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[GRAPHIC]
Annual Report October 31, 2000
Oppenheimer
Quest Small Cap Fund(SM)
[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 Managers
7 Fund Performance
11 Financial Statements
38 Independent Auditors' Report
39 Federal Income Tax Information
40 Officers and Trustees
Slower U.S. economic growth has shifted investors' attention to companies with a
demonstrated ability to grow their earnings even during economic downturns. The
rising price of oil has created investment opportunities in energy companies,
which represented one of the largest areas of emphasis for the Fund.
---------------------------
Average Annual
Total Returns*
For the 1-Year Period
Ended 10/31/00
Class A
Without With
Sales Chg. Sales Chg.
---------------------------
26.40% 19.13%
Class B
Without With
Sales Chg. Sales Chg.
---------------------------
25.74% 20.74%
Class C
Without With
Sales Chg. Sales Chg.
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25.79% 24.79%
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*See Notes on page 10 for further details.
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PRESIDENT'S LETTER
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[PHOTO]
Bridget A. Macaskill
President
Oppenheimer
Quest Small Cap Fund
Dear Shareholder,
Over the past several decades, our investment teams have learned the importance
of avoiding complacency when it comes to navigating the financial
markets--especially when times are good. Right now, times appear particularly
good. The U.S. economy is in its tenth year of expansion. In the bond market,
U.S. Treasury issues have been performing favorably over the past year. In
addition, despite volatility in the second quarter, the stock market has been
providing attractive returns from a wide spectrum of industry sectors,
capitalization ranges and investment styles.
We have arrived at this juncture after months of monitoring the rapid pace of
global economic growth and its implications for inflation, as well as the
Federal Reserve Board's evolving monetary policy. At this point, economic
indicators suggest a dampening of short-term inflationary pressures. While
recent increases in oil prices are certainly taking their toll, we don't believe
this signals a return to 1970's-style inflation. Accordingly, if the Fed
continues in its diligence, the economy could maintain its healthy rate of
growth.
In the bond market, the achievement of a federal budget surplus has prompted
the Treasury to buy back many of its long-term securities. The resulting supply
shortage boosted these securities' returns, causing an inversion of the yield
curve--an unusual situation in which shorter term Treasuries yield more than
their longer term counterparts. Other bond sectors are offering many
opportunities in the form of attractive valuations.
Perhaps most important is that we have begun to see encouraging signs in the
stock market. Formerly high-flying Internet stocks have generally come down to
earth, and investors have begun to refocus on companies with strong business
fundamentals and justifiable valuations. Investors have also returned to
long-neglected, value-oriented companies.
1 OPPENHEIMER QUEST SMALL CAP FUND
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PRESIDENT'S LETTER
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What else do these various trends tell us? They tell us that the ability to
discriminate between long-term potential and short-lived fads has become more
critical than ever. Trying to generate good long-term performance requires
tracking the best companies through intensive research, combined with
hard-earned experience.
At OppenheimerFunds, our seasoned portfolio management teams fight
complacency by remaining constantly aware of the risks that face the economy and
financial markets. Virtually anything could affect the overall markets--a surge
in inflation, a decline in productivity, deteriorating corporate earnings, or
even the new Administration's proposals regarding tax reform, health-care and
Social Security. However, by remaining vigilant in our quest for fundamentally
sound businesses, we believe we can find good investments that can weather
market volatility.
In this environment, we encourage you to consult your financial advisor and
to stay on track with your long-term financial plan. For our part, we will
continue to monitor the opportunities and risks ever present in the financial
markets. Thank you for your confidence in OppenheimerFunds, The Right Way to
Invest.
Sincerely,
/s/ Bridget A. Macaskill
Bridget A. Macaskill
November 21, 2000
These general market views represent opinions of OppenheimerFunds, Inc. and are
not intended to predict or depict performance of the securities markets or any
particular fund. Specific discussion, as it applies to your Fund, is contained
in the pages that follow. Stocks and bonds have different types of investment
risks; stocks are subject to market volatility and bonds are subject to credit
and interest rate risks.
2 OPPENHEIMER QUEST SMALL CAP FUND
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AN INTERVIEW WITH YOUR FUND'S MANAGERS
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[PHOTO]
Portfolio Management
Team (l to r)
Mark Zavanelli
(Portfolio Manager)
Charles Albers
(Portfolio Manager)
Nikolaos Monoyios
Alex Zhou
Q. How did Oppenheimer Quest Small Cap Fund(SM) perform over the one-year period
that ended October 31, 2000?
A. We are pleased with the Fund's performance. Mark Zavanelli and Charles Albers
assumed responsibility for managing the Fund on April 28, 2000. The team's
disciplined approach to stock selection helped the Fund participate in some of
the best-performing sectors of the stock market. The Fund's strong returns were
driven primarily by its energy and healthcare holdings during the second half of
the reporting period. The Fund's Class A shares generated a 26.40% average
annual total return, without sales charge, for the one-year period ended October
31, 2000, outperforming its benchmark for the same one-year period. The Russell
2000 Index produced a 17.41% return./1/
We have made significant changes to the portfolio since taking the portfolio
management reins. These changes were made because our management approach
encompasses researching a diverse group of stocks. We attempt to identify
industry groups and individual securities that we believe are most likely to
provide attractive returns.
Explain your investment approach.
We employ a disciplined investment process that combines technical and
fundamental analysis. On the technical side, we use sophisticated mathematical
models to evaluate statistics related to hundreds of individual stocks. These
computer programs look at a variety of data to determine which areas of the
small-cap stock market offer the best prospects. The models help identify which
industries and market sectors may contain the most attractive investment
opportunities.
1. The Russell 2000 Index measures the performance of the 2,000 smallest
securities in the Russell 3000 Index with an average market weight of $580
million. The Fund's returns are at 10/31/00 include results for periods of
exceptional market performance that are not typical of historical results. You
should not expect those growth rates to continue.
3 OPPENHEIMER QUEST SMALL CAP FUND
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AN INTERVIEW WITH YOUR FUND'S MANAGERS
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"The Fund's strong returns were driven primarily by its energy and healthcare
holdings during the second half of the reporting period."
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After the computer models have completed their work, our research team
further evaluates each stock. We strive to understand factors such as each
company's quality of management, legal or accounting issues and external
competitive forces. We also evaluate the costs associated with trading each
stock under consideration.
What changes have you made to the Fund's portfolio?
First, we have increased the number of stocks in the portfolio. In addition, we
have reduced our holdings of capital-goods companies, such as industrial firms
and manufacturers. We also modestly reduced our exposure to financial stocks,
and shifted emphasis within the financial sector from banks to asset managers
and insurance companies. That's because we believe the latter have better future
earnings prospects.
We also established a number of new positions in the technology group, with a
focus on telecommunications-equipment manufacturers and software companies, and
avoiding formerly high-flying Internet companies.
How did economic and market influences contribute to the Fund's performance?
The economy appears to have slowed after a time of robust growth, putting
renewed pressure on corporate earnings. In this environment, investors are
placing a premium on companies that have the ability to sustain their earnings
growth.
In addition, higher crude oil prices have recently helped and hurt different
investment areas. Energy companies have benefited from this trend, while
capital-goods companies have generally suffered, as production costs have risen,
and as their customers have less money available for capital investments.
Because our technical and fundamental analyses suggested some months ago that
this might be the case, we were well positioned for this trend after increasing
our exposure to the energy sector and reducing our holdings of capital-goods
companies.
4 OPPENHEIMER QUEST SMALL CAP FUND
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Average Annual
Total Returns
For the Periods Ended 9/30/00/2/
Class A
1-Year 5-Year 10-Year
------------------------------------------
18.80% 9.66% 14.57%
Class B Since
1-Year 5-Year Inception
------------------------------------------
20.37% 10.12% 9.47%
Class C Since
1-Year 5-Year Inception
------------------------------------------
24.42% 10.41% 9.38%
What industry groups contributed most to the Fund's returns?
We've already mentioned energy stocks, which represented the fund's highest
concentration of assets relative to our benchmark the Russell 2000 Index as of
October 31. We received particularly attractive returns from exploration and
production companies, natural-gas producers, smaller drilling companies and,
more recently, refiners.
In the healthcare group, our stock-selection strategy led us to service
providers such as hospitals, laboratories, low-tech medical-device manufacturers
and medical-supply houses. We also received good results from HMOs, which have
been recovering from previous lows by producing better earnings.
On the other hand, we are disappointed that we did not emphasize financial
and utilities stocks more. While both industry groups--and our holdings within
them--provided attractive returns, their impact on the Fund might have been
magnified if we had moved toward greater exposure to these areas.
Where are you currently finding attractive opportunities?
We are finding very attractive values, in our view, in many stocks with strong
earnings growth prospects. Accordingly, we have continued to add to our
healthcare holdings, and we have maintained a slightly greater emphasis on
technology stocks than our benchmark.
However, it is important to understand that we manage the Fund for the long
term, not just according to prevailing economic and market conditions. We remain
optimistic about the small-cap marketplace, where we expect companies with
consistently strong earnings growth to attract more investor attention. Indeed,
we believe that harnessing the investment potential of fast-growing, small
companies is part of what makes OppenheimerFunds The Right Way to Invest.
2. See page 10 for further details.
5 OPPENHEIMER QUEST SMALL CAP FUND
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AN INTERVIEW WITH YOUR FUND'S MANAGERS
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Sector Allocation/3/
[GRAPH]
Technology 24.9%
Healthcare 19.8%
Energy 14.6%
Capital Goods 10.7%
Consumer
Cyclicals 10.3%
Financial 7.7%
Communication
Services 5.5%
Consumer
Staples 3.1%
Basic Materials 1.7%
Utilities 0.9%
Transportation 0.8%
Top Ten Common Stock Holdings/4/
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C&D Technologies, Inc. 1.8%
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St. Mary Land & Exploration Co. 1.5
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RenaissanceRe Holdings Ltd. 1.4
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Dentsply International, Inc. 1.3
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Alliant Techsystems, Inc. 1.0
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Trigon Healthcare, Inc. 1.0
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Tollgrade Communications, Inc. 0.9
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Oakley, Inc. 0.8
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MSC Industrial Direct Co., Inc., Cl. A 0.7
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Oxford Health Plans, Inc. 0.7
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Top Five Common Stock Industries/4/
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Healthcare/Drugs 13.2%
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Computer Software 9.6
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Oil: Domestic 7.6
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Electronics 7.1
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Healthcare/Supplies & Services 6.6
3. Portfolio is subject to change. Percentages are as of October 31, 2000, and
are based on total market value of common stock.
4. Portfolio is subject to change. Percentages are as of October 31, 2000, and
are based on net assets.
6 OPPENHEIMER QUEST SMALL CAP FUND
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FUND PERFORMANCE
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How has the Fund performed? Below is a discussion by OppenheimerFunds, Inc. of
the Fund's performance during its fiscal year ended October 31, 2000, followed
by a graphical comparison of the Fund's performance to an appropriate broad-
based market index.
Management's discussion of performance. During the fiscal year that ended
October 31, 2000, Oppenheimer Quest Small Cap Fund's performance was strongly
influenced by changes in economic and market conditions. The Fund's strong
positive returns were driven primarily by the energy, healthcare and technology
areas, which have benefited from, among other factors, higher oil prices,
improving earnings and rising customer demand, respectively. The Fund also
experienced a change in its management team near the middle of its fiscal year.
The team combines quantitative analysis and experience to help make sound
investment decisions. The Fund's portfolio holdings, allocations and investment
style are subject to change.
