian fees and expenses 14,613
----------------------------------------------------------------------------------------------------------------------------
Directors' fees and expenses 12,737
Other 38,483
------------
Total expenses 5,981,541
====================================================================================================================================
NET INVESTMENT INCOME 1,584,737
====================================================================================================================================
REALIZED AND
UNREALIZED GAIN
Net realized gain on investments 23,070,046
----------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments 16,225,703
------------
Net realized and unrealized gain 39,295,749
====================================================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $40,880,486
============
</TABLE>
See accompanying Notes to Financial Statements.
10 Oppenheimer Quest Value Fund, Inc.
<PAGE> 11
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1997 OCTOBER 31,
(UNAUDITED) 1996
===================================================================================================================================
<S> <C> <C>
OPERATIONS
Net investment income $ 1,584,737 $ 2,018,194
---------------------------------------------------------------------------------------------------------------------------
Net realized gain 23,070,046 31,502,109
---------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation 16,225,703 69,588,617
------------- -------------
Net increase in net assets resulting from operations 40,880,486 103,108,920
===================================================================================================================================
DIVIDENDS AND
DISTRIBUTIONS TO
SHAREHOLDERS
Dividends from net investment income:
Class A (1,801,333) (1,990,608)
Class B (107,343) (187,734)
Class C (27,574) (36,026)
---------------------------------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (22,962,111) (18,878,099)
Class B (6,696,157) (2,778,986)
Class C (1,768,806) (689,670)
===================================================================================================================================
CAPITAL STOCK
TRANSACTIONS
Net increase in net assets resulting from capital stock
transactions--Note 2:
Class A 112,908,660 67,398,927
Class B 75,255,585 59,694,507
Class C 23,827,353 15,679,507
Class Y 843,460 --
===================================================================================================================================
NET ASSETS
Total increase 220,352,220 221,320,738
---------------------------------------------------------------------------------------------------------------------------
Beginning of period 552,632,641 331,311,903
------------- -------------
End of period (including undistributed net investment
income of $1,568,294 and $1,919,807, respectively) $ 772,984,861 $ 552,632,641
============= =============
</TABLE>
See accompanying Notes to Financial Statements.
11 Oppenheimer Quest Value Fund, Inc.
<PAGE> 12
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A CLASS B
----------------------------------------------------------------------- --------------
SIX MONTHS SIX MONTHS
ENDED ENDED
APRIL 30, 1997 YEAR ENDED OCTOBER 31, APRIL 30, 1997
(UNAUDITED) 1996(3) 1995 1994 1993 1992 (UNAUDITED)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $17.30 $14.51 $12.59 $12.51 $11.71 $10.61 $17.08
- ----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment income (loss) .04 .08 .12(4) .09(4) .05(4) .04(4) .02
Net realized and unrealized gain (loss) 1.11 3.79 2.71 .50 1.34 1.77 1.07
------ ------ ------ ------ ------ ------ ------
Total income (loss) from
investment operations 1.15 3.87 2.83 .59 1.39 1.81 1.09
- ----------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions
to shareholders:
Dividends from net investment income (.07) (.10) (.08) (.04) (.05) (.07) (.01)
Distributions from net realized gain (.92) (.98) (.83) (.47) (.54) (.64) (.92)
------ ------ ------ ------ ------ ------ ------
Total dividends and distributions
to shareholders (.99) (1.08) (.91) (.51) (.59) (.71) (.93)
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $17.46 $17.30 $14.51 $12.59 $12.51 $11.71 $17.24
====== ====== ====== ====== ====== ====== ======
==================================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(5) 6.87% 28.39% 24.74% 5.01% 12.27% 18.45% 6.60%
==================================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $530,656 $412,246 $282,615 $238,085 $245,320 $142,939 $187,965
- ----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $476,410 $338,429 $257,240 $237,923 $205,074 $122,319 $150,307
- ----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) 0.62%(6) 0.58% 0.90% 0.72% 0.40% 0.53% 0.12%(6)
Expenses 1.66%(6) 1.71% 1.68% 1.71% 1.75% 1.75% 2.17%(6)
- ----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(7) 9.8% 36.0% 36.0% 49.0% 27.0% 41.0% 9.8%
Average brokerage commission rate(8) $ 0.0569 $0.0559 -- -- -- -- $0.0569
</TABLE>
1. For the period from December 16, 1996 (inception of offering) to April 30,
1997.
