[GRAPHIC]
Semiannual Report April 30, 2000
Oppenheimer
Quest Value Fund, Inc.
OppenheimerFunds(R)
The Right Way to Invest
<PAGE>
REPORT HIGHLIGHTS
CONTENTS
1 President's Letter
3 An Interview
with Your Fund's
Manager
8 Financial
Statements
25 Officers and
Directors
o We continue to employ our bottom-up selection process, focusing on what we
believe are well-managed com panies that create shareholder value by
maximizing and effectively deploying free cash flow.
o After trailing the market for much of the period, positive signs began to
emerge for the Fund beginning in late March.
o Due to high valuations, we've found few new stocks worth considering, but
have identified a number of opportunities in companies we already own.
Cumulative
Total Returns*
For the 6-Month Period
Ended 4/30/00
Class A
Without With
Sales Chg. Sales Chg.
-------------------------
-3.95% -9.47%
Class B
Without With
Sales Chg. Sales Chg.
-------------------------
-4.25% -8.44%
Class C
Without With
Sales Chg. Sales Chg.
-------------------------
-4.26% -5.10%
Class Y
Without With
Sales Chg. Sales Chg.
-------------------------
-3.99% -3.99%
* See Notes on page 7 for further details.
<PAGE>
PRESIDENT'S LETTER
Dear Shareholder,
For many years, we have encouraged investors to consider whether they could
tolerate more risk in their long-term investments by participating in the stock
market, which has historically provided higher long-term returns than any other
asset class. Today, however, we have a very different concern: some investors
may have assumed too much risk by concentrating their investments in just a
handful of stocks or sectors or by "chasing performance."
Several months ago, Alan Greenspan, the Chairman of the Federal Reserve
Board, stated his view that the spectacular returns some sectors of the market
were then experiencing may have been partly responsible for pushing our economy
to growth rates that could lead to higher inflation. Today it is clear that the
dramatic rise in the prices of a narrow segment of the market created enormous
wealth for some investors. The result of this newfound wealth has been a
substantial increase in spending that the Federal Reserve Board believes could
threaten the healthy growth of our economy.
That's why the Fed has been raising interest rates steadily and decisively
over the past year. By making borrowing more expensive, the Fed has been
attempting to slow economic growth. It is a precarious balancing act: too much
tightening creates the risk of recession, while too little opens the door to
inflation.
The implications of the Fed's resolve are clear: investors must continue to
be prepared for near-term market volatility. In the bond market, higher interest
rates usually lead to lower bond prices. In the stock market, slower economic
growth often reduces corporate earnings and puts downward pressure on stock
prices. Highly valued stocks can be particularly vulnerable to a correction. The
Securities and Exchange Commission Chairman, Arthur Levitt, has been cautioning
investors against the expectation that the types of returns seen in the recent
bull market will last forever.
[PHOTO]
Bridget A. Macaskill
President
Oppenheimer
Quest Value Fund, Inc.
1 OPPENHEIMER QUEST VALUE FUND, INC.
<PAGE>
PRESIDENT'S LETTER
Because of the prospect of continued market volatility, we encourage you to
consider diversifying your investments. Indeed, diversification may help you
mitigate the effects of sharp declines in any one area. It may also help you
better position your portfolio to seek greater returns over the long run.
While some "new economy" stocks have risen over the last year, many so-called
"old economy" stocks are selling at low prices. In the bond market, higher
interest rates over the short term may reduce inflation concerns, which should
be beneficial over the long term. By buying out-of-favor investments, you may be
able to profit when and if they return to favor.
What specific investments should you consider today so that you are prepared
for tomorrow? The answer depends on your individual investing goals, risk
tolerance and financial circumstances. We urge you to talk with your financial
advisor about ways to diversify your portfolio. This may include considering
global diversification as part of your strategy. While investing abroad has
special risks, such as the effects of foreign currency fluctuations, it also
offers opportunities to participate in global economic growth and to hedge
against the volatility in U.S. markets.
We thank you for your continued confidence in OppenheimerFunds, The Right Way
to Invest.
Sincerely,
/s/ Bridget A Macaskill
------------------------
Bridget A. Macaskill
May 19, 2000
2 OPPENHEIMER QUEST VALUE FUND, INC.
<PAGE>
AN INTERVIEW WITH YOUR FUND'S MANAGER
How would you characterize the Fund's performance during the six months that
ended April 30, 2000?
A. The past six months presented some sizable challenges for Oppenheimer Quest
Value Fund, Inc. Relative to the performance of the overall stock market, the
Fund's performance was disappointing. However, after trailing the market for
much of the period, positive signs began to emerge for the Fund beginning in
late March. Concerns over stretched valuations in the technology sector,
interest rates and a negative inflation report unleashed a broad sell-off,
mostly in growth stocks. As a result, some investor interest started to shift
toward "old economy" or value stocks.
In your opinion, what does the future hold for value investing?
We believe things are improving for value investors. Large-cap value stocks, our
area of emphasis, have lagged large-cap growth stocks by a significant margin
for the past several years. This is an unusually long period for one investment
style to trail the other, and chances are this will not always be the case.
History tells us that performance disparities between value and growth dissipate
over time and that a well-conceived style of value investing, as part of a
diversified portfolio, can deliver superior long-term performance while
controlling risk. We do not know when value will return to favor. We do believe,
however, that a shift is inevitable.
