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[GRAPHIC]
Semiannual Report April 30, 2000
Oppenheimer
Quest Balanced Value Fund
[LOGO OF OPPENHEIMER FUNDS]
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REPORT HIGHLIGHTS
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CONTENTS
1 President's Letter
3 An Interview
with Your Fund's
Manager
9 Financial Statements
25 Officers and Trustees
Value stocks lagged growth-oriented stocks during most of the six-month
reporting period, however, value stocks began to positively turn around starting
in late March. The Fund focused its fixed income investments on
inflation-indexed Treasury notes and short-term securities due to a rising
interest-rate environment. We have continued to employ our long-standing value
discipline in which we analyze stocks one company at a time to find those that
we believe are undervalued relative to their true worth.
Cumulative Total
Returns*
For the 6-Month Period
Ended 4/30/00
Class A
Without With
Sales Chg. Sales Chg.
-----------------------------------
-0.81% -6.52%
Class B
Without With
Sales Chg. Sales Chg.
-----------------------------------
-1.10% -5. 89%
Class C
Without With
Sales Chg. Sales Chg.
-----------------------------------
-1.10% -2.05%
*See Notes on page 7 for further details.
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PRESIDENT'S LETTER
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Dear Shareholder,
[PHOTO]
Bridget A. Macaskill
President
Oppenheimer
Quest Balanced
Value Fund
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.
1 OPPENHEIMER QUEST BALANCED 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 BALANCED VALUE FUND
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AN INTERVIEW WITH YOUR FUND'S MANAGER
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[PHOTO]
Portfolio Management
Team (l to r)
Jolene Mirenna
Colin Glinsman
(Portfolio Manager)
How would you characterize Oppenheimer Quest Balanced Value Fund's performance
over the six-month period that ended April 30, 2000?
A. The Fund's performance over the past six months reflected a very challenging
and volatile investment environment for both bonds and value-oriented stocks.
The bond market was adversely affected by rising interest rates, and although
the stock market was dominated during most of the reporting period by a
relatively small number of growth-oriented technology stocks, value stocks began
to positively turn around starting in late March.
Why has the stock market seemingly become so volatile?
While the stock market is often volatile when viewed over the short term, much
of the recent volatility has come from technology stocks. In our view, the
heightened volatility of technology stocks is a result of changing investor
sentiment. Investors had become so captivated with these relatively young,
fast-growing companies that, at times, they seemed to be willing to pay
exorbitant prices for them. As a result, by mid-March, these stocks had exceeded
all traditional standards of valuation, such as the ratio of stock price to
earnings, sales or book value. When statistical evidence was subsequently
released that inflationary pressures might be re-emerging, technology investors
appear to have realized that valuations really do matter, and some measures of
technology-stock performance dropped 10% in a single day.
3 OPPENHEIMER QUEST BALANCED VALUE FUND
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AN INTERVIEW WITH YOUR FUND'S MANAGER
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"Although most of the past six months were difficult for value stocks, we
believe that the portfolio is well positioned to benefit when value returns to
favor among investors."
By the same token, the lackluster performance provided by many "old
economy" stocks during most of the reporting period was primarily the result of
investor indifference. However, these stocks began to advance when the
technology volatility increased, and investors once again realized that little
has changed regarding the business fundamentals of companies in traditional
industries.
What economic forces most affected the Fund's investments?
Rising interest rates were responsible for both declining bond prices and the
underperformance of value stocks over the past six months.
In the bond market, prices of corporate bonds and mortgage-backed
securities eroded as inflation fears intensified and interest rates rose. In
contrast, because of supply-and-demand factors, prices of long-term U. S.
Treasury bonds have risen.
Higher interest rates also contributed to the relative under-performance of
value stocks over the past six months. Because higher interest rates tend to
increase borrowing costs for traditional companies and discourage consumer
borrowing for big-ticket purchases, investors were concerned that higher
interest rates might reduce corporate earnings.
Although the Federal Reserve Board probably is not finished raising
interest rates, we believe that the stock market may have already incorporated
the bulk of further rate hikes into many securities prices. Indeed, the value
rally during the second half of April could be a signal that most--but not
all--of the adverse effects of rising interest rates may be behind us.
4 OPPENHEIMER QUEST BALANCED VALUE FUND
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Average Annual
Total Returns
For the Periods Ended 3/31/00(1)
Class A Since
1-Year 5-Year Inception
---------------------------------------
-0.66% 20.02% 15.84%
Class B Since
1-Year 5-Year Inception
---------------------------------------
-0.22% 20.53% 17.70%
Class C Since
1-Year 5-Year Inception
---------------------------------------
3.78% 20.66% 17.56%
Because of ongoing market volatility, the Fund's returns may fluctuate and may
be less than the results shown.
