[COVER]
Oppenheimer Quest Opportunity Value Fund
Annual Report October 31, 1996
[PHOTO] Family at Farm
"We have
a lot of
IMPORTANT
goals, so we
need our
investment
to GROW
over time."
[LOGO]OPPENHEIMERFUNDS/R/
<PAGE>
This Fund is for people who want the OPPORTUNITY
to pursue GROWTH over time for their long-term needs.
- ----
NEWS
- ----------------
BEAT THE AVERAGE
- ----------------
Cumulative Total Return for the
5-Year Period Ended 9/30/96:
Oppenheimer Quest
Opportunity Value Fund
Class A (at net asset value)(1)
- -------
137.06%
- -------
Lipper Flexible Portfolio Average
for 45 Flexible Portfolio Funds for
the 5-Year Period Ended 9/30/96(3)
- ------
71.56%
- ------
The Fund's Class A shares
are ranked ***** among 1,684 (3-year)
and 1,014 (5-year) equity
funds as of 9/30/96 by
MORNINGSTAR MUTUAL FUNDS.(4)
- ------------------------
HOW YOUR FUND IS MANAGED
- ------------------------
Oppenheimer Quest Opportunity Value Fund invests in stocks offering long-term
growth potential, along with a mix of bonds and money market instruments. The
Fund is structured to seek growth of capital using a value discipline.
- -----------
PERFORMANCE
- -----------
Total returns for the 12 months ended 9/30/96 for Class A, B and C shares were
18.93%, 18.30% and 18.35%, respectively, without deducting sales charges.(1)
Your Fund's average annual total returns for Class A shares for the 1- and
5-year periods ended 9/30/96 and since inception on 1/3/89 were 12.10%, 17.44%
and 17.09%, respectively. For Class B shares, average annual total returns for
the 1-year period ended 9/30/96 and since inception on 9/1/93 were 13.30% and
17.55%, respectively. For Class C shares, average annual total returns for the
1-year period ended 9/30/96 and since inception on 9/1/93 were 17.35% and
17.98%, respectively.(2)
- -------
OUTLOOK
- -------
"We are cautious, yet optimistic about the stock market in the near term.
Although stock valuations are at high levels right now, we are still able to
find good values at reasonable prices."
Richard Glasebrook, Portfolio Manager
October 31,1996
Total returns include change in share price and reinvestment of dividends and
capital gains distributions in a hypothetical investment for the periods shown.
IN REVIEWING PERFORMANCE AND RANKINGS, PLEASE REMEMBER THAT PAST PERFORMANCE
DOES NOT GUARANTEE FUTURE RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. The Fund's
sub-adviser is OpCap Advisors (formerly Quest for Value Advisors, the Fund's
adviser until 11/22/95).
1. Includes change in net asset value per share without deducting any sales
charges. Such performance is not annualized and would have been lower if sales
charges were taken into account.
2. Class A returns include 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 results
would have been greater. Class B returns include the applicable contingent
deferred sales charge of 5% (1-year) and 3% (since inception). Class C returns
include the 1% contingent deferred sales charge for the 1-year result. An
explanation of the different total returns is in the Fund's prospectus. Class B
and C shares are subject to an annual .75% asset-based sales charge and Class A
shares are subject to an annual .25% asset-based sales charge.
3. Source: Lipper Analytical Services, 9/30/96. The Lipper average is shown for
comparative purposes only. Funds included in the index may have different
investment policies and risks than the Fund. Oppenheimer Quest Opportunity Value
Fund is characterized by Lipper as a flexible portfolio fund. Lipper performance
is based on total return and does not take sales charges into account.
4. Source: Morningstar Mutual Funds, 9/30/96. Morningstar rankings are based on
risk-adjusted investment return, after considering sales charges and expenses.
Investment return measures a fund's (or class's) 1-, 3-, 5- and 10-year
(depending on the inception of the class or fund) average annual total returns
in excess of 90-day U.S. Treasury bill returns. Risk measures the
underperformance of U.S. Treasury bill returns in those periods. Risk and
returns are combined to produce star rankings, reflecting performance relative
to the average fund in a fund's category. The top 10% of funds in each
investments class receive 5 stars; the next 22.5%, 4 stars; the middle 35%, 3
stars; the next 22.5%, 2 stars; and the bottom 10%, 1 star. The 5-star current
ranking is a weighted average of the 3- and 5-year rankings for the Fund's Class
A shares, which were 5 and 5 stars, weighted 40% and 60%, respectively. The
1-year star ranking is 3 stars, but is not included in Morningstar's overall
ranking calculations. There were 1,684 funds in the 1-year period. Rankings are
subject to change monthly. The Fund's Class A, B and C shares have the same
investment portfolio but different expenses.
2 Oppenheimer Quest Opportunity Value Fund
<PAGE>
[PHOTO]Bridget A. Macaskill
Bridget A. Macaskill
President
Oppenheimer
Quest Opportunity
Value Fund
DEAR SHAREHOLDER,
Following a summer of uncertainty surrounding the economy and the stock
market, the arrival of fall brought renewed vigor to both. Most notable, the Dow
Jones Industrial Average broke out of its fluctuating pattern and burst through
the once-unimaginable 6,000 mark, sending many stock prices to all-time highs.
But as the Dow began accelerating faster than the economy, a debate erupted
about how long this bull run could last.
