<PAGE>
[PHOTO]
ANNUAL REPORT OCTOBER 31, 1999
OPPENHEIMER
QUEST VALUE FUND, INC.
[LOGO] OPPENHEIMERFUNDS-REGISTERED TRADEMARK-
THE RIGHT WAY TO INVEST
<PAGE>
REPORT HIGHLIGHTS
CONTENTS
1 President's Letter
3 An Interview with Your Fund's Managers
7 Fund Performance
12 FINANCIAL STATEMENTS
29 REPORT OF INDEPENDENT ACCOUNTANTS
30 Federal Income Tax Information
31 Officers and Directors
32 OppenheimerFunds Family
EVEN THOUGH MANY VALUE STOCKS OFFER EXCEPTIONAL BUSINESS PROSPECTS, they
continued to underperform growth stocks during the year.
The Fund's financial stocks suffered AS A RESULT OF RISING INTEREST RATES.
POSITIVE CONTRIBUTIONS TO PERFORMANCE were generated by several stocks in the
consumer goods and technology sectors.
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
For the 1-Year Period Ended 10/31/99 *
<S> <C>
CLASS A
Without With
Sales Chg. Sales Chg.
- ---------------------------
6.15% 0.05%
CLASS B
Without With
Sales Chg. Sales Chg.
- ---------------------------
5.51% 0.51%
CLASS C
Without With
Sales Chg. Sales Chg.
- ---------------------------
5.55% 4.55%
CLASS Y
Without With
Sales Chg. Sales Chg.
- ---------------------------
6.45% 6.45%
</TABLE>
- ------------------
NOT FDIC INSURED.
NO BANK GUARANTEE.
MAY LOSE VALUE.
- ------------------
* See page 10 for further details.
<PAGE>
PRESIDENT'S LETTER
[PHOTO]
BRIDGET A. MACASKILL
President
Oppenheimer
Quest Value Fund, Inc.
DEAR SHAREHOLDER,
Whenever a new year begins--let alone a new decade or century--it makes sense to
pause a moment to assess where we've been and where we're going.
In retrospect, U.S. stocks and bonds in 1999 were subject to sudden and
substantial swings in investor sentiment because of economic uncertainty. When
the year began, investors were concerned that growth in the United States might
slow in response to economic weakness overseas. At mid-year, investors were
concerned that the economy was too strong, potentially rekindling inflationary
pressures. Yet, by year end, it became clearer that while the U.S. economy grew
robustly in 1999, inflation remained at low levels. Indeed, investors appeared
more comfortable with the economy after the Federal Reserve Board demonstrated
its inflation-fighting resolve by raising interest rates three times between
June and November.
As is normal in a rising-interest-rate environment, bond prices generally
declined in 1999, led lower by U.S. Treasury bonds. In the stock market, while
most major indices advanced, strong performance was mostly limited to a handful
of large-capitalization growth companies, principally in the technology arena.
Smaller and value-oriented stocks provided particularly lackluster returns and,
overall, foreign stocks outperformed U.S. stocks in 1999.
Looking forward, we expect the U.S. economy to remain on a moderate-growth,
low-inflation course. As recent revisions of 1999's economic statistics
demonstrated, the economy has defied many analysts' forecasts by growing at a
strong rate, which should be positive for the bond market. Similarly, positive
economic forces could help the stock market's performance broaden to include
value-oriented and smaller stocks.
We see particularly compelling opportunities outside of the U.S. market.
Many foreign stocks also ended 1999 more attractively valued than large-cap U.S.
stocks, and economic trends in overseas markets could lead to higher stock
prices.
1 OPPENHEIMER QUEST VALUE FUND, INC.
<PAGE>
PRESIDENT'S LETTER
In Europe, corporate restructuring has just begun, giving companies there the
same potential for cost-cutting and productivity improvements that U.S.
companies enjoyed 10 years ago. In Japan and Asia, economic recovery is expected
to gain strength, which could allow stocks to rally from relatively low levels.
Another 1999 trend that should remain in force in 2000 is the growth of
businesses related to the Internet. The rise of e-commerce has been good for
consumers and the economy because of greater price competition, which has helped
keep inflation under control. The Internet has also been good for investors, as
even companies with no earnings have seen their stock prices soar. Clearly,
while the Internet is here to stay, not all "dot-com" companies will survive,
and many of these high-flying Internet stocks will eventually--and perhaps very
suddenly--return to more reasonable levels. The long-term winners are most
likely to be companies that support the Internet's growth with content or
infrastructure.
What else is in store for investors in 2000? While we do not have an
infallible crystal ball, we believe that in almost any investment environment,
consistent success stems from an unwavering focus on fundamental investment
principles such as maintaining a long-term perspective, using diversification to
manage risk, and availing oneself of the services of a knowledgeable financial
advisor. Indeed, these principles serve as the foundation for every investment
we offer, helping to make OppenheimerFunds THE RIGHT WAY TO INVEST in 2000 and
beyond.
Sincerely,
/s/ Bridget A. Macaskill
Bridget A. Macaskill
November 19, 1999
These general market views represent opinions of OppenheimerFunds, Inc. and are
not intended to predict or depict performance of any particular fund. Specific
discussion, as it applies to your Fund, is contained in the pages that follow.
2 OPPENHEIMER QUEST VALUE FUND, INC.
<PAGE>
AN INTERVIEW WITH YOUR FUND'S MANAGERS
Q. HOW DID THE FUND PERFORM DURING THE ONE-YEAR PERIOD THAT ENDED OCTOBER 31,
1999?
A. The past fiscal year has been very challenging for Oppenheimer Quest Value
Fund, Inc. To a great extent, investors focused their attention, and dollars, on
larger capitalization growth and technology stocks. As a result, for much of the
period, value stocks were overlooked and their performance suffered.
CAN YOU DESCRIBE THE STOCK MARKET ENVIRONMENT OVER THE LAST YEAR?
While the stock market rose during the latter part of 1998 and the first quarter
of 1999, the rally was deceiving. The strong returns generated by a handful of
large growth and technology companies accounted for most of the market's gains.
With investors largely ignoring the majority of other stocks, most produced
lackluster results.
The trend temporarily changed course during the second quarter of 1999.
Strong economic growth led investors to briefly favor economically sensitive,
smaller capitalization, and more value-oriented stocks. With people seeking a
wider universe of stocks for their portfolios, more companies were able to
participate in the market's ascent.
During the third quarter, the stock market experienced yet another shift.
With the ongoing strength of the U.S. economy, the Federal Reserve Board raised
short-term interest rates on two occasions. Virtually every sector of the stock
market treaded water or declined during the quarter. The only notable exception
was the technology sector. Despite the interest rate environment, strong
investor demand propelled many tech stocks to new highs.
3 OPPENHEIMER QUEST VALUE FUND, INC.
<PAGE>
AN INTERVIEW WITH YOUR FUND'S MANAGERS
"WE ALSO BELIEVE THAT VALUE STOCKS AND CAREFUL ASSET ALLOCATION WILL CONTINUE TO
PLAY AN IMPORTANT ROLE IN A WELL-DIVERSIFIED PORTFOLIO."
DID YOU ALTER YOUR INVESTMENT STRATEGY WHEN THE VARIOUS MARKET SHIFTS OCCURRED?
As a rule, we will not change our focus and "chase" the bestperforming stocks
during short-term periods. Rather, we maintain a disciplined investment style
that focuses on investing in larger capitalization value stocks. We use a
bottom-up selection process to identify these stocks for the Fund. This entails
employing rigorous fundamental analysis on each potential and existing holding.
Some of the elements we focus on are the strength of a company's management
team, its business prospects and cash flow.
CAN YOU SHARE SOME EXAMPLES OF STOCKS THAT PERFORMED WELL FOR THE FUND?
Minnesota Mining & Manufacturing Co., commonly known as 3M, has been an
outstanding performer for the Fund. The firm manufactures and markets products
including tape, imaging equipment and medical aids, such as nasal strips. As a
multinational organization, 3M was hurt during the 1999 Asian currency crisis.
However, with the turnaround in the Asian economies leading to stronger demand
for 3M's products, its stock price has rebounded strongly since April 1999.