How was the Fund managed in this market environment?
We have maintained a fairly conservative asset allocation during the reporting
period, apportioning approximately 57% of Fund assets to stocks, 30% to bonds
and 10% to cash. The cash position is relatively high, and reflects uncertain
conditions in the stock market.
In the stock market, we have also continued to employ our long-standing
value discipline in which we analyze stocks one company at a time to find those
that we believe are undervalued relative to their true worth. Although we have
found a few fundamentally strong businesses that fit our value criteria, we are
still concerned with the short-term volatility that is associated with stocks.
When value stocks were out of favor among investors, we found virtually
unprecedented opportunities to buy shares of good businesses at attractive
prices. While it is too soon to determine whether the recent rally of value
stocks will persist, we believe that the Fund and its shareholders will benefit
as value returns to favor among investors.
In the bond market, we have focused primarily on short-term securities and
longer term inflation-indexed U. S. Treasury securities, known as TIPS. TIPS are
designed to adjust for inflation, making them good performers when inflation
fears are increasing.
What stocks contributed most to the Fund's performance?
We received good performance from a number of individual holdings. For example,
a well-known financial services giant has benefited from its international
presence and their willingness to embrace the new technologies that are expected
to help financial companies grow their businesses. We also enjoyed good returns
from our telecommunications and media holdings, however, we have trimmed these
holdings as they met our price targets.
1. See Notes on page 7 for further details.
5 OPPENHEIMER QUEST BALANCED VALUE FUND
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AN INTERVIEW WITH YOUR FUND'S MANAGER
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Portfolio Allocation(2)
[GRAPHIC]
. Stocks 56.9%
. Bonds 33.5
. Cash
Equivalents 9.6
What is your outlook for the future?
While we have been frustrated by the extent to which value stocks had been out
of favor among investors, we were encouraged when many investors shifted their
assets from technology to more traditional market sectors in March and April. In
our view, many "old economy" companies continue to sell at compellingly low
valuations. In fact, some value companies' management have already announced
their intention to take advantage of their low stock prices by buying back
shares or taking their companies private, which should help rekindle investor
interest in their stocks. Having the patience and discipline to stick with
out-of-favor stocks until they are recognized is an important part of what makes
OppenheimerFunds The Right Way to Invest.
Top Ten Common Stock Holdings(3)
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FleetBoston Financial Corp. 13.0%
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Freddie Mac 11.6
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Kroger Co. 11.6
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CVS Corp. 8.6
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Bell Atlantic Corp. 8.4
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American Home Products Corp. 7.5
--------------------------------------------------------------------------------
Pharmacia Corp. 7.5
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Computer Associates International, Inc. 5.5
--------------------------------------------------------------------------------
Canadian Pacific Ltd. 3.8
--------------------------------------------------------------------------------
McDonald's Corp. 3.0
Top Five Common Stock Industries(3)
--------------------------------------------------------------------------------
Food & Drug Retailers 20.1%
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Diversified Financial 17.2
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Banks 15.4
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Healthcare/Drugs 15.0
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Telephone Utilities 8.4
2. Portfolio is subject to change. Percentages are as of April 30, 2000, and
are based on total market value of investments.
3. Portfolio is subject to change. Percentages are as of April 30, 2000, and
are based on total market value of common stock.
6 OPPENHEIMER QUEST BALANCED 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.
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 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 11/1/91. Unless otherwise noted,
Class A returns include the current maximum initial sales charge of 5.75%. 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 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.
