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[GRAPHIC]
Semiannual Report April 30, 2000
Oppenheimer
Quest Small Cap Value Fund
[LOGO OF OPPENHEIMER FUNDS(R)]
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REPORT HIGHLIGHTS
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Effective April 28, 2000, just a few days shy of the close of the reporting
period, a new portfolio management team assumed investment responsibilities for
the Fund.
While small cap stocks generally kept up with the performance of large cap
stocks, growth continued to outperform value regardless of capitalization.
Many companies in the portfolio are benefiting from the productivity
enhancements made possible by the Internet and other new technology.
Contents
1 President's Letter
3 An Interview with Your Fund's Managers
10 Financial Statements
25 Officers and Trustees
Cumulative Total Returns*
For the 6-Month Period Ended 4/30/00
Class A Without Sales Chg. With Sales Chg.
---------------------------------------------------------
8.80% 2.55%
Class B Without Sales Chg. With Sales Chg.
---------------------------------------------------------
8.48% 3.48%
Class C Without Sales Chg. With Sales Chg.
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8.56% 7.56%
*See Notes on page 8 for further details.
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PRESIDENT'S LETTER
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Dear Shareholder,
For many years, we have encouraged investors to consider whether they could
tolerate more risk in their long-term investments by participating in the stock
market, which has historically provided higher long-term returns than any other
asset class. Today, however, we have a very different concern: some investors
may have assumed too much risk by concentrating their investments in just a
handful of stocks or sectors or by "chasing performance."
Several months ago, Alan Greenspan, the Chairman of the Federal Reserve
Board, stated his view that the spectacular returns some sectors of the market
were then experiencing may have been partly responsible for pushing our economy
to growth rates that could lead to higher inflation. Today it is clear that the
dramatic rise in the prices of a narrow segment of the market created enormous
wealth for some investors. The result of this newfound wealth has been a
substantial increase in spending that the Federal Reserve Board believes could
threaten the healthy growth of our economy.
That's why the Fed has been raising interest rates steadily and decisively
over the past year. By making borrowing more expensive, the Fed has been
attempting to slow economic growth. It is a precarious balancing act: too much
tightening creates the risk of recession, while too little opens the door to
inflation.
The implications of the Fed's resolve are clear: investors must continue to
be prepared for near-term market volatility. In the bond market, higher interest
rates usually lead to lower bond prices. In the stock market, slower economic
growth often reduces corporate earnings and puts downward pressure on stock
prices. Highly valued stocks can be particularly vulnerable to a correction. The
Securities and Exchange Commission Chairman, Arthur Levitt, has been cautioning
investors against the expectation that the types of returns seen in the recent
bull market will last forever.
[PHOTO]
Bridget A. Macaskill
President
Oppenheimer Quest Small Cap
Value Fund
1 OPPENHEIMER QUEST SMALL CAP VALUE FUND
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PRESIDENT'S LETTER
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Because of the prospect of continued market volatility, we encourage you to
consider diversifying your investments. Indeed, diversification may help you
mitigate the effects of sharp declines in any one area. It may also help you
better position your portfolio to seek greater returns over the long run.
While some "new economy" stocks have risen over the last year, many so-called
"old economy" stocks are selling at low prices. In the bond market, higher
interest rates over the short term may reduce inflation concerns, which should
be beneficial over the long term. By buying out-of-favor investments, you may be
able to profit when and if they return to favor.
What specific investments should you consider today so that you are prepared
for tomorrow? The answer depends on your individual investing goals, risk
tolerance and financial circumstances. We urge you to talk with your financial
advisor about ways to diversify your portfolio. This may include considering
global diversification as part of your strategy. While investing abroad has
special risks, such as the effects of foreign currency fluctuations, it also
offers opportunities to participate in global economic growth and to hedge
against the volatility in U.S. markets.
We thank you for your continued confidence in OppenheimerFunds, The Right Way
to Invest.
Sincerely,
/s/ Bridget A. Macaskill
Bridget A. Macaskill
May 19, 2000
2 OPPENHEIMER QUEST SMALL CAP VALUE FUND
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AN INTERVIEW WITH YOUR FUND'S MANAGERS
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How did Oppenheimer Quest Small Cap Value Fund perform?
A. During the six-month period that ended April 30, 2000, the Fund could not
overcome the difficult investment environment for small cap value. While small
cap stocks generally kept up with the performance of large cap stocks, growth
continued to outperform value regardless of capitalization.
How did that investment style participate in the "new economy" of technology?
Even though the Fund might not invest directly in Internet or other technology
companies, it still benefits from owning companies that utilize productivity
enhancing tools made possible by technology. During the period, the Fund also
participated in the "new economy" by owning companies that sell products and
services that enhance the "Internet experience." For example, one portfolio
holding is a maker of high-fidelity audio products and is taking advantage of
the booming demand for computer speakers as consumers download music from the
Internet. The company manufactures and markets a broad range of consumer
electronics products under well-known brand names. The company also makes
loudspeakers, amplifiers and sound mixing consoles for the professional market
segment as well as audio systems for the automotive marketplace.
