<PAGE> 1
OPPENHEIMER QUEST OPPORTUNITY VALUE FUND
Semiannual Report April 30, 1996
"We have a lot of
important
goals, so we
need our money
to grow
over time."
[OPPENHEIMERFUNDS LOGO]
<PAGE> 2
NEWS
BEAT THE AVERAGE
Cumulative Total Return for the
Five-Year Period Ended 4/30/96:
Oppenheimer Quest
Opportunity Value Fund
Class A (at NAV)(1)
150.02%
Lipper Flexible Portfolio Average(3)
112.7%
THE FUND'S CLASS A SHARES
ARE RANKED *****
AMONG 240 HYBRID FUNDS AS
OF 4/30/96 BY MORNINGSTAR
MUTUAL FUNDS.(4)
This Fund is for people who want the opportunity
to pursue growth over time for their long-term needs.
- --------------------------------------------------------------------------------
HOW YOUR FUND IS MANAGED
- --------------------------------------------------------------------------------
Oppenheimer Quest Opportunity Value Fund invests in stocks offering long-term
growth potential, along with a mix of bonds and money market instruments. The
Fund seeks to maximize growth while striving to reduce market risk by investing
in a wide range of stocks across a broad spectrum of industries.
- --------------------------------------------------------------------------------
PERFORMANCE
- --------------------------------------------------------------------------------
Total returns at net asset value for the six months ended 4/30/96 for Class A,
B, and C shares were 14.80%, 14.51% and 14.46%, respectively.(1)
Your Fund's average annual total returns at maximum offering price for
Class A shares for the 1- and 5-year periods ended 4/30/96 were 24.73% and
18.70%, respectively. For Class B shares, average annual total returns for the
1-year period ended 4/30/96 and since inception of the Class on 9/1/93 were
26.66% and 18.24%, respectively. For Class C shares, average annual total
return for the 1-year period ended 4/30/96 and since inception on 9/1/93 were
30.56% and 19.04%, respectively.(2)
- --------------------------------------------------------------------------------
OUTLOOK
- --------------------------------------------------------------------------------
"Looking ahead, we will continue to search for companies earning extra high
returns on capital--well above the average for the market--in businesses with
significant barriers to entry. We think the types of companies we own are the
ones that will outperform over time."
Richard Glasebrook, Portfolio Manager
April 30, 1996
Total returns include change in share price and reinvestment of dividends and
capital gains distributions. 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.
(1). Based on the change in net asset value per share for the period shown,
without deducting any sales charges. Such performance would have been lower if
sales charges were taken into account.
(2.) Class A returns show results of hypothetical investments on 4/30/95,
4/30/91, after deducting the current maximum initial sales charge of 5.75%.
Class A shares were first publicly offered on 1/3/89. The Fund's maximum sales
charge rate for Class A shares was lower prior to 11/22/95, so actual
performance would have been greater. Class B shares show results of
hypothetical investments on 4/30/95 and 9/1/93 (inception of class) and the
deduction of the applicable contingent deferred sales charge of 5% (1-year) and
3% (since inception) for Class B shares. Class C shares show results of
hypothetical investments on 4/30/95 and 9/1/93 with the deduction of a 1%
contingent deferred sales charge for the 1-year result. An explanation of the
different total returns is in the Fund's prospectus. The Fund's sub-advisor is
OpCap Advisors (formerly Quest for Value Advisors, the Fund's advisor until
11/22/95).
(3.) Source: Lipper Analytical Services. The Lipper total return average for
the 5-year performance of 42 flexible portfolio funds. The average is shown
for comparative purposes only. Oppenheimer Quest Opportunity Value Fund is
characterized by Lipper as a flexible portfolio fund. Lipper performance does
not take sales charges into consideration.
(4.) Source: Morningstar Mutual Funds, 4/30/96. Morningstar, Inc., an
independent mutual fund monitoring service, produces proprietary monthly
rankings of funds in broad investment categories (equity, taxable bond,
tax-exempt, or "hybrid") based on risk-adjusted investment returns, after
considering sales charges and expenses. Investment return measures a fund's (or
class's) 3-, and 5-, and 10-year (depending on the inception of the class or
fund) average annual total returns in excess of 90-day U.S. Treasury bill
returns. Risk measures a fund's (or class's) performance below 90-day U.S.
Treasury bill returns. Risk and returns are combined to produce star rankings,
reflecting performance relative to the average fund in a fund's category. Five
stars is the "highest" ranking (top 10%), 4 stars is "above average" and 1 star
is the "lowest" (bottom 1%). The 5-star current ranking is weighted average of
the 3- and 5-year rankings for the class, which were both 5 stars, weighted
40%/60%, respectively. There were 240 and 146 funds ranked in those respective
periods. Rankings are subject to change. The Fund's Class A, B, and C shares
have the same portfolio.
2 Oppenheimer Quest Opportunity Value Fund
<PAGE> 3
[PHOTO]
Bridget A. Macaskill
President
Oppenheimer
Quest Opportunity
Value Fund
Dear Shareholder,
Although it is showing definite signs of age, the bull market in stocks
continued through the early months of 1996. Despite higher interest rates and a
lagging bond market, stocks continued to move higher, driven by low inflation
and an influx of cash into mutual funds, which in turn was invested in the
equity markets.
However, there were plenty of reasons to be cautious. First, the stock
market hadn't suffered a 10% correction for more than six years--a post-World
War II record. Second, stock prices continued to be quite high in relation to
corporate profits. And third, the market became increasingly volatile, with 100
point intraday moves in the Dow Jones Industrial Average becoming commonplace.
To a large extent, the market's recent volatility was a reflection of the
confusion regarding the economy's strength. Stock market investors tend to
prefer a straightforward economic scenario, like the one we've had in recent
years: an economy growing fast enough to generate corporate profits, but not so
fast as to bring back inflation.
In contrast, recent economic performance provided mixed signals: appearing
sluggish in the winter and suddenly buoyant as spring approached. Initially, in
January, growth was subdued by unusually bad winter weather and the inability
of Congress and the President to agree on a balanced budget. Sluggish growth
usually means lower interest rates, which often power the stock market upward
because investors are shifting out of low yielding bonds.
