<PAGE> 1
ANNUAL REPORT OCTOBER 31, 1999
OPPENHEIMER
QUEST BALANCED
VALUE FUND
[PHOTO]
[OPPENHEIMERFUNDS LOGO]
THE RIGHT WAY TO INVEST
<PAGE> 2
CONTENTS
1 President's Letter
3 An Interview
with Your Fund's
Manager
7 Fund Performance
12 FINANCIAL
STATEMENTS
28 REPORT OF
INDEPENDENT
ACCOUNTANTS
29 Federal Income
Tax Information
30 Officers and Trustees
31 OppenheimerFunds
Family
REPORT HIGHLIGHTS
- --------------------------------------------------------------------------------
THE FUND PROVIDED GOOD RETURNS in an environment that generally favored growth
stocks over value stocks, and stocks over bonds.
Last year's global financial crisis and the subsequent decline in U.S. stock
prices CREATED ATTRACTIVE VALUES IN MANY FUNDAMENTALLY SOUND COMPANIES.
THE PORTFOLIO IS CURRENTLY POSITIONED RELATIVELY DEFENSIVELY because of
uncertainty regarding the direction of inflation and interest rates in the
United States.
AVERAGE ANNUAL
TOTAL RETURNS
For the 1-Year Period
Ended 10/31/99*
<TABLE>
<CAPTION>
Class A
Without With
Sales Chg. Sales Chg.
- -----------------------------
<S> <C>
21.48% 14.50%
</TABLE>
<TABLE>
<CAPTION>
Class B
Without With
Sales Chg. Sales Chg.
- -----------------------------
<S> <C>
20.84% 15.84%
</TABLE>
<TABLE>
<CAPTION>
Class C
Without With
Sales Chg. Sales Chg.
- -----------------------------
<S> <C>
20.80% 19.80%
</TABLE>
NOT FDIC INSURED.
NO BANK GUARANTEE.
MAY LOSE VALUE.
* See page 10 for further details.
<PAGE> 3
[PHOTO]
BRIDGET A. MACASKILL
President
Oppenheimer
Quest Balanced
Value Fund
PRESIDENT'S LETTER
- --------------------------------------------------------------------------------
DEAR SHAREHOLDER,
Whenever a new year begins--let alone a new decade or century--it makes sense to
pause a moment to assess where we've been and where we're going.
In retrospect, U.S. stocks and bonds in 1999 were subject to sudden and
substantial swings in investor sentiment because of economic uncertainty. When
the year began, investors were concerned that growth in the United States might
slow in response to economic weakness overseas. At mid-year, investors were
concerned that the economy was too strong, potentially rekindling inflationary
pressures. Yet, by year end, it became clearer that while the U.S. economy grew
robustly in 1999, inflation remained at low levels. Indeed, investors appeared
more comfortable with the economy after the Federal Reserve Board demonstrated
its inflation-fighting resolve by raising interest rates three times between
June and November.
As is normal in a rising-interest-rate environment, bond prices generally
declined in 1999, led lower by U.S. Treasury bonds. In the stock market, while
most major indices advanced, strong performance was mostly limited to a handful
of large-capitalization growth companies, principally in the technology arena.
Smaller and value-oriented stocks provided particularly lackluster returns and,
overall, foreign stocks outperformed U.S. stocks in 1999.
Looking forward, we expect the U.S. economy to remain on a moderate-growth,
low-inflation course. As recent revisions of 1999's economic statistics
demonstrated, the economy has defied many analysts' forecasts by growing at a
strong rate, which should be positive for the bond market. Similarly, positive
economic forces could help the stock market's performance broaden to include
value-oriented and smaller stocks.
We see particularly compelling opportunities outside of the U.S. market.
Many foreign stocks also ended 1999 more attractively valued than large-cap U.S.
stocks, and economic trends in overseas markets could lead to higher stock
prices. In Europe, corporate restructuring has just begun, giving
1 OPPENHEIMER QUEST BALANCED VALUE FUND
<PAGE> 4
PRESIDENT'S LETTER
- -------------------------------------------------------------------------------
companies there the same potential for cost-cutting and productivity
improvements that U.S. companies enjoyed 10 years ago. In Japan and Asia,
economic recovery is expected to gain strength, which could allow stocks to
rally from relatively low levels.
Another 1999 trend that should remain in force in 2000 is the growth of
businesses related to the Internet. The rise of e-commerce has been good for
consumers and the economy because of greater price competition, which has helped
keep inflation under control. The Internet has also been good for investors, as
even companies with no earnings have seen their stock prices soar. Clearly,
while the Internet is here to stay, not all "dot-com" companies will survive,
and many of these high-flying Internet stocks will eventually--and perhaps very
suddenly--return to more reasonable levels. The long-term winners are most
likely to be companies that support the Internet's growth with content or
infrastructure.
What else is in store for investors in 2000? While we do not have an
infallible crystal ball, we believe that in almost any investment environment,
consistent success stems from an unwavering focus on fundamental investment
principles such as maintaining a long-term perspective, using diversification to
manage risks and availing oneself of the services of a knowledgeable financial
advisor. Indeed, these principles serve as the foundation for every investment
we offer, helping to make OppenheimerFunds The Right Way to Invest in 2000 and
beyond.
Sincerely,
/s/ BRIDGET A. MACASKILL
Bridget A. Macaskill
November 19, 1999
These general market views represent opinions of OppenheimerFunds, Inc.
and are not intended to predict or depict performance of any particular fund.
Specific discussion, as it applies to your Fund, is contained in the pages that
follow.
2 OPPENHEIMER QUEST BALANCED VALUE FUND
<PAGE> 5
[PHOTO]
PORTFOLIO MANAGEMENT
TEAM (L TO R)
Jolene Mirenna
Colin Glinsman
(Portfolio Manager)
AN INTERVIEW WITH YOUR FUND'S MANAGER
- --------------------------------------------------------------------------------
Q. HOW DID OPPENHEIMER QUEST BALANCED VALUE FUND PERFORM DURING THE ONE-YEAR
PERIOD THAT ENDED OCTOBER 31, 1999?
A. We are pleased with the Fund's performance over the past year. We are
especially gratified that the Fund has generated attractive returns in an
investment environment that has generally favored growth stocks over value
stocks, and stocks over bonds. In addition, the Fund's Class A shares were rated
4-stars **** by Morningstar among 3,210 and 2,010 domestic equity funds for the
3- and 5-year periods ended September 30, 1999, respectively.(1)
TO WHAT FACTORS DO YOU ATTRIBUTE THE FUND'S GOOD PERFORMANCE?
The Fund's performance is primarily the result of our stock selection strategy.
Consistent with our longstanding approach, we strive to identify companies that
we believe have a sustainable competitive edge, but whose stock prices do not
reflect their full intrinsic values. When the reporting period began on November
1, 1998, we were in the process of finding a relatively large number of
high-quality companies selling at attractively low prices. These companies'
stock prices had been punished by a market-wide decline in the wake of last
year's global currency and credit crisis.
Many stocks suffered in last year's adverse market environment, regardless
of their fundamental strengths. As a result, we seized the opportunity to add
some attractively valued, fundamentally sound stocks to the portfolio. One
example is a large financial services conglomerate formed from a highly visible
merger. We established a new position in the company's stock when its share
price was down, and it has since rallied strongly.
1. Source Morningstar, Inc., 9/30/99. See page 10 for further details.
3 OPPENHEIMER QUEST BALANCED VALUE FUND
<PAGE> 6
AN INTERVIEW WITH YOUR FUND'S MANAGER
- -------------------------------------------------------------------------------
"We are currently finding values in the less exciting areas of the economy,
where valuations are low even for solid companies with strong cash flows."
In addition, we added to existing positions when opportunities arose at
attractive prices. This was the case with a major electronics and
telecommunications company. After we added to our position in this stock, it
appreciated dramatically. In fact, we recently reduced our holdings of this
company, locking in profits because we no longer believed that it represented a
compelling value after its stock price rose.