7 OPPENHEIMER QUEST BALANCED VALUE FUND
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Financials
8 OPPENHEIMER QUEST BALANCED VALUE FUND
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STATEMENT OF INVESTMENTS April 30, 2000 / Unaudited
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Market Value
Shares See Note 1
================================================================================
Common Stocks--56.2%
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Basic Materials--0.6%
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Metals--0.6%
Freeport-McMoRan Copper & Gold, Inc., Cl. B1 1,300,000 $ 12,512,500
--------------------------------------------------------------------------------
Communication Services--4.7%
--------------------------------------------------------------------------------
Telephone Utilities--4.7%
Bell Atlantic Corp. 1,800,000 106,650,000
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Consumer Staples--13.0%
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Entertainment--1.7%
McDonald's Corp. 1,000,000 38,125,000
--------------------------------------------------------------------------------
Food & Drug Retailers--11.3%
CVS Corp. 2,500,000 108,750,000
--------------------------------------------------------------------------------
Kroger Co.1 7,900,000 146,643,750
------------
255,393,750
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Energy--1.5%
--------------------------------------------------------------------------------
Oil: Domestic--1.5%
Chevron Corp. 400,000 34,050,000
--------------------------------------------------------------------------------
Financial--18.7%
--------------------------------------------------------------------------------
Banks--8.7%
FleetBoston Financial Corp. 4,650,000 164,784,375
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Wells Fargo Co. 750,000 30,796,875
------------
195,581,250
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Diversified Financial--9.6%
Freddie Mac 3,200,000 147,000,000
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Household International, Inc. 900,000 37,575,000
--------------------------------------------------------------------------------
John Hancock Financial Services,Inc.1 1,800,000 32,850,000
------------
217,425,000
--------------------------------------------------------------------------------
Insurance--0.4%
Conseco, Inc. 1,552,400 8,441,175
--------------------------------------------------------------------------------
Healthcare--8.4%
--------------------------------------------------------------------------------
Healthcare/Drugs--8.4%
American Home Products Corp. 1,700,000 95,518,750
--------------------------------------------------------------------------------
Pharmacia Corp. 1,900,000 94,881,250
------------
190,400,000
--------------------------------------------------------------------------------
Technology--5.8%
--------------------------------------------------------------------------------
Computer Software--4.6%
Computer Associates International, Inc. 1,250,000 69,765,625
--------------------------------------------------------------------------------
Compuware Corp.1 818,600 10,283,662
--------------------------------------------------------------------------------
Sabre Holdings Corp. 650,386 22,722,861
------------
102,772,148
9 OPPENHEIMER QUEST BALANCED 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>
Electronics--1.2%
Solectron Corp.1 600,000 $ 28,087,500
----------------------------------------------------------------------------------------------------------------
Transportation--3.5%
----------------------------------------------------------------------------------------------------------------
Air Transportation--1.4%
AMR Corp.1 900,000 30,656,250
----------------------------------------------------------------------------------------------------------------
Railroads & Truckers--2.1%
Canadian Pacific Ltd. 2,000,000 47,625,000
---------------
Total Common Stocks (Cost $1,234,254,228) 1,267,719,573
================================================================================================================
Preferred Stocks--0.3%
Freeport-McMoRan Copper & Gold,Inc.,7% Depositary shares
each representing 0.05 Shares of Step-Up Cum. Cv.,Non-Vtg.
(Cost $8,173,336) 506,400 6,646,500
Principal
Amount
================================================================================================================
U.S. Government Obligations--17.0%
Tennessee Valley Authority Inflationary Bonds,3.375%,1/15/07/2/ $ 56,734,910 52,777,083
----------------------------------------------------------------------------------------------------------------
U.S. Treasury Inflationary Index Nts.:
3.875%,1/15/09/2/ 176,839,650 175,292,303
3.875%,4/15/29/2/ 154,750,500 155,185,813
---------------
Total U. S. Government Obligations (Cost $371,481,850) 383,255,199
================================================================================================================
Non-Convertible Corporate Bonds and Notes--12.7%
----------------------------------------------------------------------------------------------------------------
Basic Materials--0.2%
----------------------------------------------------------------------------------------------------------------
Chemicals--0.2%
IMC Global,Inc., 7.625% Bonds, 11/1/05 5,500,000 5,356,411
----------------------------------------------------------------------------------------------------------------
Capital Goods--2.4%
----------------------------------------------------------------------------------------------------------------
Industrial Services--0.6%
Allied Waste North America,Inc.,10% Sr. Unsec. Sub. Nts.,
Series B, 8/1/09 18,500,000 12,626,250
----------------------------------------------------------------------------------------------------------------
American Standard Cos., Inc., 7.375% Sr. Nts., 2/1/08 2,000,000 1,845,000
---------------
14,471,250
----------------------------------------------------------------------------------------------------------------
Manufacturing--1.8%
Federal-Mogul Corp., 7.375% Nts., 1/15/06 10,500,000 8,414,133
----------------------------------------------------------------------------------------------------------------
Textron,Inc.,6.75% Unsec. Nts., 9/15/02 32,400,000 31,730,875
