<PAGE> 1
OPPENHEIMER QUEST SMALL CAP VALUE FUND
Semiannual Report April 30, 1996
"We know we
have to invest
aggressively
for the long
term to achieve
the high growth
we need."
[OPPENHEIMERFUNDS LOGO]
<PAGE> 2
This Fund is for people who want the kind of substantial growth available only
through fast-growing small companies.
- --------------------------------------------------------------------------------
HOW YOUR FUND IS MANAGED
- --------------------------------------------------------------------------------
Oppenheimer Quest Small Cap Value Fund seeks capital appreciation by investing
in stocks of small-cap companies that are priced below their true worth. By
identifying and investing in small company stocks believed to be priced below
their actual worth, the fund seeks to capitalize on the attractive growth
potential of these stocks. This value philosophy not only offers the potential
for significant long-term growth, it may help reduce volatility in declining
markets.
- --------------------------------------------------------------------------------
PERFORMANCE
- --------------------------------------------------------------------------------
Total returns at net asset value for the six months ended 4/30/96 for Class A,
B, and C shares were 13.72%, 13.40%, and 13.38% 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 14.66% and
14.09%, 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
16.05% and 7.93%, 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 20.02%
and 8.90%, respectively.(2)
- --------------------------------------------------------------------------------
OUTLOOK
- --------------------------------------------------------------------------------
"Our outlook is strongly positive. We believe our portfolio contains some very
good businesses and over the long term, our value-oriented approach makes sense.
By focusing on the inherent strengths of individual companies, we should
continue to perform well, particularly if the market becomes more volatile."
Louis Goldstein and Timothy McCormack
Portfolio Managers
April 30, 1996
(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 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 Small Cap Value Fund
<PAGE> 3
[PHOTO]
Bridget A. Macaskill
President
Oppenheimer
Quest Small Cap
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 Small Cap Value Fund
<PAGE> 4
Louis Goldstein and
Timothy McCormack
Portfolio Managers
Q+A
An interview with your Fund's managers.
HOW HAS THE FUND PERFORMED OVER THE PAST SIX MONTHS?
The Fund has slightly lagged funds with a more growth-oriented small-cap stock
management style over the period, though on a pure performance basis, we've
done well. This Fund offers investors a relatively conservative approach to the
high volatility, yet high potential rewards of the small stock universe. We
manage the Fund according to a very disciplined, research-intensive strategy
that emphasizes uncovering value in the market.
During a market like the one we experienced over the past year, value
strategies tend to underperform because it's difficult to find stocks trading
at discounted prices. Over the long term, however, we believe a value approach
that emphasizes stock selection will help investors both take advantage of the
market's potential and reduce their exposure to risk.
WHAT CHARACTERISTICS DO YOUR LOOK FOR WHEN EVALUATING STOCKS?
When we talk about using a value approach to investing, it means focusing on
buying good companies, in good industries, with good managements, at a good
price. We try to buy companies that generate a lot of cash flow, have a high
return on investment, are focused on maximizing shareholder value, and pay very
close attention to the uses of their cash. We don't want to overpay because an
excellent company can be a bad investment if the price is too high.
WHAT INVESTMENTS MADE POSITIVE CONTRIBUTIONS TO PERFORMANCE OVER THE PERIOD?
Part of our research process is to target price values for the companies we
own, both on the up and downside. Our research intensive process gives us the
confidence to hold onto or even to buy more of a stock we believe in and on
occasion take advantage of price volatility. It also helps us to control risk.
One of the companies that served us well over the period is a good example of
how our price targeting works. We owned an independent power producer we felt
was a good opportunity, but its price performance had been lackluster for a
while. Since it hadn't hit our price targets and its fundamental strengths
hadn't changed, we continued to hold it. Our disciplined approach paid off
when it was subsequently acquired by another company at a price that was 50
percent higher than where it had been trading.(1)
DID ANY INVESTMENTS OR MARKET FACTORS HURT THE FUND OVER THE PERIOD?
While our stock selection was fairly strong overall, we were held back somewhat
by our holdings in real estate investment trusts. Though we continue to like
the business strategies and prospects for the "REITs" we own, all "REITs" were
out-of-favor with the market over the period, so ours suffered with the group.
WHAT IS YOUR OUTLOOK FOR THE FUND?
Our outlook is strongly positive. We believe our portfolio contains some very
good businesses out there and that over the long term, our value-oriented
approach offers great potential rewards. By focusing on inherent strengths of
individual companies we should continue to perform well, particularly if the
market becomes more volatile.-
(1) The Fund's portfolio is subject to change.