HOW HAVE THE FUND'S FIXED INCOME INVESTMENTS FARED?
About 31% of the total Fund was invested in bonds as of October 31, 1999,
including both investment-grade and high-yield bonds. About 9% of assets were
invested in 10-year U.S. inflation-indexed notes, which served the Fund well
later in the reporting period when inflation fears caused the Federal Reserve
Board to increase key short-term interest rates. Because the principal amount of
inflation-indexed bonds increases as the inflation rate rises, they generally
provided better returns than traditional bonds, which performed relatively
poorly in a rising interest-rate environment.
In addition, we maintained a relatively large cash position at times during
the reporting period, reflecting our concerns about conditions in the stock and
bond markets.
WHEN DID YOU BECOME CONCERNED ABOUT MARKET CONDITIONS, AND WHY?
We began to position the Fund more defensively early in 1999 when overseas
economies began to show signs of imminent improvement and the U.S. economy
continued to grow more strongly than most economists expected. We were worried
that stronger economic growth might cause the Federal Reserve Board to increase
key short-term interest rates amid renewed inflation fears, which tends to be a
negative influence on both stocks and bonds. We were particularly concerned
about stock price declines in light of the market's recent gains which, in our
opinion, left many stocks overvalued.
4 OPPENHEIMER QUEST BALANCED VALUE FUND
<PAGE> 7
AVERAGE ANNUAL
TOTAL RETURNS
For the Periods Ended 9/30/99(2)
<TABLE>
<CAPTION>
Class A Since
1-Year 5-Year Inception
- --------------------------------
<S> <C> <C>
23.92% 20.51% 16.40%
</TABLE>
<TABLE>
<CAPTION>
Class B Since
1-Year 5-Year Inception
- --------------------------------
<S> <C> <C>
25.74% 21.05% 18.60%
</TABLE>
<TABLE>
<CAPTION>
Class C Since
1-Year 5-Year Inception
- --------------------------------
<S> <C> <C>
29.70% 21.10% 18.51%
</TABLE>
As it turned out, the Federal Reserve Board increased interest rates twice
during the summer of 1999, helping to trigger subsequent declines in many
sectors of the equity and fixed income markets. Fortunately, our defensive
positions in inflation-adjusted bonds and value-oriented stocks prepared the
portfolio for these declines. However, as the stock market continued to rise,
our conservative asset allocation hurt the Fund's performance somewhat.
DID YOU MAKE STRATEGIC CHANGES TO PREPARE FOR THE CURRENT ENVIRONMENT?
Yes. We have taken advantage of price weakness in the financial services sector
by establishing new positions or adding to new positions of financial companies
in the portfolio. Although financial stocks declined because of investors'
concerns over short-term interest-rate movements, the operating performance of
these companies has not been dramatically affected by higher interest rates, and
we believe that these stocks will return to their proper values over time.
At the same time, we have substantially reduced our technology holdings.
Some of our technology holdings produced very attractive returns during the
first half of 1999, and their prices rose to levels that we believe are closer
to their true intrinsic values. Accordingly, we have reduced or eliminated some
of those positions, resulting in a smaller allocation to technology stocks
within the portfolio.
2. See page 10 for further details.
5 OPPENHEIMER QUEST BALANCED VALUE FUND
<PAGE> 8
PORTFOLIO ALLOCATION(3)
[PIE CHART]
<TABLE>
<S> <C>
- - Stocks 55.4%
- - Bonds 30.8
- - Cash
Equivalents 13.8
</TABLE>
We are currently searching the market for additional values in a highly volatile
marketplace. If temporary declines give us the opportunity to buy sound
companies at attractive prices, we will use our current cash reserves to take
advantage of the opportunity. In fact, this steady approach to finding value is
an important part of why OppenheimerFunds is The Right Way to Invest.
<TABLE>
<CAPTION>
TOP TEN STOCK HOLDINGS(4)
<S> <C>
- ---------------------------------------------------------------------------
Computer Associates International, Inc. 10.4%
- ---------------------------------------------------------------------------
American Home Products Corp. 10.1
- ---------------------------------------------------------------------------
Bell Atlantic Corp. 8.0
- ---------------------------------------------------------------------------
Sprint Corp. (Fon Group) 7.5
- ---------------------------------------------------------------------------
Freddie Mac 6.4
- ---------------------------------------------------------------------------
Kroger Co. 6.3
- ---------------------------------------------------------------------------
Fleet Boston Corp. 6.0
- ---------------------------------------------------------------------------
Du Pont (E.I.) De Nemours & Co. 5.9
- ---------------------------------------------------------------------------
Household International, Inc. 5.3
- ---------------------------------------------------------------------------
L.M. Ericsson Telephone Co., Cl. B, ADR 4.7
</TABLE>
<TABLE>
<CAPTION>
TOP FIVE INDUSTRIES(4)
<S> <C>
- ---------------------------------------------------------------------------
Diversified Financial 13.2%
- ---------------------------------------------------------------------------
Telecommunications: Long Distance 11.6
- ---------------------------------------------------------------------------
Computer Software 10.4
- ---------------------------------------------------------------------------
Healthcare/Drugs 10.1
- ---------------------------------------------------------------------------
Telephone Utilities 8.0
</TABLE>
3. Portfolio is subject to change. Percentages are as of October 31, 1999, and
are based on total market value of investments.
4. Portfolio is subject to change. Percentages are as of October 31, 1999, and
are based on total market value of common stock.
6 OPPENHEIMER QUEST BALANCED VALUE FUND
<PAGE> 9
FUND PERFORMANCE
- --------------------------------------------------------------------------------
HOW HAS THE FUND PERFORMED? Below is a discussion, by the Manager, of the Fund's
performance during its fiscal year ended October 31, 1999, followed by a
graphical comparison of the Fund's performance to an appropriate broad-based
market index.
MANAGEMENT'S DISCUSSION OF PERFORMANCE. During the Fund's fiscal year that ended
October 31, 1999, Oppenheimer Quest Balanced Value Fund provided good returns.
Performance was driven primarily by the Fund's stock selection strategy, which
favored undervalued stocks of companies with good fundamentals. Lower stock
prices in the wake of 1998's global financial crisis enabled the Fund to buy
stocks at attractive prices which, in many cases, have since appreciated as the
crisis eased. More recently, the Fund has found attractive values in the
financial services industry. The Fund's fixed income component benefited from
positions in inflation-indexed U.S. Treasury securities. The Fund's portfolio
holdings, allocations and strategies are subject to change.
COMPARING THE FUND'S PERFORMANCE TO THE MARKET. The graphs that follow show the
performance of a hypothetical $10,000 investment in each class of shares of the
Fund held until October 31, 1999. In the case of Class A shares, performance is
measured from the inception of the Class on November 1, 1991, and in the case of
Class B and Class C shares, performance is measured from inception of those
classes on September 1, 1993. The Fund's performance reflects the deduction of
the maximum initial sales charge on Class A shares, the applicable contingent
deferred sales charge on Class B and Class C shares, and reinvestments of all
dividends and capital gains distributions.
The Fund's performance is compared to the performance of the Standard &
Poor's (S&P) 500 Index, a broad-based index of equity securities widely regarded
as a general measure of the performance of the U.S. equity securities market.
Index performance reflects the reinvestment of income but does not consider the
effect of transaction costs, and none of the data in the graphs shows the effect
of taxes. The Fund's performance reflects the effects of Fund business and
operating expenses. While index comparisons may be useful to provide a benchmark
for the Fund's performance, it must be noted that the Fund's investments are not
limited to the securities in the index.
7 OPPENHEIMER QUEST BALANCED VALUE FUND
<PAGE> 10
FUND PERFORMANCE
- --------------------------------------------------------------------------------
Class A Shares
COMPARISION OF CHANGE IN VALUE $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Quest Balanced Value Fund (Class A)
and S&P 500 Index
[The following table was originally a line graph in the printed materials.]
