[COVER PAGE]
OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
Semiannual Report May 31, 1996
[PHOTO]Family at zoo
"We want
to go after
HIGH
long-term
GROWTH."
[LOGO]OppenheimerFunds/r/
<PAGE>
NEWS
- ----------------
Beat the Average
- ----------------
Cumulative Total Return for the
5-year Period Ended 5/31/96:
Oppenheimer Quest
Global Value Fund, Inc.
Class A (at NAV)(1)
- ------
84.37%
- ------
Lipper Global Average(3)
- ------
73.68%
- ------
This Fund is for people who want to take advantage of the SIGNIFICANT potential
for long-term growth offered by companies throughout the world.
- ------------------------
How Your Fund Is Managed
- ------------------------
By investing in both foreign and U.S. securities, Oppenheimer Quest Global Value
Fund, Inc. seeks to lessen the risks normally associated with foreign investing.
Using a proven investment strategy that identifies stocks representing good
value, the Fund seeks to provide long-term growth.
- -----------
Performance
- -----------
Total returns at net asset value for the six months ended 5/31/96 for Class A,
B, and C shares were 9.60%, 9.32%, and 9.32%, respectively.(1)
Your Fund's average annual total returns at maximum offering price for Class A
shares for the 1-year period ended 5/31/96 and since inception on 7/2/90 were
12.21% and 8.93%, respectively. For Class B shares, average annual total returns
for the 1-year period ended 5/31/96 and since inception of the Class on 9/1/93
were 13.46% and 11.56%, respectively. For Class C shares, average annual total
returns for the 1-year period ended 5/31/96 and since inception on 9/1/93 were
17.39% and 12.34%, respectively.(2)
- -------
Outlook
- -------
"Our outlook is strongly positive. We think this Fund is an excellent way for
investors to take advantage of long-term global trends. Our management style
combines a rigorous investment strategy designed to identify the companies that
will shape global business in the future with a value approach to buying their
stocks."
Pierre Daviron and Richard Glasebrook
Portfolio Managers
May 31, 1996
Total returns include change in share price and reinvestment of dividends and
capital gains distributions. 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.
1. Based on the change in net asset value per share for the period shown,
without deducting any sales charges. Such performance would have been lower if
sales charges were taken into account.
2. Class A returns show results of hypothetical investments on 5/31/95 and
5/31/91, after deducting the current maximum initial sales charge of 5.75%.
Class A shares were first publicly offered on 7/2/90. The Fund's maximum sales
charge rate for Class A shares was lower prior to 11/22/95, so actual
performance would have been greater. Class B shares show results of hypothetical
investments on 5/31/95 and 9/1/93 (inception of class) and the deduction of the
applicable contingent deferred sales charge of 5% (1-year) and 3% (since
inception) for Class B shares. Class C shares show results of hypothetical
investments on 5/31/95 and 9/1/93 with the deduction of the 1% contingent
deferred sales charge for the 1-year result. An explanation of the different
total returns is in the Fund's prospectus. The Fund's sub-advisor is OpCap
Advisors (formerly Quest for Value Advisors, the Fund's advisor until 11/22/95).
Total returns at net asset value for the six months ended 6/30/96 for Class A,
B, and C shares were 8.32%, 8.05%, and 8.07%, respectively. Your Fund's average
annual total returns at maximum offering price for Class A shares for the 1-year
period ended 6/30/96 and since inception on 7/2/90 were 10.35% and 8.80%,
respectively. For Class B shares, average annual total returns for the 1-year
period ended 6/30/96 and since inception of the Class on 9/1/93 were 11.48% and
11.18%, respectively. For Class C shares, average annual total returns for the
1-year period ended 6/30/96 and since inception on 9/1/93 were 15.41% and
11.95%, respectively.
3. Source: Lipper Analytical Services. The Lipper total return average for the
5-year performance of 34 global funds. The average is shown for comparative
purposes only. Oppenheimer Quest Global Value Fund, Inc. is characterized by
Lipper as a global fund. Lipper performance does not take sales charges into
consideration.
2 Oppenheimer Quest Global Value Fund, Inc.
<PAGE>
[PHOTO]Bridget A. Macaskill
Bridget A. Macaskill
President
Oppenheimer
Quest Global Value
Fund, Inc.
DEAR SHAREHOLDER,
This summer, the world's best athletes from nearly 200 countries are
competing in the Olympic Games in Atlanta. Of course, the U.S. will win its
share of gold medals. But a large percentage of the world's winners will in
all likelihood be from other parts of the world.
Much like this global competition, investment opportunities around
the world compete for investors' money. And with many of the world's stock
markets matching and in some cases outperforming the U.S. market, today's
winning investment opportunities are increasingly found among the major
nations of Europe as well as the emerging countries of Latin America and the
Far East. Even Japan is finally doing better after a five year recession.
In countries such as France, Germany and Switzerland, corporations are
cutting costs and improving productivity--just like their counterparts in
the United States. Since this renaissance began in the U.S. some ten years
ago, the Dow has essentially tripled. Also, corporate restructuring is
having a strongly positive impact on European stock prices, as corporate
managements increasingly respond to competitive pressures.
In many emerging market countries, such as Poland, Chile and Malaysia,
capitalism is being increasingly embraced. These countries are benefiting
from free trade and the enormous consumer demand of their growing
populations. Yet, despite this booming growth, inflation in these countries
is generally moderate.
In Japan, corporate profits and the country's stock market are finally
beginning to recover. Because Japan represents about 40 % of the
international stock market, its rebound is an important element in global
investing.
Whether it's a retailer in Japan offering discount prices to
recession-weary consumers, a private hospital in Germany competing with the
inefficient state-owned counterpart, a U.S. technology firm developing
revolutionary new software programs, or a recently privatized cellular
telephone company in Latin America, global investing offers a wealth of
opportunities.
But global investing also involves substantial costs and risks--such
as adverse fluctuations in foreign currency. It is very possible to invest
in a company overseas, watch the stock go up sharply, only to lose those
gains when the local currency is translated back into dollars.
Professional management--a combination of in-depth research, access to
sophisticated communications technology and experience in dealing with the
complexity of overseas markets--can reduce the additional risks inherent in
foreign investing.
On the following pages, your portfolio managers discuss the outlook
for your Fund in light of these broad issues. Thank you for your confidence
in OppenheimerFunds. We look forward to helping you reach your investment
goals.
/s/Bridget A. Macaskill
Bridget A. Macaskill
June 21, 1996
3 Oppenheimer Quest Global Value Fund, Inc.
<PAGE>
PIERRE DAVIRON AND
RICHARD GLASEBROOK
Portfolio Managers
Q + A
AN INTERVIEW WITH YOUR FUND'S MANAGERS.
HOW HAS THE FUND PERFORMED OVER THE PAST SIX MONTHS?
The Fund has performed well over a period defined by three distinct global
economic phases. First, in December, data showed slowing economic growth in the
U.S. and weakness in Europe, which raised concerns about the possibility of a
broad recession and heightened volatility across markets. In January, investors
began pouring cash into emerging markets in response to fears about the world's
developed economies, turning their attention to Asia and Latin America, where
growth rates tend to be higher than in developed markets.
Finally, in February, although recession fears surrounding the developed world
abated on new data suggesting that growth was picking up again, the markets
remained volatile. We believe the fact that the Fund weathered these transitions
well, demonstrates the versatility of our research-intensive and value-driven
investment strategy.
WHAT CHARACTERISTICS DO YOU LOOK FOR WHEN EVALUATING STOCKS?
Because financial markets have become more closely correlated, good or bad news
for the U.S. market is likely to spill over into other world markets, and vice
versa. This correlation makes it difficult for money managers to add value by
selecting one region or market over another. Instead, we believe what separates
managers now is their ability to pick good companies across markets. We want to
own companies with significant competitive advantages, a focus on creating value
for shareholders, and high returns generated from their core businesses.
WHAT INVESTMENTS MADE POSITIVE CONTRIBUTIONS TO PERFORMANCE?
