<PAGE>
---------------------------------------
Semiannual Report April 30, 1999
---------------------------------------
O P P E N H E I M E R
Quest
Opportunity
Value Fund
[GRAPHIC]
[LOGO]
Oppenheimer Funds(R)
THE RIGHT WAY TO INVEST
<PAGE>
Contents
3 President's Letter
5 An Interview with Your Fund's Manager
11 Financial Statements
28 Officers and Trustees
32 Information and Services
Report highlights
- --------------------------------------------------------------------------------
o Value stocks continued to lag growth stocks, bringing their valuations
difference to their widest levels in years.
o The Fund made few new purchases during the period because good values in
large-cap stocks have been
difficult to find.
Cumulative Total Returns
For the 6-Month Period
Ended 4/30/99
Class A
Without With
Sales Chg.(1) Sales Chg.(2)
- ---------------------------
15.61% 8.96%
- ---------------------------
Class B
Without With
Sales Chg.(1) Sales Chg.(2)
- ---------------------------
15.36% 10.36%
- ---------------------------
Class C
Without With
Sales Chg.(1) Sales Chg.(2)
- ---------------------------
15.36% 14.36%
- ---------------------------
Class Y
Without With
Sales Chg.(1) Sales Chg.(2)
- ---------------------------
15.72% 15.72%
- ---------------------------
Total returns include changes in share price and reinvestment of dividends and
capital gains distributions in a hypothetical investment for the periods shown.
Cumulative total returns are not annualized. 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. Because the stock market can be volatile, the Fund's
performance may be subject to substantial short-term changes. For updates on the
Fund's performance, please contact your financial advisor, call us at
1-800-525-7048 or visit our website, www.oppenheimerfunds.com. 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.
1. Includes changes in net asset value per share without deducting any sales
charges.
2. Class A return includes the current maximum initial sales charge of 5.75%.
Class B return includes the applicable contingent deferred sales charge of 5%.
Class C return includes the applicable contingent deferred sales charge of 1%.
Class Y shares are available only to certain institutional investors under
special agreement with the Distributor. Class A shares are subject to an annual
0.25% asset-based sales charge while Class B and C shares are subject to an
annual 0.75% asset-based sales charge. An explanation of the different
performance calculations is in the Fund's prospectus.
2 Oppenheimer Quest Opportunity Value Fund
<PAGE>
[PHOTO]
Bridget A. Macaskill
President
Oppenheimer
Quest Opportunity
Value Fund
Dear shareholder,
- --------------------------------------------------------------------------------
According to popular belief, the last six months have been particularly
favorable for the financial markets.
The truth of the matter is that it's been a long, uphill struggle for the
diversified investor. That's because the stock market's dramatic rise reflects
the performance of the Dow Jones Industrial Average, which has been fueled by
only a small number of large-capitalization growth stocks and technology
companies. In the bond market this year, while many corporate and foreign bonds
have provided relatively attractive returns, the first quarter of 1999 was the
worst quarter in history for U.S. Treasury securities.(1)
Recently, though, signs of change have been emerging that confirm the
importance of a well-diversified portfolio. While investors focusing on
large-cap growth and technology stocks may have achieved superior short-term
returns, they may have also dramatically increased their exposure to potential
risks. If recent economic and market trends persist, previously out-of-favor
stocks may continue to rise.
Specifically, U.S. economic growth has continued to surpass most analysts'
expectations and the breadth of the market's positive performance has begun to
widen. This has raised concerns that inflationary pressures may re-emerge. In
fact, the Federal Reserve Board recently indicated its readiness to raise
short-term interest rates as an inflation-fighting measure. Looking outside of
the United States, many foreign economies also appear to be on the mend. The
impact of these changes, as it applies to your fund, is discussed more fully
inside by your portfolio manager.
(over, please)
1. Foreign investing entails higher expenses and risks, such as foreign currency
fluctuations, economic and political instability, and differences in accounting
standards.
3 Oppenheimer Quest Opportunity Value Fund
<PAGE>
You may also have wondered about the impact of the Year 2000 problem on your
investments. While we cannot predict the final outcome, we are pleased that many
companies and governments appear to be making progress toward avoiding a major
disruption. For our part, OppenheimerFunds is in the advanced stages of our Y2K
project, and we have successfully participated in industry-wide tests.
Meanwhile, we intend to maintain the disciplined investment approach that
has been helping Oppenheimer funds shareholders for more than 40 years as they
pursue their financial goals. Our longstanding experience has taught us that
while investment fads come and go, prudent diversification remains key to
successful investing. In fact, it is an essential part of what makes
OppenheimerFunds The Right Way to Invest.
Sincerely,
/s/ Bridget A. Macaskill
Bridget A. Macaskill
May 21, 1999
4 Oppenheimer Quest Opportunity Value Fund
<PAGE>
[PHOTO]
Portfolio Management
Team (l to r)
Richard Glasebrook II
(Portfolio Manager)
James Sheldon
An interview with your Fund's manager
- --------------------------------------------------------------------------------
How did Oppenheimer Quest Opportunity Value Fund perform during the six-month
period that ended April 30, 1999?
Despite a very difficult environment for value-oriented stocks, we are generally
pleased with the Fund's performance. However, we have continued to be
disappointed that the extreme difference in valuations between growth-oriented
stocks and value-oriented stocks has remained at historically wide levels. We
attribute the value sector's relative weakness to investors' persistent
preference for large-cap names with predictable earnings over more mature
companies selling at attractive prices.
To what do you attribute the Fund's performance?
Our stock selection strategy worked well, in our opinion. As value managers who
look at stocks on a company-by-company basis, rather than according to market or
industry trends, we recognize that we must be patient when market sentiment is
against us. This approach proved its mettle over the past six months, when some
of our larger positions began to receive wider attention from investors.
