<PAGE>
--------------------------------
Semiannual Report April 30, 1999
--------------------------------
O P P E N H E I M E R
Quest Small Cap
Value Fund
[GRAPHIC]
[LOGO]
OppenheimerFunds(R)
THE RIGHT WAY TO INVEST
<PAGE>
Contents
3 President's Letter
5 An Interview with Your Fund's Managers
11 Financial Statements
29 Officers and Trustees
32 Information and Services
Report highlights
- --------------------------------------------------------------------------------
o Small-cap stocks continued to lag large-cap and mid-cap stocks, bringing
relative valuations to their widest levels in years.
o The Fund continued to seek companies that have a history of recurring revenues
and good cash flow.
o Small-cap stocks have never been more attractively valued, which we believe
should position the Fund well for the future.
Cumulative Total Returns
For the 6-Month Period
Ended 4/30/99
Class A
Without With
Sales Chg.(1) Sales Chg.(2)
- -------------------------------
6.53% 0.40%
- -------------------------------
Class B
Without With
Sales Chg.(1) Sales Chg.(2)
- -------------------------------
6.22% 1.22%
- -------------------------------
Class C
Without With
Sales Chg.(1) Sales Chg.(2)
- -------------------------------
6.23% 5.23%
- -------------------------------
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 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 Small Cap Value Fund
<PAGE>
[PHOTO]
Bridget A. Macaskill
President
Oppenheimer
Quest Small Cap
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 reemerge. 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 Small Cap 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 Small Cap Value Fund
<PAGE>
[PHOTO]
Portfolio Management
Team (l to r)
Timothy McCormack
Mark Degenhart*
An interview with your Fund's managers
- --------------------------------------------------------------------------------
How did Oppenheimer Quest Small Cap Value Fund perform during the six-month
period that ended April 30, 1999?
Despite a very difficult environment for most small-cap stocks in general and
value-oriented stocks in particular, the Fund provided a positive return for the
six-month period ended April 30, 1999. Throughout the period, the small-cap
stock market continued to lag both large-cap and mid-cap stocks. We attribute
the small-cap market's weakness to investors' persistent preference for highly
liquid, large-cap names. In addition, earnings growth within the small-cap
market has not been as robust as analysts expected it to be.
We are also disappointed that we did not match or exceed the returns of
our benchmark, the Russell 2000 Index. However, the index's performance was
driven by a handful of high-flying Internet stocks, which we did not hold
because we consider them to be too expensive relative to their earnings.
* Effective January 7, 1999, Mark Degenhart became a portfolio manager of the
Fund.
5 Oppenheimer Quest Small Cap Value Fund
<PAGE>
- --------------------------------------------------------------------------------
"The valuation disparities have become so great that any earnings acceleration
should benefit the small-cap sector."
An interview with your Fund's managers
- --------------------------------------------------------------------------------
Did you make any changes to the portfolio's exposure to any specific industries
or market sectors?
Yes. But first, it is important to understand that we select stocks on a
company-by-company basis, not according to macroeconomic or industry trends.
This "bottom-up" approach did lead us to reduce our holdings in the energy and
financial services industries, however.
What stock contributed most positively to performance?
Our biggest winner over the period was a company that makes electronic
components and assemblies for the automotive, computer and telecommunications
industries. The firm's management team had significantly improved returns over
the past five years. This was the result of success with a recent acquisition as
well as some high-return internal projects.
Have any of the Fund's holdings been disappointing over the past six months?
Wang Laboratories, Inc. has been a disappointment. We've owned it for three
years, but it has not yet provided the returns we had expected. We believe,
however, that Wang is no longer a mainframe computer manufacturer, but has been
"reborn" after emerging from bankruptcy several years ago. Wang is now a global
provider of outsourced computer network maintenance services to some of the
largest and fastest-growing computer manufacturers in the world. We expect the
stock to appreciate when investors recognize this transformation.
6 Oppenheimer Quest Small Cap Value Fund
<PAGE>
Avg Annual Total Returns
For the Periods Ended 3/31/99(1)
Class A
1 year 5 year 10 year
- -------------------------------------
- -30.97% 5.39% 9.61%
- -------------------------------------
Class B
Since
1 year 5 year Inception
- -------------------------------------
- -30.67% 5.78% 5.66%
- -------------------------------------
Class C
Since
1 year 5 year Inception
- -------------------------------------
- -27.85% 6.09% 5.79%
- -------------------------------------
What are some of the new holdings you added in the past six months?