Finding companies with strong management teams gives us a high degree of
confidence in their abilities to compete for the future. A good example of this
is a German athletic equipment firm that's shown impressive marketing prowess in
a highly competitive industry. One of our largest domestic holdings was a
dominant regional bank. The bank has an outstanding distribution system for its
services, and its management team owns an unusually high amount of the compnay's
stock, suggesting a vested interest in providing value to shareholders.(1)
DID ANY INVESTMENTS OR MARKET FACTORS HURT THE FUND?
We've been somewhat under-represented in the high-performing emerging markets.
Because of the wave of investment capital flowing into these markets, prices
have generally been above what we believe the stocks are worth. Despite high
prices overall, we have managed to find selected companies that meet our
guidelines.
WHAT IS YOUR OUTLOOK FOR THE FUND?
Our outlook is strongly positive. We think this Fund is an excellent way for
investors to take advantage of long-term global economic trends. Our management
style combines a rigorous investment strategy designed to identify the companies
that will shape global business in the future with a value approach to buying
their stocks. We believe this approach should help us provide better-than-
average returns over time.//
1. The Fund's portfolio is subject to change.
4 Oppenheimer Quest Global Value Fund, Inc.
<PAGE>
===================================================
STATEMENT OF INVESTMENTS May 31, 1996 (Unaudited)
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT(1) SEE NOTE 1
=================================================================================================================================
CONVERTIBLE CORPORATE BONDS AND NOTES - 2.4%
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Bangkok Bank Public Co., 3.25% Cv. Sub. Debs., 3/3/04 $ 1,650,000 $ 2,004,750
-----------------------------------------------------------------------------------------------------------------------
Mitsubishi Bank Ltd., 3.50% Cv. Debs., 3/31/04 2,250,000 2,415,938
-----------------------------------------------------------------------------------------------------------------------
Yamanouchi Pharmaceutical Co., Ltd., 1.25% Cv. Bonds, 3/1/14JPY 70,000,000 783,533
-------------
Total Convertible Corporate Bonds and Notes (Cost $4,659,116) 5,204,221
SHARES
=================================================================================================================================
COMMON STOCKS - 92.2%
- ---------------------------------------------------------------------------------------------------------------------------------
BASIC MATERIALS - 10.8%
- ---------------------------------------------------------------------------------------------------------------------------------
CHEMICALS - 5.3%
-----------------------------------------------------------------------------------------------------------------------
Du Pont (E.I.) De Nemours & Co. 65,000 5,183,750
-----------------------------------------------------------------------------------------------------------------------
Fuji Photo Film Co. 57,000 1,771,692
-----------------------------------------------------------------------------------------------------------------------
Hercules, Inc. 40,000 2,270,000
-----------------------------------------------------------------------------------------------------------------------
Monsanto Co. 15,000 2,278,125
-----------------------------------------------------------------------------------------------------------------------
Shin-Etsu Chemical Co. 500 9,991
-------------
11,513,558
- ---------------------------------------------------------------------------------------------------------------------------------
METALS - 3.2%
-----------------------------------------------------------------------------------------------------------------------
Cia Acos Especiais Itabira 95,500,000 341,530
-----------------------------------------------------------------------------------------------------------------------
Freeport-McMoRan Copper & Gold, Inc., Cl. B 80,000 2,660,000
-----------------------------------------------------------------------------------------------------------------------
Pohang Iron & Steel Co. Ltd., ADR 30,500 804,437
-----------------------------------------------------------------------------------------------------------------------
Sumitomo Metal Industries 400,000 1,232,192
-----------------------------------------------------------------------------------------------------------------------
Western Mining Corp. Holdings Ltd. 268,000 2,030,725
-------------
7,068,884
- ---------------------------------------------------------------------------------------------------------------------------------
PAPER - 2.3%
-----------------------------------------------------------------------------------------------------------------------
Aracruz Celulose SA, Sponsored ADR, Cl. B 157,700 1,419,300
-----------------------------------------------------------------------------------------------------------------------
AssiDoman AB 59,000 1,336,958
-----------------------------------------------------------------------------------------------------------------------
Champion International Corp. 50,000 2,206,250
-------------
4,962,508
- ---------------------------------------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS - 15.8%
- ---------------------------------------------------------------------------------------------------------------------------------
AUTOS & HOUSING - 2.0%
-----------------------------------------------------------------------------------------------------------------------
Corporacion GEO, SA de CV, Series B(2) 277,000 1,194,843
-----------------------------------------------------------------------------------------------------------------------
Michelin (CGDE), B Shares 14,990 754,348
-----------------------------------------------------------------------------------------------------------------------
Mitsubishi Motors Corp.(3) 200,000 1,678,075
-----------------------------------------------------------------------------------------------------------------------
Murakami Corp. 52,000 755,226
-------------
4,382,492
- ---------------------------------------------------------------------------------------------------------------------------------
LEISURE & ENTERTAINMENT - 4.8%
-----------------------------------------------------------------------------------------------------------------------
Amstrad PLC 510,000 1,230,012
-----------------------------------------------------------------------------------------------------------------------
China Hong Kong Photo Products Holdings, Ltd. 1,289,000 745,495
-----------------------------------------------------------------------------------------------------------------------
Flughafen Wien AG 8,300 569,140
-----------------------------------------------------------------------------------------------------------------------
Hagemeyer NV 16,216 1,113,112
-----------------------------------------------------------------------------------------------------------------------
Harrah's Entertainment, Inc.(2) 40,000 1,345,000
-----------------------------------------------------------------------------------------------------------------------
Heiwa Corp. 44,000 956,521
-----------------------------------------------------------------------------------------------------------------------
Hitachi Koki Co. 118,000 1,167,992
-----------------------------------------------------------------------------------------------------------------------
Nippon Electric Glass Co. Ltd.(3) 60,000 1,043,478
-----------------------------------------------------------------------------------------------------------------------
Telecom Italia Mobile SpA 830,000 1,147,987
-----------------------------------------------------------------------------------------------------------------------