Comparing the Fund's performance to the market. The graphs that follow show the
performance of a hypothetical $10,000 investment in each class of shares of the
Fund held until October 31, 2000. In the case of Class A shares, performance is
measured over a 10-year period. In the case of Class B and Class C, performance
is measured from inception of those classes on September 1, 1993. The Fund's
performance reflects the deduction of the maximum initial sales charge on Class
A shares, the applicable contingent deferred sales charge on Class B and Class C
shares, and reinvestments of all dividends and capital gains distributions.
The Fund's performance is compared to that of the Russell 2000 Index. The
Russell 2000 Index measures the performance of the 2,000 smallest securities in
the Russell 3000 Index with an average market weight of $580 million. Index
performance reflects the reinvestment of dividends but does not consider the
effect of capital gains or transaction costs, and none of the data in the graphs
shows the effect of taxes. The Fund's performance reflects the effects of Fund
business and operating expenses. While index comparisons may be useful to
provide a benchmark for the Fund's performance, it must be noted that the Fund's
investments are not limited to the securities in the index.
7 OPPENHEIMER QUEST SMALL CAP FUND
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FUND PERFORMANCE
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Class A Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Quest Russell
Small Cap Fund 2000
(Class A) Index
10/31/90 9,425 10,000
1/31/91 11,065 12,201
4/30/91 12,816 14,480
7/31/91 13,918 14,788
10/31/91 14,609 15,864
1/31/92 16,762 17,666
4/30/92 16,661 16,950
7/31/92 16,248 16,933
10/31/92 16,304 17,370
1/31/93 19,104 20,005
4/30/93 19,441 19,623
7/31/93 19,825 20,904
10/31/93 21,230 23,000
1/31/94 22,226 23,724
4/30/94 21,108 22,524
7/31/94 20,575 21,868
10/31/94 21,238 22,918
1/31/95 20,867 22,299
4/30/95 21,602 24,152
7/31/95 23,204 27,330
10/31/95 23,110 27,124
1/31/96 24,331 28,978
4/30/96 26,280 32,119
7/31/96 24,744 29,218
10/31/96 27,077 31,628
1/31/97 29,608 34,469
4/30/97 29,011 32,136
7/31/97 35,033 38,975
10/31/97 35,937 40,905
1/31/98 35,596 40,698
4/30/98 39,092 45,762
7/31/98 33,424 39,876
10/31/98 30,529 36,061
1/31/99 31,264 40,834
4/30/99 32,521 41,528
7/31/99 34,197 42,831
10/31/99 30,645 41,422
1/31/00 31,229 48,079
4/30/00 33,342 49,177
7/31/00 36,184 48,728
10/31/00 38,735 48,632
Average Annual Total Return of Class A Shares of the Fund at 10/31/00/1/
1-Year 19.13% 5-Year 9.58% 10-Year 14.50%
Class B Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Quest Russell
Small Cap Fund 2000
(Class B Index
9/01/93 10,000 10,000
10/31/93 10,273 10,547
1/31/94 10,744 10,879
4/30/94 10,195 10,329
7/31/94 9,925 10,028
10/31/94 10,233 10,510
1/31/95 10,035 10,225
4/30/95 10,371 11,075
7/31/95 11,128 12,533
10/31/95 11,070 12,438
1/31/96 11,633 13,288
4/30/96 12,553 14,729
7/31/96 11,805 13,398
10/31/96 12,904 14,503
1/31/97 14,089 15,806
4/30/97 13,785 14,737
7/31/97 16,626 17,872
10/31/97 17,040 18,758
1/31/98 16,851 18,663
4/30/98 18,484 20,985
7/31/98 15,781 18,286
10/31/98 14,404 16,536
1/31/99 14,726 18,725
4/30/99 15,300 19,043
7/31/99 16,069 19,641
10/31/99 14,394 18,995
1/31/00 14,668 22,047
4/30/00 15,661 22,551
7/31/00 16,996 22,345
10/31/00 18,194 22,301
Average Annual Total Return of Class B Shares of the Fund at 10/31/00/1/
1-Year 20.74% 5-Year 10.04% Life 8.71%
1. See page 10 for further details.
8 OPPENHEIMER QUEST SMALL CAP FUND
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Class C Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
[GRAPH]
Oppenheimer Quest Russell
Small Cap Fund 2000
(Class C) Index
9/01/93 10,000 10,000
10/31/93 10,279 10,547
1/31/94 10,744 10,879
4/30/94 10,195 10,329
7/31/94 9,925 10,028
10/31/94 10,227 10,510
1/31/95 10,035 10,225
4/30/95 10,371 11,075
7/31/95 11,128 12,533
10/31/95 11,070 12,438
1/31/96 11,630 13,288
4/30/96 12,551 14,729
7/31/96 11,801 13,398
10/31/96 12,902 14,503
1/31/97 14,089 15,806
4/30/97 13,784 14,737
7/31/97 16,631 17,872
10/31/97 17,037 18,758
1/31/98 16,855 18,663
4/30/98 18,492 20,985
7/31/98 15,784 18,286
10/31/98 14,405 16,536
1/31/99 14,736 18,725
4/30/99 15,302 19,043
7/31/99 16,072 19,641
10/31/99 14,382 18,995
1/31/00 14,639 22,047
4/30/00 15,613 22,551
7/31/00 16,922 22,345
10/31/00 18,091 22,301
Average Annual Total Return of Class C Shares of the Fund at 10/31/00/1/
1-Year 24.79% 5-Year 10.32% Life 8.62%
The performance information for the Russell 2000 Index in the graphs begins on
10/31/90 for Class A, and on 8/31/93 for both Class B and Class C.
Past performance is not predictive of future performance. Graphs are not drawn
to the same scale.
9 OPPENHEIMER QUEST SMALL CAP 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. Because of ongoing
market volatility, the Fund's performance has been subject to substantial
short-term fluctuations and current performance may be less than the results
shown. 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 and the ending account values in the graphs include changes in
share price and reinvestment of dividends and capital gains distributions in a
hypothetical investment for the periods shown. 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 a maximum annual 0.25% 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.
10 OPPENHEIMER QUEST SMALL CAP FUND
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STATEMENT OF INVESTMENTS October 31, 2000
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Market Value
Shares See Note 1
================================================================================
Common Stocks--99.9%
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Basic Materials--1.6%
--------------------------------------------------------------------------------
Chemicals--0.6%
Bush Boake Allen, Inc./1/ 11,000 $ 532,125
--------------------------------------------------------------------------------
SCP Pool Corp./1/ 21,000 543,375
--------------------------------------------------------------------------------
Symyx Technologies, Inc./1/ 12,000 566,250
-----------
1,641,750
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Metals--0.7%
--------------------------------------------------------------------------------
CIRCOR International, Inc. 95,000 1,050,937
--------------------------------------------------------------------------------
Lone Star Technologies, Inc./1/ 7,600 305,140
--------------------------------------------------------------------------------
Shaw Group, Inc. (The)/1/ 6,000 489,000
-----------
1,845,077
--------------------------------------------------------------------------------
Paper--0.3%
Pactiv Corp./1/ 87,000 913,500
--------------------------------------------------------------------------------
Capital Goods--10.8%
--------------------------------------------------------------------------------
Aerospace/Defense--1.6%
--------------------------------------------------------------------------------
Alliant Techsystems, Inc./1/ 29,500 2,653,156
--------------------------------------------------------------------------------
Esterline Technologies Corp./1/ 10,000 223,125
--------------------------------------------------------------------------------
Precision Castparts Corp. 12,800 483,200
--------------------------------------------------------------------------------
Teledyne Technologies, Inc./1/ 30,000 751,875
-----------
4,111,356
--------------------------------------------------------------------------------
Electrical Equipment--1.6%
American Technical Ceramics Corp./1/ 11,000 168,300
--------------------------------------------------------------------------------
BEI Technologies, Inc. 21,400 762,375
--------------------------------------------------------------------------------
C-Cube Microsystems, Inc./1/ 36,000 702,000
--------------------------------------------------------------------------------
Littlefuse, Inc./1/ 28,000 812,000
--------------------------------------------------------------------------------
ScanSource, Inc./1/ 4,000 191,000
--------------------------------------------------------------------------------
Technitrol, Inc. 14,000 1,552,250
-----------
4,187,925
--------------------------------------------------------------------------------
Industrial Services--3.6%
Administaff, Inc./1/ 24,000 852,000
--------------------------------------------------------------------------------
Advanced Marketing Services, Inc. 5,400 97,200
--------------------------------------------------------------------------------
Corporate Executive Board Co./1/ 4,000 184,500
--------------------------------------------------------------------------------
Excel Technology, Inc./1/ 13,500 337,500
--------------------------------------------------------------------------------
Forrester Research, Inc./1/ 12,000 492,750
--------------------------------------------------------------------------------
Hall, Kinion & Associates, Inc./1/ 29,000 766,687
--------------------------------------------------------------------------------
Kent Electronics Corp./1/ 9,000 167,625
--------------------------------------------------------------------------------
Manhattan Associates, Inc./1/ 18,000 1,152,281
--------------------------------------------------------------------------------
MSC Industrial Direct Co., Inc., Cl. A/1/ 129,200 1,921,850
11 OPPENHEIMER QUEST SMALL CAP FUND
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STATEMENT OF INVESTMENTS Continued
--------------------------------------------------------------------------------
Market Value
Shares See Note 1
--------------------------------------------------------------------------------
Industrial Services Continued
National Data Corp. 9,000 $ 343,125
--------------------------------------------------------------------------------
National Processing, Inc./1/ 29,000 458,562
--------------------------------------------------------------------------------
Pason Systems, Inc./1/ 40,000 195,116
--------------------------------------------------------------------------------
Planar Systems, Inc./1/ 52,300 889,100
--------------------------------------------------------------------------------
PurchasePro.com, Inc./1/ 14,000 378,000
--------------------------------------------------------------------------------
Teekay Shipping Corp. 22,000 822,250
--------------------------------------------------------------------------------
Valmont Industries, Inc. 13,000 264,875
--------------------------------------------------------------------------------
Zomax, Inc./1/ 11,500 69,719
-----------
9,393,140
--------------------------------------------------------------------------------
Manufacturing--4.0%
Applied Films Corp./1/ 25,000 850,000
--------------------------------------------------------------------------------
Asyst Technologies, Inc./1/ 26,000 390,000
--------------------------------------------------------------------------------
Coherent, Inc./1/ 16,000 557,000
--------------------------------------------------------------------------------
Columbia Sportswear Co./1/ 14,000 598,500
--------------------------------------------------------------------------------
Flowserve Corp. 12,000 241,500
--------------------------------------------------------------------------------
FSI International, Inc./1/ 20,000 186,250
--------------------------------------------------------------------------------
GSI Lumonics, Inc./1/ 52,000 656,500
--------------------------------------------------------------------------------
Maverick Tube Corp./1/ 10,000 155,625
--------------------------------------------------------------------------------
Measurement Specialties, Inc./1/ 30,000 796,875
--------------------------------------------------------------------------------
Mettler-Toledo International, Inc./1/ 3,000 140,062
--------------------------------------------------------------------------------
Millipore Corp. 5,000 262,500
--------------------------------------------------------------------------------
Oakley, Inc./1/ 99,000 2,079,000
--------------------------------------------------------------------------------
Paxar Corp./1/ 37,500 307,031
--------------------------------------------------------------------------------
Photon Dynamics, Inc./1/ 10,000 360,000
--------------------------------------------------------------------------------
Plexus Corp./1/ 5,000 315,312
--------------------------------------------------------------------------------
Rudolph Technologies, Inc./1/ 17,200 670,800
--------------------------------------------------------------------------------
SPS Technologies, Inc./1/ 1,200 61,950
--------------------------------------------------------------------------------
Stewart & Stevenson Services, Inc. 39,000 936,000
--------------------------------------------------------------------------------
Therma-Wave, Inc./1/ 2,000 41,000
--------------------------------------------------------------------------------
Three-Five Systems, Inc./1/ 27,000 931,500
-----------
10,537,405
--------------------------------------------------------------------------------
Communication Services--5.5%
--------------------------------------------------------------------------------
Telecommunications-Long Distance--4.9%
ADTRAN, Inc./1/ 10,000 380,000
--------------------------------------------------------------------------------
APAC Teleservices, Inc./1/ 14,000 75,250
--------------------------------------------------------------------------------
Boston Communications Group, Inc./1/ 37,000 874,125
--------------------------------------------------------------------------------
C&D Technologies, Inc. 78,600 4,647,225