Software producer Computer Associates International, Inc. has also
contributed strongly to performance. The firm's stock price fell by about 50%
from April 1998 to March 1999, due to concerns that demand for its products
would fall because of disruptions surrounding the year 2000 issue. This has not
proven to be the case, and the company's earnings have surpassed Wall Street
expectations.
4 OPPENHEIMER QUEST VALUE FUND, INC.
<PAGE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
For the Periods Ended 9/30/99 (1)
<S> <C> <C>
CLASS A
1-Year 5-Year 10-Year
- ----------------------------------
2.78% 16.13% 13.06%
CLASS B Since
1-Year 5-Year Inception
- ----------------------------------
3.48% 16.68% 14.05%
CLASS C Since
1-Year 5-Year Inception
- ----------------------------------
7.46% 16.90% 14.04%
CLASS Y Since
1-Year 5-Year Inception
- ----------------------------------
9.39% N/A 12.24%
</TABLE>
HOW HAVE THE FUND'S FINANCIAL STOCKS PERFORMED DURING THE LAST YEAR?
Rising interest rates have led to poor performance throughout much of the
financial sector. When rates rise it tends to lead to falling profit margins in
the industry. The Fund's holding in Freddie Mac was one such casualty. Freddie
Mac is a shareholder-owned, government sponsored enterprise that provides a
continuous flow of funds to mortgage lenders. Despite the robust housing market
and Freddie Mac's strong balance sheet, investors have focused on the interest
rate environment, and the accompanying decline in mortgage refinancing. Freddie
Mac's stock has suffered as a result.
Another firm that has been hurt by rising rates is insurance company XL
Capital Ltd., Cl. A. However, we remain optimistic about the company's
longer-term prospects. The firm recently completed the purchase of another
insurance company that could lead to enhanced business prospects and cost
savings. In addition, the firm is well run and it has excellent cash flow, which
could lead to further acquisition activity.
OPPENHEIMER QUEST VALUE FUND, INC. NOW HAS AN INVESTMENT TEAM APPROACH. HOW WILL
THIS CHANGE AFFECT SHAREHOLDERS?
The Fund will continue to seek capital appreciation by investing in securities
believed to be undervalued in the market-place. The current investment team of
eight managers should offer shareholders a greater breadth of investment ideas
and expertise. And shareholders can take comfort in knowing that these managers
together have an average of 20 years of investment experience.
1. See page 10 for further details.
5 OPPENHEIMER QUEST VALUE FUND, INC.
<PAGE>
SECTOR ALLOCATION (2)
[CHART]
<TABLE>
<S> <C>
- - Financial 31.7%
- - Capital Goods 20.7
- - Consumer Staples 10.5
- - Technology 8.0
- - Communication Services 7.7
- - Basic Materials 6.6
- - Consumer Cyclicals 5.5
- - Healthcare 4.7
- - Transportation 4.6
</TABLE>
WHAT IS THE MANAGEMENT TEAM'S OUTLOOK FOR THE FUND IN THE COMING MONTHS?
The valuations of many growth stocks are at historically high levels versus
their value stock counterparts. This has occurred despite the excellent business
prospects of value companies. Therefore, we are optimistic about the long-term
opportunities presented by value stocks, and in the Fund's portfolio, in
particular. We also believe that value stocks and careful asset allocation will
continue to play an important role in a well-diversified portfolio. Those are
but a few reasons why Oppenheimer Quest Value Fund, Inc. is an important part of
THE RIGHT WAY TO INVEST.
<TABLE>
<CAPTION>
TOP INDUSTRIES(2)
- ----------------------------------------------------------------
<S> <C>
Manufacturing 12.7%
- ----------------------------------------------------------------
Diversified Financial 12.0
- ----------------------------------------------------------------
Insurance 11.6
- ----------------------------------------------------------------
Banks 8.1
- ----------------------------------------------------------------
Telecommunications: Long Distance 5.7
- ----------------------------------------------------------------
TOP TEN STOCK HOLDINGS(2)
- ----------------------------------------------------------------
Freddie Mac 4.3%
- ----------------------------------------------------------------
XL Capital Ltd., Cl. A 3.8
- ----------------------------------------------------------------
Computer Associates International, Inc. 3.6
- ----------------------------------------------------------------
Citigroup, Inc. 3.5
- ----------------------------------------------------------------
Wells Fargo Co. 3.5
- ----------------------------------------------------------------
American Home Products Corp. 3.3
- ----------------------------------------------------------------
Fleet Boston Corp. 3.3
- ----------------------------------------------------------------
Minnesota Mining & Manufacturing Co. 3.1
- ----------------------------------------------------------------
AMR Corp. 2.9
- ----------------------------------------------------------------
Textron, Inc. 2.9
- ----------------------------------------------------------------
</TABLE>
2. Portfolio is subject to change. Percentages are as of October 31, 1999, and
are based on total market value of common stock.
6 OPPENHEIMER QUEST VALUE FUND, INC.
<PAGE>
FUND PERFORMANCE
HOW HAS THE FUND PERFORMED? BELOW IS A DISCUSSION, BY THE MANAGER, OF THE FUND'S
PERFORMANCE DURING ITS FISCAL YEAR ENDED OCTOBER 31, 1999, FOLLOWED BY A
GRAPHICAL COMPARISON OF THE FUND'S PERFORMANCE TO AN APPROPRIATE BROAD-BASED
MARKET INDEX.
MANAGEMENT'S DISCUSSION OF PERFORMANCE. During the fiscal year that ended
October 31, 1999, the Fund operated in a market environment that generally
favored large growth and technology stocks. This adversely affected the relative
performance of Oppenheimer Quest Value Fund, Inc. However, the Fund continued to
meet its objective of providing capital appreciation while managing risk.
Throughout the fiscal year, the Fund's managers maintained their disciplined
long-term investment strategy that seeks to identify stocks that have low
price-to-earnings ratios versus the S&P 500 Index. This approach worked well on
many occasions, as securities in a variety of sectors helped to enhanced
performance. However, many of its financial stocks performed poorly, as interest
rates rose during the reporting period. The Fund's portfolio holdings,
allocation and strategies are subject to change.
COMPARING THE FUND'S PERFORMANCE TO THE MARKET. The graphs that follow show the
performance of a hypothetical $10,000 investment in each class of shares of the
Fund held until October 31, 1999. In the case of Class A shares, performance is
measured for a 10-year period. In the case of Class B and Class C shares,
performance is measured from inception of those classes on September 1, 1993. In
the case of Class Y shares, performance is measured from inception of the class
on December 16, 1996. The Fund's performance reflects the deduction of the
maximum initial sales charge on Class A shares, the applicable contingent
deferred sales charge on Class B and Class C shares, and reinvestments of all
dividends and capital gains distributions.
The Fund's performance is compared to the performance of the Standard &
Poor's (S&P) 500 Index, a broad-based index of equity securities widely regarded
as a general measure of the performance of the U.S. equity securities market.
Index performance reflects the reinvestment of income but does not consider the
effect of capital gains or transaction costs, and none of the data in the graphs
shows the effect of taxes. The Fund's performance reflects the effects of Fund
business and operating expenses. While index comparisons may be useful to
provide a benchmark for the Fund's performance, it must be noted that the Fund's
investments are not limited to the securities in the index.
7 OPPENHEIMER QUEST VALUE FUND, INC.
<PAGE>
FUND PERFORMANCE
CLASS A SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Quest Value Fund, Inc. (Class A)
and S&P 500 Index
[GRAPH]
<TABLE>
<CAPTION>
Oppenheimer Quest
Value Fund, Inc.
Class A S&P 500 Index
<S> <C> <C>
10/31/89 9,425 10,000
10/31/90 8,159 9,253
10/31/91 11,255 12,344
10/31/92 13,333 13,572
10/31/93 14,967 15,598
10/31/94 15,718 16,200
10/31/95 19,606 20,476
10/31/96 25,175 25,401
10/31/97 31,571 33,549
10/31/98 34,689 40,931
10/31/99 36,823 51,434
</TABLE>
AVERAGE ANNUAL TOTAL RETURN OF CLASS A SHARES OF THE FUND AT 10/31/99(1)
1-YEAR 0.05% 5-YEAR 17.17% 10-YEAR 13.92%
CLASS B SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Quest Value Fund, Inc. (Class B)
and S&P 500 Index
[GRAPH]
<TABLE>
<CAPTION>
Oppenheimer Quest
Value Fund, Inc.