---------------
40,145,008
----------------------------------------------------------------------------------------------------------------
Consumer Cyclicals--0.1%
----------------------------------------------------------------------------------------------------------------
Leisure & Entertainment--0.1%
HMH Properties,Inc., 7.875% Sr. Nts., Series A, 8/1/05 2,750,000 2,488,750
</TABLE>
10 OPPENHEIMER QUEST BALANCED VALUE FUND
<PAGE>
<TABLE>
<CAPTION>
Principal Market Value
Amount See Note 1
----------------------------------------------------------------------------------------------------------------
Consumer Staples--2.9%
----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Broadcasting--0.9%
USA Networks, Inc., 6.75% Sr. Unsec. Nts., 11/15/05 $ 21,150,000 $ 19,717,849
----------------------------------------------------------------------------------------------------------------
Food & Drug Retailers--1.8%
Safeway,Inc.:
7% Nts., 9/15/02 18,500,000 18,194,768
7.25% Nts., 9/15/04 23,500,000 22,893,254
---------------
41,088,022
----------------------------------------------------------------------------------------------------------------
Household Goods--0.2%
Playtex Family Products Corp., 9% Sr. Sub. Nts., 12/15/03 5,500,000 5,390,000
----------------------------------------------------------------------------------------------------------------
Financial--3.2%
----------------------------------------------------------------------------------------------------------------
Diversified Financial--1.9%
Conseco Financing Trust II, 8.70% Unsec. Capital Securities, 11/15/26 51,155,000 16,625,375
----------------------------------------------------------------------------------------------------------------
Conseco Financing Trust III, 8.796% Bonds, 4/1/27 27,890,000 9,064,250
----------------------------------------------------------------------------------------------------------------
Duke Capital Corp., 7.50% Bonds, 10/1/09 11,500,000 11,145,110
----------------------------------------------------------------------------------------------------------------
Textron Financial Corp., 7.125% Nts., 12/9/04 5,800,000 5,677,185
---------------
42,511,920
---------------------------------------------------------------------------------------------------------------
Insurance--1.3%
AFLAC, Inc., 6.50% Sr. Unsec. Nts., 4/15/09 26,900,000 23,916,898
---------------------------------------------------------------------------------------------------------------
Conseco, Inc., 6.80% Unsec. Nts., 6/15/05 8,000,000 4,680,000
---------------
28,596,898
----------------------------------------------------------------------------------------------------------------
Healthcare--2.2%
----------------------------------------------------------------------------------------------------------------
Healthcare/Supplies & Services--2.2%
PharMerica, Inc., 8.375% Sr. Sub. Nts., 4/1/08/3/ 6,000,000 3,330,000
----------------------------------------------------------------------------------------------------------------
Tenet Healthcare Corp.:
7.625% Sr. Unsec. Nts., Series B, 6/1/08 5,350,000 4,908,625
8% Sr. Nts., 1/15/05 39,150,000 37,681,875
8.625% Sr. Unsec. Nts., 12/1/03 2,500,000 2,432,620
---------------
48,353,120
----------------------------------------------------------------------------------------------------------------
Technology--0.5%
----------------------------------------------------------------------------------------------------------------
Computer Software--0.5%
Electronic Data Systems Corp., 6.85% Nts., 10/15/04 11,800,000 11,521,662
----------------------------------------------------------------------------------------------------------------
Transportation--1.2%
----------------------------------------------------------------------------------------------------------------
Air Transportation--1.2%
Delta Air Lines,Inc., 7.70% Nts., 12/15/05/4/ 27,800,000 26,453,868
---------------
Total Non-Convertible Corporate Bonds and Notes (Cost $356,635,047) 286,094,758
</TABLE>
11 OPPENHEIMER QUEST BALANCED VALUE FUND
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STATEMENT OF INVESTMENTS Unaudited / Continued
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Market Value
Amount See Note 1
==================================================================================================
<S> <C> <C>
Convertible Corporate Bonds and Notes--0.2%
Hyperion Solutions Corp., 4.50% Cv. Unsec. Debs., 3/15/05
(Cost $3,940,992) $ 4,000,000 $ 3,360,000
==================================================================================================
Short-Term Notes--13.1%
American Express Credit Corp., 6.02%, 6/5/00 70,552,000 70,138,881
--------------------------------------------------------------------------------------------------
Federal Home Loan Bank, 5.88%, 5/1/00 1,925,000 1,925,000
--------------------------------------------------------------------------------------------------
Federal National Mortgage Assn.:
5.86%, 5/18/00 43,000,000 42,881,009
5.88%, 5/16/00 10,000,000 9,975,417
5.95%, 6/6/00 24,762,000 24,614,666
--------------------------------------------------------------------------------------------------
Ford Motor Credit Co., 6%, 5/8/00 50,000,000 49,941,667
--------------------------------------------------------------------------------------------------
General Electric Capital Services, 6.04%, 5/5/00 23,725,000 23,709,210
--------------------------------------------------------------------------------------------------
General Electric Co., 5.99%, 5/1/00 31,785,000 31,785,000
--------------------------------------------------------------------------------------------------
General Motors Acceptance Corp., 6%, 5/1/00 40,352,000 40,352,000
Total Short-Term Notes (Cost $295,322,850) 295,322,850
--------------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $2,269,808,303) 99.5% 2,242,398,880
--------------------------------------------------------------------------------------------------
Other Assets Net of Liabilities 0.5 11,601,723
-------------------------------
Net Assets 100.0% $2,254,000,603
===============================
</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. Identifies issues considered to be illiquid--See Note 5 of Notes to Financial
Statements.