--------------------------------------------------------------------------------
Corvis Corp./1/ 4,800 315,000
--------------------------------------------------------------------------------
Cosine Communications, Inc./1/ 3,000 99,187
--------------------------------------------------------------------------------
Datum, Inc./1/ 31,000 992,000
12 OPPENHEIMER QUEST SMALL CAP FUND
<PAGE>
Market Value
Shares See Note 1
--------------------------------------------------------------------------------
Telecommunications-Long Distance Continued
Lightbridge, Inc./1/ 27,000 $ 288,562
--------------------------------------------------------------------------------
LightPath Technologies, Inc., Cl. A/1/ 18,000 490,500
--------------------------------------------------------------------------------
Natural MicroSystems Corp./1/ 8,000 361,500
--------------------------------------------------------------------------------
Oplink Communications, Inc./1/ 18,600 453,375
--------------------------------------------------------------------------------
Somera Communications, Inc./1/ 18,000 202,500
--------------------------------------------------------------------------------
SymmetriCom, Inc./1/ 93,000 1,185,750
--------------------------------------------------------------------------------
Tollgrade Communications, Inc./1/ 25,200 2,412,900
--------------------------------------------------------------------------------
Westell Technologies, Inc., Cl. A/1/ 16,000 88,000
-----------
12,865,874
--------------------------------------------------------------------------------
Telecommunications-Wireless--0.6%
DMC Stratex Networks, Inc./1/ 27,000 624,375
--------------------------------------------------------------------------------
EMS Technologies, Inc./1/ 27,000 428,625
--------------------------------------------------------------------------------
Western Multiplex Corp./1/ 15,500 218,937
--------------------------------------------------------------------------------
Wireless Facilities, Inc./1/ 8,000 400,000
-----------
1,671,937
--------------------------------------------------------------------------------
Consumer Cyclicals--10.3%
--------------------------------------------------------------------------------
Autos & Housing--0.9%
Direct Focus, Inc./1/ 16,000 712,000
--------------------------------------------------------------------------------
Harman International Industries, Inc. 7,000 336,000
--------------------------------------------------------------------------------
NVR, Inc./1/ 4,000 413,600
--------------------------------------------------------------------------------
Security Capital Group, Inc., Cl. B/1/ 16,000 305,000
--------------------------------------------------------------------------------
Standard Pacific Corp. 12,000 225,000
--------------------------------------------------------------------------------
State Auto Financial Corp. 21,000 283,500
-----------
2,275,100
--------------------------------------------------------------------------------
Consumer Services--1.3%
Advo, Inc./1/ 35,000 1,288,437
--------------------------------------------------------------------------------
AmeriPath, Inc./1/ 1,700 30,494
--------------------------------------------------------------------------------
ASI Solutions, Inc./1/ 40,600 669,900
--------------------------------------------------------------------------------
On Assignment, Inc./1/ 13,000 327,437
--------------------------------------------------------------------------------
Rent-A-Center, Inc./1/ 18,000 525,375
--------------------------------------------------------------------------------
Watson Wyatt & Co. Holdings/1/ 39,100 676,919
-----------
3,518,562
--------------------------------------------------------------------------------
Leisure & Entertainment--1.4%
Anchor Gaming/1/ 9,000 764,437
--------------------------------------------------------------------------------
Crestline Capital Corp./1/ 13,000 271,375
--------------------------------------------------------------------------------
Extended Stay America, Inc./1/ 33,000 406,312
--------------------------------------------------------------------------------
Hotel Reservations Network, Inc., Cl. A/1/ 14,000 490,000
13 OPPENHEIMER QUEST SMALL CAP FUND
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS Continued
--------------------------------------------------------------------------------
Market Value
Shares See Note 1
--------------------------------------------------------------------------------
Leisure & Entertainment Continued
Isle of Capri Casinos, Inc./1/ 80,000 $ 880,000
--------------------------------------------------------------------------------
Pegasus Solutions, Inc./1/ 51,000 870,187
-----------
3,682,311
--------------------------------------------------------------------------------
Media--0.9%
Martha Stewart Living Omnimedia, Inc., Cl. A/1/ 26,600 666,662
--------------------------------------------------------------------------------
Penton Media, Inc. 25,000 764,062
--------------------------------------------------------------------------------
R.H. Donnelley Corp./1/ 19,000 429,875
--------------------------------------------------------------------------------
Scholastic Corp./1/ 6,000 480,000
-----------
2,340,599
--------------------------------------------------------------------------------
Retail: General--0.5%
Neiman Marcus Group, Inc. (The), Cl. A/1/ 8,000 297,000
--------------------------------------------------------------------------------
Stein Mart, Inc./1/ 71,500 1,108,250
-----------
1,405,250
--------------------------------------------------------------------------------
Retail: Specialty--4.9%
1-800 CONTACTS, Inc./1/ 36,000 1,386,000
--------------------------------------------------------------------------------
Chico's Fas, Inc./1/ 8,000 259,000
--------------------------------------------------------------------------------
Children's Place Retail Stores, Inc./1/ 18,000 466,875
--------------------------------------------------------------------------------
Christopher & Banks Corp./1/ 52,500 1,739,062
--------------------------------------------------------------------------------
Coldwater Creek, Inc./1/ 22,000 653,125
--------------------------------------------------------------------------------
Factory 2-U Stores, Inc./1/ 31,000 990,062
--------------------------------------------------------------------------------
Genesco, Inc./1/ 12,000 213,000
--------------------------------------------------------------------------------
Insight Enterprises, Inc./1/ 24,500 796,250
--------------------------------------------------------------------------------
McNaughton Apparel Group, Inc./1/ 28,400 390,500
--------------------------------------------------------------------------------
Michaels Stores, Inc./1/ 10,000 243,125
--------------------------------------------------------------------------------
PC Connection, Inc./1/ 21,000 572,578
--------------------------------------------------------------------------------
Reebok International Ltd./1/ 43,000 927,187
--------------------------------------------------------------------------------
Skechers U.S.A., Inc., Cl. A/1/ 50,000 759,375
--------------------------------------------------------------------------------
Talbots, Inc. (The) 8,000 632,500
--------------------------------------------------------------------------------
Timberland Co., Cl. A/1/ 34,000 1,755,250
--------------------------------------------------------------------------------
Ultimate Electronics, Inc./1/ 16,000 578,000
--------------------------------------------------------------------------------
Venator Group, Inc./1/ 17,000 240,125
--------------------------------------------------------------------------------
Wilsons The Leather Experts, Inc./1/ 8,000 122,500
--------------------------------------------------------------------------------
Yankee Candle, Inc. (The)/1/ 9,000 132,187
-----------
12,856,701
--------------------------------------------------------------------------------
Textile/Apparel & Home Furnishings--0.4%
Gildan Activewear, Inc., Cl. A/1/ 15,000 521,250
--------------------------------------------------------------------------------
K-Swiss, Inc., Cl. A 20,000 550,000
-----------
1,071,250
14 OPPENHEIMER QUEST SMALL CAP FUND
<PAGE>
Market Value
Shares See Note 1
--------------------------------------------------------------------------------
Consumer Staples--3.1%
--------------------------------------------------------------------------------
Education--1.1%
Advantage Learning Systems, Inc./1/ 6,000 $ 178,125
--------------------------------------------------------------------------------
Bright Horizons Family Solutions, Inc./1/ 20,000 500,000
--------------------------------------------------------------------------------
Career Education Corp./1/ 24,000 928,500
--------------------------------------------------------------------------------
Education Management Corp./1/ 6,000 186,000
--------------------------------------------------------------------------------
Learning Tree International, Inc./1/ 23,000 1,040,750
-----------
2,833,375
--------------------------------------------------------------------------------
Entertainment--1.4%
Aztar Corp./1/ 24,000 363,000
--------------------------------------------------------------------------------
CEC Entertainment, Inc./1/ 26,000 828,750
--------------------------------------------------------------------------------
Cheesecake Factory (The)/1/ 22,500 997,031
--------------------------------------------------------------------------------
Rare Hospitality International, Inc./1/ 43,500 1,011,375
--------------------------------------------------------------------------------
Ruby Tuesday, Inc. 40,000 542,500
-----------
3,742,656
--------------------------------------------------------------------------------
Food--0.5%
Green Mountain Coffee, Inc./1/ 29,000 906,250
--------------------------------------------------------------------------------
Morrison Management Specialists, Inc. 8,000 268,000
--------------------------------------------------------------------------------
NBTY, Inc./1/ 29,000 188,500
-----------
1,362,750
--------------------------------------------------------------------------------
Food & Drug Retailers--0.1%
NPS Pharmaceuticals, Inc./1/ 6,000 257,250
--------------------------------------------------------------------------------
Energy--14.6%
--------------------------------------------------------------------------------
Energy Services--2.1%
Active Power, Inc./1/ 2,300 87,687
--------------------------------------------------------------------------------
Cal Dive International, Inc./1/ 18,000 895,500
--------------------------------------------------------------------------------
Clayton Williams Energy, Inc./1/ 8,000 222,500
--------------------------------------------------------------------------------
Cross Timbers Oil Co. 65,500 1,232,219
--------------------------------------------------------------------------------
Grey Wolf, Inc./1/ 165,000 763,125
--------------------------------------------------------------------------------
Marine Drilling Cos., Inc./1/ 50,000 1,193,750
--------------------------------------------------------------------------------
National-Oilwell, Inc./1/ 5,500 160,875
--------------------------------------------------------------------------------
Parker Drilling Co./1/ 5,100 30,600
--------------------------------------------------------------------------------
Rowan Cos., Inc./1/ 25,000 629,687
--------------------------------------------------------------------------------
Superior Energy Services, Inc./1/ 30,000 270,000
-----------
5,485,943
--------------------------------------------------------------------------------
Oil: Domestic--7.6%
Barrett Resources Corp./1/ 10,000 363,750
--------------------------------------------------------------------------------
Berry Petroleum Co., Cl. A 25,000 429,687
--------------------------------------------------------------------------------
Brown (Tom), Inc./1/ 28,500 651,937
--------------------------------------------------------------------------------
Cabot Oil & Gas Corp., Cl. A 49,900 979,287
15 OPPENHEIMER QUEST SMALL CAP FUND
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS Continued
--------------------------------------------------------------------------------
Market Value
Shares See Note 1
--------------------------------------------------------------------------------
Oil: Domestic Continued
Callon Petroleum Co./1/ 65,000 $ 991,250
--------------------------------------------------------------------------------
Chesapeake Energy Corp./1/ 20,000 112,500
--------------------------------------------------------------------------------
Frontier Oil Corp./1/ 145,000 1,150,937
--------------------------------------------------------------------------------
Helmerich & Payne, Inc. 30,000 943,125
--------------------------------------------------------------------------------
HS Resources, Inc./1/ 30,000 933,750
--------------------------------------------------------------------------------
Louis Dreyfus Natural Gas Corp./1/ 10,000 320,625
--------------------------------------------------------------------------------
Mitchell Energy & Development Corp., Cl. A 23,000 1,058,000
--------------------------------------------------------------------------------
Newfield Exploration Co./1/ 10,000 377,500
--------------------------------------------------------------------------------
Ocean Energy, Inc./1/ 15,000 208,125
--------------------------------------------------------------------------------
Patina Oil & Gas Corp. 20,000 351,250
--------------------------------------------------------------------------------
Patterson Energy, Inc./1/ 11,000 309,375