But then, in February, the data indicated something quite different. The
U.S. Labor Department reported the fastest job growth in 12 years, which
suggested that the U.S. economy was growing too fast to consider further cuts
in interest rates. This led to a complete reversal in investor psychology, and
some extremely volatile trading days.
Although we currently expect this short-term stock market volatility to
continue, we believe the long-term case for stocks remains positive. The
reason: our expectation that the U.S. economy will remain in a slow growth
environment for the near future. And despite recent increases in gasoline and
agriculture prices, inflation remains under 3%.
Even at high prices, the demand for stocks continues to be strong. Many
experts believe that the reason for this continuing demand is that investors,
who more and more are responsible for their retirement savings, are
increasingly turning to equity mutual funds to achieve their goals. Also, as
cash-rich corporations buy back record amounts of their own shares, they reduce
the supply of stocks, and increase the book value of their outstanding shares,
further contributing to higher stock prices.
Your portfolio manager discusses the outlook for your Fund in light of
these broad issues on the following pages. Thank you for your confidence in
OppenheimerFunds. We look forward to helping you reach your investment goals in
the future.
/s/ BRIDGET A. MACASKILL
Bridget A. Macaskill
April 30, 1996
3 Oppenheimer Quest Opportunity Value Fund
<PAGE> 4
RICHARD GLASEBROOK
Portfolio Manager
Q+A
HOW HAS THE FUND PERFORMED OVER THE PAST SIX MONTHS?
The Fund has performed well, both in absolute terms and relative to the market.
This was in large part to our research-intensive investment strategy, which
helps us to identify the stocks of companies we think are positioned to
outperform their peers in any market. Over the past six months, however, the
stock market was generally positive and that provided our disciplined
management style with an added momentum.
WHAT CHARACTERISTICS DO YOU LOOK FOR WHEN EVALUATING STOCKS FOR THE PORTFOLIO?
Among other things, we look for companies with better-than-average businesses
in terms of return on capital, with sustainable or improving profitability and
with managements that are focused on benefiting the company's shareholders.
We're also looking for well run companies in businesses where entry by
competitors is difficult. We believe this investment approach can give
investors an edge in the market over time.
Just as important as a well-defined buy discipline is a strict guideline
for selling stocks. Though we always conduct careful research, we'll sell a
stock if our beliefs about a company's prospects prove to be wrong. And we'll
also sell if we find an opportunity to buy a business with the same fundamental
characteristics as one we own at a lower price.
An interview with your Fund's managers.
WHAT INVESTMENTS MADE POSITIVE CONTRIBUTIONS TO PERFORMANCE THIS PERIOD?
Even though we evaluate stocks on their individual merits rather than focusing
on the outlook for their industry, we've tended to have a pretty large
weighting in financial stocks and most of them performed reasonably well for
the year. One of our biggest holdings is a large regional bank that has an
outstanding distribution system for its services that we believed to be
undervalued. In addition, its management team owns an unusually high amount of
the bank's stock, which we think suggests a further impetus for working to
provide greater value to shareholders. Another large financial services firm we
own is a technologically-advantaged money center bank with an array of
high-growth-potential businesses outside of the U.S.(1)
WHAT IS YOUR OUTLOOK FOR THE FUND?
Unlike many funds, we don't do a lot of trading. When we buy stocks, we're
focused on the long run and expect to generate attractive returns on the back
of the businesses we invest in. Looking ahead, we will continue to search for
companies earning inordinately high returns on capital--well above the average
for the market--in businesses with significant barriers to entry. While the
stock market in the short term tends to be something of a popularity contest,
we believe long term it is a device that measures the relative ability of
companies to generate wealth for their shareholders. We think the types of
companies we own are the ones that will out-perform over time.-
(1.) The Fund's portfolio is subject to change.
4 Oppenheimer Quest Opportunity Value Fund
<PAGE> 5
Financials
<TABLE>
<CAPTION>
CONTENTS
<S> <C>
STATEMENT OF INVESTMENTS 6
STATEMENT OF ASSETS & LIABILITIES 9
STATEMENT OF OPERATIONS 10
STATEMENTS OF CHANGES IN NET ASSETS 11
FINANCIAL HIGHLIGHTS 12
NOTES TO FINANCIAL STATEMENTS 14
</TABLE>
5 Oppenheimer Quest Opportunity Value Fund
<PAGE> 6
STATEMENT OF INVESTMENTS April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT SEE NOTE 1
====================================================================================================================================
<S> <C> <C>
Short-Term Notes--16.1%
- ------------------------------------------------------------------------------------------------------------------------------------
Beneficial Corp., 5.29%, 5/30/96 $ 6,800,000 $ 6,771,023
--------------------------------------------------------------------------------------------------------------------
CIT Group Holdings, Inc., 5.35%, 5/2/96 10,500,000 10,498,440
--------------------------------------------------------------------------------------------------------------------
Deere (John) Capital Corp., 5.30%, 5/23/96 13,400,000 13,356,599
--------------------------------------------------------------------------------------------------------------------
Deere (John) Capital Corp., 5.30%, 5/6/96 17,800,000 17,786,887
--------------------------------------------------------------------------------------------------------------------
Ford Motor Credit Co., 5.29%, 6/6/96 21,600,000 21,485,736
--------------------------------------------------------------------------------------------------------------------
Ford Motor Credit Co., 5.32%, 5/2/96 19,300,000 19,297,198
--------------------------------------------------------------------------------------------------------------------
General Motors Acceptance Corp., 5.30%, 5/28/96 22,300,000 22,211,357
--------------------------------------------------------------------------------------------------------------------
General Motors Acceptance Corp., 5.32%, 5/20/96 30,000,000 29,915,767
--------------------------------------------------------------------------------------------------------------------
Household Finance Corp., 5.31%, 5/13/96 3,600,000 3,593,628
--------------------------------------------------------------------------------------------------------------------
IBM Corp., 5.30%, 5/23/96 7,000,000 6,977,328
--------------------------------------------------------------------------------------------------------------------
IBM Credit Corp., 5.29%, 6/3/96 25,000,000 24,878,771
--------------------------------------------------------------------------------------------------------------------
Merrill Lynch & Co., Inc., 5.35%, 5/1/96 6,700,000 6,700,000
------------
Total Short-Term Notes (Cost $183,472,734) 183,472,734
====================================================================================================================================
U.S. Government Obligations--0.3%
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Nts., 7.50%, 11/15/01 1,000,000 1,047,187
--------------------------------------------------------------------------------------------------------------------
U.S. Treasury Nts., 7.50%, 5/15/02 1,000,000 1,049,687
--------------------------------------------------------------------------------------------------------------------
U.S. Treasury Nts., 7.875%, 4/15/98 550,000 568,390
--------------------------------------------------------------------------------------------------------------------
U.S. Treasury Nts., 7.875%, 8/15/01 550,000 584,719
------------
Total U.S. Government Obligations (Cost $3,160,314) 3,249,983
<CAPTION>
SHARES
====================================================================================================================================
<S> <C> <C>
Common Stocks--83.5%
- ------------------------------------------------------------------------------------------------------------------------------------
