<PAGE> 1
[PHOTO]
OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
Annual Report November 30, 1996
"We want
to go after
high
long-term
growth."
[OPPENHEIMERFUNDS LOGO]
<PAGE> 2
THIS FUND IS FOR PEOPLE WHO WANT TO TAKE ADVANTAGE OF THE SIGNIFICANT POTENTIAL
FOR LONG-TERM GROWTH OFFERED BY COMPANIES THROUGHOUT THE WORLD.
NEWS
BEAT THE AVERAGE
Cumulative Total Return for the
3-Year Period Ended 12/31/96:
Oppenheimer Quest
Global Value Fund, Inc.
Class A (at net asset value)(1)
45.21%
Lipper Global Average for 89 Global Funds for the 3-Year Period Ended 12/31/963
32.17%
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 designed to identify stocks
representing good value, the Fund seeks to provide long-term growth.
PERFORMANCE
Total returns for the 12 months ended 12/31/96 for Class A, B and C shares were
16.29%, 15.78% and 15.81%, respectively, without deducting sales charges.(1)
Your Fund's average annual total returns for Class A shares for the 1-
and 5-year periods ended 12/31/96 and since inception on 7/2/90 were 9.60%,
11.81% and 9.28%, respectively. For Class B shares, average annual total
returns for the 1-year period ended 12/31/96 and since inception on 9/1/93 were
10.78% and 11.76%, respectively. For Class C shares, average annual total
returns for the 1-year period ended 12/31/96 and since inception on 9/1/93 were
14.81% and 12.37%, respectively.(2)
OUTLOOK
"Our outlook is very positive. We plan to continue our investment style of
seeking companies that create value through a strong competitive edge,
strategic repositioning and reinvestment of cash flow to benefit shareholders."
Pierre Daviron and Richard Glasebrook
Portfolio Managers
November 30, 1996
Total returns include change in share price and reinvestment of dividends and
capital gains distributions in a hypothetical investment for the periods shown.
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. The Fund's
Sub-Adviser is OpCap Advisors (formerly Quest for Value Advisors, the Fund's
adviser until 11/22/95). Class B and C shares are subject to an annual .75%
asset-based sales charge and Class A shares are subject to an annual .25%
asset-based sales charge.
1. Includes change in net asset value per share without deducting any sales
charges. Such performance would have been lower if sales charges were taken
into account.
2. Class A returns include 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 results
would have been greater. Class B returns include the applicable contingent
deferred sales charge of 5% (1-year) and 3% (since inception). Class C returns
include the 1% contingent deferred sales charge for the 1-year result. An
explanation of the different total returns is in the Fund's prospectus.
3. Source: Lipper Analytical Services, 12/31/96. The Lipper average is shown
for comparative purposes only. Funds included in the index may have different
investment policies and risks than the Fund. Oppenheimer Quest Global Value
Fund, Inc. is characterized by Lipper as a global fund. Lipper performance is
based on total return and does not take sales charges into account.
2 Oppenheimer Quest Global Value Fund, Inc.
<PAGE> 3
[PHOTO]
Bridget A. Macaskill
President
Oppenheimer Quest
Global Value Fund, Inc.
DEAR SHAREHOLDER,
While most of the world's markets have lagged the amazing growth of domestic
stocks this year, we believe the time is right for them to catch up. This
belief, coupled with the strong though at times unpredictable performance of
the U.S. market over this past year, makes a compelling case for global funds,
which typically invest in a combination of domestic and foreign securities.
Over the past six months, the U.S. stock market has shown investors just
how resilient it can be. During this summer, the Dow declined nearly 10%, only
to soar to record highs in the fall. As a result, stock valuations are now
high, indicating that this bull market could be nearing the top of the
mountain. However, due to solid corporate profits, low inflation, and
stabilized interest rates, we remain optimistic that this market has enough
strength to advance through 1997.
While we've been pleased with earnings in the U.S. market, we believe now
is the time to focus on good opportunities abroad. Why? Analysts estimate
earnings in North America for 1996 will be up about 8% by the end of the year.
Across the rest of the globe, however, they predict corporate earnings will
surpass the U.S., with the potential for additional gains in 1997. In Europe,
in particular, we're seeing a trend in corporate restructuring, including
downsizing, outsourcing and spinoffs.