4 Oppenheimer Quest Small Cap Value Fund
<PAGE> 5
STATEMENT OF INVESTMENTS April 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT SEE NOTE 1
====================================================================================================================================
<S> <C> <C>
SHORT-TERM NOTES--15.5%
- ------------------------------------------------------------------------------------------------------------------------------------
AT&T Corp., 5.30%, 5/1/96 $ 950,000 $ 950,000
--------------------------------------------------------------------------------------------------------------------
CIT Group Holdings, Inc., 5.28%, 6/3/96 2,860,000 2,846,158
--------------------------------------------------------------------------------------------------------------------
CIT Group Holdings, Inc., 5.35%, 5/2/96 3,000,000 2,999,554
--------------------------------------------------------------------------------------------------------------------
Deere (John) Capital Corp., 5.30%, 5/23/96 1,000,000 996,761
--------------------------------------------------------------------------------------------------------------------
Deere (John) Capital Corp., 5.32%, 5/13/96 2,300,000 2,295,929
--------------------------------------------------------------------------------------------------------------------
Ford Motor Credit Co., 5.30%, 5/29/96 630,000 627,403
--------------------------------------------------------------------------------------------------------------------
Ford Motor Credit Co., 5.30%, 5/30/96 610,000 607,396
--------------------------------------------------------------------------------------------------------------------
Ford Motor Credit Co., 5.31%, 5/7/96 3,000,000 2,997,345
--------------------------------------------------------------------------------------------------------------------
Household Finance Corp., 5.30%, 6/26/96 1,000,000 991,755
--------------------------------------------------------------------------------------------------------------------
IBM Corp., 5.30%, 5/23/96 6,500,000 6,478,969
--------------------------------------------------------------------------------------------------------------------
Merrill Lynch & Co., Inc., 5.32%, 5/17/96 550,000 548,700
--------------------------------------------------------------------------------------------------------------------
Merrill Lynch & Co., Inc., 5.33%, 6/7/96 2,300,000 2,287,400
--------------------------------------------------------------------------------------------------------------------
Merrill Lynch & Co., Inc., 5.35%, 5/23/96 100,000 99,676
----------
Total Short-Term Notes (Cost $24,727,046) 24,727,046
====================================================================================================================================
NON-CONVERTIBLE CORPORATE BONDS AND NOTES--0.1%
- ------------------------------------------------------------------------------------------------------------------------------------
Collins Industries, Inc., 8.75% Nts., 1/11/00 (Cost $62,950) 62,950 56,402
====================================================================================================================================
CONVERTIBLE CORPORATE BONDS AND NOTES--0.9%
- ------------------------------------------------------------------------------------------------------------------------------------
Security Capital Realty, Inc., 12% Cv. Sub. Debs.
Interest Shares, 6/30/14(1) 61,019 61,019
--------------------------------------------------------------------------------------------------------------------
Security Capital Realty, Inc., 12% Cv. Sub. Debs., 6/30/14(1) 1,363,500 1,334,592
----------
Total Convertible Corporate Bonds and Notes (Cost $1,353,402) 1,395,611
</TABLE>
<TABLE>
<CAPTION>
SHARES
====================================================================================================================================
<S> <C> <C>
COMMON STOCKS--83.5%
- ------------------------------------------------------------------------------------------------------------------------------------
BASIC MATERIALS--4.4%
- ------------------------------------------------------------------------------------------------------------------------------------
CHEMICALS--0.7% McWhorter Technologies, Inc.(2) 21,400 385,200
--------------------------------------------------------------------------------------------------------------------
OM Group, Inc. 17,400 663,375
--------------------------------------------------------------------------------------------------------------------
Sybron Chemical Industries, Inc.(2) 10,000 128,750
----------
1,177,325
- ------------------------------------------------------------------------------------------------------------------------------------
METALS--0.6% Olympic Steel, Inc.(2) 70,000 997,500
- ------------------------------------------------------------------------------------------------------------------------------------
PAPER--3.1% Repap Enterprises, Inc.(2) 488,800 2,077,400
--------------------------------------------------------------------------------------------------------------------
Shorewood Packaging Corp.(2) 162,000 2,794,500
----------
4,871,900
- ------------------------------------------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS--19.4%
- ------------------------------------------------------------------------------------------------------------------------------------
AUTOS & HOUSING--9.9%
Borg-Warner Automotive, Inc. 20,100 766,312