Basic Materials--12.0%
- ------------------------------------------------------------------------------------------------------------------------------------
CHEMICALS--5.0%
- ------------------------------------------------------------------------------------------------------------------------------------
Du Pont (E.I.) De Nemours & Co. 600,000 48,225,000
--------------------------------------------------------------------------------------------------------------------
Hercules, Inc. 150,000 9,075,000
------------
57,300,000
- ------------------------------------------------------------------------------------------------------------------------------------
METALS--4.3%
Freeport-McMoRan Copper & Gold, Inc., Cl. B 1,500,000 49,312,500
- ------------------------------------------------------------------------------------------------------------------------------------
PAPER--2.7%
Champion International Corp. 625,000 30,156,250
- ------------------------------------------------------------------------------------------------------------------------------------
Consumer Cyclicals--10.3%
- ------------------------------------------------------------------------------------------------------------------------------------
AUTOS & HOUSING--0.9%
Shaw Industries, Inc. 800,000 9,900,000
- ------------------------------------------------------------------------------------------------------------------------------------
LEISURE & ENTERTAINMENT--7.1%
AMR Corp.(1) 250,000 22,312,500
--------------------------------------------------------------------------------------------------------------------
Harrah's Entertainment, Inc.(1) 700,000 24,150,000
--------------------------------------------------------------------------------------------------------------------
Mattel, Inc. 1,300,000 33,800,000
------------
80,262,500
</TABLE>
6 Oppenheimer Quest Opportunity Value Fund
<PAGE> 7
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
RETAIL: GENERAL--1.6%
VF Corp. 321,600 $ 18,331,200
- ------------------------------------------------------------------------------------------------------------------------------------
RETAIL: SPECIALTY--0.7%
Reebok International Ltd. 275,000 7,975,000
- ------------------------------------------------------------------------------------------------------------------------------------
Consumer Non-Cyclicals--3.5%
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE/SUPPLIES &
SERVICES--1.9%
Becton, Dickinson & Co. 270,000 21,768,750
- ------------------------------------------------------------------------------------------------------------------------------------
Household Goods--1.6%
Kimberly-Clark Corp. 253,500 18,410,437
- ------------------------------------------------------------------------------------------------------------------------------------
Energy--1.6%
- ------------------------------------------------------------------------------------------------------------------------------------
OIL-INTEGRATED--1.6%
MAPCO, Inc. 60,000 3,495,000
--------------------------------------------------------------------------------------------------------------------
Triton Energy Corp.(1) 265,200 14,586,000
------------
18,081,000
- ------------------------------------------------------------------------------------------------------------------------------------
FINANCIAL--31.5%
- ------------------------------------------------------------------------------------------------------------------------------------
BANKS--15.7%
Citicorp 675,000 53,156,250
--------------------------------------------------------------------------------------------------------------------
Mellon Bank Corp. 525,000 28,218,750
--------------------------------------------------------------------------------------------------------------------
Wells Fargo & Co. 400,000 97,050,000
------------
178,425,000
- ------------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL--11.7%
American Express Co. 261,700 12,692,450
--------------------------------------------------------------------------------------------------------------------
Countrywide Credit Industries, Inc. 1,583,300 34,238,863
--------------------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp. 700,000 58,362,500
--------------------------------------------------------------------------------------------------------------------
Federal National Mortgage Assn 500,000 15,312,500
--------------------------------------------------------------------------------------------------------------------
First Empire State Corp. 34,100 8,115,800
--------------------------------------------------------------------------------------------------------------------
Transamerica Corp. 60,000 4,560,000
------------
133,282,113
- ------------------------------------------------------------------------------------------------------------------------------------
INSURANCE--4.1%
ACE Ltd. 400,000 17,600,000
--------------------------------------------------------------------------------------------------------------------
EXEL Ltd. 300,000 21,600,000
--------------------------------------------------------------------------------------------------------------------
RenaissanceRe Holdings Ltd. 64,300 1,752,175
--------------------------------------------------------------------------------------------------------------------
Travelers/Aetna Property Casualty Corp., Cl. A(1) 200,000 5,525,000
------------
46,477,175
- ------------------------------------------------------------------------------------------------------------------------------------
Industrial--7.2%
- ------------------------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--0.4%
Raychem Corp. 50,000 3,893,750
- ------------------------------------------------------------------------------------------------------------------------------------
MANUFACTURING--4.0%
Tenneco, Inc. 825,000 45,271,875
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION--2.8%
Union Pacific Corp. 470,400 32,046,000
- ------------------------------------------------------------------------------------------------------------------------------------
Technology--17.4%
- ------------------------------------------------------------------------------------------------------------------------------------
AEROSPACE/DEFENSE--9.6%
- ------------------------------------------------------------------------------------------------------------------------------------
Alliant Techsystems, Inc.(1) 31,100 1,461,700
--------------------------------------------------------------------------------------------------------------------
Lockheed Martin Corp. 380,000 30,637,500
--------------------------------------------------------------------------------------------------------------------
McDonnell Douglas Corp. 800,000 77,200,000
-----------
109,299,200
</TABLE>
7 Oppenheimer Quest Opportunity Value Fund
<PAGE> 8
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ELECTRONICS--7.8%
- ------------------------------------------------------------------------------------------------------------------------------------
Intel Corp. 600,000 $ 40,650,000
--------------------------------------------------------------------------------------------------------------------
Loral Space & Communications Ltd.(1) 500,000 7,187,500
--------------------------------------------------------------------------------------------------------------------
National Semiconductor Corp.(1) 1,613,100 25,406,325
--------------------------------------------------------------------------------------------------------------------
Unitrode Corp.(1) 570,000 15,318,750
--------------
88,562,575
--------------
Total Common Stocks (Cost $769,892,364) 948,755,325
<CAPTION>
UNITS
====================================================================================================================================
<S> <C> <C>
Rights, Warrants and Certificates--0.0%
- ------------------------------------------------------------------------------------------------------------------------------------
Laboratory Corp. of America Holdings Wts.,
Exp. 4/00 (Cost $81) 34 19
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT AT VALUE (COST $956,525,493) 99.9% 1,135,478,061
- ------------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 0.1 1,009,298
-------- --------------
NET ASSETS 100.0% $1,136,487,359
======== ==============
</TABLE>
(1.) Non-income producing security.