[PHOTO]
New Portfolio Management Team
(l to r)1 Mark Zavanelli (Portfolio Manager)
Charles Albers (Portfolio Manager)
Nikos Monoyios
Alex Zhou
1. Effective April 28, 2000, Charles Albers and Mark Zavanelli of
OppenheimerFunds, Inc. the Fund's investment advisor, assumed portfolio
management responsibilities for the Fund and began to implement an investment
process that combines both "value" and "growth" investment styles. Until
4/28/00, OpCap Advisors was the Fund's sub-advisor and its portfolio management
team employed a value investing philosophy. In addition, effective May 19, 2000,
the Fund's name was changed to "Quest Small Cap Fund."
3 OPPENHEIMER QUEST SMALL CAP VALUE FUND
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AN INTERVIEW WITH YOUR FUND'S MANAGERS
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Where else did the Fund uncover value investment opportunities?
Stocks for the portfolio are selected on a company-by-company basis, not based
on industry or sector trends. However, at times a particular segment of the
market may dominate the portfolio.
As of the end of the reporting period, the Fund's holdings included a number
of solid companies in the healthcare industry, an area that had been beaten down
due to bad publicity generated by managed care and Congressional promises to
expand government price controls.
For example, Dentsply International, Inc., the largest U.S. manufacturer of
dental supplies and equipment, has avoided the controversies associated with
managed care and the cloud associated with the possible expansion of government
price controls in healthcare. The reason: dentistry is generally unaffected by
Medicare and managed care, as a large portion of the dental bill is paid
directly by patients. In addition, Dentsply has benefited from its growing
dental practice management software business. The company has boosted revenue
through internal growth as well as acquisitions in the United States and
overseas. About 22% of the stock is owned by management, which suggests that the
people running the company have the same financial interests as stockholders.
A second healthcare company, Cambrex Corp., provides products and services to
the pharmaceutical and biotechnology industries. While the biotechnology
companies themselves have performed very strongly during the period, many of
these companies are in the early stage of their development and do not yet make
money. For this reason, we are more likely to invest in companies such as
Cambrex that market products and services to biotechnology companies, rather
than investing directly in biotech companies.
"It's important to keep in mind that we select stocks for the portfolio on a
company-by-company basis, not based on industry or sector trends."
4 OPPENHEIMER QUEST SMALL CAP VALUE FUND
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Did any holdings disappoint over the period?
Alliant Techsystems, Inc., an aerospace products manufacturer whose revenues are
primarily derived from government contracts, continued to weaken due to cutbacks
in defense spending. In addition, a well-known food distribution company, with
strong brand names, that sells its products through national grocery chains,
could not overcome the bear market in food industry stocks.
Were any significant changes made to the Fund during the reporting period?
Effective April 28, 2000, just a few days shy of the close of the reporting
period, Charles Albers and Mark Zavanelli assumed portfolio management
responsibilities for the Fund and began to implement an investment process that
combines both "value" and "growth" investment styles.
While the overall objective of the Fund will remain the same, the new
management team will seek to employ a disciplined, time-tested investment
approach to the Fund. They employ quantitative models to help determine which
small stocks are likely to outperform other small stocks within the same sector
over the long term, while recognizing the importance of portfolio manager
judgment. The criteria used in the models are based on extensive historical
research and the driving factors the managers believe are behind stock
performance. While the models are the primary decision tool, the managers also
review the fundamental characteristics of each company to complete their
analysis.
Average Annual Total Returns
For the Periods Ended 3/31/002
Class A
1-Year 5-Year 10-Year
---------------------------------
7.47% 8.38% 10.72%
Class B Since
1-Year 5-Year Inception
---------------------------------
8.49% 8.83% 6.97%
Class C Since
1-Year 5-Year Inception
---------------------------------
12.51% 9.12% 6.93%
Because of ongoing market volatility, the Fund's performance since 3/31/00 has
been subject to substantial short-term fluctuations and current performance may
be less than the results shown.
2. See Notes on page 8 for further details.
5 OPPENHEIMER QUEST SMALL CAP VALUE FUND
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AN INTERVIEW WITH YOUR FUND'S MANAGERS
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How does the quantitative model work?
The quantitative models evaluate over 1000 small companies that comprise the
Fund's investment universe. This broad universe includes stocks from many
different industries which have a range of growth and value characteristics. The
new management team believes that this diversity is an advantage, allowing them
to find promising investments regardless of the market environment. For each
company they measure approximately 50 characteristics relating to earnings
growth, valuation, momentum and risk. The stock selection model combines these
factors mathematically to determine a relative rating for each company.
In addition to this stock selection model, the managers have also developed
models that help them to determine which areas of the small cap market offer the
most attractive prospects. For example, these models might steer them to favor
growth or value stocks, or larger compared to smaller stocks within the small
cap universe. Lastly, the managers also adjust their opinion for each company
based on management activities, such as share buybacks or offerings. Over the
past 25 years the management team has conducted many research studies on the
investment implications of these corporate actions, and have developed a method
for integrating this with their other models.
