[COVER PAGE]
OPPENHEIMER QUEST GROWTH & INCOME VALUE FUND
Semiannual Report April 30,1996
/LOGO/OPPENHEIMERFUNDS/r/
<PAGE>
This Fund is for people who want their money to GROW over time, and want
INCOME for today's needs.
- ------------------------
HOW YOUR FUND IS MANAGED
- ------------------------
By investing in a diversified mix of what the Fund believes are undervalued
stocks of mature companies and bonds, Quest Growth & Income Value Fund seeks to
provide capital growth coupled with income. The Fund's diversified investment
strategy offers you the potential for growth with less risk.
- -----------
PERFORMANCE
- -----------
Total returns at net asset value for the 6 months ended 4/30/96 for Class A, B,
and C shares were 13.68%, 13.32%, and 13.23%, respectively.(1)
Your Fund's average annual total returns at maximum offering price for
Class A shares for the 1- year ended 4/30/96 and since inception on 11/01/91
were 14.25% and 11.78%, 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 15.46% and 13.35%, respectively. For Class C shares, average annual
total return for the 1-year period ended 4/30/95 and since inception on 9/1/93
were 19.22% and 14.10%, respectively.(2)
- -------
OUTLOOK
- -------
"We think that through our focus on fully knowing the business of the companies
we invest in, and our use of a disciplined, research-intensive approach in
searching for value, we will be able to set ourselves apart in this more typical
market environment."
Colin Glinsman, 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 11/4/91. 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 the 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).
2 Oppenheimer Quest Growth & Income Value Fund
<PAGE>
BRIDGET A. MACASKILL
President
Oppenheimer
Quest Growth &
Income 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
inflations and an index 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, 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: and 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 increased 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 acheive 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 investments goals in the future.
/S/Bridget Macaskill
Bridget Macaskill
April 30, 1996
3 Oppenheimer Quest Growth & Income Value Fund
<PAGE>
COLIN GLINSMAN
Portfolio Manager
Q + A
AN INTERVIEW WITH YOUR FUND'S MANAGERS.
HOW HAS THE FUND PERFORMED OVER THE PAST SIX MONTHS?
Due to our strong stock selection over the period, the Fund has performed quite
well on an absolute basis. However, as it normally will in a strong stock
market, this Fund--with roughly a third of its assets in bonds--exchanged a
small amount of return for a greater amount of income and stability than funds
invested fully in stocks can typically offer.
WHAT CHARACTERISTICS DO YOU LOOK FOR WHEN EVALUATING STOCKS?
We are pure bottom-up investors, which means we carefully research and evaluate
the prospects for each company we invest in. Through our research, we look for
stocks of companies with high quality businesses, meaning companies that receive
a high return on capital and have a dominant competitive position within their
industry. Beyond that, we look at price, preferring to pay less for a stock than
what we consider the business to be worth. By avoiding buying stocks that are
performing at peak levels, we also believe we can limit the risk of disappoint-
ments.
WHAT INVESTMENTS MADE POSITIVE CONTRIBUTIONS TO PERFORMANCE OVER THE PERIOD?
Two of the companies that performed well for us were situations where we
were able to buy good businesses with strong management teams at prices that
were temporarily low. For example, we bought a cable television equipment
manufacturer that despite having had an earnings shortfall, was operating what
we perceived to be a very good business. As a result, we thought the market
would eventually award a higher value to the stock, and it did.
Another strong performer was a mining company that we owned. When we
bought it, the mix of ore it was producing was of a relatively poor quality, and
its earnings numbers were off. When we evaluated the business, we found that the
substandard ore mix was likely the result of aggressive expansion. Our belief
was that when the expansion of the mine was completed, the company's results
would improve dramatically, and its capital spending would fall. That's exactly
what happened, and the stock price responded accordingly.(1)
DID ANY INVESTMENTS OR MARKET FACTORS HURT THE FUND?
Although the stocks in our portfolio performed very well over the period,
the bond market has been down since October. In a portfolio that was designed to
have one-third of its assets in bonds, it is very difficult to keep pace with a
bull market in stocks. Within the bond portion of the portfolio, our focus on
longer-term bonds--which are particularly susceptible to declines in value when
interest rates increase--was a setback during the period. Long-term, however, we
believe that our bond holdings will serve investors well, both by their ability
to offset the volatility of the stock market and in terms of the income they can
provide.
