--------------------------------
Semiannual Report April 30, 1998
--------------------------------
OPPENHEIMER
Quest Balanced
Value Fund
[Graphic Omitted]
[Logo]
OppenheimerFunds(SM)
THE RIGHT WAY TO INVEST
<PAGE>
Contents
3 President's Letter
4 Fund Performance
6 An Interview
with the Fund's
Manager
9 Statement of
Investments
12 Statement of
Assets and
Liabilities
14 Statement of
Operations
15 Statements of
Changes in
Net Assets
16 Financial Highlights
19 Notes to Financial
Statements
25 Officers and
Trustees
28 Information and
Services
Report highlights
- --------------------------------------------------------------------------------
o The Fund's name has changed from Oppenheimer Quest Growth & Income Value Fund
to Oppenheimer Quest Balanced Value Fund to more accurately reflect the way the
Fund is managed. The Fund has also adopted a non-fundamental investment policy
to invest at least 25% of its total assets in fixed-income senior securities,
and at least 25% of its total assets in equity securities.
- ---------------------------------------
Cumulative Total Returns
- ---------------------------------------
For the 6-Month Period
Ended 4/30/98
Class A
Without With
Sales Chg.(1) Sales Chg.(2)
- ---------------------------------------
20.88% 13.93%
- ---------------------------------------
Class B
Without With
Sales Chg.(1) Sales Chg.(2)
- ---------------------------------------
20.47% 15.47%
- ---------------------------------------
Class C
Without With
Sales Chg.(1) Sales Chg.(2)
- ---------------------------------------
20.49% 19.49%
- ---------------------------------------
Total returns include changes 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.
(1). Includes changes in net asset value per share without deducting any sales
charges. This performance is not annualized.
(2). Class A returns include the current maximum initial sales charge of 5.75%.
Class B returns include the applicable contingent deferred sales charge of 5%.
Class C returns include the applicable contingent deferred sales charge of 1%.
An explanation of the different performance calculations 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 0.15% asset-based sales
charge. This performance is not annualized.
OppenheimerFunds, Inc. became the Fund's advisor on 11/22/95. The Fund's
subadvisor is OpCap Advisors, which was the Fund's advisor prior to 11/22/95.
The portfolio manager is employed by the Fund's subadvisor.
2 Oppenheimer Quest Balanced Value Fund
<PAGE>
[Photo Omitted]
Bridget A. Macaskill
President
Oppenheimer
Quest Balanced
Value Fund
Dear shareholder,
- --------------------------------------------------------------------------------
As we move further into 1998, we remain impressed by the remarkable resilience
of the financial markets. Recent efforts by the United States to help support
the Japanese Yen have inspired hope that the fallout of the Asian economic
crisis can be contained. In general, the U.S. and world markets have continued
to build wealth for investors at a virtually unprecedented pace.
At OppenheimerFunds, we are pleased to help our fund shareholders
participate in the potential rewards of today's markets, but we also recognize
that this rate of growth cannot last forever. Because no one can predict exactly
when the next correction or bear market might occur, we think it is prudent to
continually identify, evaluate and manage the risks that may affect our fund
shareholders.
We believe that one of the leading risks facing investors today is that
stock valuations are at the high end of their historical range, while U.S.
corporate earnings growth is slowing. Given these facts, we believe it is
unlikely that stocks will sustain the growth rate of the past three years. Stock
prices could continue trading near current levels until earnings "catch up," or
there could be a market correction. However, we believe that either scenario
would be only a temporary pause on the way to potentially greater long-term
gains.
We are also examining the potential economic effects of the "millennium
problem" that may render many computer systems unable to recognize the year 2000
when it arrives. Solving this problem has required companies to divert
substantial human and financial resources from their core businesses, possibly
constraining global economic growth during 1999 and 2000.
For our part, we can report that OppenheimerFunds has made solid progress
toward ensuring that our shareholder accounting systems are fully "year 2000
compliant," and that all shareholder accounts will make a seamless transition
into the 21st century.
We encourage you to meet with your financial advisor to discuss how a
possible market correction or the millennium problem may affect your
investments. Together, you can prepare your investment portfolio for the
challenges and opportunities of the new century.
Sincerely,
/s/ Bridget A. Macaskill
Bridget A. Macaskill
May 21, 1998
3 Oppenheimer Quest Balanced Value Fund
<PAGE>
- ---------------------------------------
Avg Annual Total Returns
- ---------------------------------------
For the Periods Ended 3/31/98(1)
Class A
Since
1 year 5 year Inception
- ---------------------------------------
34.68% 17.41% 16.02%
- ---------------------------------------
Class B
Since
1 year 5 year Inception
- ---------------------------------------
37.00% N/A 18.77%
- ---------------------------------------
Class C
Since
1 year 5 year Inception
- ---------------------------------------
41.07% N/A 18.88%
- ---------------------------------------
- ---------------------------------------
Cumulative Total Return
- ---------------------------------------
For the Period Ended 3/31/98(1)
Class A
5 year
- ---------------------------------------
123.11% $22,311(3)
- ---------------------------------------
Performance update
- --------------------------------------------------------------------------------
Oppenheimer Quest Balanced Value Fund's Class A shares provided a cumulative
total return of 20.88%, without sales charges, for the six-month period ended
April 30, 1998.(2)
[The following information was represented by a line graph in the printed
materials.]