4. Represents a security 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 $26,453,868 or 1.17% of the Fund's net
assets as of April 30, 2000.
See accompanying Notes to Financial Statements.
12 OPPENHEIMER QUEST BALANCED VALUE FUND
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES Unaudited
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
April 30, 2000
===================================================================================================
<S> <C>
Assets
Investments, at value (cost $2,269,808,303)--see accompanying statement $2,242,398,880
---------------------------------------------------------------------------------------------------
Receivables and other assets:
Interest and dividends 11,734,425
Shares of beneficial interest sold 10,478,098
Other 149,145
--------------
Total assets 2,264,760,548
===================================================================================================
Liabilities
Bank overdraft 2,556,058
---------------------------------------------------------------------------------------------------
Payables and other liabilities:
Shares of beneficial interest redeemed 7,010,598
Distribution and service plan fees 466,412
Transfer and shareholder servicing agent fees 261,186
Trustees' compensation 144,947
Other 320,744
--------------
Total liabilities 10,759,945
===================================================================================================
Net Assets $2,254,000,603
==============
===================================================================================================
Composition of Net Assets
Par value of shares of beneficial interest $ 1,439,845
---------------------------------------------------------------------------------------------------
Additional paid-in capital 2,256,603,984
---------------------------------------------------------------------------------------------------
Undistributed net investment income 5,294,617
---------------------------------------------------------------------------------------------------
Accumulated net realized gain on investment transactions 18,071,580
---------------------------------------------------------------------------------------------------
Net unrealized depreciation on investments (27,409,423)
--------------
Net Assets $2,254,000,603
==============
===================================================================================================
Net Asset Value Per Share
Class A Shares:
Net asset value and redempton price per share (based on net assets of
$1,044,872,342 and 66,456,492 shares of beneficial interest outstanding) $15. 72
Maximum offering price per share (net asset value plus sales charge of
5.75% of offering price) $16.68
---------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $871,162,365
and 55,850,103 shares of beneficial interest outstanding) $15. 60
---------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $337,965,896
and 21,677,950 shares of beneficial interest outstanding) $15. 59
</TABLE>
See accompanying Notes to Financial Statements.
13 OPPENHEIMER QUEST BALANCED VALUE FUND
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF OPERATIONS Unaudited
--------------------------------------------------------------------------------
For the Six Months Ended April 30, 2000
================================================================================
Investment Income
Interest $ 32,399,458
--------------------------------------------------------------------------------
Dividends (net of foreign withholding taxes of $47,199) 8,324,722
-------------
Total income 40,724,180
================================================================================
Expenses
Management fees 9,360,214
--------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 2,011,539
Class B 4,294,071
Class C 1,689,115
--------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees 1,537,302
--------------------------------------------------------------------------------
Trustees' compensation 87,494
--------------------------------------------------------------------------------
Custodian fees and expenses 35,676
--------------------------------------------------------------------------------
Other 777,435
-------------
Total expenses 19,792,846
Less expenses paid indirectly (6,568)
-------------
Net expenses 19,786,278
================================================================================
Net Investment Income 20,937,902
================================================================================
Realized and Unrealized Gain (Loss)
Net realized gain on investments 18,058,732
--------------------------------------------------------------------------------
Net change in unrealized appreciation or
depreciation on investments (65,800,436)
-------------
Net realized and unrealized loss (47,741,704)
================================================================================
Net Decrease in Net Assets Resulting from Operations $(26,803,802)
=============
See accompanying Notes to Financial Statements.