WHAT IS YOUR OUTLOOK FOR THE FUND?
We're coming out of what has been an easy period in the stock market. There
have been many strong performing funds because the market as a whole performed
so strongly. We believe we're now entering a period where there's going to be a
greater amount of differentiation between managers. We think that through our
focus on fully knowing the business of the companies we invest in, and our use
of a disciplined, research-intensive approach in searching for value, we will be
able to set ourselves apart in this more typical market environment.//
1. The Fund's portfolio is subject to change.
4 Oppenheimer Quest Growth & Income Value Fund
<PAGE>
<TABLE>
<CAPTION>
===================================================
STATEMENT OF INVESTMENTS APRIL 30, 1996 (UNAUDITED)
FACE MARKET VALUE
AMOUNT SEE NOTE 1
<S> <C> <C> <C>
=================================================================================================================================
NON-CONVERTIBLE CORPORATE BONDS AND NOTES - 27.0%
- ---------------------------------------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS - 11.4%
- ---------------------------------------------------------------------------------------------------------------------------------
MEDIA - 11.4%
----------------------------------------------------------------------------------------------------------------------
Comcast Corp., 10.625% Sr. Sub. Debs., 7/15/12 $2,000,000 $ 2,177,500
----------------------------------------------------------------------------------------------------------------------
News America Holdings, Inc., 7.90% Sr. Unsec. Gtd. Debs., 12/1/2095 2,500,000 2,238,995
----------------------------------------------------------------------------------------------------------------------
Time Warner, Inc., 8.05% Debs., 1/15/16 2,000,000 1,890,782
------------
6,307,277
- ---------------------------------------------------------------------------------------------------------------------------------
CONSUMER NON-CYCLICALS - 15.6%
- ---------------------------------------------------------------------------------------------------------------------------------
BEVERAGES - 3.5%
----------------------------------------------------------------------------------------------------------------------
Coca-Cola Co., 7.375% Debs., 7/29/2093 2,000,000 1,963,736
- ---------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE/SUPPLIES & SERVICES - 7.9%
----------------------------------------------------------------------------------------------------------------------
Columbia/HCA Healthcare Corp., 7.50% Debs., 11/15/2095 2,500,000 2,320,495
----------------------------------------------------------------------------------------------------------------------
Tenet Healthcare Corp., 8.625% Sr. Unsec. Nts., 12/1/03 2,000,000 2,050,000
------------
4,370,495
- ---------------------------------------------------------------------------------------------------------------------------------
HOUSEHOLD GOODS - 4.2%
----------------------------------------------------------------------------------------------------------------------
Playtex Family Products Corp., 9% Sr. Sub. Nts., 12/15/03 2,500,000 2,325,000
------------
Total Non-Convertible Corporate Bonds and Notes (Cost $15,803,591) 14,966,508
=================================================================================================================================
CONVERTIBLE CORPORATE BONDS AND NOTES - 6.3%
- ---------------------------------------------------------------------------------------------------------------------------------
Mascotech, Inc., 4.50% Cv. Sub. Debs., 12/15/03 4,000,000 3,060,000
----------------------------------------------------------------------------------------------------------------------
Shoney's, Inc., Zero Coupon Cv. Debs., 9.71%, 4/11/04(1) 1,000,000 432,500
------------
Total Convertible Corporate Bonds and Notes (Cost $3,579,533) 3,492,500
SHARES
=================================================================================================================================
COMMON STOCKS - 64.6%
- ---------------------------------------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS - 18.7%
- ---------------------------------------------------------------------------------------------------------------------------------
MEDIA - 6.1%
----------------------------------------------------------------------------------------------------------------------
Tele-Communications, Inc. (New), Liberty Media Group, Series A(2) 32,500 889,687
----------------------------------------------------------------------------------------------------------------------
Tele-Communications, Inc. (New), TCI Group, Series A(2) 130,000 2,486,250
------------
3,375,937
- ---------------------------------------------------------------------------------------------------------------------------------
RETAIL: GENERAL - 12.6%
----------------------------------------------------------------------------------------------------------------------
Unifi, Inc. 100,000 2,687,500
----------------------------------------------------------------------------------------------------------------------