We invested in Shared Medical Systems Corp., a healthcare information systems
company that derives much of its revenue from recurring sources, such as
long-term outsourcing contracts for computer maintenance, desktop support and
application support. Similarly, Precision Castparts Corp. is an aerospace and
industrial company that has historically generated high levels of free cash
flow. The stock was punished because of concerns about the earnings prospects of
the aerospace industry. However, in our analysis, investors had not adequately
considered the strength of the company's business in gas turbines, pumps and
valves. We believe that this misperception gave us an opportunity to increase
our existing position at an attractive price.
We also invested in an aerospace defense company. The company's senior
management came from three well-established aerospace defense companies. A
secondary offering of the company's stock caused the share price to decline,
which we believed presented an attractive opportunity to buy the stock
inexpensively. Our thesis has so far proved correct, as the firm's stock has
appreciated strongly since we acquired it.
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 B and
C shares are subject to an annual 0.75% asset-based sales charge and Class A
shares are subject to an annual 0.25% asset-based sales charge. An explanation
of the different performance calculations is in the Fund's prospectus.
7 Oppenheimer Quest Small Cap Value Fund
<PAGE>
An interview with your Fund's managers
- --------------------------------------------------------------------------------
The portfolio contains another company that we believe has been misunderstood by
the investment community. While traditionally considered a specialty chemical
manufacturer, this company has largely transformed itself into a pharmaceutical
company that obtains most of its earnings from life sciences, including the
compounding of ingredients used in medicines. Because pharmaceutical companies
are more resistant to recession than specialty chemical companies, we believe
that this particular investment deserves a higher price relative to its
earnings.
What is your outlook for the small-cap stock market and the Fund?
In our experience, small-cap stocks have never been more attractively valued
relative to large-cap stocks. In fact, we believe that the valuation disparities
are becoming so great that, at some point, small-cap stocks are likely to
attract substantially more interest from investors or become the target of
take-over attempts by larger competitors.
Historically, the value-oriented approach to invest- ing in small-cap
stocks has provided very good risk- adjusted returns. Consequently, we believe
that small-cap value stocks continue to have an important place in the
portfolios of investors who can tolerate short-term volatility on the way to
potential long-term gains.
8 Oppenheimer Quest Small Cap Value Fund
<PAGE>
Asset Allocation(2)
[PIE CHART APPEARS HERE]
Stocks 89.1%
Cash equivalents 10.9
In addition, we believe that having the patience and discipline to buy when
prices are low and sell once a company realizes its true value is an important
part of what makes OppenheimerFunds The Right Way to Invest.
Top 10 Stock Holdings(2)
- --------------------------------------------------------------------------------
Wang Laboratories, Inc. 4.5%
- --------------------------------------------------------------------------------
Harman International Industries, Inc. 3.2
- --------------------------------------------------------------------------------
Exar Corp. 3.1
- --------------------------------------------------------------------------------
RenaissanceRe Holdings Ltd. 3.0
- --------------------------------------------------------------------------------
Paxar Corp. 2.9
- --------------------------------------------------------------------------------
Wallace Computer Services, Inc. 2.8
- --------------------------------------------------------------------------------
American Medical Security Group, Inc. 2.8
- --------------------------------------------------------------------------------
Policy Management Systems Corp. 2.8
- --------------------------------------------------------------------------------
Precision Castparts Corp. 2.6
- --------------------------------------------------------------------------------
Flowserve Corp. 2.6
- --------------------------------------------------------------------------------
Top 5 Industries(2)
- --------------------------------------------------------------------------------
Manufacturing 11.0%
- --------------------------------------------------------------------------------
Insurance 9.7
- --------------------------------------------------------------------------------
Health Care / Supplies & Services 8.2
- --------------------------------------------------------------------------------
Industrial Services 8.1
- --------------------------------------------------------------------------------
Autos & Housing 5.6
- --------------------------------------------------------------------------------
2. Portfolio is subject to change. Percentages are as of April 30, 1999, and are
based on total market value of investments.