Verenigd Bezit VNU 70,000 1,145,021
-------------
10,463,758
</TABLE>
5 Oppenheimer Quest Global Value Fund, Inc.
<PAGE>
<TABLE>
<CAPTION>
==========================================================================================================================
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
MARKET VALUE
SHARES SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
MEDIA - 1.4%
-----------------------------------------------------------------------------------------------------------------------
Benpres Holdings Corp., Sponsored GDR(2) 241,600 $ 2,053,600
-----------------------------------------------------------------------------------------------------------------------
Singapore Press Holdings Ltd. 55,000 1,030,001
-------------
3,083,601
- ---------------------------------------------------------------------------------------------------------------------------------
RETAIL: GENERAL - 4.0%
-----------------------------------------------------------------------------------------------------------------------
Bulgari SpA(2) 100,000 1,603,896
-----------------------------------------------------------------------------------------------------------------------
Cia Tecidos Norte de Minas, Preference 3,050,000 1,313,790
-----------------------------------------------------------------------------------------------------------------------
David Jones Ltd.(2)(3) 620,000 905,926
-----------------------------------------------------------------------------------------------------------------------
Siam Makro Public Co. Ltd. 404,000 2,026,460
-----------------------------------------------------------------------------------------------------------------------
Stockmann AB, B Free 13,000 641,734
-----------------------------------------------------------------------------------------------------------------------
Wacoal Corp. 63,000 880,018
-----------------------------------------------------------------------------------------------------------------------
Yue Yuen Industrial Holdings Ltd. 6,017,700 1,469,911
-------------
8,841,735
- ---------------------------------------------------------------------------------------------------------------------------------
RETAIL: SPECIALTY - 3.6%
-----------------------------------------------------------------------------------------------------------------------
adidas AG 25,000 1,875,700
-----------------------------------------------------------------------------------------------------------------------
Argyll Group PLC 368,360 2,025,337
-----------------------------------------------------------------------------------------------------------------------
Dixons Group PLC 227,000 1,763,893
-----------------------------------------------------------------------------------------------------------------------
Lotte Confectionery Co. 10,300 1,137,255
-----------------------------------------------------------------------------------------------------------------------
Maruetsu, Inc. 122,000 1,086,827
-------------
7,889,012
- ---------------------------------------------------------------------------------------------------------------------------------
CONSUMER NON-CYCLICALS - 7.7%
- ---------------------------------------------------------------------------------------------------------------------------------
BEVERAGES - 1.0%
-----------------------------------------------------------------------------------------------------------------------
Cia Cervejaria Brahma, Preference 2,355,000 1,403,672
-----------------------------------------------------------------------------------------------------------------------
Foster's Brewing Group Ltd. 477,000 868,367
-------------
2,272,039
- ---------------------------------------------------------------------------------------------------------------------------------
FOOD - 0.7%
-----------------------------------------------------------------------------------------------------------------------
Booker PLC 242,000 1,467,577
- ---------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE/DRUGS - 3.9%
-----------------------------------------------------------------------------------------------------------------------
Astra AB Free, Series A 18,000 822,457
-----------------------------------------------------------------------------------------------------------------------
Gedeon Richter, GDR 30,600 1,273,572
-----------------------------------------------------------------------------------------------------------------------
OY Tamro AB 156,000 856,013
-----------------------------------------------------------------------------------------------------------------------
Sandoz AG 2,340 2,425,535
-----------------------------------------------------------------------------------------------------------------------
Sankyo Co. Ltd. 52,000 1,231,452
-----------------------------------------------------------------------------------------------------------------------
Schering AG 7,000 526,571
-----------------------------------------------------------------------------------------------------------------------
Takeda Chemical Industries Ltd. 82,000 1,357,816
-------------
8,493,416
- ---------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE/SUPPLIES & SERVICES - 1.6%
-----------------------------------------------------------------------------------------------------------------------
Becton, Dickinson & Co. 25,000 2,125,000
-----------------------------------------------------------------------------------------------------------------------
Gehe AG (New)(2) 2,300 1,447,071
-------------
3,572,071
</TABLE>
6 Oppenheimer Quest Global Value Fund, Inc.
<PAGE>
<TABLE>
<CAPTION>
===========================================================================================================================
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
MARKET VALUE
SHARES SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
HOUSEHOLD GOODS - 0.5%
-----------------------------------------------------------------------------------------------------------------------
Antofagasta Holdings PLC 175,000 $ 1,004,265
- ---------------------------------------------------------------------------------------------------------------------------------
ENERGY - 2.2%
- ---------------------------------------------------------------------------------------------------------------------------------
OIL-INTEGRATED - 2.2%
-----------------------------------------------------------------------------------------------------------------------
Novus Petroleum Ltd.(3) 1,075,000 1,545,009
-----------------------------------------------------------------------------------------------------------------------
Repsol SA 49,000 1,672,290
-----------------------------------------------------------------------------------------------------------------------
Total SA, B Shares 22,366 1,614,632
-------------
4,831,931
- ---------------------------------------------------------------------------------------------------------------------------------
FINANCIAL - 24.9%
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
BANKS - 10.6%
-----------------------------------------------------------------------------------------------------------------------
Citicorp 100,000 8,400,000
-----------------------------------------------------------------------------------------------------------------------
Corporacion Bancaria de Espana SA 45,000 1,881,326
-----------------------------------------------------------------------------------------------------------------------
Daiwa Bank Ltd.(3) 317,000 2,331,313
-----------------------------------------------------------------------------------------------------------------------
Fokus Bank AS(2) 220,000 1,121,575
-----------------------------------------------------------------------------------------------------------------------
Liechtenstein Global Trust AG 2,400 1,188,283
-----------------------------------------------------------------------------------------------------------------------
Mellon Bank Corp. 35,000 1,999,375
-----------------------------------------------------------------------------------------------------------------------
Wells Fargo & Co. 26,000 6,266,000
-------------
23,187,872
- ---------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL - 9.3%
-----------------------------------------------------------------------------------------------------------------------
American Express Co. 80,000 3,660,000
-----------------------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp. 97,000 8,014,625
-----------------------------------------------------------------------------------------------------------------------
Internationale Nederlanden Groep NV 10,160 834,519
-----------------------------------------------------------------------------------------------------------------------
Nordbanken AB 53,000 948,984
-----------------------------------------------------------------------------------------------------------------------
Shohkoh Fund & Co. 7,500 1,810,823
-----------------------------------------------------------------------------------------------------------------------
Transamerica Corp. 61,000 4,941,000
-------------
20,209,951
- ---------------------------------------------------------------------------------------------------------------------------------
INSURANCE - 5.0%
-----------------------------------------------------------------------------------------------------------------------
ACE Ltd. 42,500 2,082,500
-----------------------------------------------------------------------------------------------------------------------
EXEL Ltd. 70,000 4,856,250
-----------------------------------------------------------------------------------------------------------------------
Fuji Fire & Marine Insurance Co. Ltd. 160,000 865,865
-----------------------------------------------------------------------------------------------------------------------
Koelnische Rueckversicherungs AG 2,675 1,847,630
-----------------------------------------------------------------------------------------------------------------------
Scor SA(3) 30,000 1,166,614
-------------
10,818,859
- ---------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL - 10.8%
- ---------------------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT - 1.0%
-----------------------------------------------------------------------------------------------------------------------
Mitsubishi Electric Corp. 195,000 1,334,875
-----------------------------------------------------------------------------------------------------------------------
Schneider SA(3) 18,400 850,239
-------------
2,185,114
</TABLE>
7 Oppenheimer Quest Global Value Fund, Inc.
<PAGE>
<TABLE>
<CAPTION>
==========================================================================================================================
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
MARKET VALUE
SHARES SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL MATERIALS - 3.3%
-----------------------------------------------------------------------------------------------------------------------
Aoki Marine Co. Ltd. 72,000 $ 492,877
-----------------------------------------------------------------------------------------------------------------------
Bridon PLC 524,856 976,855
-----------------------------------------------------------------------------------------------------------------------
Holderbank Financiere Glarus AG 2,415 1,851,421
-----------------------------------------------------------------------------------------------------------------------
Kinden Corp. 35,200 563,330
-----------------------------------------------------------------------------------------------------------------------
Kondor Wessels Groep NV 29,500 1,044,364
-----------------------------------------------------------------------------------------------------------------------
Maeda Corp.(3) 70,000 718,779
-----------------------------------------------------------------------------------------------------------------------
NBM-Amstelland NV 47,916 839,768
-----------------------------------------------------------------------------------------------------------------------
Thai Glass Industries Ltd. 148,000 701,449
-------------
7,188,843
- ---------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL SERVICES - 1.0%
-----------------------------------------------------------------------------------------------------------------------
Mutow Co. 81,000 621,924
-----------------------------------------------------------------------------------------------------------------------
Nagahori Corp. 65,000 483,441
-----------------------------------------------------------------------------------------------------------------------
Simree Co. Ltd.(2) 39,000 155,134
-----------------------------------------------------------------------------------------------------------------------
Toyo Corp. 77,000 982,978
-------------
2,243,477
- ---------------------------------------------------------------------------------------------------------------------------------
MANUFACTURING - 5.5%
-----------------------------------------------------------------------------------------------------------------------
Atlas Copco AB, A Shares(3) 115,000 2,136,012
-----------------------------------------------------------------------------------------------------------------------
IRO AB 62,500 589,728
-----------------------------------------------------------------------------------------------------------------------
Kalmar Industries 48,000 1,069,863
-----------------------------------------------------------------------------------------------------------------------
Kitano Construction Corp. 76,000 520,962
-----------------------------------------------------------------------------------------------------------------------
Schweizerische Industrie Gesellschaft Holding AG 350 816,146
-----------------------------------------------------------------------------------------------------------------------
Tenneco, Inc. 105,000 5,643,750
-----------------------------------------------------------------------------------------------------------------------
Vidrala SA 23,000 1,186,349
-------------
11,962,810
- ---------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY - 17.3%
- ---------------------------------------------------------------------------------------------------------------------------------
AEROSPACE/DEFENSE - 6.6%
-----------------------------------------------------------------------------------------------------------------------
Lockheed Martin Corp. 45,000 3,774,375
-----------------------------------------------------------------------------------------------------------------------
McDonnell Douglas Corp. 105,000 10,605,000
-------------
14,379,375
- ---------------------------------------------------------------------------------------------------------------------------------
COMPUTER HARDWARE - 0.8%
-----------------------------------------------------------------------------------------------------------------------
Canon, Inc. 86,000 1,686,586
- ---------------------------------------------------------------------------------------------------------------------------------
COMPUTER SOFTWARE - 0.9%
-----------------------------------------------------------------------------------------------------------------------
SAP AG 13,750 1,867,925
- ---------------------------------------------------------------------------------------------------------------------------------
ELECTRONICS - 7.5%
-----------------------------------------------------------------------------------------------------------------------
ABB AB, A Shares 17,400 1,796,925
-----------------------------------------------------------------------------------------------------------------------
Austria Mikro Systeme International AG 8,000 862,675
-----------------------------------------------------------------------------------------------------------------------
CAE, Inc. 141,500 1,222,989
-----------------------------------------------------------------------------------------------------------------------
Intel Corp. 70,000 5,285,000
-----------------------------------------------------------------------------------------------------------------------
Kyocera Corp. 40,000 2,738,204
-----------------------------------------------------------------------------------------------------------------------
Nokia AB 71,000 3,083,673
-----------------------------------------------------------------------------------------------------------------------