VF Corp. 75,000 4,275,000
------------
6,962,500
- ---------------------------------------------------------------------------------------------------------------------------------
CONSUMER NON-CYCLICALS - 3.6%
- ---------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE/DRUGS - 2.6%
----------------------------------------------------------------------------------------------------------------------
Warner-Lambert Co. 13,000 1,452,750
- ---------------------------------------------------------------------------------------------------------------------------------
HOUSEHOLD GOODS - 1.0%
----------------------------------------------------------------------------------------------------------------------
Avon Products, Inc. 6,000 533,250
</TABLE>
5 Oppenheimer Quest Growth & Income Value Fund
<PAGE>
<TABLE>
<CAPTION>
==============================================================
STATEMENT OF INVESTMENTS APRIL 30, 1996 (UNAUDITED)(CONTINUED)
MARKET VALUE
SHARES SEE NOTE 1
<S> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------------
FINANCIAL - 17.7%
- ---------------------------------------------------------------------------------------------------------------------------------
BANKS - 11.1%
----------------------------------------------------------------------------------------------------------------------
Citicorp 20,000 $ 1,575,000
----------------------------------------------------------------------------------------------------------------------
Mellon Bank Corp. 40,000 2,150,000
----------------------------------------------------------------------------------------------------------------------
Wells Fargo & Co. 10,000 2,426,250
------------
6,151,250
- ---------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL - 1.0%
----------------------------------------------------------------------------------------------------------------------
Countrywide Credit Industries, Inc. 25,000 540,625
- ---------------------------------------------------------------------------------------------------------------------------------
INSURANCE - 5.6%
----------------------------------------------------------------------------------------------------------------------
ACE Ltd. 55,000 2,420,000
----------------------------------------------------------------------------------------------------------------------
Progressive Corp. 15,000 699,375
------------
3,119,375
- ---------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL - 7.4%
- ---------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL SERVICES - 3.7%
----------------------------------------------------------------------------------------------------------------------
Briggs & Stratton Corp. 45,000 2,041,875
- ---------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 3.7%
----------------------------------------------------------------------------------------------------------------------
Canadian Pacific Ltd. 100,000 2,037,500
- ---------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY - 17.2%
- ---------------------------------------------------------------------------------------------------------------------------------
AEROSPACE/DEFENSE - 3.5%
----------------------------------------------------------------------------------------------------------------------
McDonnell Douglas Corp. 20,000 1,930,000
- ---------------------------------------------------------------------------------------------------------------------------------
COMPUTER HARDWARE - 3.3%
----------------------------------------------------------------------------------------------------------------------
Dell Computer Corp.(2) 40,000 1,835,000
- ---------------------------------------------------------------------------------------------------------------------------------
COMPUTER SOFTWARE - 6.2%
----------------------------------------------------------------------------------------------------------------------
Electronic Arts, Inc.(2) 100,000 2,675,000
----------------------------------------------------------------------------------------------------------------------
Maxis, Inc.(2) 30,000 735,000
------------
3,410,000
- ---------------------------------------------------------------------------------------------------------------------------------
ELECTRONICS - 1.2%
----------------------------------------------------------------------------------------------------------------------
General Instrument Corp.(2) 20,000 655,000
- ---------------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS-TECHNOLOGY - 3.0%
----------------------------------------------------------------------------------------------------------------------
Sprint Corp. 40,000 1,685,000
------------
Total Common Stocks (Cost $30,468,908) 35,730,062
----------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $49,852,032) 97.9% 54,189,070
----------------------------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 2.1 1,162,372
------ ------------
NET ASSETS 100.0% $55,351,442
====== ============
</TABLE>
1. For zero coupon bonds, the interest rate shown is the effective
yield on the date of purchase.
2. Non-income producing security.
See accompanying Notes to Financial Statements.