Oppenheimer Quest
Balanced Value S & P 500
Fund Index
- --------------------------------------------------------------------------------
3/93 10000.0 10000.0
- --------------------------------------------------------------------------------
6/93 10198.0 10048.7
- --------------------------------------------------------------------------------
9/93 10299.8 10308.3
- --------------------------------------------------------------------------------
12/93 10900.4 10547.3
- --------------------------------------------------------------------------------
3/94 10656.5 10147.4
- --------------------------------------------------------------------------------
6/94 10921.9 10190.1
- --------------------------------------------------------------------------------
9/94 11258.1 10688.4
- --------------------------------------------------------------------------------
12/94 11023.4 10686.7
- --------------------------------------------------------------------------------
3/95 11903.1 11727.2
- --------------------------------------------------------------------------------
6/95 13091.5 12846.7
- --------------------------------------------------------------------------------
9/95 13740.7 13867.6
- --------------------------------------------------------------------------------
12/95 14155.1 14702.5
- --------------------------------------------------------------------------------
3/96 14734.5 16491.7
- --------------------------------------------------------------------------------
6/96 15259.8 16186.9
- --------------------------------------------------------------------------------
9/96 16058.6 16687.1
- --------------------------------------------------------------------------------
12/96 16696.4 18078.2
- --------------------------------------------------------------------------------
3/97 16566.2 18662.8
- --------------------------------------------------------------------------------
6/97 18529.5 21803.6
- --------------------------------------------------------------------------------
9/97 20257.9 23436.8
- --------------------------------------------------------------------------------
12/97 21873.5 24109.7
- --------------------------------------------------------------------------------
3/98 23673.0 27472.8
- --------------------------------------------------------------------------------
(1). Total returns include changes in share price and reinvestment of dividends
and capital gains distributions in a hypothetical investment for the periods
shown. Class A returns include the current maximum initial sales charge of
5.75%. Class A shares were first publicly offered on 11/1/91. The Fund's maximum
sales charge for Class A shares was lower prior to 11/24/95, so actual
performance may have been higher. Class B returns include the applicable
contingent deferred sales charge of 5% (1-year) and 2% (since inception on
9/1/93). Class C returns for the one-year result include the contingent deferred
sales charge of 1%. Class C shares have an inception date of 9/1/93. An
explanation of the different performance calculations 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 0.15% asset-based sales
charge.
4 Oppenheimer Quest Balanced Value Fund
<PAGE>
Asset Allocation(4)
[The following information was represented by a pie chart in the printed
materials.]
o Equities 70.0%
o Cash Equivalents 15.1
o Bonds 14.9
Portfolio review
- --------------------------------------------------------------------------------
Oppenheimer Quest Balanced Value Fund is for investors seeking tomorrow's growth
potential and today's income.
What We Look For
o Large, well-established companies that are undervalued by the market.
o Companies that fundamental analysis identifies as well-managed, solid
businesses.
o Dividend-paying stocks and income-producing bonds to generate sufficient
current income.
Top 10 Stock Holdings(4)
- --------------------------------------------------------------------------------
Philip Morris Cos. 4.4% Chase Manhattan Corp. 3.4%
- --------------------------------------------------------------------------------
Sprint Corp. 4.2 AFLAC, Inc. 3.2
- --------------------------------------------------------------------------------
McDonald's Corp. 4.2 EMC Corp. 3.1
- --------------------------------------------------------------------------------
Adaptec, Inc. 3.9 Lockheed Martin Corp. 3.1
- --------------------------------------------------------------------------------
General Instrument Corp. 3.4 Boeing Co. 3.1
- --------------------------------------------------------------------------------
(2). Includes changes 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.
(3). Results of a hypothetical $10,000 investment in Class A shares on March 31,
1993. The S&P 500 Index is a broad-based unmanaged stock index including daily
reinvestment of dividends, and cannot be purchased directly by investors. Past
performance does not guarantee future results.
(4). Portfolio is subject to change. Percentages are as of April 30, 1998 and
are based on total market value of investments.
5 Oppenheimer Quest Balanced Value Fund
<PAGE>
- --------------------------------------------------------------------------------
"We think that interest rates are likely to remain flat or increase..."
An interview with your Fund's manager
- --------------------------------------------------------------------------------
How has the Fund performed during the period?
We are pleased with the Fund's performance during this somewhat volatile market.
Oppenheimer Quest Balanced Value Fund's Class A shares provided a cumulative
total return of 20.88%, without sales charges, for the six-month period ended
April 30, 1998.(1)
What was the portfolio's mix of stocks, bonds and cash over the past six months?
As of April 30, the portfolio was composed of 70% stocks, 15% bonds and 15% cash
equivalents. Over the six-month period, this represents a significant increase
in cash and a substantial decrease in bonds.
In the stock portion of your portfolio, which investments contributed most to
performance?
During the past six months, the portfolio contained certain well-performing
stocks. One of the stand-outs was Sprint, the long-distance telephone company.
We've held Sprint for a long time because their core long-distance business is
very attractive, and we view their wireless network as the best in the business.
In addition, we believe that Sprint may be a takeover target when regional phone
companies are finally allowed to compete in the long-distance market.
Another of our holdings is General Instruments, the cable television
equipment company. General Instruments has invested hundreds of millions of
dollars over the past several years in the anticipated conversion to digital
television. The stock's price rose recently because investors expect the company
will soon begin to reap the rewards of the cable industry's move toward
digitally distributed television.
(1). Includes changes 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.
6 Oppenheimer Quest Balanced Value Fund
<PAGE>
[Photo Omitted]
Portfolio Management
Team (l to r)
Colin Glinsman
(Portfolio Manager)
Jeffrey C. Whittington
McDonald's, the fast-food restaurant chain, has been a relatively
poor-performing stock over the last couple of years, but it was one of the
portfolio's top performers in this six-month period. That's because it appears
that management has finally begun to restructure the company's domestic
operations at the same time that the company's overseas presence is growing.
Did any stocks disappoint you during the period?