Omron Corp. 65,000 1,316,836
-------------
16,306,302
</TABLE>
8 Oppenheimer Quest Global Value Fund, Inc.
<PAGE>
<TABLE>
<CAPTION>
==========================================================================================================================
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
MARKET VALUE
SHARES SEE NOTE 1
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
TELECOMMUNICATIONS-TECHNOLOGY - 1.5%
-----------------------------------------------------------------------------------------------------------------------
Korea Mobile Telecommunications Corp. 290 $ 412,305
-----------------------------------------------------------------------------------------------------------------------
SPT Telecom AS(2) 16,100 1,938,881
-----------------------------------------------------------------------------------------------------------------------
Telecom Italia SpA(3) 550,000 930,357
-------------
3,281,543
- ---------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 2.7%
- ---------------------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 1.7%
-----------------------------------------------------------------------------------------------------------------------
Compagnie Generale des Eaux 10,600 1,132,382
-----------------------------------------------------------------------------------------------------------------------
Korea Electric Power Corp. 15,620 688,473
-----------------------------------------------------------------------------------------------------------------------
Kyushu Electric Power Co. 76,000 1,827,936
-------------
3,648,791
- ---------------------------------------------------------------------------------------------------------------------------------
GAS UTILITIES - 0.8%
-----------------------------------------------------------------------------------------------------------------------
Compania Sevillana de Electricidad 75,000 642,816
-----------------------------------------------------------------------------------------------------------------------
Marzotto & Figli SpA(3) 170,000 1,148,052
-------------
1,790,868
- ---------------------------------------------------------------------------------------------------------------------------------
TELEPHONE UTILITIES - 0.2%
-----------------------------------------------------------------------------------------------------------------------
Tele Danmark AS, B Shares 7,500 368,481
-------------
Total Common Stocks (Cost $156,939,528) 200,973,644
FACE
AMOUNT(1)
=================================================================================================================================
REPURCHASE AGREEMENTS - 3.9%
- ---------------------------------------------------------------------------------------------------------------------------------
Repurchase agreement with J.P. Morgan Securities, Inc., 5.30%, dated
5/31/96, to be repurchased at $8,603,798 on 6/3/96, collateralized by
U.S. Treasury Nts., 7.25%, 11/15/96, with a value of $8,815,280
(Cost $8,600,000) $8,600,000 8,600,000
-----------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $170,198,644) 98.5% 214,777,865
-----------------------------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 1.5 3,226,746
------ -------------
NET ASSETS 100.0% $218,004,611
====== =============
</TABLE>
9 Oppenheimer Quest Global Value Fund, Inc.
<PAGE>
<TABLE>
<CAPTION>
=======================================================================================================================
STATEMENT OF INVESTMENTS (Unaudited)(Continued)
- ---------------------------------------------------------------------------------------------------------------
Distribution of investments by country of issue, as a percentage of
total investments at value, is as follows:
COUNTRY MARKET VALUE PERCENT
-------------------------------------------------------------------------------------------------
<S> <C> <C>
United States $ 92,196,000 42.9%
Japan 34,822,614 16.2
Sweden 8,700,924 4.0
Great Britain 8,467,939 3.9
Germany 7,564,897 3.5
Switzerland 6,281,385 2.9
France 5,518,215 2.6
Spain 5,382,781 2.5
Australia 5,350,026 2.5
Netherlands 4,976,785 2.3
Italy 4,830,292 2.2
Finland 4,581,420 2.1
Brazil 4,478,292 2.1
Hong Kong 4,220,156 2.0
Korea, Republic of (South) 3,042,470 1.4
Thailand 2,727,909 1.3
Ecuador 2,053,600 1.0
Czech Republic 1,938,881 0.9
Austria 1,431,815 0.7
Hungary 1,273,572 0.6
Canada 1,222,989 0.6
Mexico 1,194,843 0.6
Norway 1,121,575 0.5
Singapore 1,030,004 0.5
Denmark 368,481 0.2
------------ ------
TOTAL $214,777,865 100.0%
============ ======
</TABLE>
1. Face amount is reported in U.S. Dollars, except for those denoted
in the following currency:
JPY - Japanese Yen
2. Non-income producing security.
3. Loaned security - See Note 6 of Notes to Financial Statements.
See accompanying Notes to Financial Statements.
10 Oppenheimer Quest Global Value Fund, Inc.
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES MAY 31, 1996 (UNAUDITED)
===========================================================================================================================
<S> <C> <C>
ASSETS Investments, at value (cost $170,198,644) - see accompanying statement $214,777,865
---------------------------------------------------------------------------------------------------
Collateral for securities loaned - Note 6 15,146,305
---------------------------------------------------------------------------------------------------
Unrealized appreciation on forward foreign currency
exchange contracts - Note 5 11,471
---------------------------------------------------------------------------------------------------
Cash-foreign currencies 2,632,756
---------------------------------------------------------------------------------------------------
Receivables:
Shares of capital stock sold 1,469,673
Interest and dividends 649,804
Investments sold 94,892
---------------------------------------------------------------------------------------------------
Other 38,227
-------------
Total assets 234,820,993
===========================================================================================================================
LIABILITIES Bank overdraft 127,079
---------------------------------------------------------------------------------------------------
Return of collateral for securities loaned - Note 6 15,146,305
---------------------------------------------------------------------------------------------------
Unrealized depreciation on forward foreign currency
exchange contracts - Note 5 592
---------------------------------------------------------------------------------------------------
Payables and other liabilities:
Shares of capital stock redeemed 1,235,109
Investments purchased 134,264
Distribution and service plan fees 87,989
Transfer and shareholder servicing agent fees 58,083
Other 26,961
-------------
Total liabilities 16,816,382
===========================================================================================================================
NET ASSETS $218,004,611
=============
===========================================================================================================================
COMPOSITION OF Par value of shares of capital stock $ 141,011
NET ASSETS ---------------------------------------------------------------------------------------------------
Additional paid-in capital 168,043,165
---------------------------------------------------------------------------------------------------
Undistributed net investment income 293,621
---------------------------------------------------------------------------------------------------
Accumulated net realized gain on investment transactions 4,936,176
---------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of
assets and liabilities denominated in foreign currencies 44,590,638
-------------
Net assets $218,004,611
=============
===========================================================================================================================
NET ASSET VALUE Class A Shares:
PER SHARE Net asset value and redemption price per share (based on
net assets of $178,899,017 and 11,545,795 shares of capital stock outstanding) $15.49
Maximum offering price per share (net asset value plus sales charge
of 5.75% of offering price) $16.44
---------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price and offering price per share (based on
net assets of $28,450,249 and 1,858,113 shares of capital stock outstanding) $15.31
---------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price and offering price per share (based on
net assets of $10,655,345 and 697,178 shares of capital stock outstanding) $15.28
See accompanying Notes to Financial Statements.
