<PAGE> 1
OPPENHEIMER QUEST SMALL CAP VALUE FUND
SEMIANNUAL REPORT APRIL 30, 1997
[PHOTO]
"WE KNOW WE
HAVE TO INVEST
AGGRESSIVELY
FOR THE LONG
TERM TO ACHIEVE
THE HIGH GROWTH
WE NEED."
[OPPENHEIMERFUNDS LOGO]
OPPENHEIMERFUNDS
THE RIGHT WAY TO INVEST
<PAGE> 2
THIS FUND IS FOR PEOPLE WHO WANT THE KIND OF SUBSTANTIAL GROWTH AVAILABLE
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 believed to be priced below their
true worth. By identify-ing 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 offers the
potential for significant long-term growth.
PERFORMANCE
Total returns for the six months ended 4/30/97 for Class A, B and C shares were
7.14%, 6.83% and 6.84%, 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 3/31/97 and since inception on 1/3/89 were 7.12%,
10.15% and 12.18%, respectively. For Class B shares, average annual total
returns for the 1-year period ended 3/31/97 and since inception on 9/1/93 were
8.05% and 8.65%, respectively. For Class C shares, average annual total returns
for the 1-year period ended 3/31/97 and from inception on 9/1/93 to 3/31/97
were 12.05% and 9.32%, respectively.(2)
OUTLOOK
Our outlook for the Fund is positive. Whatever direction the market takes, we
will continue to uncover stocks of businesses that we believe are priced at
good values and have strong prospects for the future."
April 30, 1997
Timothy McCormack, Portfolio Manager
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%.
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 0.75%
asset-based sales charge and Class A shares are subject to an annual 0.25%
asset-based sales charge.
2 Oppenheimer Quest Small Cap Value Fund
<PAGE> 3
[PHOTO]
Bridget A. Macaskill
President
Oppenheimer Quest
Small Cap Value Fund
DEAR SHAREHOLDER,
So far, 1997 has brought the volatility we anticipated in the equity market.
April saw a 9% decline, but it was followed by an even larger rebound. Despite
this volatility, we remain optimistic about the rest of the year. On the one
hand, the equity market is backed by solid economic fundamentals that should
continue for the near future. On the other hand, the ups and downs of the
business cycle are a reality, and at some point, possibly this year, we expect
that the economy will move into a phase of slower growth.
On a positive note, the economy has been expanding slowly but steadily.
Interest rates are still relatively low, despite the Federal Reserve's recent
increase in short-term rates. Low interest rates translate into reduced
borrowing rates for companies, which use these savings to improve productivity
through new efficiency-enhancing technologies. Higher productivity translates
into lower production costs, which in turn results in higher profits.
In addition, inflation is at its lowest level in three decades. While
it's true that an increase in interest rates often indicates an accelerating
economy, the Federal Reserve has been quick to acknowledge that inflation and
growth are under control. In fact, they've labeled the recent move as a
"pre-emptive" act to keep inflation low and extend the economy's healthy growth
cycle.
Despite this good news, we are realistic about the future of the equity
market. During 1996, most market gains came from a very select group of about
50-100 large-capitalization stocks. The broader market, including small- and
mid-size companies, actually delivered mixed results for the past year. Many
large-company stocks are becoming overvalued, or expensive in price, and market
buyers will reach a point when they are no longer willing to pay high premiums
for them. This may result in a correction, unless investors turn to the many
small- and mid-cap stocks that are relatively undervalued. There is plenty of
room for growth in these areas, and we expect to see these stocks participating
in the market during 1997.
In this uncertain period, selectivity will be our key to maintaining an
effective portfolio. It will be important to base stock choices on the
individual merits of companies, such as strong management, fundamental business
policies, long-term future prospects and price. For you, the investor,
maintaining a long-term investment horizon is essential. Short-term swings will
inevitably occur, but the market's long-term trend has been to move higher and
higher.
Your portfolio managers discuss the outlook for your Fund in light of
these broad issues on the following pages. Thank you for your confidence in
OppenheimerFunds, The Right Way to Invest. We look forward to helping you reach
your investment goals in the future.
/s/ BRIDGET A. MACASKILL
Bridget A. Macaskill
May 21, 1997
3 Oppenheimer Quest Small Cap Value Fund
<PAGE> 4
TIMOTHY MCCORMACK
Portfolio Manager
Q + A
AN INTERVIEW WITH YOUR FUND'S MANAGERS.
HOW HAS THE FUND PERFORMED OVER THE PAST SIX MONTHS?
Oppenheimer Quest Small Cap Value Fund performed well over the period,
especially considering the difficult mar-ket environment for small-cap stocks.
In fact, for the six-month period ended April 30, 1997, cumulative total return
without deducting sales charges for the Fund's Class A shares was 7.14%,
compared to 1.61% for its bench-mark, the Russell 2000 Index.(1)
WHAT CHARACTERISTICS DO YOU LOOK FOR WHEN EVALUATING STOCKS?