--------------------------------------------------------------------------------
Penn West Petroleum Ltd./1/ 35,000 721,862
--------------------------------------------------------------------------------
Pogo Producing Co. 4,000 100,000
--------------------------------------------------------------------------------
Prize Energy Corp./1/ 32,700 547,725
--------------------------------------------------------------------------------
St. Mary Land & Exploration Co. 169,800 3,979,687
--------------------------------------------------------------------------------
Stone Energy Corp./1/ 5,000 256,000
--------------------------------------------------------------------------------
Sunoco, Inc. 21,000 628,687
--------------------------------------------------------------------------------
Swift Energy Co./1/ 13,000 422,500
--------------------------------------------------------------------------------
Triton Energy Ltd./1/ 20,000 615,000
--------------------------------------------------------------------------------
Ultramar Diamond Shamrock Corp. 15,000 393,750
--------------------------------------------------------------------------------
Unit Corp./1/ 40,000 532,500
--------------------------------------------------------------------------------
Valero Energy Corp. 35,000 1,157,187
--------------------------------------------------------------------------------
Velvet Exploration Ltd./1/ 190,500 536,339
--------------------------------------------------------------------------------
Ventus Energy Ltd./1/ 62,000 300,399
--------------------------------------------------------------------------------
Vintage Petroleum, Inc. 28,000 591,500
-----------
19,964,234
--------------------------------------------------------------------------------
Oil: International--4.9%
Anderson Exploration Ltd./1/ 45,000 824,985
--------------------------------------------------------------------------------
Baytex Energy Ltd./1/ 45,000 338,833
--------------------------------------------------------------------------------
Berkley Petroleum Corp./1/ 120,000 628,560
--------------------------------------------------------------------------------
Canadian 88 Energy Corp. 40,000 89,046
--------------------------------------------------------------------------------
Canadian Hunter Exploration Ltd./1/ 80,000 1,676,161
--------------------------------------------------------------------------------
Compton Petroleum Corp./1/ 300,000 569,633
--------------------------------------------------------------------------------
Encal Energy Ltd./1/ 90,000 545,080
--------------------------------------------------------------------------------
Ensign Resource Service Group, Inc. 40,000 1,073,790
--------------------------------------------------------------------------------
Genesis Exploration Ltd./1/ 198,800 1,425,300
--------------------------------------------------------------------------------
Husky Energy, Inc./1/ 30,813 243,107
--------------------------------------------------------------------------------
OMI Corp./1/ 60,000 416,250
--------------------------------------------------------------------------------
Paramount Resources Ltd. 75,000 773,424
--------------------------------------------------------------------------------
Precision Drilling Corp./1/ 34,000 973,250
16 OPPENHEIMER QUEST SMALL CAP FUND
<PAGE>
Market Value
Shares See Note 1
--------------------------------------------------------------------------------
Oil: International Continued
Rio Alto Exploration Ltd./1/ 48,620 $ 824,499
--------------------------------------------------------------------------------
Tesco Corp./1/ 85,000 704,020
--------------------------------------------------------------------------------
Trican Well Service Ltd./1/ 74,300 559,451
--------------------------------------------------------------------------------
Vermilion Resources Ltd./1/ 200,000 929,745
--------------------------------------------------------------------------------
Westport Resources Corp./1/ 30,000 474,375
-----------
13,069,509
--------------------------------------------------------------------------------
Financial--7.6%
--------------------------------------------------------------------------------
Banks--2.9%
American Financial Holdings, Inc. 52,600 940,225
--------------------------------------------------------------------------------
City National Corp. 9,000 309,375
--------------------------------------------------------------------------------
Commerce Bancshares, Inc. 17,000 610,937
--------------------------------------------------------------------------------
Corus Bankshares, Inc. 13,000 515,937
--------------------------------------------------------------------------------
Cullen/Frost Bankers, Inc. 33,000 1,099,312
--------------------------------------------------------------------------------
Downey Financial Corp. 28,000 1,337,000
--------------------------------------------------------------------------------
GBC Bancorp 24,900 793,687
--------------------------------------------------------------------------------
Greater Bay Bancorp 20,000 651,250
--------------------------------------------------------------------------------
Investors Financial Services Corp. 1,000 71,687
--------------------------------------------------------------------------------
MAF Bankcorp, Inc. 3,000 72,000
--------------------------------------------------------------------------------
Southwest Bancorporation of Texas, Inc./1/ 16,000 584,000
--------------------------------------------------------------------------------
Sterling Bancshares, Inc. 16,000 275,000
--------------------------------------------------------------------------------
UCBH Holdings, Inc. 10,000 363,750
-----------
7,624,160
--------------------------------------------------------------------------------
Diversified Financial--1.3%
Actrade Financial Technologies Ltd./1/ 16,000 374,000
--------------------------------------------------------------------------------
AmeriCredit Corp./1/ 10,000 268,750
--------------------------------------------------------------------------------
CompuCredit Corp./1/ 4,000 123,500
--------------------------------------------------------------------------------
Doral Financial Corp. 22,500 402,187
--------------------------------------------------------------------------------
Gabelli Asset Management, Inc./1/ 12,500 450,000
--------------------------------------------------------------------------------
IBERIABANK Corp. 4,000 79,750
--------------------------------------------------------------------------------
Metris Cos., Inc. 25,500 825,562
--------------------------------------------------------------------------------
Richmond County Financial Corp. 16,000 376,000
--------------------------------------------------------------------------------
Westamerica Bancorp 16,000 575,000
-----------
3,474,749
--------------------------------------------------------------------------------
Insurance--3.4%
Alfa Corp. 9,000 173,250
--------------------------------------------------------------------------------
Gallagher (Arthur J.) & Co. 10,000 631,250
--------------------------------------------------------------------------------
Harleysville Group, Inc. 4,000 92,250
--------------------------------------------------------------------------------
Hilb, Rogal & Hamilton Co. 4,000 158,500
--------------------------------------------------------------------------------
LandAmerica Financial Group, Inc. 16,000 472,000
17 OPPENHEIMER QUEST SMALL CAP FUND
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS Continued
--------------------------------------------------------------------------------
Market Value
Shares See Note 1
--------------------------------------------------------------------------------
Insurance Continued
Leucadia National Corp. 15,000 $ 373,125
--------------------------------------------------------------------------------
MONY Group, Inc. (The) 35,000 1,439,375
--------------------------------------------------------------------------------
Old Republic International Corp. 20,000 520,000
--------------------------------------------------------------------------------
Pre-Paid Legal Services, Inc./1/ 13,700 601,087
--------------------------------------------------------------------------------
RenaissanceRe Holdings Ltd. 49,300 3,577,331
--------------------------------------------------------------------------------
StanCorp Financial Group, Inc. 22,000 896,500
--------------------------------------------------------------------------------
Triad Guaranty, Inc./1/ 6,000 174,375
-----------
9,109,043
--------------------------------------------------------------------------------
Healthcare--19.8%
--------------------------------------------------------------------------------
Healthcare/Drugs--13.2%
3 Dimensional Pharmaceuticals, Inc./1/ 30,400 725,800
--------------------------------------------------------------------------------
Accredo Health, Inc./1/ 19,000 821,750
--------------------------------------------------------------------------------
Advanced Neuromodulation Systems, Inc./1/ 8,000 171,750
--------------------------------------------------------------------------------
Alexion Pharmaceuticals, Inc./1/ 5,000 516,875
--------------------------------------------------------------------------------
Alkermes, Inc./1/ 6,000 222,375
--------------------------------------------------------------------------------
Alliance Pharmaceutical Corp./1/ 20,000 282,500
--------------------------------------------------------------------------------
Alpharma, Inc., Cl. A 9,000 349,312
--------------------------------------------------------------------------------
American Medical Systems Holdings, Inc./1/ 23,400 412,425
--------------------------------------------------------------------------------
Andrx Group/1/ 9,000 648,000
--------------------------------------------------------------------------------
Arena Pharmaceuticals, Inc./1/ 8,000 279,500
--------------------------------------------------------------------------------
AVANT Immunotherapeutics, Inc./1/ 20,000 168,750
--------------------------------------------------------------------------------
Barr Laboratories, Inc./1/ 8,000 505,000
--------------------------------------------------------------------------------
Biomira, Inc./1/ 20,000 180,000
--------------------------------------------------------------------------------
Caremark Rx, Inc./1/ 40,000 500,000
--------------------------------------------------------------------------------
Cell Genesys, Inc./1/ 8,000 184,500
--------------------------------------------------------------------------------
Cell Therapeutics, Inc./1/ 7,000 468,234
--------------------------------------------------------------------------------
CIMA Labs, Inc./1/ 5,000 275,000
--------------------------------------------------------------------------------
Corixa Corp./1/ 10,000 445,000
--------------------------------------------------------------------------------
Corvas International, Inc./1/ 2,000 42,500
--------------------------------------------------------------------------------
Coventry Health Care, Inc./1/ 34,500 629,625
--------------------------------------------------------------------------------
CryoLife, Inc./1/ 10,000 398,125
--------------------------------------------------------------------------------
Cubist Pharmaceuticals, Inc./1/ 18,000 773,437
--------------------------------------------------------------------------------
CV Therapeutics, Inc./1/ 6,000 472,500
--------------------------------------------------------------------------------
Dentsply International, Inc. 99,600 3,454,875
--------------------------------------------------------------------------------
Diagnostic Products Corp. 16,300 743,687
--------------------------------------------------------------------------------
Edwards Lifesciences Corp./1/ 33,000 443,438
--------------------------------------------------------------------------------
Exelixis, Inc./1/ 12,000 264,750
--------------------------------------------------------------------------------
Gemini Genomics plc, ADR/1/ 4,000 45,500
--------------------------------------------------------------------------------
Genzyme Transgenics Corp./1/ 8,000 171,500
--------------------------------------------------------------------------------
Guilford Pharmaceuticals, Inc./1/ 19,500 481,406
18 OPPENHEIMER QUEST SMALL CAP FUND
<PAGE>
Market Value
Shares See Note 1
--------------------------------------------------------------------------------
Healthcare/Drugs Continued
HCA-Healthcare Corp. (The) 1,200 $ 47,925
--------------------------------------------------------------------------------
I-STAT Corp./1/ 20,000 392,500
--------------------------------------------------------------------------------
ICOS Corp./1/ 4,000 205,500
--------------------------------------------------------------------------------
ImmunoGen, Inc./1/ 16,000 550,000
--------------------------------------------------------------------------------
Inhale Therapeutic Systems, Inc./1/ 8,000 398,000
--------------------------------------------------------------------------------
InKine Pharmaceutical Co., Inc./1/ 27,000 243,000
--------------------------------------------------------------------------------
Inspire Pharmaceuticals, Inc./1/ 12,900 253,163
--------------------------------------------------------------------------------
Intermune Pharmaceuticals, Inc./1/ 4,000 200,000
--------------------------------------------------------------------------------
Inverness Medical Technology, Inc./1/ 25,000 687,500
--------------------------------------------------------------------------------
Large Scale Biology Corp./1/ 9,400 174,488
--------------------------------------------------------------------------------