2. For the period from September 1, 1993 (inception of offering) to October 31,
1993.
3. On November 22, 1995, OppenheimerFunds, Inc. became the investment adviser
to the Fund.
4. Based on average shares outstanding for the period.
5. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period (or inception of offering), 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.
12 Oppenheimer Quest Value Fund, Inc.
<PAGE> 13
<TABLE>
<CAPTION>
CLASS C CLASS Y
- -------------------------------------------- --------------------------------------------------------------- -------------------
SIX MONTHS PERIOD
ENDED ENDED
YEAR ENDED OCTOBER 31, APRIL 30, 1997 YEAR ENDED OCTOBER 31, APRIL 30, 1997(1)
1996(3) 1995 1994 1993(2) (UNAUDITED) 1996(3) 1995 1994 1993(2) (UNAUDITED)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$14.37 $12.53 $12.51 $12.66 $17.07 $14.35 $12.52 $12.50 $12.66 $16.50
- ----------------------------------------------------------------------------------------------------------------------------------
.05 .05(4) .02(4) (.01)(4) .02 .04 .04(4) .01(4) (.01)(4) .02
3.71 2.69 .50 (.14) 1.07 3.71 2.70 .51 (.15) .96
------ ------ ------ ------ ------ ------ ------ ------ ----- ------
3.76 2.74 .52 (.15) 1.09 3.75 2.74 .52 (.16) .98
- ----------------------------------------------------------------------------------------------------------------------------------
(.07) (.07) (.03) -- (.01) (.05) (.08) (.03) -- --
(.98) (.83) (.47) -- (.92) (.98) (.83) (.47) -- --
------ ------ ------ ------ ------ ------ ------ ------ ----- ------
(1.05) (.90) (.50) -- (.93) (1.03) (.91) (.50) -- --
- ----------------------------------------------------------------------------------------------------------------------------------
$17.08 $14.37 $12.53 $12.51 $17.23 $17.07 $14.35 $12.52 $12.50 $17.48
------ ------ ------ ------ ------ ------ ------ ------ ------ -------
==================================================================================================================================
27.76% 24.08% 4.43% (1.19)% 6.60% 27.73% 24.10% 4.45% (1.26)% 5.94%
==================================================================================================================================
$111,130 $38,557 $14,373 $2,015 $53,511 $29,256 $10,140 $3,581 $221 $852
- ----------------------------------------------------------------------------------------------------------------------------------
$68,175 $25,393 $ 8,341 $1,136 $40,457 $18,099 $ 6,711 $1,725 $169 $185
- ----------------------------------------------------------------------------------------------------------------------------------
0.06% 0.36% 0.14% (1.19)%(6) 0.11%(6) 0.06% 0.31% 0.09% (0.90)%(6) 1.18%(6)
2.26% 2.21% 2.24% 2.27%(6) 2.18%(6) 2.20% 2.26% 2.28% 2.27%(6) 1.23%(6)
- ----------------------------------------------------------------------------------------------------------------------------------
36.0% 36.0% 49.0% 27.0% 9.8% 36.0% 36.0% 49.0% 27.0% 9.8%
$0.0559 -- -- -- $0.0569 $0.0559 -- -- -- $0.0569
</TABLE>
6. Annualized.
7. 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 April 30, 1997 were $191,282,049 and $54,161,174,
respectively.
8. Total brokerage commissions paid on applicable purchases and sales of
portfolio securities for the period, divided by the total number of related
shares purchased and sold.
See accompanying Notes to Financial Statements.
13 Oppenheimer Quest Value Fund, Inc.
<PAGE> 14
NOTES TO FINANCIAL STATEMENTS (Unaudited)
================================================================================
1. SIGNIFICANT
ACCOUNTING POLICIES
Oppenheimer Quest Value Fund, Inc. (the Fund) is registered under the
Investment Company Act of 1940, as amended, as a diversified, open-end
management investment company. The Fund's investment objective is to
seek capital appreciation. It is the intention of the Fund to continue
to invest in equity securities of companies believed by the Manager to
be undervalued. The Fund's investment adviser is OppenheimerFunds,
Inc. (the Manager). The Fund offers Class A, Class B, Class C and
Class Y shares. Class A shares are sold with a front-end sales charge.