Boeing, the aircraft company, has been disappointing because of a series of
management mis-steps related to their attempts to reduce the time it takes to
produce each aircraft to fill customer orders. While we don't think the
intrinsic value of the company has been affected, it has taken time to work
through these issues and Boeing's stock has lagged the overall market as a
result. However, our long-term view of Boeing remains very positive. Boeing is
the world's largest producer of aircraft, a leadership position that was
recently reinforced by their acquisition of former rival McDonnell Douglas.
Lockheed Martin has also lagged the market, but through no fault of the
company. Rather, because it is a conservative company with a slow-but-steady
growth rate, Lockheed Martin is not the sort of high-growth stock investors
tended to favor over the last six months. In a different market environment,
Lockheed Martin's steady results should help it perform above market averages.
7 Oppenheimer Quest Balanced Value Fund
<PAGE>
- --------------------------------------------------------------------------------
"...and that this will likely slow the stock market's continued rise."
An interview with your Fund's manager
- --------------------------------------------------------------------------------
How did you manage the bond portion of the portfolio?
For most of the period, the bond portion of the portfolio was heavily weighted
toward long-term corporate bonds. This position was based on our expectation
that interest rates would decline modestly over the period. This proved to be
the case, and, as a result, our bond portfolio produced excellent returns.
Toward the end of the six-month period, we substantially reduced our
investment in bonds. Yields on long-term bonds had fallen to the low end of
their historical range, so to protect principal, we shifted much of our bond
portfolio to shorter-dated instruments, including cash equivalents, such as
commercial paper.
In addition, our corporate bond portfolio contained very little exposure
to new high-yield issues. We avoided the below-investment-grade sector of the
market because many of the bonds offered during the period were issued by
start-up companies and technology companies, which generally are not the types
of investments we seek.
What is your outlook?
We think that interest rates are likely to remain flat or increase, and that
this will likely slow the stock market's continued rise. Accordingly, we have
structured the portfolio for a stable-to-rising interest-rate environment and to
help protect principal, we have moved some of the portfolio into shorter-dated
bonds. In our view, this prudent approach to investing should serve our
shareholders well in the months ahead.
8 Oppenheimer Quest Balanced Value Fund
<PAGE>
- --------------------------------------------------------------------------------
Statement of Investments April 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
Market Value
Shares See Note 1
================================================================================
Common Stocks--69.7%
- --------------------------------------------------------------------------------
Basic Materials--3.0%
- --------------------------------------------------------------------------------
Chemicals--3.0%
Dow Chemical Co. 50,000 $4,834,375
- --------------------------------------------------------------------------------
Consumer Cyclicals--10.7%
- --------------------------------------------------------------------------------
Leisure & Entertainment--8.4%
AMR Corp.(1) 20,000 3,047,500
- --------------------------------------------------------------------------------
McDonald's Corp. 110,000 6,806,250
- --------------------------------------------------------------------------------
Time Warner, Inc. 50,000 3,925,000
-----------
13,778,750
- --------------------------------------------------------------------------------
Media--2.3%
Reed International plc, Sponsored ADR 100,000 3,675,000
- --------------------------------------------------------------------------------
Consumer Non-Cyclicals--8.0%
- --------------------------------------------------------------------------------
Healthcare/Supplies & Services--3.1%
Becton, Dickinson & Co. 26,000 1,810,250
- --------------------------------------------------------------------------------
Tenet Healthcare Corp.(1) 85,000 3,182,187
-----------
4,992,437
- --------------------------------------------------------------------------------
Household Goods--0.6%
Kimberly-Clark Corp. 20,000 1,015,000
- --------------------------------------------------------------------------------
Tobacco--4.3%
Philip Morris Cos., Inc. 190,000 7,089,375
- --------------------------------------------------------------------------------
Energy--3.8%
- --------------------------------------------------------------------------------
Oil-Integrated--3.8%
PanCanadian Petroleum Ltd.(1) 200,000 3,180,968
- --------------------------------------------------------------------------------
Unocal Corp. 75,000 3,070,312
-----------
6,251,280
- --------------------------------------------------------------------------------
Financial--8.1%
- --------------------------------------------------------------------------------
Banks--3.4%
Chase Manhattan Corp. (New) 40,000 5,542,500
- --------------------------------------------------------------------------------
Diversified Financial--1.5%
Green Tree Financial Corp. 60,000 2,445,000
- --------------------------------------------------------------------------------
Insurance--3.2%
AFLAC, Inc. 80,000 5,200,000
- --------------------------------------------------------------------------------
Industrial--8.3%
- --------------------------------------------------------------------------------
Industrial Services--2.1%
H & R Block, Inc. 75,000 3,375,000
9 Oppenheimer Quest Balanced Value Fund
<PAGE>
- --------------------------------------------------------------------------------
Statement of Investments (Unaudited) (Continued)
- --------------------------------------------------------------------------------
Market Value
Shares See Note 1
- --------------------------------------------------------------------------------
Manufacturing--1.7%
Caterpillar, Inc. 25,000 $1,423,438
- --------------------------------------------------------------------------------
Minnesota Mining & Manufacturing Co. 15,000 1,415,625
-----------
2,839,063
- --------------------------------------------------------------------------------
Transportation--4.5%
Canadian Pacific Ltd. (New) 140,000 4,121,250
- --------------------------------------------------------------------------------
Union Pacific Corp. 60,000 3,285,000
-----------
7,406,250
- --------------------------------------------------------------------------------
Technology--23.6%
- --------------------------------------------------------------------------------
Aerospace/Defense--6.1%
Boeing Co. 100,000 5,006,250
- --------------------------------------------------------------------------------
Lockheed Martin Corp. 45,000 5,011,875
-----------
10,018,125
- --------------------------------------------------------------------------------
Computer Hardware--7.0%
Adaptec, Inc.(1) 270,000 6,395,625
- --------------------------------------------------------------------------------
EMC Corp.(1) 110,000 5,073,750
-----------
11,469,375
- --------------------------------------------------------------------------------
Electronics--5.0%