Consistency and patience are virtues for any investor, especially the value
investor, since the intrinsic value of a company often takes time to surface in
the market. Therefore, we will continue to employ our bottom-up selection
process, focusing on what we believe are well-managed companies that create
shareholder value by maximizing and effectively deploying free cash flow. We're
convinced this value investment philosophy will lead to higher share prices for
our holdings and superior portfolio performance over time.
3 OPPENHEIMER QUEST VALUE FUND, INC.
<PAGE>
AN INTERVIEW WITH YOUR FUND'S MANAGER
What are some examples of stocks that performed well for the Fund?
Monsanto Co., a life sciences company, performed relatively well. Although its
merger with Pharmacia & Upjohn was viewed with some skepticism, we believe the
combined company (now referred to as Pharmacia Corp.) will bring innovative
treatments to market, bolster its research and development effort and create
numerous cost efficiencies.
American Home Products Corp., also a life sciences company, was another
strong performer. The company has an impressive and, in our view, underrated new
product pipeline and one of the lowest exposures to patent expiration. The
pipeline could add as much as $4 billion in sales, on top of the $8 billion
already in place. American Home is also considered an attractive takeover
target, which could further boost its share price.
Another one of our holdings, a leading U.S. airline, contributed solid
gains. Investors reacted positively to the company's plans to spin off its 83%
interest in the world's largest travel reservation system. In addition, the
company is reducing costs and using competitive measures rather than expansion
to gain market share. The potential benefits to cash flow will probably be used
to retire debt and repurchase stock.
While recent Federal Reserve interest rate hikes unfairly punished many
financial stocks, Citigroup, Inc. avoided much of the downturn. Citgroup's
position as a premier global provider of financial services, coupled with its
attractive valuation, fuels our optimism going forward.
Which opportunities proved disappointing?
In a market that clearly favored growth investing, we saw more disappointments
than we would like. However, we remain encouraged by the prospects for a number
of our under performers. Alcoa, Inc., the world's leading producer of aluminum,
is a good example. It is the lowest-cost, most efficient, and most profitable
aluminum producer. Therefore, it is less vulnerable to price slumps than its
competitors. Management has refocused on long-term profitability, creating
shareholder value through cost reductions, a sizable share repurchase program
and strategic acquisitions.
"History tells us that,
in time, a well-
conceived style of
value investing, as
part of a diversified
portfolio, can deliver
excellent long-term
performance while
controlling risk."
4 OPPENHEIMER QUEST VALUE FUND, INC.
<PAGE>
Emerson Electric Co., while down slightly for the period, overcame temporary
problems ranging from a mild earnings shortfall to management succession issues.
Long term, we believe this electronic component manufacturer will continue to
grow revenues and raise margins through a combination of internal growth and
acquisitions.
What is your outlook for the Fund over the coming months?
Volatility is here to stay for the foreseeable future. As a result, we will
continue to emphasize solid, growing companies that use their cash flow to build
shareholder value. The recent uncertainty in the market may be a blessing in
disguise for the Fund. If stock prices continue to fall, a number of
high-quality value stocks may become candidates for acquisition, or they may
revert to private ownership in a leveraged buyout. Either way, the Fund could
benefit. Prudence, however, continues to be an appropriate course of action. For
that reason, we will continue to pursue opportunities offering compelling yet
unrecognized intrinsic value, which is why Oppenheimer Quest Value Fund, Inc. is
an important part of The Right Way to Invest.
AVERAGE ANNUAL
TOTAL RETURNS
For the Periods Ended 3/31/00 1
Class A
1-Year 5-Year 10-Year
---------------------------------
-7.14% 14.65% 13.67%
Class B Since
1-Year 5-Year Inception
---------------------------------
-6.38% 15.17 13.20%
Class C Since
1-Year 5-Year Inception
---------------------------------
-2.96% 15.40 13.13%
Class Y Since
1-Year 5-Year Inception
---------------------------------
-1.28% N/A 10.87%
Because of ongoing market
volatility, the Fund's
returns may fluctuate and
may be less than the results
shown.
1. See notes on page 7 for further details.
5 OPPENHEIMER QUEST VALUE FUND, INC.
<PAGE>
AN INTERVIEW WITH YOUR FUND'S MANAGER
SECTOR ALLOCATION 2
[CHART]
* Financial 28.4%
* Capital Goods 15.4
* Consumer
Staples 11.6
* Communication
Services 9.4
* Technology 9.3
* Healthcare 8.0
* Basic Materials 6.0
* Transportation 5.2
* Energy 4.2
* Consumer
Cyclicals 2.5
TOP TEN COMMON STOCK HOLDINGS 2
-------------------------------------------------------------
Freddie Mac 4.6%
-------------------------------------------------------------
Emerson Electric Co. 4.5
-------------------------------------------------------------
Kroger Co. 4.4
-------------------------------------------------------------
FleetBoston Financial Corp. 4.0
-------------------------------------------------------------
Household International, Inc. 3.6
-------------------------------------------------------------
Wells Fargo Co. 3.6
-------------------------------------------------------------
Citigroup, Inc. 3.5
-------------------------------------------------------------
Bell Atlantic Corp. 3.5
-------------------------------------------------------------
McDonald's Corp. 3.5
-------------------------------------------------------------
American Home Products Corp. 3.4
Top Five Common Stock Industries 2
-------------------------------------------------------------
Diversified Financial 14.7%
-------------------------------------------------------------
Banks 10.1
-------------------------------------------------------------
Healthcare/Drugs 6.8
-------------------------------------------------------------
Food & Drug Retailers 6.4
-------------------------------------------------------------
Manufacturing 6.3
-------------------------------------------------------------
2. Portfolio is subject to change. Percentages are as of April 30, 2000, and are
based on total market value of common stock.