In this fund, we look for companies that have three basic traits. First, the
businesses we select must have a competitive advantage versus other com-panies
within their industry, a benefit that will allow them to maintain a high return
on invested capital. Second, we look for companies with strong management teams
who are focused on using capital in a manner that provides long-term benefits
to shareholders, such as increasing production efficiencies, and buying back
stock. And third, we look to purchase the stocks of these companies at
advantageous prices.
WHAT INVESTMENTS MADE POSITIVE CONTRIBUTIONS TO PERFORMANCE?
In general, small-cap value stocks reacted better in the recent market
environment than small-cap growth stocks. That's primarily because after the
small-cap market's dramatic decline in July, many investors renewed their focus
on inexpensive companies with strong fundamentals at reasonable valuations.
One of our largest holdings, Magellan Health Services, performed very
well during this period. As the largest provider of behavioral health services
in the United States, it improved access to psychiatric services by
implementing a managed-care approach. In addition, its strong cash flow
allowed the company to buy back stock and complete a successful acquisition.(2)
WERE THERE ANY INVESTMENTS THAT DIDN'T PERFORM AS WELL AS EXPECTED?
One of the Fund's underperformers was Katz Media Group, a firm that represents
local radio and television stations to national advertisers seeking airtime in
local markets. The company wasn't able to attract a sufficient volume of
business this year as its client base was reduced by the mergers of many local
stations. These larger, newly merged companies began representing themselves to
national advertisers, further limiting this market.
Nu-Kote Holding, a manufacturer of cartridges for computer printers
and copiers, was another disappointment for the portfolio. Manufacturing
problems, patent issues and increased competition in this area all affected
earnings.
WHAT IS YOUR OUTLOOK FOR THE FUND?
Our outlook for the Fund is positive. While the small-cap market has
underperformed large caps for about three years, the valuation spreads between
small- and large-cap stocks are now closer to historical lows than highs. This
fact makes us confident that small caps are reasonably priced compared with the
broader market. Nevertheless, whatever direction the market takes, we will
continue to uncover stocks of businesses that we believe are priced at good
values and have strong prospects for the future.
1. The Fund's investments are not limited to securities in the Russell 2000,
which cannot be purchased directly by investors. The Russell 2000 Index is a
capitalization-weighted index of 2,000 U.S. issuers with market values ranging
from $25 million to $275 million.
2. The Fund's portfolio is subject to change.
4 Oppenheimer Quest Small Cap Value Fund
<PAGE> 5
<TABLE>
<CAPTION>
FINANCIALS
CONTENTS
<S> <C>
STATEMENT OF INVESTMENTS 6
STATEMENT OF ASSETS AND LIABILITIES 9
STATEMENT OF OPERATIONS 10
STATEMENTS OF CHANGES IN NET ASSETS 11
FINANCIAL HIGHLIGHTS 12
NOTES TO FINANCIAL STATEMENTS 14
</TABLE>
5 Oppenheimer Quest Small Cap Value Fund
<PAGE> 6
STATEMENT OF INVESTMENTS April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT SEE NOTE 1
===================================================================================================================================
<S> <C> <C>
SHORT-TERM NOTES--8.7%
- -----------------------------------------------------------------------------------------------------------------------------------
Federal Farm Credit Bank, 5.33%, 5/2/97(1) $ 2,205,000 $ 2,204,673
----------------------------------------------------------------------------------------------------------------------------
Federal Farm Credit Bank, 5.33%, 5/5/97(1) 195,000 194,884
----------------------------------------------------------------------------------------------------------------------------
Federal Farm Credit Bank, 5.36%, 5/7/97(1) 1,215,000 1,213,915
----------------------------------------------------------------------------------------------------------------------------
General Electric Capital Corp., 5.50%, 5/1/97(1) 2,952,000 2,952,000
----------------------------------------------------------------------------------------------------------------------------
Merrill Lynch & Co., Inc., 5.35%, 5/12/97(1) 7,660,000 7,647,174
------------
Total Short-Term Notes (Cost $14,212,646) 14,212,646
===================================================================================================================================
NON-CONVERTIBLE CORPORATE BONDS AND NOTES--0.0%
- -----------------------------------------------------------------------------------------------------------------------------------
Collins Industries, Inc., 8.75% Nts., 1/11/00 (Cost $62,950) 62,950 59,441
===================================================================================================================================
CONVERTIBLE CORPORATE BONDS AND NOTES--1.0%
- -----------------------------------------------------------------------------------------------------------------------------------
Security Capital Realty, Inc., 12% Cv. Sub. Debs., 6/30/14(2) 1,363,500 1,587,062
----------------------------------------------------------------------------------------------------------------------------
Security Capital Realty, Inc., 12% Cv. Sub. Debs. Interest Shares, 6/30/14(2) 97,344 97,344
------------
Total Convertible Corporate Bonds and Notes (Cost $1,393,639) 1,684,406
<CAPTION>
SHARES
===================================================================================================================================
<S> <C> <C>
COMMON STOCKS--92.0%
- -----------------------------------------------------------------------------------------------------------------------------------
BASIC MATERIALS--8.7%
- -----------------------------------------------------------------------------------------------------------------------------------
CHEMICALS--3.9%