5 Oppenheimer Quest Opportunity Value Fund
<PAGE>
An interview with your Fund's manager
- --------------------------------------------------------------------------------
For example, financial services giant Citigroup, Inc. rallied when investors
recognized that the integration of Travelers Corp. and Citibank was going well
after a shaky start. In addition, Citigroup, Inc. benefited from
better-than-expected economic conditions in Latin America, where the company has
an extensive presence. Similarly, McDonald's Corp. shares rose when overseas
earnings remained strong and the company took steps to improve its domestic
operations.
Given the wide disparity in valuations within the stock market, have you been
finding attractive values in companies you want to own?
Surprisingly, no. We made relatively few new purchases over the past six months.
That's primarily because the types of companies we seek--those that have good
control over their businesses and are profitable--are generally expensive
relative to their earnings. In our view, good values have been hard to find. We
believe that, at current price levels, the stock market expects the U.S.
economy to remain robust with low inflation, and that any disappointments will
cause highly valued stocks to decline. In our opinion, few investors appear to
be thinking about the risks of such stocks.
6 Oppenheimer Quest Opportunity Value Fund
<PAGE>
How have you managed the portfolio in this environment?
As value managers, we've been paying close attention to the price levels at
which the portfolio's holdings are trading relative to their average valuations
over the past ten years. If stocks are selling at the high end of that range, we
look for a compelling reason why. If we can't find one, we'll sell or reduce
that position.
What stocks contributed most positively to performance?
We've already discussed Citigroup, Inc. and McDonald's Corp., which performed
quite well. We also received attractive returns from UAL Corp., which was up
sharply in the first quarter of 1999 based on analysts' expectations of higher
earnings. The stock was selling at about six times earnings before the rally,
and rose to about eight times earnings as of April 30.
Strong returns were also provided by media conglomerate Time Warner, Inc.
The company's stock rose in response to merger and acquisition activity in the
cable television industry, where Time Warner, Inc. is a leader. In addition, the
company announced an alliance with a major telecommunications company to offer
telephone service for residential customers over its cable systems.
7 Oppenheimer Quest Opportunity Value Fund
<PAGE>
Avg Annual Total Returns
For the Periods Ended 3/31/99(1)
Class A
1 year 5 year 10 year
- -----------------------------
- -5.92% 17.97% 16.28%
- -----------------------------
Class B
Since
1 year 5 year Inception
- -----------------------------
- -5.40% 18.55% 16.30%
- -----------------------------
Class C
Since
1 year 5 year Inception
- -----------------------------
- -1.63% 18.74% 16.37%
- -----------------------------
Class Y
Since
1 year 5 year Inception
- -----------------------------
0.16% N/A 14.13%
- -----------------------------
An interview with your Fund's manager
- --------------------------------------------------------------------------------
What stocks were most disappointing over the past six months?
Mortgage originator Freddie Mac, the Fund's second largest stock position as of
April 30, declined amid investors' concerns that new government regulations
might adversely affect earnings. In our view, these concerns are largely
unjustified, as evidenced by the company's strong earnings growth in the first
quarter of 1999. We continue to believe that the company represents extremely
good value.
A large food and tobacco company also disappointed. When we originally
bought the stock, it appeared that the company had solved its litigation
problems. Yet, the federal government recently announced that it is considering
suing the tobacco industry. In addition, for the first time, this particular
company lost a suit brought by an individual customer. In the wake of this news,
we eliminated the position from the portfolio.
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 1/3/89. 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 1% (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. Class Y
shares were first publicly offered on 12/16/96 and are not available for sale to
individual shareholders. Class A shares are subject to an annual 0.25%
asset-based sales charge while Class B and C shares are subject to an annual
0.75% asset-based sales charge. An explanation of the different performance
calculations is in the Fund's prospectus.
2. Portfolio is subject to change. Percentages are as of April 30, 1999, and are
based on total market value of investments.
8 Oppenheimer Quest Opportunity Value Fund
<PAGE>
Asset Allocation(2)
[PIE CHART APPEARS HERE]
o Stocks 75.3%
o Cash equivalents 15.1
o Bonds 9.6
What is your outlook for the Fund?
We are optimistic that the Fund will provide better returns when investors once
again turn their attention to value, as we believe they inevitably will. In the
meantime, we have maintained the highly disciplined investment approach that has
historically produced excellent risk-adjusted returns. We are confident that our
value-oriented approach is economically sensible and should continue to support
attractive long-term returns. In fact, maintaining our discipline amid
unfavorable market conditions is a key component of what makes OppenheimerFunds
The Right Way to Invest.