--------------------------------------------------------------------------------------------------------------------
Cousins Properties, Inc. 161,800 3,074,200
--------------------------------------------------------------------------------------------------------------------
Masland Corp. 55,100 1,122,662
--------------------------------------------------------------------------------------------------------------------
Rival Manufacturing Co. 35,000 813,750
--------------------------------------------------------------------------------------------------------------------
Security Capital Industrial Trust 231,600 3,995,100
--------------------------------------------------------------------------------------------------------------------
Security Capital Pacific Trust 199,363 4,161,703
--------------------------------------------------------------------------------------------------------------------
Security Capital Realty, Inc.(1)(2) 1,800 1,842,894
----------
15,776,621
</TABLE>
5 Oppenheimer Quest Small Cap Value Fund
<PAGE> 6
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LEISURE & ENTERTAINMENT--1.1%
IHOP Corp.(2) 63,000 $1,795,500
- ------------------------------------------------------------------------------------------------------------------------------------
MEDIA--2.9% Katz Media Group, Inc.(2) 135,100 1,992,725
--------------------------------------------------------------------------------------------------------------------
Omnicom Group, Inc. 60,000 2,602,500
----------
4,595,225
- ------------------------------------------------------------------------------------------------------------------------------------
RETAIL: GENERAL--4.2%
Dyersburg Corp. 57,600 288,000
--------------------------------------------------------------------------------------------------------------------
Singer Co. NV (The) 106,000 2,742,750
--------------------------------------------------------------------------------------------------------------------
WestPoint Stevens, Inc.(2) 177,000 3,717,000
----------
6,747,750
- ------------------------------------------------------------------------------------------------------------------------------------
RETAIL: SPECIALTY--1.3%
Movado Group, Inc. 37,000 629,000
--------------------------------------------------------------------------------------------------------------------
Nu-Kote Holding, Inc., Cl. A(2) 86,000 1,515,750
----------
2,144,750
- ------------------------------------------------------------------------------------------------------------------------------------
CONSUMER NON-CYCLICALS--6.5%
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE/DRUGS--4.5%
Dentsply International, Inc. 51,900 2,166,825
--------------------------------------------------------------------------------------------------------------------
SpaceLabs Medical, Inc.(2) 176,300 3,922,675
--------------------------------------------------------------------------------------------------------------------
Sylvan, Inc.(2) 84,700 1,058,750
----------
7,148,250
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE/SUPPLIES &
SERVICES--2.0%
Magellan Health Services, Inc.(2) 147,600 3,173,400
- ------------------------------------------------------------------------------------------------------------------------------------
ENERGY--8.0%
- ------------------------------------------------------------------------------------------------------------------------------------
ENERGY SERVICES &
PRODUCERS--4.4%
Noble Drilling Corp.(2) 137,500 2,062,500
--------------------------------------------------------------------------------------------------------------------
Petroleum Heat & Power Co., Inc., Cl. A 165,000 1,134,375
--------------------------------------------------------------------------------------------------------------------
St. Mary Land & Exploration Co. 105,500 1,701,187
--------------------------------------------------------------------------------------------------------------------
UGI Corp. 96,000 2,148,000
----------
7,046,062
- ------------------------------------------------------------------------------------------------------------------------------------
OIL-INTEGRATED--3.6%
Belden & Blake Corp.(2) 84,000 1,701,000
--------------------------------------------------------------------------------------------------------------------
Global Natural Resources, Inc.(2) 150,000 2,175,000
--------------------------------------------------------------------------------------------------------------------
Triton Energy Corp.(2) 34,000 1,870,000
----------
5,746,000
- ------------------------------------------------------------------------------------------------------------------------------------
FINANCIAL--7.2%
- ------------------------------------------------------------------------------------------------------------------------------------
BANKS--0.5% First Financial Caribbean Corp. 36,000 774,000
- ------------------------------------------------------------------------------------------------------------------------------------
INSURANCE--6.7% ACE Ltd. 66,500 2,926,000
--------------------------------------------------------------------------------------------------------------------
Capitol American Financial Corp. 47,700 1,150,762
--------------------------------------------------------------------------------------------------------------------
Capsure Holdings Corp.(2) 77,800 1,371,225
--------------------------------------------------------------------------------------------------------------------