Class B S&P 500 Index
<S> <C> <C>
9/1/93 10,000 10,000
10/31/93 9,882 10,128
10/31/94 10,319 10,519
10/31/95 12,805 13,296
10/31/96 16,359 16,494
10/31/97 20,403 21,785
10/31/98 22,316 26,579
10/31/99 23,546 33,398
</TABLE>
AVERAGE ANNUAL TOTAL RETURN OF CLASS B SHARES OF THE FUND AT 10/31/99(1)
1-YEAR 0.51% 5-YEAR 17.73% LIFE 14.92%
8 OPPENHEIMER QUEST VALUE FUND, INC.
<PAGE>
CLASS C SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Quest Value Fund, Inc. (Class C)
and S&P 500 Index
<TABLE>
<CAPTION>
Oppenheimer Quest
Value Fund, Inc.
Class C S&P 500 Index
<S> <C> <C>
9/1/93 10,000 10,000
10/31/93 9,874 10,128
10/31/94 10,313 10,519
10/31/95 12,798 13,296
10/31/96 16,347 16,494
10/31/97 20,400 21,785
10/31/98 22,301 26,579
10/31/99 23,537 33,398
</TABLE>
Average Annual Total Return of Class C Shares of the Fund at 10/31/99(1)
1-YEAR 4.55% 5-YEAR 17.94% LIFE 14.89%
CLASS Y SHARES
COMPARISON OF CHANGE IN VALUE OF $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Quest Value Fund, Inc. (Class Y)
and S&P 500 Index
<TABLE>
<CAPTION>
Oppenheimer Quest
Value Fund, Inc.
Class Y S&P 500 Index
<S> <C> <C>
12/16/96 10,000 10,000
10/31/97 12,455 12,529
10/31/98 13,745 15,285
10/31/99 14,630 19,207
</TABLE>
Average Annual Total Return of Class Y Shares of the Fund at 10/31/99(1)
1-YEAR 6.45% LIFE 14.15%
The performance information for the S&P 500 Index in the graphs begins on
10/31/89 for Class A, 8/31/93 for Class B and Class C, and 12/31/96 for Class Y.
1. See page 10 for further details.
Past performance is not predictive of future performance. Graphs are not drawn
to the same scale.
9 OPPENHEIMER QUEST VALUE FUND, INC.
<PAGE>
NOTES
IN REVIEWING PERFORMANCE AND RANKINGS, PLEASE REMEMBER THAT PAST PERFORMANCE
DOES NOT GUARANTEE FUTURE RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. BECAUSE OF ONGOING
MARKET VOLATILITY, THE FUND'S PERFORMANCE MAY BE SUBJECT TO SUBSTANTIAL
SHORT-TERM CHANGES. FOR UPDATES ON THE FUND'S PERFORMANCE, PLEASE CONTACT YOUR
FINANCIAL ADVISOR, CALL US AT 1.800.525.7048 OR VISIT OUR WEBSITE,
WWW.OPPENHEIMERFUNDS.COM.
OppenheimerFunds, Inc. became the Fund's advisor on 11/22/95. The Fund's
sub-advisor is OpCap Advisors, which was the Fund's advisor prior to 11/22/95.
The portfolio management team is employed by the Fund's sub-advisor.
Formerly,Eileen Rominger was the portfolio manager for the Fund. Effective
August 11, 1999, she was succeeded by a portfolio management team comprised of
senior investment professionals at Oppenheimer Capital.
Total returns and the ending account values in the graphs include changes in
share price and reinvestment of dividends and capital gains distributions in a
hypothetical investment for the periods shown.
CLASS A shares were first publicly offered on 4/30/80. The average annual total
returns are shown net of the applicable 5.75% maximum initial sales charge. The
Fund's maximum sales charge for Class A shares was lower prior to 11/24/95, so
actual performance may have been higher. Class A shares are subject to an annual
0.25% asset-based sales charge.
CLASS B shares of the Fund were first publicly offered on 9/1/93. The average
annual total returns are shown net of the applicable contingent deferred sales
charges of 5% (1-year) and 1% (5-year). Because Class B shares convert to Class
A shares 72 months after purchase, the "life of class" return for Class B uses
Class A performance for the period after conversion. Class B shares are subject
to an annual 0.75% asset-based sales charge.
CLASS C shares of the Fund were first publicly offered on 9/1/93. The average
annual total returns are shown net of the applicable 1% contingent deferred
sales charge for the one-year period. Class C shares are subject to an annual
0.75% asset-based sales charge.
CLASS Y shares of the Fund were first publicly offered on 12/16/96. Class Y
shares are offered only to certain institutional investors under special
agreement with the Distributor.
An explanation of the different performance calculations is in the Fund's
prospectus.
10 OPPENHEIMER QUEST VALUE FUND, INC.
<PAGE>
- -------------------------------------------------------------------------------
FINANCIALS
- -------------------------------------------------------------------------------
11 OPPENHEIMER QUEST VALUE FUND, INC.
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF INVESTMENTS OCTOBER 31, 1999
MARKET VALUE
SHARES SEE NOTE 1
- ------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS--99.1%
- ------------------------------------------------------------------------------------
BASIC MATERIALS--6.5%
- ------------------------------------------------------------------------------------
CHEMICALS--4.6%
Du Pont (E.I.) De Nemours & Co. 640,000 $ 41,240,000
- ------------------------------------------------------------------------------------
Monsanto Co. 800,000 30,800,000
--------------
72,040,000
- ------------------------------------------------------------------------------------
METALS--1.9%
Alcoa, Inc. 500,000 30,375,000
- ------------------------------------------------------------------------------------
CAPITAL GOODS--20.5%
- ------------------------------------------------------------------------------------
AEROSPACE/DEFENSE--2.0%
General Dynamics Corp. 300,000 16,631,250
- ------------------------------------------------------------------------------------
Raytheon Co., Cl. A 100,000 2,743,750
- ------------------------------------------------------------------------------------
Raytheon Co., Cl. B 400,000 11,650,000
--------------
31,025,000
- ------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--3.7%
Emerson Electric Co. 650,000 39,040,625
- ------------------------------------------------------------------------------------
Rockwell International Corp. 400,000 19,375,000
--------------
58,415,625
- ------------------------------------------------------------------------------------
INDUSTRIAL SERVICES--2.2%
Waste Management, Inc. 1,900,000 34,912,500
- ------------------------------------------------------------------------------------
MANUFACTURING--12.6%
Avery-Dennison Corp. 400,000 25,000,000
- ------------------------------------------------------------------------------------
Caterpillar, Inc. 675,000 37,293,750
- ------------------------------------------------------------------------------------
Dover Corp. 1,000,000 42,562,500
- ------------------------------------------------------------------------------------
Minnesota Mining & Manufacturing Co. 510,000 48,481,875
- ------------------------------------------------------------------------------------
Textron, Inc. 590,000 45,540,625
--------------
198,878,750
- ------------------------------------------------------------------------------------
COMMUNICATION SERVICES--7.7%
- ------------------------------------------------------------------------------------
Telecommunications: Long Distance--5.6%
AT&T Corp. 350,000 16,362,500
- ------------------------------------------------------------------------------------
MCI WorldCom, Inc.(1) 450,000 38,615,625
- ------------------------------------------------------------------------------------
Sprint Corp. (Fon Group) 450,000 33,440,625
--------------
88,418,750
- ------------------------------------------------------------------------------------