- -----------------------------------------------------------------------------------------------------------------------------------
McWhorter Technologies, Inc.(3) 167,500 3,685,000
----------------------------------------------------------------------------------------------------------------------------
Schulman (A.), Inc. 142,400 2,705,600
------------
6,390,600
- -----------------------------------------------------------------------------------------------------------------------------------
METALS--1.1%
- -----------------------------------------------------------------------------------------------------------------------------------
Chicago Bridge & Iron Co., NV(3) 105,300 1,790,100
- -----------------------------------------------------------------------------------------------------------------------------------
PAPER--3.7%
- -----------------------------------------------------------------------------------------------------------------------------------
Harland (John H.) Co. 112,400 2,318,250
----------------------------------------------------------------------------------------------------------------------------
Rock-Tenn Co., Cl. A 43,500 619,875
----------------------------------------------------------------------------------------------------------------------------
Shorewood Packaging Corp.(3) 162,000 3,078,000
------------
6,016,125
- -----------------------------------------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS--13.6%
- -----------------------------------------------------------------------------------------------------------------------------------
AUTOS & HOUSING--3.4%
- -----------------------------------------------------------------------------------------------------------------------------------
Borg-Warner Automotive, Inc. 81,200 3,410,400
----------------------------------------------------------------------------------------------------------------------------
Security Capital Realty, Inc.(2)(3) 1,800 2,191,507
------------
5,601,907
- -----------------------------------------------------------------------------------------------------------------------------------
MEDIA--5.2%
American Radio Systems Corp.(3) 98,000 2,866,500
----------------------------------------------------------------------------------------------------------------------------
Bowne & Co., Inc. 45,900 1,216,350
----------------------------------------------------------------------------------------------------------------------------
Hollinger International, Inc. 320,700 3,207,000
----------------------------------------------------------------------------------------------------------------------------
Katz Media Group, Inc.(3) 110,500 683,719
----------------------------------------------------------------------------------------------------------------------------
Merrill Corp. 23,400 544,050
------------
8,517,619
</TABLE>
6 Oppenheimer Quest Small Cap Value Fund
<PAGE> 7
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
RETAIL: GENERAL--2.2%
WestPoint Stevens, Inc.(3) 94,500 $ 3,697,312
- -----------------------------------------------------------------------------------------------------------------------------------
RETAIL: SPECIALTY--2.8%
Ann Taylor Stores Corp.(3) 73,700 1,787,225
----------------------------------------------------------------------------------------------------------------------------
Jostens, Inc. 72,800 1,738,100
----------------------------------------------------------------------------------------------------------------------------
Nu-Kote Holding, Inc., Cl. A(3) 379,900 1,092,212
------------
4,617,537
- -----------------------------------------------------------------------------------------------------------------------------------
CONSUMER NON-CYCLICALS--10.3%
- -----------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE/DRUGS--3.8%
Dentsply International, Inc. 57,900 2,866,050
----------------------------------------------------------------------------------------------------------------------------
SpaceLabs Medical, Inc.(3) 161,400 3,389,400
------------
6,255,450
- -----------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE/SUPPLIES &
SERVICES--6.5%
CorVel Corp.(3) 121,900 3,032,262
----------------------------------------------------------------------------------------------------------------------------
Magellan Health Services, Inc.(3) 248,700 6,528,375
----------------------------------------------------------------------------------------------------------------------------
Vital Signs, Inc. 59,100 1,122,900
------------
10,683,537
- -----------------------------------------------------------------------------------------------------------------------------------
ENERGY--5.3%
- -----------------------------------------------------------------------------------------------------------------------------------
ENERGY SERVICES &
PRODUCERS--2.7%
St. Mary Land & Exploration Co. 167,900 4,365,400
- -----------------------------------------------------------------------------------------------------------------------------------
OIL-INTEGRATED--2.6%
KCS Energy, Inc. 55,700 1,810,250
----------------------------------------------------------------------------------------------------------------------------
Nuevo Energy Co.(3) 71,900 2,471,562
------------
4,281,812
- -----------------------------------------------------------------------------------------------------------------------------------
FINANCIAL--15.2%
- -----------------------------------------------------------------------------------------------------------------------------------
INSURANCE--15.2%
Capsure Holdings Corp.(3) 213,300 2,532,937
----------------------------------------------------------------------------------------------------------------------------
Delphi Financial Group, Inc., Cl. A 105,340 3,739,570
----------------------------------------------------------------------------------------------------------------------------
E.W. Blanch Holdings, Inc. 193,400 4,303,150
----------------------------------------------------------------------------------------------------------------------------