<TABLE>
<CAPTION>
Oppenheimer Quest Balanced Value Fund
Class A S&P 500 Index
<S> <C> <C>
11/1/91 9,425 10,000
10/31/92 10,447 10,995
10/31/93 11,484 12,636
10/31/94 12,476 13,123
10/31/95 14,516 16,587
10/31/96 17,686 20,577
10/31/97 22,141 27,178
10/31/98 28,320 33,158
10/31/99 34,402 41,666
</TABLE>
AVERAGE ANNUAL TOTAL RETURN OF CLASS A SHARES OF THE FUND AT 10/31/99(1)
1-YEAR 14.50% 5-YEAR 21.05% LIFE 16.70%
CLASS B SHARES
COMPARISION OF CHANGE IN VALUE $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Quest Balanced Value Fund (Class B)
and S&P 500 Index
[The following table was originally a line graph in the printed materials.]
<TABLE>
<CAPTION>
Oppenheimer Quest Balanced Value Fund
Class B S&P 500 Index
<S> <C> <C>
9/1/93 10,000 10,000
10/31/93 10,081 10,128
10/31/94 10,884 10,519
10/31/95 12,588 13,296
10/31/96 15,240 16,494
10/31/97 18,981 21,785
10/31/98 24,122 26,579
10/31/99 29,149 33,398
</TABLE>
AVERAGE ANNUAL TOTAL RETURN OF CLASS B SHARES OF THE FUND AT 10/31/99(1)
1-YEAR 15.84% 5-YEAR 21.59% LIFE 18.96%
The performance information for the S&P 500 Index in the graphs begins on
10/31/91 for Class A, and 8/31/93 for both Class B and Class C.
8 OPPENHEIMER QUEST BALANCED VALUE FUND
<PAGE> 11
CLASS C SHARES
COMPARISION OF CHANGE IN VALUE $10,000 HYPOTHETICAL INVESTMENTS IN:
Oppenheimer Quest Balanced Value Fund (Class C)
and S&P 500 Index
[The following table was originally a line graph in the printed materials.]
<TABLE>
<CAPTION>
Oppenheimer Quest Balanced Value Fund
Class C S&P 500 Index
<S> <C> <C>
9/1/93 10,000 10,000
10/31/93 10,081 10,128
10/31/94 10,879 10,519
10/31/95 12,552 13,296
10/31/96 15,183 16,494
10/31/97 18,904 21,785
10/31/98 24,031 26,579
10/31/99 29,029 33,398
</TABLE>
AVERAGE ANNUAL TOTAL RETURN OF CLASS C SHARES OF THE FUND AT 10/31/99(1)
1-YEAR 19.80% 5-YEAR 21.69% LIFE 18.87%
1. See page 10 for further details.
Past performance is not predictive of future performance. Graphs are not drawn
to the same scale.
9 OPPENHEIMER QUEST BALANCED VALUE FUND
<PAGE> 12
NOTES
- --------------------------------------------------------------------------------
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 OF ONGOING
MARKET VOLATILITY, 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
sub-advisor is OpCap Advisors, which was the Fund's advisor prior to 11/22/95.
The portfolio manager is employed by the Fund's sub-advisor.
Total returns and the ending account values in the graphs include changes in
share price and reinvestment of dividends and capital gains distributions in a
hypothetical investment for the periods shown.
CLASS A shares were first publicly offered on 11/1/91. The average annual total
returns are shown net of the applicable 5.75% maximum initial sales charge. 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 A shares are subject to an annual
0.15% asset-based sales charge.
CLASS B shares of the Fund were first publicly offered on 9/1/93. The average
annual total returns are shown net of the applicable contingent deferred sales
charges of 5% (1-year) and 1% (5-year). Because Class B shares convert to Class
A shares 72 months after purchase, the "life of class" return for Class B uses
Class A performance for the period after conversion. Class B shares are subject
to an annual 0.75% asset-based sales charge.
CLASS C shares of the Fund were first publicly offered on 9/1/93. The average
annual total returns are shown net of the applicable 1% contingent deferred
sales charge for the one-year period. Class 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.
MORNINGSTAR RATING. Morningstar, Inc. rates mutual funds in broad investment
classes, based on risk adjusted returns after considering sales charges and
expenses. Return and risk are measured as performance above and below 90-day
U.S. Treasury bill returns, respectively. Current star ratings are based on the
weighted average of 3-, 5- and 10-year (if applicable) ratings for a fund or
class and are subject to change monthly. Top 10%: 5 stars. Next 22.5%: 4 stars.
Middle 35%: 3 stars. Next 22.5%: 2 stars. Bottom 10%: 1 star. The Fund's Class A
shares were rated 4 stars (3-year) and 4 stars (5-year) among 3,210 and 2,010
domestic equity funds, respectively, for the periods ended 9/30/99.
10 OPPENHEIMER QUEST BALANCED VALUE FUND
<PAGE> 13
FINANCIALS
11 OPPENHEIMER QUEST BALANCED VALUE FUND
<PAGE> 14
STATEMENT OF INVESTMENTS October 31, 1999
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
=================================================================================================================
<S> <C> <C>
COMMON STOCKS--54.2%
- -----------------------------------------------------------------------------------------------------------------
BASIC MATERIALS--4.3%
- -----------------------------------------------------------------------------------------------------------------
CHEMICALS--3.2%
Du Pont (E.I.) De Nemours & Co. 1,000,000 $ 64,437,500
- -----------------------------------------------------------------------------------------------------------------
METALS--1.1%
Freeport-McMoRan Copper & Gold, Inc., Cl. B(1) 1,300,000 21,693,750
- -----------------------------------------------------------------------------------------------------------------
CAPITAL GOODS--2.7%
- -----------------------------------------------------------------------------------------------------------------
AEROSPACE/DEFENSE--0.9%
Raytheon Co., Cl. B 650,000 18,931,250
- -----------------------------------------------------------------------------------------------------------------
INDUSTRIAL SERVICES--1.8%
Waste Management, Inc. 1,950,000 35,831,250
- -----------------------------------------------------------------------------------------------------------------
COMMUNICATION SERVICES--10.7%
- -----------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS-LONG DISTANCE--6.3%
General Semiconductor, Inc.(1) 750,000 7,875,000
- -----------------------------------------------------------------------------------------------------------------
MCI WorldCom, Inc.(1) 425,000 36,470,313
- -----------------------------------------------------------------------------------------------------------------
Sprint Corp. (Fon Group) 1,100,000 81,743,750
-------------
126,089,063
- -----------------------------------------------------------------------------------------------------------------
TELEPHONE UTILITIES--4.4%
Bell Atlantic Corp. 1,350,000 87,665,625
- -----------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES--5.8%
- -----------------------------------------------------------------------------------------------------------------
BROADCASTING--1.0%
AMFM, Inc.(1) 300,000 21,000,000
- -----------------------------------------------------------------------------------------------------------------
ENTERTAINMENT--1.4%
McDonald's Corp. 700,000 28,875,000
- -----------------------------------------------------------------------------------------------------------------
FOOD & DRUG RETAILERS--3.4%
Kroger Co.(1) 3,300,000 68,681,250
- -----------------------------------------------------------------------------------------------------------------
FINANCIAL--13.1%
- -----------------------------------------------------------------------------------------------------------------
BANKS--4.3%
Fleet Boston Corp. 1,500,000 65,437,500
- -----------------------------------------------------------------------------------------------------------------
Wells Fargo Co. 450,000 21,543,750
-------------
86,981,250
- -----------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL--7.2%
Citigroup, Inc. 300,000 16,237,500
- -----------------------------------------------------------------------------------------------------------------
Freddie Mac 1,300,000 70,281,250
- -----------------------------------------------------------------------------------------------------------------
Household International, Inc. 1,300,000 58,012,500
-------------
144,531,250
- -----------------------------------------------------------------------------------------------------------------
INSURANCE--1.6%
XL Capital Ltd., Cl. A 600,000 32,212,500
</TABLE>
12 OPPENHEIMER QUEST BALANCED VALUE FUND
<PAGE> 15
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
HEALTHCARE--5.5%
- -----------------------------------------------------------------------------------------------------------------
HEALTHCARE/DRUGS--5.5%
American Home Products Corp. 2,100,000 $ 109,725,000
- -----------------------------------------------------------------------------------------------------------------
TECHNOLOGY--9.2%
- -----------------------------------------------------------------------------------------------------------------
COMPUTER SOFTWARE--5.6%
Computer Associates International, Inc. 2,000,000 113,000,000
- -----------------------------------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT--2.5%
L.M. Ericsson Telephone Co., Cl. B, ADR 1,200,000 51,300,000
- -----------------------------------------------------------------------------------------------------------------
ELECTRONICS--1.1%
Motorola, Inc. 230,000 22,410,625
- -----------------------------------------------------------------------------------------------------------------
TRANSPORTATION--2.9%
- -----------------------------------------------------------------------------------------------------------------
AIR TRANSPORTATION--1.7%
AMR Corp.(1) 540,000 34,290,000
- -----------------------------------------------------------------------------------------------------------------
RAILROADS & TRUCKERS--1.2%
Canadian Pacific Ltd. 1,000,000 23,562,500
-------------
Total Common Stocks (Cost $1,029,858,816) 1,091,217,813
=================================================================================================================
PREFERRED STOCKS--0.4%
- -----------------------------------------------------------------------------------------------------------------
Freeport-McMoRan Copper & Gold, Inc., Depositary Shares each
representing 0.05 Shares of Step-Up Cum. Cv., Non-Vtg.