Delphi Financial Group, Inc., Cl. A(2) 23,800 654,500
--------------------------------------------------------------------------------------------------------------------
E.W. Blanch Holdings, Inc. 119,400 2,462,625
--------------------------------------------------------------------------------------------------------------------
Prudential Reinsurance Holdings, Inc. 89,200 2,029,300
----------
10,594,412
</TABLE>
6 Oppenheimer Quest Small Cap Value Fund
<PAGE> 7
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL--22.2%
- ------------------------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--5.5%
Oak Industries, Inc.(2) 324,800 $8,769,600
- ------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL MATERIALS--3.7%
Interpool, Inc. 101,700 1,830,600
--------------------------------------------------------------------------------------------------------------------
Martin Marietta Materials, Inc. 177,000 4,048,875
----------
5,879,475
- ------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL SERVICES--3.8%
Briggs & Stratton Corp. 60,000 2,722,500
--------------------------------------------------------------------------------------------------------------------
International Imaging Materials, Inc.(2) 87,600 1,664,400
--------------------------------------------------------------------------------------------------------------------
Maxim Group, Inc.(2) 46,000 540,500
--------------------------------------------------------------------------------------------------------------------
McGrath Rentcorp 56,300 1,147,113
----------
6,074,513
- ------------------------------------------------------------------------------------------------------------------------------------
MANUFACTURING--9.1%
Baldwin Technology Co., Inc., Cl. A(2) 116,900 431,069
--------------------------------------------------------------------------------------------------------------------
Carlisle Cos., Inc. 91,600 4,259,400
--------------------------------------------------------------------------------------------------------------------
Crane Co. 132,000 5,478,000
--------------------------------------------------------------------------------------------------------------------
Culp, Inc. 58,500 753,188
--------------------------------------------------------------------------------------------------------------------
Harmon Industries, Inc. 63,200 1,027,000
--------------------------------------------------------------------------------------------------------------------
United Dominion Industries Ltd. 104,400 2,505,600
----------
14,454,257
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION--0.1%
MTL, Inc.(2) 11,000 182,875
- ------------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY--15.1%
- ------------------------------------------------------------------------------------------------------------------------------------
COMPUTER SOFTWARE--4.1%
- ------------------------------------------------------------------------------------------------------------------------------------
BancTec, Inc.(2) 218,900 4,460,088
--------------------------------------------------------------------------------------------------------------------
Exabyte Corp.(2) 114,000 1,995,000
----------
6,455,088
- ------------------------------------------------------------------------------------------------------------------------------------
ELECTRONICS--9.9%
Arrow Electronics, Inc.(2) 42,100 2,110,263
--------------------------------------------------------------------------------------------------------------------
EG&G, Inc. 292,700 6,439,400
--------------------------------------------------------------------------------------------------------------------
Exar Corp.(2) 80,000 1,320,000
--------------------------------------------------------------------------------------------------------------------
Marshall Industries(2) 161,200 5,138,250
--------------------------------------------------------------------------------------------------------------------
Unitrode Corp.(2) 26,200 704,125
----------
15,712,038
</TABLE>
7 Oppenheimer Quest Small Cap Value Fund
<PAGE> 8
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
TELECOMMUNICATIONS-
TECHNOLOGY--1.1%
ECI Telecommunications Ltd. 70,000 $ 1,828,750
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES--0.7%
- ------------------------------------------------------------------------------------------------------------------------------------
GAS UTILITIES--0.7%
Aquila Gas Pipeline Corp. 76,600 1,062,825
------------
Total Common Stocks (Cost $111,591,864) 133,008,116
</TABLE>
<TABLE>
<CAPTION>
DATE STRIKE CONTRACTS
====================================================================================================================================
<S> <C> <C> <C> <C>
PUT OPTION PURCHASED--0.0%
- -----------------------------------------------------------------------------------------------------------------------------------
Triton Energy Corp., Put Opt. (Cost $93,687) Aug. 96 $50 340 46,750
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $137,828,949) 100.0% 159,233,925
- -----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS (0.0) (1,462)
----- -------------
NET ASSETS 100.0% $ 159,232,463
===== =============
</TABLE>
(1.) Identifies issues considered to be illiquid--See Note 5 of
Notes to Financial Statements
(2.) Non-income producing security.
See accompanying Notes to Financial Statements.