TELEPHONE UTILITIES--2.1%
Bell Atlantic Corp. 500,000 32,468,750
12 OPPENHEIMER QUEST VALUE FUND, INC.
<PAGE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- ------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER CYCLICALS--5.4%
- ------------------------------------------------------------------------------------
CONSUMER SERVICES--0.8%
Omnicom Group, Inc. 150,000 $ 13,200,000
- ------------------------------------------------------------------------------------
LEISURE & ENTERTAINMENT--1.1%
Carnival Corp. 400,000 17,800,000
- ------------------------------------------------------------------------------------
MEDIA--2.0%
Donnelley (R.R.) & Sons Co. 580,000 14,065,000
- ------------------------------------------------------------------------------------
WPP Group plc, Sponsored ADR 150,000 16,481,250
--------------
30,546,250
- ------------------------------------------------------------------------------------
RETAIL: GENERAL--1.5%
May Department Stores Co. 694,500 24,090,469
- ------------------------------------------------------------------------------------
CONSUMER STAPLES--10.6%
- ------------------------------------------------------------------------------------
BROADCASTING--2.9%
AMFM, Inc.(1) 650,000 45,500,000
- ------------------------------------------------------------------------------------
ENTERTAINMENT--4.2%
Disney (Walt) Co.(1) 700,000 18,462,500
- ------------------------------------------------------------------------------------
McDonald's Corp. 800,000 33,000,000
- ------------------------------------------------------------------------------------
News Corp. Ltd., Sponsored ADR, Preference 500,000 13,781,250
--------------
65,243,750
- ------------------------------------------------------------------------------------
FOOD--1.4%
Diageo plc, Sponsored ADR 521,120 21,170,500
- ------------------------------------------------------------------------------------
FOOD & DRUG RETAILERS--2.1%
Kroger Co.(1) 1,550,000 32,259,375
- ------------------------------------------------------------------------------------
FINANCIAL--31.5%
- ------------------------------------------------------------------------------------
BANKS--8.1%
Chase Manhattan Corp. 250,000 21,843,750
- ------------------------------------------------------------------------------------
Fleet Boston Corp. 1,167,818 50,946,060
- ------------------------------------------------------------------------------------
Wells Fargo Co. 1,126,660 53,938,848
--------------
126,728,658
- ------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL--11.9%
Citigroup, Inc. 1,000,000 54,125,000
- ------------------------------------------------------------------------------------
Countrywide Credit Industries, Inc. 627,500 21,295,781
- ------------------------------------------------------------------------------------
Freddie Mac 1,250,000 67,578,125
- ------------------------------------------------------------------------------------
Household International, Inc. 1,000,000 44,625,000
--------------
187,623,906
- ------------------------------------------------------------------------------------
INSURANCE--11.5%
ACE Ltd. 1,735,100 33,726,006
- ------------------------------------------------------------------------------------
AFLAC, Inc. 738,100 37,735,363
13 OPPENHEIMER QUEST VALUE FUND, INC.
<PAGE>
STATEMENT OF INVESTMENTS CONTINUED
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- ------------------------------------------------------------------------------------
<S> <C> <C>
INSURANCE Continued
Conseco, Inc. 989,729 $ 24,062,786
- ------------------------------------------------------------------------------------
Everest Reinsurance Holdings, Inc. 1,000,000 25,750,000
- ------------------------------------------------------------------------------------
XL Capital Ltd., Cl. A 1,102,221 59,175,490
---------------
180,449,645
- ------------------------------------------------------------------------------------
HEALTHCARE--4.6%
- ------------------------------------------------------------------------------------
HEALTHCARE/DRUGS--3.3%
American Home Products Corp. 1,000,000 52,250,000
- ------------------------------------------------------------------------------------
HEALTHCARE/SUPPLIES & SERVICES--1.3%
Becton, Dickinson & Co. 821,000 20,832,875
- ------------------------------------------------------------------------------------
TECHNOLOGY--7.8%
- ------------------------------------------------------------------------------------
COMPUTER HARDWARE--1.4%
Compaq Computer Corp. 1,180,000 22,420,000
- ------------------------------------------------------------------------------------
COMPUTER SOFTWARE--3.6%
Computer Associates International, Inc. 1,000,000 56,500,000
- ------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT--1.6%
L.M. Ericsson Telephone Co., Cl. B, ADR 600,000 25,650,000
- ------------------------------------------------------------------------------------
ELECTRONICS--1.2%
Motorola, Inc. 200,000 19,487,500
- ------------------------------------------------------------------------------------
TRANSPORTATION--4.5%
- ------------------------------------------------------------------------------------
AIR TRANSPORTATION--2.9%
AMR Corp.(1) 724,000 45,974,000
- ------------------------------------------------------------------------------------
RAILROADS & TRUCKERS--1.6%
Canadian Pacific Ltd. 1,087,500 25,624,219
---------------
Total Common Stocks (Cost $1,352,451,317) 1,559,885,522
</TABLE>
<TABLE>
<CAPTION>
FACE
AMOUNT
- -------------------------------------------------------------------------------------
<S> <C> <C>
SHORT-TERM NOTES--1.1%(2)
Federal Home Loan Bank, 5.16%, 11/1/99
(Cost $16,935,000) $16,935,000 16,935,000
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $1,369,386,317) 100.2% 1,576,820,522
- -------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS (0.2) (2,730,014)
----------------------------
NET ASSETS 100.0% $1,574,090,508
----------------------------
----------------------------
</TABLE>
FOOTNOTES TO STATEMENT OF INVESTMENTS
1. Non-income-producing security.
2. 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.
See accompanying Notes to Financial Statements.
14 OPPENHEIMER QUEST VALUE FUND, INC.
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES OCTOBER 31, 1999
<TABLE>
- ------------------------------------------------------------------------------------
<S> <C>
ASSETS
Investments, at value (cost $1,369,386,317)--see
accompanying statement $1,576,820,522
- ------------------------------------------------------------------------------------
Cash 95,997
- ------------------------------------------------------------------------------------
Receivables and other assets:
Shares of capital stock sold 1,457,932
Interest and dividends 1,346,071
Other 51,891
---------------
Total assets 1,579,772,413
- ------------------------------------------------------------------------------------
LIABILITIES
Payables and other liabilities:
Shares of capital stock redeemed 4,659,001
Distribution and service plan fees 317,598
Transfer and shareholder servicing agent fees 242,383
Shareholder reports 228,708
Directors' compensation 138,347
Other 95,868
---------------
Total liabilities 5,681,905
- ------------------------------------------------------------------------------------
NET ASSETS $1,574,090,508
---------------
---------------
- ------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
Par value of shares of capital stock $ 72,943,356
- ------------------------------------------------------------------------------------
Additional paid-in capital 1,113,489,339
- ------------------------------------------------------------------------------------
Overdistributed net investment income (137,820)
- ------------------------------------------------------------------------------------
Accumulated net realized gain on investment transactions 180,361,428
- ------------------------------------------------------------------------------------
Net unrealized appreciation on investments 207,434,205
---------------
Net assets $1,574,090,508
---------------
---------------
</TABLE>
15 OPPENHEIMER QUEST VALUE FUND, INC.
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES CONTINUED
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------
<S> <C>
NET ASSET VALUE PER SHARE
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$906,697,962 and 41,655,519 shares of capital stock outstanding) $21.77
Maximum offering price per share (net asset value plus sales charge of
5.75% of offering price) $23.10
- ---------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net assets
of $520,146,121 and 24,397,542 shares of capital stock outstanding) $21.32
- ---------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net assets
of $132,667,573 and 6,222,048 shares of capital stock outstanding) $21.32
- ---------------------------------------------------------------------------------------------
Class Y Shares:
- ---------------------------------------------------------------------------------------------
Net asset value, redemption price and offering price per share (based
on net assets of $14,578,852 and 668,247 shares of capital stock outstanding) $21.82
</TABLE>
See accompanying Notes to Financial Statements.
16 OPPENHEIMER QUEST VALUE FUND, INC.
<PAGE>
STATEMENT OF OPERATIONS FOR THE YEAR ENDED OCTOBER 31,1999
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends (net of foreign withholding taxes of $51,938) $ 21,424,077
- -------------------------------------------------------------------------------------
Interest 6,496,646
---------------
Total income 27,920,723
- ------------------------------------------------------------------------------------
EXPENSES
Management fees 15,030,491
- ------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 4,886,518
Class B 5,414,155
Class C 1,433,985
- ------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 1,191,747
Class B 1,036,385
Class C 238,219
Class Y 40,308
- ------------------------------------------------------------------------------------
Directors' compensation 155,564
- ------------------------------------------------------------------------------------
Custodian fees and expenses 70,694
- ------------------------------------------------------------------------------------
Other 1,203,355
---------------
Total expenses 30,701,421
Less expenses paid indirectly (14,201)
---------------
Net expenses 30,687,220
- ------------------------------------------------------------------------------------
NET INVESTMENT LOSS (2,766,497)
- ------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain on investments 183,043,399
- ------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments (87,953,317)
---------------
Net realized and unrealized gain 95,090,082
- ------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $92,323,585
---------------
---------------
</TABLE>
See accompanying Notes to Financial Statements.