See accompanying Notes to Financial Statements.
8 Oppenheimer Quest Opportunity Value Fund
<PAGE> 9
STATEMENT OF ASSETS AND LIABILITIES April 30, 1996 (Unaudited)
<TABLE>
<S> <C>
====================================================================================================================================
ASSETS
Investments, at value (cost $956,525,493)--see accompanying statement $1,135,478,061
--------------------------------------------------------------------------------------------------------------------
Receivables:
Shares of beneficial interest sold 12,624,455
Interest and dividends 1,720,417
--------------------------------------------------------------------------------------------------------------------
Other 60,107
--------------
Total assets 1,149,883,040
====================================================================================================================================
LIABILITIES
Bank overdraft 1,275,405
--------------------------------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 8,599,638
Shares of beneficial interest redeemed 3,230,187
Distribution and service plan fees 219,783
Transfer agent and accounting service fees 70,212
Other 456
--------------
Total liabilities 13,395,681
====================================================================================================================================
NET ASSETS $1,136,487,359
==============
====================================================================================================================================
COMPOSITION OF
NET ASSETS
Par value of shares of beneficial interest $ 411,352
--------------------------------------------------------------------------------------------------------------------
Additional paid-in capital 926,636,035
--------------------------------------------------------------------------------------------------------------------
Undistributed net investment income 2,083,720
--------------------------------------------------------------------------------------------------------------------
Accumulated net realized gain on gain on Investment transactions 28,403,684
--------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments 178,952,568
--------------
Net assets $1,136,487,359
==============
====================================================================================================================================
NET ASSET VALUE
PER SHARE
Class A Shares:
Net asset value and redemption price per share
(based on net assets of $610,658,235 and
21,987,866 shares of beneficial interest outstanding) $27.77
Maximum offering price per share (net asset
value plus sales charge of 5.75% of offering price) $29.46
--------------------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price and offering price per share (based on net
assets of $421,869,198 and 15,357,738 shares of beneficial interest outstanding) $27.47
--------------------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price and offering price per share (based on net
assets of $103,959,926 and 3,789,625 shares of beneficial interest outstanding) $27.43
</TABLE>
See accompanying Notes to Financial Statements
9 Oppenheimer Quest Opportunity Value Fund
<PAGE> 10
STATEMENT OF OPERATIONS For the Six Months Ended April 30, 1996
(Unaudited)
<TABLE>
<S> <C>
====================================================================================================================================
INVESTMENT INCOME
Dividends $ 6,230,946
--------------------------------------------------------------------------------------------------------------------
Interest 3,512,599
--------------
Total income 9,743,545
====================================================================================================================================
EXPENSES
Management fees--Note 4 3,982,268
--------------------------------------------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 1,170,191
Class B 1,494,038
Class C 353,462
--------------------------------------------------------------------------------------------------------------------
Transfer agent and accounting service fees--Note 4 372,395
--------------------------------------------------------------------------------------------------------------------
Registration and filing fees:
Class A 66,148
Class B 68,072
Class C 18,636
--------------------------------------------------------------------------------------------------------------------
Custodian fees and expenses 41,069
--------------------------------------------------------------------------------------------------------------------
Insurance expenses 27,365
--------------------------------------------------------------------------------------------------------------------
Shareholder reports 19,007
--------------------------------------------------------------------------------------------------------------------
Legal and auditing fees 14,588
--------------------------------------------------------------------------------------------------------------------
Trustees' fees and expenses 8,549
--------------------------------------------------------------------------------------------------------------------
Other 4,866
--------------
Total expenses 7,640,654
====================================================================================================================================
NET INVESTMENT INCOME 2,102,891
====================================================================================================================================
REALIZED AND
UNREALIZED GAIN
Net realized gain on investments 28,451,799
--------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments 79,559,038
--------------
Net realized and unrealized gain 108,010,837
====================================================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 110,113,728
==============
</TABLE>
See accompanying Notes to Financial Statements.