8 Oppenheimer Quest Small Cap Value Fund
<PAGE> 9
STATEMENT OF ASSETS AND LIABILITIES April 30, 1996 (Unaudited)
<TABLE>
====================================================================================================================================
<S> <C>
ASSETS Investments, at value (cost $137,828,949)--see accompanying statement $159,233,925
--------------------------------------------------------------------------------------------------------------------
Cash 242,299
--------------------------------------------------------------------------------------------------------------------
Receivables:
Shares of beneficial interest sold 1,569,090
Investments sold 206,590
Interest and dividends 107,823
--------------------------------------------------------------------------------------------------------------------
Other 8,285
------------
Total assets 161,368,012
====================================================================================================================================
LIABILITIES Payables and other liabilities:
Shares of beneficial interest redeemed 1,417,311
Investments purchased 643,926
Distribution and service plan fees 31,323
Dividends 2,337
Other 40,652
------------
Total liabilities 2,135,549
====================================================================================================================================
NET ASSETS $159,232,463
============
====================================================================================================================================
COMPOSITION OF Par value of shares of beneficial interest $ 86,446
NET ASSETS --------------------------------------------------------------------------------------------------------------------
Additional paid-in capital 131,676,143
--------------------------------------------------------------------------------------------------------------------
Undistributed net investment income 212,380
--------------------------------------------------------------------------------------------------------------------
Accumulated net realized gain on investment transactions 5,852,518
--------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments--Note 3 21,404,976
------------
Net assets $159,232,463
============
====================================================================================================================================
NET ASSET VALUE
PER SHARE
Class A Shares:
Net asset value and redemption price per share (based on net assets of $120,786,619
and 6,540,232 shares of beneficial interest outstanding) $18.47
Maximum offering price per share (net asset value plus sales charge of 5.75% of offering price) $19.60
--------------------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price and offering price per share (based on net assets
of $26,190,991 and 1,432,853 shares of beneficial interest outstanding) $18.28
--------------------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price and offering price per share (based on net assets
of $12,254,853 and 671,527 shares of beneficial interest outstanding) $18.25
</TABLE>
See accompanying Notes to Financial Statements
9 Oppenheimer Quest Small Cap Value Fund
<PAGE> 10
STATEMENT OF OPERATIONS
For the Six Months Ended April 30, 1996 (Unaudited)
<TABLE>
====================================================================================================================================
<S> <C>
INVESTMENT INCOME
Dividends $ 966,114
Interest 721,492
------------
Total income 1,687,606
====================================================================================================================================
EXPENSES
Management fees--Note 4 756,654
--------------------------------------------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 292,046
Class B 121,071
Class C 48,860
--------------------------------------------------------------------------------------------------------------------
Transfer agent and accounting service fees--Note 4 145,502
--------------------------------------------------------------------------------------------------------------------
Legal and auditing fees 22,415
--------------------------------------------------------------------------------------------------------------------
Registration and filing fees:
Class A 17,759
Class C 891
--------------------------------------------------------------------------------------------------------------------
Custodian fees and expenses 18,000
--------------------------------------------------------------------------------------------------------------------
Shareholder reports 17,889
--------------------------------------------------------------------------------------------------------------------
Trustees' fees and expenses 7,611
--------------------------------------------------------------------------------------------------------------------
Other 11,244
------------
Total expenses 1,459,942
====================================================================================================================================
NET INVESTMENT INCOME 227,664
====================================================================================================================================
REALIZED AND
UNREALIZED GAIN
Net realized gain on investments 6,489,695
--------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments 12,817,635
------------
Net realized and unrealized gain 19,307,330
====================================================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 19,534,994
============
</TABLE>
See accompanying Notes to Financial Statements
10 Oppenheimer Quest Small Cap 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 $ 227,664 $ 818,568
--------------------------------------------------------------------------------------------------------------------
Net realized gain 6,489,695 8,543,743
--------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation 12,817,635 3,040,965
------------ -------------
Net increase in net assets resulting from operations 19,534,994 12,403,276
====================================================================================================================================