Intel Corp. 20,000 1,616,250
- --------------------------------------------------------------------------------
Motorola, Inc. 60,000 3,337,500
- --------------------------------------------------------------------------------
Texas Instruments, Inc. 50,000 3,203,125
-----------
8,156,875
- --------------------------------------------------------------------------------
Telecommunications/Technology--5.5%
General Instrument Corp.(1) 250,000 5,609,375
- --------------------------------------------------------------------------------
General Semiconductor, Inc.(1) 250,000 3,421,875
-----------
9,031,250
- --------------------------------------------------------------------------------
Utilities--4.2%
- --------------------------------------------------------------------------------
Telephone Utilities--4.2%
Sprint Corp. 100,000 6,831,250
-----------
Total Common Stocks (Cost $97,943,967) 113,950,905
10 Oppenheimer Quest Balanced Value Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Face Market Value
Amount See Note 1
======================================================================================================
<S> <C> <C>
Non-Convertible Corporate Bonds and Notes--12.8%
- ------------------------------------------------------------------------------------------------------
American Standard Cos., Inc., 7.375% Sr. Nts., 2/1/08 $2,000,000 $ 1,945,000
- ------------------------------------------------------------------------------------------------------
AmeriServe Food Distribution, Inc., 10.125% Sr. Sub, Nts., 7/15/07 1,000,000 1,065,000
- ------------------------------------------------------------------------------------------------------
Apoca, Inc., 9.25% Sr. Sub. Nts., 3/15/08(2) 3,000,000 3,015,000
- ------------------------------------------------------------------------------------------------------
PharMerica, Inc., 8.375% Sr. Sub. Nts., 4/1/08(2) 6,000,000 6,030,000
- ------------------------------------------------------------------------------------------------------
Playtex Family Products Corp., 9% Sr. Sub. Nts., 12/15/03 2,500,000 2,562,500
- ------------------------------------------------------------------------------------------------------
Tenet Healthcare Corp.:
8% Sr. Nts., 1/15/05 2,000,000 2,060,000
8.625% Sr. Unsec. Nts., 12/1/03 2,500,000 2,659,253
- ------------------------------------------------------------------------------------------------------
Time Warner, Inc., 9.125% Debs., 1/15/13 500,000 604,082
- ------------------------------------------------------------------------------------------------------
Triton Energy Ltd., 8.75% Sr. Nts., 4/15/02 1,000,000 1,045,288
------------
Total Non-Convertible Corporate Bonds and Notes (Cost $20,771,782) 20,986,123
======================================================================================================
Convertible Corporate Bonds and Notes--2.0%
- ------------------------------------------------------------------------------------------------------
Arbor Software Corp., 4.50% Cv. Sub. Nts., 3/15/05(2) (Cost $3,115,000) 3,000,000 3,247,500
======================================================================================================
Short-Term Notes--15.0%(3)
- ------------------------------------------------------------------------------------------------------
BP America Corp., 5.43%, 5/1/98 5,000,000 5,000,000
- ------------------------------------------------------------------------------------------------------
Ford Motor Credit Co., 5.50%, 5/7/98 5,751,000 5,745,728
- ------------------------------------------------------------------------------------------------------
Household Finance Corp., 5.52%, 5/5/98 6,000,000 5,996,320
- ------------------------------------------------------------------------------------------------------
IBM Credit Corp., 5.49%, 5/13/98 7,900,000 7,885,543
------------
Total Short-Term Notes (Cost $24,627,591) 24,627,591
- ------------------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $146,458,340) 99.5% 162,812,119
- ------------------------------------------------------------------------------------------------------
Other Assets Net of Liabilities 0.5 769,528
------------ ------------
Net Assets 100.0% $163,581,647
============ ============
</TABLE>
(1). Non-income producing security.
(2). Represents securities sold under Rule 144A, which are exempt from
registration under the Securities Act of 1933, as amended. These securities have
been determined to be liquid under guidelines established by the Board of
Trustees. These securities amount to $12,292,500 or 7.51% of the Fund's net
assets as of April 30, 1998.
(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.
11 Oppenheimer Quest Balanced Value Fund
<PAGE>
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities April 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
====================================================================================
Assets
Investments, at value (cost $146,458,340)--see accompanying statement $162,812,119
- ------------------------------------------------------------------------------------
Receivables:
Shares of beneficial interest sold 608,523
Interest and dividends 454,624
- ------------------------------------------------------------------------------------
Other 28,839
------------
Total assets 163,904,105
====================================================================================
Liabilities
Bank overdraft 78,178
- ------------------------------------------------------------------------------------
Payables and other liabilities:
Shares of beneficial interest redeemed 183,015
Distribution and service plan fees 32,910
Transfer agent and accounting services fees 13,058
Other 15,297
------------
Total liabilities 322,458
====================================================================================
Net Assets $163,581,647
============
====================================================================================
Composition of Net Assets
Par value of shares of beneficial interest $ 111,124
- ------------------------------------------------------------------------------------
Additional paid-in capital 130,250,082
- ------------------------------------------------------------------------------------
Undistributed net investment income 212,850
- ------------------------------------------------------------------------------------
Accumulated net realized gain on investment transactions 16,653,812
- ------------------------------------------------------------------------------------
Net unrealized appreciation on investments--Note 3 16,353,779
------------
Net assets $163,581,647
============
</TABLE>
12 Oppenheimer Quest Balanced Value Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
======================================================================================
Net Asset Value Per Share
Class A Shares:
Net asset value and redemption price per share (based on net assets
of $110,770,834 and 7,510,856 shares of beneficial interest outstanding) $14.75
Maximum offering price per share (net asset value plus sales charge
of 5.75% of offering price) $15.65
- --------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net assets
of $41,545,562 and 2,833,198 shares of beneficial interest outstanding) $14.66
- --------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net assets
of $11,265,251 and 768,338 shares of beneficial interest outstanding) $14.66
</TABLE>
See accompanying Notes to Financial Statements.