17 OPPENHEIMER QUEST VALUE FUND, INC.
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31, 1999 1998
- ----------------------------------------------------------------------------------------------------------
OPERATIONS
<S> <C> <C>
Net investment income (loss) $ (2,766,497) $ 8,974,122
- ----------------------------------------------------------------------------------------------------------
Net realized gain 183,043,399 65,256,883
- ----------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation (87,953,317) 25,203,846
--------------------------------------
Net increase in net assets resulting from operations 92,323,585 99,434,851
- ------------------------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income:
Class A (6,746,450) (3,823,240)
Class B (1,678,587) (722,471)
Class C (433,959) (193,326)
Class Y (116,654) (30,052)
- ------------------------------------------------------------------------------------------------------------
Dividends in excess of net investment income:
Class A (26,322) --
Class B (6,549) --
Class C (1,693) --
Class Y (455) --
- ------------------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (38,188,719) (30,482,358)
Class B (20,944,577) (13,497,474)
Class C (5,714,099) (3,754,824)
Class Y (406,888) (142,429)
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS
Net increase (decrease) in net assets resulting
from capital stock transactions:
Class A (82,471,668) 244,992,480
Class B 3,096,866 203,694,646
Class C (8,962,373) 55,117,897
Class Y 4,332,150 6,679,862
- ------------------------------------------------------------------------------------------------------------
NET ASSETS
Total increase (decrease) (65,946,392) 557,273,562
- ----------------------------------------------------------------------------------------------------------
Beginning of period 1,640,036,900 1,082,763,338
--------------------------------------
End of period [including undistributed (overdistributed)
net investment income of $(137,820) and $8,975,648, respectively] $1,574,090,508 $1,640,036,900
--------------------------------------
--------------------------------------
</TABLE>
See accompanying Notes to Financial Statements.
18 OPPENHEIMER QUEST VALUE FUND, INC.
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A YEAR ENDED OCTOBER 31, 1999 1998 1997 1996(1) 1995
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA
Net asset value, beginning of period $21.46 $20.49 $17.30 $14.51 $12.59
- --------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) .02 .15 .11 .08 .12(2)
Net realized and unrealized gain 1.28 1.80 4.07 3.79 2.71
-----------------------------------------------------------
Total income from investment operations 1.30 1.95 4.18 3.87 2.83
- --------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.15) (.11) (.07) (.10) (.08)
Dividends in excess of net investment income --(3) -- -- -- --
Distributions from net realized gain (.84) (.87) (.92) (.98) (.83)
-----------------------------------------------------------
Total dividends and distributions to shareholders (.99) (.98) (.99) (1.08) (.91)
- --------------------------------------------------------------------------------------------------------------
Net asset value, end of period $21.77 $21.46 $20.49 $17.30 $14.51
-----------------------------------------------------------
-----------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(4) 6.15% 9.87% 25.41% 28.39% 24.74%
- --------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $906,698 $976,655 $699,230 $412,246 $282,615
- --------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $977,120 $853,061 $560,582 $338,429 $257,240
- --------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(5)
Net investment income (loss) 0.07% 0.83% 0.74% 0.58% 0.90%
Expenses 1.60% 1.59%(6) 1.60%(6) 1.71%(6) 1.68%(6)
- --------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(7) 62% 21% 20% 36% 36%
</TABLE>
1. On November 22, 1995, OppenheimerFunds, Inc. became the investment advisor to
the Fund.
2. Based on average shares outstanding for the period.
3. Less than $0.005 per share.
4. Assumes a $1,000 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.
5. Annualized for periods of less than one full year.
6. Expense ratio reflects the effect of expenses paid indirectly by the Fund.
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 October 31, 1999, were $117,124,514 and $953,837,905, respectively.
See accompanying Notes to Financial Statements.
19 OPPENHEIMER QUEST VALUE FUND, INC.
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS CONTINUED
CLASS B YEAR ENDED OCTOBER 31, 1999 1998 1997 1996(1) 1995
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA
Net asset value, beginning of period $21.08 $20.17 $17.08 $14.37 $12.53
- --------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) (.11) .07 .05 .05 .05(2)
Net realized and unrealized gain 1.26 1.76 3.97 3.71 2.69
------------------------------------------------------------
Total income from investment operations 1.15 1.83 4.02 3.76 2.74
- --------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.07) (.05) (.01) (.07) (.07)
Dividends in excess of net investment income --(3) -- -- -- --
Distributions from net realized gain (.84) (.87) (.92) (.98) (.83)
------------------------------------------------------------
Total dividends and distributions to shareholders (.91) (.92) (.93) (1.05) (.90)
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $21.32 $21.08 $20.17 $17.08 $14.37
------------------------------------------------------------
------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(4) 5.51% 9.38% 24.71% 27.76% 24.08%
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $520,146 $512,885 $298,348 $111,130 $38,557
- --------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $541,440 $417,011 $200,752 $68,175 $25,393
- --------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(5)
Net investment income (loss) (0.51)% 0.33% 0.25% 0.06% 0.36%
Expenses 2.17% 2.09%(6) 2.10%(6) 2.26%(6) 2.21%(6)
- --------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(7) 62% 21% 20% 36% 36%
</TABLE>
1. On November 22, 1995, OppenheimerFunds, Inc. became the investment advisor to
the Fund.
2. Based on average shares outstanding for the period.
3. Less than $0.005 per share.
4. Assumes a $1,000 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.
5. Annualized for periods of less than one full year.
6. Expense ratio reflects the effect of expenses paid indirectly by the Fund.
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 October 31, 1999, were $117,124,514 and $953,837,905, respectively.
See accompanying Notes to Financial Statements.
20 OPPENHEIMER QUEST VALUE FUND, INC.
<PAGE>
<TABLE>
<CAPTION>
CLASS C YEAR ENDED OCTOBER 31, 1999 1998 1997 1996(1) 1995
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA
Net asset value, beginning of period $21.07 $20.17 $17.07 $14.35 $12.52
- ---------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) (.11) .07 .05 .04 .04(2)
Net realized and unrealized gain 1.26 1.75 3.98 3.71 2.70
---------------------------------------------------------------------
Total income from investment operations 1.15 1.82 4.03 3.75 2.74
- ---------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.06) (.05) (.01) (.05) (.08)
Dividends in excess of net investment income --(3) -- -- -- --
Distributions from net realized gain (.84) (.87) (.92) (.98) (.83)
---------------------------------------------------------------------
Total dividends and distributions to shareholders (.90) (.92) (.93) (1.03) (.91)
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $21.32 $21.07 $20.17 $17.07 $14.35
---------------------------------------------------------------------
---------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(4) 5.55% 9.32% 24.79% 27.73% 24.10%
- ---------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $132,668 $140,461 $82,098 $29,256 $10,140
- ---------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $143,378 $116,160 $55,969 $18,099 $6,711
- ---------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(5)
Net investment income (loss) (0.48)% 0.33% 0.25% 0.06% 0.31%
Expenses 2.15% 2.10%(6) 2.10%(6) 2.20%(6) 2.26%(6)
- ---------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(7) 62% 21% 20% 36% 36%
</TABLE>
1. On November 22, 1995, OppenheimerFunds, Inc. became the investment advisor to
the Fund.
2. Based on average shares outstanding for the period.
3. Less than $0.005 per share.
4. Assumes a $1,000 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.
5. Annualized for periods of less than one full year.
6. Expense ratio reflects the effect of expenses paid indirectly by the Fund.
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 October 31, 1999, were $117,124,514 and $953,837,905, respectively.
See accompanying Notes to Financial Statements.