6 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. For quarterly
updates on the Fund's performance, please contact your financial advisor, call
us at 1.800.525.7048 or visit our website at 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.
Total returns include changes in share price and reinvestment of dividends and
capital gains distributions in a hypothetical investment for the periods shown.
Cumulative total returns are not annualized. The Fund's total returns shown do
not show the effects of income taxes on an individual's investment. Taxes may
reduce your actual investment returns on income or gains paid by the Fund or any
gains you may realize if you sell your shares.
CLASS A shares were first publicly offered on 4/30/80. Unless otherwise noted,
Class A returns include the current maximum initial sales charge of 5.75%. 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
0.20% asset-based sales charge. There is a voluntary waiver of a portion of the
Class A asset-based sales charge as described in the Prospectus.
CLASS B shares were first publicly offered on 9/1/93. Unless otherwise noted,
Class B returns include the applicable contingent deferred sales charges of 5%
(1-year) and 2% (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 were first publicly offered on 9/1/93. Unless otherwise noted,
Class C returns include the contingent deferred sales charge of 1% for the
one-year period. Class C shares are subject to an annual 0.75% asset-based sales
charge.
CLASS Y shares 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 calculation of performance is in the Fund's Statement of
Additional Information.
7 OPPENHEIMER QUEST VALUE FUND, INC.
<PAGE>
STATEMENT OF INVESTMENTS April 30, 2000 / Unaudited
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
================================================================================
<S> <C> <C>
Common Stocks--95.9%
--------------------------------------------------------------------------------
BASIC MATERIALS--5.7%
--------------------------------------------------------------------------------
Chemicals--2.8%
Du Pont (E.I.) De Nemours & Co. 670,000 $31,783,125
--------------------------------------------------------------------------------
Metals--2.9%
Alcoa, Inc. 520,000 33,735,000
--------------------------------------------------------------------------------
Capital Goods--14.8%
--------------------------------------------------------------------------------
Aerospace/Defense--1.7%
Boeing Co. 500,000 19,843,750
--------------------------------------------------------------------------------
Electrical Equipment--5.9%
Emerson Electric Co. 900,000 49,387,500
--------------------------------------------------------------------------------
Rockwell International Corp. 450,000 17,718,750
--------------
67,106,250
--------------------------------------------------------------------------------
Industrial Services--1.1%
Waste Management, Inc. 800,000 12,700,000
--------------------------------------------------------------------------------
Manufacturing--6.1%
Caterpillar, Inc. 450,000 17,746,875
--------------------------------------------------------------------------------
Minnesota Mining & Manufacturing Co. 350,000 30,275,000
--------------------------------------------------------------------------------
Textron, Inc. 350,000 21,678,125
--------------
69,700,000
--------------------------------------------------------------------------------
COMMUNICATION SERVICES--9.0%
--------------------------------------------------------------------------------
Telecommunications-Long Distance--5.6%
AT&T Corp. 270,000 12,605,625
--------------------------------------------------------------------------------
MCI WorldCom, Inc. 1 600,000 27,262,500
--------------------------------------------------------------------------------
Sprint Corp. (Fon Group) 400,000 24,600,000
--------------
64,468,125
--------------------------------------------------------------------------------
Telephone Utilities--3.4%
Bell Atlantic Corp. 650,000 38,512,500
--------------------------------------------------------------------------------
CONSUMER CYCLICALS--2.4%
--------------------------------------------------------------------------------
Leisure & Entertainment--1.2%
Carnival Corp. 550,000 13,681,250
--------------------------------------------------------------------------------
Retail: General--1.2%
May Department Stores Co. 500,000 13,750,000
--------------------------------------------------------------------------------
Consumer Staples--11.0%
--------------------------------------------------------------------------------
Entertainment--3.3%
McDonald's Corp. 1,000,000 38,125,000
--------------------------------------------------------------------------------
Food--1.6%
Diageo plc, Sponsored ADR 550,000 18,700,000
--------------------------------------------------------------------------------
Food & Drug Retailers--6.1%
CVS Corp. 500,000 21,750,000
--------------------------------------------------------------------------------
Kroger Co. 1 2,600,000 48,262,500
--------------
70,012,500
</TABLE>
8 OPPENHEIMER QUEST VALUE FUND, INC.
<PAGE>
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
================================================================================
<S> <C> <C>
ENERGY--4.0%
--------------------------------------------------------------------------------
Energy Services--1.1%
Anadarko Petroleum Corp. 300,000 $ 13,031,250
--------------------------------------------------------------------------------
Oil: Domestic--2.9%
--------------------------------------------------------------------------------
Chevron Corp. 150,000 12,768,750
--------------------------------------------------------------------------------
Unocal Corp. 620,000 20,033,750
------------------
32,802,500
--------------------------------------------------------------------------------
FINANCIAL--27.4%
--------------------------------------------------------------------------------
Banks--9.7%
Chase Manhattan Corp. 380,000 27,383,750
--------------------------------------------------------------------------------
FleetBoston Financial Corp. 1,250,000 44,296,875
--------------------------------------------------------------------------------
Wells Fargo Co. 950,000 39,009,375
------------------
110,690,000
--------------------------------------------------------------------------------
Diversified Financial--14.1%
Citigroup, Inc. 650,000 38,634,374
--------------------------------------------------------------------------------
Countrywide Credit Industries, Inc. 500,000 13,812,500
--------------------------------------------------------------------------------
Freddie Mac 1,100,000 50,531,250
--------------------------------------------------------------------------------
Household International, Inc. 950,000 39,662,500
--------------------------------------------------------------------------------
John Hancock Financial Services, Inc. 1 1,000,000 18,250,000
------------------
160,890,624
--------------------------------------------------------------------------------
Insurance--3.6%
AFLAC, Inc. 350,000 17,084,375