10 Oppenheimer Quest Opportunity Value Fund
<PAGE> 11
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1996 OCTOBER 31,
(UNAUDITED) 1995
===================================================================================================================================
<S> <C> <C>
OPERATIONS
Net investment income $ 2,102,891 $ 3,208,043
-------------------------------------------------------------------------------------------------------------------
Net realized gain 28,451,799 8,125,065
-------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation 79,559,038 85,013,107
--------------- ---------------
Net increase in net assets resulting from operations 110,113,728 96,346,215
===================================================================================================================================
DIVIDENDS AND
DISTRIBUTIONS TO
SHAREHOLDERS
Dividends from net investment income:
Class A (2,200,790) (1,066,642)
Class B (693,117) (335,822)
Class C (168,846) (56,920)
-------------------------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (4,713,724) (5,314,298)
Class B (2,813,903) (1,562,718)
Class C (633,303) (267,734)
===================================================================================================================================
BENEFICIAL INTEREST
TRANSACTIONS
Net increase in net assets resulting from beneficial interest
transactions--Note 2:
Class A 187,145,121 147,252,112
Class B 169,688,157 148,442,302
Class C 46,252,922 37,128,874
===================================================================================================================================
NET ASSETS
Total increase 501,976,245 420,565,369
-------------------------------------------------------------------------------------------------------------------
Beginning of period 634,511,114 213,945,745
--------------- -------------
End of period (including undistributed net investment
income of $2,083,720 and $3,043,582, respectively) $ 1,136,487,359 $ 634,511,114
=============== =============
</TABLE>
See accompanying Notes to Financial Statements
11 Oppenheimer Quest Opportunity Value Fund
<PAGE> 12
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A
-----------------------------------------------------------------------------------
SIX MONTHS
ENDED
APRIL 30, 1996 YEAR ENDED OCTOBER 31,
(UNAUDITED) 1995 1994 1993 1992 1991
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning
of period $ 24.59 $ 19.69 $ 18.71 $ 16.73 $ 14.29 $ 9.74
- --------------------------------------------------------------------------------------------------------------------
Income (loss) from
investment operations:
Net investment income .05 .23(3) .18(3) .35(3) .09(3) .03(3)
Net realized and unrealized
gain (loss) 3.55 5.40 1.35 2.02 2.93 4.78
--------- --------- --------- --------- -------- -------
Total income (loss) from
investment operations 3.60 5.63 1.53 2.37 3.02 4.81
- --------------------------------------------------------------------------------------------------------------------
Dividends and distributions
to shareholders:
Dividends from net
investment income (.13) (.12) (.33) (.07) (.03) (.23)
Distributions from net
realized gain (.29) (.61) (.22) (.32) (.55) (.03)
--------- --------- --------- --------- -------- -------
Total dividends and
distributions
to shareholders (.42) (.73) (.55) (.39) (.58) (.26)
- --------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 27.77 $ 24.59 $ 19.69 $ 18.71 $ 16.73 $ 14.29
========= ========= ========= ========= ======== =======
====================================================================================================================
TOTAL RETURN, AT
NET ASSET VALUE(4) 14.80% 29.88% 8.41% 14.34% 21.93% 50.44%
====================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $610,658 $367,240 $163,340 $127,225 $40,563 $ 8,446
- --------------------------------------------------------------------------------------------------------------------
Average net assets
(in thousands) $482,237 $251,626 $136,623 $ 87,864 $22,081 $ 6,119
- --------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 0.72%(5) 1.02% 0.96% 2.69% 0.72% 0.30%(6)
Expenses 1.34%(5) 1.69% 1.78% 1.83% 2.27% 2.35%(6)
- --------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(7) 16.3% 21.0% 42.0% 24.0% 32.0% 88.0%
Average brokerage
commission rate(8) $0.0527 -- -- -- -- --
</TABLE>
(1.) For the period from September 1, 1993 (inception of
offering) to October 31, 1993.
(2.) Offering price.
(3.) Based on average shares outstanding for the period.
(4.) Assumes a hypothetical initial investment on the business
day before the first day of the fiscal period, with all
dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value
calculated on the last business day of the fiscal period. Sales
charges are not reflected in the total returns. Total returns
are not annualized for periods of less than one full year.
(5.) Annualized.
12 Oppenheimer Quest Opportunity Value Fund
<PAGE> 13
<TABLE>
<CAPTION>
CLASS B CLASS C
----------------------------------------------- ---------------------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED APRIL
APRIL 30, 1996 YEAR ENDED OCTOBER 31, 30, 1996 YEAR ENDED OCTOBER 31,
(UNAUDITED) 1995 1994 1993(1) (UNAUDITED) 1995 1994 1993(1)
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Per Share Operating Data:
Net asset value, beginning
of period $ 24.33 $ 19.59 $ 18.70 $ 18.73(2) $ 24.31 $ 19.58 $ 18.70 $ 18.73(2)
- --------------------------------------------------------------------------------------------------------------------------------
Income (loss) from
investment operations:
Net investment income .04 .11(3) .08(3) .02(3) .05 .08(3) .08(3) .02(3)
Net realized and unrealized
gain (loss) 3.46 5.36 1.34 (.05) 3.44 5.38 1.33 (.05)
--------- --------- -------- -------- --------- -------- -------- --------
Total income (loss) from
investment operations 3.50 5.47 1.42 (.03) 3.49 5.46 1.41 (.03)
- --------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions
to shareholders:
Dividends from net
investment income (.07) (.12) (.31) -- (.08) (.12) (.31) --
Distributions from net
realized gain (.29) (.61) (.22) -- (.29) (.61) (.22) --
--------- --------- -------- -------- --------- -------- -------- --------
Total dividends and
distributions
to shareholders (.36) (.73) (.53) -- (.37) (.73) (.53) --
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 27.47 $ 24.33 $ 19.59 $ 18.70 $ 27.43 $ 24.31 $ 19.58 $ 18.70
========= ========= ======== ======== ========= ======== ======== ========
================================================================================================================================
Total Return, at
Net Asset Value(4) 14.51% 29.19% 7.84% (0.16)% 14.46% 29.16% 8.06% (0.16)%
================================================================================================================================
Ratios/Supplemental Data:
Net assets, end of period
(in thousands) $421,869 $217,663 $43,317 $ 2,115 $103,960 $49,608 $ 7,289 $ 313
- --------------------------------------------------------------------------------------------------------------------------------
Average net assets
(in thousands) $299,093 $116,523 $16,216 $ 1,175 $ 70,733 $24,168 $ 2,709 $ 172
- --------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 0.20%(5) 0.48% 0.43% 1.32%(5) 0.20%(5) 0.37% 0.43% 1.13%(5)
Expenses 2.40%(5) 2.21% 2.34% 2.52%(5) 2.41%(5) 2.31% 2.35% 2.52%(5)
- --------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(7) 16.3% 21.0% 42.0% 24.0% 16.3% 21.0% 42.0% 24.0%
Average brokerage
commission rate(8) $ 0.0527 -- -- -- $ 0.0527 -- -- --
</TABLE>
(6.) During the period noted above, the former Advisor voluntarily waived all or
a portion of its fees and assumed some operating expenses of the Fund. Without
such waivers and assumptions, the ratio of net investment income (loss) to
average net assets and the ratio of expenses to average net assets would have
been 0.68% and 3.33%, respectively.