6 Oppenheimer Quest Growth & Income Value Fund
<PAGE>
<TABLE>
<CAPTION>
==============================================================
STATEMENT OF ASSETS AND LIABILITIES APRIL 30, 1996 (UNAUDITED)
====================================================================================================================================
<S> <C> <C>
ASSETS Investments, at value (cost $49,852,032) - see accompanying statement $54,189,070
----------------------------------------------------------------------------------------------------
Cash 602,593
----------------------------------------------------------------------------------------------------
Receivables:
Interest and dividends 577,179
Shares of beneficial interest sold 138,773
----------------------------------------------------------------------------------------------------
Deferred organization costs - Note 1 9,813
----------------------------------------------------------------------------------------------------
Other 5,647
------------
Total assets 55,523,075
====================================================================================================================================
LIABILITIES Payables and other liabilities:
Shares of beneficial interest redeemed 138,861
Transfer agent and accounting service fees 14,026
Distribution and service plan fees 11,092
Dividends 1,524
Other 6,130
------------
Total liabilities 171,633
====================================================================================================================================
NET ASSETS $55,351,442
============
====================================================================================================================================
COMPOSITION OF Par value of shares of beneficial interest $ 47,164
NET ASSETS ----------------------------------------------------------------------------------------------------
Additional paid-in capital 46,520,507
----------------------------------------------------------------------------------------------------
Undistributed net investment income 110,670
----------------------------------------------------------------------------------------------------
Accumulated net realized gain on investment transactions 4,336,063
----------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments - Note 3 4,337,038
------------
Net assets $55,351,442
============
====================================================================================================================================
NET ASSET VALUE Class A Shares:
PER SHARE Net asset value and redemption price per share (based on net
assets of $43,304,977 and 3,686,810 shares of beneficial interest outstanding) $11.75
Maximum offering price per share (net asset value plus sales charge
of 5.75% of offering price) $12.47
----------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price and offering price per share (based on
net assets of $9,868,641 and 843,560 shares of beneficial interest outstanding) $11.70
----------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price and offering price per share (based on
net assets of $2,177,824 and 186,038 shares of beneficial interest outstanding) $11.71
</TABLE>
See accompanying Notes to Financial Statements.
7 Oppenheimer Quest Growth & Income Value Fund
<PAGE>
<TABLE>
<CAPTION>
===========================================================================
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED APRIL 30, 1996 (UNAUDITED)
<S> <C> <C>
====================================================================================================================================
INVESTMENT INCOME Interest $ 702,945
----------------------------------------------------------------------------------------------------
Dividends 326,575
-----------
Total income 1,029,520
====================================================================================================================================
EXPENSES Management fees - Note 4 217,210
----------------------------------------------------------------------------------------------------
Distribution and service plan fees - Note 4:
Class A 80,546
Class B 43,516
Class C 9,732
----------------------------------------------------------------------------------------------------
Transfer agent and accounting service fees - Note 4 64,816
----------------------------------------------------------------------------------------------------
Custodian fees and expenses 38,400
----------------------------------------------------------------------------------------------------
Registration and filing fees:
Class A 8,344
Class B 3,980
Class C 805
----------------------------------------------------------------------------------------------------
Legal and auditing fees 8,507
----------------------------------------------------------------------------------------------------
Shareholder reports 6,966
----------------------------------------------------------------------------------------------------
Insurance expenses 6,229
----------------------------------------------------------------------------------------------------
Trustees' fees and expenses 4,427
----------------------------------------------------------------------------------------------------
Other 9,012
-----------
Total expenses 502,490
====================================================================================================================================
NET INVESTMENT INCOME 527,030
====================================================================================================================================
REALIZED AND Net realized gain on investments 4,289,850
UNREALIZED GAIN ----------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments 1,606,351
-----------
Net realized and unrealized gain 5,896,201
====================================================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $6,423,231
===========
</TABLE>
See accompanying Notes to Financial Statements.