Class B and Class C shares may be subject to a contingent deferred
sales charge. All classes of shares have identical rights to earnings,
assets and voting privileges, except that each class has its own
expenses directly attributable to a particular class and exclusive
voting rights with respect to matters affecting a single class.
Classes A, B and C have separate distribution and/or service plans. No
such plan has been adopted for Class Y shares. 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 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 Directors. 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 are valued under consistently applied procedures established
by the Board of Directors 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.
-----------------------------------------------------------------------
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.
-----------------------------------------------------------------------
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.
-----------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to
shareholders are recorded on the ex-dividend date.
-----------------------------------------------------------------------
Classification of Distributions to Shareholders. Net investment income
(loss) and net realized gain (loss) may differ for financial statement
and tax purposes. 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 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. Interest income is accrued on a
daily basis. 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
revenues and expenses during the reporting period. Actual results
could differ from those estimates.
14 Oppenheimer Quest Value Fund, Inc.
<PAGE> 15
================================================================================
2. CAPITAL STOCK
The Fund has authorized 100 million shares of $1.00 par value capital
stock in the aggregate to be apportioned among each class of shares.
Transactions in shares of capital stock were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED APRIL 30, 1997(1) YEAR ENDED OCTOBER 31, 1996
---------------------------------- ----------------------------------
SHARES AMOUNT SHARES AMOUNT
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 7,878,099 $ 136,714,910 6,823,030 $ 109,212,436
Dividends and distributions reinvested 1,380,399 23,314,876 1,381,459 19,409,592
Redeemed (2,700,895) (47,121,126) (3,849,611) (61,223,101)
------------- ------------- ------------- -------------
Net increase 6,557,603 $ 112,908,660 4,354,878 $ 67,398,927
============= ============= ============= =============
---------------------------------------------------------------------------------------------------------------------------
Class B:
Sold 4,637,727 $ 79,592,428 4,315,316 $ 67,660,385
Dividends and distributions reinvested 382,277 6,387,748 196,585 2,738,062
Redeemed (625,132) (10,724,591) (686,922) (10,703,940)
------------- ------------- ------------- -------------
Net increase 4,394,872 $ 75,255,585 3,824,979 $ 59,694,507
============= ============= ============= =============
---------------------------------------------------------------------------------------------------------------------------
Class C:
Sold 1,520,119 $ 26,074,985 1,267,566 $ 20,075,574
Dividends and distributions reinvested 105,642 1,764,202 51,443 716,599
Redeemed (234,466) (4,011,834) (311,646) (5,112,666)
------------- ------------- ------------- -------------
Net increase 1,391,295 $ 23,827,353 1,007,363 $ 15,679,507
============= ============= ============= =============
---------------------------------------------------------------------------------------------------------------------------
Class Y:
Sold 49,265 $ 852,319 -- $ --
Redeemed (514) (8,859) -- --
------------- ------------- ------------- -------------
Net increase 48,751 $ 843,460 -- $ --
============= ============= ============= =============
</TABLE>
1. For the six months ended April 30, 1997 for Class A, B and C and
for the period from December 16, 1996 (inception of offering) to April
30, 1997 for Class Y shares.
================================================================================
3. UNREALIZED GAINS AND
LOSSES ON INVESTMENTS
At April 30, 1997, net unrealized appreciation on investments of
$157,988,877 was composed of gross appreciation of $162,183,448, and
gross depreciation of $4,194,571.
================================================================================
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 a fee
of 1.00% of the first $400 million of average annual net assets, 0.90%
of the next $400 million of average annual net assets, and 0.85% of
average annual net assets in excess of $800 million. The Manager acts
as the accounting agent for the Fund at an annual fee of $55,000, plus
out-of-pocket costs and expenses reasonably incurred.
The Manager pays OpCap Advisors (the Sub-Adviser) based on the
fee schedule set forth in the Prospectus. For the six months ended
April 30, 1997, the Manager paid $1,122,688 to the Sub-Adviser. On
February 13, 1997 PIMCO Advisors L.P., signed a definitive agreement
with Oppenheimer Group, Inc. and its subsidiary Oppenheimer Financial
Corp. for PIMCO Advisors L.P. and its affiliate, Thomson Advisory
Group, Inc., to acquire the one-third managing general partner
interest in Oppenheimer Capital (the parent of OpCap Advisors) and the
1.0% general interest in Oppenheimer Capital L.P.