(Cost $8,173,336) 506,400 8,134,050
</TABLE>
<TABLE>
<CAPTION>
FACE
AMOUNT
=================================================================================================================
<S> <C> <C>
U.S. GOVERNMENT OBLIGATIONS--11.0%
- -----------------------------------------------------------------------------------------------------------------
Tennessee Valley Authority Inflationary Bonds, 3.375%, 1/15/07(2) $ 55,894,330 51,553,018
- -----------------------------------------------------------------------------------------------------------------
U.S. Treasury Inflationary Index Nts., 3.875%, 1/15/09(2) 174,218,220 170,951,628
-------------
Total U.S. Government Obligations (Cost $223,394,669) 222,504,646
=================================================================================================================
NON-CONVERTIBLE CORPORATE BONDS AND NOTES--18.6%
- -----------------------------------------------------------------------------------------------------------------
BASIC MATERIALS--0.3%
- -----------------------------------------------------------------------------------------------------------------
CHEMICALS--0.3%
IMC Global, Inc., 7.625% Bonds, 11/1/05 5,500,000 5,472,736
- -----------------------------------------------------------------------------------------------------------------
CAPITAL GOODS--4.7%
- -----------------------------------------------------------------------------------------------------------------
AEROSPACE/DEFENSE--0.5%
Raytheon Co., 6.40% Unsec. Debs., 12/15/18 11,500,000 9,774,402
- -----------------------------------------------------------------------------------------------------------------
INDUSTRIAL SERVICES--2.5%
Allied Waste North America, Inc.:
7.625% Sr. Nts., Series B, 1/1/06 9,500,000 8,241,250
10% Sr. Sub. Nts., 8/1/093 48,000,000 40,860,000
- -----------------------------------------------------------------------------------------------------------------
American Standard Cos., Inc., 7.375% Sr. Nts., 2/1/08 2,000,000 1,795,000
-------------
50,896,250
</TABLE>
13 OPPENHEIMER QUEST BALANCED VALUE FUND
<PAGE> 16
STATEMENT OF INVESTMENTS (Continued)
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
MANUFACTURING--1.7%
Federal-Mogul Corp., 7.375% Nts., 1/15/06 $10,500,000 $ 9,676,600
- -----------------------------------------------------------------------------------------------------------------
Textron, Inc., 6.75% Unsec. Nts., 9/15/02 24,000,000 23,954,280
-------------
33,630,880
- -----------------------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS--0.4%
- -----------------------------------------------------------------------------------------------------------------
LEISURE & ENTERTAINMENT--0.4%
Apcoa, Inc., 9.25% Sr. Unsec. Sub. Nts., 3/15/08 6,000,000 5,017,500
- -----------------------------------------------------------------------------------------------------------------
HMH Properties, Inc., 7.875% Sr. Nts., Series A, 8/1/05 2,750,000 2,516,250
-------------
7,533,750
- -----------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES--3.4%
- -----------------------------------------------------------------------------------------------------------------
BROADCASTING--1.0%
USA Networks, Inc., 6.75% Sr. Unsec. Nts., 11/15/05 21,150,000 20,215,762
- -----------------------------------------------------------------------------------------------------------------
FOOD--0.1%
AmeriServe Food Distribution, Inc., 10.125% Sr. Sub. Nts., 7/15/07 4,000,000 2,020,000
- -----------------------------------------------------------------------------------------------------------------
FOOD & DRUG RETAILERS--2.1%
Safeway, Inc.:
7% Nts., 9/15/02 18,500,000 18,483,813
7.25% Nts., 9/15/04 23,500,000 23,555,225
-------------
42,039,038
-------------
- -----------------------------------------------------------------------------------------------------------------
HOUSEHOLD GOODS--0.2%
Playtex Family Products Corp., 9% Sr. Sub. Nts., 12/15/03 5,500,000 5,376,250
- -----------------------------------------------------------------------------------------------------------------
FINANCIAL--6.8%
- -----------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL--5.2%
Conseco Financing Trust II, 8.70% Unsec. Capital Securities, 11/15/26 46,155,000 40,462,150
- -----------------------------------------------------------------------------------------------------------------
Conseco Financial Trust III, 8.796% Bonds, 4/1/27 32,890,000 29,112,320
- -----------------------------------------------------------------------------------------------------------------
Duke Capital Corp.:
7.25% Nts., 10/1/04 24,000,000 24,196,560
7.50% Bonds, 10/1/09 11,500,000 11,646,660
-------------
105,417,690
-------------
- -----------------------------------------------------------------------------------------------------------------
INSURANCE--1.6%
AFLAC, Inc., 6.50% Sr. Unsec. Nts., 4/15/09 26,900,000 25,370,278
- -----------------------------------------------------------------------------------------------------------------
Conseco, Inc., 6.80% Unsec. Nts., 6/15/05 8,000,000 7,373,880
-------------
32,744,158
- -----------------------------------------------------------------------------------------------------------------
HEALTHCARE--2.4%
- -----------------------------------------------------------------------------------------------------------------
HEALTHCARE/SUPPLIES & SERVICES--2.4%
PharMerica, Inc., 8.375% Sr. Sub. Nts., 4/1/08 6,000,000 3,930,000
</TABLE>
14 OPPENHEIMER QUEST BALANCED VALUE FUND
<PAGE> 17
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
HEALTHCARE/SUPPLIES & SERVICES Continued
Tenet Healthcare Corp.:
7.625% Sr. Unsec. Nts., Series B, 6/1/08 $ 5,350,000 $ 5,002,250
8% Sr. Nts., 1/15/05 39,150,000 37,094,625
8.625% Sr. Unsec. Nts., 12/1/03 2,500,000 2,458,203
-------------
48,485,078
- -----------------------------------------------------------------------------------------------------------------
TECHNOLOGY--0.6%
- -----------------------------------------------------------------------------------------------------------------
COMPUTER SOFTWARE--0.6%
Electronic Data Systems Corp., 6.85% Nts., 10/15/04 11,800,000 11,854,563
-------------
Total Non-Convertible Corporate Bonds and Notes (Cost $398,867,470) 375,460,557
=================================================================================================================
CONVERTIBLE CORPORATE BONDS AND NOTES--0.7%
- -----------------------------------------------------------------------------------------------------------------
Adaptec, Inc., 4.75% Cv. Sub. Nts., 2/1/04 10,000,000 10,375,000
- -----------------------------------------------------------------------------------------------------------------
Hyperion Solutions Corp., 4.50% Cv. Unsec. Debs., 3/15/05 4,000,000 3,080,000
-------------
Total Convertible Corporate Bonds and Notes (Cost $12,086,762) 13,455,000
=================================================================================================================
SHORT-TERM NOTES--13.6%(4)
- -----------------------------------------------------------------------------------------------------------------
American Express Credit Corp., 5.28%, 11/15/99 55,729,000 55,614,726
- -----------------------------------------------------------------------------------------------------------------
Federal National Mortgage Assn., 5.17%, 12/2/99 35,975,000 35,815,461
- -----------------------------------------------------------------------------------------------------------------
Ford Motor Credit Co., 5.30%, 11/18/99 60,175,000 60,025,532
- -----------------------------------------------------------------------------------------------------------------
General Electric Capital Services, 5.29%, 11/8/99 14,840,000 14,824,735
- -----------------------------------------------------------------------------------------------------------------
General Motors Acceptance Corp., 5.23%, 11/2/99 60,320,000 60,311,233
- -----------------------------------------------------------------------------------------------------------------
IBM Credit Corp., 5.29%, 11/18/99 35,055,000 34,967,431
- -----------------------------------------------------------------------------------------------------------------
Prudential Funding Corp., 5.33%, 11/29/99 12,195,000 12,145,298
-------------
Total Short-Term Notes (Cost $273,704,416) 273,704,416
- -----------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $1,946,085,469) 98.5% 1,984,476,482
- -----------------------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 1.5 29,598,110