Looking back, the autumn rally was clearly a result of three main
factors: solid corporate profits, low inflation and stabilized interest rates,
all of which attracted investors to Wall Street. And though the stock market is
currently highly valued, there continue to be a number of positive economic
influences that may extend the market's uphill run.
We consider the leading catalyst to be the robust returns from corporate
America, where a strong economy boosted third-quarter earnings. To date, we're
still witnessing a cycle of events that could maintain the appeal of these
companies to investors. For example, corporate streamlining efforts, such as
spinoffs of non-core businesses, and consolidation within industries are helping
to increase the cash flow of many firms. In return, additional cash flows enable
these companies to add shareholder value by initiating stock repurchasing
programs. As corporations buy back record amounts of their own stocks, they are
reducing the supply and thereby raising the book value of their outstanding
shares, a move which further contributes to higher stock prices.
Additionally, the demand for stocks remains strong, largely because, as
many experts believe, investors are taking more responsibility for their
retirement investments. Indeed, as the country's baby boomers near retirement,
they are becoming increasingly aware of the need to secure their own financial
future, because they expect less and less from standard company pensions or
Social Security. As a result, equity mutual funds have become the fastest
growing means by which these investors are seeking to achieve their long-term
goals.
While these signs appear favorable for many well-managed companies,
stock valuations remain at historically high levels, causing us to become more
cautious about the market overall. We do not, however, expect to see a
significant market decline. In fact, we are confident that as long as corporate
earnings stay healthy, there will continue to be numerous investment
opportunities available to fill the demand for stocks. Nevertheless, it is
becoming more difficult to uncover true values and justify higher prices.
Therefore, we believe the correct approach to take at this point is to carefully
evaluate companies based on individual merits, such as strong management,
fundamental business policies and long-term prospects for the future.
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
November 21, 1996
3 Oppenheimer Quest Opportunity Value Fund
<PAGE>
RICHARD GLASEBROOK
Portfolio Manager
Q + A
An interview with your Fund's managers.
HOW HAS THE FUND PERFORMED OVER THE PAST FISCAL YEAR?
The Fund performed well, even throughout the uncertainty that punctuated this
summer's stock and bond markets. By the end of the fiscal period the markets
were looking up, particularly the stock market, which went on to set one record
high after another. As a result of both rebounding markets and careful stock
analysis, Oppenheimer Quest Opportunity Value Fund finished 12th out of 178
flexible portfolio funds ranked by Lipper Analytical Services for the 1-year
period ended 9/30/96.(1)
WHAT CHARACTERISTICS DO YOU LOOK FOR WHEN EVALUATING STOCKS FOR THE PORTFOLIO?
Our investment philosophy centers on choosing individual stocks of companies
that are currently undervalued in the stock market, yet have the potential for
superior performance. The criteria we primarily look for include a combination
of sound business policies, above-average investment returns, sustainable or
improving profits and management teams that focus on benefiting shareholders.
WHAT INVESTMENTS MADE POSITIVE CONTRIBUTIONS TO PERFORMANCE THIS PERIOD?
The financial stocks in the portfolio continued to enhance the Fund's
performance, largely due to the modest decline in interest rates and the
public's mistaken belief that declining interest rates are good for the stock
market. The fundamentals of the financials we own are not dependent on changes
in interest rates; rather they owe their economic success to the franchise
nature of their businesses.
Our investments in individual aerospace companies also did particularly
well. Most notable was a profitable aircraft producer, which appears to have
some excellent prospects for the near future because of its expanding commercial
aircraft business. In turn, we expect the firm to report record earnings next
year in this revitalized area. And, though some analysts regard these stocks as
fully valued, we expect that they will benefitthe Fund for some time.(2)
DID ANY INVESTMENTS OR MARKET FACTORS WORK AGAINST THE FUND THIS PERIOD?
We do own stock in a major railroad that did not perform particularly well
over the last six months. This disappointment resulted from the company's effort
to refocus its energy and resources on its main business. Most often, these
endeavors eventually succeed in increasing the value of a business's stock.
WHAT IS YOUR OUTLOOK FOR THE FUND?
We are cautious, yet optimistic about the stock market in the near term.
Although stock valuations are at high levels right now, we are still able to
find good values at le reasonabprices. Our investment strategy entails carefully
evaluating companies based on heir tindividual merits, rather than tailoring a
portfolio whose success is contingent on the health of the economy. Therefore,
we are confident that the Fund will continue to surpass the performance of its
peers over the long term.//
1. Source: Lipper Analytical Services, 9/30/96. Oppenheimer Quest Opportunity
Value Fund was ranked 1st out of 45 funds in its category for the 5-year period
ended 9/30/96. Oppenheimer Quest Opportunity Value Fund is characterized by
Lipper as a flexible portfolio fund. Lipper performance is based on total
return and does not take sales charges into account.