Sector Allocation3
[GRAPHIC]
. Capital Goods 29.0%
. Healthcare 19.5
. Consumer Cyclicals 12.4
. Financial 12.3
. Technology 10.0
. Consumer Staples 5.9
. Basic Materials 5.6
. Energy 3.8
. Communication Services 1.5
6 OPPENHEIMER QUEST SMALL CAP VALUE FUND
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What is the outlook for the Fund over the foreseeable future?
The new management team is generally optimistic about the prospects for small
cap stocks. Historical research indicates that the performance difference
between large and small stocks goes in cycles, and that we are nearing a more
favorable environment for small cap stocks. Furthermore, the managers believe
that the current disparities in valuations between large and small stocks remain
unsustainable. As that gap moves closer to historical norms, small cap stocks
should benefit, which in turn should benefit the Fund. However, whatever the
future has in store, the new management team will continue to adhere to a
long-term, disciplined investment style. That's the factor that we believe will
keep Oppenheimer Quest Small Cap Value Fund an important part of The Right Way
to Invest.
Top Ten Common Stock Holdings3
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Dentsply International, Inc. 5.1%
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AmeriSource Health Corp., Cl. A 4.9
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RenaissanceRe Holdings Ltd. 4.5
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G & K Services, Inc., Cl. A 3.8
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Shared Medical Systems Corp. 3.8
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Precision Castparts Corp. 3.4
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Cambrex Corp. 3.2
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Alliant Techsystems, Inc. 3.1
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MSC Industrial Direct Co., Inc., Cl. A 3.1
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Kaydon Corp. 2.8
Top Five Common Stock Industries3
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Manufacturing 12.7%
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Insurance 11.7
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Healthcare/Drugs 10.8
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Aerospace/Defense 9.3
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Electronics 8.8
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3. Portfolio is subject to change. Percentages are as of April 30, 2000, and
are based on total market value of common stock.
7 OPPENHEIMER QUEST SMALL CAP VALUE FUND
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NOTES
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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. For quarterly
updates on the Fund's performance, please contact your financial advisor, call
us at 1.800.525.7048 or visit our website at www.oppenheimerfunds.com.
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. The Fund's total returns shown do
not show the effects of income taxes on an individual's investment. Taxes may
reduce your actual investment returns on income or gains paid by the Fund or any
gains you may realize if you sell your shares.
Class A shares were first publicly offered on 1/3/89. Unless otherwise noted,
Class A returns include the current maximum initial sales charge of 5.75%. Class
A shares are subject to an annual 0.20% asset-based sales charge. There is a
voluntary waiver of a portion of the Class A asset-based sales charge as
described in the Prospectus.
Class B shares were first publicly offered on 9/1/93. Unless otherwise noted,
Class B returns include the applicable contingent deferred sales charges of 5%
(1-year) and 2% (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 were first publicly offered on 9/1/93. Unless otherwise noted,
Class C returns include the contingent deferred sales charge of 1% for the
one-year period. Class C shares are subject to an annual 0.75% asset-based sales
charge.
An explanation of the calculation of performance is in the Fund's Statement of
Additional Information.
8 OPPENHEIMER QUEST SMALL CAP VALUE FUND
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FINANCIALS
9 OPPENHEIMER QUEST SMALL CAP VALUE FUND
<PAGE>
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STATEMENT OF INVESTMENTS April 30, 2000 / Unaudited
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Market Value
Shares See Note 1
================================================================================
Common Stocks--93.6%
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Basic Materials--5.3%
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Chemicals--4.0%
Cambrex Corp. 165,500 $6,785,500
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McWhorter Technologies, Inc.1 149,600 2,262,700
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9,048,200
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Metals--1.3%
UCAR International, Inc.1 219,200 2,890,700
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Capital Goods--27.1%
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Aerospace/Defense--8.7%
Alliant Techsystems, Inc.1 94,500 6,579,562
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Kaydon Corp. 255,000 5,960,625
--------------------------------------------------------------------------------
Precision Castparts Corp. 173,400 7,239,450
----------
19,779,637
--------------------------------------------------------------------------------
Electrical Equipment--2.6%
Baldor Electric Co. 316,400 5,873,175
--------------------------------------------------------------------------------
Industrial Services--3.9%
MSC Industrial Direct Co., Inc., Cl. A1 461,400 6,459,600
--------------------------------------------------------------------------------
Wallace Computer Services, Inc. 218,200 2,386,562
----------
8,846,162
--------------------------------------------------------------------------------
Manufacturing--11.9%
Albany International Corp., Cl. A 163,993 2,490,644
--------------------------------------------------------------------------------
Interpool, Inc. 349,200 2,553,525
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Lindsay Manufacturing Co. 308,900 5,521,587
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Paxar Corp.1 457,500 4,660,781
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Roper Industries, Inc. 89,100 2,806,650
--------------------------------------------------------------------------------