Enhance Financial Services Group, Inc. 46,200 1,778,700
----------------------------------------------------------------------------------------------------------------------------
Gryphon Holdings, Inc.(3) 152,500 2,192,188
----------------------------------------------------------------------------------------------------------------------------
Horace Mann Educators Corp. 63,800 2,990,625
----------------------------------------------------------------------------------------------------------------------------
RenaissanceRe Holdings Ltd. 78,200 2,893,400
----------------------------------------------------------------------------------------------------------------------------
United Wisconsin Services, Inc. 163,100 4,464,863
------------
24,895,433
- -----------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL--20.4%
- -----------------------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--1.3%
Oak Industries, Inc.(3) 115,200 2,160,000
- -----------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL MATERIALS--1.7%
Dal-Tile International, Inc.(3) 73,100 950,300
----------------------------------------------------------------------------------------------------------------------------
Interpool, Inc. 144,600 1,843,650
------------
2,793,950
</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>
INDUSTRIAL SERVICES--6.0%
Goulds Pumps, Inc. 112,900 $ 4,120,850
----------------------------------------------------------------------------------------------------------------------------
International Imaging Materials, Inc.(3) 189,100 3,214,700
----------------------------------------------------------------------------------------------------------------------------
Lydall, Inc.(3) 121,200 2,454,300
------------
9,789,850
- -----------------------------------------------------------------------------------------------------------------------------------
MANUFACTURING--11.4%
AMETEK, Inc. 101,400 2,268,825
----------------------------------------------------------------------------------------------------------------------------
Baldwin Technology Co., Inc., Cl. A(3) 572,700 1,718,100
----------------------------------------------------------------------------------------------------------------------------
Durco International, Inc. 106,800 2,656,650
----------------------------------------------------------------------------------------------------------------------------
EASCO, Inc. 177,700 1,354,963
----------------------------------------------------------------------------------------------------------------------------
JLG Industries, Inc. 155,000 1,937,500
----------------------------------------------------------------------------------------------------------------------------
Keystone International, Inc. 141,700 2,798,575
----------------------------------------------------------------------------------------------------------------------------
OmniQuip International, Inc.(3) 202,000 2,626,000
----------------------------------------------------------------------------------------------------------------------------
United Dominion Industries Ltd. 41,800 1,045,000
----------------------------------------------------------------------------------------------------------------------------
Watts Industries, Inc., Cl. A 88,000 2,244,000
------------
18,649,613
- -----------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY--17.8%
- -----------------------------------------------------------------------------------------------------------------------------------
AEROSPACE/DEFENSE--3.7%
Kaydon Corp. 78,900 3,491,325
----------------------------------------------------------------------------------------------------------------------------
Tracor, Inc.(3) 122,500 2,664,375
------------
6,155,700
- -----------------------------------------------------------------------------------------------------------------------------------
COMPUTER HARDWARE--4.1%
Auspex Systems, Inc.(3) 243,900 1,951,200
----------------------------------------------------------------------------------------------------------------------------
Wang Laboratories, Inc.(3) 278,500 4,838,938
------------
6,790,138
- -----------------------------------------------------------------------------------------------------------------------------------
COMPUTER SOFTWARE/
SERVICES--4.2%
BancTec, Inc.(3) 168,000 3,843,000
----------------------------------------------------------------------------------------------------------------------------
BISYS Group, Inc. (The)(3) 96,600 3,091,200
------------
6,934,200
- -----------------------------------------------------------------------------------------------------------------------------------
ELECTRONICS--4.2%
EG&G, Inc. 126,300 2,383,913
----------------------------------------------------------------------------------------------------------------------------
Exar Corp.(3) 261,600 4,447,200
------------
6,831,113
- -----------------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS-TECHNOLOGY--1.6%
TCA Cable TV, Inc. 81,000 2,592,000
- -----------------------------------------------------------------------------------------------------------------------------------
UTILITIES--0.7%
- -----------------------------------------------------------------------------------------------------------------------------------
TELEPHONE UTILITIES--0.7%
ACC Corp.(3) 69,400 1,101,725
----------------------------------------------------------------------------------------------------------------------------
Total Common Stocks (Cost $143,879,637) 150,911,121
----------------------------------------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $159,548,872) 101.7% 166,867,614
----------------------------------------------------------------------------------------------------------------------------
Liabilities in Excess of Other Assets (1.7) (2,758,875)
-------- -------------
NET ASSETS 100.0% $164,108,739
======== =============
</TABLE>
1. 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.
2. Identifies issues considered to be illiquid or restricted--See Note 5 of
Notes to Financial Statements.