2. The Fund's portfolio is subject to change.
4 Oppenheimer Quest Opportunity Value Fund
<PAGE>
FINANCIALS
========
Contents
STATEMENT OF INVESTMENTS 6
STATEMENT OF ASSETS & LIABILITIES 9
STATEMENT OF OPERATIONS 10
STATEMENTS OF CHANGES IN NET ASSETS 11
FINANCIAL HIGHLIGHTS 12
NOTES TO FINANCIAL STATEMENTS 14
REPORT OF INDEPENDENT ACCOUNTANTS 17
FEDERAL INCOME TAX INFORMATION 18
5 Oppenheimer Quest Opportunity Value Fund
<PAGE>
<TABLE>
<CAPTION>
=========================================
STATEMENT OF INVESTMENTS October 31, 1996
FACE MARKET VALUE
AMOUNT SEE NOTE 1
===================================================================================================================================
SHORT-TERM NOTES - 18.2%
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Corporate Asset Funding Co., Inc., 5.35%, 11/21/96 (3) $22,400,000 $ 22,333,422
------------------------------------------------------------------------------------------------------------------------
Deere (John) Capital Corp., 5.25%, 12/3/96 (3) 46,991,000 46,771,708
------------------------------------------------------------------------------------------------------------------------
Deere (John) Capital Corp., 5.27%, 11/4/96 (3) 21,732,000 21,722,456
------------------------------------------------------------------------------------------------------------------------
Ford Motor Credit Co., 5.25%, 11/4/96 (3) 49,762,000 49,740,403
------------------------------------------------------------------------------------------------------------------------
General Electric Capital Corp., 5.40%, 11/12/96 (3) 32,156,000 32,104,515
------------------------------------------------------------------------------------------------------------------------
Goldman Sachs & Co., 5.26%, 11/18/96 (3) 10,920,000 10,892,876
------------------------------------------------------------------------------------------------------------------------
Household Finance Corp., 5.25%, 11/26/96 (3) 39,673,000 39,528,359
------------------------------------------------------------------------------------------------------------------------
IBM Credit Corp., 5.23%, 11/21/96 (3) 61,665,000 61,485,681
------------------------------------------------------------------------------------------------------------------------
Merrill Lynch & Co., Inc., 5.30%, 11/7/96 (3) 43,262,000 43,223,833
---------------
Total Short-Term Notes (Cost $327,803,253) 327,803,253
===================================================================================================================================
U.S. GOVERNMENT OBLIGATIONS - 0.2%
- -----------------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Nts.:
7.50%, 11/15/01-5/15/02 2,000,000 2,122,382
7.875%, 4/15/98-8/15/01 1,100,000 1,156,912
---------------
Total U.S. Government Obligations (Cost $3,160,479) 3,279,294
SHARES
===================================================================================================================================
COMMON STOCKS - 80.9%
- -----------------------------------------------------------------------------------------------------------------------------------
BASIC MATERIALS - 9.2%
- -----------------------------------------------------------------------------------------------------------------------------------
CHEMICALS - 5.0%
------------------------------------------------------------------------------------------------------------------------
Du Pont (E.I.) De Nemours & Co. 800,000 74,200,000
------------------------------------------------------------------------------------------------------------------------
Hercules, Inc. 90,000 4,286,250
------------------------------------------------------------------------------------------------------------------------
Monsanto Co. 275,000 10,896,875
---------------
89,383,125
- -----------------------------------------------------------------------------------------------------------------------------------
METALS - 2.5%
------------------------------------------------------------------------------------------------------------------------
Freeport-McMoRan Copper & Gold, Inc., Cl. B 1,500,000 45,562,500
- -----------------------------------------------------------------------------------------------------------------------------------
PAPER - 1.7%
------------------------------------------------------------------------------------------------------------------------
Champion International Corp. 700,000 30,450,000
- -----------------------------------------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS - 11.1%
- -----------------------------------------------------------------------------------------------------------------------------------
LEISURE & ENTERTAINMENT - 7.0%
------------------------------------------------------------------------------------------------------------------------
AMR Corp. (1) 350,000 29,400,000
------------------------------------------------------------------------------------------------------------------------
Harrah's Entertainment, Inc. (1) 700,000 11,725,000
------------------------------------------------------------------------------------------------------------------------
Mattel, Inc. 1,943,000 56,104,125
------------------------------------------------------------------------------------------------------------------------
McDonald's Corp. 650,000 28,843,750
---------------
126,072,875
- -----------------------------------------------------------------------------------------------------------------------------------
MEDIA - 1.9%
------------------------------------------------------------------------------------------------------------------------
Tele-Communications, Inc. (New), TCI Group, Series A (1) 2,800,000 34,825,000
</TABLE>
6 Oppenheimer Quest Opportunity Value Fund
<PAGE>
<TABLE>
<CAPTION>
====================================
STATEMENT OF INVESTMENTS (Continued)
MARKET VALUE
SHARES SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------------
RETAIL: GENERAL - 2.2%
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
VF Corp. 600,000 $ 39,225,000
- -----------------------------------------------------------------------------------------------------------------------------------
CONSUMER NON-CYCLICALS - 2.7%
- -----------------------------------------------------------------------------------------------------------------------------------
BEVERAGES - 1.1%
------------------------------------------------------------------------------------------------------------------------
PepsiCo, Inc. 650,000 19,256,250
- -----------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE/SUPPLIES & SERVICES - 1.6%
------------------------------------------------------------------------------------------------------------------------
Becton, Dickinson & Co. 650,000 28,275,000
- -----------------------------------------------------------------------------------------------------------------------------------
ENERGY - 1.9%
- -----------------------------------------------------------------------------------------------------------------------------------
OIL-INTEGRATED - 1.9%
------------------------------------------------------------------------------------------------------------------------
Triton Energy Corp. (1) 379,700 16,944,112
------------------------------------------------------------------------------------------------------------------------