14 OPPENHEIMER QUEST BALANCED VALUE FUND
<PAGE>
--------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended Year
April 30, Ended
2000 October 31,
(Unaudited) 1999
===============================================================================================================
<S> <C> <C>
Operations
Net investment income $ 20,937,902 $ 14,207,435
---------------------------------------------------------------------------------------------------------------
Net realized gain 18,058,732 50,925,358
---------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation (65,800,436) 25,800,019
----------------------------------
Net increase (decrease) in net assets resulting from operations (26,803,802) 90,932,812
===============================================================================================================
Dividends and/or Distributions to Shareholders
Dividends from net investment income:
Class A (11,044,344) (6,078,115)
Class B (6,992,001) (3,048,066)
Class C (2,834,847) (1,204,827)
---------------------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (22,767,577) (19,068,191)
Class B (19,819,451) (8,965,339)
Class C (7,665,787) (3,441,385)
===============================================================================================================
Beneficial Interest Transactions
Net increase in net assets resulting from beneficial interest transactions:
Class A 189,420,918 739,204,026
Class B 108,598,774 722,633,645
Class C 39,834,128 285,571,885
===============================================================================================================
Net Assets
Total increase 239,926,011 1,796,536,445
---------------------------------------------------------------------------------------------------------------
Beginning of period 2,014,074,592 217,538,147
----------------------------------
End of period (including undistributed net investment
income of $5,294,617 and $5,227,907,respectively) $ 2,254,000,603 $ 2,014,074,592
==================================
</TABLE>
See accompanying Notes to Financial Statements.
15 OPPENHEIMER QUEST BALANCED VALUE FUND
<PAGE>
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Year
Ended Ended
Class A April 30,2000 Oct. 31,
(Unaudited) 1999 1998 1997 1996 1 1995
==============================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Data
Net asset value,beginning of period $ 16.41 $ 15.50 $ 13.99 $ 12.48 $ 10.92 $ 10.09
------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .17 .21 .26 .20 .23 .27 2
Net realized and unrealized gain (loss) (.30) 2.88 3.24 2.65 2.05 1.27
---------------------------------------------------------------------------------
Total income (loss) from
investment operations (.13) 3.09 3.50 2.85 2.28 1.54
------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.18) (.26) (.20) (.19) (.22) (.29)
Distributions from net realized gain (.38) (1.92) (1.79) (1.15) (.50) (.42)
Total dividends and/or distributions
to shareholders (.56) (2.18) (1.99) (1.34) (.72) (.71)
------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 15.72 $ 16.41 $ 15.50 $ 13.99 $ 12.48 $ 10.92
=================================================================================
==============================================================================================================================
Total Return, at Net Asset Value 3 (0.81)% 21.48% 27.91% 25.18% 21.84% 16.35%
==============================================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in thousands) $ 1,044,872 $ 899,084 $ 135,821 $ 79,751 $ 49,322 $ 37,082
------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 1,011,236 $ 454,409 $ 103,244 $ 61,618 $ 43,428 $ 33,397
------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income 2.23% 1.81% 2.07% 1.68% 2.03% 2.60% 5
Expenses 1.47% 1.51% 1.55% 6 1.58% 6 1.90% 6 1.99% 5,6
------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 7 48% 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 dayof 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, for the year ended October 31, 1995.
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 bythe 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
$1,195,166,532 and $912,454,696, respectively.
See accompanying Notes to Financial Statements.
16 OPPENHEIMER QUEST BALANCED VALUE FUND
<PAGE>
<TABLE>
<CAPTION>
Six Months Year
Ended Ended
April 30, 2000 Oct. 31,
Class B (Unaudited) 1999 1998 1997 1996(1) 1995
==============================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $16.28 $15.40 $13.92 $ 12.42 $ 10.88 $ 10.07
------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .12 .14 .19 .15 .17 .19(2)
Net realized and unrealized gain (loss) (.29) 2.84 3.20 2.62 2.03 1.28
----------------------------------------------------------------------------
Total income (loss) from
investment operations (.17) 2.98 3.39 2.77 2.20 1.47
------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.13) (.18) (.12) (.12) (.16) (.24)
Distributions from net realized gain (.38) (1.92) (1.79) (1.15) (.50) (.42)
----------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.51) (2.10) (1.91) (1.27) (.66) (.66)
------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 15.60 $16.28 $15.40 $13.92 $12.42 $10.88
=============================================================================
==============================================================================================================================
Total Return, at Net Asset Value(3) (1.10)% 20.84% 27.08% 24.55% 21.07% 15.65%
==============================================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in thousands) $ 871,162 $ 801,485 $ 60,807 $ 25,609 $ 13,175 $ 7,623
------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 863,151 $ 355,797 $ 39,165 $ 19,230 $ 10,097 $ 4,856
------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(4)
Net investment income 1.63% 1.21% 1.53 1.09% 1.40% 1.71%(5)
Expenses 2.07% 2.10% 2.15%(6) 2.17%(6) 2.53%(6) 2.59%(5,6)
------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(7) 48% 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 1.73% and 2.57%, respectively, for
Class B, for the year ended October 31, 1995.