3. 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, 1997 (Unaudited)
<TABLE>
<S> <C>
===================================================================================================================================
ASSETS
Investments, at value (cost $159,548,872)--see accompanying statement $166,867,614
----------------------------------------------------------------------------------------------------------------------------
Receivables:
Shares of beneficial interest sold 1,381,646
Investments sold 636,497
Interest and dividends 120,022
----------------------------------------------------------------------------------------------------------------------------
Other 5,337
------------
Total assets 169,011,116
===================================================================================================================================
LIABILITIES
Bank overdraft 125,012
----------------------------------------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 2,838,218
Shares of beneficial interest redeemed 1,404,062
Distribution and service plan fees 353,198
Transfer agent and accounting service fees 14,334
Other 167,553
------------
Total liabilities 4,902,377
===================================================================================================================================
NET ASSETS $164,108,739
============
===================================================================================================================================
COMPOSITION OF
NET ASSETS
Par value of shares of beneficial interest $91,870
----------------------------------------------------------------------------------------------------------------------------
Additional paid-in capital 140,345,932
----------------------------------------------------------------------------------------------------------------------------
Accumulated net investment loss (573,179)
----------------------------------------------------------------------------------------------------------------------------
Accumulated net realized gain on investment transactions 16,925,374
----------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments--Note 3 7,318,742
------------
Net assets $164,108,739
============
===================================================================================================================================
NET ASSET VALUE
PER SHARE
Class A Shares:
Net asset value and redemption price per share (based on net assets of $110,222,516
and 6,134,679 shares of beneficial interest outstanding) $17.97
Maximum offering price per share (net asset value plus sales charge of 5.75% of offering price) $19.07
----------------------------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price and offering price per share (based on net assets
of $39,319,905 and 2,226,299 shares of beneficial interest outstanding) $17.66
----------------------------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price and offering price per share (based on net assets
of $14,566,318 and 826,006 shares of beneficial interest outstanding) $17.63
</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, 1997 (Unaudited)
<TABLE>
<S> <C>
===================================================================================================================================
INVESTMENT INCOME
Dividends (net of foreign withholding taxes of $6,016) $ 519,784
----------------------------------------------------------------------------------------------------------------------------
Interest 519,767
------------
Total income 1,039,551
===================================================================================================================================
EXPENSES
Management fees--Note 4 790,666
----------------------------------------------------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 271,251
Class B 178,029
Class C 70,134
----------------------------------------------------------------------------------------------------------------------------
Transfer agent and accounting service fees--Note 4 123,266
----------------------------------------------------------------------------------------------------------------------------
Shareholder reports 63,401
----------------------------------------------------------------------------------------------------------------------------
Registration and filing fees:
Class A 38,728
Class B 14,434
Class C 5,235
----------------------------------------------------------------------------------------------------------------------------
Legal and auditing fees 21,799
----------------------------------------------------------------------------------------------------------------------------
Custodian fees and expenses 12,612
----------------------------------------------------------------------------------------------------------------------------
Trustees' fees and expenses 6,415
Other 16,760
------------
Total expenses 1,612,730
===================================================================================================================================
NET INVESTMENT LOSS (573,179)
===================================================================================================================================
REALIZED AND
UNREALIZED GAIN (LOSS)
Net realized gain on investments 17,039,464
----------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments (6,105,844)
------------
Net realized and unrealized gain 10,933,620
===================================================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 10,360,441
============
</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, 1997 OCTOBER 31,
(UNAUDITED) 1996
===================================================================================================================================
<S> <C> <C>
OPERATIONS
Net investment loss $ (573,179) $ (16,011)
----------------------------------------------------------------------------------------------------------------------------
Net realized gain 17,039,464 19,244,292
----------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation (6,105,844) 4,837,245
------------ -------------
Net increase in net assets resulting from operations 10,360,441 24,065,526
===================================================================================================================================
DIVIDENDS AND
DISTRIBUTIONS TO
SHAREHOLDERS
Dividends from net investment income:
Class A -- (758,969)
Class B -- (44,363)
Class C -- (29,083)
----------------------------------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (12,867,606) (6,609,655)
Class B (4,078,650) (1,335,461)
Class C (1,743,582) (506,878)