9 Oppenheimer Quest Small Cap Value Fund
<PAGE>
Financials
- --------------------------------------------------------------------------------
10 Oppenheimer Quest Small Cap Value Fund
<PAGE>
- --------------------------------------------------------------------------------
Statement of Investments April 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
Market Value
Shares See Note 1
================================================================================
Common Stocks--87.9%
- --------------------------------------------------------------------------------
Basic Materials--4.1%
- --------------------------------------------------------------------------------
Chemicals--4.1%
Cambrex Corp. 266,300 $ 6,823,937
- --------------------------------------------------------------------------------
M. A. Hanna Co. 87,800 1,421,262
- --------------------------------------------------------------------------------
McWhorter Technologies, Inc.(1) 119,600 1,771,575
- --------------------------------------------------------------------------------
Schulman (A.), Inc. 81,400 1,424,500
-----------
11,441,274
- --------------------------------------------------------------------------------
Capital Goods--25.9%
- --------------------------------------------------------------------------------
Aerospace/Defense--2.6%
Precision Castparts Corp. 172,100 7,357,275
- --------------------------------------------------------------------------------
Electrical Equipment--4.4%
Baldor Electric Co. 210,300 4,061,419
- --------------------------------------------------------------------------------
Kemet Corp.(1) 326,900 5,046,519
- --------------------------------------------------------------------------------
Technitrol, Inc. 116,400 3,404,700
-----------
12,512,638
- --------------------------------------------------------------------------------
Industrial Services--8.0%
GP Strategies Corp.(1) 136,200 2,094,075
- --------------------------------------------------------------------------------
Graco, Inc. 46,700 1,471,050
- --------------------------------------------------------------------------------
Lydall, Inc.(1) 148,200 1,333,800
- --------------------------------------------------------------------------------
MSC Industrial Direct Co., Inc., Cl.A(1) 119,900 2,585,344
- --------------------------------------------------------------------------------
Tetra Tech, Inc.(1) 179,500 4,341,656
- --------------------------------------------------------------------------------
Tetra Technologies, Inc.(1) 300,400 2,816,250
- --------------------------------------------------------------------------------
Wallace Computer Services, Inc. 342,100 7,889,681
-----------
22,531,856
- --------------------------------------------------------------------------------
Manufacturing--10.9%
Albany International Corp., Cl.A 242,678 5,884,941
- --------------------------------------------------------------------------------
Baldwin Technology Co., Inc., Cl.A(1) 551,000 1,756,312
- --------------------------------------------------------------------------------
Flowserve Corp. 386,500 7,198,562
- --------------------------------------------------------------------------------
Interpool, Inc. 349,200 5,128,875
- --------------------------------------------------------------------------------
Lindsay Manufacturing Co. 128,000 2,728,000
- --------------------------------------------------------------------------------
Paxar Corp.(1) 901,400 8,056,263
-----------
30,752,953
11 Oppenheimer Quest Small Cap Value Fund
<PAGE>
- --------------------------------------------------------------------------------
Statement of Investments (Unaudited) (Continued)
- --------------------------------------------------------------------------------
Market Value
Shares See Note 1
- --------------------------------------------------------------------------------
Communication Services--4.7%
- --------------------------------------------------------------------------------
Telecommunications: Long Distance--4.7%
General Semiconductor, Inc.(1) 931,200 $ 6,984,000
- --------------------------------------------------------------------------------
L-3 Communications Holdings, Inc.(1) 131,300 6,409,081
-----------
13,393,081
- --------------------------------------------------------------------------------
Consumer Cyclicals--9.3%
- --------------------------------------------------------------------------------
Autos & Housing--5.5%
Borg-Warner Automotive, Inc. 35,300 2,003,275
- --------------------------------------------------------------------------------
Carlisle Cos., Inc. 92,300 4,522,700
- --------------------------------------------------------------------------------
Harman International Industries, Inc. 195,700 8,989,969
-----------
15,515,944
- --------------------------------------------------------------------------------
Media--2.3%
Hollinger International, Inc. 455,700 6,408,281
- --------------------------------------------------------------------------------
Retail: Specialty--0.2%
Shopko Stores, Inc. 19,700 675,956
- --------------------------------------------------------------------------------
Textile/Apparel & Home Furnishings--1.3%
Guilford Mills, Inc. 372,200 3,535,900
- --------------------------------------------------------------------------------
Consumer Staples--1.4%
- --------------------------------------------------------------------------------
Food--1.4%
Del Monte Foods Co.(1) 286,800 3,835,950
- --------------------------------------------------------------------------------
Energy--3.9%
- --------------------------------------------------------------------------------
Energy Services--3.9%
Cabot Oil & Gas Corp., Cl.A 310,600 5,435,500
- --------------------------------------------------------------------------------
St. Mary Land & Exploration Co. 291,500 5,611,375
----------
11,046,875