For the six months ended April 30, 1997, commissions (sales
charges paid by investors) on sales of Class A shares totaled
$1,809,640, of which $545,107 was retained by OppenheimerFunds
Distributor, Inc. (OFDI), a subsidiary of the Manager, as general
distributor, and by an affiliated broker/dealer. Sales charges
advanced to broker/dealers by OFDI on sales of the Fund's Class B and
Class C shares totaled $2,741,479 and $227,732, of which $97,713 and
$2,863, respectively, was paid to an affiliated broker/dealer. During
the six months ended April 30, 1997, OFDI received contingent deferred
sales charges of $135,763 and $5,398, respectively, upon redemption of
Class B and Class C shares as reimbursement for sales commissions
advanced by OFDI at the time of sale of such shares.
OppenheimerFunds Services (OFS), a division of the Manager, is
the transfer and shareholder servicing agent for the Fund, and for
other registered investment companies. The Fund pays OFS an annual
maintenance fee of $14.85 for each Fund shareholder account and
reimburses OFS for its out-of-pocket expenses. During the six months
ended April 30, 1997, the Fund paid OFS $247,200.
15 Oppenheimer Quest Value Fund, Inc.
<PAGE> 16
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
================================================================================
4. MANAGEMENT FEES
AND OTHER TRANSACTIONS
WITH AFFILIATES
(CONTINUED)
Under a proposed Distribution and Service Plan for Class A shares
(that was approved by the Board of Directors at a meeting held
February 4, 1997 and by the shareholders of the Fund at a meeting held
June 2, 1997) OFDI is compensated for a portion of its costs incurred
in connection with the personal service and maintenance of accounts
that hold Class A shares. Under the Plan, the Fund pays an annual
asset-based sales charge to OFDI of 0.25% per year on Class A shares.
The Fund also pays a service fee to OFDI of 0.25% per year. Both fees
are computed on the average annual net assets of Class A shares of the
Fund, determined as of the close of each regular business day. OFDI
uses all of the service fee and a portion of the asset-based sales
charge to compensate brokers, dealers, banks and other financial
institutions quarterly for providing personal service and maintenance
of accounts of their customers that hold Class A shares. OFDI retains
the balance of the asset-based sales charge to reimburse itself for
its other expenditures under the Plan. During the six months ended
April 30, 1997, OFDI paid $248,992 to an affiliated broker/dealer as
compensation for Class A personal service and maintenance expenses and
retained $244,787 as compensation for Class A sales commissions and
service fee advances, as well as financing costs.
Under proposed Distribution and Service Plans for Class B and
C shares (that were approved by the Board of Directors at a meeting
held February 4, 1997 and by the shareholders of the Fund at a meeting
held June 2, 1997) OFDI is compensated for its services and costs in
distributing Class B and Class C shares and servicing accounts. Under
the Plans, the Fund pays OFDI an annual asset-based sales charge of
0.75% per year on Class B shares and on Class C shares, as
compensation for sales commissions paid from its own resources at the
time of sale and associated financing costs. OFDI also receives a
service fee of 0.25% per year as compensation 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 financial institutions. Both fees are computed on the
average annual net assets of Class B and Class C shares, determined as
of the close of each regular business day. During the six months ended
April 30, 1997, OFDI paid $18,578 and $15,555, respectively, to an
affiliated broker/dealer as compensation for Class B and Class C
personal service and maintenance expenses and retained $662,420 and
$131,603, respectively, as compensation for Class B and Class C sales
commissions and service fee advances, as well as financing costs. If
the Plans are terminated by the Fund, the Board of Directors may allow
the Fund to continue payments of the asset-based sales charge to OFDI
for certain expenses it incurred before the Plans were terminated. At
April 30, 1997, OFDI had incurred unreimbursed expenses of $4,610,193
for Class B and $482,524 for Class C.