--------------------------------
NET ASSETS 100.0% $2,014,074,592
================================
</TABLE>
FOOTNOTES TO STATEMENT OF INVESTMENTS
1. Non-income-producing security.
2. Denotes an inflation-indexed security: coupon and principal are indexed to
the consumer price index.
3. Represents securities sold under Rule 144A, which are exempt from
registration under the Securities Act of 1933, as amended. These securities
have been determined to be liquid under guidelines established by the Board of
Trustees. These securities amount to $40,860,000 or 2.03% of the Fund's net
assets as of October 31, 1999.
4. 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 BALANCED VALUE FUND
<PAGE> 18
STATEMENT OF ASSETS AND LIABILITIES October 31, 1999
<TABLE>
=================================================================================================================
<S> <C>
ASSETS
Investments, at value (cost $1,946,085,469)--see accompanying statement $ 1,984,476,482
- -----------------------------------------------------------------------------------------------------------------
Receivables and other assets:
Shares of beneficial interest sold 23,100,538
Interest and dividends 11,388,581
Other 132,205
----------------
Total assets 2,019,097,806
=================================================================================================================
LIABILITIES
- -----------------------------------------------------------------------------------------------------------------
Bank overdraft 2,661
- -----------------------------------------------------------------------------------------------------------------
Payables and other liabilities:
Shares of beneficial interest redeemed 3,707,468
Registration and filing fees 482,937
Distribution and service plan fees 396,455
Transfer and shareholder servicing agent fees 206,849
Trustees' compensation 73,419
Other 153,425
----------------
Total liabilities 5,023,214
=================================================================================================================
NET ASSETS $2,014,074,592
================
=================================================================================================================
COMPOSITION OF NET ASSETS
- -----------------------------------------------------------------------------------------------------------------
Par value of shares of beneficial interest $ 1,233,007
- -----------------------------------------------------------------------------------------------------------------
Additional paid-in capital 1,918,957,002
- -----------------------------------------------------------------------------------------------------------------
Undistributed net investment income 5,227,907
- -----------------------------------------------------------------------------------------------------------------
Accumulated net realized gain on investment transactions 50,265,663
- -----------------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments 38,391,013
----------------
Net assets $2,014,074,592
================
=================================================================================================================
NET ASSET VALUE PER SHARE
- -----------------------------------------------------------------------------------------------------------------
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$899,084,244 and 54,788,895 shares of beneficial interest outstanding) $16.41
Maximum offering price per share (net asset value plus sales charge
of 5.75% of offering price) $17.41
- -----------------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $801,484,611
and 49,242,012 shares of beneficial interest outstanding) $16.28
- -----------------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $313,505,737
and 19,269,829 shares of beneficial interest outstanding) $16.27
</TABLE>
See accompanying Notes to Financial Statements.
16 OPPENHEIMER QUEST BALANCED VALUE FUND
<PAGE> 19
STATEMENT OF OPERATIONS For the Year Ended October 31, 1999
<TABLE>
=================================================================================================================
<S> <C>
INVESTMENT INCOME
- -----------------------------------------------------------------------------------------------------------------
Interest $ 26,468,618
- -----------------------------------------------------------------------------------------------------------------
Dividends (net of foreign withholding taxes of $24,396) 4,957,113
------------
Total income 31,425,731
=================================================================================================================
EXPENSES
- -----------------------------------------------------------------------------------------------------------------
Management fees 8,029,613
- -----------------------------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 1,809,304
Class B 3,537,744
Class C 1,385,575
- -----------------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees 1,346,914
- -----------------------------------------------------------------------------------------------------------------
Registration and filing fees 586,347
- -----------------------------------------------------------------------------------------------------------------
Trustees' compensation 97,066
- -----------------------------------------------------------------------------------------------------------------
Custodian fees and expenses 58,514
- -----------------------------------------------------------------------------------------------------------------
Other 397,541
------------
Total expenses 17,248,618
Less expenses paid indirectly (30,322)
------------
Net expenses 17,218,296
=================================================================================================================
NET INVESTMENT INCOME 14,207,435
=================================================================================================================
REALIZED AND UNREALIZED GAIN
- -----------------------------------------------------------------------------------------------------------------
Net realized gain on investments 50,925,358
- -----------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments 25,800,019
------------
Net realized and unrealized gain 76,725,377
=================================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $90,932,812
============
</TABLE>
See accompanying Notes to Financial Statements.
17 OPPENHEIMER QUEST BALANCED VALUE FUND
<PAGE> 20
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31, 1999 1998
=================================================================================================================
<S> <C> <C>
OPERATIONS
- -----------------------------------------------------------------------------------------------------------------
Net investment income $ 14,207,435 $ 2,923,416
- -----------------------------------------------------------------------------------------------------------------
Net realized gain 50,925,358 30,835,570
- -----------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation 25,800,019 3,887,092
---------------------------------
Net increase in net assets resulting from operations 90,932,812 37,646,078
=================================================================================================================
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
- -----------------------------------------------------------------------------------------------------------------
Dividends from net investment income:
Class A (6,078,115) (1,415,504)
Class B (3,048,066) (321,556)
Class C (1,204,827) (96,706)
- -----------------------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (19,068,191) (10,300,115)
Class B (8,965,339) (3,423,832)
Class C (3,441,385) (921,807)
=================================================================================================================
BENEFICIAL INTEREST TRANSACTIONS
- -----------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from beneficial interest transactions:
Class A 739,204,026 42,617,372
Class B 722,633,645 29,355,474
Class C 285,571,885 12,351,024
=================================================================================================================
NET ASSETS
- -----------------------------------------------------------------------------------------------------------------
Total increase 1,796,536,445 105,490,428
- -----------------------------------------------------------------------------------------------------------------
Beginning of period 217,538,147 112,047,719
----------------------------------
End of period (including undistributed net investment
income of $5,227,907 and $1,351,480, respectively) $2,014,074,592 $217,538,147
==================================
</TABLE>
See accompanying Notes to Financial Statements.