LifePoint Hospitals, Inc./1/ 40,000 1,550,000
--------------------------------------------------------------------------------
Matrix Pharmaceutical, Inc./1/ 16,000 230,000
--------------------------------------------------------------------------------
MGI Pharma, Inc./1/ 9,000 252,000
--------------------------------------------------------------------------------
Myriad Genetics, Inc./1/ 4,000 480,000
--------------------------------------------------------------------------------
Neose Technologies, Inc./1/ 10,000 361,875
--------------------------------------------------------------------------------
Neurogen Corp./1/ 4,000 125,750
--------------------------------------------------------------------------------
Noven Pharmaceuticals, Inc./1/ 20,000 891,250
--------------------------------------------------------------------------------
Nuerocrine Biosciences, Inc./1/ 10,000 387,500
--------------------------------------------------------------------------------
Orchid Biosciences, Inc./1/ 26,000 531,375
--------------------------------------------------------------------------------
Organogenesis, Inc./1/ 20,000 250,800
--------------------------------------------------------------------------------
Pharmacopeia, Inc./1/ 16,000 292,000
--------------------------------------------------------------------------------
PharmaNetics, Inc./1/ 16,000 260,000
--------------------------------------------------------------------------------
Protein Design Labs, Inc./1/ 12,000 1,620,938
--------------------------------------------------------------------------------
Radiance Medical Systems, Inc./1/ 2,400 20,700
--------------------------------------------------------------------------------
Regeneration Technologies, Inc./1/ 14,000 177,625
--------------------------------------------------------------------------------
Regeneron Pharmaceuticals, Inc./1/ 6,000 160,500
--------------------------------------------------------------------------------
RehabCare Group, Inc./1/ 34,000 1,468,375
--------------------------------------------------------------------------------
Respironics, Inc./1/ 44,000 863,500
--------------------------------------------------------------------------------
Rosetta Inpharmatics, Inc./1/ 5,600 124,250
--------------------------------------------------------------------------------
Sangamo BioSciences, Inc./1/ 18,800 489,975
--------------------------------------------------------------------------------
Syncor International Corp./1/ 16,000 411,000
--------------------------------------------------------------------------------
Telik, Inc./1/ 45,900 324,169
--------------------------------------------------------------------------------
Thoratec Laboratories Corp./1/ 43,000 524,063
--------------------------------------------------------------------------------
Titan Pharmaceuticals, Inc./1/ 4,000 168,320
--------------------------------------------------------------------------------
Trigon Healthcare, Inc./1/ 36,700 2,630,931
--------------------------------------------------------------------------------
Trimeris, Inc./1/ 4,000 283,000
--------------------------------------------------------------------------------
Tularik, Inc./1/ 16,000 508,000
--------------------------------------------------------------------------------
Ventiv Health, Inc./1/ 106,200 1,141,650
-----------
34,759,736
19 OPPENHEIMER QUEST SMALL CAP FUND
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS Continued
--------------------------------------------------------------------------------
Market Value
Shares See Note 1
--------------------------------------------------------------------------------
Healthcare/Supplies & Services--6.6%
ADAC Laboratories/1/ 28,000 $ 364,000
--------------------------------------------------------------------------------
Aksys Ltd./1/ 30,000 468,750
--------------------------------------------------------------------------------
AtheroGenics, Inc./1/ 45,900 304,088
--------------------------------------------------------------------------------
ATS Medical, Inc./1/ 28,000 512,750
--------------------------------------------------------------------------------
Biosite Diagnostics, Inc./1/ 19,600 431,200
--------------------------------------------------------------------------------
Biosource International, Inc./1/ 20,000 426,250
--------------------------------------------------------------------------------
CorVel Corp./1/ 51,800 1,641,413
--------------------------------------------------------------------------------
Datascope Corp. 15,000 519,375
--------------------------------------------------------------------------------
DaVita, Inc./1/ 18,300 205,875
--------------------------------------------------------------------------------
DIANON Systems, Inc./1/ 18,000 666,000
--------------------------------------------------------------------------------
Digene Corp./1/ 6,000 194,719
--------------------------------------------------------------------------------
ESC Medical Systems Ltd./1/ 16,000 249,000
--------------------------------------------------------------------------------
Gentiva Health Services, Inc./1/ 54,000 637,875
--------------------------------------------------------------------------------
Henry Schein, Inc./1/ 11,000 268,125
--------------------------------------------------------------------------------
ICU Medical, Inc./1/ 38,000 950,000
--------------------------------------------------------------------------------
MediChem Life Sciences, Inc./1/ 43,000 395,063
--------------------------------------------------------------------------------
Mid Atlantic Medical Services, Inc./1/ 100,000 1,700,000
--------------------------------------------------------------------------------
North American Scientific, Inc./1/ 4,800 130,800
--------------------------------------------------------------------------------
Option Care, Inc./1/ 45,000 298,125
--------------------------------------------------------------------------------
Oxford Health Plans, Inc./1/ 54,000 1,822,500
--------------------------------------------------------------------------------
PacifiCare Health Systems, Inc./1/ 9,000 93,938
--------------------------------------------------------------------------------
PolyMedica Corp./1/ 18,000 1,035,000
--------------------------------------------------------------------------------
Quest Diagnostics, Inc./1/ 10,200 981,750
--------------------------------------------------------------------------------
Techne Corp./1/ 11,000 1,240,250
--------------------------------------------------------------------------------
Triad Hospitals, Inc./1/ 38,000 1,054,500
--------------------------------------------------------------------------------
Universal Health Services, Inc., Cl. B/1/ 9,000 754,875
-----------
17,346,221
--------------------------------------------------------------------------------
Technology--24.9%
--------------------------------------------------------------------------------
Computer Hardware--3.3%
Artesyn Technologies, Inc./1/ 29,000 1,178,125
--------------------------------------------------------------------------------
Digital Lightwave, Inc./1/ 17,000 861,688
--------------------------------------------------------------------------------
Henry (Jack) & Associates, Inc. 4,000 220,000
--------------------------------------------------------------------------------
In Focus Systems, Inc./1/ 40,000 1,767,500
--------------------------------------------------------------------------------
Iomega Corp./1/ 45,000 220,950
--------------------------------------------------------------------------------
Mentor Graphics Corp./1/ 53,000 1,242,188
--------------------------------------------------------------------------------
Microsemi Corp./1/ 18,000 720,000
--------------------------------------------------------------------------------
Objective Systems Integrators, Inc./1/ 27,000 243,000
--------------------------------------------------------------------------------
Pixelworks, Inc./1/ 16,000 533,000
--------------------------------------------------------------------------------
Quantum Corp./DLT & Storage Systems Group/1/ 16,000 240,000
--------------------------------------------------------------------------------
Radiant Systems, Inc./1/ 16,000 295,000
20 OPPENHEIMER QUEST SMALL CAP FUND
<PAGE>
Market Value
Shares See Note 1
--------------------------------------------------------------------------------
Computer Hardware Continued
Sipex Corp./1/ 9,000 $ 354,375
--------------------------------------------------------------------------------
SmartDisk Corp./1/ 31,000 158,875
--------------------------------------------------------------------------------
Standard Microsystems Corp./1/ 23,100 554,400
--------------------------------------------------------------------------------
Syntellect, Inc. 20,000 92,500
-----------
8,681,601
--------------------------------------------------------------------------------
Computer Services--2.8%
AremisSoft Corp./1/ 24,000 1,026,000
--------------------------------------------------------------------------------
Bel Fuse, Inc., Cl. A 8,000 341,500
--------------------------------------------------------------------------------
Centillium Communications, Inc./1/ 12,000 455,813
--------------------------------------------------------------------------------
Cerner Corp./1/ 23,000 1,424,563
--------------------------------------------------------------------------------
Corillian Corp./1/ 5,000 71,250
--------------------------------------------------------------------------------
Elastic Networks, Inc./1/ 16,200 100,238
--------------------------------------------------------------------------------
Excalibur Technologies Corp./1/ 7,000 412,125
--------------------------------------------------------------------------------
eXcelon Corp./1/ 24,000 195,000
--------------------------------------------------------------------------------
F.Y.I., Inc./1/ 5,500 220,688
--------------------------------------------------------------------------------
FactSet Research Systems, Inc. 21,000 795,270
--------------------------------------------------------------------------------
HNC Software, Inc./1/ 8,000 162,500
--------------------------------------------------------------------------------
Ixia/1/ 7,800 182,813
--------------------------------------------------------------------------------
OmniSky Corp./1/ 23,400 327,600
--------------------------------------------------------------------------------
Packeteer, Inc./1/ 22,000 547,250
--------------------------------------------------------------------------------
SeraNova, Inc./1/ 4,700 18,800
--------------------------------------------------------------------------------
ViryaNet Ltd./1/ 65,400 445,538
--------------------------------------------------------------------------------
Websense, Inc./1/ 20,000 360,000
--------------------------------------------------------------------------------
WebTrends Corp./1/ 12,000 385,688
-----------
7,472,636
--------------------------------------------------------------------------------
Computer Software--9.6%
Actuate Corp./1/ 19,500 549,656
--------------------------------------------------------------------------------
Advent Software, Inc./1/ 4,000 239,250
--------------------------------------------------------------------------------
Ansoft Corp./1/ 18,700 189,338
--------------------------------------------------------------------------------
Aspen Technologies, Inc./1/ 10,000 413,125
--------------------------------------------------------------------------------
AvantGo, Inc./1/ 8,200 80,719
--------------------------------------------------------------------------------
Avistar Communications Corp./1/ 54,500 211,188
--------------------------------------------------------------------------------
BARRA, Inc./1/ 19,000 1,161,375
--------------------------------------------------------------------------------
Bell Microproducts, Inc./1/ 35,000 910,000
--------------------------------------------------------------------------------
Broadbase Software, Inc./1/ 51,000 548,250
--------------------------------------------------------------------------------
Catapult Communications Corp./1/ 23,000 278,875
--------------------------------------------------------------------------------
Corsair Communications, Inc./1/ 55,000 333,438
--------------------------------------------------------------------------------
CyberOptics Corp./1/ 20,000 470,000
--------------------------------------------------------------------------------
Dataram Corp./1/ 9,000 177,750
--------------------------------------------------------------------------------
Deltek Systems, Inc./1/ 51,300 339,863
21 OPPENHEIMER QUEST SMALL CAP FUND
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS Continued
--------------------------------------------------------------------------------
Market Value
Shares See Note 1
--------------------------------------------------------------------------------
Computer Software Continued
Descartes Systems Group, Inc. (The)/1/ 21,000 $ 850,500
--------------------------------------------------------------------------------
Documentum, Inc./1/ 14,000 1,190,000
--------------------------------------------------------------------------------
DSET Corp./1/ 13,000 73,938
--------------------------------------------------------------------------------
Embarcadero Technologies, Inc./1/ 12,000 725,250
--------------------------------------------------------------------------------
Exchange Applications, Inc./1/ 10,000 32,031
--------------------------------------------------------------------------------
FileNet Corp./1/ 46,000 1,219,000
--------------------------------------------------------------------------------