================================================================================
5. ILLIQUID AND
RESTRICTED SECURITIES
At April 30, 1997, investments in securities included issues that are
illiquid or restricted. Restricted securities are often purchased in
private placement transactions, are not registered under the
Securities Act of 1933, may have contractual restrictions on resale,
and are valued under methods approved by the Board of Directors as
reflecting fair value. A security may be considered illiquid if it
lacks a readily available market or if its valuation has not changed
for a certain period of time. The Fund intends to invest no more than
10% of its net assets (determined at the time of purchase and reviewed
from time to time) in illiquid or restricted securities. Certain
restricted securities, eligible for resale to qualified institutional
investors, are not subject to that limit. The aggregate value of
illiquid or restricted securities subject to this limitation at April
30, 1997 was $6,504,028, which represents 0.84% of the Fund's net
assets. Information concerning restricted securities is as follows:
<TABLE>
<CAPTION>
VALUATION PER UNIT
SECURITY ACQUISITION DATES COST PER UNIT AS OF APRIL 30, 1997
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
BONDS:
Security Capital Realty, Inc., 12% Cv. Sub. Debs., 6/30/14 9/15/94--10/11/95 94.25% 116.40%
-------------------------------------------------------------------------------------------------------------------------
Security Capital Realty, Inc., 12% Cv. Sub. Debs.
Interest Shares, 6/30/14 1/1/95--12/31/96 100.00 100.00
STOCKS:
Security Capital Realty, Inc. 9/15/94--4/17/95 $925.50 $1,217.50
</TABLE>
16 Oppenheimer Quest Value Fund, Inc.
<PAGE> 17
OPPENHEIMER QUEST VALUE FUND, INC.
================================================================================
OFFICERS AND DIRECTORS
Bridget A. Macaskill, Chairman of the Board of Directors and President
Paul Y. Clinton, Director
Thomas W. Courtney, Director
Lacy B. Herrmann, Director
George Loft, Director
Robert C. Doll, Jr., Vice President
George C. Bowen, Treasurer
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Andrew J. Donohue, Secretary
Robert G. Zack, Assistant Secretary
================================================================================
INVESTMENT ADVISER
OppenheimerFunds, Inc.
================================================================================
SUB-ADVISER
OpCap Advisors
================================================================================
DISTRIBUTOR
OppenheimerFunds Distributor, Inc.
================================================================================
TRANSFER AND SHAREHOLDER
SERVICING AGENT
OppenheimerFunds Services
================================================================================
CUSTODIAN OF
PORTFOLIO SECURITIES
State Street Bank and Trust Company
================================================================================
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
================================================================================
LEGAL COUNSEL
Gordon Altman Butowsky Weitzen Shalov & Wein
The financial statements included herein have been taken from the
records of the Fund without examination by the independent
accountants.
This is a copy of a report to shareholders of Oppenheimer Quest Value
Fund, Inc. This report must be preceded or accompanied by a Prospectus
of Oppenheimer Quest Value Fund, Inc. 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.
17 Oppenheimer Quest Value Fund, Inc.
<PAGE> 18
OPPENHEIMERFUNDS FAMILY
================================================================================
OppenheimerFunds offers over 50 funds designed to fit virtually every
investment goal. Whether you're investing for retirement, your
children's education or tax-free income, we have the funds to help you
seek your objective.
When you invest with OppenheimerFunds, you can feel
comfortable knowing that you are investing with a respected financial
institution with over 35 years of experience in helping people just
like you reach their financial goals. And you're investing with a
leader in global, growth stock and flexible fixed-income
investments--with over 3 million shareholder accounts and more than
$60 billion under OppenheimerFunds' management and that of our
affiliates.
At OppenheimerFunds we don't charge a fee to exchange shares.
And you can exchange shares easily by mail or by telephone.(1) For
more information on Oppenheimer funds, please contact your financial
adviser or call us at 1-800-525-7048 for a prospectus. You may also
write us at the address shown on the back cover. As always, please
read the prospectus carefully before you invest.