===================================================================================================================================
BENEFICIAL INTEREST
TRANSACTIONS
Net increase (decrease) in net assets resulting from beneficial interest
transactions--Note 2:
Class A 13,004,854 (24,805,861)
Class B 10,529,801 4,861,970
Class C 2,210,270 3,040,987
===================================================================================================================================
NET ASSETS
Total increase (decrease) 17,415,528 (2,121,787)
----------------------------------------------------------------------------------------------------------------------------
Beginning of period 146,693,211 148,814,998
------------ -------------
End of period (including accumulated net investment loss
of $573,179 for 1997) $164,108,739 $ 146,693,211
============ =============
</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
APRIL 30, 1997 YEAR ENDED OCTOBER 31,
(UNAUDITED) 1996(2) 1995 1994 1993 1992
===================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period $19.03 $17.31 $16.33 $17.68 $14.60 $13.52
- -----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.06) .03 .11(3) (.03)(3) (.04)(3) --(3)
Net realized and unrealized gain 1.36 2.79 1.29 .01 4.26 1.50
------ ------- ------- ------ ------- ------
Total income (loss) from investment operations 1.30 2.82 1.40 (.02) 4.22 1.50
- -----------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income -- (.11) -- -- -- --
Distributions from net realized gain (2.36) (.99) (.42) (1.33) (1.14) (.42)
------ ------- ------- ------ ------- ------
Total dividends and distributions to shareholders (2.36) (1.10) (.42) (1.33) (1.14) (.42)
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $17.97 $19.03 $17.31 $16.33 $17.68 $14.60
====== ======= ======= ====== ======= ======
===================================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(4) 7.14% 17.17% 8.82% 0.04% 30.21% 11.60%
===================================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $110,223 $102,746 $116,307 $120,102 $104,898 $39,693
- -----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $109,538 $117,765 $119,440 $115,276 $75,500 $32,551
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) (0.57)%(5) 0.11% 0.67% (0.14)% (0.36)% (0.04)%
Expenses 1.88%(5) 1.90% 1.80% 1.88% 1.89% 2.11%
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 62.3% 70.4% 76.0% 67.0% 74.0% 95.0%
Average brokerage commission rate(7) $0.0546 $0.0515 -- -- -- --
</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 adviser
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 Small Cap Value Fund
<PAGE> 13
<TABLE>
<CAPTION>
CLASS B
- ----------------------------------------------------------------------
SIX MONTHS
ENDED
APRIL 30, 1997 YEAR ENDED OCTOBER 31,
(UNAUDITED) 1996(2) 1995 1994 1993(1)
========================================================================
<S> <C> <C> <C> <C>
$18.79 $17.11 $16.24 $17.66 $17.19
- ------------------------------------------------------------------------
(.06) (.06) .02(3) (.11)(3) (.02)(3)
1.29 2.76 1.27 .02 .49
------- ------- ------- ------ ------
1.23 2.70 1.29 (.09) .47
- ------------------------------------------------------------------------
-- (.03) -- -- --
(2.36) (.99) (.42) (1.33) --
------- ------- ------- ------ ------
(2.36) (1.02) (.42) (1.33) --
- ------------------------------------------------------------------------
$17.66 $18.79 $17.11 $16.24 $17.66
======= ======= ======= ====== ======
========================================================================
6.83% 16.57% 8.17% (0.39)% 2.73%
========================================================================
$39,320 $30,766 $23,440 $16,144 $1,754
- ------------------------------------------------------------------------
$35,977 $26,478 $20,105 $9,401 $934
- ------------------------------------------------------------------------
(1.07)%(5) (0.37)% 0.09% (0.70)% (1.15)%(5)
2.37%(5) 2.38% 2.37% 2.48% --
- ------------------------------------------------------------------------
62.3% 70.4% 76.0% 67.0% 74.0%
$0.0546 $0.0515 -- -- --
CLASS C
- ---------------------------------------------------------------------
SIX MONTHS
ENDED
APRIL 30, 1997 YEAR ENDED OCTOBER 31,
(UNAUDITED) 1996(2) 1995 1994 1993(1)
=========================================================================
<S> <C> <C> <C> <C>
$18.76 $17.11 $16.23 $17.67 $17.19
- -------------------------------------------------------------------------
(.07) (.05) .01(3) (.13)(3) (.02)(3)
1.30 2.75 1.29 .02 .50
------- ------- ------- ------ ------
1.23 2.70 1.30 (.11) .48
- -------------------------------------------------------------------------
-- (.06) -- -- --
(2.36) (.99) (.42) (1.33) --
------- ------- ------- ------ ------
(2.36) (1.05) (.42) (1.33) --
- -------------------------------------------------------------------------
$17.63 $18.76 $17.11 $16.23 $17.67
======= ======= ======= ====== ======
=========================================================================
6.84% 16.55% 8.24% (0.51)% 2.79%
=========================================================================
$14,566 $13,181 $9,068 $3,344 $235
- -------------------------------------------------------------------------
$14,163 $11,501 $6,114 $1,381 $138
- -------------------------------------------------------------------------
(1.06)%(5) (0.40)% 0.08% (0.81)% (1.20)%(5)
-- -- -- -- --
- -------------------------------------------------------------------------
62.3% 70.4% 76.0% 67.0% 74.0%
$0.0546 $0.0515 -- -- --
</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 April 30, 1997 were $97,733,816 and $90,978,440,
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 Small Cap Value Fund
<PAGE> 14
NOTES TO FINANCIAL STATEMENTS (Unaudited)
================================================================================
1. SIGNIFICANT
ACCOUNTING POLICIES
Oppenheimer Quest Small Cap Value Fund (the 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. It is the intention of the Fund to invest 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. The Fund's investment adviser
is OppenheimerFunds, Inc. (the 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.
14 Oppenheimer Quest Small Cap Value Fund
<PAGE> 15
================================================================================
1. SIGNIFICANT
ACCOUNTING POLICIES
(CONTINUED)
-----------------------------------------------------------------------
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 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. Interest income is accrued on a daily
basis. 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.