FirePond, Inc./1/ 25,000 200,000
--------------------------------------------------------------------------------
Genomica Corp./1/ 17,200 216,075
--------------------------------------------------------------------------------
Informax, Inc./1/ 4,700 130,719
--------------------------------------------------------------------------------
IntraNet Solutions, Inc./1/ 27,600 1,283,400
--------------------------------------------------------------------------------
Manugistics Group, Inc./1/ 8,000 911,500
--------------------------------------------------------------------------------
MapInfo Corp./1/ 45,000 1,470,938
--------------------------------------------------------------------------------
McDATA Corp., Cl. B/1/ 8,500 708,555
--------------------------------------------------------------------------------
Metasolv Software, Inc./1/ 10,000 124,375
--------------------------------------------------------------------------------
Netegrity, Inc./1/ 8,000 624,000
--------------------------------------------------------------------------------
NetIQ Corp./1/ 14,000 1,205,750
--------------------------------------------------------------------------------
ONYX Software Corp./1/ 30,500 484,188
--------------------------------------------------------------------------------
OTG Software, Inc./1/ 30,000 945,000
--------------------------------------------------------------------------------
Per-Se Technologies, Inc./1/ 40,000 176,250
--------------------------------------------------------------------------------
PLATO Learning, Inc./1/ 7,000 171,500
--------------------------------------------------------------------------------
Puma Technology, Inc./1/ 23,000 311,938
--------------------------------------------------------------------------------
Rainbow Technologies, Inc./1/ 58,000 1,442,750
--------------------------------------------------------------------------------
Retek, Inc./1/ 22,374 882,375
--------------------------------------------------------------------------------
Secure Computing Corp./1/ 10,000 230,000
--------------------------------------------------------------------------------
SERENA Software, Inc./1/ 10,000 508,750
--------------------------------------------------------------------------------
SilverStream Software, Inc./1/ 19,000 427,500
--------------------------------------------------------------------------------
SonicWALL, Inc./1/ 57,000 851,438
--------------------------------------------------------------------------------
Sybase, Inc./1/ 20,000 418,750
--------------------------------------------------------------------------------
TALX Corp. 5,000 125,625
--------------------------------------------------------------------------------
TeleTech Holdings, Inc./1/ 10,000 277,500
--------------------------------------------------------------------------------
Verity, Inc./1/ 33,500 787,250
--------------------------------------------------------------------------------
Wind River Systems, Inc./1/ 8,000 328,500
-----------
25,238,172
--------------------------------------------------------------------------------
Communications Equipment--2.1%
Allen Telecom, Inc./1/ 19,000 355,063
--------------------------------------------------------------------------------
Anixter International, Inc./1/ 35,000 848,750
--------------------------------------------------------------------------------
Aware, Inc./1/ 10,000 309,375
--------------------------------------------------------------------------------
BISYS Group, Inc. (The)/1/ 28,000 1,319,500
--------------------------------------------------------------------------------
Cable Design Technologies Corp./1/ 30,000 691,875
--------------------------------------------------------------------------------
Ditech Communications Corp./1/ 13,000 447,688
22 OPPENHEIMER QUEST SMALL CAP FUND
<PAGE>
Market Value
Shares See Note 1
--------------------------------------------------------------------------------
Communications Equipment Continued
Netopia, Inc./1/ 15,000 $ 163,125
--------------------------------------------------------------------------------
Plantronics, Inc./1/ 4,000 182,500
--------------------------------------------------------------------------------
Tekelec/1/ 10,000 368,125
--------------------------------------------------------------------------------
Tut Systems, Inc./1/ 23,000 764,750
-----------
5,450,751
--------------------------------------------------------------------------------
Electronics--7.1%
Actel Corp./1/ 22,000 805,750
--------------------------------------------------------------------------------
Alliance Semiconductor Corp./1/ 32,000 640,000
--------------------------------------------------------------------------------
Anaren Microwave, Inc./1/ 2,700 280,800
--------------------------------------------------------------------------------
Axsys Technologies, Inc./1/ 6,000 273,000
--------------------------------------------------------------------------------
Cirrus Logic, Inc./1/ 16,000 690,000
--------------------------------------------------------------------------------
DDi Corp./1/ 20,000 798,750
--------------------------------------------------------------------------------
Dense-Pac Microsystems, Inc./1/ 50,000 209,375
--------------------------------------------------------------------------------
Electro Scientific Industries, Inc./1/ 6,000 209,625
--------------------------------------------------------------------------------
Exar Corp./1/ 9,000 402,188
--------------------------------------------------------------------------------
General Semiconductor, Inc./1/ 59,800 683,963
--------------------------------------------------------------------------------
GenRad, Inc./1/ 100 913
--------------------------------------------------------------------------------
hi/fn, inc./1/ 9,000 555,750
--------------------------------------------------------------------------------
ICOS Vision Systems Corp. NV/1/ 4,000 119,750
--------------------------------------------------------------------------------
Integrated Silicon Solution, Inc./1/ 26,000 347,750
--------------------------------------------------------------------------------
Keithley Instruments, Inc. 4,000 214,000
--------------------------------------------------------------------------------
MEMC Electronic Materials, Inc./1/ 12,000 119,250
--------------------------------------------------------------------------------
Merix Corp./1/ 25,050 1,169,913
--------------------------------------------------------------------------------
MKS Instruments, Inc./1/ 8,000 147,000
--------------------------------------------------------------------------------
Nanometrics, Inc./1/ 40,000 920,000
--------------------------------------------------------------------------------
Nu Horizons Electronics Corp. 57,750 931,219
--------------------------------------------------------------------------------
Oak Technology, Inc./1/ 56,000 1,571,500
--------------------------------------------------------------------------------
Park Electrochemical Corp. 16,000 1,057,000
--------------------------------------------------------------------------------
Pericom Semiconductor Corp./1/ 21,000 556,500
--------------------------------------------------------------------------------
PLX Technology, Inc./1/ 33,000 792,000
--------------------------------------------------------------------------------
Rogers Corp./1/ 25,000 893,750
--------------------------------------------------------------------------------
SBS Technologies, Inc./1/ 18,000 463,500
--------------------------------------------------------------------------------
Semitool, Inc./1/ 10,000 130,625
--------------------------------------------------------------------------------
Supertex, Inc./1/ 4,000 113,500
--------------------------------------------------------------------------------
Trikon Technologies, Inc./1/ 20,000 328,750
--------------------------------------------------------------------------------
Trimble Navigation Ltd./1/ 32,100 762,375
--------------------------------------------------------------------------------
Varian Medical Systems, Inc./1/ 13,000 635,375
--------------------------------------------------------------------------------
Varian Semiconductor Equipment Associates, Inc./1/ 21,000 483,000
--------------------------------------------------------------------------------
Varian, Inc./1/ 33,000 1,016,813
--------------------------------------------------------------------------------
White Electronic Designs Corp./1/ 55,000 525,938
-----------
18,849,622
23 OPPENHEIMER QUEST SMALL CAP FUND
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS Continued
--------------------------------------------------------------------------------
Market Value
Shares See Note 1
--------------------------------------------------------------------------------
Transportation-- 0.8%
--------------------------------------------------------------------------------
Railroads & Truckers--0.2%
GATX Corp. 5,000 $ 210,313
--------------------------------------------------------------------------------
Heartland Express, Inc./1/ 21,500 373,563
-----------
583,876
--------------------------------------------------------------------------------
Shipping--0.6%
Newport News Shipbuilding, Inc. 9,000 442,688
--------------------------------------------------------------------------------
Overseas Shipholding Group, Inc. 43,000 1,032,000
-----------
1,474,688
--------------------------------------------------------------------------------
Utilities--0.9%
--------------------------------------------------------------------------------
Gas Utilities--0.9%
Equitable Resources, Inc. 25,000 1,450,000
--------------------------------------------------------------------------------
Questar Corp. 17,000 460,063
--------------------------------------------------------------------------------
Western Gas Resources, Inc. 28,000 614,250
-----------
2,524,313
-----------
Total Common Stocks (Cost $245,496,301) 263,623,022
Principal
Amount
================================================================================
Repurchase Agrements--3.0%
Repurchase agreement with Banc One Capital
Markets, Inc., 6.51%, dated 10/31/00, to be
repurchased at $7,936,435 on 11/1/00,
collateralized by U.S. Treasury Nts.,
5.625%-6.50%, 8/31/01-4/30/03, with a value
of $8,100,002 (Cost $7,935,000) $7,935,000 7,935,000
--------------------------------------------------------------------------------
Total Investments, at Value (Cost $253,431,301) 102.9% 271,558,022
--------------------------------------------------------------------------------
Liabilities in Excess of Other Assets (2.9) (7,766,134)
---------------------------
Net Assets 100.0% $263,791,888
===========================
Footnote to Statement of Investments
1. Non-income-producing security.
See accompanying Notes to Financial Statements.
24 OPPENHEIMER QUEST SMALL CAP FUND
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES October 31, 2000
--------------------------------------------------------------------------------
================================================================================
Assets
Investments, at value (cost $253,431,301)--
see accompanying statement $271,558,022
--------------------------------------------------------------------------------
Cash 1,967
--------------------------------------------------------------------------------
Receivables and other assets:
Investments sold 3,347,333
Shares of beneficial interest sold 455,063
Interest and dividends 25,363
Other 40,520
-------------
Total assets 275,428,268
================================================================================
Liabilities
Payables and other liabilities:
Investments purchased 11,095,935
Shares of beneficial interest redeemed 277,148
Distribution and service fees plan 54,641
Trustees' compensation 32,568
Transfer and shareholder servicing agent fees 24,290
Other 151,798
-------------
Total liabilities 11,636,380
================================================================================
Net Assets $263,791,888
=============
================================================================================
Composition of Net Assets
Par value of shares of beneficial interest $ 126,014
--------------------------------------------------------------------------------
Additional paid-in capital 233,153,720
--------------------------------------------------------------------------------
Accumulated net investment loss (21,710)
--------------------------------------------------------------------------------
Accumulated net realized gain on investments and
foreign currency transactions 12,407,212
--------------------------------------------------------------------------------
Net unrealized appreciation on investments and
translation of assets and liabilities denominated
in foreign currencies 18,126,652
-------------
Net Assets $263,791,888
=============
================================================================================
Net Asset Value Per Share
Class A Shares:
Net asset value and redemption price per share
assets of (based on net $157,759,327 and 7,419,930
shares of beneficial interest outstanding) $21.26
Maximum offering price per share (net asset value
plus sales charge of 5.75% of offering price) $22.56
--------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable
contingent deferred sales charge) and offering price
(based on net per share assets of $83,859,235
and 4,096,588 shares of beneficial interest
outstanding) $20.47
--------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes deferred
applicable contingent sales charge) and offering price
per share (based on $22,173,326 net assets of and
1,084,872 shares of beneficial interest outstanding) $20.44
See accompanying Notes to Financial Statements.