As for economic growth in developing countries, Brazil has emerged as a
dominant player in 1996, and we believe it has great potential for the coming
years. In general, the spending power of the population in developing countries
keeps growing. For the first time, a substantial number of individuals are
buying consumer products, including motorcycles, TVs and cars.
Additionally, there has been a turnaround in Japan. After a five-year
recession, the Japanese economy recently began to recover, producing numerous
investment opportunities. Furthermore, around the world, there has been a
significant move toward capitalism. Right now, the wealth of the world is built
on the combined spending power of 700 million people who control most of the
world's assets. However, as the 4.5 billion people who live in developing
countries become more capitalistic, we will undoubtedly see a chain reaction
which may revitalize a number of industries that cater to these new consumers.
Despite this pickup in global economic growth, inflation has remained
low. Moreover, many European governments are now concentrating on balancing
their budgets in anticipation of a European monetary union. So, it is
reasonable to expect global interest rates to remain low into 1997. All these
changes bode well for international stock markets and economies.
Investing abroad involves greater risk, including political and economic
uncertainties, currency rate fluctuations and liquidity restrictions, but over
time we expect that the long-term returns will more than compensate for
temporary risks. That said, we're confident that by diversifying your
investments throughout the world, you should be well-positioned to participate
in any economic environment.
Your portfolio managers discuss the outlook for your Fund in light of
these broad issues on the following pages. Thank you for your confidence in
OppenheimerFunds. We look forward to helping you reach your investment goals in
the future.
/s/ BRIDGET A. MACASKILL
Bridget A. Macaskill
November 21, 1996
3 Oppenheimer Quest Global Value Fund, Inc.
<PAGE> 4
Q + A
[PHOTO]
Pierre Daviron
Richard Glasebrook
Portfolio Managers
AN INTERVIEW WITH YOUR FUND'S MANAGERS.
HOW HAS THE FUND PERFORMED OVER THE PAST YEAR?
Oppenheimer Quest Global Value Fund, Inc. performed moderately during the
period. However, in spite of difficult markets in a few foreign countries, our
extensive research process enabled us to find many investments with
better-than-average performance that offered good opportunities.
WHAT CHARACTERISTICS DO YOU LOOK FOR WHEN EVALUATING STOCKS?
We look for strong businesses with effective management priced at modest
valuations. In determining what factors single out particular businesses, we
look for three specific traits: profitability, growth and stability. Of the
three, we feel the most important trait is profitability because companies that
are highly profitable tend to have larger percentages of free cash flow. This
excess cash can be put to use to benefit shareholders in a number of ways, such
as paying down debt, buying back stock, paying dividends, buying other
companies or investing in growth projects.
WHAT INVESTMENTS MADE POSITIVE CONTRIBUTIONS TO PERFORMANCE?
In this Fund, we use a bottom-up approach to investing, selecting companies
based on their individual merits rather than their country or sector. An
example of a company that performed well during the period is a Swiss
pharmaceutical firm that, through a recent merger, disposed of its non-core
assets and strengthened its cost savings. We also benefited from our holdings
in a company that designs and builds low-income housing in Mexico, specializing
in homes that are both well-built and affordable. And, because the Mexican
government owns the land and issues the mortgages, this company's risk level is
very low.
In addition, we continue to hold a large position in a German software
producer that performed extremely well over the period. This company is known
as one of the world leaders in client servers, a reputation strengthened by its
strategic positioning. Of course it's important to keep in mind that while
foreign investments offer attractive opportunities, they are subject to greater
expenses and risks, such as adverse currency fluctuations.(1)
DID ANY INVESTMENTS OR MARKET FACTORS HURT THE FUND?
In the early part of this year, we increased our position in Japan, hoping to
benefit as that country came out of a five-year recession. However, the
Japanese market as a whole has been disappointing because of political and
economic uncertainty regarding the strength of the economic recovery. We have
since gradually reduced our Japanese holdings and started to rebuild our
position with new, more profitable companies such as credit card businesses,
automobile manufacturers, pharmaceutical companies and securities brokerage
firms.
WHAT IS YOUR OUTLOOK FOR THE FUND?