Union Pacific Resources Group, Inc. 635,209 17,468,248
---------------
34,412,360
- -----------------------------------------------------------------------------------------------------------------------------------
FINANCIAL - 31.7%
- -----------------------------------------------------------------------------------------------------------------------------------
BANKS - 11.8%
------------------------------------------------------------------------------------------------------------------------
Citicorp 900,000 89,100,000
------------------------------------------------------------------------------------------------------------------------
Mellon Bank Corp. 150,000 9,768,750
------------------------------------------------------------------------------------------------------------------------
Wells Fargo & Co. 425,000 113,528,125
---------------
212,396,875
- -----------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL - 11.6%
------------------------------------------------------------------------------------------------------------------------
American Express Co. 250,000 11,750,000
------------------------------------------------------------------------------------------------------------------------
Countrywide Credit Industries, Inc. 2,200,000 62,700,000
------------------------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp. 710,000 71,710,000
------------------------------------------------------------------------------------------------------------------------
Federal National Mortgage Assn. 1,250,000 48,906,250
------------------------------------------------------------------------------------------------------------------------
First Empire State Corp. 34,100 8,755,175
------------------------------------------------------------------------------------------------------------------------
Transamerica Corp. 60,000 4,552,500
---------------
208,373,925
- -----------------------------------------------------------------------------------------------------------------------------------
INSURANCE - 8.3%
------------------------------------------------------------------------------------------------------------------------
ACE Ltd. 1,450,000 79,387,500
------------------------------------------------------------------------------------------------------------------------
AFLAC, Inc. 400,000 16,050,000
------------------------------------------------------------------------------------------------------------------------
EXEL Ltd. 600,000 22,800,000
------------------------------------------------------------------------------------------------------------------------
Travelers/Aetna Property Casualty Corp., Cl. A 1,000,000 30,000,000
---------------
148,237,500
- -----------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL - 7.6%
- -----------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL SERVICES - 1.3%
------------------------------------------------------------------------------------------------------------------------
Donnelley (R.R.) & Sons Co. 778,400 23,643,900
- -----------------------------------------------------------------------------------------------------------------------------------
MANUFACTURING - 4.1%
------------------------------------------------------------------------------------------------------------------------
Tenneco, Inc. 1,500,000 74,250,000
- -----------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 2.2%
------------------------------------------------------------------------------------------------------------------------
Union Pacific Corp. 700,000 39,287,500
- -----------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY - 16.7%
- -----------------------------------------------------------------------------------------------------------------------------------
AEROSPACE/DEFENSE - 9.7%
------------------------------------------------------------------------------------------------------------------------
Alliant Techsystems, Inc. (1) 210,000 10,263,750
------------------------------------------------------------------------------------------------------------------------
Lockheed Martin Corp. 450,000 40,331,250
------------------------------------------------------------------------------------------------------------------------
McDonnell Douglas Corp. 2,000,000 109,000,000
------------------------------------------------------------------------------------------------------------------------
Northrop Grumman Corp. 170,000 13,727,500
---------------
173,322,500
</TABLE>
7 Oppenheimer Quest Opportunity Value Fund
<PAGE>
<TABLE>
<CAPTION>
====================================
STATEMENT OF INVESTMENTS (Continued)
MARKET VALUE
SHARES SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------------
ELECTRONICS - 7.0%
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Intel Corp. 350,000 $ 38,456,250
------------------------------------------------------------------------------------------------------------------------
Loral Space & Communications Ltd. (1) 500,000 7,937,500
------------------------------------------------------------------------------------------------------------------------
National Semiconductor Corp. (1) 2,200,000 42,350,000
------------------------------------------------------------------------------------------------------------------------
Unitrode Corp. (1)(2) 635,000 15,240,000
------------------------------------------------------------------------------------------------------------------------
Varian Associates, Inc. 500,000 22,562,500
---------------
126,546,250
---------------
Total Common Stocks (Cost $1,182,351,086) 1,453,520,560
UNITS
===================================================================================================================================
RIGHTS, WARRANTS AND CERTIFICATES - 0.0%
- -----------------------------------------------------------------------------------------------------------------------------------
Laboratory Corp. of America Holdings Wts., Exp. 4/00 (Cost $81) 34 6
------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $1,513,314,899) 99.3% 1,784,603,113
------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 0.7 12,462,207
------ ---------------
NET ASSETS 100.0% $1,797,065,320
====== ===============
</TABLE>
1. Non-income producing security.
2. Affiliated company. Represents ownership of at least 5% of the voting
securities of the issuer and is or was an affiliate, as defined in the
Investment Company Act of 1940, at or during the year ended October 31, 1996.
The aggregate fair value of all securities of affiliated companies as of October
31, 1996 amounted to $15,240,000. Transactions during the year in which the
issuer was an affiliate were as follows:
<TABLE>
<CAPTION>
BALANCE OCTOBER 31, 1995 GROSS ADDITIONS GROSS REDUCTIONS BALANCE OCTOBER 31, 1996
------------------------ ------------------------ ------------------- -------------------------
SHARES COST SHARES COST SHARES COST SHARES COST
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Unitrode Corp. 440,000 $7,822,514 195,000 $4,538,182 -- $ -- 635,000 $12,360,696
</TABLE>
3. Short-term notes are generally traded on a discount basis; the interest rate
is the discount rate received by the Fund at the time of purchase.
See accompanying Notes to Financial Statements.