(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, 1996 were $419,558,891 and $118,450,922,
respectively.
(8.) Total brokerage commissions paid on applicable purchases and sales of
portfolio securities for the period divided by the total number of related
shares purchased and sold. See accompanying Notes to Financial Statements.
13 Oppenheimer Quest Opportunity Value Fund
<PAGE> 14
NOTES TO FINANCIAL STATEMENTS (Unaudited)
================================================================================
1. SIGNIFICANT
ACCOUNTING POLICIES
Oppenheimer Quest Opportunity Value Fund (the Fund), formerly
named Quest for Value Opportunity Fund, a series of Oppenheimer
Quest for Value Funds, is a diversified open-end management
investment company registered under the Investment Company Act
of 1940, as amended. The Fund's investment objective is to seek
growth of capital over time through investments in a
diversified portfolio of common stocks, bonds and cash
equivalents. On November 22, 1995, OCC Distributors (previously
Quest for Value Distributors), OpCap Advisors (previously Quest
for Value Advisors) and their parent Oppenheimer Capital
consummated a transaction with OppenheimerFunds, Inc. (the
Manager), which resulted in the sale to the Manager of certain
mutual fund assets of OCC Distributors and OpCap Advisors
including the transfer of the management agreements and other
contracts relating to certain Quest for Value Funds and the use
of the name "Quest for Value". As part of the transaction, the
Fund has entered into an investment advisory agreement with the
Manager and the Manager has entered into a sub-advisory
agreement with OpCap Advisors (the former Manager). The Fund
offers Class A, Class B and Class C shares. Class A shares are
sold with a front-end sales charge. Class B and Class C shares
may be subject to a contingent deferred sales charge. All three
classes of shares have identical rights to earnings, assets and
voting privileges, except that each class has its own
distribution and/or service plan, expenses directly
attributable to a particular class and exclusive voting rights
with respect to matters affecting a single class. Class B
shares will automatically convert to Class A shares six years
after the date of purchase. The following is a summary of
significant accounting policies consistently followed by the
Fund.
----------------------------------------------------------------
INVESTMENT VALUATION. Portfolio securities are valued at the
close of the New York Stock Exchange on each trading day.
Listed and unlisted securities for which such information is
regularly reported are valued at the last sale price of the day
or, in the absence of sales, at values based on the closing bid
or asked price 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
Trustees. Such securities which cannot be valued by the
approved portfolio pricing service are valued using
dealer-supplied valuations provided the Manager is satisfied
that the firm rendering the quotes is reliable and that the
quotes reflect current market value, or are valued under
consistently applied procedures established by the Board of
Trustees to determine fair value in good faith. Short-term
"money market type" debt securities having a remaining maturity
of 60 days or less are valued at cost (or last determined
market value) adjusted for amortization to maturity of any
premium or discount.
----------------------------------------------------------------
ALLOCATION OF INCOME, EXPENSES AND GAINS AND LOSSES. Income,
expenses (other than those attributable to a specific class)
and gains and losses are allocated daily to each class of
shares based upon the relative proportion of net assets
represented by such class. Operating expenses directly
attributable to a specific class are charged against the
operations of that class.
----------------------------------------------------------------
FEDERAL TAXES. The Fund intends to continue to comply with
provisions of the Internal Revenue Code applicable to regulated
investment companies and to distribute all of its taxable
income, including any net realized gain on investments not
offset by loss carryovers, to shareholders. Therefore, no
federal income or excise tax provision is required.
----------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to
shareholders are recorded on the ex-dividend date.
----------------------------------------------------------------
CLASSIFICATION OF DISTRIBUTIONS TO SHAREHOLDERS. Net investment
income (loss) and net realized gain (loss) may differ for
financial statement and tax purposes. The character of the
distributions made during the year from net investment income
or net realized gains may differ from their ultimate
characterization for federal income tax purposes. Also, due to
timing of dividend distributions, the fiscal year in which
amounts are distributed may differ from the year that the
income or realized gain (loss) was recorded by the Fund.
----------------------------------------------------------------
OTHER. Investment transactions are accounted for on the date
the investments are purchased or sold (trade date) and dividend
income is recorded on the ex-dividend date. Realized gains and
losses on investments and unrealized appreciation and
depreciation are determined on an identified cost basis, which
is the same basis used for federal income tax purposes.
The preparation of financial statements in conformity with
generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts
of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting
period. Actual results could differ from those estimates.
14 Oppenheimer Quest Opportunity Value Fund
<PAGE> 15
================================================================================
2. SHARES OF
BENEFICIAL INTEREST
The Fund has authorized an unlimited number of $.01 par value
shares of beneficial interest. Transactions in shares of
beneficial interest were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED APRIL 30, 1996 YEAR ENDED OCTOBER 31, 1995
----------------------------------- -------------------------------------
SHARES AMOUNT SHARES AMOUNT
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 8,381,550 $ 223,311,592 9,028,138 $ 201,988,591
Dividends and distributions
reinvested 261,166 6,620,601 328,864 6,034,648
Redeemed (1,589,003) (42,787,072) (2,718,312) (60,771,127)
------------- ------------- ------------- -------------
Net increase 7,053,713 $ 187,145,121 6,638,690 $ 147,252,112
============= ============= ============= =============
-------------------------------------------------------------------------------------------------------------------
Class B:
Sold 6,890,128 $ 182,683,242 7,259,921 $ 160,670,137
Dividends and distributions
reinvested 132,114 3,318,700 98,923 1,804,130
Redeemed (610,004) (16,313,785) (624,721) (14,031,965)
------------- ------------- ------------- -------------
Net increase 6,412,238 $ 169,688,157 6,734,123 $ 148,442,302
------------- ------------- ------------- -------------
-------------------------------------------------------------------------------------------------------------------
Class C:
Sold 1,924,767 $ 51,028,954 1,828,198 $ 40,882,367
Dividends and distributions
reinvested 30,721 770,797 17,240 314,274
Redeemed (206,664) (5,546,829) (176,839) (4,067,767)
------------- ------------- ------------- -------------
Net increase 1,748,824 $ 46,252,922 1,668,599 $ 37,128,874
============= ============= ============= =============
</TABLE>
================================================================================
3. UNREALIZED GAINS AND
LOSSES ON INVESTMENTS
At April 30, 1996, net unrealized appreciation on investments
of $178,952,568 was composed of gross appreciation of
$185,496,463, and gross depreciation of $6,543,895.