Top 10 Stock Holdings(2)
- ---------------------------------------------------------
Citigroup, Inc. 6.8%
- ---------------------------------------------------------
Freddie Mac 6.7
- ---------------------------------------------------------
McDonald's Corp. 5.3
- ---------------------------------------------------------
Wells Fargo & Co. 5.0
- ---------------------------------------------------------
Du Pont (E.I.) De Nemours & Co. 4.2
- ---------------------------------------------------------
News Corp. Ltd. 3.4
- ---------------------------------------------------------
Computer Associates Int'l, Inc. 3.3
- ---------------------------------------------------------
Diageo plc 3.1
- ---------------------------------------------------------
Boeing Co. 2.9
- ---------------------------------------------------------
UAL Corp. 2.7
- ---------------------------------------------------------
Top 5 Stock Sectors(2)
- ---------------------------------------------------------
Financial 24.8%
- ---------------------------------------------------------
Capital Goods 12.7
- ---------------------------------------------------------
Consumer Staples 9.4
- ---------------------------------------------------------
Basic Materials 7.8
- ---------------------------------------------------------
Technology 7.5
- ---------------------------------------------------------
9 Oppenheimer Quest Opportunity Value Fund
<PAGE>
Financials
- --------------------------------------------------------------------------------
10 Oppenheimer Quest Opportunity Value Fund
<PAGE>
- ------------------------------------------------------------------------------
Statement of Investments April 30, 1999 (Unaudited)
- ------------------------------------------------------------------------------
Market Value
Shares See Note 1
==============================================================================
Common Stocks--73.9%
- ------------------------------------------------------------------------------
Basic Materials--7.7%
- ------------------------------------------------------------------------------
Chemicals--6.2%
Cabot Corp. 100,000 $ 2,700,000
- ------------------------------------------------------------------------------
Du Pont (E.I.) De Nemours & Co. 2,600,000 183,625,000
- ------------------------------------------------------------------------------
Monsanto Co. 2,000,000 90,500,000
-------------
276,825,000
- ------------------------------------------------------------------------------
Paper--1.5%
Champion International Corp. 1,215,000 66,445,312
- ------------------------------------------------------------------------------
Capital Goods--12.5%
- ------------------------------------------------------------------------------
Aerospace/Defense--2.9%
Boeing Co. 3,161,300 128,427,812
- ------------------------------------------------------------------------------
Manufacturing--9.6%
Avery-Dennison Corp. 700,000 47,775,000
- ------------------------------------------------------------------------------
Caterpillar, Inc. 1,375,900 88,573,562
- ------------------------------------------------------------------------------
ITT Industries, Inc. 2,850,000 102,600,000
- ------------------------------------------------------------------------------
Minnesota Mining & Manufacturing Co. 1,200,000 106,800,000
- ------------------------------------------------------------------------------
Textron, Inc. 640,000 58,960,000
- ------------------------------------------------------------------------------
United Technologies Corp. 200,000 28,975,000
-------------
433,683,562
- ------------------------------------------------------------------------------
Communication Services--2.3%
- ------------------------------------------------------------------------------
Telecommunications: Long Distance--2.3%
Sprint Corp. (Fon Group) 1,000,000 102,562,500
- ------------------------------------------------------------------------------
Consumer Cyclicals--7.2%
- ------------------------------------------------------------------------------
Autos & Housing--0.7%
Security Capital Group, Inc., Cl. A(1) 48,627 32,823,225
- ------------------------------------------------------------------------------
Media--5.8%
News Corp. Ltd., Sponsored ADR, Preference 4,970,100 151,898,681
- ------------------------------------------------------------------------------
Time Warner, Inc. 1,557,500 109,025,000
-------------
260,923,681
- ------------------------------------------------------------------------------
Retail: General--0.7%
Nordstrom, Inc. 959,800 33,772,963
- ------------------------------------------------------------------------------
Consumer Staples--9.2%
- ------------------------------------------------------------------------------
Broadcasting--0.8%
Chancellor Media Corp.(1) 675,100 37,046,113
- ------------------------------------------------------------------------------
Entertainment--5.2%
McDonald's Corp. 5,500,000 233,062,500
11 Oppenheimer Quest Opportunity Value Fund
<PAGE>
- ------------------------------------------------------------------------------
Statement of Investments (Unaudited) (Continued)
- ------------------------------------------------------------------------------
Market Value
Shares See Note 1
==============================================================================
Food--3.1%
Diageo plc, Sponsored ADR 3,000,000 $138,375,000
- ------------------------------------------------------------------------------
Household Goods--0.1%
Avon Products, Inc. 119,000 6,463,188
- ------------------------------------------------------------------------------
Financial--24.4%
- ------------------------------------------------------------------------------
Banks--7.1%
M&T Bank Corp. 170,000 95,030,000
- ------------------------------------------------------------------------------
Wells Fargo Co. 5,150,000 222,415,625
-------------
317,445,625
- ------------------------------------------------------------------------------
Diversified Financial--14.6%
Citigroup, Inc. 4,000,000 301,000,000
- ------------------------------------------------------------------------------
Freddie Mac 4,700,000 294,925,000
- ------------------------------------------------------------------------------
Household International, Inc. 1,200,000 60,375,000
-------------
656,300,000
- ------------------------------------------------------------------------------
Insurance--2.7%
ACE Ltd. 2,494,400 75,455,600
- ------------------------------------------------------------------------------
XL Capital Ltd. 771,400 46,814,338
-------------
122,269,938
- ------------------------------------------------------------------------------
Healthcare--0.7%
- ------------------------------------------------------------------------------
Healthcare/Drugs--0.7%
American Home Products Corp. 525,000 32,025,000
- ------------------------------------------------------------------------------
Technology--7.3%
- ------------------------------------------------------------------------------
Computer Hardware--1.0%
Compaq Computer Corp. 2,100,000 46,856,250
- ------------------------------------------------------------------------------
Computer Software--3.5%
Cadence Design Systems, Inc.(1) 1,062,400 14,408,800
- ------------------------------------------------------------------------------
Computer Associates International, Inc. 3,400,000 145,137,500
-------------
159,546,300