SPS Technologies, Inc.1 160,200 5,026,275
--------------------------------------------------------------------------------
Teleflex, Inc. 109,800 3,794,962
----------
26,854,424
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Communication Services--1.4%
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Telecommunications-Long Distance--1.4%
C&D Technologies, Inc. 49,300 3,176,769
--------------------------------------------------------------------------------
Consumer Cyclicals--11.6%
--------------------------------------------------------------------------------
Autos & Housing--4.5%
Carlisle Cos., Inc. 134,700 5,547,956
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Harman International Industries, Inc. 71,600 4,680,850
----------
10,228,806
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Consumer Services--1.1%
Chemed Corp. 80,400 2,401,950
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Media--0.9%
Houghton Mifflin Co. 50,000 2,078,125
10 OPPENHEIMER QUEST SMALL CAP VALUE FUND
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Market Value
Shares See Note 1
================================================================================
Retail: Specialty--5.1%
G & K Services, Inc., Cl. A 331,200 $8,114,400
--------------------------------------------------------------------------------
Shopko Stores, Inc.1 188,700 3,373,012
----------
11,487,412
--------------------------------------------------------------------------------
Consumer Staples--5.5%
--------------------------------------------------------------------------------
Food--5.5%
Del Monte Foods Co.1 579,100 5,139,512
--------------------------------------------------------------------------------
Earthgrains Co. 223,300 3,140,156
--------------------------------------------------------------------------------
Performance Food Group Co.1 157,800 4,161,975
----------
12,441,643
--------------------------------------------------------------------------------
Energy--3.6%
--------------------------------------------------------------------------------
Energy Services--3.6%
Cabot Oil & Gas Corp., Cl. A 185,900 3,450,769
--------------------------------------------------------------------------------
St. Mary Land & Exploration Co. 137,900 4,654,125
----------
8,104,894
--------------------------------------------------------------------------------
Financial--11.5%
--------------------------------------------------------------------------------
Banks--0.5%
American Financial Holdings, Inc. 92,600 1,169,075
--------------------------------------------------------------------------------
Insurance--11.0%
Annuity & Life RE Holdings Ltd. 213,300 4,612,613
--------------------------------------------------------------------------------
Horace Mann Educators Corp. 268,500 3,910,031
--------------------------------------------------------------------------------
Pre-Paid Legal Services, Inc.1 127,700 4,086,400
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RenaissanceRe Holdings Ltd. 259,300 9,529,275
--------------------------------------------------------------------------------
Trenwick Group, Inc. 188,677 2,665,063
----------
24,803,382
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Healthcare--18.2%
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Healthcare/Drugs--10.1%
AmeriSource Health Corp., Cl. A1 516,000 10,320,000
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Dentsply International, Inc. 368,600 10,712,438
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Trigon Healthcare, Inc.1 51,700 1,857,969
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22,890,407
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Healthcare/Supplies & Services--8.1%
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CorVel Corp.1 208,300 5,650,138
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First Health Group Corp.1 147,500 4,489,531
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Shared Medical Systems Corp. 192,600 7,980,863
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Vital Signs, Inc. 12,500 250,000
----------
18,370,532
11 OPPENHEIMER QUEST SMALL CAP VALUE FUND
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STATEMENT OF INVESTMENTS Unaudited/Continued
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<TABLE>
<CAPTION>
Market Value
Shares See Note 1
----------------------------------------------------------------------------------------------
<S> <C> <C>
Technology--9.4%
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Computer Software--1.2%
Analysts International Corp. 133,100 $ 1,480,738
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Deltek Systems, Inc.1 91,300 1,112,719
---------------
2,593,457
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Electronics--8.2%
Belden, Inc. 189,700 5,631,719
----------------------------------------------------------------------------------------------
BMC Industries, Inc. 332,100 1,660,500
----------------------------------------------------------------------------------------------
General Semiconductor, Inc.1 169,800 3,396,000
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GenRad, Inc.1 292,400 2,174,725
----------------------------------------------------------------------------------------------
Pioneer-Standard Electronics, Inc. 285,500 4,371,719
----------------------------------------------------------------------------------------------
SBS Technologies, Inc.1 40,500 1,397,250
---------------
18,631,913
---------------
Total Common Stocks (Cost $214,012,299) 211,670,663
<CAPTION>
Principal
Amount
==============================================================================================
<S> <C> <C>
Short-Term Notes--5.7%
Federal Home Loan Bank, 5.88%, 5/1/00 $4,514,000 4,514,000
----------------------------------------------------------------------------------------------
Federal National Mortgage Assn., 5.82%, 5/4/00 8,500,000 8,495,842
---------------
Total Short-Term Notes (Cost $13,009,842) 13,009,842
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Total Investments, at Value (Cost $227,022,141) 99.3% 224,680,505
----------------------------------------------------------------------------------------------
Other Assets Net of Liabilities 0.7 1,529,226
-----------------------------------
Net Assets 100.0% $226,209,731
-----------------------------------
</TABLE>
Footnote to Statement of Investments
1. Non-income-producing security.
See accompanying Notes to Financial Statements.