DIVIDENDS AND
DISTRIBUTIONS TO
SHAREHOLDERS
Dividends from net investment income:
Class A (758,970) --
Class B (44,361) --
Class C (29,083) --
--------------------------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (6,609,655) (3,010,761)
Class B (1,335,390) (434,007)
Class C (506,878) (91,772)
====================================================================================================================================
BENEFICIAL INTEREST
TRANSACTIONS
Net increase (decrease) in net assets resulting from beneficial interest
transactions--Note 2:
Class A (3,360,593) (11,016,993)
Class B 1,061,369 6,073,460
Class C 2,466,032 5,301,995
====================================================================================================================================
NET ASSETS Total increase 10,417,465 9,225,198
--------------------------------------------------------------------------------------------------------------------
Beginning of period 148,814,998 139,589,800
------------ ------------
End of period (including undistributed net investment
income of $212,380 and $817,130, respectively) $159,232,463 $148,814,998
============ ============
</TABLE>
See accompanying Notes to Financial Statements
11 Oppenheimer Quest Small Cap Value Fund
<PAGE> 12
Financial Highlights
<TABLE>
<CAPTION>
CLASS A
----------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR
APRIL 30, ENDED
1996 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 17.31 $ 16.33 $ 17.68 $ 14.60 $ 13.52 $ 8.80
- --------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .02 .11(3) (.03)(3) (.04)(3) --(3) (.05)(3)
Net realized and unrealized gain 2.24 1.29 .01 4.26 1.50 4.85
-------- -------- --------- --------- ------- ---------
Total income (loss) from
investment operations 2.26 1.40 (.02) 4.22 1.50 4.80
- --------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.11) -- -- -- -- (.08)
Distributions from net realized gain (.99) (.42) (1.33) (1.14) (.42) --
-------- -------- --------- --------- ------- ---------
Total dividends and distributions
to shareholders (1.10) (.42) (1.33) (1.14) (.42) (.08)
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 18.47 $ 17.31 $ 16.33 $ 17.68 $ 14.60 $ 13.52
======== ======== ========= ========= ======= =========
================================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(4) 13.72% 8.82% 0.04% 30.21% 11.60% 55.01%
================================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $120,787 $116,307 $ 120,102 $ 104,898 $39,693 $ 20,686
- --------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $117,864 $119,440 $ 115,276 $ 75,500 $32,551 $ 6,894
- --------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) 0.39%(5) 0.67% (0.14)% (0.36)% (0.04) (0.41)%(6)
Expenses 1.80%(5) 1.80% 1.88% 1.89% 2.11% 2.25%(6)
- --------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(7) 29.1% 76.0% 67.0% 74.0% 95.0% 103.0%
Average brokerage
commission rate(8) $ 0.0479 -- -- -- -- --
</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 Small Cap Value Fund
<PAGE> 13
<TABLE>
<CAPTION>
CLASS B
----------------------------------------------------------------------------
SIX MONTHS
ENDED
APRIL 30, 1996 YEAR ENDED OCTOBER 31,
(UNAUDITED) 1995 1994 1993(1)
=====================================================================================================================
<S> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $ 17.11 $ 16.24 $ 17.66 $ 17.19(2)
- ----------------------------------------------------------------------------------------------------------------------
Income (loss) from
investment operations:
Net investment income (loss) .05 .02(3) (.11)(3) (.02)(3)
Net realized and unrealized gain 2.15 1.27 .02 .49
------- ------- --------- ---------
Total income (loss) from
investment operations 2.20 1.29 (.09) .47
- ----------------------------------------------------------------------------------------------------------------------
Dividends and distributions
to shareholders:
Dividends from net investment income (.04) -- -- --
Distributions from net realized gain (.99) (.42) (1.33) --
------- ------- --------- ---------
Total dividends and distributions
to shareholders (1.03) (.42) (1.33) --
- ----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 18.28 $ 17.11 $ 16.24 $ 17.66
======= ======= ========= =========
======================================================================================================================
TOTAL RETURN, AT
NET ASSET VALUE(4) 13.40% 8.17% (0.39)% 2.73%
======================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $26,191 $23,440 $ 16,144 $ 1,754
- ----------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $24,351 $20,105 $ 9,401 $ 934
- ----------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) (0.06)(5) 0.09% (0.70)% (1.15)%(5)
Expenses 2.29%(5) 2.37% 2.48% 2.57%(5)
- ----------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(7) 29.1% 76.0% 67.0% 74.0%
Average brokerage
commission rate(8) $0.0479 -- -- --
</TABLE>
<TABLE>
<CAPTION>
CLASS C
----------------------------------------------------------------------------
SIX MONTHS
ENDED
APRIL 30, 1996 YEAR ENDED OCTOBER 31,
(UNAUDITED) 1995 1994 1993(1)
====================================================================================================================
<S> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $ 17.11 $ 16.23 $ 17.67 $17.19(2)
- --------------------------------------------------------------------------------------------------------------------
Income (loss) from
investment operations:
Net investment income (loss) .05 .01(3) (.13)(3) (.02)(3)
Net realized and unrealized gain 2.14 1.29 .02 .50
------- ------- --------- ------
Total income (loss) from
investment operations 2.19 1.30 (.11) .48
- --------------------------------------------------------------------------------------------------------------------
Dividends and distributions
to shareholders:
Dividends from net investment income (.06) -- -- --
Distributions from net realized gain (.99) (.42) (1.33) --
------- ------- --------- ------