12 Oppenheimer Quest Small Cap Value Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Market Value
Shares See Note 1
- --------------------------------------------------------------------------------
Financial--9.5%
- --------------------------------------------------------------------------------
Insurance--9.5%
Annuity & Life RE Holdings Ltd. 323,000 $ 6,379,250
- --------------------------------------------------------------------------------
Chartwell Re Corp. 275,200 5,091,200
- --------------------------------------------------------------------------------
CNA Surety Corp. 74,400 1,004,400
- --------------------------------------------------------------------------------
E.W. Blanch Holdings, Inc. 55,600 3,273,450
- --------------------------------------------------------------------------------
Horace Mann Educators Corp. 123,000 2,798,250
- --------------------------------------------------------------------------------
RenaissanceRe Holdings Ltd. 268,400 8,370,725
-----------
26,917,275
- --------------------------------------------------------------------------------
Healthcare--10.3%
- --------------------------------------------------------------------------------
Healthcare/Drugs--2.2%
Dentsply International, Inc. 121,500 3,181,781
- --------------------------------------------------------------------------------
Trigon Healthcare, Inc.(1) 99,700 3,165,475
-----------
6,347,256
- --------------------------------------------------------------------------------
Healthcare/Supplies & Services--8.1%
American Medical Security Group, Inc. 527,800 7,884,013
- --------------------------------------------------------------------------------
CorVel Corp.(1) 136,800 4,822,200
- --------------------------------------------------------------------------------
Shared Medical Systems Corp. 130,800 7,104,075
- --------------------------------------------------------------------------------
Vital Signs, Inc. 141,800 2,977,800
-----------
22,788,088
- --------------------------------------------------------------------------------
Technology--16.3%
- --------------------------------------------------------------------------------
Computer Hardware--4.5%
Wang Laboratories, Inc.(1) 501,400 12,566,338
- --------------------------------------------------------------------------------
Computer Services--2.5%
Applied Theory Corp.(1) 10,000 205,000
- --------------------------------------------------------------------------------
Nichols Research Corp.(1) 324,200 6,848,725
-----------
7,053,725
13 Oppenheimer Quest Small Cap Value Fund
<PAGE>
- --------------------------------------------------------------------------------
Statement of Investments (Unaudited) (Continued)
- --------------------------------------------------------------------------------
Market Value
Shares See Note 1
- --------------------------------------------------------------------------------
Computer Software--4.7%
BancTec, Inc.(1) 77,100 $ 1,252,875
- --------------------------------------------------------------------------------
National Computer Systems, Inc. 86,000 2,408,000
- --------------------------------------------------------------------------------
Policy Management Systems Corp.(1) 248,500 7,812,219
- --------------------------------------------------------------------------------
Systems & Computer Technology Corp.(1) 140,700 1,934,625
-----------
13,407,719
- --------------------------------------------------------------------------------
Electronics--4.6%
BMC Industries, Inc. 154,900 1,384,419
- --------------------------------------------------------------------------------
CTS Corp. 57,500 3,069,063
- --------------------------------------------------------------------------------
Exar Corp.(1) 426,800 8,589,350
-----------
13,042,832
- --------------------------------------------------------------------------------
Transportation--2.5%
- --------------------------------------------------------------------------------
Air Transportation--2.5%
Air Express International Corp. 329,000 7,196,875
-----------
Total Common Stocks (Cost $238,584,439) 248,328,091
14 Oppenheimer Quest Small Cap Value Fund
<PAGE>
- --------------------------------------------------------------------------------
Statement of Investments
- --------------------------------------------------------------------------------
Face Market Value
Amount See Note 1
================================================================================
Short-Term Notes--10.8%(2)
- --------------------------------------------------------------------------------
American Express Credit Corp., 4.79%, 5/12/99 $ 7,851,000 $ 7,839,509
- --------------------------------------------------------------------------------
Deere & Co., 4.79%, 5/3/99 2,448,000 2,447,349
- --------------------------------------------------------------------------------
Federal Home Loan Bank, 4.82%, 5/3/99 1,095,000 1,094,708
- --------------------------------------------------------------------------------
Ford Motor Credit Co., 4.78%, 5/24/99-5/26/99 10,562,000 10,528,198
- --------------------------------------------------------------------------------
General Electric Capital Corp.:
4.78%, 5/4/99 1,023,000 1,022,592
4.85%, 5/3/99 5,942,000 5,940,399
- --------------------------------------------------------------------------------
Norwest Financial Corp., 4.80%, 5/27/99 1,505,000 1,499,783
------------
Total Short-Term Notes (Cost $30,372,538) 30,372,538
- --------------------------------------------------------------------------------
Total Investments, at Value (Cost $268,956,977) 98.7% 278,700,629
- --------------------------------------------------------------------------------
Other Assets Net of Liabilities 1.3 3,679,930
----------- ------------
Net Assets 100.0% $282,380,559
=========== ============
1. Non-income producing security.
2. 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.