13 Oppenheimer Quest Balanced Value Fund
<PAGE>
- --------------------------------------------------------------------------------
Statement of Operations For the Six Months Ended April 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
==================================================================================
Investment Income
Interest $ 1,441,816
- ----------------------------------------------------------------------------------
Dividends (net of foreign withholding taxes of $3,588) 473,684
-----------
Total income 1,915,500
==================================================================================
Expenses
Management fees--Note 4 565,993
- ----------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 184,912
Class B 160,784
Class C 42,808
- ----------------------------------------------------------------------------------
Transfer agent and accounting services fees--Note 4 90,354
- ----------------------------------------------------------------------------------
Registration and filing fees 31,219
- ----------------------------------------------------------------------------------
Shareholder reports 17,504
- ----------------------------------------------------------------------------------
Trustees' fees and expenses 12,309
- ----------------------------------------------------------------------------------
Legal and auditing fees 5,957
- ----------------------------------------------------------------------------------
Custodian fees and expenses 4,666
- ----------------------------------------------------------------------------------
Other 7,647
-----------
Total expenses 1,124,153
==================================================================================
Net Investment Income 791,347
==================================================================================
Realized and Unrealized Gain
Net realized gain on investments 16,674,162
- ----------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments 7,649,877
-----------
Net realized and unrealized gain 24,324,039
==================================================================================
Net Increase in Net Assets Resulting from Operations $25,115,386
===========
</TABLE>
See accompanying Notes to Financial Statements.
14 Oppenheimer Quest Balanced Value Fund
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended Year Ended
April 30, 1998 October 31,
(Unaudited) 1997
======================================================================================
<S> <C> <C>
Operations
Net investment income $ 791,347 $ 1,293,749
- --------------------------------------------------------------------------------------
Net realized gain 16,674,162 14,740,001
- --------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation 7,649,877 2,797,779
------------ ------------
Net increase in net assets resulting from operations 25,115,386 18,831,529
======================================================================================
Dividends and Distributions to Shareholders
Dividends from net investment income:
Class A (665,062) (922,387)
Class B (138,062) (181,875)
Class C (37,203) (47,948)
- --------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (10,300,115) (4,518,417)
Class B (3,423,832) (1,310,410)
Class C (921,807) (319,471)
======================================================================================
Beneficial Interest Transactions
Net increase in net assets resulting from beneficial
interest transactions--Note 2:
Class A 24,442,881 22,268,436
Class B 13,514,047 9,713,355
Class C 3,947,695 3,228,726
======================================================================================
Net Assets
Total increase 51,533,928 46,741,538
- --------------------------------------------------------------------------------------
Beginning of period 112,047,719 65,306,181
------------ ------------
End of period (including undistributed net investment
income of $212,850 and $261,830, respectively) $163,581,647 $112,047,719
============ ============
</TABLE>
See accompanying Notes to Financial Statements.
15 Oppenheimer Quest Balanced Value Fund
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class A
---------------------------------------------------------------------------
Six Months Ended
April 30, 1998 Year Ended October 31,
(Unaudited) 1997 1996(2) 1995
====================================================================================================================================
<S> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $13.99 $12.48 $10.92 $10.09
- ------------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income .09 .20 .23 .27(3)
Net realized and unrealized gain 2.56 2.65 2.05 1.27
------ ------ ------ ------
Total income from investment operations 2.65 2.85 2.28 1.54
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.10) (.19) (.22) (.29)
Distributions from net realized gain (1.79) (1.15) (.50) (.42)
------ ------ ------ ------
Total dividends and distributions to shareholders (1.89) (1.34) (.72) (.71)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $14.75 $13.99 $12.48 $10.92
====== ====== ====== ======
====================================================================================================================================
Total Return, at Net Asset Value(4) 20.88% 25.18% 21.84% 16.35%
====================================================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in thousands) $110,771 $79,751 $49,322 $37,082
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $93,394 $61,618 $43,428 $33,397
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 1.37%(6) 1.68% 2.03% 2.60%(5)
Expenses 1.50%(6) 1.58% 1.90%(7) 1.99%(5)
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(8) 69.2% 89.2% 124.2% 130.0%
Average brokerage commission rate(9) $0.0572 $0.0500 $0.0548 --
</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
advisor 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.