</TABLE>
11 Oppenheimer Quest Global Value Fund, Inc.
<PAGE>
<TABLE>
<CAPTION>
===================================================================================================
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED MAY 31, 1996 (UNAUDITED)
===========================================================================================================================
<S> <C> <C>
INVESTMENT INCOME Dividends (net of foreign withholding taxes of $175,036) $ 2,118,425
---------------------------------------------------------------------------------------------------
Interest (net of foreign withholding taxes of $410) 313,833
-------------
Total income 2,432,258
===========================================================================================================================
EXPENSES Management fees - Note 4 740,111
---------------------------------------------------------------------------------------------------
Distribution and service plan fees - Note 4:
Class A 419,788
Class B 109,325
Class C 35,651
---------------------------------------------------------------------------------------------------
Administration fees - Note 4 256,703
---------------------------------------------------------------------------------------------------
Custodian fees and expenses 128,100
---------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees - Note 4 122,610
---------------------------------------------------------------------------------------------------
Shareholder reports 25,406
---------------------------------------------------------------------------------------------------
Registration and filing fees:
Class A 15,419
Class B 1,993
Class C 648
---------------------------------------------------------------------------------------------------
Legal and auditing fees 15,999
---------------------------------------------------------------------------------------------------
Directors' fees and expenses 8,656
---------------------------------------------------------------------------------------------------
Other 6,619
------------
Total expenses 1,887,028
===========================================================================================================================
NET INVESTMENT INCOME 545,230
===========================================================================================================================
REALIZED AND Net realized gain (loss) on:
UNREALIZED GAIN (LOSS) Investments 6,251,946
Foreign currency transactions (1,024,953)
-------------
Net realized gain 5,226,993
---------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or
depreciation on:
Investments 14,318,459
Translation of assets and liabilities denominated in foreign currencies (1,892,204)
-------------
Net change 12,426,255
-------------
Net realized and unrealized gain 17,653,248
===========================================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 18,198,478
=============
</TABLE>
See accompanying Notes to Financial Statements.
12 Oppenheimer Quest Global Value Fund, Inc.
<PAGE>
<TABLE>
<CAPTION>
===================================================================================================
STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS ENDED YEAR ENDED
MAY 31, 1996 NOVEMBER 30,
(UNAUDITED) 1995
===========================================================================================================================
<S> <C> <C> <C>
OPERATIONS Net investment income $ 545,230 $ 1,205,062
---------------------------------------------------------------------------------------------------
Net realized gain 5,226,993 15,002,765
-------------------------------
Net change in unrealized appreciation or depreciation 12,426,255 14,748,932
-------------------------------
Net increase in net assets resulting
from operations 18,198,478 30,956,759
===========================================================================================================================
DIVIDENDS AND Dividends from net investment income:
DISTRIBUTIONS Class A (1,335,495) --
TO SHAREHOLDERS Class B (79,283) --
Class C (18,174) --
---------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (12,615,414) (12,831,716)
Class B (1,413,548) (896,679)
Class C (405,576) (212,761)
===========================================================================================================================
CAPITAL STOCK Net increase (decrease) in net assets resulting from
TRANSACTIONS capital stock transactions--Note 2:
Class A 15,627,818 (1,357,869)
Class B 10,964,317 5,163,787
Class C 6,035,490 1,497,862
===========================================================================================================================
NET ASSETS Total increase 34,958,613 22,319,383
---------------------------------------------------------------------------------------------------
Beginning of period 183,045,998 160,726,615
-------------------------------
End of period (including undistributed net investment
income of $293,621 and $1,181,343, respectively) $218,004,611 $183,045,998
============= =============
</TABLE>
See accompanying Notes to Financial Statements.
13 Oppenheimer Quest Global Value Fund, Inc.
<PAGE>
<TABLE>
<CAPTION>
============================================================================================================
FINANCIAL HIGHLIGHTS
CLASS A
--------------------------------------------------------------------------------------
SIX MONTHS
ENDED MAY 31, YEAR ENDED NOVEMBER 30,
1996 (UNAUDITED) 1995(2) 1994 1993 1992 1991
====================================================================================================================================
PER SHARE OPERATING DATA:
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $15.49 $14.16 $13.54 $12.30 $11.25 $10.57
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .04 .11 .01 -- .12 (.04)
Net realized and unrealized gain (loss) 1.33 2.45 1.10 2.26 .93 .85
- ------------------------------------------------------------------------------------------------------------------------------------
Total income (loss) from investment
operations 1.37 2.56 1.11 2.26 1.05 .81
- -----------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.13) -- -- (.12) -- (.05)
Distributions from net realized gain (1.24) (1.23) (.49) (.90) -- (.08)
- -----------------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions
to shareholders (1.37) (1.23) (.49) (1.02) -- (.13)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $15.49 $15.49 $14.16 $13.54 $12.30 $11.25
=======================================================================================
====================================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(4) 9.60% 19.75% 8.37% 19.72% 9.33% 7.72%
====================================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $178,899 $161,693 $148,044 $135,616 $111,207 $46,937
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $168,370 $154,288 $148,461 $125,158 $125,786 $56,467
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) 0.53%(6) 0.77% 0.05%(5) 0.04%(5) 0.72%(5) (0.27)%
Expenses 1.83%(6) 1.88% 1.92%(5) 1.76%(5) 1.76%(5) 2.09%
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(7) 29.4% 76.0% 70.0% 46.0% 62.0% 41.0%
Average brokerage commission rate(8) $0.0120 -- -- -- -- --
</TABLE>
1. For the period from September 2, 1993 (inception of offering) to November 30,
1993.
2. Based on average shares outstanding for the period.
3. Offering price.
4. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period, 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.
14 Oppenheimer Quest Global Value Fund, Inc.
<PAGE>
<TABLE>
<CAPTION>
=============================================================================================================
FINANCIAL HIGHLIGHTS (CONTINUED)
CLASS B CLASS C
--------------------------------------------- ----------------------------------
SIX MONTHS SIX MONTHS
ENDED MAY 31, ENDED MAY 31,
1996 YEAR ENDED NOVEMBER 30, 1996 YEAR ENDED NOVEMBER 30,
(UNAUDITED) 1995(2) 1994 1993(1) (UNAUDITED) 1995(2) 1994 1993(1)
====================================================================================================================================
PER SHARE OPERATING DATA:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $15.30 $14.07 $13.52 $13.75(3) $15.26 $14.06 $13.52 $13.75(3)
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .03 .02 (.06) (.02) .01 -- (.08) (.02)
Net realized and unrealized gain (loss) 1.29 2.44 1.10 (.21) 1.31 2.43 1.11 (.21)
- ------------------------------------------------------------------------------------------------------------------------------------
Total income (loss) from investment
operations 1.32 2.46 1.04 (.23) 1.32 2.43 1.03 (.23)
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends from net investment income (.07) -- -- -- (.06) -- --
Distributions from net realized gain (1.24) (1.23) (.49) -- (1.24) (1.23) (.49) --
- ------------------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions
to shareholders (1.31) (1.23) (.49) -- (1.30) (1.23) (.49) --
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $15.31 $15.30 $14.07 $13.52 $15.28 $15.26 $14.06 $13.52
===========================================================================================
====================================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(4) 9.32% 19.12% 7.84% (1.67)% 9.32% 18.90% 7.77% (1.67)%
====================================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $28,450 $16,980 $10,268 $1,676 $10,655 $4,373 $2,415 $244
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $21,925 $13,908 $ 5,982 $1,015 $ 7,164 $3,834 $1,150 $200
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) 0.69%(6) 0.16% (0.44)%(5) (0.76)%(5,6) 0.77%(6) 0.03% (0.59)%(5) (0.69)%(5,6)
Expenses 2.37%(6) 2.47% 2.50%(5) 2.26%(5,6) 2.40%(6) 2.60% 2.66%(5) 2.26%(5,6)
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(7) 29.4% 76.0% 70.0% 46.0% 29.4% 76.0% 70.0% 46.0%
Average brokerage commission rate(8) $0.0120 -- -- -- $0.0120 -- -- --
</TABLE>
5. During the periods noted above, the former Advisor voluntarily waived a
portion of its fees. If such waivers had not been in effect, the ratios of net
investment income (loss) to average net assets and the ratios of net operating
expenses to average net assets for Class A would have been 0.04% and 1.93%,
respectively, for the year ended November 30, 1994, (0.11)% and 1.91%,
respectively, for the year ended November 30, 1993, and 0.64% and 1.84%,
respectively, for the year ended November 30, 1992. The ratios of net investment
income to average net assets and the ratios of net operating expenses to average
net assets would have been (0.45)% and 2.51%, respectively, for Class B and
(0.59)% and 2.66%, respectively, for Class C, for the year ended November 30,
1994, and (0.82)% and 2.32%, annualized, respectively, for Class B and (0.78)%
and 2.35%, annualized, respectively, for Class C, for the period September 2,
1993 (inception of offering) to November 30, 1993.