18 OPPENHEIMER QUEST BALANCED VALUE FUND
<PAGE> 21
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A YEAR ENDED OCTOBER 31, 1999 1998 1997 1996(1) 1995
=================================================================================================================
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA
- -----------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 15.50 $ 13.99 $ 12.48 $ 10.92 $ 10.09
- -----------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income .21 .26 .20 .23 .27(2)
Net realized and unrealized gain 2.88 3.24 2.65 2.05 1.27
--------------------------------------------------------------
Total income from investment operations 3.09 3.50 2.85 2.28 1.54
- -----------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.26) (.20) (.19) (.22) (.29)
Distributions from net realized gain (1.92) (1.79) (1.15) (.50) (.42)
-------------------------------------------------------------
Total dividends and distributions
to shareholders (2.18) (1.99) (1.34) (.72) (.71)
- -----------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 16.41 $ 15.50 $ 13.99 $ 12.48 $ 10.92
=============================================================
=================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(3) 21.48% 27.91% 25.18% 21.84% 16.35%
- -----------------------------------------------------------------------------------------------------------------
=================================================================================================================
RATIOS/SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $899,084 $135,821 $79,751 $49,322 $37,082
- -----------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $454,409 $103,244 $61,618 $43,428 $33,397
- -----------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(4)
Net investment income 1.81% 2.07% 1.68% 2.03% 2.60%(5)
Expenses 1.51% 1.55%(6) 1.58%(6) 1.90%(6) 1.99%(5,6)
- -----------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(7) 58% 165% 89% 124% 130%
</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 for periods of less than one full year.
5. During the periods presented above, the former Advisor voluntarily waived a
portion of its fees. If such waivers had not been in effect, the ratios of net
investment income to average net assets and the ratios of expenses to average
net assets would have been 2.57% and 2.02%, respectively, for Class A, 1.73%
and 2.57%, respectively, for Class B and 1.43% and 2.84%, respectively, for
Class C, for the year ended October 31, 1995.
6. 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 October 31, 1999, were $1,919,765,223 and $473,018,780,
respectively.
See accompanying Notes to Financial Statements.
19 OPPENHEIMER QUEST BALANCED VALUE FUND
<PAGE> 22
FINANCIAL HIGHLIGHTS Continued
<TABLE>
<CAPTION>
CLASS B YEAR ENDED OCTOBER 31, 1999 1998 1997 1996(1) 1995
=================================================================================================================
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA
- -----------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 15.40 $ 13.92 $ 12.42 $ 10.88 $ 10.07
- -----------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income .14 .19 .15 .17 .19(2)
Net realized and unrealized gain 2.84 3.20 2.62 2.03 1.28
=============================================================
Total income from investment operations 2.98 3.39 2.77 2.20 1.47
- -----------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.18) (.12) (.12) (.16) (.24)
Distributions from net realized gain (1.92) (1.79) (1.15) (.50) (.42)
-------------------------------------------------------------
Total dividends and distributions
to shareholders (2.10) (1.91) (1.27) (.66) (.66)
- -----------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 16.28 $ 15.40 $ 13.92 $ 12.42 $ 10.88
==============================================================
=================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(3) 20.84% 27.08% 24.55% 21.07% 15.65%
=================================================================================================================
RATIOS/SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 801,485 $60,807 $25,609 $13,175 $7,623
- -----------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 355,797 $39,165 $19,230 $10,097 $4,856
- -----------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(4)
Net investment income 1.21% 1.53% 1.09% 1.40% 1.71%(5)
Expenses 2.10% 2.15%(6) 2.17%(6) 2.53%(6) 2.59%(5,6)
- -----------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(7) 58% 165% 89% 124% 130%
</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 for periods of less than one full year.
5. During the periods presented above, the former Advisor voluntarily waived a
portion of its fees. If such waivers had not been in effect, the ratios of net
investment income to average net assets and the ratios of expenses to average
net assets would have been 2.57% and 2.02%, respectively, for Class A, 1.73%
and 2.57%, respectively, for Class B and 1.43% and 2.84%, respectively, for
Class C, for the year ended October 31, 1995.
6. 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 October 31, 1999, were $1,919,765,223 and $473,018,780,
respectively.
See accompanying Notes to Financial Statements.
20 OPPENHEIMER QUEST BALANCED VALUE FUND
<PAGE> 23
<TABLE>
<CAPTION>
CLASS C YEAR ENDED OCTOBER 31, 1999 1998 1997 1996(1) 1995
=================================================================================================================
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA
- -----------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 15.40 $ 13.92 $ 12.43 $ 10.89 $ 10.07
- -----------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income .15 .18 .15 .17 .15(2)
Net realized and unrealized gain 2.83 3.21 2.62 2.02 1.30
--------------------------------------------------------------
Total income from investment operations 2.98 3.39 2.77 2.19 1.45
- -----------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.19) (.12) (.13) (.15) (.21)
Distributions from net realized gain (1.92) (1.79) (1.15) (.50) (.42)
--------------------------------------------------------------
Total dividends and distributions
to shareholders (2.11) (1.91) (1.28) (.65) (.63)
Net asset value, end of period $ 16.27 $15.40 $13.92 $12.43 $10.89
==============================================================
=================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(3) 20.80% 27.12% 24.51% 20.97% 15.38%
- -----------------------------------------------------------------------------------------------------------------
=================================================================================================================
RATIOS/SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 313,506 $20,910 $6,687 $2,809 $1,828
- -----------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 139,356 $11,598 $4,724 $2,200 $ 968
- -----------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(4)
Net investment income 1.21% 1.60% 1.09% 1.40% 1.39%(5)
Expenses 2.10% 2.15%(6) 2.17%(6) 2.53%(6) 2.88%(5,6)
- -----------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(7) 58% 165% 89% 124% 130%
</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 for periods of less than one full year.
5. During the periods presented above, the former Advisor voluntarily waived a
portion of its fees. If such waivers had not been in effect, the ratios of net
investment income to average net assets and the ratios of expenses to average
net assets would have been 2.57% and 2.02%, respectively, for Class A, 1.73%
and 2.57%, respectively, for Class B and 1.43% and 2.84%, respectively, for
Class C, for the year ended October 31, 1995.
6. 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 October 31, 1999, were $1,919,765,223 and $473,018,780,
respectively.
See accompanying Notes to Financial Statements.
21 OPPENHEIMER QUEST BALANCED VALUE FUND
<PAGE> 24
NOTES TO FINANCIAL STATEMENTS
===============================================================================
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Quest Balanced Value Fund (the Fund), a series of Oppenheimer Quest
For Value Funds, is a diversified open-end management investment company
registered under the Investment Company Act of 1940, as amended. The Fund's
investment objective is growth of capital and investment income. 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 on investments up to $1 million. Class B and Class C shares may be
subject to a contingent deferred sales charge (CDSC). 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. 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.
- -------------------------------------------------------------------------------
SECURITIES 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. Foreign currency exchange contracts are valued based on the
closing prices of the foreign currency contract rates in the London foreign
exchange markets on a daily basis as provided by a reliable bank or dealer.
Options are valued based upon the last sale price on the principal exchange on
which the option is traded or, in the absence of any transactions that day, the
value is based upon the last sale price on the prior trading date if it is
within the spread between the closing bid and asked prices. If the last sale
price is outside the spread, the closing bid is used.
22 OPPENHEIMER QUEST BALANCED VALUE FUND
<PAGE> 25
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
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 year ended October
31, 1999, a provision of $70,347 was made for the Fund's projected benefit
obligations resulting in an accumulated liability of $73,419 as of October 31,
1999.
The Board of Trustees has adopted a deferred compensation plan for
independent Trustees that enables Trustees to elect to defer receipt of all or a
portion of annual compensation they are entitled to receive from the Fund. Under
the plan, the compensation deferred is periodically adjusted as though an
equivalent amount had been invested for the Trustees in shares of one or more
Oppenheimer funds selected by the Trustee. The amount paid to the Trustee under
the plan will be determined based upon the performance of the selected funds.
Deferral of Trustees' fees under the plan will not affect the net assets of the
Fund, and will not materially affect the Fund's assets, liabilities or net
income per share.
- --------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations,
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 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.
- --------------------------------------------------------------------------------
EXPENSE OFFSET ARRANGEMENTS. Expenses paid indirectly represent a reduction of
custodian fees for earnings on cash balances maintained by the Fund.