12 OPPENHEIMER QUEST SMALL CAP VALUE FUND
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STATEMENT OF ASSETS AND LIABILITIES Unaudited
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
April 30, 2000
===============================================================================================
<S> <C>
Assets
Investments, at value (cost $227,022,141)--see accompanying statement $224,680,505
-----------------------------------------------------------------------------------------------
Receivables and other assets:
Investments sold 2,601,827
Shares of beneficial interest sold 417,696
Interest and dividends 21,659
Other 49,655
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Total assets 227,771,342
===============================================================================================
Liabilities
Bank overdraft 262,735
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Payables and other liabilities:
Shares of beneficial interest redeemed 707,801
Investments purchased 293,458
Shareholder reports 137,517
Transfer and shareholder servicing agent fees 55,655
Distribution and service plan fees 46,194
Trustees' compensation 24,742
Other 33,509
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Total liabilities 1,561,611
===============================================================================================
Net Assets $226,209,731
=============
===============================================================================================
Composition of Net Assets
Par value of shares of beneficial interest $ 125,464
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Additional paid-in capital 228,701,360
-----------------------------------------------------------------------------------------------
Accumulated net investment loss (1,062,389)
-----------------------------------------------------------------------------------------------
Accumulated net realized gain on investment transactions 786,932
-----------------------------------------------------------------------------------------------
Net unrealized depreciation on investments (2,341,636)
-------------
Net Assets $226,209,731
=============
===============================================================================================
Net Asset Value Per Share
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$134,011,955 and 7,324,783 shares of beneficial interest outstanding) $18.30
Maximum offering price per share (net asset value plus sales charge
of 5.75% of offering price) $19.42
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Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $73,243,046
and 4,146,857 shares of beneficial interest outstanding) $17.66
-----------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $18,954,730
and 1,074,779 shares of beneficial interest outstanding) $17.64
</TABLE>
See accompanying Notes to Financial Statements.
13 OPPENHEIMER QUEST SMALL CAP VALUE FUND
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STATEMENT OF OPERATIONS Unaudited
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Six Months Ended April 30, 2000
====================================================================================
<S> <C>
Investment Income
Dividends $ 1,108,221
------------------------------------------------------------------------------------
Interest 431,997
------------
Total income 1,540,218
====================================================================================
Expenses
Management fees 1,180,252
------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 326,865
Class B 384,354
Class C 96,924
------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees 331,603
------------------------------------------------------------------------------------
Shareholder reports 128,994
------------------------------------------------------------------------------------
Custodian fees and expenses 9,264
------------------------------------------------------------------------------------
Trustees' compensation 5,456
------------------------------------------------------------------------------------
Other 124,087
------------
Total expenses 2,587,799
Less expenses paid indirectly (7,829)
------------
Net expenses 2,579,970
====================================================================================
Net Investment Loss (1,039,752)
====================================================================================
Realized and Unrealized Gain
Net realized gain on investments 8,902,113
------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on investments 11,336,897
------------
Net realized and unrealized gain 20,239,010
====================================================================================
Net Increase in Net Assets Resulting from Operations $19,199,258
============
</TABLE>
See accompanying Notes to Financial Statements.
14 OPPENHEIMER QUEST SMALL CAP VALUE FUND
<PAGE>
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STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended
April 30, Year Ended
2000 October 31,
(Unaudited) 1999
========================================================================================
<S> <C> <C>
Operations
Net investment loss $(1,039,752) $(2,342,454)
----------------------------------------------------------------------------------------
Net realized gain (loss) 8,902,113 (7,872,596)
----------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation 11,336,897 11,641,212
-------------------------------
Net increase in net assets resulting from operations 19,199,258 1,426,162
========================================================================================
Dividends and/or Distributions to Shareholders
Distributions from net realized gain:
Class A (5,138) (5,782,692)
Class B (2,912) (3,157,168)
Class C (1,931) (839,170)
----------------------------------------------------------------------------------------
Distributions in excess of net realized gain:
Class A -- (137,547)
Class B -- (75,096)
Class C -- (19,960)
========================================================================================
Beneficial Interest Transactions
Net increase (decrease) in net assets resulting from
beneficial interest transactions:
Class A (28,563,608) (28,052,430)
Class B (15,829,761) (11,675,938)
Class C (3,552,903) (5,034,538)
========================================================================================
Net Assets
Total decrease (28,756,995) (53,348,377)
----------------------------------------------------------------------------------------
Beginning of period 254,966,726 308,315,103
-------------------------------
End of period (including accumulated net investment
losses of $1,062,389 and $22,637, respectively) $226,209,731 $254,966,726
===============================
</TABLE>
See accompanying Notes to Financial Statements.