8 Oppenheimer Quest Opportunity Value Fund
<PAGE>
<TABLE>
<CAPTION>
====================================================
STATEMENT OF ASSETS AND LIABILITIES OCTOBER 31, 1996
===================================================================================================================================
<S> <C> <C>
ASSETS Investments, at value - see accompanying statement:
Unaffiliated companies (cost $1,500,954,203) $1,769,363,113
Affiliated companies (cost $12,360,696) 15,240,000
-------------------------------------------------------------------------------------------------------
Receivables:
Shares of beneficial interest sold 15,413,444
Investments sold 3,203,943
Interest and dividends 1,892,997
-------------------------------------------------------------------------------------------------------
Other 53,267
---------------
Total assets 1,805,166,764
===================================================================================================================================
LIABILITIES Bank overdraft 1,930,323
-------------------------------------------------------------------------------------------------------
Payables and other liabilities:
Shares of beneficial interest redeemed 5,228,198
Distribution and service plan fees 364,577
Shareholder reports 176,809
Transfer and shareholder servicing agent fees 72,664
Trustees' fees 4,339
Other 324,534
---------------
Total liabilities 8,101,444
===================================================================================================================================
NET ASSETS $1,797,065,320
===============
===================================================================================================================================
COMPOSITION OF Par value of shares of beneficial interest $ 605,389
NET ASSETS -------------------------------------------------------------------------------------------------------
Additional paid-in capital 1,470,129,617
-------------------------------------------------------------------------------------------------------
Undistributed net investment income 4,559,188
-------------------------------------------------------------------------------------------------------
Accumulated net realized gain on investment transactions 50,482,912
-------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments - Note 3 271,288,214
---------------
Net assets $1,797,065,320
===============
===================================================================================================================================
NET ASSET VALUE Class A Shares:
PER SHARE Net asset value and redemption price per share (based on net assets
of $897,492,843 and 30,027,387 shares of beneficial interest outstanding) $29.89
Maximum offering price per share (net asset value plus sales charge
of 5.75% of offering price) $31.71
-------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price and offering price per share (based on net
assets of $718,506,133 and 24,363,704 shares of beneficial interest outstanding) $29.49
-------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price and offering price per share (based on net
assets of $181,066,344 and 6,147,790 shares of beneficial interest outstanding) $29.45
</TABLE>
See accompanying Notes to Financial Statements.
9 Oppenheimer Quest Opportunity Value Fund
<PAGE>
<TABLE>
<CAPTION>
===========================================================
STATEMENT OF OPERATIONS FOR THE YEAR ENDED OCTOBER 31, 1996
===================================================================================================================================
<S> <C> <C>
INVESTMENT INCOME Dividends $ 15,726,695
-------------------------------------------------------------------------------------------------------
Interest 10,119,315
---------------
Total income 25,846,010
===================================================================================================================================
EXPENSES Management fees - Note 4 10,467,117
-------------------------------------------------------------------------------------------------------
Distribution and service plan fees - Note 4:
Class A 3,013,798
Class B 4,265,674
Class C 1,054,091
-------------------------------------------------------------------------------------------------------
Transfer agent and accounting service fees - Note 4 1,210,208
-------------------------------------------------------------------------------------------------------
Registration and filing fees:
Class A 222,693
Class B 211,200
Class C 55,090
-------------------------------------------------------------------------------------------------------
Shareholder reports 476,840
-------------------------------------------------------------------------------------------------------
Custodian fees and expenses 69,141
-------------------------------------------------------------------------------------------------------
Legal and auditing fees 42,793
-------------------------------------------------------------------------------------------------------
Trustees' fees and expenses 32,900
-------------------------------------------------------------------------------------------------------
Other 146,120
---------------
Total expenses 21,267,665
===================================================================================================================================
NET INVESTMENT INCOME 4,578,345
===================================================================================================================================
REALIZED AND Net realized gain on investments 50,530,759
UNREALIZED GAIN -------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments 171,894,684
---------------
Net realized and unrealized gain 222,425,443
===================================================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 227,003,788
===============
</TABLE>
See accompanying Notes to Financial Statements.
10 Oppenheimer Quest Opportunity Value Fund
<PAGE>
<TABLE>
<CAPTION>
===================================
STATEMENTS OF CHANGES IN NET ASSETS
YEAR ENDED OCTOBER 31,
1996 1995
===================================================================================================================================
<S> <C> <C> <C>
OPERATIONS Net investment income $ 4,578,345 $ 3,208,043
-------------------------------------------------------------------------------------------------------
Net realized gain 50,530,759 8,125,065
------------------------------------
Net change in unrealized appreciation or depreciation 171,894,684 85,013,107
------------------------------------
Net increase in net assets resulting
from operations 227,003,788 96,346,215
===================================================================================================================================
DIVIDENDS AND Dividends from net investment income:
DISTRIBUTIONS Class A (2,200,923) (1,066,642)
TO SHAREHOLDERS Class B (693,117) (335,822)
Class C (168,699) (56,920)
-------------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (4,714,005) (5,314,298)
Class B (2,813,903) (1,562,718)
Class C (632,754) (267,734)
===================================================================================================================================
BENEFICIAL INTEREST Net increase in net assets resulting from
TRANSACTIONS beneficial interest transactions - Note 2:
Class A 414,067,613 147,252,112
Class B 420,725,129 148,442,302
Class C 111,981,077 37,128,874
===================================================================================================================================
NET ASSETS Total increase 1,162,554,206 420,565,369
-------------------------------------------------------------------------------------------------------
Beginning of period 634,511,114 213,945,745
------------------------------------
End of period (including undistributed net investment
income of $4,559,188 and $3,043,582, respectively) $1,797,065,320 $ 634,511,114
====================================
</TABLE>
See accompanying Notes to Financial Statements.