- ------------------------------------------------------------------------------
Electronics--2.8%
Motorola, Inc. 1,000,000 80,125,000
- ------------------------------------------------------------------------------
Unitrode Corp.(1)(2) 2,507,500 44,351,406
Varian Medical Systems, Inc. 150,000 2,578,125
-------------
127,054,531
- ------------------------------------------------------------------------------
Transportation--2.6%
- ------------------------------------------------------------------------------
Air Transportation--2.6%
UAL Corp.(1) 1,450,000 117,087,500
-------------
Total Common Stocks (Cost $2,393,890,198) 3,328,996,000
12 Oppenheimer Quest Opportunity Value Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Face Market Value
Amount See Note 1
========================================================================================
<S> <C> <C>
U.S. Government Obligations--9.5%
- ----------------------------------------------------------------------------------------
U.S. Treasury Nts.:
6.50%, 5/15/05 $ 400,000,000 $ 423,500,000
7.50%, 11/15/01--5/15/02 2,000,000 2,119,375
7.875%, 8/15/01 550,000 582,485
--------------
Total U.S. Government Obligations (Cost $428,980,405) 426,201,860
========================================================================================
Short-Term Notes--14.8%(3)
- ----------------------------------------------------------------------------------------
American Express Credit Corp.:
4.76%, 6/7/99 50,000,000 49,755,389
4.78%, 5/20/99 50,000,000 49,873,861
4.83%, 5/5/99 3,677,000 3,675,027
- ----------------------------------------------------------------------------------------
Associates Corp. of North America, 4.78%, 5/17/99 40,215,000 40,129,565
- ----------------------------------------------------------------------------------------
Deere & Co., 4.79%, 5/3/99 21,749,000 21,743,212
- ----------------------------------------------------------------------------------------
Diageo Capital Corp., 4.92%, 5/4/99 32,000,000 31,986,880
- ----------------------------------------------------------------------------------------
Federal National Mortgage Assn., 4.65%, 5/3/99 6,735,000 6,733,268
- ----------------------------------------------------------------------------------------
Ford Motor Credit Co., 4.78%, 5/20/99-6/1/99 75,663,000 75,386,328
- ----------------------------------------------------------------------------------------
General Electric Capital Corp.:
4.79%, 5/13/99 143,930,000 143,700,458
4.85%, 5/3/99 5,920,000 5,918,405
- ----------------------------------------------------------------------------------------
Goldman Sachs Group LP, 4.78%, 5/13/99 75,000,000 74,880,500
- ----------------------------------------------------------------------------------------
John Deere Capital Corp.:
4.84%, 5/6/99 5,005,000 5,001,636
7.75%, 6/7/99 50,000,000 49,755,903
- ----------------------------------------------------------------------------------------
Morgan Stanley Dean Witter & Co.:
4.76%, 5/26/99 50,000,000 49,834,722
4.79%, 6/4/99 50,000,000 49,773,806
- ----------------------------------------------------------------------------------------
Norwest Financial Corp., 4.80%, 5/27/99 8,235,000 8,206,452
--------------
Total Short-Term Notes (Cost $666,355,412) 666,355,412
- ----------------------------------------------------------------------------------------
Total Investments, at Value (Cost $3,489,226,015) 98.2% 4,421,553,272
- ----------------------------------------------------------------------------------------
Other Assets Net of Liabilities 1.8 78,969,644
-------------- --------------
Net Assets 100.0% $4,500,522,916
============== ==============
</TABLE>
1. Non-income producing security.
2. Affiliated company. Represents ownership of at least 5% of the voting
securities of the issuer, and is or was an affiliate, as defined in the
Investment Company Act of 1940, at or during the period ended April 30, 1999.
The aggregate fair value of securities of all affiliated companies held by the
Fund as of April 30, 1999, amounts to $44,351,406. Transactions during the
period in which the issuer was an affiliate are as follows:
Shares Gross Gross Shares
October 31, 1998 Additions Reductions April 30, 1999
- --------------------------------------------------------------------------------
Unitrode Corp. 3,110,000 -- 602,500 2,507,500
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.
13 Oppenheimer Quest Opportunity Value Fund
<PAGE>
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities April 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
================================================================================
Assets
Investments, at value--see accompanying statement:
Unaffiliated companies (cost $3,453,362,218) $ 4,377,201,866
Affiliated companies (cost $35,863,797) 44,351,406
- --------------------------------------------------------------------------------
Cash 3,669,664
- --------------------------------------------------------------------------------
Receivables and other assets:
Investments sold 74,428,320
Interest and dividends 16,288,442
Shares of beneficial interest sold 4,620,621
Other 29,112
---------------
Total assets 4,520,589,431
================================================================================
Liabilities
Payables and other liabilities:
Shares of beneficial interest redeemed 10,619,368
Investments purchased 6,840,283
Distribution and service plan fees 891,935
Transfer and shareholder servicing agent fees 682,079
Shareholder reports 627,651
Trustees' compensation--Note 1 279,954
Custodian fees 52,853
Other 72,392
---------------
Total liabilities 20,066,515
================================================================================
Net Assets $ 4,500,522,916
===============
================================================================================
Composition of Net Assets
Par value of shares of beneficial interest $ 1,143,705
- --------------------------------------------------------------------------------
Additional paid-in capital 3,228,821,533
- --------------------------------------------------------------------------------
Overdistributed net investment income (121,247)
- --------------------------------------------------------------------------------
Accumulated net realized gain on investment transactions 338,351,668
- --------------------------------------------------------------------------------
Net unrealized appreciation on investments--Note 3 932,327,257
---------------
Net assets $ 4,500,522,916
===============
14 Oppenheimer Quest Opportunity Value Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
Net Asset Value Per Share
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$1,923,200,763 and 48,415,951 shares of beneficial interest outstanding) $39.72
Maximum offering price per share (net asset value plus sales charge of
5.75% of offering price) $42.14
- --------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net
assets of $2,059,853,314 and 52,728,350 shares of beneficial
interest outstanding) $39.07
- --------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net assets
of $461,374,413 and 11,817,522 shares of beneficial interest
outstanding) $39.04
- --------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based on
net assets of $56,094,426 and 1,408,634 shares of beneficial interest
outstanding) $39.82
See accompanying Notes to Financial Statements.