16 Oppenheimer Quest Balanced Value Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class B
----------------------------------------- -----------------------
Six Months Ended
April 30, 1998
1994 1993 (Unaudited)
=======================================================================================================================
<S> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $11.24 $10.80 $13.92
- -----------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income .32(3) .30(3) .05
Net realized and unrealized gain .55 .73 2.54
------ ------ ------
Total income from investment operations .87 1.03 2.59
- -----------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.32) (.26) (.06)
Distributions from net realized gain (1.70) (.33) (1.79)
------ ------ ------
Total dividends and distributions to shareholders (2.02) (.59) (1.85)
- -----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.09 $11.24 $14.66
====== ====== ======
=======================================================================================================================
Total Return, at Net Asset Value(4) 8.64% 9.93% 20.47%
=======================================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in thousands) $30,576 $28,466 $41,546
- -----------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $29,112 $23,771 $32,511
- -----------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 3.16%(5) 2.66%(5) 0.77%(6)
Expenses 1.86%(5) 1.90%(5) 2.10%(6)
- -----------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(8) 113.0% 192.0% 69.2%
Average brokerage commission rate(9) -- -- $0.0572
</TABLE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------
Year Ended October 31,
1997 1996(2) 1995 1994 1993
=============================================================================================================================
<S> <C> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $12.42 $10.88 $10.07 $11.23 $11.21
- -----------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income .15 .17 .19(3) .25(3) .04(3)
Net realized and unrealized gain 2.62 2.03 1.28 .56 .05
------ ------ ------ ------ ------
Total income from investment operations 2.77 2.20 1.47 .81 .09
- -----------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.12) (.16) (.24) (.27) (.07)
Distributions from net realized gain (1.15) (.50) (.42) (1.70) --
------ ------ ------ ------ ------
Total dividends and distributions to shareholders (1.27) (.66) (.66) (1.97) (.07)
- -----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $13.92 $12.42 $10.88 $10.07 $11.23
====== ====== ====== ====== ======
=============================================================================================================================
Total Return, at Net Asset Value(4) 24.55% 21.07% 15.65% 7.96% 0.81%
=============================================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in thousands) $25,609 $13,175 $7,623 $2,928 $319
- -----------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $19,230 $10,097 $4,846 $1,586 $228
- -----------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 1.09% 1.40% 1.71%(5) 2.53%(5) 1.83%(5)(6)
Expenses 2.17% 2.53% 2.59%(5) 2.47%(5) 2.49%(5)(6)
- -----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(8) 89.2% 124.2% 130.0% 113.0% 192.0%
Average brokerage commission rate(9) $0.0500 $0.0548 -- -- --
</TABLE>
(5). During the periods presented above, the former Advisor voluntarily waived a
portion of its fees. If such waivers had not been in effect, the ratios of net
investment income to average net assets and the ratios of expenses to average
net assets would have been 2.57% and 2.02%, respectively, for Class A, 1.73% and
2.57%, respectively, for Class B and 1.43% and 2.84%, respectively, for Class C,
for the year ended October 31, 1995, 2.70% and 2.32%, respectively, for Class A,
2.07% and 2.93%, respectively, for Class B and 1.91% and 3.10%, respectively,
for Class C, for the year ended October 31, 1994, and 2.38% and 2.18%,
respectively, for Class A, 1.44% and 2.88%, respectively, for Class B and 1.80%
and 2.87%, respectively, for Class C, for the year or period ended October 31,
1993.
(6). Annualized.
17 Oppenheimer Quest Balanced Value Fund
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class C
-----------------------------------------------------------------------
Six Months
Ended
April 30,
1998 Year Ended October 31,
(Unaudited) 1997 1996(2) 1995
=========================================================================================================================
<S> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $13.92 $12.43 $10.89 $10.07
- -------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income .05 .15 .17 .15(3)
Net realized and unrealized gain 2.54 2.62 2.02 1.30
------ ------ ------ ------
Total income from investment
operations 2.59 2.77 2.19 1.45
- -------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment
income (.06) (.13) (.15) (.21)
Distributions from net realized gain (1.79) (1.15) (.50) (.42)
------ ------ ------ ------
Total dividends and distributions
to shareholders (1.85) (1.28) (.65) (.63)
- -------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $14.66 $13.92 $12.43 $10.89
====== ====== ====== ======
=========================================================================================================================
Total Return, at Net Asset Value(4) 20.49% 24.51% 20.97% 15.38%
=========================================================================================================================
Ratios/Supplemental Data
Net assets, end of period
(in thousands) $11,265 $6,687 $2,809 $1,828
- -------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $8,658 $4,724 $2,200 $968
- -------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) 0.78%(6) 1.09% 1.40% 1.39%(5)
Expenses 2.10%(6) 2.17% 2.53% 2.88%(5)
- -------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(8) 69.2% 89.2% 124.2% 130.0%
Average brokerage commission rate(9) $0.0572 $0.0500 $0.0548 --
</TABLE>
<TABLE>
<CAPTION>
1994 1993(1)
================================================================================
<S> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $11.23 $11.21
- --------------------------------------------------------------------------------
Income from investment operations:
Net investment income .24(3) .04(3)
Net realized and unrealized gain .56 .05
------ ------
Total income from investment
operations .80 .09
- --------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment
income (.26) (.07)
Distributions from net realized gain (1.70) --
------ ------
Total dividends and distributions
to shareholders (1.96) (.07)
- --------------------------------------------------------------------------------
Net asset value, end of period $10.07 $11.23
====== ======
================================================================================
Total Return, at Net Asset Value(4) 7.91% 0.81%
================================================================================
Ratios/Supplemental Data
Net assets, end of period
(in thousands) $455 $102
- --------------------------------------------------------------------------------
Average net assets (in thousands) $298 $100
- --------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) 2.39%(5) 2.18%(5)(6)
Expenses 2.62%(5) 2.49%(5)(6)
- --------------------------------------------------------------------------------
Portfolio turnover rate(8) 113.0% 192.0%
Average brokerage commission rate(9) -- --
</TABLE>
(7). The expense ratio reflects the effect of gross expenses paid indirectly by
the Fund.
(8). The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities owned
during the period. Securities with a maturity or expiration date at the time of
acquisition of one year or less are excluded from the calculation. Purchases and
sales of investment securities (excluding short-term securities) for the period
ended April 30, 1998 were $92,372,469 and $87,855,048, respectively.