23 OPPENHEIMER QUEST BALANCED VALUE FUND
<PAGE> 26
NOTES TO FINANCIAL STATMENTS Continued
================================================================================
1. SIGNIFICANT ACCOUNTING POLICIES Continued
OTHER. Investment transactions are accounted for as of trade date and dividend
income is recorded on the ex-dividend date. Foreign dividend income is often
recorded on the payable date. Realized gains and losses on investments and
unrealized appreciation and depreciation are determined on an identified cost
basis, which is the same basis used for federal income tax purposes.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of income and expenses during the reporting
period. Actual results could differ from those estimates.
================================================================================
2. SHARES OF BENEFICIAL INTEREST
The Fund has authorized an unlimited number of $.01 par value shares of
beneficial interest of each class. Transactions in shares of beneficial interest
were as follows:
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31, 1999 YEAR ENDED OCTOBER 31, 1998
SHARES AMOUNT SHARES AMOUNT
- -----------------------------------------------------------------------------------------------------------------
CLASS A
<S> <C> <C> <C> <C>
Sold 52,113,404 $ 837,757,585 4,356,057 $ 61,783,195
Dividends and/or
distributions reinvested 1,593,155 23,977,272 862,256 11,210,143
Redeemed (7,682,755) (122,530,831) (2,153,035) (30,375,966)
-------------------------------------------------------------------------
Net increase 46,023,804 $739,204,026 3,065,278 $42,617,372
=========================================================================
- -------------------------------------------------------------------------------------------------------------------
CLASS B
Sold 47,556,516 $ 759,392,906 2,418,672 $ 34,018,626
Dividends and/or
distributions reinvested 754,928 11,312,030 276,040 3,565,995
Redeemed (3,017,631) (48,071,291) (585,932) (8,229,147)
-------------------------------------------------------------------------
Net increase 45,293,813 $722,633,645 2,108,780 $29,355,474
=========================================================================
- -------------------------------------------------------------------------------------------------------------------
CLASS C
Sold 19,021,846 $ 303,512,681 990,115 $ 14,015,246
Dividends and/or
distributions reinvested 290,560 4,352,373 74,668 964,286
Redeemed (1,400,575) (22,293,169) (187,201) (2,628,508)
-------------------------------------------------------------------------
Net increase 17,911,831 $285,571,885 877,582 $12,351,024
=========================================================================
</TABLE>
================================================================================
3. UNREALIZED GAINS AND LOSSES ON SECURITIES
As of October 31, 1999, net unrealized appreciation on securities of $38,391,013
was composed of gross appreciation of $122,174,994, and gross depreciation of
$83,783,981.
24 OPPENHEIMER QUEST BALANCED VALUE FUND
<PAGE> 27
================================================================================
4. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
MANAGEMENT FEES. Management fees paid to the Manager were in accordance with
the investment advisory agreement with the Fund, which provides for a fee of
0.85% of average annual net assets. The Fund's management fee for the year
ended October 31, 1999, was 0.85% of average annual net assets for each class
of shares.
- ------------------------------------------------------------------------------
SUB-ADVISOR FEES. The Manager pays OpCap Advisors (the Sub-Advisor) a monthly
fee based on the fee schedule set forth in the Prospectus. For the year ended
October 31, 1999, the Manager paid $2,462,902 to the Sub-Advisor.
- ------------------------------------------------------------------------------
TRANSFER AGENT FEES. 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 $20.00 for
each Fund shareholder account and reimburses OFS for its out-of-pocket
expenses. During the year ended October 31, 1999, the Fund paid OFS $1,156,801.
- ------------------------------------------------------------------------------
DISTRIBUTION AND SERVICE PLAN FEES. Under its General Distributor's Agreement
with the Manager, the Distributor acts as the Fund's principal underwriter in
the continuous public offering of the different classes of shares of the Fund.
The compensation paid to (or retained by) the Distributor from the sale of
shares or on the redemption of shares is shown in the table below for the
period indicated.
<TABLE>
<CAPTION>
AGGREGATE CLASS A COMMISSIONS COMMISSIONS COMMISSIONS
FRONT-END FRONT-END ON CLASS A ON CLASS B ON CLASS C
SALES CHARGES SALES CHARGES SHARES SHARES SHARES
ON CLASS A RETAINED BY ADVANCED BY ADVANCED BY ADVANCED BY
YEAR ENDED SHARES DISTRIBUTOR DISTRIBUTOR(1) DISTRIBUTOR(1) DISTRIBUTOR(1)
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
October 31, 1999 $8,149,674 $2,088,939 $855,903 $20,435,217 $2,322,407
</TABLE>
1. The Distributor advances commission payments to dealers for certain sales of
Class A shares and for sales of Class B and Class C shares from its own
resources at the time of sale.
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C
CONTINGENT DEFERRED CONTINGENT DEFERRED CONTINGENT DEFERRED
SALES CHARGES SALES CHARGES SALES CHARGES
YEAR ENDED RETAINED BY DISTRIBUTOR RETAINED BY DISTRIBUTOR RETAINED BY DISTRIBUTOR
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
October 31, 1999 $5,363 $554,662 $44,093
</TABLE>
The Fund has adopted Distribution and Service Plans for Class A, Class B
and Class C shares under Rule 12b-1 of the Investment Company Act. Under those
plans the Fund pays the Distributor for all or a portion of its costs incurred
in connection with the distribution and/or servicing of the shares of the
particular class.
25 OPPENHEIMER QUEST BALANCED VALUE FUND
<PAGE> 28
NOTES TO FINANCIAL STATEMENTS Continued
===============================================================================
4. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued
CLASS A DISTRIBUTION AND SERVICE PLAN FEES. Under the plan, the Fund pays an
asset-based sales charge to the Distributor at an annual rate of 0.15% of
average annual net assets of Class A shares of the Fund. The Fund also pays a
service fee to the Distributor of 0.25% of the average annual net assets of
Class A shares. The Distributor currently uses the fees it receives from the
Fund to pay brokers, dealers and other financial institutions. The Distributor
makes payments to plan recipients quarterly at an annual rate not to exceed
0.25% of the average annual net assets consisting of Class A shares of the Fund.
For the fiscal year ended October 31, 1999, payments under the Class A Plan
totaled $1,809,304, all of which was paid by the Distributor to recipients. That
included $84,259 paid to an affiliate of the Distributor's parent company. Any
unreimbursed expenses the Distributor incurs with respect to Class A shares in
any fiscal year cannot be recovered in subsequent years.
- --------------------------------------------------------------------------------
CLASS B AND CLASS C DISTRIBUTION AND SERVICE PLAN FEES. Under each plan, service
fees and distribution fees are computed on the average of the net asset value of
shares in the respective class, determined as of the close of each regular
business day during the period. The Class B and Class C plans provide for the
Distributor to be compensated at a flat rate, whether the Distributor's
distribution expenses are more or less than the amounts paid by the Fund under
the plan during the period for which the fee is paid.
The Distributor retains the asset-based sales charge on Class B shares. The
Distributor retains the asset-based sales charge on Class C shares during the
first year the shares are outstanding. The asset-based sales charges on Class B
and Class C shares allow investors to buy shares without a front-end sales
charge while allowing the Distributor to compensate dealers that sell those
shares.
The Distributor's actual expenses in selling Class B and Class C shares may
be more than the payments it receives from the contingent deferred sales charges
collected on redeemed shares and from the Fund under the plans. If either the
Class B or the Class C plan is terminated by the Fund, the Board of Trustees may
allow the Fund to continue payments of the asset-based sales charge to the
Distributor for distributing shares before the plan was terminated. The plans
allow for the carry-forward of distribution expenses, to be recovered from
asset-based sales charges in subsequent fiscal periods.