15 Oppenheimer Quest Opportunity Value Fund
<PAGE>
- --------------------------------------------------------------------------------
Statement of Operations For the Six Months Ended April 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
====================================================================================
<S> <C>
Investment Income
Dividends (net of foreign withholding taxes of $277,788) $ 26,390,980
- ------------------------------------------------------------------------------------
Interest 14,847,724
-------------
Total income 41,238,704
====================================================================================
Expenses
Management fees--Note 4 19,040,445
- ------------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 4,849,436
Class B 9,933,132
Class C 2,295,539
- ------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4
Class A 1,360,885
Class B 1,555,350
Class C 339,294
Class Y 60,808
- ------------------------------------------------------------------------------------
Shareholder reports 803,857
- ------------------------------------------------------------------------------------
Trustees' compensation--Note 1 269,376
- ------------------------------------------------------------------------------------
Custodian fees and expenses 85,506
- ------------------------------------------------------------------------------------
Legal, auditing and other professional fees 29,689
- ------------------------------------------------------------------------------------
Other 638,406
-------------
Total expenses 41,261,723
Less expenses paid indirectly--Note 4 (1,231)
-------------
Net expenses 41,260,492
====================================================================================
Net Investment Loss (21,788)
- ------------------------------------------------------------------------------------
Realized and Unrealized Gain
Net realized gain on investments:
Unaffiliated companies 339,419,302
Affiliated companies 1,231,848
-------------
Net realized gain 340,651,150
- ------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments 294,041,646
-------------
Net realized and unrealized gain 634,692,796
====================================================================================
Net Increase in Net Assets Resulting from Operations $ 634,671,008
=============
</TABLE>
See accompanying Notes to Financial Statements.
16 Oppenheimer Quest Opportunity Value Fund
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended Year Ended
April 30 1999 October 31,
(Unaudited) 1998
========================================================================================
<S> <C> <C>
Operations
Net investment income (loss) $ (21,788) $ 26,542,421
- ----------------------------------------------------------------------------------------
Net realized gain 340,651,150 226,520,449
- ----------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation 294,041,646 (42,135,039)
-------------- --------------
Net increase in net assets resulting from operations 634,671,008 210,927,831
========================================================================================
Dividends and Distributions to Shareholders
Dividends from net investment income:
Class A (16,812,029) (9,231,256)
Class B (7,873,963) (2,214,613)
Class C (1,648,538) (509,042)
Class Y (285,979) (144,826)
- ----------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (100,566,948) (54,377,169)
Class B (102,843,954) (51,630,451)
Class C (24,240,785) (13,039,020)
Class Y (1,153,376) (470,723)
========================================================================================
Beneficial Interest Transactions
Net increase (decrease) in net assets resulting
from beneficial interest transactions--Note 2:
Class A (266,162,477) 146,362,570
Class B (109,787,578) 259,717,702
Class C (53,106,175) 33,985,827
Class Y 28,878,971 7,211,645
========================================================================================
Net Assets
Total increase (decrease) (20,931,823) 526,588,475
- ----------------------------------------------------------------------------------------
Beginning of period 4,521,454,739 3,994,866,264
-------------- --------------
End of period [including undistributed (overdistributed)
net investment income of $(121,247) and $26,521,050,
respectively] $4,500,522,916 $4,521,454,739
============== ==============
</TABLE>
See accompanying Notes to Financial Statements.
17 Oppenheimer Quest Opportunity Value Fund
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class A
-----------------------------------------
Six Months
Ended
April 30,
1999 Year Ended October 31,
(Unaudited) 1998 1997 1996(2)
======================================================================================
<S> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $36.44 $35.62 $29.89 $24.59
- --------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.19) .31 .16 .10
Net realized and unrealized gain 5.63 1.72 6.46 5.62
------ ------ ------ ------
Total income from investment
operations 5.44 2.03 6.62 5.72
- --------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.31) (.18) (.11) (.13)
Distributions from net realized gain (1.85) (1.03) (.78) (.29)
------ ------ ------ ------
Total dividends and distributions
to shareholders (2.16) (1.21) (.89) (.42)
- --------------------------------------------------------------------------------------
Net asset value, end of period $39.72 $36.44 $35.62 $29.89
====== ====== ====== ======
- --------------------------------------------------------------------------------------
======================================================================================
Total Return, at Net Asset Value(4) 15.61% 5.83% 22.66% 23.56%
======================================================================================
Ratios/Supplemental Data
Net assets, end of period (in millions) $1,923 $2,027 $1,839 $ 897
- --------------------------------------------------------------------------------------
Average net assets (in millions) $1,955 $2,071 $1,399 $ 609
- --------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 0.28%(5) 0.85% 0.67% 0.64%
Expenses(6) 1.59%(5) 1.54% 1.54% 1.62%
- --------------------------------------------------------------------------------------
Portfolio turnover rate(7) 31% 45% 30% 25%
</TABLE>
1. For the period from December 16, 1996 (inception of offering) to October 31,
1997.
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 $1,000 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.