21 OPPENHEIMER QUEST VALUE FUND, INC.
<PAGE>
FINANCIAL HIGHLIGHTS CONTINUED
<TABLE>
<CAPTION>
CLASS Y YEAR ENDED OCTOBER 31, 1999 1998 1997(8)
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
PER SHARE OPERATING DATA
Net asset value, beginning of period $21.54 $20.55 $16.50
- ---------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) .08 .21 .10
Net realized and unrealized gain 1.28 1.83 3.95
------------------------------------------
Total income from investment operations 1.36 2.04 4.05
- ---------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.24) (.18) --
Dividends in excess of net investment income --(3) -- --
Distributions from net realized gain (.84) (.87) --
------------------------------------------
Total dividends and distributions to shareholders (1.08) (1.05) --
- ---------------------------------------------------------------------------------------------------
Net asset value, end of period $21.82 $21.54 $20.55
------------------------------------------
------------------------------------------
- ---------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(4) 6.45% 10.36% 24.55%
- ---------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $14,579 $10,036 $3,086
- ---------------------------------------------------------------------------------------------------
Average net assets (in thousands) $12,065 $ 5,673 $1,372
- ---------------------------------------------------------------------------------------------------
Ratios to average net assets:(5)
Net investment income (loss) 0.32% 1.30% 1.20%
Expenses 1.33% 1.14%(6) 1.19%(6)
- ---------------------------------------------------------------------------------------------------
Portfolio turnover rate(7) 62% 21% 20%
</TABLE>
1. On November 22, 1995, OppenheimerFunds, Inc. became the investment advisor to
the Fund.
2. Based on average shares outstanding for the period.
3. Less than $0.005 per share.
4. Assumes a $1,000 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.
5. Annualized for periods of less than one full year.
6. Expense ratio reflects the effect of expenses paid indirectly by the Fund.
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 October 31, 1999, were $117,124,514 and $953,837,905, respectively.
8. For the period from December 16, 1996 (inception of offering) to October 31,
1997.
See accompanying Notes to Financial Statements.
22 OPPENHEIMER QUEST VALUE FUND, INC.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
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. The Fund's investment advisor is OppenheimerFunds, Inc. (the
Manager). The Manager has entered into a subadvisory agreement with OpCap
Advisors. The Fund offers Class A, Class B, Class C and Class Y shares. Class A
shares are sold with a front-end sales charge on investments up to $1 million.
Class B and Class C shares may be subject to a contingent deferred sales charge
(CDSC). Class Y shares are sold to certain institutional investors without
either a front-end sales charge or a CDSC. All classes of shares have identical
rights to earnings, assets and voting privileges, except that each class has its
own expenses directly attributable to that class and exclusive voting rights
with respect to matters affecting that class. Classes A, B and C have separate
distribution and/or service plans. 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.
- --------------------------------------------------------------------------------
SECURITIES 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 an
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. Foreign currency exchange contracts are valued based on the
closing prices of the foreign currency contract rates in the London foreign
exchange markets on a daily basis as provided by a reliable bank or dealer.
Options are valued based upon the last sale price on the principal exchange on
which the option is traded or, in the absence of any transactions that day, the
value is based upon the last sale price on the prior trading date if it is
within the spread between the closing bid and asked prices. If the last sale
price is outside the spread, the closing bid is used.
- --------------------------------------------------------------------------------
ALLOCATION OF INCOME, EXPENSES, GAINS AND LOSSES. Income, expenses (other than
those attributable to a specific class), gains and losses are allocated daily to
each class of shares based upon the relative proportion of net assets
represented by such class. Operating expenses directly attributable to a
specific class are charged against the operations of that class.
23 OPPENHEIMER QUEST VALUE FUND, INC.
<PAGE>
1. SIGNIFICANT ACCOUNTING POLICIES Continued
FEDERAL TAXES. The Fund intends to continue to comply with provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income, including any net realized gain on
investments not offset by loss carryovers to shareholders. Therefore, no
federal income or excise tax provision is required.
- --------------------------------------------------------------------------------
DIRECTORS' COMPENSATION. The Fund has adopted a nonfunded retirement plan for
the Fund's independent Directors. Benefits are based on years of service and
fees paid to each director during the years of service. During the year ended
October 31, 1999, a provision of $113,133 was made for the Fund's projected
benefit obligations resulting in an accumulated liability of $137,818 as of
October 31, 1999.
The Board of Directors has adopted a deferred compensation plan for
independent Directors that enables Directors to elect to defer receipt of all
or a portion of annual compensation they are entitled to receive from the
Fund. Under the plan, the compensation deferred is periodically adjusted as
though an equivalent amount had been invested for the Directors in shares of
one or more Oppenheimer funds selected by the Director. The amount paid to
the Director under the plan will be determined based upon the performance of
the selected funds. Deferral of Directors' fees under the plan will not
affect the net assets of the Fund, and will not materially affect the Fund's
assets, liabilities or net income per share.
- --------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations,
are recorded on the ex-dividend date.
- --------------------------------------------------------------------------------
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 distributions made during the year from net
investment income or net realized gains may differ from its ultimate
characterization for federal income tax purposes. Also, due to timing of
dividend distributions, the fiscal year in which amounts are distributed may
differ from the fiscal year in which the income or realized gain was recorded by
the Fund.
The Fund adjusts the classification of distributions to shareholders to
reflect the differences between financial statement amounts and distributions
determined in accordance with income tax regulations. Accordingly, during the
year ended October 31, 1999, amounts have been reclassified to reflect a
decrease in overdistributed net investment income of $2,663,698. Accumulated net
realized gain on investments was decreased by the same amount.
- --------------------------------------------------------------------------------
EXPENSE OFFSET ARRANGEMENTS. Expenses paid indirectly represent a reduction of
custodian fees for earnings on cash balances maintained by the Fund.
24 OPPENHEIMER QUEST VALUE FUND, INC.
<PAGE>
- --------------------------------------------------------------------------------
OTHER. Investment transactions are accounted for as of trade date and dividend
income is recorded on the ex-dividend date. Foreign dividend income is often
recorded on the payable date. Realized gains and losses on investments and
unrealized appreciation and depreciation are determined on an identified cost
basis, which is the same basis used for federal income tax purposes.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of income and expenses during the reporting
period. Actual results could differ from those estimates.
- ------------------------------------------------------------------------------
2. CAPITAL STOCK
The Fund has authorized 125 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>
YEAR ENDED OCTOBER 31, 1999 YEAR ENDED OCTOBER 31, 1998
SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------------------------
CLASS A:
<S> <C> <C> <C> <C>
Sold 11,694,065 $ 252,611,389 16,583,852 $ 357,559,555
Dividends and/or
distributions reinvested 2,024,604 43,002,612 1,630,228 32,669,682
Acquisition--Note 6 -- -- 314,171 7,009,162
Redeemed (17,571,687) (378,085,669) (7,150,327) (152,245,919)
------------------------------------------------------------------------
Net increase (decrease) (3,853,018) $ (82,471,668) 11,377,924 $ 244,992,480
------------------------------------------------------------------------
------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------
CLASS B:
Sold 6,613,830 $ 141,247,575 11,429,512 $ 243,714,221
Dividends and/or
distributions reinvested 1,023,776 21,407,158 679,452 13,432,763
Redeemed (7,575,616) (159,557,867) (2,562,176) (53,452,338)
------------------------------------------------------------------------
Net increase 61,990 $ 3,096,866 9,546,788 $ 203,694,646
------------------------------------------------------------------------
------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------
CLASS C:
Sold 2,048,494 $ 43,807,706 3,514,464 $ 74,782,338
Dividends and/or
distributions reinvested 282,097 5,898,654 192,925 3,812,187
Redeemed (2,774,837) (58,668,733) (1,111,708) (23,476,628)
------------------------------------------------------------------------
Net increase (decrease) (444,246) $ (8,962,373) 2,595,681 $ 55,117,897
------------------------------------------------------------------------
------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------
CLASS Y:
Sold 444,747 $ 9,620,394 401,966 $ 8,582,342
Dividends and/or
distributions reinvested 24,681 523,996 8,611 172,481
Redeemed (267,144) (5,812,240) (94,838) (2,074,961)
------------------------------------------------------------------------
------------------------------------------------------------------------
Net increase 202,284 $ 4,332,150 315,739 $ 6,679,862
------------------------------------------------------------------------
------------------------------------------------------------------------
</TABLE>
25 OPPENHEIMER QUEST VALUE FUND, INC.
<PAGE>
- --------------------------------------------------------------------------------
3. UNREALIZED GAINS AND LOSSES ON SECURITIES
As of October 31, 1999, net nurealized appreciation on securities of
$207,434,205 was composed of gross appreciation of $336,154,766, and gross
depreciation of $128,720,561.