(9). Total brokerage commissions paid on applicable purchases and sales of
portfolio securities for the period, divided by the total number of related
shares purchased and sold.
See accompanying Notes to Financial Statements.
18 Oppenheimer Quest Balanced Value Fund
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited)
- --------------------------------------------------------------------------------
================================================================================
1. Significant Accounting Policies
Oppenheimer Quest Balanced 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
operated under the name Oppenheimer Quest Growth & Income Value Fund through May
17, 1998. The Fund's investment objective is to seek to achieve a combination of
growth of capital and investment income with growth of capital as the primary
objective. The Fund seeks its investment objective through investments in
securities that are believed to be undervalued in the marketplace and to offer
the possibility of increased value. Ordinarily, the Fund invests its assets in
common stocks (with an emphasis on dividend paying stocks), preferred stocks,
securities convertible into common stock, and debt securities. The Fund's
investment advisor is OppenheimerFunds, Inc. (the Manager) and the Manager has
entered into a sub-advisory agreement with OpCap Advisors. 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 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 that class and exclusive voting
rights with respect to matters affecting that 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 an
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.
19 Oppenheimer Quest Balanced Value Fund
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited) (Continued)
- --------------------------------------------------------------------------------
================================================================================
1. Significant Accounting Policies(continued)
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 its 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 fiscal year in which 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.
20 Oppenheimer Quest Balanced Value Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
2. Shares of Beneficial Interest
The Fund has authorized an unlimited number of $.01 par value shares of
beneficial interest of each class. Transactions in shares of beneficial interest
were as follows:
<TABLE>
<CAPTION>
Six Months Ended April 30, 1998 Year Ended October 31, 1997
------------------------------- ----------------------------
Shares Amount Shares Amount
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 2,456,858 $ 34,497,267 2,557,883 $ 33,165,870
Dividends and distributions
reinvested 810,365 10,499,470 445,487 5,194,062
Redeemed (1,456,180) (20,553,856) (1,256,481) (16,091,496)
------------ ------------ ------------ ------------
Net increase 1,811,043 $ 24,442,881 1,746,889 $ 22,268,436
============ ============ ============ ============
- ------------------------------------------------------------------------------------------------
Class B:
Sold 937,584 $13,004,656 904,241 $11,537,097
Dividends and distributions
reinvested 263,410 3,394,399 122,631 1,412,244
Redeemed (207,215) (2,885,008) (248,340) (3,235,986)
------------ ------------ ------------ ------------
Net increase 993,779 $ 13,514,047 778,532 $ 9,713,355
============ ============ ============ ============
- ------------------------------------------------------------------------------------------------
Class C:
Sold 279,788 $ 3,911,506 320,442 $4,096,151
Dividends and distributions
reinvested 70,620 909,309 30,289 350,561
Redeemed (62,486) (873,120) (96,289) (1,217,986)
------------ ------------ ------------ ------------
Net increase 287,922 $ 3,947,695 254,442 $ 3,228,726
============ ============ ============ ============
</TABLE>
================================================================================
3. Unrealized Gains and Losses on Investments
At April 30, 1998, net unrealized appreciation on investments of $16,353,779 was
composed of gross appreciation of $18,106,521, and gross depreciation of
$1,752,742.
21 Oppenheimer Quest Balanced Value Fund
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited) (Continued)
- --------------------------------------------------------------------------------
================================================================================
4. Management Fees and Other Transactions with Affiliates
Management fees paid to the Manager were in accordance with the investment
advisory agreement with the Fund, which provides for a fee of 0.85% of average
annual net assets. 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-Advisor) a monthly fee
based on the fee schedule set forth in the Prospectus. For the six months ended
April 30, 1998, the Manager paid $190,746 to the Sub-Advisor.
For the six months ended April 30, 1998, commissions (sales
charges paid by investors) on sales of Class A shares totaled $281,298, of which
$80,747 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 $337,963 and $29,061, respectively, of which $22,461 was
paid to an affiliated broker/dealer for Class B shares. During the six months
ended April 30, 1998, OFDI received contingent deferred sales charges of $22,572
upon redemption of Class B 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
$16.75 for each Fund shareholder account and reimburses OFS for its
out-of-pocket expenses. During the six months ended April 30, 1998, the Fund
paid OFS $58,397. Effective May 1, 1998, the Board of Trustees approved an
increase in the annual maintenance fee from $16.75 to $20.00 for each
shareholder account.
22 Oppenheimer Quest Balanced Value Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
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 shareholder accounts that hold Class A
shares. Under the Plan, the Fund pays an annual asset-based sales charge to OFDI
of 0.15% per year on Class A shares. The Fund also pays a service fee to OFDI of
0.25% per year. Each fee is 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, 1998, OFDI paid $4,754 to an affiliated broker/dealer
as compensation for Class A personal service and maintenance expenses.
The Fund has adopted Distribution and Service Plans for Class B
and C shares to compensate OFDI for its 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 for its services rendered in
distributing Class B and Class C shares. OFDI also receives a service fee of
0.25% per year to compensate dealers for providing personal services for
accounts that hold Class B and Class C shares. Each fee is computed on the
average annual net assets of Class B or Class C shares, determined as of the
close of each regular business day. During the six months ended April 30, 1998,
OFDI retained $134,759 and $24,970, respectively, as compensation for Class B
and Class C sales commissions and service fee advances, as well as financing
costs. If either Plan is terminated by the Fund, the Board of Trustees may allow
the Fund to continue payments of the asset-based sales charge to OFDI for
distributing shares before the Plan was terminated. At April 30, 1998, OFDI had
incurred excess distribution and servicing costs of $609,665 for Class B and
$76,324 for Class C.