11 Oppenheimer Quest Opportunity Value Fund
<PAGE>
<TABLE>
<CAPTION>
====================
FINANCIAL HIGHLIGHTS
CLASS A
-------------------------------------------------------------
YEAR ENDED OCTOBER 31,
1996(2) 1995 1994 1993 1992
===========================================================================================================
PER SHARE OPERATING DATA:
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $24.59 $19.69 $18.71 $16.73 $14.29
- -----------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .10 .23(3) .18(3) .35(3) .09(3)
Net realized and unrealized gain (loss) 5.62 5.40 1.35 2.02 2.93
- -----------------------------------------------------------------------------------------------------------
Total income (loss) from investment
operations 5.72 5.63 1.53 2.37 3.02
- -----------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.13) (.12) (.33) (.07) (.03)
Distributions from net realized gain (.29) (.61) (.22) (.32) (.55)
- -----------------------------------------------------------------------------------------------------------
Total dividends and distributions
to shareholders (.42) (.73) (.55) (.39) (.58)
- -----------------------------------------------------------------------------------------------------------
Net asset value, end of period $29.89 $24.59 $19.69 $18.71 $16.73
=============================================================
===========================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(4) 23.56% 29.88% 8.41% 14.34% 21.93%
===========================================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $897,493 $367,240 $163,340 $127,225 $40,563
- -----------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $609,303 $251,626 $136,623 $ 87,864 $22,081
- -----------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 0.64% 1.02% 0.96% 2.69% 0.72%
Expenses 1.62% 1.69% 1.78% 1.83% 2.27%
- -----------------------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 25.4% 21.0% 42.0% 24.0% 32.0%
Average brokerage commission rate(7) $0.0599 -- -- -- --
</TABLE>
1. For the period from September 1, 1993 (inception of offering) to
October 31, 1993.
2. On November 22, 1995, OppenheimerFunds, Inc. became the investment adivser
to the Fund.
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 (or inception of offering), with all dividends
and distributions reinvested in additional shares on the reinvestment date, and
redemption at the net asset value calculated on the last business day of the
fiscal period. Sales charges are not reflected in the total returns. Total
returns are not annualized for periods of less than one full year.
12 Oppenheimer Quest Opportunity Value Fund
<PAGE>
<TABLE>
<CAPTION>
====================
FINANCIAL HIGHLIGHTS
CLASS B CLASS C
---------------------------------------- ------------------------------------------
YEAR ENDED OCTOBER 31, YEAR ENDED OCTOBER 31,
1996(2) 1995 1994 1993(1) 1996(2) 1995 1994 1993(1)
====================================================================================================================================
PER SHARE OPERATING DATA:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $24.33 $19.59 $18.70 $18.73 $24.31 $19.58 $18.70 $18.73
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .05 .11(3) .08(3) .02(3) .06 .08(3) .08(3) .02(3)
Net realized and unrealized gain (loss) 5.47 5.36 1.34 (.05) 5.44 5.38 1.33 (.05)
- ------------------------------------------------------------------------------------------------------------------------------------
Total income (loss) from investment
operations 5.52 5.47 1.42 (.03) 5.50 5.46 1.41 (.03)
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.07) (.12) (.31) -- (.07) (.12) (.31) --
Distributions from net realized gain (.29) (.61) (.22) -- (.29) (.61) (.22) --
- ------------------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions
to shareholders (.36) (.73) (.53) -- (.36) (.73) (.53) --
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $29.49 $24.33 $19.59 $18.70 $29.45 $24.31 $19.58 $18.70
======================================================================================
====================================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(4) 22.92% 29.19% 7.84% (0.16)% 22.89% 29.16% 8.06% (0.16)%
====================================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $718,506 $217,663 $43,317 $2,115 $181,066 $49,608 $7,289 $313
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $426,358 $116,523 $16,216 $1,175 $105,445 $24,168 $2,709 $172
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 0.12% 0.48% 0.43% 1.32%(5) 0.12% 0.37% 0.43% 1.13%(5)
Expenses 2.14% 2.21% 2.34% 2.52%(5) 2.14% 2.31% 2.35% 2.52%(5)
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 25.4% 21.0% 42.0% 24.0% 25.4% 21.0% 42.0% 24.0%
Average brokerage commission rate(7) $0.0599 -- -- -- $0.0599 -- -- --
</TABLE>
5. Annualized.
6. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities owned
during the period. Securities with a maturity or expiration date at the time of
acquisition of one year or less are excluded from the calculation. Purchases and
sales of investment securities (excluding short-term securities) for the period
ended October 31, 1996 were $934,199,923 and $242,712,115, respectively.
7. Total brokerage commissions paid on applicable purchases and sales of
portfolio securities for the period divided by the total number of related
shares purchased and sold.
See accompanying Notes to Financial Statements.
13 Oppenheimer Quest Opportunity Value Fund
<PAGE>
=============================
NOTES TO FINANCIAL STATEMENTS
================================================================================
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Quest Opportunity Value Fund (the Fund), formerly named Quest
for Value Opportunity Fund, a series of Oppenheimer Quest for Value Funds,
is a diversified open-end management investment company registered under
the Investment Company Act of 1940, as amended. The Fund's investment
objective is to seek growth of capital over time through investments in a
diversified portfolio of common stocks, bonds and cash equivalents. On
November 22, 1995, OCC Distributors (previously Quest for Value
Distributors), OpCap Advisors (previously Quest for Value Advisors) and
their parent Oppenheimer Capital consummated a transaction with
OppenheimerFunds, Inc. (the Manager), which resulted in the sale to the
Manager of certain mutual fund assets of OCC Distributors and OpCap
Advisors, including the transfer of 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
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 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. Discount on securities purchased is
amortized over the life of the respective securities, in accordance with
federal income tax requirements. Realized gains and losses on investments
and unrealized appreciation and depreciation are determined on an
identified cost basis, which is the same basis used for federal income tax
purposes.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of income and expenses during
the reporting period. Actual results could differ from those estimates.