6. Annualized.
7. The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities owned
during the period. Securities with a maturity or expiration date at the time of
acquisition of one year or less are excluded from the calculation. Purchases and
sales of investment securities (excluding short-term securities) for the period
ended May 31, 1996 were $66,965,480 and $55,423,927, respectively.
8. Total brokerage commissions paid on applicable purchases and sales of
portfolio securities for the period divided by the total number of related
shares purchased and sold.
See accompanying Notes to Financial Statements.
15 Oppenheimer Quest Global Value Fund, Inc.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
================================================================================
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Quest Global Value Fund, Inc. (the Fund), formerly named Quest
for Value Global Equity Fund, Inc., is registered under the Investment
Company Act of 1940, as amended, as a diversified, open-end management
investment company. The Fund's investment objective is to seek capital
appreciation through the pursuit of a global investment strategy primarily
involving equity securities. The Fund offers Class A, Class B and Class C
shares. Class A shares are sold with a front-end sales charge. Class B and
Class C shares may be subject to a contingent deferred sales charge. All
three classes of shares have identical rights to earnings, assets and
voting privileges, except that each class has its own distribution and/or
service plan, expenses directly attributable to a particular class and
exclusive voting rights with respect to matters affecting a single class.
Class B shares will automatically convert to Class A shares six years after
the date of purchase. The following is a summary of significant accounting
policies consistently followed by the Fund.
---------------------------------------------------------------------------
INVESTMENT VALUATION. Portfolio securities are valued at the close of the
New York Stock Exchange on each trading day. Listed and unlisted securities
for which such information is regularly reported are valued at the last
sale price of the day or, in the absence of sales, at values based on the
closing bid or asked price or the last sale price on the prior trading day.
Long-term and short-term "non-money market" debt securities are valued by a
portfolio pricing service approved by the Board of Directors. Such
securities which cannot be valued by the approved portfolio pricing service
are valued using dealer-supplied valuations provided the Manager is
satisfied that the firm rendering the quotes is reliable and that the
quotes reflect current market value, or are valued under consistently
applied procedures established by the Board of Directors to determine fair
value in good faith. Short-term "money market type" debt securities having
a remaining maturity of 60 days or less are valued at cost (or last
determined market value) adjusted for amortization to maturity of any
premium or discount. Forward foreign currency exchange contracts are valued
based on the closing prices of the forward currency contract rates in the
London foreign exchange markets on a daily basis as provided by a reliable
bank or dealer.
---------------------------------------------------------------------------
REPURCHASE AGREEMENT. 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.
---------------------------------------------------------------------------
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 closing rates of
exchange. Amounts related to the purchase and sale of securities and
investment income are translated at the rates of exchange prevailing 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.
---------------------------------------------------------------------------
ALLOCATION OF INCOME, EXPENSES, AND GAINS AND LOSSES. Income, expenses
(other than those attributable to a specific class) and 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.
16 Oppenheimer Quest Global Value Fund, Inc.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
================================================================================
1. SIGNIFICANT ACCOUNTING POLICIES(CONTINUED)
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.
---------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to shareholders
are recorded on the ex-dividend date.
---------------------------------------------------------------------------
CLASSIFICATION OF DISTRIBUTIONS TO SHAREHOLDERS. Net investment income
(loss) and net realized gain (loss) may differ for financial statement and
tax purposes primarily because of the recognition of certain foreign
currency gains (losses) as ordinary income (loss) for tax purposes.. The
character of the distributions made during the year from net investment
income or net realized gains may differ from their ultimate
characterization for federal income tax purposes. Also, due to timing of
dividend distributions, the fiscal year in which amounts are distributed
may differ from the year that the income or realized gain (loss) was
recorded by the Fund.
---------------------------------------------------------------------------
OTHER. Investment transactions are accounted for on the date the
investments are purchased or sold (trade date) and dividend income is
recorded on the ex-dividend date. Realized gains and losses on investments
and unrealized appreciation and depreciation are determined on an
identified cost basis, which is the same basis used for federal income tax
purposes.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of income and expenses during
the reporting period. Actual results could differ from those estimates.
================================================================================
2. CAPITAL STOCK
The Fund has authorized 100 million shares of $.01 par value capital stock
for each class of shares. Transactions in shares of capital stock were as
follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED MAY 31, 1996 YEAR ENDED NOVEMBER 30, 1995
----------------------------- ----------------------------
SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------------------------------------------------------------
Class A:
<S> <C> <C> <C> <C>
Sold 1,473,238 $22,028,371 2,425,486 $34,403,115
Dividends and distributions
reinvested 950,593 13,555,458 954,313 12,377,445
Redeemed (1,316,586) (19,956,011) (3,393,068) (48,138,429)
----------- ------------ ----------- ------------
Net increase (decrease) 1,107,245 $15,627,818 (13,269) $(1,357,869)
=========== ============ =========== ============
-------------------------------------------------------------------------------------------------------------
Class B:
Sold 759,029 $11,181,581 516,524 $ 7,279,837
Dividends and distributions
reinvested 99,398 1,404,498 64,705 832,752
Redeemed (110,162) (1,621,762) (201,052) (2,948,802)
----------- ------------ ----------- ------------
Net increase 748,265 $10,964,317 380,177 $ 5,163,787
=========== ============ =========== ============
-------------------------------------------------------------------------------------------------------------
Class C:
Sold 445,495 $ 6,558,872 204,655 $ 2,847,478
Dividends and distributions
reinvested 29,254 412,482 16,393 210,815
Redeemed (64,097) (935,864) (106,327) (1,560,431)
----------- ------------ ----------- ------------
Net increase 410,652 $ 6,035,490 114,721 $ 1,497,862
=========== ============ =========== ============
</TABLE>
3. UNREALIZED GAINS AND LOSSES ON INVESTMENTS
At May 31, 1996, net unrealized appreciation on investments of $44,582,590
was composed of gross appreciation of $49,172,886, and gross depreciation of
$4,590,296.
17 Oppenheimer Quest Global Value Fund, Inc.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
================================================================================
4. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Management fees paid to the Manager were in accordance with the investment
advisory agreement with the Fund which provides for a fee of 0.75% on the
first $400 million of average annual net assets, 0.70% on the next $400
million and 0.65% on net assets in excess of $800 million. The Manager has
agreed to reimburse the Fund if aggregate expenses (with specified
exceptions) exceed the most stringent applicable regulatory limit on Fund
expenses.
The Manager pays OpCap Advisors (the Sub-Advisor) based on the fee schedule
set forth in the Prospectus. For the period ended May 31, 1996, the Manager
paid $387,854 to the Sub-Advisor.
Administration fees are payable monthly to the Manager and are computed
on the Fund's average daily net assets at the annual rate of 0.25%.