--------------------------------------------------------------------------------
XL Capital Ltd., Cl. A 500,000 23,812,500
------------------
40,896,875
--------------------------------------------------------------------------------
HEALTHCARE--7.7%
--------------------------------------------------------------------------------
Healthcare/Drugs--6.6%
American Home Products Corp. 670,000 37,645,625
--------------------------------------------------------------------------------
Pharmacia Corp. 750,000 37,453,125
------------------
75,098,750
--------------------------------------------------------------------------------
Healthcare/Supplies & Services--1.1%
Paracelsus Healthcare Corp. 1 18,946 3,256
--------------------------------------------------------------------------------
Tenet Healthcare Corp. 500,000 12,750,000
------------------
12,753,256
--------------------------------------------------------------------------------
TECHNOLOGY--8.9%
--------------------------------------------------------------------------------
Computer Hardware--2.1%
International Business Machines Corp. 220,000 24,557,500
--------------------------------------------------------------------------------
Computer Services--0.5%
Unisys Corp.1 225,000 5,217,187
--------------------------------------------------------------------------------
Computer Software--5.7%
Computer Associates International, Inc. 640,000 35,720,000
</TABLE>
9 OPPENHEIMER QUEST VALUE FUND, INC.
<PAGE>
STATEMENT OF INVESTMENTS Unaudited / Continued
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
================================================================================
<S> <C> <C>
Computer Software Continued
Compuware Corp. 1 898,000 $ 11,281,125
--------------------------------------------------------------------------------
Sabre Holdings Corp. 525,000 18,342,188
--------------
65,343,313
--------------------------------------------------------------------------------
Electronics--0.6%
Solectron Corp. 1 150,000 7,021,875
--------------------------------------------------------------------------------
TRANSPORTATION--5.0%
--------------------------------------------------------------------------------
Air Transportation--1.8%
AMR Corp. 1 600,000 20,437,500
--------------------------------------------------------------------------------
Railroads & Truckers--3.2%
Burlington Northern Santa Fe Corp. 750,000 18,093,750
--------------------------------------------------------------------------------
Canadian Pacific Ltd. 800,000 19,050,000
--------------
37,143,750
==============
Total Common Stocks (Cost $1,038,971,006) 1,098,001,880
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount
========================================================================================
<S> <C> <C>
SHORT-TERM NOTES--4.9%
----------------------------------------------------------------------------------------
American Express Credit Corp., 6.03%, 5/25/00 $10,200,000 10,158,996
----------------------------------------------------------------------------------------
Federal Home Loan Bank:
5.84%, 5/11/00 12,366,000 12,345,940
5.88%, 5/1/00 10,000,000 10,000,000
----------------------------------------------------------------------------------------
Federal National Mortgage Assn., 5.95%, 6/6/00 10,523,000 10,460,388
----------------------------------------------------------------------------------------
Ford Motor Credit Co., 5.98%, 5/11/00 4,821,000 4,812,965
----------------------------------------------------------------------------------------
General Motors Acceptance Corp., 6.04%, 5/16/00 7,991,000 7,971,023
----------------
TOTAL SHORT-TERM NOTES (COST $55,749,312) 55,749,312
----------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $1,094,720,318) 100.8% 1,153,751,192
----------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS (0.8) (8,635,899)
-------------------------------
NET ASSETS 100.0% $1,145,115,293
===============================
</TABLE>
Footnotes to Statement of Investments
1. Non-income-producing security
See accompanying Notes to Financial Statements.
10 OPPENHEIMER QUEST VALUE FUND, INC.
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES Unaudited
<TABLE>
<CAPTION>
APRIL 30, 2000
========================================================================================
ASSETS
<S> <C>
Investments, at value (cost $1,094,720,318)
--see accompanying statement $1,153,751,192
----------------------------------------------------------------------------------------
Receivables and other assets:
Shares of capital stock sold 1,529,112
Interest and dividends 860,146
Other 81,834
------------------
Total assets 1,156,222,284
========================================================================================
LIABILITIES
----------------------------------------------------------------------------------------
Bank overdraft 1,288,966
----------------------------------------------------------------------------------------
Payables and other liabilities:
Shares of capital stock redeemed 5,862,160
Investments purchased 3,099,579
Distribution and service plan fees 236,845
Transfer and shareholder servicing agent fees 185,498
Directors' compensation 128,558
Other 305,385
------------------
Total liabilities 11,106,991
========================================================================================
NET ASSETS $1,145,115,293
==================
========================================================================================
COMPOSITION OF NET ASSETS
----------------------------------------------------------------------------------------
Par value of shares of capital stock $ 63,034,009
----------------------------------------------------------------------------------------
Additional paid-in capital 948,917,862
----------------------------------------------------------------------------------------
Overdistributed net investment income (1,320,570)
----------------------------------------------------------------------------------------
Accumulated net realized gain on investment transactions 75,453,118
----------------------------------------------------------------------------------------
Net unrealized appreciation on investments 59,030,874
------------------
NET ASSETS $1,145,115,293
==================
========================================================================================
NET ASSET VALUE PER SHARE
Class A Shares:
Net asset value and redempton price per share (based on net assets of
$666,334,187 and 36,278,391 shares of capital stock outstanding) $18.37
Maximum offering price per share (net asset value plus sales charge
of 5.75% of offering price) $19.49
----------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of
$375,879,619 and 21,022,150 shares of capital stock outstanding) $17.88
----------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of
$90,389,676 and 5,053,966 shares of capital stock outstanding) $17.88
----------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based on
net assets of $12,511,811 and 679,502 shares of capital stock outstanding) $18.41
</TABLE>
See accompanying Notes to Financial Statements.