23 Oppenheimer Quest Balanced Value Fund
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited) (Continued)
- --------------------------------------------------------------------------------
================================================================================
5. Bank Borrowings
The Fund may borrow from a bank for temporary or emergency purposes including,
without limitation, funding of shareholder redemptions provided asset coverage
for borrowings exceeds 300%. The Fund has entered into an agreement which
enables it to participate with other Oppenheimer funds in an unsecured line of
credit with a bank, which permits borrowings up to $400 million, collectively.
Interest is charged to each fund, based on its borrowings, at a rate equal to
the Federal Funds Rate plus 0.35%. Borrowings are payable 30 days after such
loan is executed. The Fund also pays a commitment fee equal to its pro rata
share of the average unutilized amount of the credit facility at a rate of
0.0575% per annum.
The Fund had no borrowings outstanding during the six months
ended April 30, 1998.
================================================================================
6. Subsequent Event
Effective May 18, 1998, the name of the Fund has been changed to Oppenheimer
Quest Balanced Value Fund.
24 Oppenheimer Quest Balanced Value Fund
<PAGE>
- --------------------------------------------------------------------------------
Oppenheimer Quest Balanced 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 Advisor OppenheimerFunds, Inc.
================================================================================
Sub-Advisor OpCap Advisors
================================================================================
Distributor OppenheimerFunds Distributor, Inc.
================================================================================
Transfer and OppenheimerFunds Services
Shareholder
Servicing Agent
================================================================================
Custodian of State Street Bank and Trust Company
Portfolio Securities
================================================================================
Independent Accountants Price Waterhouse LLP
================================================================================
Legal Counsel Gordon Altman Butowsky Weitzen Shalov & Wein
The financial statements included herein have been
taken from the records of the Fund without examination
by the independent accountants. This is a copy of a
report to shareholders of Oppenheimer Quest Balanced
Value Fund. This report must be preceded or accompanied
by a Prospectus of Oppenheimer Quest Balanced 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.
25 Oppenheimer Quest Balanced Value Fund
<PAGE>
- --------------------------------------------------------------------------------
OppenheimerFunds Family
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
===============================================================================================
Real Asset Funds
- -----------------------------------------------------------------------------------------------
Real Asset Fund Gold & Special Minerals Fund
===============================================================================================
Global Stock Funds
- -----------------------------------------------------------------------------------------------
Developing Markets Fund International Growth Fund Quest Global Value Fund
International Small Global Fund Global Growth & Income Fund
Company Fund
===============================================================================================
Stock Funds
- -----------------------------------------------------------------------------------------------
Enterprise Fund MidCap Fund Growth Fund
Discovery Fund Capital Appreciation Fund Disciplined Value Fund
Quest Small Cap Value Fund Quest Capital Value Fund Quest Value Fund
===============================================================================================
Stock & Bond Funds
- -----------------------------------------------------------------------------------------------
Main Street Income & Total Return Fund Disciplined Allocation Fund
Growth Fund Quest Balanced Multiple Strategies Fund
Quest Opportunity Value Fund(1) Convertible Securities Fund(2)
Value Fund Equity Income Fund
===============================================================================================
Taxable Bond Funds
- -----------------------------------------------------------------------------------------------
International Bond Fund Champion Income Fund U.S. Government Trust
World Bond Fund Strategic Income Fund Limited-Term Government Fund
High Yield Fund Bond Fund
===============================================================================================
Municipal Funds
- -----------------------------------------------------------------------------------------------
California Municipal Fund(3) Pennsylvania Municipal Fund(3) Rochester Division:
Florida Municipal Fund(3) Municipal Bond Fund Rochester Fund Municipals
New Jersey Municipal Fund(3) Insured Municipal Fund Limited Term New York
New York Municipal Fund(3) Intermediate Municipal Fund Municipal Fund
===============================================================================================
Money Market Funds(4)
- -----------------------------------------------------------------------------------------------
Money Market Fund Cash Reserves
</TABLE>
(1). On 5/18/98, the Fund's name was changed from "Quest Growth & Income Value
Fund."
(2). On 4/28/98, the Fund's name was changed from "Bond Fund for Growth."
(3). Available only to investors in certain states.
(4). An investment in money market funds is neither insured nor guaranteed by
the Federal Deposit Insurance Corporation or any other government agency.
Although these funds seek to preserve the value of your investment at $1.00 per
share, it is possible to lose money by investing in these funds. Oppenheimer
funds are distributed by OppenheimerFunds Distributor, Inc., Two World Trade
Center, New York, NY 10048-0203.
(C) Copyright 1998 OppenheimerFunds, Inc. All rights reserved.
26 Oppenheimer Quest Balanced Value Fund
<PAGE>
[Graphic Omitted]
<PAGE>
Internet
24-hr access to account
information. Online
transactions now available
- ------------------------------
www.oppenheimerfunds.com
- ------------------------------
General Information
Mon-Fri 8:30am-9pm ET
Sat 10am-4pm ET
- ------------------------------
1-800-525-7048
- ------------------------------
Account Transactions
Mon-Fri 8:30am-8pm ET
- ------------------------------
1-800-852-8457
- ------------------------------
PhoneLink
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and automated transactions
- ------------------------------
1-800-533-3310
- ------------------------------
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for the Deaf (TDD)
Mon-Fri 8:30am-2pm 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
- ------------------------------
Information and services
- --------------------------------------------------------------------------------
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 or by visiting our website. 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 or website 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, or visit us at our website at
www.oppenheimerfunds.com--we're here to help.
[Logo] OppenheimerFunds(SM)
Distributor, Inc.
RS0257.001.0498 June 29, 1998