================================================================================
2. SHARES OF
BENEFICIAL INTEREST
The Fund has authorized an unlimited number of $.01 par value shares of
beneficial interest. Transactions in shares of beneficial interest were
as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED APRIL 30, 1997 YEAR ENDED OCTOBER 31, 1996
--------------------------------- --------------------------------
SHARES AMOUNT SHARES AMOUNT
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 1,221,886 $22,526,874 1,937,231 $ 35,893,630
Dividends and distributions reinvested 702,966 12,330,027 420,196 7,076,100
Redeemed (1,188,960) (21,852,047) (3,676,057) (67,775,591)
---------- ----------- ----------- ------------
Net increase (decrease) 735,892 $13,004,854 (1,318,630) $(24,805,861)
========== =========== =========== ============
---------------------------------------------------------------------------------------------------------------------------
Class B:
Sold 619,657 $11,247,279 551,514 $ 10,124,916
Dividends and distributions reinvested 224,295 3,875,822 78,798 1,315,750
Redeemed (255,145) (4,593,300) (362,432) (6,578,696)
---------- ----------- ----------- ------------
Net increase 588,807 $10,529,801 267,880 $ 4,861,970
========== =========== =========== ============
---------------------------------------------------------------------------------------------------------------------------
Class C:
Sold 241,149 $ 4,366,247 389,343 $ 7,061,411
Dividends and distributions reinvested 98,869 1,705,499 31,101 518,457
Redeemed (216,683) (3,861,476) (247,719) (4,538,881)
---------- ----------- ----------- ------------
Net increase 123,335 $ 2,210,270 172,725 $ 3,040,987
========== =========== =========== ============
</TABLE>
15 Oppenheimer Quest Small Cap Value Fund
<PAGE> 16
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
================================================================================
3. UNREALIZED GAINS AND
LOSSES ON INVESTMENTS
At April 30, 1997, net unrealized appreciation on investments of
$7,318,742 was composed of gross appreciation of $16,168,910, and gross
depreciation of $8,850,168.
================================================================================
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% of the first $400 million of average annual net assets, 0.90% of
the next $400 million, and 0.85% of average annual net assets over $800
million. 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.
The Manager pays OpCap Advisors (the Sub-Adviser) based on the
fee schedule set forth in the Prospectus. For the six months ended April
30, 1997, the Manager paid $311,823 to the Sub-Adviser. On February 13,
1997 PIMCO Advisors L.P., signed a definitive agreement with Oppenheimer
Group, Inc. and its subsidiary Oppenheimer Financial Corp. for PIMCO
Advisors L.P. and its affiliate, Thomson Advisory Group, Inc., to
acquire the one-third managing general partner interest in Oppenheimer
Capital (the parent of OpCap Advisors) and the 1.0% general interest in
Oppenheimer Capital L.P.
For the six months ended April 30, 1997, commissions (sales
charges paid by investors) on sales of Class A shares totaled $219,650,
of which $88,278 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 $280,200
and $28,983, of which $18,682 and $1,191, respectively, were paid to an
affiliated broker/dealer. During the six months ended April 30, 1997,
OFDI received contingent deferred sales charges of $37,115 and $2,184,
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 six months ended April 30, 1997,
the Fund paid OFS $92,190.
Under a proposed Distribution and Service Plan for Class A
shares (that was approved by the Board of Trustees at a meeting held
February 4, 1997 and by the shareholders of the Fund at a meeting held
May 19, 1997) OFDI is compensated for a portion of its costs incurred in
connection with the personal service and maintenance of accounts that
hold Class A shares. Under the Plan, the Fund pays an annual
asset-based sales charge to OFDI of 0.25% per year on Class A shares.
The Fund also pays a service fee to OFDI of 0.25% per year. Both fees
are computed on the average annual net assets of Class A shares of the
Fund, determined as of the close of each regular business day. OFDI uses
all of the service fee and a portion of the asset-based sales charge to
compensate brokers, dealers, banks and other financial institutions
quarterly for providing personal service and maintenance of accounts of
their customers that hold Class A shares. OFDI retains the balance of
the asset-based sales charge to reimburse itself for its other
expenditures under the Plan. During the six months ended April 30, 1997,
OFDI paid $53,445 to an affiliated broker/dealer as compensation for
Class A personal service and maintenance expenses and retained $51,924
as compensation for Class A sales commissions and service fee advances,
as well as financing costs.
Under proposed Distribution and Service Plans for Class B and
C shares (that were approved by the Board of Trustees at a meeting held
February 4, 1997 and by the shareholders of the Fund at a meeting held
May 19, 1997) OFDI is compensated 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. 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, 1997, OFDI paid
$5,805 and $9,460, respectively, to an affiliated broker/dealer as
compensation for Class B and Class C personal service and maintenance
expenses and retained $147,177 and $32,782, respectively, as
compensation for Class B and Class C sales commissions and service fee
advances, as well as financing costs. At April 30, 1997, OFDI had
incurred unreimbursed expenses of $238,731 for Class B and $51,130 for
Class C.