8 Oppenheimer Quest Growth & Income Value Fund
<PAGE>
<TABLE>
<CAPTION>
===================================
STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1996 OCTOBER 31,
(UNAUDITED) 1995
====================================================================================================================================
<S> <C> <C> <C>
OPERATIONS Net investment income $ 527,030 $ 965,811
----------------------------------------------------------------------------------------------------
Net realized gain 4,289,850 2,227,731
-------------------------------
Net change in unrealized appreciation or depreciation 1,606,351 2,324,387
-------------------------------
Net increase in net assets resulting
from operations 6,423,231 5,517,929
====================================================================================================================================
DIVIDENDS AND DISTRIBUTIONS Dividends from net investment income:
TO SHAREHOLDERS Class A (402,697) (917,781)
Class B (62,827) (105,700)
Class C (13,065) (17,697)
----------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (1,723,233) (1,275,011)
Class B (359,598) (129,812)
Class C (82,370) (20,124)
====================================================================================================================================
BENEFICIAL INTEREST Net increase in net assets resulting from TRANSACTIONS
beneficial interest transactions - Note 2:
Class A 3,230,287 3,863,132
Class B 1,601,883 4,358,519
Class C 206,472 1,300,722
====================================================================================================================================
NET ASSETS Total increase 8,818,083 12,574,177
----------------------------------------------------------------------------------------------------
Beginning of period 46,533,359 33,959,182
-------------------------------
End of period (including undistributed net investment
income of $110,670 and $62,229, respectively) $55,351,442 $46,533,359
===============================
</TABLE>
See accompanying Notes to Financial Statements.
9 Oppenheimer Quest Growth & Income Value Fund
<PAGE>
<TABLE>
<CAPTION>
====================
FINANCIAL HIGHLIGHTS
CLASS A
-------------------------------------------------------------------------------
SIX MONTHS
ENDED
APRIL 30,1996 YEAR ENDED OCTOBER 31,
(UNAUDITED) 1995 1994 1993 1992(2)
================================================================================================================
PER SHARE OPERATING DATA:
<S> <C> <C> <C> <C> <C>
Net asset value, beginning
of period $10.92 $10.09 $11.24 $10.80 $10.00(3)
- ----------------------------------------------------------------------------------------------------------------
Income from investment
operations:
Net investment income .12 .27(4) .32(4) .30(4) .28(4)
Net realized and unrealized
gain 1.32 1.27 .55 .73 .80
- ----------------------------------------------------------------------------------------------------------------
Total income from investment
operations 1.44 1.54 .87 1.03 1.08
- ----------------------------------------------------------------------------------------------------------------
Dividends and distributions
to shareholders:
Dividends from net
investment income (.11) (.29) (.32) (.26) (.28)
Distributions from net
realized gain (.50) (.42) (1.70) (.33) --
- ----------------------------------------------------------------------------------------------------------------
Total dividends and
distributions to
shareholders (.61) (.71) (2.02) (.59) (.28)
- ----------------------------------------------------------------------------------------------------------------
Net asset value,
end of period $11.75 $10.92 $10.09 $11.24 $10.80
===============================================================================
================================================================================================================
TOTAL RETURN, AT NET ASSET
VALUE(5) 13.68% 16.35% 8.64% 9.93% 10.84%
================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $43,305 $37,082 $30,576 $28,466 $8,057
- ----------------------------------------------------------------------------------------------------------------
Average net assets
(in thousands) $40,797 $33,397 $29,112 $23,771 $6,940
- ----------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 2.16%(7) 2.60%(6) 3.16%(6) 2.66%(6) 2.73%(6)(7)
Expenses 1.81%(7) 1.99%(6) 1.86%(6) 1.90%(6) 2.23%(6)(7)
- ----------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(8) 75.8% 130.0% 113.0% 192.0% 77.0%
Average brokerage commission
rate(9) $0.0538 -- -- -- --
</TABLE>
1. For the period from September 1, 1993 (inception of offering) to October 31,
1993.
2. For the period from November 1, 1991 (commencement of operations) to October
31, 1992.
3. Offering price.
4. Based on average shares outstanding for the period.
5. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period, 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. 6. During the periods presented above, the
former Adviser voluntarily waived a portion of its fees. If such waivers had not
been in effect, the ratios of net investment income to average net assets and
the ratios of expenses to average net assets for Class A would have been 2.57%
and 2.02%, respectively, for the year ended October 31, 1995, 2.70% and 2.32%,
respectively, for the year ended October 31, 1994, 2.38% and 2.18%,
respectively, for the year ended October 31, 1993, and 1.98% and 2.98%,
annualized, respectively, for the period ended November 1, 1991 (commencement of
operations) to October 31, 1992. The ratios of net investment income to average
net assets and the ratios of expenses to average net assets would have been
1.73% and 2.57%, respectively, for Class B and 1.43% and 2.84%, respectively,
for Class C, for the year ended October 31, 1995, 2.07% and 2.93%, respectively,
for Class B and 1.91% and 3.10%, respectively, for Class C, for the year ended
October 31, 1994 and 1.44% and 2.88%, annualized, respectively, for Class B and
1.80% and 2.87%, annualized, respectively, for Class C, for the period September
1, 1993 (initial offering) to October 31, 1993.