<TABLE>
<S> <C>
=============================================================================================================
REAL ASSET FUNDS
Real Asset Fund Gold & Special Minerals Fund
=============================================================================================================
STOCK FUNDS
Developing Markets Fund Growth Fund
Global Emerging Growth Fund Global Fund
Enterprise Fund Quest Global Value Fund
International Growth Fund Disciplined Value Fund
Discovery Fund Oppenheimer Fund
Quest Small Cap Value Fund Value Stock Fund
Capital Appreciation Fund(2) Quest Value Fund
Quest Capital Value Fund
=============================================================================================================
STOCK & BOND FUNDS
Main Street Income & Growth Fund Equity Income Fund
Quest Opportunity Value Fund Disciplined Allocation Fund
Total Return Fund Multiple Strategies Fund(3)
Quest Growth & Income Value Fund Strategic Income & Growth Fund
Global Growth & Income Fund Bond Fund for Growth
=============================================================================================================
BOND FUNDS
International Bond Fund Bond Fund
High Yield Fund U.S. Government Trust
Champion Income Fund Limited-Term Government Fund
Strategic Income Fund
=============================================================================================================
MUNICIPAL FUNDS
California Municipal Fund(4) Insured Municipal Fund
Florida Municipal Fund(4) Intermediate Municipal Fund
New Jersey Municipal Fund(4)
New York Municipal Fund(4) Rochester Division
Pennsylvania Municipal Fund(4) Rochester Fund Municipals
Municipal Bond Fund Limited Term New York Municipal Fund
=============================================================================================================
MONEY MARKET FUNDS(5)
Money Market Fund Cash Reserves
=============================================================================================================
LIFESPAN
Growth Fund Income Fund
Balanced Fund
</TABLE>
1. Exchange privileges are subject to change or termination. Shares
may be exchanged only for shares of the same class of eligible funds.
2. On 12/18/96, the Fund's name was changed from "Target Fund."
3. On 3/6/97, the Fund's name was changed from "Asset Allocation
Fund."
4. Available only to investors in certain states.
5. An investment in money market funds is neither insured nor
guaranteed by the U.S. government and there can be no assurance that a
money market fund will be able to maintain a stable net asset value of
$1.00 per share.
Oppenheimer funds are distributed by OppenheimerFunds Distributor,
Inc., Two World Trade Center, New York, NY 10048-0203.
(C) Copyright 1997 OppenheimerFunds, Inc. All rights reserved.
18 Oppenheimer Quest Value Fund, Inc.
<PAGE> 19
INFORMATION
GENERAL INFORMATION
Monday-Friday 8:30 a.m.-9 p.m. ET
Saturday 10 a.m.-2 p.m. ET
1-800-525-7048
TELEPHONE TRANSACTIONS
Monday-Friday 8:30 a.m.-8 p.m. ET
1-800-852-8457
PHONELINK
24 hours a day, automated
information and transactions
1-800-533-3310
TELECOMMUNICATIONS DEVICE
FOR THE DEAF (TDD)
Monday-Friday 8:30 a.m.-8 p.m. ET
1-800-843-4461
OPPENHEIMERFUNDS
INFORMATION HOTLINE
24 hours a day, timely and insightful
messages on the economy and
issues that affect your investments
1-800-835-3104
RS0225.001.0497 June 30, 1997
[PHOTO]
Customer Service Representative
OppenheimerFunds Services
"HOW MAY I HELP YOU?"
As an Oppenheimer fund shareholder, you have some special privileges. Whether
it's automatic investment plans, informative newsletters and hotlines, or ready
account access, you can benefit from services designed to make investing
simple.
And when you need help, our Customer Service Representatives are only a
toll-free phone call away. They can provide information about your account and
handle administrative requests. You can reach them at our General Information
number.
When you want to make a transaction, you can do it easily by calling
our toll-free Telephone Transactions number. And, by enrolling in AccountLink,
a convenient service that "links" your Oppenheimer funds accounts and your bank
checking or savings account, you can use the Telephone Transactions number to
make investments.
For added convenience, you can get automated information with
OppenheimerFunds PhoneLink service, available 24 hours a day, 7 days a week.
PhoneLink gives you access to a variety of fund, account, and market
information. Of course, you can always speak with a Customer Service
Representative during the General Information hours shown at the left.
You can count on us whenever you need assistance. That's why the
International Customer Service Association, an independent, nonprofit
organization made up of over 3,200 customer service management professionals
from around the country, honored the Oppenheimer funds' transfer agent,
OppenheimerFunds Services, with their Award of Excellence in 1993.
So call us today--we're here to help.
[OPPENHEIMERFUNDS LOGO]
OppenheimerFunds Distributor, Inc.
P.O. Box 5270
Denver, CO 80217-5270
- ----------------
Bulk Rate
U.S. Postage
PAID
Permit No. 469
Denver, CO
- ----------------