For the six months ended May 31, 1996, commissions (sales charges paid by
investors) on sales of Class A shares totaled $202,812, of which $48,007 was
retained by OppenheimerFunds Distributor, Inc. (OFDI), a subsidiary of the
Manager, as general distributor, and by an affiliated broker/dealer. Sales
charges advanced to broker/dealers by OFDI on sales of the Fund's Class B
and Class C shares totaled $340,153 and $52,400, of which $7,724 and $2,468,
respectively, was paid to an affiliated broker/dealer. During the six months
ended May 31, 1996, OFDI received contingent deferred sales charges of
$1,872 upon redemption of Class B shares as reimbursement for sales
commissions advanced by OFDI at the time of sale of such shares.
OppenheimerFunds Services (OFS), a division of the Manager, is the transfer
and shareholder servicing agent for the Fund, and for other registered
investment companies. OFS's total costs of providing such services are
allocated ratably to these companies.
The Fund has adopted a Distribution and Service Plan for Class A shares to
compensate OFDI for a portion of its costs incurred in connection with the
personal service and maintenance of accounts that hold Class A shares. Under
the Plan, the Fund pays an annual asset-based sales charge to OFDI of 0.25%
per year on Class A shares. The Fund also pays a service fee to OFDI of
0.25% per year. Both fees are computed on the average annual net assets of
Class A shares of the Fund, determined as of the close of each regular
business day. OFDI uses all of the service fee and a portion of the
asset-based sales charge to compensate brokers, dealers, banks and other
financial institutions quarterly for providing personal service and
maintenance of accounts of their customers that hold Class A shares. OFDI
retains the balance of the asset-based sales charge to reimburse itself for
its other expenditures under the Plan. During the six months ended May 31,
1996, OFDI paid $130 to an affiliated broker/dealer as compensation for
Class A personal service and maintenance expenses.
The Fund has adopted compensation type Distribution and Service Plans for
Class B and Class C shares to compensate OFDI for its services and costs in
distributing Class B and Class C shares and servicing accounts. Under the
Plans, the Fund pays OFDI an annual asset-based sales charge of 0.75% per
year on Class B shares that are outstanding for 6 years or less and on Class
C shares, as compensation for sales commissions paid from its own resources
at the time of sale and associated financing costs. If the Plans are
terminated by the Fund, the Board of Directors may allow the Fund to
continue payments of the asset-based sales charge to OFDI for certain
expenses it incurred before the Plans were terminated. OFDI also receives a
service fee of 0.25% per year as compensation for costs incurred in
connection with the personal service and maintenance of accounts that hold
shares of the Fund, including amounts paid to brokers, dealers, banks and
other financial institutions. Both fees are computed on the average annual
net assets of Class B and Class C shares, determined as of the close of each
regular business day. During the six months ended May 31, 1996, OFDI
retained $91,968 and $19,373, respectively, as compensation for Class B and
Class C sales commissions and service fee advances, as well as financing
costs. At May 31, 1996, OFDI had incurred unreimbursed expenses of $322,561
for Class B and $67,600 for Class C.
18 Oppenheimer Quest Global Value Fund, Inc.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
================================================================================
5. FORWARD CONTRACTS
A forward foreign currency exchange contract (forward contract) is a
commitment to purchase or sell a foreign currency at a future date, at a
negotiated rate.
The Fund uses forward contracts to seek to manage foreign currency risks.
They may also be used to tactically shift portfolio currency risk. The Fund
generally enters into forward contracts as a hedge upon the purchase or sale
of a security denominated in a foreign currency. In addition, the Fund may
enter into such contracts as a hedge against changes in foreign currency
exchange rates on portfolio positions.
Forward contracts are valued based on the closing prices of the forward
currency contract rates in the London foreign exchange markets on a daily
basis as provided by a reliable bank or dealer. The Fund will realize a
gain or loss upon the closing or settlement of the forward transaction.
Securities held in segregated accounts to cover net exposure on outstanding
forward contracts are noted in the Statement of Investments where
applicable. Unrealized appreciation or depreciation on forward contracts is
reported in the Statement of Assets and Liabilities. Realized gains and
losses are reported with all other foreign currency gains and losses in the
Fund's Statement of Operations.
At May 31, 1996, the Fund had outstanding forward contracts to sell foreign
currencies as follows:
<TABLE>
<CAPTION>
Contract Amount Valuation as of Unrealized Unrealized
Contracts to Sell Exchange Date (000s) May 31, 1996 Appreciation Depreciation
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Spanish Peseta (ESP) 6/3/96 27,716 ESP $ 214,443 $ -- $543
Finnish Markka (FIM) 6/3/96 1,169 FIM 246,943 242 --
Italian Lira (ITL) 6/3/96 146,559 ITL 94,554 -- 31
Swedish Krone (SEK) 6/3/96 8,931 SEK 1,319,029 7,847 --
Thailand Baht (THB) 6/3/96 851 THB 33,611 -- 5
Brazilian Rial (BRR) 6/3/96 33 BRR 33,387 -- 13
British Pound Sterling (GBP) 6/3/96 2 GBP 2,761 63 --
Japanese Yen (JPY) 6/3/96 74,580 JPY 689,912 3,302 --
Netherlands Guilder (NLG) 6/3/96 15 NLG 8,995 17 --
---------- ------- ----
$2,643,635 $11,471 $592
========== ======= ====
</TABLE>
================================================================================
6. SECURITIES LOANED
The Fund has entered into a securities lending arrangement with the
custodian. Under the terms of the agreement, the Fund pays State Street Bank
and Trust Company 35% of the net interest earned as a fee for administering
the security lending program. The custodian is authorized to loan securities
on behalf of the Fund, against receipt of cash collateral at least equal in
value to the value of the securities loaned. The collateral is invested by
the custodian in money market instruments approved by the Manager. As of May
31, 1996, the Fund had on loan securities valued at $13,609,528. Cash of
$13,472,305 was received as collateral for the loans, and has been invested
in the approved instruments identified below. U.S. Treasury Bonds valued at
$1,674,000 were also received as collateral. The Fund bears the risk of any
deficiency in the amount of collateral available for return to a borrower
due to a loss in an approved investment.
<TABLE>
<CAPTION>
Valuation as of
Security May 31, 1996
---------------------------------------------------------------------------
<S> <C>
Federated Securities Corp. $ 6,949,696
Seven Series Prime Money Market Portfolio 6,497,170
U.S. Treasury Bonds, 6.125%-8.50%, 8/31/96-11/15/16 1,674,000
Dreyfus Government Cash Management 23,677
Provident: Temp Fund 1,748
Provident: T-Fund 9
Provident: FedFund 5
-----------
$15,146,305
===========
</TABLE>
19 Oppenheimer Quest Global Value Fund, Inc.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
================================================================================
7. SHAREHOLDER MEETING
On November 3, 1995, a special meeting of the shareholders of the Fund was
held at which the five Directors identified below were elected and the
approval of a new investment advisory agreement with OppenheimerFunds, Inc.
(Proposal 1), a new sub-advisory agreement between OppenheimerFunds, Inc.
and OpCap Advisors (Proposal 2), a new administration agreement with
OppenheimerFunds, Inc. (Proposal 3) and new Distribution and Service Plan
agreements with OppenheimerFunds Distributor, Inc. (Proposal 4) were
ratified. The following is a report of the votes cast (Class A, B and C
shares voted together unless otherwise indicated):
<TABLE>
<CAPTION>
NOMINEE/PROPOSAL FOR AGAINST WITHHELD/ABSTAIN TOTAL
--------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Paul Y. Clinton 7,608,731.763 0 349,548.643 7,958,280.406
Thomas W. Courtney 7,608,807.833 0 349,472.573 7,958,280.406
Lacy B. Herrmann 7,608,097.330 0 350,183.076 7,958,280.406
George Loft 7,578,344.927 0 379,935.479 7,958,280.406
Bridget A. Macaskill 7,608,059.428 0 350,220.978 7,958,280.406
Proposal No. 1 7,394,111.560 347,278.797 216,890.049 7,958,280.406
Proposal No. 2 7,308,873.671 343,716.923 305,689.812 7,958,280.406
Proposal No. 3 7,359,813.548 317,638.547 280,828.311 7,958,280.406
Proposal No. 4:
Class A 6,438,422.119 341,705.748 236,547.018 7,016,674.885
Class B 718,388.449 12,002.970 10,626.413 741,017.832
Class C 195,281.340 379.239 4,927.110 200,587.689
</TABLE>
20 Oppenheimer Quest Global Value Fund, Inc.
<PAGE>
=========================================
Oppenheimer Quest Global Value Fund, Inc.