15 OPPENHEIMER QUEST SMALL CAP VALUE FUND
<PAGE>
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Year
Ended Ended
April 30, 2000 Oct. 31,
Class A (Unaudited) 1999 1998 1997 19961 1995
==================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $16.82 $17.29 $22.26 $19.03 $17.31 $16.33
----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.03) (.10) (.09) (.07) .03 .112
Net realized and unrealized gain (loss) 1.51 .18 (3.02) 5.66 2.79 1.29
-------------------------------------------------------------------------
Total income (loss) from
investment operations 1.48 .08 (3.11) 5.59 2.82 1.40
----------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income -- -- -- -- (.11) --
Distributions from net realized gain --3 (.54) (1.86) (2.36) (.99) (.42)
Distributions in excess of net realized gain -- (.01) -- -- -- --
-------------------------------------------------------------------------
Total dividends and/or distributions to shareholders -- (.55) (1.86) (2.36) (1.10) (.42)
----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $18.30 $16.82 $17.29 $22.26 $19.03 $17.31
=========================================================================
==================================================================================================================================
Total Return, at Net Asset Value4 8.80% 0.38% (15.05)% 32.72% 17.17% 8.82%
==================================================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in thousands) $134,012 $151,059 $183,567 $181,973 $102,746 $116,307
----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $140,335 $170,205 $201,952 $131,503 $117,765 $119,440
----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:5
Net investment income (loss) (0.67)% (0.60)% (0.42)% (0.32)% 0.11% 0.67%
Expenses 1.99% 1.96% 1.80%6 1.78%6 1.90%6 1.80%6
----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate7 35% 87% 65% 82% 70% 76%
</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. Less than $0.005 per share.
4. Assumes a $1,000 hypothetical initial investment on the business day before
the first day of the fiscal period (or inception of offering), with all
dividends and distributions reinvested in additional shares on the
reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in
the total returns. Total returns are not annualized for periods of less than
one full year.
5. Annualized for periods of less than one full year.
6. Expense ratio has not been grossed up to reflect the effect of expenses paid
indirectly.
7. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities
owned during the period. Securities with a maturity or expiration date at the
time of acquisition of one year or less are excluded from the calculation.
Purchases and sales of investment securities (excluding short-term
securities) for the period ended April 30, 2000, were $79,722,311 and
$119,099,819, respectively.
See accompanying Notes to Financial Statements.
16 OPPENHEIMER QUEST SMALL CAP VALUE FUND
<PAGE>
<TABLE>
<CAPTION>
Six Months Year
Ended Ended
April 30, 2000 Oct. 31,
Class B (Unaudited) 1999 1998 1997 19961 1995
==================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $16.28 $16.84 $21.83 $18.79 $17.11 $16.24
----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.15) (.22) (.12) (.05) (.06) .022
Net realized and unrealized gain (loss) 1.53 .21 (3.01) 5.45 2.76 1.27
-------------------------------------------------------------------------
Total income (loss) from investment
operations 1.38 (.01) (3.13) 5.40 2.70 1.29
----------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- -- -- -- (.03) --
Distributions from net realized gain --3 (.54) (1.86) (2.36) (.99) (.42)
-------------------------------------------------------------------------
Distributions in excess of net realized gain -- (.01) -- -- -- --
Total dividends and/or distributions to shareholders -- (.55) (1.86) (2.36) (1.02) (.42)
----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $17.66 $16.28 $16.84 $21.83 $18.79 $17.11
=========================================================================
==================================================================================================================================
Total Return, at Net Asset Value4 8.48% (0.16)% (15.47)% 32.05% 16.57% 8.17%
==================================================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in thousands) $73,243 $82,949 $98,041 $79,754 $30,766 $23,440
----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $77,165 $94,863 $97,818 $47,462 $26,478 $20,105
----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:5
Net investment income (loss) (1.21)% (1.10)% (0.92)% (0.80)% (0.37)% 0.09%
Expenses 2.52% 2.45% 2.31%6 2.27%6 2.38%6 2.37%6
----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate7 35% 87% 65% 82% 70% 76%
</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. Less than $0.005 per share.
4. Assumes a $1,000 hypothetical initial investment on the business day before
the first day of the fiscal period (or inception of offering), with all
dividends and distributions reinvested in additional shares on the
reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in
the total returns. Total returns are not annualized for periods of less than
one full year.
5. Annualized for periods of less than one full year.
6. Expense ratio has not been grossed up to reflect the effect of expenses paid
indirectly.
7. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities
owned during the period. Securities with a maturity or expiration date at the
time of acquisition of one year or less are excluded from the calculation.
Purchases and sales of investment securities (excluding short-term
securities) for the period ended April 30, 2000 were $79,722,311 and
$119,099,819, respectively.
See accompanying Notes to Financial Statements.