Total dividends and distributions
to shareholders (1.05) (.42) (1.33) --
- --------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 18.25 $ 17.11 $ 16.23 $17.67
======= ======= ========= ======
====================================================================================================================
TOTAL RETURN, AT
NET ASSET VALUE(4) 13.38% 8.24% (0.51)% 2.79%
====================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in thousands) $12,255 $ 9,068 $ 3,344 $ 235
- --------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 9,809 $ 6,114 $ 1,381 $ 138
- --------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) 0.14%(5) 0.08% (0.81)% (1.20)%(5)
Expenses 2.63%(5) 2.38% 2.59% 2.57%(5)
- --------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(7) 29.1% 76.0% 67.0% 74.0%
Average brokerage
commission rate(8) $0.0479 -- -- --
</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 ratios of net investment income (loss) to
average net assets and ratios of expenses to average net assets would have been
(1.43)% and 3.27%, 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 $38,465,495 and $51,154,446,
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 Small Cap Value Fund
<PAGE> 14
NOTES TO FINANCIAL STATEMENTS (Unaudited)
================================================================================
1. SIGNIFICANT
ACCOUNTING POLICIES Oppenheimer Quest Small Cap Value Fund (the Fund),
formerly named Quest for Value Small Capitalization
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 capital appreciation through investments in a
diversified portfolio which under normal conditions
will have at least 65% of its assets invested in
equity securities of companies with market
capitalizations under $1 billion. 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 Small Cap Value Fund
<PAGE> 15
================================================================================
2. SHARES OF The Fund has authorized an unlimited number of $.01 par
BENEFICIAL INTEREST 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 985,614 $ 18,204,852 2,307,655 $ 38,194,245
Dividends and distributions reinvested 420,196 7,076,100 181,647 2,840,961
Redeemed (1,582,995) (28,641,545) (3,125,095) (52,052,199)
---------- ------------ ---------- ------------
Net decrease (177,185) $ (3,360,593) (635,793) $(11,016,993)
========== ============ ========== ============
- -----------------------------------------------------------------------------------------------------------------------------------
Class B:
Sold 191,455 $ 3,488,851 620,242 $ 10,160,304
Dividends and distributions reinvested 78,794 1,315,677 26,272 408,265
Redeemed (207,008) (3,743,159) (271,244) (4,495,109)
---------- ------------ ---------- ------------
Net increase 63,241 $ 1,061,369 375,270 $ 6,073,460
========== ============ ========== ============
- -----------------------------------------------------------------------------------------------------------------------------------
Class C:
Sold 197,277 $ 3,536,990 389,503 $ 6,393,572
Dividends and distributions reinvested 31,100 518,457 5,721 88,907
Redeemed (86,796) (1,589,415) (71,284) (1,180,484)
---------- ------------ ---------- ------------
Net increase 141,581 $ 2,466,032 323,940 $ 5,301,995
========== ============ ========== ============
</TABLE>
================================================================================
3. UNREALIZED GAINS AND At April 30, 1996, net unrealized appreciation on
LOSSES ON INVESTMENTS investments of $21,404,976 was composed of gross
appreciation of $23,392,509, and gross depreciation
of $1,987,533.
================================================================================
4. Management Fees Management fees paid to the Manager were in
And Other Transactions accordance with the investment advisory agreement
With Affiliates 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 $265,640 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 $121,344, of which
$27,320 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 $110,793 and
$31,018, respectively.
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
0.25% 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,
15 Oppenheimer Quest Small Cap Value Fund
<PAGE> 16
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
================================================================================
4. MANAGEMENT FEES banks and other financial institutions quarterly for
AND OTHER providing personal service and maintenance of accounts
TRANSACTIONS of their customers that hold Class A shares. OFDI
WITH AFFILIATES retains the balance of the asset-based sales charge to
(CONTINUED) reimburse itself for its other expenditures under the
Plan. During the six months ended April 30, 1996,
OFDI retained $72,568 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 $88,600 and $27,760, 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 $33,744 for Class B and
$23,761 for Class C.
================================================================================
5. RESTRICTED SECURITIES At April 30, 1996, investments in securities included
issues that are illiquid or restricted. The securities
are often purchased in private placement transactions,
are not registered under the Securities Act of 1933,
may have contractual restrictions on resale, and are
valued under methods approved by the Board of Trustees
as reflecting fair value. The Fund intends to invest
no more than 10% of its net assets (determined at the
time of purchase) in illiquid and restricted
securities. The aggregate value of these securities
subject to this limitation at April 30, 1996 was
$3,238,505 which represents 2.03% of the Fund's net
assets. Information concerning these securities is as
follows:
<TABLE>
<CAPTION>
VALUATION
PER UNIT
COST AS OF APRIL
SECURITY ACQUISITION DATE PER UNIT 30, 1996
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Security Capital Realty, Inc. 7/29/93--1/19/94 $683.92 $1,023.83
-----------------------------------------------------------------------------------------------------------
Security Capital Realty, Inc., 12% Cv. Sub. Debs.