Officers and Directors Bridget A. Macaskill, Chairman of the Board of
Directors and President
Paul Y. Clinton, Director
Thomas W. Courtney, Director
Lacy B. Herrmann, Director
George Loft, Director
Robert C. Doll, Jr., Vice President
George C. Bowen, Treasurer
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Andrew J. Donohue, Secretary
Robert G. Zack, Assistant Secretary
Investment Advisor OppenheimerFunds, Inc.
And Administrator
Sub-Advisor OpCap Advisors
Portfolio Managers Pierre Daviron
Richard J. Glasebrook, II
Distributor OppenheimerFunds Distributor, Inc.
Transfer and OppenheimerFunds Services
Shareholder Servicing
Agent
Custodian of Portfolio State Street Bank and Trust Company
Securities
Independent Price Waterhouse LLP
Accountants
Legal Counsel Gordon Altman Butowsky Weitzen Shalov & Wein
The financial statements included herein have been taken from the records
of the Fund without examination by the independent accountants.
This is a copy of a report to shareholders of Oppenheimer Quest Global
Value Fund, Inc. This report must be preceded or accompanied by a
Prospectus of Oppenheimer Quest Global Value Fund, Inc. For material
information concerning the Fund, see the Prospectus.
Shares of Oppenheimer funds are not deposits or obligations of any bank,
are not guaranteed by any bank, and are not insured by the FDIC or any
other agency, and involve investment risks, including possible loss of the
principal amount invested.
21 Oppenheimer Quest Global Value Fund, Inc.
<PAGE>
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OPPENHEIMERFUNDS FAMILY
- -----------------------
================================================================================
OppenheimerFunds offers over 50 funds designed to fit virtually
every investment goal. Whether you're investing for retirement,
your children's education or tax-free income, we have the funds
to help you seek your objective.
When you invest with OppenheimerFunds, you can feel comfor-
table knowing that you are investing with a respected financial
institution with over 35 years of experience in helping people
just like you reach their financial goals. And you're investing
with a leader in global, growth stock and flexible fixed-income
investments--with over 2.8 million shareholder accounts and more
than $50 billion under Oppenheimer's management and that of our
affiliates.
At OppenheimerFunds, we don't charge a fee to exchange
shares. And you can exchange shares easily by mail or by tele-
phone.(1) For more information on Oppenheimer funds, please con-
tact your financial advisor or call us at 1-800-525-7048 for a
prospectus. You may also write us at the address shown on the
back cover. As always, please read the prospectus carefully
before you invest.
================================================================================
STOCK FUNDS Global Emerging Growth Fund Growth Fund
Enterprise Fund(2) Global Fund
International Growth Fund Quest Global Value Fund
Discovery Fund Disciplined Value Fund
Quest Small Cap Value Fund Oppenheimer Fund
Gold & Special Minerals Fund Value Stock Fund
Target Fund Quest Value Fund
================================================================================
STOCK & BOND Main Street Income & Growth Fund Equity Income Fund
FUNDS Quest Opportunity Value Fund Disciplined Allocation Fund
Total Return Fund Asset Allocation Fund
Quest Growth & Income Value Fund Strategic Income & Growth Fund
Global Growth & Income Fund Bond Fund for Growth
================================================================================
BOND FUNDS International Bond Fund Bond Fund
High Yield Fund U.S. Government Trust
Champion Income Fund(3) Limited-Term Government Fund
Strategic Income Fund
================================================================================
TAX-EXEMPT California Tax-Exempt Fund(4) Insured Tax-Exempt Fund
FUNDS Florida Tax-Exempt Fund(4) Intermediate Tax-Exempt Fund
New Jersey Tax-Exempt Fund(4)
New York Tax-Exempt Fund(4) Rochester Division
Pennsylvania Tax-Exempt Fund(4) Rochester Fund Municipals
Tax-Free Bond Fund Limited-Term N.Y. Municipal Fund
================================================================================
MONEY MARKET Money Market Fund Cash Reserves
FUNDS(5)
================================================================================
LIFESPAN Growth Fund Income Fund
Balanced Fund
1. Exchange privileges are subject to change or termination.
Shares may be exchanged only for shares of the same class of
eligible funds.
2. Effective 4/1/96, the Fund is closed to investors.
3. On 10/1/95, the Fund's name changed from Oppenheimer
Champion High Yield.
4. Available only to investors in certain states.
5. An investment in money market funds is neither insured nor
guaranteed by the U.S. government and there can be no assurance
that a money market fund will be able to maintain a stable net
asset value of $1.00 per share.
Oppenheimer funds are distributed by OppenheimerFunds
Distributor, Inc., Two World Trade Center, New York, NY
10048-0203.
-c-Copyright 1996 OppenheimerFunds, Inc. All rights reserved.
22 Oppenheimer Quest Global Value Fund, Inc.
<PAGE>
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<PAGE>
[BACK COVER}
INFORMATION
GENERAL INFORMATION
Monday-Friday 8:30 a.m.-9 p.m. ET
Saturday 10 a.m.-2 p.m. ET
- --------------
1-800-525-7048
- --------------
TELEPHONE TRANSACTIONS
Monday-Friday 8:30 a.m.-8 p.m. ET
- --------------
1-800-852-8457
- --------------
PHONELINK
24 hours a day, automated
information and transactions
- --------------
1-800-533-3310
- --------------
TELECOMMUNICATIONS DEVICE
FOR THE DEAF (TDD)
Monday-Friday 8:30 a.m.-8 p.m. ET
- --------------
1-800-843-4461
- --------------
OPPENHEIMERFUNDS
INFORMATION HOTLINE
24 hours a day, timely and insightful
messages on the economy and
issues that affect your investments
- --------------
1-800-835-3104
- --------------
(NOTE: Need Specific Information on this line)RA0190.001.1295 February 28, 1996
- ------------------------------------------------------------------------------
"HOW MAY I HELP YOU?" [PHOTO]Jennifer Leonard
Jennifer Leonard, Customer Service Representative
OppenheimerFunds Services
As an Oppenheimer funds shareholder, you have some special privileges. Whether
it's automatic investment plans, informative newsletters and hotlines, or ready
account access, you can benefit from services designed to make investing simple.
And when you need help, our Customer Service Representatives are only a
toll-free phone call away. They can provide information about your account and
handle administrative requests. You can reach them at our General Information
number.
When you want to make a transaction, you can do it easily by calling our
toll-free Telephone Transactions number. And, by enrolling in AccountLink, a
convenient service that "links" your Oppenheimer funds accounts and your bank
checking or savings account, you can use the Telephone Transactions number to
make investments.
For added convenience, you can get automated information with
OppenheimerFunds PhoneLink service, available 24 hours a day, 7 days a week.
PhoneLink gives you access to a variety of fund, account, and market
information. Of course, you can always speak with a Customer Service
Representative during the General Information hours shown at the left.
You can count on us whenever you need assistance. That's why the
International Customer Service Association, an independent, nonprofit
organization made up of over 3,200 customer service management professionals
from around the country, honored the Oppenheimer fund's transfer agent,
OppenheimerFunds Services, with their Award of Excellence in 1993.
So call us today--we're here to help.
- ------------------------------------------------------------------------------
[LOGO] OPPENHEIMERFUNDS-R- --------------
OppenheimerFunds Distributor, Inc. Bulk Rate
P.O. Box 5270 U.S. Postage
Denver, CO 80217-5270 PAID
Permit No. 469
Denver, CO
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