15 Oppenheimer Quest Small Cap Value Fund
<PAGE>
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities April 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
=====================================================================================
<S> <C>
Assets
Investments, at value (cost $268,956,977)--see accompanying statement $278,700,629
- -------------------------------------------------------------------------------------
Receivables and other assets:
Investments sold 6,648,054
Shares of beneficial interest sold 659,225
Interest and dividends 40,851
Other 5,058
-------------
Total assets 286,053,817
=====================================================================================
Liabilities
Bank overdraft 139,893
- -------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 2,042,276
Shares of beneficial interest redeemed 1,256,607
Transfer and shareholder servicing agent fees 75,466
Distribution and service plan fees 54,906
Trustees' compensation--Note 1 20,201
Custodian fees 5,881
Other 78,028
-------------
Total liabilities 3,673,258
=====================================================================================
Net Assets $282,380,559
=============
=====================================================================================
Composition of Net Assets
Par value of shares of beneficial interest $160,240
- -------------------------------------------------------------------------------------
Additional paid-in capital 290,661,247
- -------------------------------------------------------------------------------------
Accumulated net investment loss (1,144,768)
- -------------------------------------------------------------------------------------
Accumulated net realized loss on investment transactions (17,039,812)
- -------------------------------------------------------------------------------------
Net unrealized appreciation on investments--Note 3 9,743,652
-------------
Net assets $282,380,559
=============
</TABLE>
16 Oppenheimer Quest Small Cap Value Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
Net Asset Value Per Share
Class A Shares:
Net asset value and redemption price per share (based on
net assets of $164,149,599 and 9,195,974 shares of beneficial
interest outstanding) $17.85
Maximum offering price per share (net asset value plus sales
charge of 5.75% of offering price) $18.94
- --------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net
assets of $92,729,706 and 5,353,382 shares of beneficial interest
outstanding) $17.32
- --------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent
deferred sales charge) and offering price per share (based on net
assets of $25,501,254 and 1,474,667 shares of beneficial interest
outstanding) $17.29
See accompanying Notes to Financial Statements.
17 Oppenheimer Quest Small Cap Value Fund
<PAGE>
- --------------------------------------------------------------------------------
Statement of Operations For the Six Months Ended April 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
===================================================================================
<S> <C>
Investment Income
Dividends $ 1,259,279
- -----------------------------------------------------------------------------------
Interest 829,514
------------
Total income 2,088,793
===================================================================================
Expenses
Management fees--Note 4 1,470,311
- -----------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 431,705
Class B 478,837
Class C 128,059
- -----------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 449,132
- -----------------------------------------------------------------------------------
Shareholder reports 125,558
- -----------------------------------------------------------------------------------
Registration and filing fees 22,533
- -----------------------------------------------------------------------------------
Trustees' compensation--Note 1 18,794
- -----------------------------------------------------------------------------------
Legal, auditing and other professional fees 13,553
- -----------------------------------------------------------------------------------
Custodian fees and expenses 5,887
- -----------------------------------------------------------------------------------
Other 81,108
------------
Total expenses 3,225,477
Less expenses paid indirectly--Note 4 (230)
------------
Net expenses 3,225,247
===================================================================================
Net Investment Loss (1,136,454)
===================================================================================
Realized and Unrealized Gain (Loss)
Net realized loss on investments (16,807,768)
- -----------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments 35,063,397
------------
Net realized and unrealized gain 18,255,629
===================================================================================
Net Increase in Net Assets Resulting from Operations $ 17,119,175
============
</TABLE>
See accompanying Notes to Financial Statements.
18 Oppenheimer Quest Small Cap 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 loss $ (1,136,454) $ (2,004,739)
- ---------------------------------------------------------------------------------------------------
Net realized gain (loss) (16,807,768) 9,954,218
- ---------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation 35,063,397 (64,930,588)
------------- -------------
Net increase (decrease) in net assets resulting from operations 17,119,175 (56,981,109)
===================================================================================================
Distributions to Shareholders
Distributions from net realized gain:
Class A (5,919,289) (15,926,177)
Class B (3,232,251) (7,220,162)
Class C (859,533) (2,252,552)
===================================================================================================
Beneficial Interest Transactions
Net increase (decrease) in net assets resulting
from beneficial interest transactions--Note 2:
Class A (24,035,758) 51,212,817
Class B (7,217,782) 43,679,239
Class C (1,789,106) 9,563,688
===================================================================================================
Net Assets
Total increase (decrease) (25,934,544) 22,075,744
- ---------------------------------------------------------------------------------------------------
Beginning of period 308,315,103 286,239,359
------------- -------------
End of period (including accumulated net investment
losses of $1,144,768 and $8,314, respectively) $ 282,380,559 $ 308,315,103
============= =============
</TABLE>
See accompanying Notes to Financial Statements.