17 OPPENHEIMER QUEST SMALL CAP VALUE FUND
<PAGE>
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS Continued
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Year
Ended Ended
April 30, 2000 Oct. 31,
Class C (Unaudited) 1999 1998 1997 19961 1995
==================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $16.25 $16.81 $21.79 $18.76 $17.11 $16.23
---------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.16) (.25) (.13) (.08) (.05) .012
Net realized and unrealized gain (loss) 1.55 .24 (2.99) 5.47 2.75 1.29
------------------------------------------------------------------------
Total income (loss) from investment
operations 1.39 (.01) (3.12) 5.39 2.70 1.30
---------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- -- -- -- (.06) --
Distributions from net realized gain --3 (.54) (1.86) (2.36) (.99) (.42)
Distributions in excess of net realized gain -- (.01) -- -- -- --
------------------------------------------------------------------------
Total dividends and/or distributions to shareholders -- (.55) (1.86) (2.36) (1.05) (.42)
---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $17.64 $16.25 $16.81 $21.79 $18.76 $17.11
========================================================================
==================================================================================================================================
Total Return, at Net Asset Value4 8.56% (0.16)% (15.45)% 32.05% 16.55% 8.24%
==================================================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in thousands) $18,955 $20,959 $26,707 $24,512 $13,181 $9,068
---------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $19,462 $24,964 $28,647 $17,401 $11,501 $6,114
---------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:5
Net investment income (loss) (1.21)% (1.10)% (0.92)% (0.81)% (0.40)% 0.08%
Expenses 2.52% 2.45% 2.31%6 2.28%6 2.40%6 2.38%6
---------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate7 35% 87% 65% 82% 70% 76%
</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. Less than $0.005 per share.
4. Assumes a $1,000 hypothetical initial investment on the business day before
the first day of the fiscal period (or inception of offering), with all
dividends and distributions reinvested in additional shares on the
reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in
the total returns. Total returns are not annualized for periods of less than
one full year.
5. Annualized for periods of less than one full year.
6. Expense ratio has not been grossed up to reflect the effect of expenses paid
indirectly.
7. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities
owned during the period. Securities with a maturity or expiration date at the
time of acquisition of one year or less are excluded from the calculation.
Purchases and sales of investment securities (excluding short-term
securities) for the period ended April 30, 2000 were $79,722,311 and
$119,099,819, respectively.
See accompanying Notes to Financial Statements.
18 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 an 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 subadvisory
agreement with OpCap Advisors.
The Fund offers Class A, Class B and Class C shares. Class A shares are
sold at their offering price, which is normally net asset value plus an initial
sales charge. Class B and Class C shares are sold without an initial sales
charge but 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 shares 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. Securities for which quotations are readily available are
valued at the last sale price, or if in the absence of a sale, at the last sale
price on the prior trading day if it is within the spread of the closing bid and
asked prices, and if not, at the closing bid price. Securities (including
restricted securities) for which quotations are not readily available are valued
primarily using dealer-supplied valuations, a portfolio pricing service
authorized by the Board of Trustees, or at their fair value. Fair value is
determined in good faith under consistently applied procedures under the
supervision of the Board of Trustees. Foreign currency contracts are valued
based on the closing prices of the forward currency contract rates in the London
foreign exchange markets on a daily basis as provided by a reliable bank, dealer
or pricing service. Short-term "money market type" debt securities with
remaining maturities of 60 days or less are valued at cost (or last determined
market value) and adjusted for amortization or accretion 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.
--------------------------------------------------------------------------------
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. As of October 31, 1999, the
Fund had available for federal income tax purposes an unused capital loss
carryover of approximately $7,549,000, expiring in 2007.
19 OPPENHEIMER QUEST SMALL CAP VALUE FUND
<PAGE>
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
--------------------------------------------------------------------------------
================================================================================
1. Significant Accounting Policies Continued
Trustees' Compensation. The Fund has adopted an unfunded retirement plan for the
Fund's independent Board of 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, 2000, a credit of $1,232 was made for the Fund's projected
benefit obligations resulting in an accumulated liability of $21,405 as of April
30, 2000.
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 Board of Trustees in shares of one
or more Oppenheimer funds selected by the trustee. The amount paid to the Board
of Trustees 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 investment 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.
--------------------------------------------------------------------------------
Other. Investment transactions are accounted for as of trade date and dividend
income is recorded on the ex-dividend date. Certain dividends from foreign
securities will be recorded as soon as the Fund is informed of the dividend if
such information is obtained subsequent to the ex-dividend 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.
20 OPPENHEIMER QUEST SMALL CAP VALUE FUND
<PAGE>
================================================================================
2. Shares of Beneficial Interest
The Fund has authorized an unlimited number of $.01 par value shares of
beneficial interest of each class. Transactions in shares of beneficial interest
were as follows:
<TABLE>
<CAPTION>
Six Months Ended April 30, 2000 Year Ended October 31, 1999
Shares Amount Shares Amount
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Sold 1,421,992 $ 24,620,865 4,182,148 $ 73,860,752
Dividends and/or
distributions reinvested 291 4,948 333,175 5,733,935
Redeemed (3,078,510) (53,189,421) (6,148,237) (107,647,117)
-----------------------------------------------------------------------
Net decrease (1,656,227) $(28,563,608) (1,632,914) $ (28,052,430)
=======================================================================
-----------------------------------------------------------------------------------------------------
Class B
Sold 631,802 $ 10,526,062 1,802,096 $ 30,900,063
Dividends and/or
distributions reinvested 170 2,801 185,249 3,099,205
Redeemed (1,580,174) (26,358,624) (2,714,320) (45,675,206)
-----------------------------------------------------------------------
Net decrease (948,202) $(15,829,761) (726,975) $ (11,675,938)
=======================================================================
-----------------------------------------------------------------------------------------------------
Class C
Sold 265,976 $ 4,418,682 778,674 $ 13,281,277
Dividends and/or
distributions reinvested 115 1,903 49,695 829,897
Redeemed (480,815) (7,973,488) (1,127,488) (19,145,712)
-----------------------------------------------------------------------
Net decrease (214,724) $ (3,552,903) (299,119) $ (5,034,538)
=======================================================================
</TABLE>
================================================================================
3. Unrealized Gains and Losses on Securities
As of April 30, 2000, net unrealized depreciation on securities of $2,341,636
was composed of gross appreciation of $26,664,261, and gross depreciation of
$29,005,897.