Interest Shares, 6/30/14 10/1/95--12/31/95 $100.00 $ 100.00
-----------------------------------------------------------------------------------------------------------
Security Capital Realty, Inc., 12% Cv. Sub. Debs.,
6/30/14 7/1/94 $ 94.26 $ 97.88
</TABLE>
Pursuant to guidelines adopted by the Board of
Trustees, certain unregistered securities are
determined to be liquid and are not included within
the 10% limitation above.
================================================================================
6. 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 4,658,829.466 111,439.689 156,123.726 4,926,392.881
Proposal No. 2 4,651,281.588 119,702.963 155,408.330 4,926,392.881
Proposal No. 3
Class A 3,525,051.323 91,729.368 163,220.320 3,780,001.011
Class B 836,365.823 13,540.320 24,494.128 874,400.271
Class C 259,640.709 5,665.760 6,685.131 271,991.600
</TABLE>
16 Oppenheimer Quest Small Cap Value Fund
<PAGE> 17
OPPENHEIMER QUEST SMALL CAP 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
Jenny Beth Jones, Vice President
Louis Goldstein, Vice President
Timothy McCormack, 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 OppenheimerFunds Services
SERVICING AGENT
================================================================================
CUSTODIAN OF State Street Bank and Trust Company
PORTFOLIO SECURITIES
================================================================================
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 Small Cap Value Fund. This
report must be preceded or accompanied by a
Prospectus of Oppenheimer Quest Small Cap 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 Small Cap 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.
<TABLE>
===================================================================================================================================
<S> <C> <C>
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
Global 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 Rochester Division
Intermediate Tax-Exempt Fund Limited-Term N.Y. Municipal Fund
New Jersey Tax-Exempt Fund(2) Rochester Fund Municipals
New York Tax-Exempt Fund(2)
===================================================================================================================================
MONEY MARKET FUNDS Cash Reserves Money Market Fund
===================================================================================================================================
LIFESPAN Balanced Fund Income Fund
Growth Fund
</TABLE>
(1) Exchange privileges are subject to change or
termination. Shares may be exchanged only for shares
of the same class of eligible funds.
(2) 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 Small Cap Value Fund
<PAGE> 19
INFORMATION
GENERAL INFORMATION
Monday-Friday 8:30 a.m.-9 p.m. ET
Saturday 10 a.m.-2 p.m. ET
1-800-525-7048
TELEPHONE TRANSACTIONS
Monday-Friday 8:30 a.m.-8 p.m. ET
1-800-852-8457
PHONELINK
24 hours a day, automated
information and transactions
1-800-533-3310
TELECOMMUNICATIONS DEVICE
FOR THE DEAF (TDD)
Monday-Friday 8:30 a.m.-8 p.m. ET
1-800-843-4461
OPPENHEIMERFUNDS
INFORMATION HOTLINE
24 hours a day, timely and insightful
messages on the economy and
issues that affect your investments
1-800-835-3104
RS0251.001.0496 June 30, 1996
[PHOTO]
Jennifer Leonard, Customer Service Representative
OppenheimerFunds Service
"How may I help you?"
As an Oppenheimer fund shareholder, you have some special privileges. Whether
it's automatic investment plans, informative newsletters and hotlines, or ready
account access, you can benefit from services designed to make investing
simple.
And when you need help, our Customer Service Representatives are only
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and handle administrative requests. You can reach them at our General
Information number.
When you want to make a transaction, you can do it easily
by calling our toll-free Telephone Transactions number. And, by enrolling in
AccountLink, a convenient service that "links" your Oppenheimer funds accounts
and your bank checking or savings account, you can use the Telephone
Transactions number to make investments.
For added convenience, you can get automated information with
OppenheimerFunds PhoneLink service, available 24 hours a day, 7 days a week.
PhoneLink gives you access to a variety of fund, account, and market
information. Of course, you can always speak with a Customer Service
Representative during the General Information hours shown at the left.
You can count on us whenever you need assistance. That's why the
International Customer Service Association, an independent, nonprofit
organization made up of over 3,200 customer service management professionals
from around the country, honored the Oppenheimer funds' transfer agent,
OppenheimerFunds Services, with their Award of Excellence in 1993.
So call us today--we're here to help.
- --------------------------------------------------------------------------------
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P.O. Box 5270
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