18 Oppenheimer Quest Opportunity Value Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class B
---------------------- -----------------------------------------------------------
Six Months
Ended
April 30,
Year Ended October 31, 1999 Year Ended October 31,
1995 1994 (Unaudited) 1998 1997 1996(2) 1995 1994
=================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $19.69 $18.71 $35.79 $35.05 $29.49 $24.33 $19.59 $18.70
- ---------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .23(3) .18(3) (.05) .13 .06 .05 .11 .08(3)
Net realized and unrealized gain 5.40 1.35 5.32 1.68 6.31 5.47 5.36 1.34
------ ------ ------ ------ ------ ------ ------ ------
Total income from investment
operations 5.63 1.53 5.27 1.81 6.37 5.52 5.47 1.42
- ---------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.12) (.33) (.14) (.04) (.03) (.07) (.12) (.31)
Distributions from net realized gain (.61) (.22) (1.85) (1.03) (.78) (.29) (.61) (.22)
------ ------ ------ ------ ------ ------ ------ ------
Total dividends and distributions
to shareholders (.73) (.55) (1.99) (1.07) (.81) (.36) (.73) (.53)
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $24.59 $19.69 $39.07 $35.79 $35.05 $29.49 $24.33 $19.59
====== ====== ====== ====== ====== ====== ====== ======
- ---------------------------------------------------------------------------------------------------------------------------------
=================================================================================================================================
Total Return, at Net Asset Value(4) 29.88% 8.41% 15.36% 5.29% 22.05% 22.92% 29.19% 7.84%
=================================================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in millions) $ 367 $ 163 $2,060 $1,996 $1,706 $ 719 $ 218 $ 43
- ---------------------------------------------------------------------------------------------------------------------------------
Average net assets (in millions) $ 252 $ 137 $2,003 $1,976 $1,239 $ 426 $ 117 $ 16
- ---------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 1.02% 0.96% (0.23)%(5) 0.35% 0.17% 0.12% 0.48% 0.43%
Expenses(6) 1.69% 1.78% 2.10%(5) 2.04% 2.03% 2.14% 2.21% 2.34%
- ---------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(7) 21% 42% 31% 45% 30% 25% 21% 42%
</TABLE>
5. Annualized.
6. The expense ratio reflects the effect of expenses paid indirectly by the
Fund.
7. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities owned
during the period. Securities with a maturity or expiration date at the time of
acquisition of one year or less are excluded from the calculation. Purchases and
sales of investment securities (excluding short-term securities) for the period
ended April 30, 1999, were $1,256,437,183 and $2,142,679,756, respectively.
19 Oppenheimer Quest Opportunity Value Fund
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class C
------------------------------------------
Six Months
Ended
April 30,
1999 Year Ended October 31,
(Unaudited) 1998 1997
=========================================================================================
<S> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $35.75 $35.01 $29.45
- -----------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.06) .13 .06
Net realized and unrealized gain 5.33 1.68 6.30
------ ------ ------
Total income from investment
operations 5.27 1.81 6.36
- -----------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.13) (.04) (.02)
Distributions from net realized gain (1.85) (1.03) (.78)
------ ------ ------
Total dividends and distributions
to shareholders (1.98) (1.07) (.80)
- -----------------------------------------------------------------------------------------
Net asset value, end of period $39.04 $35.75 $35.01
====== ====== ======
=========================================================================================
Total Return, at Net Asset Value(4) 15.36% 5.29% 22.05%
=========================================================================================
Ratios/Supplemental Data
Net assets, end of period (in millions) $ 461 $ 476 $ 434
- -----------------------------------------------------------------------------------------
Average net assets (in millions) $ 463 $ 487 $ 316
- -----------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (0.23)%(5) 0.35% 0.17%
Expenses(6) 2.09%(5) 2.04% 2.04%
- -----------------------------------------------------------------------------------------
Portfolio turnover rate(7) 31% 45% 30%
</TABLE>
1. For the period from December 16, 1996 (inception of offering) to October 31,
1997.
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 $1,000 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.
20 Oppenheimer Quest Opportunity Value Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class Y
---------------------------------- -----------------------------------
Six Months
Ended
April 30,
Year Ended October 31, 1999 Year Ended October 31,
1996(2) 1995 1994 (Unaudited) 1998 1997(1)
============================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $24.31 $19.58 $18.70 $36.64 $35.77 $29.93
- ----------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .06 .08(3) .08(3) .40 .48 .17
Net realized and unrealized gain 5.44 5.38 1.33 5.09 1.74 5.67
------ ------ ------ ------ ------ ------
Total income from investment
operations 5.50 5.46 1.41 5.49 2.22 5.84
- ----------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.07) (.12) (.31) (.46) (.32) --
Distributions from net realized gain (.29) (.61) (.22) (1.85) (1.03) --
------ ------ ------ ------ ------ ------
Total dividends and distributions
to shareholders (.36) (.73) (.53) (2.31) (1.35) --
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $29.45 $24.31 $19.58 $39.82 $36.64 $35.77
====== ====== ====== ====== ====== ======
============================================================================================================================
Total Return, at Net Asset Value(4) 22.89% 29.16% 7.78% 15.72% 6.38% 19.51%
============================================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in millions) $ 181 $ 50 $ 7 $ 56 $ 23 $ 15
- ----------------------------------------------------------------------------------------------------------------------------
Average net assets (in millions) $ 105 $ 24 $ 3 $ 28 $ 20 $ 6
- ----------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 0.12% 0.37% 0.43% 0.44%(5) 1.39% 1.30%(5)
Expenses(6) 2.14% 2.31% 2.35% 1.39%(5) 1.00% 0.91%(5)
- ----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(7) 25% 21% 42% 31% 45% 30%
</TABLE>
5. Annualized.
6. The expense ratio reflects the effect of expenses paid indirectly by the
Fund.
7. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities owned
during the period. Securities with a maturity or expiration date at the time of
acquisition of one year or less are excluded from the calculation. Purchases and
sales of investment securities (excluding short-term securities) for the period
ended April 30, 1999, were $1,256,437,183 and $2,142,679,756, respectively. See
accompanying Notes to Financial Statements.