16 Oppenheimer Quest Small Cap Value Fund
<PAGE> 17
================================================================================
5. ILLIQUID AND RESTRICTED
SECURITIES
At April 30, 1997, investments in securities included issues that are
illiquid or restricted. Restricted 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. A security may be considered illiquid if it lacks a
readily-available market or if its valuation has not changed for a
certain period of time. The Fund intends to invest no more than 10% of
its net assets (determined at the time of purchase and reviewed from
time to time) in illiquid or restricted securities. Certain restricted
securities, eligible for resale to qualified institutional investors,
are not subject to that limit. The aggregate value of illiquid or
restricted securities subject to this limitation at April 30, 1997 was
$3,875,913, which represents 2.36% of the Fund's net assets. Information
concerning restricted securities is as follows:
<TABLE>
<CAPTION>
VALUATION PER UNIT
SECURITY ACQUISITION DATES COST PER UNIT AS OF APRIL 30, 1997
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
BONDS:
Security Capital Realty, Inc., 12% Cv. Sub. Debs., 6/30/14 7/1/94 94.26% 116.40%
----------------------------------------------------------------------------------------------------------------------------
Security Capital Realty, Inc., 12% Cv. Sub. Debs. Interest
Shares, 6/30/14 1/1/95--12/31/96 100.00 100.00
STOCKS:
Security Capital Realty, Inc. 7/29/93--1/19/94 $683.92 $1,217.50
</TABLE>
17 Oppenheimer Quest Small Cap Value Fund
<PAGE> 18
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
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 SHAREHOLDER
SERVICING AGENT
OppenheimerFunds Services
================================================================================
CUSTODIAN OF PORTFOLIO
SECURITIES
State Street Bank and Trust Company
================================================================================
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
================================================================================
LEGAL COUNSEL
Gordon Altman Butowsky Weitzen Shalov & Wein
The financial statements included herein have been taken from the
records of the Fund without examination by the independent
accountants. This is a copy of a report to shareholders of
Oppenheimer Quest 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, are not
insured by the FDIC or any other agency, and involve investment risks,
including possible loss of the principal amount invested.
18 Oppenheimer Quest Small Cap Value Fund
<PAGE> 19
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 3 million shareholder accounts and more than
$60 billion under OppenheimerFunds' 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
adviser 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>
====================================================================================================================================
REAL ASSET FUNDS
Real Asset Fund Gold & Special Minerals Fund
====================================================================================================================================
STOCK FUNDS
Developing Markets Fund Growth Fund
Global Emerging Growth Fund Global Fund
Enterprise Fund Quest Global Value Fund
International Growth Fund Disciplined Value Fund
Discovery Fund Oppenheimer Fund
Quest Small Cap Value Fund Value Stock Fund
Capital Appreciation Fund(2) Quest Value Fund
Quest Capital Value Fund
====================================================================================================================================
STOCK & BOND FUNDS
Main Street Income & Growth Fund Equity Income Fund
Quest Opportunity Value Fund Disciplined Allocation Fund
Total Return Fund Multiple Strategies Fund(3)
Quest Growth & Income Value Fund Strategic Income & Growth Fund
Global Growth & Income Fund Bond Fund for Growth
====================================================================================================================================
BOND FUNDS
International Bond Fund Bond Fund
High Yield Fund U.S. Government Trust
Champion Income Fund Limited-Term Government Fund
Strategic Income Fund
====================================================================================================================================
MUNICIPAL FUNDS
California Municipal Fund(4) Insured Municipal Fund
Florida Municipal Fund(4) Intermediate Municipal Fund
New Jersey Municipal Fund(4)
New York Municipal Fund(4) Rochester Division
Pennsylvania Municipal Fund(4) Rochester Fund Municipals
Municipal Bond Fund Limited Term New York Municipal Fund
====================================================================================================================================
MONEY MARKET FUNDS(5)
Money Market Fund Cash Reserves
====================================================================================================================================
LIFESPAN
Growth Fund Income Fund
Balanced 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. On 12/18/96, the Fund's name was changed from "Target Fund."
3. On 3/6/97, the Fund's name was changed from "Asset Allocation Fund."
4. Available only to investors in certain states.
5. An investment in money market funds is neither insured nor
guaranteed by the U.S. government and there can be no assurance that a
money market fund will be able to maintain a stable net asset value of
$1.00 per share.
Oppenheimer funds are distributed by OppenheimerFunds Distributor,
Inc., Two World Trade Center, New York, NY 10048-0203.
(C) Copyright 1997 OppenheimerFunds, Inc. All rights reserved.
19 Oppenheimer Quest Small Cap Value Fund
<PAGE> 20
INFORMATION
GENERAL INFORMATION
Monday-Friday 8:30 a.m.-9 p.m. ET
Saturday 10 a.m.-2 p.m. ET
1-800-525-7048
TELEPHONE TRANSACTIONS
Monday-Friday 8:30 a.m.-8 p.m. ET
1-800-852-8457
PHONELINK
24 hours a day, automated
information and transactions
1-800-533-3310
TELECOMMUNICATIONS DEVICE
FOR THE DEAF (TDD)
Monday-Friday 8:30 a.m.-8 p.m. ET
1-800-843-4461
OPPENHEIMERFUNDS
INFORMATION HOTLINE
24 hours a day, timely and insightful
messages on the economy and
issues that affect your investments
1-800-835-3104
RS0251.001.0497 June 30, 1997
[PHOTO]
Customer Service Representative
OppenheimerFunds Services
"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 a
toll-free phone call away. They can provide information about your
account 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.
[OPPENHEIMERFUNDS LOGO]
OppenheimerFunds Distributor, Inc.
P.O. Box 5270
Denver, CO 80217-5270
- -------------------
Bulk Rate
U.S. Postage
PAID
Permit No. 469
Denver, CO
- -------------------