11 OPPENHEIMER QUEST VALUE FUND, INC.
<PAGE>
STATEMENT OF OPERATIONS Unaudited
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED APRIL 30, 2000
================================================================================
INVESTMENT INCOME
<S> <C>
Dividends (net of foreign withholding taxes of $120,872) $ 9,833,996
--------------------------------------------------------------------------------
Interest 941,777
---------------
Total income 10,775,773
================================================================================
EXPENSES
Management fees 5,982,074
--------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 1,780,844
Class B 2,171,934
Class C 536,215
--------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 420,992
Class B 469,893
Class C 94,866
Class Y 41,501
--------------------------------------------------------------------------------
Shareholder reports 347,451
--------------------------------------------------------------------------------
Custodian fees and expenses 31,697
--------------------------------------------------------------------------------
Directors' compensation 10,241
--------------------------------------------------------------------------------
Other 280,694
---------------
Total expenses 12,168,402
Less expenses paid indirectly (6,494)
Less voluntary assumption (203,385)
---------------
Net expenses 11,958,523
================================================================================
NET INVESTMENT LOSS (1,182,750)
================================================================================
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain on investments 77,055,359
--------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on
investments (148,403,331)
---------------
Net realized and unrealized loss (71,347,972)
================================================================================
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $(72,530,722)
===============
</TABLE>
See accompanying Notes to Financial Statements.
12 OPPENHEIMER QUEST VALUE FUND, INC.
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
April 30, 2000 October 31,
(Unaudited) 1999
======================================================================================================
<S> <C> <C>
OPERATIONS
Net investment loss $ (1,182,750) $(2,766,497)
------------------------------------------------------------------------------------------------------
Net realized gain 77,055,359 183,043,399
------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation (148,403,331) (87,953,317)
---------------------------------
Net increase (decrease) in net assets resulting from operations (72,530,722) 92,323,585
======================================================================================================
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income:
Class A -- (6,746,450)
Class B -- (1,678,587)
Class C -- (433,959)
Class Y -- (116,654)
------------------------------------------------------------------------------------------------------
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 (103,683,775) (38,188,719)
Class B (61,126,160) (20,944,577)
Class C (15,442,073) (5,714,099)
Class Y (1,711,661) (406,888)
======================================================================================================
CAPITAL STOCK TRANSACTIONS
Net increase (decrease) in net assets resulting from capital stock
transactions:
Class A (96,292,829) (82,471,668)
Class B (58,078,212) 3,096,866
Class C (20,393,613) (8,962,373)
Class Y 283,830 4,332,150
======================================================================================================
NET ASSETS
Total decrease (428,975,215) (65,946,392)
------------------------------------------------------------------------------------------------------
Beginning of period 1,574,090,508 1,640,036,900
---------------------------------
End of period (including overdistributed net investment
income of $1,320,570 and $137,820, respectively) $1,145,115,293 $1,574,090,508
=================================
</TABLE>
See accompanying Notes to Financial Statements.
13 OPPENHEIMER QUEST VALUE FUND, INC.
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Six Months Year
Ended Ended
April 30, 2000 October 31,
CLASS A (Unaudited) 1999 1998 1997 1996 1 1995
===================================================================================================================================
PER SHARE OPERATING DATA
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $21.77 $21.46 $20.49 $17.30 $14.51 $12.59
-----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .02 .02 .15 .11 .08 .12 2
Net realized and unrealized gain (loss) (.84) 1.28 1.80 4.07 3.79 2.71
---------------------------------------------------------------------------------
Total income (loss) from investment
operations (.82) 1.30 1.95 4.18 3.87 2.83
-----------------------------------------------------------------------------------------------------------------------------------
Dividends and/or 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 (2.58) (.84) (.87) (.92) (.98) (.83)
---------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (2.58) (.99) (.98) (.99) (1.08) (.91)
-----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $18.37 $21.77 $21.46 $20.49 $17.30 $14.51
=================================================================================
===================================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE 4 (3.95)% 6.15% 9.87% 25.41% 28.39% 24.74%
===================================================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in thousands) $666,334 $906,698 $976,655 $699,230 $412,246 $282,615
-----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $761,293 $977,12 $853,061 $560,582 $338,429 $257,240
-----------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS: 5
Net investment income 0.07% 0.07% 0.83% 0.74% 0.58% 0.90%
Expenses 1.60% 1.60% 1.59% 6 1.60% 6 1.71% 6 1.68% 6
Expenses, net of voluntary assumption 1.57% N/A N/A N/A N/A N/A
-----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 7 37% 62% 21% 20% 36% 36%
<FN>
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 has not been grossed up to reflect the effect of expenses paid
indirectly.
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, 2000, were $481,755,869 and $872,184,381, respectively.
</FN>
</TABLE>
See accompanying Notes to Financial Statements.