19 Oppenheimer Quest Small Cap Value Fund
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class A
---------------------------------------------------------------
Six Months
Ended
April 30,
1999 Year Ended October 31,
(Unaudited) 1998 1997 1996(1)
===================================================================================================================
<S> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $17.29 $22.26 $19.03 $17.31
- -------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.04) (.09) (.07) .03
Net realized and unrealized gain (loss) 1.15 (3.02) 5.66 2.79
------ ------ ------ ------
Total income (loss) from investment
operations 1.11 (3.11) 5.59 2.82
- -------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income -- -- -- (.11)
Distributions from net realized gain (.55) (1.86) (2.36) (.99)
------ ------ ------ ------
Total dividends and distributions
to shareholders (.55) (1.86) (2.36) (1.10)
- -------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $17.85 $17.29 $22.26 $19.03
====== ====== ====== ======
===================================================================================================================
Total Return, at Net Asset Value(3) 6.53% (15.05)% 32.72% 17.17%
===================================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in thousands) $164,150 $183,567 $181,973 $102,746
- -------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $174,007 $201,952 $131,503 $117,765
- -------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) (0.56)%(4) (0.42)% (0.32)% 0.11%
Expenses(5) 1.98%(4) 1.80% 1.78% 1.90%
- -------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 40% 65% 82% 70%
</TABLE>
1. On November 22, 1995, OppenheimerFunds, Inc. became the investment advisor to
the Fund.
2. Based on average shares outstanding for the period.
3. 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.
4. Annualized.
20 Oppenheimer Quest Small Cap Value Fund
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class A Class B
--------------------- -----------------------------------------------
Six Months
Ended
April 30,
1999 Year Ended October 31,
1995 1994 (Unaudited) 1998 1997
===================================================================================================================================
<S> <C> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $16.33 $17.68 $16.84 $21.83 $18.79
- ----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .11(2) (.03)(2) (.10) (.12) (.05)
Net realized and unrealized gain (loss) 1.29 .01 1.13 (3.01) 5.45
------ ------ ------ ------ ------
Total income (loss) from investment
operations 1.40 (.02) 1.03 (3.13) 5.40
- ----------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income -- -- -- -- --
Distributions from net realized gain (.42) (1.33) (.55) (1.86) (2.36)
------ ------ ------ ------ ------
Total dividends and distributions
to shareholders (.42) (1.33) (.55) (1.86) (2.36)
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $17.31 $16.33 $17.32 $16.84 $21.83
====== ====== ====== ====== ======
==================================================================================================================================
Total Return, at Net Asset Value(3) 8.82% 0.04% 6.22% (15.47)% 32.05%
==================================================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in thousands) $116,307 $120,102 $92,730 $98,041 $79,754
- ----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $119,440 $115,276 $96,532 $97,818 $47,462
- ----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) 0.67% (0.14)% (1.06)%(4) (0.92)% (0.80)%
Expenses(5) 1.80% 1.88% 2.47%(4) 2.31% 2.27%
- ----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 76% 67% 40% 65% 82%
<CAPTION>
Class B
-------------------------------------------
1996(1) 1995 1994
===========================================================================================
<S> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $17.11 $16.24 $17.66
- -------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.06) .02(2) (.11)(2)
Net realized and unrealized gain (loss) 2.76 1.27 .02
------ ------ ------
Total income (loss) from investment
operations 2.70 1.29 (.09)
- -------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.03) -- --
Distributions from net realized gain (.99) (.42) (1.33)
------ ------ ------
Total dividends and distributions
to shareholders (1.02) (.42) (1.33)
- ------------------------------------------------------------------------------------------
Net asset value, end of period $18.79 $17.11 $16.24
====== ====== ======
==========================================================================================
Total Return, at Net Asset Value(3) 16.57% 8.17% (0.39)%
==========================================================================================
Ratios/Supplemental Data
Net assets, end of period (in thousands) $30,766 $23,440 $16,144
- ------------------------------------------------------------------------------------------
Average net assets (in thousands) $26,478 $20,105 $9,401
- ------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) (0.37)% 0.09% (0.70)%
Expenses(5) 2.38% 2.37% 2.48%
- ------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 70% 76% 67%
</TABLE>
5. The expense ratio reflects the effect of expenses paid indirectly by the
Fund.
6. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities owned
during the period. Securities with a maturity or expiration date at the time of
acquisition of one year or less are excluded from the calculation. Purchases and
sales of investment securities (excluding short-term securities) for the period
ended April 30, 1999, were $105,697,064 and $148,693,150, respectively.
21 Oppenheimer Quest Small Cap Value Fund
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class C
-----------------------------
Six Months
Ended Year
April 30, Ended
1999 Oct. 31,
(Unaudited) 1998
===============================================================================
<S> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $16.81 $21.79
- -------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.10) (.13)
Net realized and unrealized gain (loss) 1.13 (2.99)
------- -------
Total income (loss) from investment
operations 1.03 (3.12)
- -------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income -- --
Distributions from net realized gain (.55) (1.86)
------- -------
Total dividends and distributions
to shareholders (.55) (1.86)
- -------------------------------------------------------------------------------
Net asset value, end of period $17.29 $16.81
======= =======
===============================================================================
Total Return, at Net Asset Value(3) 6.23% (15.45)%
===============================================================================
Ratios/Supplemental Data
Net assets, end of period (in thousands) $25,501 $26,707
- -------------------------------------------------------------------------------
Average net assets (in thousands) $25,818 $28,647
- -------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) (1.06)%(4) (0.92)%
Expenses(5) 2.47%(4) 2.31%
- -------------------------------------------------------------------------------
Portfolio turnover rate(6) 40% 65%
</TABLE>
1. On November 22, 1995, OppenheimerFunds, Inc. became the investment advisor to
the Fund.
2. Based on average shares outstanding for the period.
3. 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.
4. Annualized.
22 Oppenheimer Quest Small Cap Value Fund
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class C
--------------------------------------------------------
1997 1996(1) 1995 1994
======================================================================================================
<S> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $18.76 $17.11 $16.23 $17.67
- ------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.08) (.05) .01(2) (.13)(2)
Net realized and unrealized gain (loss) 5.47 2.75 1.29 .02
------- ------- ------ ------
Total income (loss) from investment
operations 5.39 2.70 1.30 (.11)
- ------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income -- (.06) -- --
Distributions from net realized gain (2.36) (.99) (.42) (1.33)
------- ------- ------ ------
Total dividends and distributions
to shareholders (2.36) (1.05) (.42) (1.33)
- ------------------------------------------------------------------------------------------------------
Net asset value, end of period $21.79 $18.76 $17.11 $16.23
======= ======= ====== ======
======================================================================================================
Total Return, at Net Asset Value(3) 32.05% 16.55% 8.24% (0.51)%
======================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in thousands) $24,512 $13,181 $9,068 $3,344
- ------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $17,401 $11,501 $6,114 $1,381
- ------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) (0.81)% (0.40)% 0.08% (0.81)%
Expenses(5) 2.28% 2.40% 2.38% 2.59%
- ------------------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 82% 70% 76% 67%
</TABLE>
5. The expense ratio reflects the effect of expenses paid indirectly by the
Fund.
6. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities owned
during the period. Securities with a maturity or expiration date at the time of
acquisition of one year or less are excluded from the calculation. Purchases and
sales of investment securities (excluding short-term securities) for the period
ended April 30, 1999, were $105,697,064 and $148,693,150, respectively.
See accompanying Notes to Financial Statements.
23 Oppenheimer Quest Small Cap Value Fund
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited)
- --------------------------------------------------------------------------------
================================================================================
1. Significant Accounting Policies
Oppenheimer Quest Small Cap Value Fund (the Fund), a series of Oppenheimer Quest
For Value Funds, is a diversified open-end management investment company
registered under the Investment Company Act of 1940, as amended. The Fund's
investment objective is to seek capital appreciation. 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 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.
- --------------------------------------------------------------------------------
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.
24 Oppenheimer Quest Small Cap 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 $11,635 was made for the Fund's projected benefit
obligations, resulting in an accumulated liability of $19,949 at 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.