<TABLE>
<CAPTION>
====================
FINANCIAL HIGHLIGHTS
CLASS B
---------------------------------------------------------------
SIX MONTHS
ENDED
APRIL 30, 1996 YEAR ENDED OCTOBER 31,
(UNAUDITED) 1996 1994 1993(1)
================================================================================================
PER SHARE OPERATING DATA:
<S> <C> <C> <C> <C>
Net asset value, beginning
of period $10.88 $10.07 $11.23 $11.21(3)
- ------------------------------------------------------------------------------------------------
Income from investment
operations:
Net investment income .10 .19(4) .25(4) .04(4)
Net realized and unrealized
gain 1.30 1.28 .56 .05
- ------------------------------------------------------------------------------------------------
Total income from investment
operations 1.40 1.47 .81 .09
- ------------------------------------------------------------------------------------------------
Dividends and distributions
to shareholders:
Dividends from net
investment income (.08) (.24) (.27) (.07)
Distributions from net
realized gain (.50) (.42) (1.70) --
- ------------------------------------------------------------------------------------------------
distributions to
shareholders (.58) (.66) (1.97) (.07)
- ------------------------------------------------------------------------------------------------
end of period $11.70 $10.88 $10.07 $11.23
===============================================================
================================================================================================
TOTAL RETURN, AT NET ASSET
VALUE(5) 13.32% 15.65% 7.96% 0.81%
================================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $9,869 $7,623 $2,928 $319
- ------------------------------------------------------------------------------------------------
Average net assets
(in thousands) $8,783 $4,846 $1,586 $228
- ------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 1.66%(7) 1.71%(6) 2.53%(6) 1.83%(6)(7)
Expenses 2.54%(7) 2.59%(6) 2.47%(6) 2.49%(6)(7)
- ------------------------------------------------------------------------------------------------
Portfolio turnover rate(8) 75.8% 130.0% 113.0% 192.0%
Average brokerage commission
rate(9) $0.0538 -- -- --
</TABLE>
10 Oppenheimer Quest Growth & Income Value Fund
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS (CONTINUED)
CLASS C
---------------------------------------------------------------
SIX MONTHS
ENDED APRIL 30,
1996 YEAR ENDED OCTOBER 31,
(UNAUDITED) 1995 1994 1993(1)
================================================================================================
PER SHARE OPERATING DATA:
<S> <C> <C> <C> <C>
Net asset value, beginning
of period $10.89 $10.07 $11.23 $11.21(3)
- ------------------------------------------------------------------------------------------------
Income from investment
operations:
Net investment income .10 .15(4) .24(4) .04(4)
Net realized and unrealized
gain 1.30 1.30 .56 .05
- ------------------------------------------------------------------------------------------------
Total income from investment
operations 1.40 1.45 .80 .09
- ------------------------------------------------------------------------------------------------
Dividends and distributions
to shareholders:
Dividends from net
investment income (.08) (.21) (.26) (.07)
Distributions from net
realized gain (.50) (.42) (1.70) --
- ------------------------------------------------------------------------------------------------
Total dividends and
distributions
to shareholders (.58) (.63) (1.96) (.07)
- ------------------------------------------------------------------------------------------------
Net asset value,
end of period $11.71 $10.89 $10.07 $11.23
===============================================================
================================================================================================
TOTAL RETURN, AT NET
ASSET VALUE(5) 13.23% 15.38% 7.91% 0.81%
- ------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $2,178 $1,828 $455 $102
- ------------------------------------------------------------------------------------------------
Average net assets
(in thousands) $1,953 $ 968 $298 $100
- ------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 1.69%(7) 1.39%(6) 2.39%(6) 2.18%(6)(7)
Expenses 2.55%(7) 2.88%(6) 2.62%(6) 2.49%(6)(7)
- ------------------------------------------------------------------------------------------------
Portfolio turnover rate(8) 75.8% 130.0% 113.0% 192.0%
Average brokerage commission
rate(9) $0.0538 -- -- --
</TABLE>
7. Annualized.
8. 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 $40,912,436 and $38,095,478, respectively. 9. 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.