21 Oppenheimer Quest Opportunity Value Fund
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited)
- --------------------------------------------------------------------------------
================================================================================
1. Significant Accounting Policies
Oppenheimer Quest Opportunity 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 growth of capital. The Fund's investment advisor
is OppenheimerFunds, Inc. (the Manager). The Manager has entered into a
sub-advisory agreement with OpCap Advisors. The Fund offers Class A, Class B,
Class C and Class Y 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 expenses directly
attributable to that class and exclusive voting rights with respect to matters
affecting that class. Classes A, B and C have separate distribution and/or
service plans. No such plan has been adopted for Class Y shares. 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.
- --------------------------------------------------------------------------------
Allocation of Income, Expenses, Gains and Losses. Income, expenses (other than
those attributable to a specific class), 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.
22 Oppenheimer Quest Opportunity Value Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
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.
- --------------------------------------------------------------------------------
Trustees' Compensation. The Fund has adopted a nonfunded retirement plan for the
Fund's independent trustees. Benefits are based on years of service and fees
paid to each trustee during the years of service. During the six months ended
April 30, 1999, a provision of $196,503 was made for the Fund's projected
benefit obligations resulting in an accumulated liability of $279,768 as of
April 30, 1999.
- --------------------------------------------------------------------------------
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.
23 Oppenheimer Quest Opportunity Value Fund
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited) (Continued)
- --------------------------------------------------------------------------------
================================================================================
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, 1999 Year Ended October 31, 1998
------------------------------- ---------------------------
Shares Amount Shares Amount
=========================================================================================
<S> <C> <C> <C> <C>
Class A:
Sold 4,535,285 $ 165,822,680 15,821,067 $ 583,239,788
Dividends and
distributions reinvested 3,117,020 110,841,216 1,742,757 61,154,538
Redeemed (14,867,587) (542,826,373) (13,576,905) (498,031,756)
----------- ------------- ----------- -------------
Net increase (decrease) (7,215,282) $(266,162,477) 3,986,919 $ 146,362,570
=========== ============= =========== =============
- ------------------------------------------------------------------------------------------
Class B:
Sold 3,010,353 $ 108,680,444 12,868,364 $ 469,045,381
Dividends and
distributions reinvested 2,987,951 104,728,077 1,478,196 51,190,003
Redeemed (9,039,581) (323,196,099) (7,254,611) (260,517,682)
----------- ------------- ----------- -------------
Net increase (decrease) (3,041,277) $(109,787,578) 7,091,949 $ 259,717,702
=========== ============= =========== =============
- ------------------------------------------------------------------------------------------
Class C:
Sold 897,499 $ 32,392,150 3,470,557 $ 126,532,813
Dividends and
distributions reinvested 707,827 24,788,082 374,287 12,946,527
Redeemed (3,087,052) (110,286,407) (2,934,835) (105,493,513)
----------- ------------- ----------- -------------
Net increase (decrease) (1,481,726) $ (53,106,175) 910,009 $ 33,985,827
=========== ============= =========== =============
- ------------------------------------------------------------------------------------------
Class Y:
Sold 956,315 $ 35,254,833 319,320 $ 11,839,211
Dividends and
distributions reinvested 40,420 1,439,355 17,532 615,549
Redeemed (211,475) (7,815,217) (142,310) (5,243,115)
----------- ------------- ----------- -------------
Net increase 785,260 $ 28,878,971 194,542 $ 7,211,645
=========== ============= =========== =============
</TABLE>
24 Oppenheimer Quest Opportunity Value Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
3. Unrealized Gains and Losses on Investments
As of April 30, 1999, net unrealized appreciation on investments of $932,327,257
was composed of gross appreciation of $1,004,062,775, and gross depreciation of
$71,735,518.
================================================================================
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 of the Fund, 0.90% of the next $400
million, 0.85% of the next $3.2 billion, 0.80% of the next $4 billion, and 0.75%
of average annual net assets in excess of $8 billion. The Fund's management fee
for the six months ended April 30, 1999 was 0.86% of the average annual net
assets for each class of shares.
The Manager pays OpCap Advisors (the Sub-Advisor) monthly an annual
fee based on the fee schedule set forth in the Prospectus. For the six months
ended April 30, 1999, the Manager paid $6,037,711 to the Sub-Advisor.
For the six months ended April 30, 1999, commissions (sales charges
paid by investors) on sales of Class A shares totaled $2,166,752, of which
$572,018 was retained by OppenheimerFunds Distributor, Inc. (OFDI), a subsidiary
of the Manager, as general distributor, and by an affiliated broker/dealer.
Sales charges advanced to broker/dealers by OFDI on sales of the Fund's Class A,
Class B and Class C shares totaled $478,180, $3,191,454 and $263,012,
respectively. Amounts paid to an affiliated broker/dealer for Class B and Class
C shares were $255,090 and $8,583, respectively. During the six months ended
April 30, 1999, OFDI received contingent deferred sales charges of $43,902,
$3,944,087 and $56,356, respectively, upon redemption of Class A, 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 other Oppenheimer
funds. The Fund pays OFS an annual maintenance fee of $18.00 for each Fund
shareholder account and reimburses OFS for its out-of-pocket expenses. During
the six months ended April 30, 1999, the Fund paid OFS $3,427,320.
Expenses paid indirectly represent a reduction of custodian fees for
earnings on cash balances maintained by the Fund.
25 Oppenheimer Quest Opportunity Value Fund
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited) (Continued)
- --------------------------------------------------------------------------------
================================================================================
4. Management Fees and Other Transactions with Affiliates (continued)
The Fund has adopted a Distribution and Service Plan for Class A shares to
compensate OFDI for a portion of its costs incurred in connection with the
personal service and maintenance of shareholder 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. 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 compensate itself for its other expenditures under the Plan. During
the six months ended April 30, 1999, OFDI paid $190,317 to an affiliated
broker/dealer as compensation for Class A personal service and maintenance
expenses and retained $1,800,848 as compensation for Class A sales commissions
and service fee advances, as well as financing costs.