25 Oppenheimer Quest Small Cap 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 2,108,817 $ 36,143,327 5,051,210 $ 102,403,615
Distributions reinvested 333,112 5,732,854 768,695 15,266,280
Redeemed (3,859,879) (65,911,939) (3,380,773) (66,457,078)
---------- ------------- ------------- -------------
Net increase (decrease) (1,417,950) $ (24,035,758) 2,439,132 $ 51,212,817
========== ============= ============= =============
- ----------------------------------------------------------------------------------------------
Class B:
Sold 962,674 $ 16,075,230 3,034,078 $ 60,041,228
Distributions reinvested 185,248 3,099,187 356,031 6,914,130
Redeemed (1,616,574) (26,392,199) (1,222,121) (23,276,119)
---------- ------------- ------------- -------------
Net increase (decrease) (468,652) $ (7,217,782) 2,167,988 $ 43,679,239
========== ============= ============= =============
- ----------------------------------------------------------------------------------------------
Class C:
Sold 463,629 $ 7,711,048 941,618 $ 18,583,330
Distributions reinvested 49,695 829,897 109,265 2,118,649
Redeemed (627,279) (10,330,051) (587,036) (11,138,291)
---------- ------------- ------------- -------------
Net increase (decrease) (113,955) $ (1,789,106) 463,847 $ 9,563,688
========== ============= ============= =============
</TABLE>
================================================================================
3. Unrealized Gains and Losses on Investments
As of April 30, 1999, net unrealized appreciation on investments of $9,743,652
was composed of gross appreciation of $29,802,306, and gross depreciation of
$20,058,654.
================================================================================
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 and 0.85% of average annual net assets in excess of $800 million. The
Fund's management fee for the six months ended April 30, 1999 was 1.00% of the
average annual net assets for each class of shares.
The Manager pays OpCap Advisors (the Sub-Advisor) based on the fee
schedule set forth in the Prospectus. For the six months ended April 30, 1999,
the Manager paid $515,436 to the Sub-Advisor.
26 Oppenheimer Quest Small Cap Value Fund
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
For the six months ended April 30, 1999, commissions (sales charges paid by
investors) on sales of Class A shares totaled $351,206, of which $88,715 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 A, Class B and
Class C shares totaled $60,612, $408,340 and $36,981, respectively. The amount
paid to an affiliated broker/dealer for Class B shares was $38,630. During the
six months ended April 30, 1999, OFDI received contingent deferred sales charges
of $2,000, $230,484 and $9,794, 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 $414,496.
Expenses paid indirectly represent a reduction of custodian fees for
earnings on cash balances maintained by the Fund.
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 $11,819 to an affiliated
broker/dealer as compensation for Class A personal service and maintenance
expenses and retained $160,525 as compensation for Class A sales commissions and
service fee advances, as well as financing costs.
27 Oppenheimer Quest Small Cap Value Fund
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited) (Continued)
- --------------------------------------------------------------------------------
================================================================================
4. Management Fees and Other Transactions with Affiliates (continued)
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 $2,732 to an affiliated broker/dealer as
compensation for Class B personal service and maintenance expenses and retained
$402,000 and $67,352, 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 $2,333,043 for Class B and $271,523
for Class C.
================================================================================
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.
28 Oppenheimer Quest Small Cap Value Fund
<PAGE>
- --------------------------------------------------------------------------------
Oppenheimer Quest Small Cap Value Fund
- --------------------------------------------------------------------------------
A Series of Oppenheimer Quest For Value Funds
================================================================================
Officers and Trustees Bridget A. Macaskill, Chairman of the Board of Trustees
and President
Paul Y. Clinton, Trustee
Thomas W. Courtney, Trustee
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 Shareholder OppenheimerFunds Services
Servicing Agent
================================================================================
Custodian of Citibank, N.A.
Portfolio 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 Small Cap
Value Fund. This report must be preceded or accompanied
by a Prospectus of Oppenheimer Quest Small Cap Value
Fund. For material information concerning the Fund, see
the Prospectus.
Shares of Oppenheimer funds are not deposits or
obligations of any bank, are not guaranteed by any
bank, are not insured by the FDIC or any other agency,
and involve investment risks, including the possible
loss of the principal amount invested.
29 Oppenheimer Quest Small Cap 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 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 Fund Quest Capital Value Fund Disciplined Value 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 Fund
High Yield Fund Bond Fund
==========================================================================================
Municipal Bond 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 12/22/98, the Fund's name was changed from "Main Street Income & Growth
Fund."
2. On 4/1/99, the Fund's name was changed from "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.
30 Oppenheimer Quest Small Cap Value Fund
<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
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----------------------------------------------------
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----------------------------------------------------
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----------------------------------------------------
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----------------------------------------------------
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----------------------------------------------------
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----------------------------------------------------
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----------------------------------------------------
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----------------------------------------------------
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----------------------------------------------------
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----------------------------------------------------
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----------------------------------------------------
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----------------------------------------------------
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[LOGO]
OppenheimerFunds(R)
Distributor, Inc.
RS0251.001.0499 June 29, 1999