Our outlook is very positive. We plan to continue our investment style of
seeking companies that create value through a strong competitive edge,
strategic repositioning and reinvestment of cash flow to benefit shareholders.
We believe our time-tested approach of picking stocks by conducting original
in-depth research to identify quality undervalued securities will continue to
be instrumental for future success.
(1) The Fund's portfolio is subject to change.
4 Oppenheimer Quest Global Value Fund, Inc.
<PAGE> 5
STATEMENT OF INVESTMENTS November 30, 1996
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT SEE NOTE 1
==============================================================================================================================
<S> <C> <C>
SHORT-TERM NOTES--6.0%
- ------------------------------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp., 5.33%, 12/2/96 (Cost $14,682,675) $14,685,000 $ 14,682,675
==============================================================================================================================
CONVERTIBLE CORPORATE BONDS AND NOTES--1.0%
- ------------------------------------------------------------------------------------------------------------------------------
MBL International Finance (Bermuda) Trust,
3% Exchangeable Gtd. Nts., 11/30/02 (Cost $2,483,838) 2,250,000 2,528,438
SHARES
==============================================================================================================================
COMMON STOCKS--93.3%
- ------------------------------------------------------------------------------------------------------------------------------
BASIC MATERIALS--10.9%
- ------------------------------------------------------------------------------------------------------------------------------
CHEMICALS--6.4%
Du Pont (E.I.) De Nemours & Co. 65,000 6,126,250
---------------------------------------------------------------------------------------------------------------------
Hercules, Inc. 80,000 3,880,000
---------------------------------------------------------------------------------------------------------------------
Monsanto Co. 90,000 3,577,500
---------------------------------------------------------------------------------------------------------------------
PT Tigaraksa Satria 224,000 351,045
---------------------------------------------------------------------------------------------------------------------
SGL Carbon AG 14,400 1,779,968
------------
15,714,763
- ------------------------------------------------------------------------------------------------------------------------------
METALS--2.4%
Freeport-McMoRan Copper & Gold, Inc., Cl. B 80,000 2,520,000
---------------------------------------------------------------------------------------------------------------------
Sumitomo Metal Industries 400,000 1,065,026
---------------------------------------------------------------------------------------------------------------------
Toho Titanium Co.(1)(2) 36,000 597,891
---------------------------------------------------------------------------------------------------------------------
Western Mining Corp. Holdings Ltd.(2) 268,000 1,702,453
------------
5,885,370
- ------------------------------------------------------------------------------------------------------------------------------
PAPER--2.1%
Aracruz Celulose SA, Sponsored ADR, Cl. B 157,700 1,222,175
---------------------------------------------------------------------------------------------------------------------
AssiDoman AB 59,000 1,520,584
---------------------------------------------------------------------------------------------------------------------
Champion International Corp. 60,000 2,580,000
------------
5,322,759
- ------------------------------------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS--15.3%
- ------------------------------------------------------------------------------------------------------------------------------
AUTOS & HOUSING--2.9%
Calsonic Corp. 57,000 386,678
---------------------------------------------------------------------------------------------------------------------
Corporacion GEO, SA de CV, Series B(1) 205,000 1,037,394
---------------------------------------------------------------------------------------------------------------------
Honda Motor Co. 30,000 885,764
---------------------------------------------------------------------------------------------------------------------
LucasVarity plc(1) 384,886 1,649,148
---------------------------------------------------------------------------------------------------------------------
Michelin (CGDE), B Shares 21,143 1,084,550
---------------------------------------------------------------------------------------------------------------------
Mitsubishi Motors Corp.(2) 140,000 1,096,133
---------------------------------------------------------------------------------------------------------------------
Murakami Corp. 72,000 955,360
------------
7,095,027
- ------------------------------------------------------------------------------------------------------------------------------
LEISURE & ENTERTAINMENT--3.1%
AMR Corp.(1) 20,000 1,825,000
---------------------------------------------------------------------------------------------------------------------
Amstrad plc 510,000 1,311,140
---------------------------------------------------------------------------------------------------------------------
China Hong Kong Photo Products Holdings Ltd. 2,139,000 740,018
---------------------------------------------------------------------------------------------------------------------
Flughafen Wien AG 12,300 562,448
---------------------------------------------------------------------------------------------------------------------
Hagemeyer NV 16,216 1,287,259
---------------------------------------------------------------------------------------------------------------------