14 Oppenheimer Quest Opportunity Value Fund
<PAGE>
=========================================
NOTES TO FINANCIAL STATEMENTS (Continued)
================================================================================
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>
YEAR ENDED OCTOBER 31, 1996 YEAR ENDED OCTOBER 31, 1995
---------------------------- -----------------------------
SHARES AMOUNT SHARES AMOUNT
-------------------------------------------------------------------------------------------------------------
Class A:
<S> <C> <C> <C> <C>
Sold 18,898,662 $520,099,622 9,028,138 $201,988,591
Dividends and distributions
reinvested 261,183 6,621,016 328,864 6,034,648
Redeemed (4,066,611) (112,653,025) (2,718,312) (60,771,127)
----------- ------------- ----------- -------------
Net increase 15,093,234 $414,067,613 6,638,690 $147,252,112
=========== ============= =========== =============
-------------------------------------------------------------------------------------------------------------
Class B:
Sold 16,806,769 $458,977,376 7,259,921 $160,670,137
Dividends and distributions
reinvested 132,115 3,318,700 98,923 1,804,130
Redeemed (1,520,680) (41,570,947) (624,721) (14,031,965)
----------- ------------- ---------- -------------
Net increase 15,418,204 $420,725,129 6,734,123 $148,442,302
============ ============= ========== =============
-------------------------------------------------------------------------------------------------------------
Class C:
Sold 4,681,623 $127,733,287 1,828,198 $ 40,882,367
Dividends and distributions
reinvested 30,694 770,104 17,240 314,274
Redeemed (605,328) (16,522,314) (176,839) (4,067,767)
------------ ------------- ----------- -------------
Net increase 4,106,989 $111,981,077 1,668,599 $ 37,128,874
============ ============= =========== =============
</TABLE>
================================================================================
3. UNREALIZED GAINS AND LOSSES ON INVESTMENTS
At October 31, 1996, net unrealized appreciation on investments of
$271,288,214 was composed of gross appreciation of $296,904,569, and gross
depreciation of $25,616,355.
================================================================================
4. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Management fees paid to the Manager were in accordance with the investment
advisory agreement with the Fund which provides for a fee of 1.00% on the
first $400 million of average annual net assets, 0.90% on the next $400
million and 0.85% on net assets in excess of $800 million. Prior to November
22, 1995, management fees were paid to the former Manager at an annual rate
of 1.00%. 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-Adviser) a monthly fee based on the fee schedule set forth in the
Prospectus. For the period ended October 31, 1996, the Manager paid
$3,644,956 to the Sub-Adviser.
For the year ended October 31, 1996, commissions (sales charges paid by
investors) on sales of Class A shares totaled $8,912,792, of which
$2,935,080 was retained by OppenheimerFunds Distributor, Inc. (OFDI), a
subsidiary of the Manager, as general distributor, and by affiliated
broker/dealers. Sales charges advanced to broker/dealers by OFDI on sales of
the Fund's Class B and Class C shares totaled $16,293,508 and $1,170,910, of
which $389,332 and $12,899, respectively, were paid to an affiliated
broker/dealer. During the year ended October 31, 1996, OFDI received
contingent deferred sales charges of $815,351 and $33,700, respectively,
upon redemption of Class B and Class C shares as reimbursement for sales
commissions advanced by OFDI at the time of sale of such shares.
OppenheimerFunds Services (OFS), a division of the Manager, is the transfer
and shareholder servicing agent for the Fund and for other registered
investment companies. The Fund pays OFS an annual maintenance fee of $14.85
for each Fund shareholder account and reimburses OFS for its out-of-pocket
expenses. During the period ended October 31, 1996, the Fund paid OFS
$1,153,517.
15 Oppenheimer Quest Opportunity Value Fund
<PAGE>
=========================================
NOTES TO FINANCIAL STATEMENTS (Continued)
================================================================================
4. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES (CONTINUED)
The Fund has adopted a Distribution and Service Plan for Class A shares to
compensate OFDI for a portion of its costs incurred in connection with the
personal service and maintenance of accounts that hold Class A shares. Under
the Plan, the Fund pays an annual asset-based sales charge to OFDI of 0.25%
per year on Class A shares. The Fund also pays a service fee to OFDI of
0.25% per year. Both fees are computed on the average annual net assets of
Class A shares of the Fund, determined as of the close of each regular
business day. OFDI uses all of the service fee and a portion of the
asset-based sales charge to compensate brokers, dealers, banks and other
financial institutions quarterly for providing personal service and
maintenance of accounts of their customers that hold Class A shares. OFDI
retains the balance of the asset-based sales charge to reimburse itself for
its other expenditures under the Plan. During the year ended October 31,
1996, OFDI paid $29,921 to an affiliated broker/dealer as compensation for
Class A personal service and maintenance expenses.