The Fund has adopted Distribution and Service Plans for Class B and
Class 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 on Class B and Class C shares
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, 1999, OFDI paid $62,510 and $29,409, respectively, to an
affiliated broker/dealer as compensation for Class B and Class C personal
service and maintenance expenses and retained $7,859,153 and $892,244,
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. As of April 30, 1999, OFDI had incurred excess distribution and
servicing costs of $38,834,991 for Class B and $3,931,670 for Class C.
26 Oppenheimer Quest Opportunity Value Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
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, 1999.
27 Oppenheimer Quest Opportunity Value Fund
<PAGE>
- --------------------------------------------------------------------------------
Oppenheimer Quest Opportunity Value Fund
- --------------------------------------------------------------------------------
A Series of Oppenheimer Quest For Value Funds
================================================================================
Officers and Trustees Bridget A. Macaskill, Chairman of the Board of Trustees
and President
Paul Y. Clinton, Trustee
Thomas W. Courtney, Trustee
Robert G. Galli, Trustee
Lacy B. Herrmann, Trustee
George Loft, Trustee
Robert C. Doll, Jr., Vice President
Brian W. Wixted, Treasurer
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Andrew J. Donohue, Secretary
Robert G. Zack, Assistant Secretary
================================================================================
Investment Advisor OppenheimerFunds, Inc.
================================================================================
Sub-Advisor OpCap Advisors
================================================================================
Distributor OppenheimerFunds Distributor, Inc.
================================================================================
Transfer and OppenheimerFunds Services
Shareholder
Servicing Agent
================================================================================
Custodian of Portfolio Citibank, N.A.
Securities
================================================================================
Independent Accountants PricewaterhouseCoopers 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
of the independent accountants.
This is a copy of a report to shareholders of
Oppenheimer Quest Opportunity Value Fund. This report
must be preceded or accompanied by a Prospectus of
Oppenheimer Quest Opportunity Value Fund. For material
information concerning the Fund, see the Prospectus.
Shares of Oppenheimer funds are not deposits or
obligations of any bank, are not guaranteed by any
bank, are not insured by the FDIC or any other agency,
and involve investment risks, including the possible
loss of the principal amount invested.
28 Oppenheimer Quest Opportunity Value Fund
<PAGE>
- --------------------------------------------------------------------------------
OppenheimerFunds Family
- --------------------------------------------------------------------------------
================================================================================
Real Asset Funds
- --------------------------------------------------------------------------------
Real Asset Fund Gold & Special Minerals Fund
================================================================================
Global Stock Funds
- --------------------------------------------------------------------------------
Developing Markets Fund International Growth Fund Global Growth & Income Fund
International Small Global Fund Europe Fund
Company Fund Quest Global Value Fund
================================================================================
Stock Funds
- --------------------------------------------------------------------------------
Enterprise Fund MidCap Fund Growth Fund
Discovery Fund Capital Appreciation Fund Large Cap Growth Fund
Quest Small Cap Value Quest Capital Value Fund Disciplined Value Fund
Fund Quest Value Fund
================================================================================
Stock & Bond Funds
- --------------------------------------------------------------------------------
Main Street Growth & Total Return Fund Multiple Strategies Fund
Income Fund(1) Quest Balanced Disciplined Allocation Fund
Quest Opportunity Value Fund Convertible Securities Fund
Value Fund Capital Income Fund(2)
================================================================================
Taxable Bond Funds
- --------------------------------------------------------------------------------
International Bond Fund Champion Income Fund U.S. Government Trust
World Bond Fund Strategic Income Fund Limited-Term Government
High Yield Fund Bond Fund Fund
================================================================================
Municipal Bond Funds
- --------------------------------------------------------------------------------
California Municipal Pennsylvania Municipal Rochester Division:
Fund(3) Fund(3)
Florida Municipal Municipal Bond Fund Rochester Fund Municipals
Fund(3)
New Jersey Municipal Insured Municipal Fund Limited Term New York
Fund(3)
New York Municipal Intermediate Municipal Municipal Fund
Fund(3) Fund
================================================================================
Money Market Funds(4)
- --------------------------------------------------------------------------------
Money Market Fund Cash Reserves
1. On 12/22/98, the Fund's name was changed from "Oppenheimer Main Street Income
& Growth Fund."
2. On 4/1/99, the Fund's name was changed from "Oppenheimer Equity Income Fund."
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 may 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 1999 OppenheimerFunds, Inc. All rights reserved.
29 Oppenheimer Quest Opportunity Value Fund
<PAGE>
[This page intentionally left blank]
<PAGE>
------------------------
Information and Services
------------------------
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designed to make investing simple. Whether it's automatic investment plans,
timely market updates, or immediate account access, you can count on us whenever
you need assistance. So call us today, or visit our website--we're here to help.
Internet
24-hr access to account information and transactions
- ------------------------------------------------------
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- ------------------------------------------------------
General Information
Mon-Fri 8:30am-9pm ET, Sat 10am-4pm ET
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1-800-525-7048
- ------------------------------------------------------
Telephone Transactions
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- ------------------------------------------------------
1-800-852-8457
- ------------------------------------------------------
PhoneLink
24-hr automated information and automated transactions
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- ------------------------------------------------------
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- ------------------------------------------------------
OppenheimerFunds Information Hotline
24 hours a day, timely and insightful messages on the
economy and issues that affect your investments
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- ------------------------------------------------------
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OppenheimerFunds Services,
P.O. Box 5270, Denver, CO 80217-5270
[LOGO]
OppenheimerFunds(R)
Distributor, Inc.
RS0236.001.0499 June 29, 1999