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
$1,195,166,532 and $912,454,696, respectively. See accompanying Notes to
Financial Statements.
17 OPPENHEIMER QUEST BALANCED VALUE FUND
<PAGE>
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS Continued
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Year
Ended Ended
April 30, 2000 Oct. 31,
Class C (Unaudited) 1999 1998 1997 1996/1/ 1995
==============================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $ 16.27 $ 15.40 $ 13.92 $ 12.43 $ 10.89 $ 10.07
------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .12 .15 .18 .15 .17 .15 2
Net realized and unrealized gain (loss) (.29) 2.83 3.21 2.62 2.02 1.30
--------------------------------------------------------------------------------
Total income (loss) from
investment operations (.17) 2.98 3.39 2.77 2.19 1.45
------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.13) (.19) (.12) (.13) (.15) (.21)
Distributions from net realized gain (.38) (1.92) (1.79) (1.15) (.50) (.42)
--------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.51) (2.11) (1.91) (1.28) (.65) (.63)
------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 15.59 $ 16.27 $ 15.40 $ 13.92 $ 12.43 $ 10.89
================================================================================
==============================================================================================================================
Total Return, at Net Asset Value3 (1.10)% 20.80% 27.12% 24.51% 20.97% 15.38%
==============================================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in thousands) $ 337,966 $ 313,506 $ 20,910 $ 6,687 $ 2,809 $ 1,828
------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 339,513 $ 139,356 $ 11,598 $ 4,724 $ 2,200 $ 968
Ratios to average net assets:4
Net investment income 1.63% 1.21% 1.60% 1.09% 1.40% 1.39% 5
Expenses 2.07% 2.10% 2.15%(6) 2.17%(6) 2.53%(6) 2.88% 5,6
------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate7 48% 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 dayof 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 voluntarilywaived 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 1.43% and 2.84%, respectively, for
Class C, for the year ended October 31, 1995.
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 bythe 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
$1,195,166,532 and $912,454,696, respectively. See accompanying Notes to
Financial Statements.
18 OPPENHEIMER QUEST BALANCED VALUE FUND
<PAGE>
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS Unaudited
--------------------------------------------------------------------------------
================================================================================
1. Significant Accounting Policies
Oppenheimer Quest Balanced Value Fund (the Fund), a series of Oppenheimer Quest
For Value Funds, is an open-end management investment company registered under
the Investment Company Act of 1940, as amended. The Fund's investment objective
is growth of capital. 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 carry-overs, to shareholders. Therefore, no
federal income or excise tax provision is required.
19 OPPENHEIMER QUEST BALANCED 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 provision of $71,073 was made for the Fund's projected
benefit obligations resulting in an accumulated liability of $144,492 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 BALANCED VALUE FUND
<PAGE>
================================================================================
2. Shares of Beneficial Interest
The Fund has authorized an unlimited number of $. 01 par value shares of
beneficial interest of each class. Transactions in shares of beneficial interest
were as follows:
<TABLE>
<CAPTION>
Six Months Ended April 30, 2000 Year Ended October 31, 1999
Shares Amount Shares Amount
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Sold 32,611,830 $ 513,275,843 52,113,404 $ 837,757,585
Dividends and/or
distributions reinvested 1,901,432 29,955,686 1,593,155 23,977,272
Redeemed (22,845,665) (353,810,611) (7,682,755) (122,530,831)
--------------------------------------------------------------
Net increase 11,667,597 $ 189,420,918 46,023,804 $ 739,204,026
==============================================================
---------------------------------------------------------------------------------------------------------------
Class B
Sold 18,670,664 $ 292,136,969 47,556,516 $ 759,392,906
Dividends and/or
distributions reinvested 1,597,127 25,090,039 754,928 11,312,030
Redeemed (13,659,700) (208,628,234) (3,017,631) (48,071,291)
--------------------------------------------------------------
Net increase 6,608,091 $ 108,598,774 45,293,813 $ 722,633,645
==============================================================
---------------------------------------------------------------------------------------------------------------
Class C
Sold 7,981,277 $ 124,648,704 19,021,846 $ 303,512,681
Dividends and/or
distributions reinvested 623,358 9,787,241 290,560 4,352,373
Redeemed (6,196,514) (94,601,817) (1,400,575) (22,293,169)
--------------------------------------------------------------
Net increase 2,408,121 $ 39,834,128 17,911,831 $ 285,571,885
==============================================================
</TABLE>
================================================================================
3. Unrealized Gains and Losses on Securities
As of April 30, 2000, net unrealized depreciation on securities of $27,409,423
was composed of gross appreciation of $111,886,464, and gross depreciation of
$139,295,887.