11 Oppenheimer Quest Growth & Income Value Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Quest Growth & Income Value Fund (the Fund), formerly named
Quest for Value Growth and Income 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 a combination of growth of capital and
investment income with growth of capital as the primary objective. 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 Quest for Value Funds and the use of the
name "Quest for Value". As part of the transaction, the Fund 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.
ORGANIZATION COSTS. OpCap Advisors advanced $96,000 for organization and
start-up costs of the Fund. Such expenses are being amortized over a five-
year period from the date operations commenced.
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.
12 Oppenheimer Quest Growth & Income Value Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
1. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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.
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 YEAR ENDED
APRIL 30, 1996 OCTOBER 31, 1995
--------------------------- -----------------------------
SHARES AMOUNT SHARES AMOUNT
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 347,860 $4,081,203 790,817 $ 8,471,883
Dividends and distributions
reinvested 185,356 2,031,497 216,701 2,097,137
Redeemed (241,465) (2,882,413) (641,530) (6,705,888)
--------- ----------- --------- ------------
Net increase 291,751 $3,230,287 365,988 $ 3,863,132
========= =========== ========= ============
---------------------------------------------------------------------------------------------
Class B:
Sold 179,730 $2,034,625 438,682 $ 4,674,731
Dividends and distributions
reinvested 36,405 397,252 22,368 217,205
Redeemed (72,992) (829,994) (51,318) (533,417)
--------- ----------- --------- ------------
Net increase 143,143 $1,601,883 409,732 $ 4,358,519
========= =========== ========= ============
---------------------------------------------------------------------------------------------
Class C:
Sold 32,321 $ 370,646 140,694 $ 1,497,250
Dividends and distributions
reinvested 8,338 91,138 3,711 36,149
Redeemed (22,454) (255,312) (21,778) (232,677)
--------- ----------- --------- ------------
Net increase 18,205 $ 206,472 122,627 $ 1,300,722
========= =========== ========= ============
</TABLE>
3. UNREALIZED GAINS AND LOSSES ON INVESTMENTS
At April 30, 1996, net unrealized appreciation on investments of $4,337,038
was composed of gross appreciation of $5,350,455, and gross depreciation of
$1,013,417.
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 0.85% of
average annual net assets. Prior to November 22, 1995, management fees were
paid to OpCap Advisors at an annual rate of 0.85% 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.
13 Oppenheimer Quest Growth & Income Value Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
4. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES (CONTINUED)
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 $76,038 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 $55,064, of which $11,463 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 $68,158 and $3,435, of which $1,721 was paid to
an affiliated broker/dealer for Class B 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.
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
0.15% 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 retained $13,027 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 $34,053 and $5,819, 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
$45,136 for Class B.
14 Oppenheimer Quest Growth & Income Value Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
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 2,309,077.254 133,059.527 100,342.002 2,542,478.783
Proposal No. 2 2,305,220.805 131,840.522 105,417.456 2,542,478.783
Proposal No. 3:
Class A 1,873,181.362 115,544.734 99,420.330 2,088,146.426
Class B 357,342.570 9,276.901 9,679.718 376,299.189
Class C 72,986.473 2,190.027 2,856.668 78,033.168
</TABLE>
15 Oppenheimer Quest Growth & Income Value Fund
<PAGE>
OPPENHEIMER QUEST GROWTH & INCOME 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
Colin Glinsman, 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 OppenheimerFunds Services
SHAREHOLDER SERVICING
AGENT
CUSTODIAN OF PORTFOLIO State Street Bank and Trust Company
SECURITIES
INDEPENDENT Price Waterhouse LLP
ACCOUNTANTS
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 Growth &
Income Value Fund. This report must be preceded or accompanied by a
Prospectus of Oppenheimer Quest Growth & Income 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.
16 Oppenheimer Quest Growth & Income Value Fund