================================================================================
4. 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 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, 2000, was
1.00% of the average annual net assets for each class of shares, annualized for
periods of less than one full year.
--------------------------------------------------------------------------------
Sub-Advisor Fees. 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,
2000, the Manager paid $438,726 to the Sub-Advisor.
21 OPPENHEIMER QUEST SMALL CAP VALUE FUND
<PAGE>
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
--------------------------------------------------------------------------------
================================================================================
4. Fees and Other Transactions with Affiliates Continued
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 $18.00 for
each Fund shareholder account and reimburses OFS for its out-of-pocket expenses.
During the six months ended April 30, 2000, the Fund paid OFS $346,819.
--------------------------------------------------------------------------------
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
Six Months Ended Shares Distributor Distributor1 Distributor1 Distributor1
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
April 30, 2000 $191,466 $50,290 $35,900 $224,461 $23,901
</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
Six Months Ended Retained by Distributor Retained by Distributor Retained by Distributor
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
April 30, 2000 $5,077 $232,635 $4,513
</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.
--------------------------------------------------------------------------------
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 0.20% of
average annual net assets of Class A shares of the Fund (the Board of Trustees
can set this rate up to 0.25%). Effective January 1, 2000, the asset-based
charge rate for Class A shares has been voluntarily reduced from 0.25% to 0.20%
of average annual net assets representing Class A shares. 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, banks 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 six months ended April 30, 2000, payments under the Class A
Plan totaled $326,865, all of which was paid by the Distributor to recipients.
That included $10,194 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.
22 OPPENHEIMER QUEST SMALL CAP VALUE FUND
<PAGE>
--------------------------------------------------------------------------------
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 asset-based sales charges from the Fund under
the plans. If any 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 carryforward of distribution expenses, to be recovered from
asset-based sales charges in subsequent fiscal periods.
Distribution fees paid to the Distributor for the six months ended April 30,
2000, 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 $384,354 $310,561 $2,016,699 2.75%
Class C Plan 96,924 28,587 314,516 1.66
</TABLE>
================================================================================
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 that 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 six months ended April
30, 2000.
================================================================================
6. Subsequent Event
Effective May 19, 2000, the Fund changed its name to Oppenheimer Quest Small Cap
Fund.
23 OPPENHEIMER QUEST SMALL CAP VALUE FUND
<PAGE>
--------------------------------------------------------------------------------
SHAREHOLDER MEETING Unaudited
--------------------------------------------------------------------------------
================================================================================
On March 10, 2000, a shareholder meeting was held to approve a new sub-advisory
agreement between the Manager and the Sub-Advisor as described in the Fund's
proxy statement for that meeting. The following is a report of the votes cast:
Withheld/
For Against Abstain Total
---------------------------------------------------------
7,172,147 76,955 113,617 7,362,719
24 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
O. Leonard Darling, Vice President
Andrew J. Donohue, Secretary
Brian W. Wixted, Treasurer
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
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 Auditors KPMG LLP
================================================================================
Legal Counsel Mayer, Brown & Platt
The financial statements included herein have been
taken from the records of the Fund without examination
of those records by the independent auditors.
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, and are not insured by the FDIC or any other
agency, and involve investment risks, including the
possible loss of the principal amount invested.
(C)Copyright 2000 OppenheimerFunds, Inc. All rights reserved.
25 OPPENHEIMER QUEST SMALL CAP VALUE FUND
<PAGE>
--------------------------------------------------------------------------------
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 transactions1
www.oppenheimerfunds.com
----------------------------------------------------------------------
General Information
Mon-Fri 8am-9pm ET, Sat 10am-4pm ET
1.800.525.7048
----------------------------------------------------------------------
Telephone Transactions
Mon-Fri 8am-9pm ET, Sat 10am-4pm ET
1.800.852.8457
----------------------------------------------------------------------
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----------------------------------------------------------------------
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1.800.843.4461
----------------------------------------------------------------------
OppenheimerFunds Market Hotline
24 hours a day, timely and insightful messages on the economy and
issues that may affect your investments
1.800.835.3104
----------------------------------------------------------------------
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OppenheimerFunds Services
P.O. Box 5270, Denver, CO 80217-5270
----------------------------------------------------------------------
Ticker Symbols Class A: QVSCX Class B: QSCBX Class C: QSCCX
--------------------------------------------------------------------------------
1. At times this website may be inaccessible or its transaction feature may be
unavailable.
[LOGO OF OPPENHEIMER FUNDS]
RS 0251.001.0400 June 29, 2000