25 OPPENHEIMER QUEST SMALL CAP FUND
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF OPERATIONS For the Year Ended October 31, 2000
--------------------------------------------------------------------------------
================================================================================
Investment Income
Dividends (net of foreign withholding taxes of $706) $ 1,671,488
--------------------------------------------------------------------------------
Interest 682,970
--------------
Total income 2,354,458
================================================================================
Expenses
Management fees 2,480,877
--------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 678,332
Class B 795,603
Class C 205,264
--------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees 605,254
--------------------------------------------------------------------------------
Shareholder reports 122,191
--------------------------------------------------------------------------------
Registration and filing fees 79,346
--------------------------------------------------------------------------------
Custodian fees and expenses 25,577
--------------------------------------------------------------------------------
Trustees' compensation 16,281
--------------------------------------------------------------------------------
Other 255,096
--------------
Total expenses 5,263,821
Less expenses paid indirectly (16,636)
--------------
Net expenses 5,247,185
================================================================================
Net Investment Loss (2,892,727)
================================================================================
Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments 27,199,578
Foreign currency transactions (40,282)
--------------
Net realized gain 27,159,296
--------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on:
Investments 32,154,066
Translation of assets and liabilities
denominated in foreign currencies (348,881)
--------------
Net change 31,805,185
--------------
Net realized and unrealized gain 58,964,481
================================================================================
Net Increase in Net Assets Resulting from Operations $56,071,754
==============
See accompanying Notes to Financial Statements.
26 OPPENHEIMER QUEST SMALL CAP FUND
<PAGE>
--------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
Year Ended October 31, 2000 1999
================================================================================
Operations
Net investment loss $(2,892,727) $(2,342,454)
--------------------------------------------------------------------------------
Net realized gain (loss) 27,159,296 (7,872,596)
--------------------------------------------------------------------------------
Net change in unrealized
appreciation (depreciation) 31,805,185 11,641,212
----------------------------
Net increase in net assets
resulting from operations 56,071,754 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 decrease in net assets resulting from
beneficial interest transactions:
Class A (27,102,389) (28,052,430)
Class B (16,832,955) (11,675,938)
Class C (3,301,267) (5,034,538)
================================================================================
Net Assets
Total increase (decrease) 8,825,162 (53,348,377)
--------------------------------------------------------------------------------
Beginning of period 254,966,726 308,315,103
-----------------------------
End of period (including accumulated net
investment loss of $21,710 and $22,637,
respectively) $263,791,888 $254,966,726
=============================
See accompanying Notes to Financial Statements.
27 OPPENHEIMER QUEST SMALL CAP FUND
<PAGE>
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class A Year Ended October 31, 2000 1999 1998 1997 1996/1/
------------------------------------------------------------------------------------------------
Per Share Operating Data
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 16.82 $ 17.29 $ 22.26 $ 19.03 $ 17.31
------------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment income (loss) (.16) (.10) (.09) (.07) .03
Net realized and unrealized gain (loss) 4.60 .18 (3.02) 5.66 2.79
--------------------------------------------------------
Total income (loss) from investment
operations 4.44 .08 (3.11) 5.59 2.82
------------------------------------------------------------------------------------------------
Dividends and/or distributions to
shareholders:
Dividends from net investment income -- -- -- -- (.11)
Distributions from net realized gain --/2/ (.54) (1.86) (2.36) (.99)
Distributions in excess of net
realized gain -- (.01) -- -- --
--------------------------------------------------------
Total dividends and/or distributions
to shareholders -- (.55) (1.86) (2.36) (1.10)
------------------------------------------------------------------------------------------------
Net asset value, end of period $ 21.26 $ 16.82 $ 17.29 $ 22.26 $ 19.03
========================================================
================================================================================================
Total Return, at Net Asset Value/3/ 26.40% 0.38% (15.05)% 32.72% 17.17%
================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in
thousands) $157,759 $151,059 $183,567 $181,973 $102,746
------------------------------------------------------------------------------------------------
Average net assets (in thousands) $147,952 $170,205 $201,952 $131,503 $117,765
------------------------------------------------------------------------------------------------
Ratios to average net assets:/4/
Net investment income (loss) (0.95)% (0.60)% (0.42)% (0.32)% 0.11%
Expenses 1.90% 1.96% 1.80%/5/ 1.78%/5/ 1.90%/5/
------------------------------------------------------------------------------------------------
Portfolio turnover rate 166% 87% 65% 82% 70%
</TABLE>
1. On November 22, 1995, OppenheimerFunds, Inc. became the investment advisor to
the Fund.
2. Less than $0.005 per share.
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. Expense ratio has not been grossed up to reflect the effect of expenses paid
indirectly.
See accompanying Notes to Financial Statements.
28 OPPENHEIMER QUEST SMALL CAP FUND
<PAGE>
<TABLE>
<CAPTION>
Class B Year Ended October 31, 2000 1999 1998 1997 1996/1/
===============================================================================================
Per Share Operating Data
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 16.28 $ 16.84 $ 21.83 $ 18.79 $ 17.11
------------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment loss (.33) (.22) (.12) (.05) (.06)
Net realized and unrealized gain (loss) 4.52 .21 (3.01) 5.45 2.76
--------------------------------------------------------
Total income (loss) from investment
operations 4.19 (.01) (3.13) 5.40 2.70
------------------------------------------------------------------------------------------------
Dividends and/or distributions to
shareholders:
Dividends from net investment income -- -- -- -- (.03)
Distributions from net realized gain --/2/ (.54) (1.86) (2.36) (.99)
Distributions in excess of net
realized gain -- (.01) -- -- --
--------------------------------------------------------
Total dividends and/or distributions
to shareholders -- (.55) (1.86) (2.36) (1.02)
------------------------------------------------------------------------------------------------
Net asset value, end of period $ 20.47 $ 16.28 $ 16.84 $ 21.83 $ 18.79
========================================================
================================================================================================
Total Return, at Net Asset Value/3/ 25.74% (0.16)% (15.47)% 32.05% 16.57%
================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in
thousands) $83,859 $82,949 $98,041 $79,754 $30,766
------------------------------------------------------------------------------------------------
Average net assets (in thousands) $79,526 $94,863 $97,818 $47,462 $26,478
------------------------------------------------------------------------------------------------
Ratios to average net assets:/4/
Net investment loss (1.48)% (1.10)% (0.92)% (0.80)% (0.37)%
Expenses 2.44% 2.45% 2.31%/5/ 2.27%/5/ 2.38%/5/
------------------------------------------------------------------------------------------------
Portfolio turnover rate 166% 87% 65% 82% 70%
</TABLE>
1. On November 22, 1995, OppenheimerFunds, Inc. became the investment advisor to
the Fund.
2. Less than $0.005 per share.
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. Expense ratio has not been grossed up to reflect the effect of expenses paid
indirectly.
See accompanying Notes to Financial Statements.
29 OPPENHEIMER QUEST SMALL CAP FUND
<PAGE>
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS Continued
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class C Year Ended October 31, 2000 1999 1998 1997 1996/1/
============================================================================================
Per Share Operating Data
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 16.25 $ 16.81 $ 21.79 $ 18.76 $ 17.11
--------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment loss (.33) (.25) (.13) (.08) (.05)
Net realized and unrealized gain (loss) 4.52 .24 (2.99) 5.47 2.75
---------------------------------------------------
Total income (loss) from investment
operations 4.19 (.01) (3.12) 5.39 2.70
--------------------------------------------------------------------------------------------
Dividends and/or distributions to
shareholders:
Dividends from net investment income -- -- -- -- (.06)
Distributions from net realized gain --/2/ (.54) (1.86) (2.36) (.99)
Distributions in excess of net
realized gain -- (.01) -- -- --
---------------------------------------------------
Total dividends and/or distributions
to shareholders -- (.55) (1.86) (2.36) (1.05)
--------------------------------------------------------------------------------------------
Net asset value, end of period $ 20.44 $ 16.25 $ 16.81 $ 21.79 $ 18.76
===================================================
============================================================================================
Total Return, at Net Asset Value/3/ 25.79% (0.16)% (15.45)% 32.05% 16.55%
============================================================================================
Ratios/Supplemental Data
Net assets, end of period (in
thousands) $22,173 $20,959 $26,707 $24,512 $13,181
--------------------------------------------------------------------------------------------
Average net assets (in thousands) $20,521 $24,964 $28,647 $17,401 $11,501
--------------------------------------------------------------------------------------------
Ratios to average net assets:/4/
Net investment loss (1.49)% (1.10)% (0.92)% (0.81)% (0.40)%
Expenses 2.44% 2.45% 2.31%/5/ 2.28%/5/ 2.40%/5/
--------------------------------------------------------------------------------------------
Portfolio turnover rate 166% 87% 65% 82% 70%
</TABLE>
1. On November 22, 1995, OppenheimerFunds, Inc. became the investment advisor to
the Fund.
2. Less than $0.005 per share.
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. Expense ratio has not been grossed up to reflect the effect of expenses paid
indirectly.
See accompanying Notes to Financial Statements.
30 OPPENHEIMER QUEST SMALL CAP FUND
<PAGE>
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
================================================================================
1. Significant Accounting Policies
Oppenheimer Quest Small Cap Fund (the Fund) operated under the name of Quest
Small Cap Value Fund, through May 18, 2000, 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 sub-advisory 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 a front-end
sales charge. Class B and Class C shares are sold without a front-end 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 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 listed or traded on National Stock Exchanges or
other domestic or foreign exchanges are valued based on the last sale price of
the security traded on that exchange prior to the time when the Fund's assets
are valued. In the absence of a sale, the security is valued 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. Short-term "money market type" debt
securities with remaining maturities of sixty days or less are valued at
amortized cost (which approximates market value).
--------------------------------------------------------------------------------
Foreign Currency Translation The accounting records of the Fund are maintained
in U.S. dollars. Prices of securities denominated in foreign currencies are
translated into U.S. dollars at the prevailing exchange rates on the valuation
date. Amounts related to the purchase and sale of foreign securities and
investment income are translated at the prevailing exchange rates on the
respective dates of such transactions.
The effect of changes in foreign currency exchange rates on investments is
separately identified from the fluctuations arising from changes in market
values of securities held and reported with all other foreign currency gains and
losses in the Fund's Statement of Operations.
31 OPPENHEIMER QUEST SMALL CAP FUND
<PAGE>
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS Continued
--------------------------------------------------------------------------------
================================================================================
1. Significant Accounting Policies Continued
Repurchase Agreements The Fund requires the custodian to take possession, to
have legally segregated in the Federal Reserve Book Entry System or to have
segregated within the custodian's vault, all securities held as collateral for
repurchase agreements. The market value of the underlying securities is required
to be at least 102% of the resale price at the time of purchase. If the seller
of the agreement defaults and the value of the collateral declines, or if the
seller enters an insolvency proceeding, realization of the value of the
collateral by the Fund may be delayed or limited.
--------------------------------------------------------------------------------
Allocation of Income, Expenses, Gains and Losses Income, expenses (other than
those attributable to a specific class), gains and losses are allocated daily to
each class of shares based upon the relative proportion of net assets
represented by such class. Operating expenses directly attributable to a
specific class are charged against the operations of that class.
--------------------------------------------------------------------------------
Federal Taxes The Fund intends to continue to comply with provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income, including any net realized gain on
investments not offset by loss carryovers, to shareholders. Therefore, no
federal income or excise tax provision is required.
--------------------------------------------------------------------------------
Trustees' Compensation The Fund has adopted 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 year ended
October 31, 2000, a credit of $926 was made for the Fund's projected benefit
obligations, resulting in an accumulated liability of $21,711 as of October 31,
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.
32 OPPENHEIMER QUEST SMALL CAP FUND
<PAGE>
================================================================================
1. Significant Accounting Policies Continued
Classification of Dividends and Distributions to Shareholders Net investment
income (loss) and net realized gain (loss) may differ for financial statement
and tax purposes. The character of dividends and distributions made during the
fiscal 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 dividends and 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.