14 OPPENHEIMER QUEST VALUE FUND, INC.
<PAGE>
<TABLE>
<CAPTION>
Six Months Year
Ended Ended
April 30, 2000 October 31,
CLASS B (Unaudited) 1999 1998 1997 1996 1 1995
===================================================================================================================================
PER SHARE OPERATING DATA
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $21.32 $21.08 $20.17 $17.08 $14.37 $12.53
-----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.07) (.11) .07 .05 .05 .05 2
Net realized and unrealized gain (loss) (.79) 1.26 1.76 3.97 3.71 2.69
---------------------------------------------------------------------------------
Total income (loss) from investment
operations (.86) 1.15 1.83 4.02 3.76 2.74
-----------------------------------------------------------------------------------------------------------------------------------
Dividends and/or 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 (2.58) (.84) (.87) (.92) (.98) (.83)
---------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (2.58) (.91) (.92) (.93) (1.05) (.90)
-----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $17.88 $21.32 $21.08 $20.17 $17.08 $14.37
=================================================================================
===================================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE 4 (4.25)% 5.51% 9.38% 24.71% 27.76% 24.08%
===================================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $375,880 $520,146 $512,885 $298,348 $111,130 $38,557
-----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $435,523 $541,440 $417,011 $200,752 $ 68,175 $25,393
-----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 5
Net investment income (loss) (0.55)% (0.51)% 0.33% 0.25% 0.06% 0.36%
Expenses 2.23% 2.17% 2.09% 6 2.10% 6 2.26% 6 2.21% 6
Expenses, net of voluntary assumption 2.20% N/A N/A N/A N/A N/A
-----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 7 37% 62% 21% 20% 36% 36%
<FN>
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 has not been grossed up to reflect the effect of expenses paid
indirectly.
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, 2000, were $481,755,869 and $872,184,381, respectively.
</FN>
</TABLE>
See accompanying Notes to Financial Statements.
15 OPPENHEIMER QUEST VALUE FUND, INC.
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Six Months Year
Ended Ended
April 30, 2000 October 31,
CLASS C (Unaudited) 1999 1998 1997 1996 1 1995
===================================================================================================================================
PER SHARE OPERATING DATA
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $21.32 $21.07 $20.17 $17.07 $14.35 $12.52
-----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.08) (.11) .07 .05 .04 .04 2
Net realized and unrealized gain (loss) (.78) 1.26 1.75 3.98 3.71 2.70
---------------------------------------------------------------------------------
Total income (loss) from investment
operations (.86) 1.15 1.82 4.03 3.75 2.74
-----------------------------------------------------------------------------------------------------------------------------------
Dividends and/or 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 (2.58) (.84) (.87) (.92) (.98) (.83)
---------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (2.58) (.90) (.92) (.93) (1.03) (.91)
-----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $17.88 $21.32 $21.07 $20.17 $17.07 $14.35
=================================================================================
===================================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE 4 (4.26)% 5.55% 9.32% 24.79% 27.73% 24.10%
===================================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $ 90,390 $132,668 $140,461 $82,098 $29,256 $10,140
-----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $107,485 $143,378 $116,160 $55,969 $18,099 $ 6,711
-----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 5
Net investment income (loss) (0.52)% (0.48)% 0.33% 0.25% 0.06% 0.31%
Expenses 2.20% 2.15% 2.10% 6 2.10% 6 2.20% 6 2.26% 6
Expenses, net of voluntary assumption 2.17% N/A N/A N/A N/A N/A
-----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 7 37% 62% 21% 20% 36% 36%
<FN>
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 has not been grossed up to reflect the effect of expenses paid
indirectly.
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, 2000, were $481,755,869 and $872,184,381, respectively.
</FN>
</TABLE>
See accompanying Notes to Financial Statements.
16 OPPENHEIMER QUEST VALUE FUND, INC.
<PAGE>
<TABLE>
<CAPTION>
Six Months Year
Ended Ended
April 30, 2000 October 31,
CLASS Y (Unaudited) 1999 1998 1997 1
==================================================================================================
PER SHARE OPERATING DATA
<S> <C> <C> <C> <C>
Net asset value, beginning of period $21.82 $21.54 $20.55 $16.50
--------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) -- .08 .21 .10
Net realized and unrealized gain (loss) (.83) 1.28 1.83 3.95
-----------------------------------------------
Total income (loss) from investment
operations (.83) 1.36 2.04 4.05
--------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- (.24) (.18) --
Dividends in excess of net investment income -- -- 2 -- --
Distributions from net realized gain (2.58) (.84) (.87) --
-----------------------------------------------
Total dividends and/or distributions
to shareholders (2.58) (1.08) (1.05) --
--------------------------------------------------------------------------------------------------
Net asset value, end of period $18.41 $21.82 $21.54 $20.55
===============================================
==================================================================================================
TOTAL RETURN, AT NET ASSET VALUE 3 (3.99)% 6.45% 10.36% 24.55%
==================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $12,512 $14,579 $10,036 $3,086
--------------------------------------------------------------------------------------------------
Average net assets (in thousands) $13,041 $12,065 $ 5,673 $1,372
--------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income 0.05% 0.32% 1.30% 1.20%
Expenses 1.62% 1.33% 1.14% 5 1.19% 5
Expenses, net of voluntary assumption 1.59% N/A N/A N/A
--------------------------------------------------------------------------------------------------
Portfolio turnover rate 6 37% 62% 21% 20%
<FN>
1. For the period from December 16, 1996 (inception of offering) to October 31,
1997.
2. Less than $0.005 per share.
3. 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.
4. Annualized for periods of less than one full year.
5. Expense ratio has not been grossed up to reflect the effect of expenses paid
indirectly.
6. 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, 2000, were $481,755,869 and $872,184,381, respectively.