- --------------------------------------------------------------------------------
4. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
MANAGEMENT FEES. Management fees paid to the Manager were in accordance with the
investment advisory agreement with the Fund which provides for a fee of 1.00% of
the first $400 million of average annual net assets of the Fund, 0.90% of the
next $400 million, 0.85% of the next $3.2 billion, 0.80% of the next $4 billion,
and 0.75% of average annual net assets in excess of $8 billion. The Fund's
management fee for the year ended October 31, 1999, was 0.90% of the average
annual net assets for each class of shares.
- --------------------------------------------------------------------------------
SUB-ADVISOR FEES. The Manager pays OpCap Advisors (the Sub-Advisor) based on the
fee schedule set forth in the Prospectus. For the year ended October 31, 1999,
the Manager paid $4,859,175 to the Sub-Advisor.
- --------------------------------------------------------------------------------
TRANSFER AGENT FEES. Oppenheimer Funds Services (OFS), a division of the
Manager, is the transfer and shareholder servicing agent for the Fund and
other Oppenheimer funds. The Fund pays OFS an annual maintenance fee of
$18.00 for each Fund shareholder account and reimburses OFS for its
out-of-pocket expenses. During the year ended October 31, 1999, the Fund paid
OFS $2,444,721.
- --------------------------------------------------------------------------------
DISTRIBUTION AND SERVICE PLAN FEES. Under its General Distributor's Agreement
with the Manager, the Distributor acts as the Fund's principal underwriter in
the continuous public offering of the different classes of shares of the Fund.
The compensation paid to (or retained by) the Distributor from the sale of
shares or on the redemption of shares is shown in the table below for the period
indicated.
<TABLE>
<CAPTION>
AGGREGATE CLASS A COMMISSIONS COMMISSIONS COMMISSIONS
FRONT-END FRONT-END ON CLASS A ON CLASS B ON CLASS C
SALES CHARGES SALES CHARGES SHARES SHARES SHARES
ON CLASS A RETAINED BY ADVANCED BY ADVANCED BY ADVANCED BY
YEAR ENDED SHARES DISTRIBUTOR DISTRIBUTOR(1) DISTRIBUTOR(1) DISTRIBUTOR(1)
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
October 31, 1999 $2,381,904 $657,551 $408,852 $3,900,908 $348,333
</TABLE>
1. The Distributor advances commission payments to dealers for certain sales of
Class A shares and for sales of Class B and Class C shares from its own
resources at the time of sale.
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C
CONTINGENT DEFERRED CONTINGENT DEFERRED CONTINGENT DEFERRED
SALES CHARGES SALES CHARGES SALES CHARGES
YEAR ENDED RETAINED BY DISTRIBUTOR RETAINED BY DISTRIBUTOR RETAINED BY DISTRIBUTOR
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
October 31, 1999 $15,730 $1,516,890 $57,357
</TABLE>
26 OPPENHEIMER QUEST VALUE FUND, INC.
<PAGE>
The Fund has adopted Distribution and Service Plans for Class A, Class B and
Class C shares under Rule 12b-1 of the Investment Company Act. Under those plans
the Fund pays the Distributor for all or a portion of its costs incurred in
connection with the distribution and/or servicing of the shares of the
particular class.
- --------------------------------------------------------------------------------
CLASS A DISTRIBUTION AND SERVICE PLAN FEES. Under the plan the Fund pays an
asset-based sales charge to the Distributor at an annual rate of 0.25% of
average annual net assets of Class A shares of the Fund. The Fund also pays a
service fee to the Distributor of 0.25% of the average annual net assets of
Class A shares. The Distributor currently uses the fees it receives from the
Fund to pay brokers, dealers and other financial institutions. The Distributor
makes payments to plan recipients quarterly at an annual rate not to exceed
0.25% of the average annual net assets consisting of Class A shares of the Fund.
For the fiscal year ended October 31, 1999, payments under the Class A Plan
totaled $4,886,518, all of which was paid by the Distributor to recipients. That
included $138,115 paid to an affiliate of the Distributor's parent company. Any
unreimbursed expenses the Distributor incurs with respect to Class A shares in
any fiscal year cannot be recovered in subsequent years.
- --------------------------------------------------------------------------------
CLASS B AND CLASS C DISTRIBUTION AND SERVICE PLAN FEES. Under each plan, service
fees and distribution fees are computed on the average of the net asset value of
shares in the respective class, determined as of the close of each regular
business day during the period. The Class B and Class C plans provide for the
Distributor to be compensated at a flat rate, whether the Distributor's
distribution expenses are more or less than the amounts paid by the Fund under
the plan during the period for which the fee is paid.
The Distributor retains the asset-based sales charge on Class B shares. The
Distributor retains the asset-based sales charge on Class C shares during the
first year the shares are outstanding. The asset-based sales charges on Class B
and Class C shares allow investors to buy shares without a front-end sales
charge while allowing the Distributor to compensate dealers that sell those
shares.
The Distributor's actual expenses in selling Class B and Class C shares may
be more than the payments it receives from the contingent deferred sales charges
collected on redeemed shares and from the Fund under the plans. If either the
Class B or the Class C plan is terminated by the Fund, the Board of Directors
may allow the Fund to continue payments of the asset-based sales charge to the
Distributor for distributing shares before the plan was terminated. The plans
allow for the carry-forward of distribution expenses, to be recovered from
asset-based sales charges in subsequent fiscal periods.
Distribution fees paid to the Distributor for the year ended October 31, 1999,
were as follows:
<TABLE>
<CAPTION>
DISTRIBUTOR'S DISTRIBUTOR'S
AGGREGATE UNREIMBURSED
UNREIMBURSED EXPENSES AS %
TOTAL PAYMENTS AMOUNT RETAINED EXPENSES OF NET ASSETS
UNDER PLAN BY DISTRIBUTOR UNDER PLAN OF CLASS
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class B Plan $5,414,155 $4,480,718 $11,834,332 2.28%
Class C Plan 1,433,985 676,415 1,477,084 1.11
</TABLE>
27 OPPENHEIMER QUEST VALUE FUND, INC.
<PAGE>
NOTES TO FINANCIAL STATEMENTS CONTINUED
- -------------------------------------------------------------------------------
5. BANK BORROWINGS
The Fund may borrow from a bank for temporary or emergency purposes including,
without limitation, funding of shareholder redemptions provided asset coverage
for borrowings exceeds 300%. The Fund has entered into an agreement which
enables it to participate with other Oppenheimer funds in an unsecured line of
credit with a bank, which permits borrowings up to $400 million, collectively.
Interest is charged to each fund, based on its borrowings, at a rate equal to
the Federal Funds Rate plus 0.45%. Borrowings are payable 30 days after such
loan is executed. The Fund also pays a commitment fee equal to its pro rata
share of the average unutilized amount of the credit facility at a rate of 0.08%
per annum.
The Fund had no borrowings outstanding during the year ended October 31,
1999.
- -------------------------------------------------------------------------------
6. ACQUISITION OF OPPENHEIMER QUEST OFFICERS VALUE FUND
On June 12, 1998, Oppenheimer Quest Value Fund, Inc. acquired all of the net
assets of Oppenheimer Quest Officers Value Fund, pursuant to an agreement and
plan of reorganization approved by the Oppenheimer Quest Officers Value Fund
shareholders on February 18, 1998. The Fund issued (at an exchange ratio of
0.643267 shares of the Fund to one share of Oppenheimer Officers Value Fund)
314,171 shares of capital stock valued at $7,009,162 in exchange for the net
assets of Oppenheimer Quest Officers Value Fund, resulting in combined net
assets of $1,516,410,126 on June 12, 1998. The net assets acquired included net
unrealized appreciation of $1,143,229. The exchange qualified as a tax-free
reorganization for federal income tax purposes.