Distribution fees paid to the Distributor for the year ended October 31, 1999,
were as follows:
<TABLE>
<CAPTION>
DISTRIBUTOR'S DISTRIBUTOR'S
AGGREGATE UNREIMBURSED
UNREIMBURSED EXPENSES AS %
TOTAL PAYMENTS AMOUNT RETAINED EXPENSES OF NET ASSETS
UNDER PLAN BY DISTRIBUTOR UNDER PLAN OF CLASS
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class B Plan $3,537,744 $3,199,159 $23,496,551 2.93%
Class C Plan 1,385,575 1,012,368 3,723,970 1.19
</TABLE>
26 OPPENHEIMER QUEST BALANCED VALUE FUND
<PAGE> 29
===============================================================================
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 0.45%. 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 0.08%
per annum.
The Fund had no borrowings outstanding during the year ended October 31,
1999.
27 OPPENHEIMER QUEST BALANCED VALUE FUND
<PAGE> 30
REPORT OF INDEPENDENT ACCOUNTANTS
===============================================================================
TO THE BOARD OF TRUSTEES AND SHAREHOLDERS OF
OPPENHEIMER QUEST FOR VALUE FUNDS
In our opinion, the accompanying statement of assets and liabilities, including
the statement of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Oppenheimer Quest Balanced Value
Fund (one of the portfolios constituting Oppenheimer Quest For Value Funds,
hereafter referred to as the Fund) at October 31, 1999, and the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended and the financial highlights for each of
the five years in the period then ended, in conformity with generally accepted
accounting principles. These financial statements and financial highlights
(hereafter referred to as financial statements) are the responsibility of the
Fund's management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with generally accepted auditing standards,
which require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial presentation. We believe that our audits, which included confirmation
of securities at October 31, 1999, by correspondence with the custodian, provide
a reasonable basis for the opinion expressed above.
PRICEWATERHOUSECOOPERS LLP
Denver, Colorado
November 19, 1999
28 OPPENHEIMER QUEST BALANCED VALUE FUND
<PAGE> 31
FEDERAL INCOME TAX INFORMATION Unaudited
===============================================================================
In early 2000 shareholders will receive information regarding all dividends and
distributions paid to them by the Fund during calendar year 1999. Regulations of
the U.S. Treasury Department require the Fund to report this information to the
Internal Revenue Service.
Distributions of $2.0205, $1.9970 and $1.9996 per share were paid to Class
A, Class B and Class C shareholders, respectively, on November 27, 1998, of
which $0.7693 was designated as a "capital gain distribution" for federal income
tax purposes. Whether received in stock or in cash, the capital gain
distribution should be treated by shareholders as a gain from the sale of
capital assets held for more than one year (long-term capital gains).
Dividends paid by the Fund during the fiscal year ended October 31, 1999,
which are not designated as capital gain distributions should be multiplied by
7.25% to arrive at the net amount eligible for the corporate dividend-received
deduction.
The foregoing information is presented to assist shareholders in reporting
distributions received from the Fund to the Internal Revenue Service. Because of
the complexity of the federal regulations which may affect your individual tax
return and the many variations in state and local tax regulations, we recommend
that you consult your tax advisor for specific guidance.
29 OPPENHEIMER QUEST BALANCED VALUE FUND
<PAGE> 32
OPPENHEIMER QUEST BALANCED VALUE FUND
A Series of Oppenheimer Quest For Value Funds
===============================================================================
OFFICERS AND TRUSTEES Bridget A. Macaskill, Chairman of the Board
of Trustees and President
Paul Y. Clinton, Trustee
Thomas W. Courtney, Trustee
Robert G. Galli, Trustee
Lacy B. Herrmann, Trustee
George Loft, Trustee
O. Leonard Darling, Vice President
Andrew J. Donohue, Secretary
Brian W. Wixted, Treasurer
Robert G. Zack, Assistant Secretary
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
===============================================================================
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 Mayer, Brown & Platt
This is a copy of a report to shareholders of
Oppenheimer Quest Balanced Value Fund. This
report must be preceded or accompanied by a
Prospectus of Oppenheimer Quest Balanced
Value Fund. For material information
concerning the Fund, see the Prospectus.
SHARES OF OPPENHEIMER FUNDS ARE NOT DEPOSITS
OR OBLIGATIONS OF ANY BANK, ARE NOT
GUARANTEED BY ANY BANK, ARE NOT INSURED BY
THE FDIC OR ANY OTHER AGENCY, AND INVOLVE
INVESTMENT RISKS, INCLUDING THE POSSIBLE LOSS
OF THE PRINCIPAL AMOUNT INVESTED.
30 OPPENHEIMER QUEST BALANCED VALUE FUND
<PAGE> 33
OPPENHEIMERFUNDS FAMILY
<TABLE>
======================================================================================================
GLOBAL EQUITY
- ------------------------------------------------------------------------------------------------------
<S> <C> <C>
Developing Markets Fund Global Fund
International Small Company Fund Quest Global Value Fund
Europe Fund Global Growth & Income Fund
International Growth Fund
======================================================================================================
EQUITY
- ------------------------------------------------------------------------------------------------------
Stock Stock & Bond
Enterprise Fund(1) Main Street(R) Growth & Income Fund
Discovery Fund Quest Opportunity Value Fund
Main Street(R) Small Cap Fund Total Return Fund
Quest Small Cap Value Fund Quest Balanced Value Fund
MidCap Fund Capital Income Fund(2)
Multiple Strategies Fund Capital Appreciation Fund
Growth Fund Disciplined Allocation Fund
Disciplined Value Fund Convertible Securities Fund
Quest Value Fund
Trinity Growth Fund Specialty
Trinity Core Fund Real Asset Fund
Trinity Value Fund Gold & Special Minerals Fund
======================================================================================================
FIXED INCOME
- ------------------------------------------------------------------------------------------------------
Taxable Municipal
International Bond Fund California Municipal Fund(3)
World Bond Fund Main Street(R) California Municipal Fund(3)
High Yield Fund Florida Municipal Fund(3)
Champion Income Fund New Jersey Municipal Fund(3)
Strategic Income Fund New York Municipal Fund(3)
Bond Fund Pennsylvania Municipal Fund(3)
Senior Floating Rate Fund Municipal Bond Fund
U.S. Government Trust Insured Municipal Fund
Limited-Term Government Fund Intermediate Municipal Fund
Rochester Division
Rochester Fund Municipals
Limited Term New York Municipal Fund
======================================================================================================
MONEY MARKET(4)
- ------------------------------------------------------------------------------------------------------
Money Market Fund Cash Reserves
</TABLE>
1. Effective July 1, 1999, this fund is closed to new investors. See prospectus
for details.
2. On 4/1/99, the Fund's name was changed from "Oppenheimer Equity Income Fund."
3. Available to investors only in certain states.
4. An investment in money market funds is neither insured nor guarnteed 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.
31 OPPENHEIMER QUEST BALANCED VALUE FUND
<PAGE> 34
INFORMATION AND SERVICES
- -------------------------------------------------------------------------------
As an Oppenheimer fund shareholder, you can benefit from special services
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
WWW.OPPENHEIMERFUNDS.COM
GENERAL INFORMATION
Mon-Fri 8:30am-9pm ET, Sat 10am-4pm ET
1.800.525.7048
TELEPHONE TRANSACTIONS
Mon-Fri 8:30am-9pm ET, Sat 10am-4pm ET
1.800.852.8457
PHONELINK
24-hr automated information and automated transactions
1.800.533.3310
TELECOMMUNICATIONS DEVICE FOR THE DEAF (TDD)
Mon-Fri 8:30am-7pm ET
1.800.843.4461
OPPENHEIMERFUNDS INFORMATION HOTLINE
24 hours a day, timely and insightful messages on the economy and issues that
may affect your investments
1.800.835.3104
TRANSFER AND SHAREHOLDER SERVICING AGENT
OppenheimerFunds Services
P.O. Box 5270, Denver, CO 80217-5270
[OppenheimerFunds(R) LOGO]
Distributor, Inc.
RA0257.001.1099 December 30, 1999