</FN>
</TABLE>
See accompanying Notes to Financial Statements.
17 OPPENHEIMER QUEST VALUE FUND, INC.
<PAGE>
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 an 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 sub-advisory agreement with OpCap Advisors.
The Fund offers Class A, Class B, Class C and Class Y shares. Class A shares
are sold at their offering price, which is normally net asset value plus an
initial sales charge. Class B and Class C shares are sold without an initial
sales charge but 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 shares 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. Securities for which quotations are readily available are
valued at the last sale price, or if in the absence of a sale, at the last sale
price on the prior trading day if it is within the spread of the closing bid and
asked prices, and if not, at the closing bid price. Securities (including
restricted securities) for which quotations are not readily available are valued
primarily using dealer-supplied valuations, a portfolio pricing service
authorized by the Board of Directors, or at their fair value. Fair value is
determined in good faith under consistently applied procedures under the
supervision of the Board of Directors. Foreign currency contracts are valued
based on the closing prices of the forward currency contract rates in the London
foreign exchange markets on a daily basis as provided by a reliable bank, dealer
or pricing service. Short-term "money market type" debt securities with
remaining maturities of sixty days or less are valued at cost (or last
determined market value) and adjusted for amortization or accretion to maturity
of any premium or discount.
--------------------------------------------------------------------------------
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.
--------------------------------------------------------------------------------
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.
18 OPPENHEIMER QUEST VALUE FUND, INC.
<PAGE>
--------------------------------------------------------------------------------
Directors' Compensation. The Fund has adopted an unfunded retirement plan for
the Fund's independent Board of Directors. Benefits are based on years of
service and fees paid to each director during the years of service. During the
six months ended April 30, 2000, a credit of $9,015 was made for the Fund's
projected benefit obligations and payments of $5,700 were made to retired
directors, resulting in an accumulated liability of $123,103 as of April 30,
2000.
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 Board of Directors in shares of one
or more Oppenheimer funds selected by the director. The amount paid to the Board
of Directors 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 investment 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.
--------------------------------------------------------------------------------
Expense Offset Arrangements. Expenses paid indirectly represent a reduction of
custodian fees for earnings on cash balances maintained by the Fund.
--------------------------------------------------------------------------------
Other. Investment transactions are accounted for as of trade date and dividend
income is recorded on the ex-dividend date. Certain dividends from foreign
securities will be recorded as soon as the Fund is informed of the dividend if
such information is obtained subsequent to the ex-dividend 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.
19 OPPENHEIMER QUEST VALUE FUND, INC.
<PAGE>
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
--------------------------------------------------------------------------------
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, 2000 Year Ended October 31, 1999
Shares Amount Shares Amount
--------------------------------------------------------------------------------------------------------
CLASS A
<S> <C> <C> <C> <C>
Sold 4,903,144 $ 91,133,273 11,694,065 $ 252,611,389
Dividends and/or distributions
reinvested 5,320,589 99,335,195 2,024,604 43,002,612
Redeemed (15,600,861) (286,761,297) (17,571,687) (378,085,669)
-----------------------------------------------------------------
Net decrease (5,377,128) $ (96,292,829) (3,853,018) $ (82,471,668)
=================================================================
--------------------------------------------------------------------------------------------------------
CLASS B
Sold 1,862,332 $ 33,947,886 6,613,830 $ 141,247,575
Dividends and/or distributions
reinvested 3,169,538 57,747,586 1,023,776 21,407,158
Redeemed (8,407,262) (149,773,684) (7,575,616) (159,557,867)
-----------------------------------------------------------------
Net increase (decrease) (3,375,392) $ (58,078,212) 61,990 $ 3,096,866
=================================================================
--------------------------------------------------------------------------------------------------------
Class C
Sold 707,051 $ 12,882,891 2,048,494 $ 43,807,706
Dividends and/or distributions
reinvested 811,048 14,785,649 282,097 5,898,654
Redeemed (2,686,181) (48,062,153) (2,774,837) (58,668,733)
-----------------------------------------------------------------
Net decrease (1,168,082) $ (20,393,613) (444,246) $ (8,962,373)
=================================================================
--------------------------------------------------------------------------------------------------------
Class Y
Sold 382,631 $ 7,059,333 444,747 $ 9,620,394
Dividends and/or distributions
reinvested 91,386 1,711,661 24,681 523,996
Redeemed (462,762) (8,487,164) (267,144) (5,812,240)
-----------------------------------------------------------------
Net increase 11,255 $ 283,830 202,284 $ 4,332,150
=================================================================
</TABLE>
--------------------------------------------------------------------------------
3. UNREALIZED GAINS AND LOSSES ON SECURITIES
As of April 30, 2000, net unrealized appreciation on securities of $59,030,874
was composed of gross appreciation of $127,649,796, and gross depreciation of
$68,618,922.
--------------------------------------------------------------------------------
4. 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 $800 million, 0.80% of the next $4
billion and 0.75% of average annual net assets in excess of $8 billion.
Effective January 1, 2000, the Manager and the Sub-Advisor had voluntarily
agreed to waive advisory fees at an annual rate equal to 0.05% of the Fund's
average net assets for the quarter ending March 31, 2000. After March 31, 2000,
such waiver will be at the annual rate of 0.05% or 0.10% based on criteria set
forth in the prospectus. The foregoing waiver is voluntary and may be
terminated by the Manager or the Sub-Advisor at any time. The Fund's management
fee for the six months ended April 30, 2000 was 0.91% of the average annual net
assets for each class of shares, annualized for periods of less than one full
year.