28 OPPENHEIMER QUEST VALUE FUND, INC.
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
- -------------------------------------------------------------------------------
TO THE BOARD OF DIRECTORS AND SHAREHOLDERS OF
OPPENHEIMER QUEST VALUE FUND, INC.
In our opinion, the accompanying statement of assets and liabilities, including
the statement of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Oppenheimer Quest Value Fund, Inc.
(the Fund) at October 31, 1999, and the results of its operations for the year
then ended, the changes in its net assets for each of the two years in the
period then ended and the financial highlights for each of the periods
indicated, in conformity with generally accepted accounting principles. These
financial statements and financial highlights (hereafter referred to as
financial statements) are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards, which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial presentation. We
believe that our audits, which included confirmation of securities at October
31, 1999, by correspondence with the custodian, provide a reasonable basis for
the opinion expressed above. The financial statements of the Fund for the year
ended October 31, 1995, were audited by other independent accountants whose
report dated December 20, 1995, expressed an unqualified opinion on those
statements.
PRICEWATERHOUSECOOPERS LLP
Denver, Colorado
November 19, 1999
29 OPPENHEIMER QUEST VALUE FUND, INC.
<PAGE>
FEDERAL INCOME TAX INFORMATION UNAUDITED
- -------------------------------------------------------------------------------
In early 2000 shareholders will receive information regarding all dividends and
distributions paid to them by the Fund during calendar year 1999. Regulations of
the U.S. Treasury Department require the Fund to report this information to the
Internal Revenue Service.
Distributions of $0.9857, $0.9046, $0.9010 and $1.0782 per share were paid
to Class A, Class B, Class C and Class Y shareholders, respectively, on December
8, 1998, of which $0.8372 was designated as a "capital gain distribution" for
federal income tax purposes. Whether received in stock or in cash, the capital
gain distribution should be treated by shareholders as a gain from the sale of
capital assets held for more than one year (long-term capital gains).
Dividends paid by the Fund during the fiscal year ended October 31, 1999,
which are not designated as capital gain distributions should be multiplied by
27.76% to arrive at the net amount eligible for the corporate dividend-received
deduction.
The foregoing information is presented to assist shareholders in reporting
distributions received from the Fund to the Internal Revenue Service. Because of
the complexity of the federal regulations which may affect your individual tax
return and the many variations in state and local tax regulations, we recommend
that you consult your tax advisor for specific guidance.
30 OPPENHEIMER QUEST VALUE FUND, INC.
<PAGE>
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
Robert G. Galli, Director
Lacy B. Herrmann, Director
George Loft, Director
O. Leonard Darling, Vice President
Andrew J. Donohue, Secretary
Brian W. Wixted, Treasurer
Robert G. Zack, Assistant Secretary
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
- -------------------------------------------------------------------------------
INVESTMENT ADVISOR OppenheimerFunds, Inc.
- -------------------------------------------------------------------------------
SUBADVISOR OpCap Advisors
- -------------------------------------------------------------------------------
DISTRIBUTOR OppenheimerFunds Distributor, Inc.
- -------------------------------------------------------------------------------
TRANSFER AND SHAREHOLDER OppenheimerFunds Services
SERVICING AGENT
- -------------------------------------------------------------------------------
CUSTODIAN OF Citibank, N.A.
PORTFOLIO SECURITIES
- -------------------------------------------------------------------------------
INDEPENDENT ACCOUNTANTS PricewaterhouseCoopers LLP
- -------------------------------------------------------------------------------
LEGAL COUNSEL Mayer, Brown & Platt
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, NOT INSURED BY
THE FDIC OR ANY OTHER AGENCY, AND INVOLVE INVESTMENT RISKS,
INCLUDING THE POSSIBLE LOSS OF THE PRINCIPAL AMOUNT
INVESTED.
31 OPPENHEIMER QUEST VALUE FUND, INC.
<PAGE>
OPPENHEIMERFUNDS FAMILY
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
GLOBAL EQUITY
Developing Markets Fund Global Fund
International Small Company Fund Quest Global Value Fund
Europe Fund Global Growth & Income Fund
International Growth Fund
- ------------------------------------------------------------------------------------------------------------------------
EQUITY
Stock Stock & Bond
Enterprise Fund(1) Main Street-Registered Trademark-Growth & Income Fund
Discovery Fund Quest Opportunity Value Fund
Main Street-Registered Trademark- Total Return Fund
Small Cap Fund Quest Balanced Value Fund
Quest Small Cap Value Fund Capital Income Fund(2)
MidCap Fund Multiple Strategies Fund
Capital Appreciation Fund Disciplined Allocation Fund
Growth Fund Convertible Securities Fund
Disciplined Value Fund
Quest Value Fund
Trinity Growth Fund Specialty
Trinity Core Fund Real Asset Fund
Trinity Value Fund Gold & Special Minerals Fund
- ------------------------------------------------------------------------------------------------------------------------
FIXED INCOME
Taxable Municipal
International Bond Fund California Municipal Fund(3)
World Bond Fund Main Street-Registered Trademark-California Municipal Fund(3)
High Yield Fund Florida Municipal Fund(3)
Champion Income Fund New Jersey Municipal Fund(3)
Strategic Income Fund New York Municipal Fund(3)
Bond Fund Pennsylvania Municipal Fund(3)
Senior Floating Rate Fund Municipal Bond Fund
U.S. Government Trust Insured Municipal Fund
Limited-Term Government Fund Intermediate Municipal Fund
Rochester Division
Rochester Fund Municipals
Limited Term New York Municipal Fund
- ------------------------------------------------------------------------------------------------------------------------
MONEY MARKET(4)
Money Market Fund Cash Reserves
</TABLE>
1. Effective July 1, 1999, this fund is closed to new investors. See prospectus
for details.
2. On 4/1/99, the Fund's name was changed from "Oppenheimer Equity Income Fund."
3. Available to investors only in certain states.
4. An investment in money market funds is neither insured nor guaranteed by the
Federal Deposit Insurance Corporation or any other government agency. Although
these funds may seek to preserve the value of your investment at $1.00 per
share, it is possible to lose money by investing in these funds. Oppenheimer
funds are distributed by OppenheimerFunds Distributor, Inc., Two World Trade
Center, New York, NY 10048-0203.
- -C- Copyright 1999 OppenheimerFunds, Inc. All rights reserved.
32 OPPENHEIMER QUEST VALUE FUND, INC.
<PAGE>
INFORMATION AND SERVICES
As an Oppenheimer fund shareholder, you can benefit from
special services designed to make investing simple. Whether
it's automatic investment plans, timely market updates, or
immediate account access, you can count on us whenever you
need assistance. So call us today, or visit our
website--we're here to help.
- -------------------------------------------------------------------------------
INTERNET
24-hr access to account information and transactions
www.oppenheimerfunds.com
- -------------------------------------------------------------------------------
GENERAL INFORMATION
Mon-Fri 8:30am-9pm ET, Sat 10am-4pm ET
1.800.525.7048
- -------------------------------------------------------------------------------
TELEPHONE TRANSACTIONS
Mon-Fri 8:30am-9pm ET, Sat 10am-4pm ET
1.800.852.8457
- -------------------------------------------------------------------------------
PHONELINK
24-hr automated information and automated transactions
1.800.533.3310
- -------------------------------------------------------------------------------
TELECOMMUNICATIONS DEVICE FOR THE DEAF (TDD)
Mon-Fri 8:30am-7pm ET
1.800.843.4461
- -------------------------------------------------------------------------------
OPPENHEIMERFUNDS INFORMATION HOTLINE
24 hours a day, timely and insightful messages on the
economy and issues that may affect your investments
1.800.835.3104
- -------------------------------------------------------------------------------
TRANSFER AND SHAREHOLDER SERVICING AGENT
OppenheimerFunds Services
P.O. Box 5270, Denver, CO 80217-5270
- -------------------------------------------------------------------------------
[LOGO] OPPENHEIMERFUNDS-Registered Trademark-
Distributor, Inc.
RA0225.001.1099 M# December 30, 1999