================================================================================
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 0.85%
of average annual net assets. The Fund's management fee for the six months ended
April 30, 2000 was 0.85% of 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) a monthly
fee based on the fee schedule set forth in the Prospectus. For the six months
ended April 30, 2000, the Manager paid $2,759,465 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 six months ended April 30, 2000, the Fund paid OFS $1,482,966.
21 OPPENHEIMER QUEST BALANCED VALUE FUND
<PAGE>
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
--------------------------------------------------------------------------------
================================================================================
4. Fees and Other Transactions with Affiliates Continued
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 Distributor(1) Distributor(1) Distributor(1)
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
April 30, 2000 $4,560,982 $886,319 $1,518,352 $8,525,089 $1,063,573
</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 $34,212 $1,581,528 $190,929
</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 0.15% 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, 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 $2,011,539, all of which was paid by the Distributor to recipients.
That included $94,882 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. The Distributor pays
out the portion of the asset-based sales charge equal to 0.10% of average net
assets representing Class A shares.
--------------------------------------------------------------------------------
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.
22 OPPENHEIMER QUEST BALANCED VALUE FUND
<PAGE>
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:
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
--------------------------------------------------------------------------------
Class B Plan $4,294,071 $3,978,234 $28,693,703 3. 29%
Class C Plan 1,689,115 1,301,241 4,416,325 1. 31
================================================================================
5. Illiquid Securities
As of April 30, 2000, investments in securities included issues that are
illiquid. A security may be considered illiquid if it lacks a readily available
market or if its valuation has not changed for a certain period of time. The
Fund intends to invest no more than 10% of its net assets (determined at the
time of purchase and reviewed periodically) in illiquid securities. The
aggregate value of illiquid securities subject to this limitation as of April
30, 2000, was $3,330,000, which represents 0.15% of the Fund's net assets.
================================================================================
6. 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.
23 OPPENHEIMER QUEST BALANCED VALUE FUND
<PAGE>
--------------------------------------------------------------------------------
SHAREHOLDER MEETING Unaudited
--------------------------------------------------------------------------------
================================================================================
On March 10, 2000, a shareholder meeting was held to approve a new subadvisory
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
-------------------------------------------------------------
72,349,207 735,864 1,421,161 74,506,232
24 OPPENHEIMER QUEST BALANCED VALUE FUND
<PAGE>
--------------------------------------------------------------------------------
OPPENHEIMER QUEST BALANCED VALUE FUND
--------------------------------------------------------------------------------
A Series of Oppenheimer Quest For Value Funds
================================================================================
Officers and Trustees Bridget A. Macaskill, Chairman of the Board of Trustees
and President
Paul Y. Clinton, Trustee
Thomas W. Courtney, Trustee
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 Balanced Value Fund. This report must
be preceded or accompanied by a Prospectus of
Oppenheimer Quest Balanced Value Fund. For material
information concerning the Fund, see the Prospectus.
Shares of Oppenheimer funds are not deposits or
obligations of any bank, are not guaranteed by any
bank, and are not insured by the FDIC or any other
agency, and involve investment risks, including the
possible loss of the principal amount invested.
Oppenheimer funds are distributed by OppenheimerFunds
Distributor, Inc. Two World Trade Center, New York,
NY 10048-0203
(c)Copyright 2000 OppenheimerFunds, Inc. All rights
reserved.
25 OPPENHEIMER QUEST BALANCED 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 transactions(1)
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
------------------------------------------------------------
PhoneLink
24-hr automated information and automated transactions
1.800.533.3310
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Telecommunications Device for the Deaf (TDD)
Mon-Fri 9am-6:30pm ET
1. 800. 843. 4461
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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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Transfer and Shareholder Servicing Agent
OppenheimerFunds Services
P.O. Box 5270, Denver, CO 80217-5270
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Ticker Symbols Class A: QVGIX Class B: QGRBX Class C: QGRCX
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