20 OPPENHEIMER QUEST VALUE FUND, INC.
<PAGE>
--------------------------------------------------------------------------------
Sub-Advisor Fees. The Manager pays OpCap Advisors (the Sub-Advisor) based on
the fee schedule set forth in the Prospectus. For the six months ended April
30, 2000, the Manager paid $1,896,119 to the Sub-Advisor.
--------------------------------------------------------------------------------
Transfer Agent Fees. OppenheimerFunds 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 six months ended April 30, 2000, the Fund paid OFS
$1,074,182.
--------------------------------------------------------------------------------
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
Six Months Ended Shares Distributor Distributor 1 Distributor 1 Distributor 1
=================================================================================================================
<S> <C> <C> <C> <C> <C>
April 30, 2000 $629,632 $158,851 $160,644 $816,337 $88,000
<FN>
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.
</FN>
</TABLE>
<TABLE>
<CAPTION>
Class A Class B Class C
Contingent Deferred Contingent Deferred Contingent Deferred
Sales Charges Sales Charges Sales Charges
Six Months Ended Retained by Distributor Retained by Distributor Retained by Distributor
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
April 30, 2000 $30,558 $1,206,228 $25,457
</TABLE>
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 0.20% of
average annual net assets of Class A shares of the Fund (the Board of Directors
can set this rate up to 0.25%). Effective January 1, 2000, the asset-based
charge rate for Class A shares has been voluntarily reduced from 0.25% to 0.20%
of average annual net assets representing Class
21 OPPENHEIMER QUEST VALUE FUND, INC.
<PAGE>
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
--------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES CONTINUED
A shares. 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 six months ended April 30, 2000, payments
under the Class A Plan totaled $1,780,844, all of which was paid by the
Distributor to recipients. That included $62,025 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 asset-based sales charges from the
Fund under the plans. If any 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 six months ended April 30,
2000, 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 $2,171,934 $1,753,289 $10,027,555 2.67%
Class C Plan 536,215 125,095 1,533,499 1.70
</TABLE>
22 OPPENHEIMER QUEST VALUE FUND, INC.
<PAGE>
--------------------------------------------------------------------------------
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 six months ended April 30,
2000.
23 OPPENHEIMER QUEST VALUE FUND, INC.
<PAGE>
SHAREHOLDER MEETING Unaudited
-------------------------------------------------------------------------------
On March 17, 2000, a shareholder meeting was held to approve a new subadvisory
agreement between the Manager and the Sub-advisor as described in the Fund's
proxy statement for that meeting. The following is a report of the votes cast:
<TABLE>
<CAPTION>
For Against Withheld/Abstain Total
-------------------------------------------------------------------------------
<S> <C> <C> <C>
40,140,275 499,658 965,933 41,605,866
</TABLE>
24 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 J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Robert G. Zack, Assistant Secretary
-------------------------------------------------------------------------------
Investment Advisor OppenheimerFunds, Inc.
-------------------------------------------------------------------------------
Sub-Advisor OpCap Advisors
-------------------------------------------------------------------------------
Distributor OppenheimerFunds Distributor, Inc.
-------------------------------------------------------------------------------
Transfer and Shareholder OppenheimerFunds Services
Servicing Agent
-------------------------------------------------------------------------------
Custodian of Citibank, N.A.
Portfolio Securities
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Independent Auditors KPMG LLP
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Legal Counsel Mayer, Brown & Platt
The financial statements included herein
have been taken from the records of the Fund
without examination of those records by the
independent auditors.
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, ar not insured by
the FDIC or any other agency, and involve
investment risks, including the possible
loss of the principal amount invested.
Oppenheimer funds are distributed by
Oppenheimer Funds Distributor, Inc., Two
World Trade Center, New York, 10048-0203.
(C) Copyright 2000 Oppenheimer Funds, Inc.
All rights reserved.
25 OPPENHEIMER QUEST VALUE FUND, INC.
<PAGE>
<TABLE>
<CAPTION>
OPPENHEIMERFUNDS FAMILY
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Global Equity
<S> <C> <C>
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(R) Growth & Income Fund
Discovery Fund Quest Opportunity Value Fund
Main Street(R) Small Cap Fund Total Return Fund
Quest Small Cap Value Fund Quest Balanced Value Fund
MidCap Fund Capital Income Fund 2
Capital Appreciation Fund Multiple Strategies Fund
Growth Fund Disciplined Allocation Fund
Disciplined Value Fund Convertible Securities 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(R) 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
<FN>
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.
</FN>
</TABLE>
26 OPPENHEIMER QUEST VALUE FUND, INC.
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<PAGE>
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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 transactions1
www.oppenheimerfunds.com
--------------------------------------------------------------------------------
General Information
Mon-Fri 8am-9pm ET, Sat 10am-4pm ET
1.800.525.7048
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Telephone Transactions
Mon-Fri 8am-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 9am-6:30pm ET
1.800.843.4461
--------------------------------------------------------------------------------
OppenheimerFunds Market 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 80217-5270Telecommunications Device for the Deaf (TDD)
Mon-Fri 9am-6:30pm ET
1.800.843.4461
--------------------------------------------------------------------------------
OppenheimerFunds Market 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
--------------------------------------------------------------------------------
Ticker Symbols Class A: QFVFX Class B: QFVBX Class C: QFVCX Class Y: QFVYX
1. At times this website may be inaccessible or its transaction feature may be
unavailable.
OppenheimerFunds(R)
Distributor, Inc.
RS0225.001.0400 June 29, 2000