================================================================================
4. MANAGEMENT FEES
AND OTHER TRANSACTIONS
WITH AFFILIATES
Management fees paid to the Manager were in accordance with the
investment advisory agreement with the Fund which provides for
a fee of 1.00% on the first $400 million of average annual net
assets, 0.90% on the next $400 million and 0.85% on net assets
in excess of $800 million. Prior to November 22, 1995,
management fees were paid to the former Manager at an annual
rate of 1.00% of the Fund's average net assets. The Manager has
agreed to reimburse the Fund if aggregate expenses (with
specified exceptions) exceed the most stringent applicable
regulatory limit on Fund expenses. The Manager acts as the
accounting agent for the Fund at an annual fee of $55,000, plus
out-of-pocket costs and expenses reasonably incurred. Prior to
November 22, 1995, accounting service fees were paid monthly to
the former Manager.
Effective November 22, 1995, the Manager pays OpCap
Advisors (the Sub-Advisor) based on the fee schedule set forth
in the Prospectus. For the period ended April 30, 1996, the
Manager paid $1,364,723 to the Sub-Advisor.
For the six months ended April 30, 1996, commissions (sales
charges paid by investors) on sales of Class A shares totaled
$3,397,280, of which $812,556 was retained by OppenheimerFunds
Distributor, Inc. (OFDI), a subsidiary of the Manager, as
general distributor, and by an affiliated broker/dealer. Sales
charges advanced to broker/dealers by OFDI on sales of the
Fund's Class B and Class C shares totaled $6,243,732 and
$464,597, of which $80,530 and $1,934, respectively, was paid
to an affiliated broker/dealer. During the six months ended
April 30, 1996, OFDI received contingent deferred sales charges
of $899 and $1,411, respectively, upon redemption of Class B
and Class C shares as reimbursement for sales commissions
advanced by OFDI at the time of sale of such shares.
OppenheimerFunds Services (OFS), a division of the Manager,
is the transfer and shareholder servicing agent for the Fund,
and for other registered investment companies. OFS's total
costs of providing such services are allocated ratably to these
companies.
15 Oppenheimer Quest Opportunity Value Fund
<PAGE> 16
NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued)
================================================================================
4. MANAGEMENT FEES AND
OTHER TRANSACTIONS WITH AFFILIATES (CONTINUED)
The Fund has adopted a Distribution and Service Plan for Class
A shares to compensate OFDI for a portion of its costs incurred
in connection with the personal service and maintenance of
accounts that hold Class A shares. Under the Plan, the Fund
pays an annual asset-based sales charge to OFDI of 0.25% per
year on Class A shares. The Fund also pays a service fee to
OFDI of 0.25% per year. Both fees are computed on the average
annual net assets of Class A shares of the Fund, determined as
of the close of each regular business day. OFDI uses all of the
service fee and a portion of the asset-based sales charge to
compensate brokers, dealers, banks and other financial
institutions quarterly for providing personal service and
maintenance of accounts of their customers that hold Class A
shares. OFDI retains the balance of the asset-based sales
charge to reimburse itself for its other expenditures under the
Plan. During the six months ended April 30, 1996, OFDI paid
$1,538 to an affiliated broker/dealer as compensation for Class
A personal service and maintenance expenses.
The Fund has adopted compensation type Distribution and
Service Plans for Class B and Class C shares to compensate OFDI
for its services and costs in distributing Class B and Class C
shares and servicing accounts. Under the Plans, the Fund pays
OFDI an annual asset-based sales charge of 0.75% per year on
Class B shares that are outstanding for 6 years or less and on
Class C shares, as compensation for sales commissions paid from
its own resources at the time of sale and associated financing
costs. If the Plans are terminated by the Fund, the Board of
Trustees may allow the Fund to continue payments of the
asset-based sales charge to OFDI for certain expenses it
incurred before the Plans were terminated. OFDI also receives a
service fee of 0.25% per year as compensation for costs
incurred in connection with the personal service and
maintenance of accounts that hold shares of the Fund, including
amounts paid to brokers, dealers, banks and other financial
institutions. Both fees are computed on the average annual net
assets of Class B and Class C shares, determined as of the
close of each regular business day. During the six months ended
April 30, 1996, OFDI retained $1,221,023 and $250,884,
respectively, as compensation for Class B and Class C sales
commissions and service fee advances, as well as financing
costs. At April 30, 1996, OFDI had incurred unreimbursed
expenses of $5,538,681 for Class B and $480,987 for Class C.
================================================================================
5. SHAREHOLDER MEETING
On November 3, 1995, a special meeting of the shareholders of
the Fund was held at which the five Trustees identified below
were elected and the approval of a new investment advisory
agreement with OppenheimerFunds, Inc. (Proposal 1), a new
sub-advisory agreement between OppenheimerFunds, Inc. and OpCap
Advisors (Proposal 2) and new Distribution and Service Plan
agreements with OppenheimerFunds Distributor, Inc. (Proposal 3)
were ratified. The following is a report of the votes cast
(Class A, B and C shares voted together unless otherwise
indicated):
<TABLE>
<CAPTION>
NOMINEE/PROPOSAL FOR AGAINST WITHHELD/ABSTAIN TOTAL
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Paul Y. Clinton 20,834,564.092 0 630,600.138 21,465,164.230
Thomas W. Courtney 20,836,286.487 0 628,877.743 21,465,164.230
Lacy B. Herrmann 20,838,638.097 0 626,526.133 21,465,164.230
George Loft 20,815,794.001 0 649,370.229 21,465,164.230
Bridget A. Macaskill 20,830,721.650 0 634,442.580 21,465,164.230
-----------------------------------------------------------------------------------------------------------------
Proposal No. 1 13,250,685.936 219,917.193 273,766.779 13,744,369.908
Proposal No. 2 13,258,994.913 195,469.508 289,905.487 13,744,369.908
Proposal No. 3
Class A 7,563,167.693 148,771.576 150,257.185 7,862,196.454
Class B 4,647,917.961 63,426.681 134,073.017 4,845,417.659
Class C 994,181.685 15,698.101 26,876.009 1,036,755.795
</TABLE>
16 Oppenheimer Quest Opportunity Value Fund
<PAGE> 17
OPPENHEIMER QUEST OPPORTUNITY VALUE FUND
A Series of Oppenheimer Quest for Value Funds
================================================================================
OFFICERS AND TRUSTEES
Bridget A. Macaskill, Chairman of the Board of Trustees and
President
Paul Y. Clinton, Trustee
Thomas W. Courtney, Trustee
Lacy B. Herrmann, Trustee
George Loft, Trustee
Richard J. Glasebrook, II, Vice President
George C. Bowen, Treasurer
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Andrew J. Donohue, Secretary
Robert G. Zack, Assistant Secretary
================================================================================
INVESTMENT ADVISOR
OppenheimerFunds, Inc.