The Fund adjusts the classification of distributions to shareholders to
reflect the differences between financial statement amounts and distributions
determined in accordance with income tax regulations. Accordingly, during the
year ended October 31, 2000, amounts have been reclassified to reflect an
increase in paid-in capital of $3,743,249, a decrease in accumulated net
investment loss of $2,893,654, and a decrease in accumulated net realized gain
on investments of $6,636,903. This reclassification includes $3,743,249
distributed in connection with Fund share redemptions which increased paid-in
capital and reduced accumulated net realized gain. Net assets of the Fund were
unaffected by the reclassifications.
--------------------------------------------------------------------------------
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.
33 OPPENHEIMER QUEST SMALL CAP FUND
<PAGE>
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS Continued
--------------------------------------------------------------------------------
================================================================================
2. Shares of Beneficial Interest
The Fund has authorized an unlimited number of $.01 par value shares of
beneficial interest of each class. Transactions in shares of beneficial interest
were as follows:
<TABLE>
<CAPTION>
Year Ended October 31, 2000 Year Ended October 31, 1999
Shares Amount Shares Amount
----------------------------------------------------------------------------------------------
Class A
<S> <C> <C> <C> <C>
Sold 3,669,954 $ 70,880,054 4,182,148 $ 73,860,752
Dividends and/or
distributions reinvested 291 4,948 333,175 5,733,935
Redeemed (5,231,325) (97,987,391) (6,148,237) (107,647,117)
------------------------------------------------------------
Net decrease (1,561,080) $ (27,102,389) (1,632,914) $ (28,052,430)
============================================================
----------------------------------------------------------------------------------------------
Class B
Sold 1,329,640 $ 24,355,495 1,802,096 $ 30,900,063
Dividends and/or
distributions reinvested 170 2,801 185,249 3,099,205
Redeemed (2,328,281) (41,191,251) (2,714,320) (45,675,206)
------------------------------------------------------------
Net decrease (998,471) $ (16,832,955) (726,975) $ (11,675,938)
============================================================
----------------------------------------------------------------------------------------------
Class C
Sold 487,151 $ 8,886,448 778,674 $ 13,281,277
Dividends and/or
distributions reinvested 114 1,903 49,695 829,897
Redeemed (691,896) (12,189,618) (1,127,488) (19,145,712)
------------------------------------------------------------
Net decrease (204,631) $ (3,301,267) (299,119) $ (5,034,538)
============================================================
==============================================================================================
</TABLE>
3. Purchases and Sales of Securities
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations, for the year ended October 31, 2000, were
$401,990,033 and $415,765,082, respectively.
As of October 31, 2000, unrealized appreciation (depreciation) based on cost of
securities for federal income tax purposes of $253,861,974 was:
Gross unrealized appreciation $ 45,040,501
Gross unrealized depreciation (27,344,453)
------------
Net unrealized appreciation $ 17,696,048
============
34 OPPENHEIMER QUEST SMALL CAP FUND
<PAGE>
================================================================================
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 year ended October 31, 2000, was an
annualized rate of 1.00%, before any waiver by the Manager if applicable.
--------------------------------------------------------------------------------
Sub-Advisor Fees The Manager paid OpCap Advisors (the Sub-Advisor) based on the
fee schedule set forth in the Prospectus. For the year ended October 31, 2000,
the Manager paid $506,421 to the Sub-Advisor. Effective April 28, 2000,
Oppenheimer Quest Small Cap Fund terminated its sub-advisory agreement with
OpCap Advisors.
--------------------------------------------------------------------------------
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 for each Fund
shareholder account and reimburses OFS for its out-of-pocket expenses.
--------------------------------------------------------------------------------
Distribution and Service Plan Fees Under its General Distributor's Agreement
with the Manager, the Distributor acts as the Fund's principal underwriter in
the continuous public offering of the different classes of shares of the Fund.
The compensation paid to (or retained by) the Distributor from the sale of
shares or on the redemption of shares is shown in the table below for the period
indicated.
<TABLE>
<CAPTION>
Aggregate Class A Commissions Commissions Commissions
Front-End Front-End on Class A on Class B on Class C
Sales Charges Sales Charges Shares Shares Shares
on Class A Retained by Advanced by Advanced by Advanced by
Year Ended Shares Distributor Distributor/1/ Distributor/1/ Distributor/1/
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
October 31, 2000 $349,046 $93,524 $67,555 $438,019 $48,485
</TABLE>
1. The Distributor advances commission payments to dealers for certain sales of
Class A shares and for sales of Class B and Class C shares from its own
resources at the time of sale.
<TABLE>
<CAPTION>
Class A Class B Class C
Contingent Deferred Contingent Deferred Contingent Deferred
Sales Charges Sales Charges Sales Charges
Year Ended Retained by Distributor Retained by Distributor Retained by Distributor
--------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
October 31, 2000 $7,517 $340,504 $7,929
</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.
35 OPPENHEIMER QUEST SMALL CAP FUND
<PAGE>
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS Continued
--------------------------------------------------------------------------------
================================================================================
4. Fees and Other Transactions with Affiliates Continued
Class A Distribution and Service Plan Fees. Under the plan, the Fund pays an
asset-based sales charge to the Distributor at an annual rate of 0.20% 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 year ended October 2000, payments under the Class A Plan
totaled $678,332, all of which was paid by the Distributor to recipients. That
included $21,653 paid to an affiliate of the Distributor's parent company. Any
unreimbursed expenses the Distributor incurs with respect to Class A shares in
any fiscal year cannot be recovered in subsequent years.
--------------------------------------------------------------------------------
Class B and Class C Distribution and Service Plan Fees. Under each plan, service
fees and distribution fees are computed on the average of the net asset value of
shares in the respective class, determined as of the close of each regular
business day during the period. The Class B and Class C plans provide for the
Distributor to be compensated at a flat rate, whether the Distributor's
distribution expenses are more or less than the amounts paid by the Fund under
the plan during the period for which the fee is paid.
The Distributor retains the asset-based sales charge on Class B shares. The
Distributor retains the asset-based sales charge on Class C shares during the
first year the shares are outstanding. The asset-based sales charges on Class B
and Class C shares allow investors to buy shares without a front-end sales
charge while allowing the Distributor to compensate dealers that sell those
shares.
The Distributor's actual expenses in selling Class B and Class C shares may
be more than the payments it receives from the contingent deferred sales charges
collected on redeemed shares and 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 year ended October 31, 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 $795,603 $640,020 $1,909,316 2.28%
Class C Plan 205,264 61,502 349,874 1.58
36 OPPENHEIMER QUEST SMALL CAP FUND
<PAGE>
================================================================================
5.Foreign Currency Contracts
A foreign currency contract is a commitment to purchase or sell a foreign
currency at a future date, at a negotiated rate. The Fund may enter into foreign
currency contracts to settle specific purchases or sales of securities
denominated in a foreign currency and to seek to protect against adverse
exchange rate fluctuation. Risks to the Fund include the potential inability of
the counterparty to meet the terms of the contract.
The net U.S. dollar value of foreign currency underlying all contractual
commitments held by the Fund and the resulting unrealized appreciation or
depreciation are determined using prevailing foreign currency exchange rates.
Unrealized appreciation and depreciation on foreign currency contracts are
reported in the Statement of Assets and Liabilities.
The Fund may realize a gain or loss upon the closing or settlement of the
forward transaction. Realized gains and losses are reported with all other
foreign currency gains and losses in the Statement of Operations.
Securities denominated in foreign currency to cover net exposure on
outstanding foreign currency contracts are noted in the Statement of Investments
if applicable.
================================================================================
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 which
enables it to participate with other Oppenheimer funds in an unsecured line of
credit with a bank, which permits borrowings up to $400 million, collectively.
Interest is charged to each fund, based on its borrowings, at a rate equal to
the Federal Funds Rate plus 0.45%.
Borrowings are payable 30 days after such loan is executed. The Fund also pays a
commitment fee equal to its pro rata share of the average unutilized amount of
the credit facility at a rate of 0.08% per annum.
The Fund had no borrowings outstanding during the year ended or at October
31, 2000.
37 OPPENHEIMER QUEST SMALL CAP FUND
<PAGE>
--------------------------------------------------------------------------------
INDEPENDENT AUDITORS' REPORT
--------------------------------------------------------------------------------
================================================================================
The Board of Trustees and Shareholders of Oppenheimer Quest Small Cap
Fund:
We have audited the accompanying statement of assets and liabilities, including
the statement of investments, of Oppenheimer Quest Small Cap Fund (formerly
Oppenheimer Quest Small Cap Value Fund) as of October 31, 2000, and the related
statement of operations, the statement of changes in net assets and the
financial highlights for the year then ended. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audit. The statement of changes in net assets
for the year ended October 31, 1999, and the financial highlights for each of
the years in the four-year period ended October 31, 1999, were audited by other
auditors whose report dated November 19, 1999, expressed an unqualified opinion
on this information.
We conducted our audit in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities owned as of October 31, 2000, by correspondence with the custodian
and brokers; and where confirmations were not received from brokers, we
performed other auditing procedures. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audit provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Oppenheimer Quest Small Cap Fund as of October 31, 2000, and the results of its
operations, the changes in its net assets and the financial highlights for the
year then ended, in conformity with accounting principles generally accepted in
the United States of America.
KPMG LLP
Denver, Colorado
November 21, 2000
38 OPPENHEIMER QUEST SMALL CAP FUND
<PAGE>
--------------------------------------------------------------------------------
FEDERAL INCOME TAX INFORMATION Unaudited
--------------------------------------------------------------------------------
================================================================================
In early 2001 shareholders will receive information regarding all dividends and
distributions paid to them by the Fund during calendar year 2000. Regulations
of the U.S. Treasury Department require the Fund to report this information to
the Internal Revenue Service.
Distributions of $0.0006 per share were paid to Class A, Class B and Class C
shareholders, on December 7, 1999, all of which was designated as a "capital
gain distribution" for federal income tax purposes. Whether received in stock
or in cash, the capital gain distribution should be treated by shareholders as
a gain from the sale of capital assets held for more than one year (long-term
capital gains).
Dividends paid by the Fund during the fiscal year ended October 31, 2000,
which are not designated as capital gain distributions should be multiplied by
16.79% to arrive at the net amount eligible for the corporate dividend-received
deduction.
The foregoing information is presented to assist shareholders in reporting
distributions received from the Fund to the Internal Revenue Service. Because
of the complexity of the federal regulations which may affect your individual
tax return and the many variations in state and local tax regulations, we
recommend that you consult your tax advisor for specific guidance.
39 OPPENHEIMER QUEST SMALL CAP FUND
<PAGE>
--------------------------------------------------------------------------------
OPPENHEIMER QUEST SMALL CAP 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.
================================================================================
Distributor OppenheimerFunds Distributor, Inc.
================================================================================
Transfer and Shareholder OppenheimerFunds Services
Servicing Agent
================================================================================
Custodian of
Portfolio Securities Citibank, N.A.
================================================================================
Independent Auditors KPMG LLP
================================================================================
Legal Counsel Mayer, Brown & Platt
For more complete information about Oppenheimer Quest
Small Cap Fund, please refer to the Prospectus. To
obtain a copy, call your financial advisor, or call
OppenheimerFunds Distributor, Inc. at 1.800.525.7048,
or visit the OppenheimerFunds Internet website at
www.oppenheimerfunds.com.
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.
40 OPPENHEIMER QUEST SMALL CAP 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
-----------------------------------------------------------
Telecommunications Device for the Deaf (TDD)
Mon-Fri 9am-6:30pm ET
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
-----------------------------------------------------------
Transfer and Shareholder Servicing Agent
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]
RA0251.001.1000 December 30, 2000