The Fund has adopted compensation type Distribution and Service Plans for
Class B and Class C shares to compensate OFDI for its services and costs in
distributing Class B and Class C shares and servicing accounts. Under the
Plans, the Fund pays OFDI an annual asset-based sales charge of 0.75% per
year on Class B and Class C shares, as compensation for sales commissions
paid from its own resources at the time of sale and associated financing
costs. 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 year ended October 31,
1996, OFDI paid $1,057 to an affiliated broker/dealer as compensation for
Class B and Class C personal service and maintenance expenses and retained
$3,743,612 and $762,915, respectively, as compensation for Class B and Class
C sales commissions and service fee advances, as well as 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. At October
31, 1996, OFDI had incurred unreimbursed expenses of $14,779,796 for Class B
and $1,248,251 for Class C.
16 Oppenheimer Quest Opportunity Value Fund
<PAGE>
=================================
REPORT OF INDEPENDENT ACCOUNTANTS
================================================================================
To the Board of Trustees and Shareholders of
Oppenheimer Quest Opportunity Value Fund
In our opinion, the accompanying statement of assets and liabilities,
including the statement of investments, and the related statements of
operations and of changes in net assets and the financial highlights
present fairly, in all material respects, the financial position of
Oppenheimer Quest Opportunity Value Fund (formerly Quest for Value
Opportunity Fund, one of the portfolios constituting Oppenheimer Quest for
Value Funds, formerly Quest for Value Family of Funds, hereafter referred
to as the Fund) at October 31, 1996, the results of its operations for the
year then ended, the changes in its net assets for each of the two years in
the period then ended and the financial highlights for each of the five
years in the period then ended, in conformity with generally accepted
accounting principles. These financial statements and financial highlights
(hereafter referred to as financial statements) are the responsibility of
the Fund's management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with generally accepted auditing
standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant
estimates made by management, and evaluating the overall financial
statement presentation. We believe that our audits, which included
confirmation of securities at October 31, 1996 by correspondence with the
custodian and the application of alternative auditing procedures for
unsettled security transactions, provide a reasonable basis for the opinion
expressed above.
Price Waterhouse LLP
Denver, Colorado
November 21, 1996
17 Oppenheimer Quest Opportunity Value Fund
<PAGE>
==========================================
FEDERAL INCOME TAX INFORMATION (Unaudited)
================================================================================
In early 1997 shareholders will receive information regarding all dividends
and distributions paid to them by the Fund during calendar year 1996.
Regulations of the U.S. Treasury Department require the Fund to report this
information to the Internal Revenue Service.
Distributions of $0.4186, $0.3557 and $0.3615 per share were paid to Class
A, Class B and Class C shareholders, respectively, on December 28, 1995, of
which, for each class of shares, $0.225 was designated as a "capital gain
distribution" for federal income tax purposes. Whether received in stock or
in cash, the capital gain distribution should be treated by shareholders as
a gain from the sale of capital assets held for more than one year
(long-term capital gain).
Dividends paid by the Fund during the fiscal year ended October 31, 1996
which are not designated as capital gain distributions should be multiplied
by 61.70% to arrive at the net amount eligible for the corporate dividend-
received deduction.
The foregoing information is presented to assist shareholders in reporting
distributions received from the Fund to the Internal Revenue Service.
Because of the complexity of the federal regulations which may affect your
individual tax return and the many variations in state and local tax
regulations, we recommend that you consult your tax adviser for specific
guidance.
18 Oppenheimer Quest Opportunity Value Fund
<PAGE>
========================================
OPPENHEIMER QUEST OPPORTUNITY VALUE FUND
A Series of Oppenheimer Quest for Value Funds
================================================================================
OFFICERS AND TRUSTEES Bridget A. Macaskill, Chairman of the
Board of Trustees and President
Paul Y. Clinton, Trustee
Thomas W. Courtney, Trustee
Lacy B. Herrmann, Trustee
George Loft, Trustee
Robert C. Doll, Jr., 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 ADVISER OppenheimerFunds, Inc.
================================================================================
SUB-ADVISER OpCap Advisors
================================================================================
DISTRIBUTOR OppenheimerFunds Distributor, Inc.
================================================================================
TRANSFER AND OppenheimerFunds Services
SHAREHOLDER SERVICING
AGENT
================================================================================
CUSTODIAN OF PORTFOLIO State Street Bank and Trust Company
SECURITIES
================================================================================
INDEPENDENT ACCOUNTANTS Price Waterhouse LLP
================================================================================
LEGAL COUNSEL Gordon Altman Butowsky Weitzen Shalov & Wein
This is a copy of a report to shareholders of Oppenheimer Quest Opportunity
Value Fund. This report must be preceded or accompanied by a Prospectus of
Oppenheimer Quest Opportunity Value Fund. For material information
concerning the Fund, see the Prospectus.
Shares of Oppenheimer funds are not deposits or obligations of any bank,
are not guaranteed by any bank, and are not insured by the FDIC or any
other agency, and involve investment risks, including possible loss of the
principal amount invested.
19 Oppenheimer Quest Opportunity Value Fund
<PAGE>
[BACK COVER]
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
- --------------
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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
- --------------
RA0236.001.1096 December 31, 1996
- ------------------------------------------------------------------------------
"HOW MAY I HELP YOU?" [PHOTO]Customer Service Representative
Customer Service Representative
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As an Oppenheimer funds shareholder, you have some special privileges. Whether
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And when you need help, our Customer Service Representatives are only a
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So call us today--we're here to help.
- ------------------------------------------------------------------------------
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--------------