================================================================================
SUB-ADVISOR
OpCap Advisors
================================================================================
DISTRIBUTOR
OppenheimerFunds Distributor, Inc.
================================================================================
TRANSFER AND SHAREHOLDER
SERVICING AGENT
OppenheimerFunds Services
================================================================================
CUSTODIAN OF
PORTFOLIO SECURITIES
State Street Bank and Trust Company
================================================================================
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
================================================================================
LEGAL COUNSEL
Gordon Altman Butowsky Weitzen Shalov & Wein
The financial statements included herein have been taken from
the records of the Fund without examination by the independent
accountants. This is a copy of a report to shareholders of
Oppenheimer Quest Opportunity Value Fund. This report must be
preceded or accompanied by a Prospectus of Oppenheimer Quest
Opportunity Value Fund. For material information concerning the
Fund, see the Prospectus. Shares of Oppenheimer funds are not
deposits or obligations of any bank, are not guaranteed by any
bank, and are not insured by the FDIC or any other agency, and
involve investment risks, including possible loss of the
principal amount invested.
17 Oppenheimer Quest Opportunity Value Fund
<PAGE> 18
OPPENHEIMERFUNDS FAMILY
================================================================================
OppenheimerFunds offers over 50 funds designed to fit virtually
every investment goal. Whether you're investing for retirement,
your children's education or tax-free income, we have the funds
to help you seek your objective.
When you invest with OppenheimerFunds, you can feel
comfortable knowing that you are investing with a respected
financial institution with over 35 years of experience in
helping people just like you reach their financial goals. And
you're investing with a leader in global, growth stock and
flexible fixed income investments--with over 2.8 million
shareholder accounts and more than $50 billion under
Oppenheimer's management and that of our affiliates.
At OppenheimerFunds we don't charge a fee to exchange
shares. And you can exchange shares easily by mail or by
telephone.1 For more information on Oppenheimer funds, please
contact your financial advisor or call us at 1-800-525-7048 for
a prospectus. You may also write us at the address shown on the
back cover. As always, please read the prospectus carefully
before you invest.
================================================================================
STOCK FUNDS
Disciplined Value Fund Oppenheimer Fund
Discovery Fund Quest Global Value Fund
Enterprise Fund Quest Small Cap Value Fund
Global Emerging Growth Fund Quest Value Fund
Growth Fund Target Fund
Gold & Special Minerals Fund Value Stock Fund
Growth Fund
================================================================================
STOCK & BOND FUNDS
Asset Allocation Fund Main Street Income & Growth Fund
Bond Fund for Growth Quest Growth & Income Value Fund
Disciplined Allocation Fund Quest Opportunity Value Fund
Equity Income Fund Strategic Income & Growth Fund
Global Growth & Income Fund Total Return Fund
================================================================================
BOND FUNDS
Bond Fund Limited-Term Government Fund
Champion Income Fund Strategic Income Fund
High Yield Fund U.S. Government Trust
International Bond Fund
================================================================================
TAX-EXEMPT FUNDS
California Tax-Exempt Fund(2) Pennsylvania Tax-Exempt Fund(2)
Florida Tax-Exempt Fund(2) Tax-Free Bond Fund
Insured Tax-Exempt Fund
Intermediate Tax-Exempt Fund Rochester Division
New Jersey Tax-Exempt Fund(2) Limited-Term N.Y. Municipal Fund
New York Tax-Exempt Fund(2) Rochester Fund Municipals
================================================================================
MONEY MARKET FUNDS
Cash Reserves Money Market Fund
================================================================================
LIFESPAN
Balanced Fund Income Fund
Growth Fund
(1.) Exchange privileges are subject to change or termination.
Shares may be exchanged only for shares of the same class of
eligible funds.
(2.) Available only to investors in certain states. Oppenheimer
funds are distributed by OppenheimerFunds Distributor, Inc.,
Two World Trade Center, New York, NY 10048-0203.
(C) Copyright 1996 OppenheimerFunds, Inc. All rights reserved.
18 Oppenheimer Quest Opportunity Value Fund
<PAGE> 19
<PAGE> 20
Information
GENERAL INFORMATION
Monday-Friday 8:30 a.m.-9 p.m. ET
Saturday 10 a.m.-2 p.m. ET
1-800-525-7048
TELEPHONE TRANSACTIONS
Monday-Friday 8:30 a.m.-8 p.m. ET
1-800-852-8457
PHONELINK
24 hours a day, automated
information and transactions
1-800-533-3310
TELECOMMUNICATIONS DEVICE
FOR THE DEAF (TDD)
Monday-Friday 8:30 a.m.-8 p.m. ET
1-800-843-4461
OPPENHEIMERFUNDS
INFORMATION HOTLINE
24 hours a day, timely and insightful
messages on the economy and
issues that affect your investments
1-800-835-3104
RS0236.001.0496 June 30, 1996
[Picture of Jennifer Leonard]
Jennifer Leonard, Customer Service Representative
OppenheimerFunds Service
"How may I help you?"
As an Oppenheimer fund shareholder, you have some special privileges.
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And when you need help, our Customer Service Representatives are only a
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PhoneLink gives you access to a variety of fund, account, and market
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