Verenigd Bezit VNU 90,000 1,836,978
------------
7,562,843
</TABLE>
5 Oppenheimer Quest Global Value Fund, Inc.
<PAGE> 6
STATEMENT OF INVESTMENTS (Continued)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
MEDIA--3.4%
Benpres Holdings Corp., Sponsored GDR(1) 241,600 $ 1,812,000
---------------------------------------------------------------------------------------------------------------------
Singapore Press Holdings Ltd. 87,000 1,643,935
---------------------------------------------------------------------------------------------------------------------
Tele-Communications, Inc. (New), TCI Group, Series A(1) 300,000 4,050,000
---------------------------------------------------------------------------------------------------------------------
Thompson Corp. 35,000 788,209
------------
8,294,144
- ------------------------------------------------------------------------------------------------------------------------------
RETAIL: GENERAL--3.0%
Bulgari SpA 100,000 1,851,583
---------------------------------------------------------------------------------------------------------------------
Cia Tecidos Norte de Minas, Preference 3,050,000 1,048,131
---------------------------------------------------------------------------------------------------------------------
Credit Saison Co. Ltd.(2) 29,000 665,114
---------------------------------------------------------------------------------------------------------------------
Siam Makro Public Co. Ltd. 404,000 1,755,800
---------------------------------------------------------------------------------------------------------------------
Yue Yuen Industrial Holdings Ltd. 6,017,700 2,023,538
------------
7,344,166
- ------------------------------------------------------------------------------------------------------------------------------
RETAIL: SPECIALTY--2.9%
adidas AG(2) 19,000 1,656,359
---------------------------------------------------------------------------------------------------------------------
Dixons Group plc 230,098 2,213,481
---------------------------------------------------------------------------------------------------------------------
Maruetsu, Inc. 122,000 890,878
---------------------------------------------------------------------------------------------------------------------
Safeway plc 377,558 2,467,861
------------
7,228,579
- ------------------------------------------------------------------------------------------------------------------------------
CONSUMER NON-CYCLICALS--8.0%
- ------------------------------------------------------------------------------------------------------------------------------
BEVERAGES--0.9%
Cho Sun Brewery Co. Ltd.(1) 3,020 80,150
---------------------------------------------------------------------------------------------------------------------
Cia Cervejaria Brahma, Preference 2,355,000 1,392,899
---------------------------------------------------------------------------------------------------------------------
Mikuni Coca-Cola Bottling Ltd. 53,000 707,908
------------
2,180,957
- ------------------------------------------------------------------------------------------------------------------------------
FOOD--0.3%
Bompreco Supermercados do Nordeste(1) 50,000 868,750
- ------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE/DRUGS--4.7%
Ares-Serono Group, Cl. B 2,000 1,870,499
---------------------------------------------------------------------------------------------------------------------
Astra AB Free, Series A 36,000 1,726,914
---------------------------------------------------------------------------------------------------------------------
Eisai Co. Ltd.(2) 43,000 846,397
---------------------------------------------------------------------------------------------------------------------
Gedeon Richter, GDR 20,500 1,127,500
---------------------------------------------------------------------------------------------------------------------
OY Tamro AB 156,000 1,123,555
---------------------------------------------------------------------------------------------------------------------
Sandoz AG 2,340 2,723,926
---------------------------------------------------------------------------------------------------------------------
Sankyo Co. Ltd. 32,000 857,645
---------------------------------------------------------------------------------------------------------------------
Schering AG(2) 7,000 572,439
---------------------------------------------------------------------------------------------------------------------
Takeda Chemical Industries Ltd. 45,000 881,810
------------
11,730,685
- ------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE/SUPPLIES &
SERVICES--1.7%
Becton, Dickinson & Co. 65,000 2,730,000
---------------------------------------------------------------------------------------------------------------------
Gehe AG 23,000 1,421,503
------------
4,151,503
</TABLE>
6 Oppenheimer Quest Global Value Fund, Inc.
<PAGE> 7
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
HOUSEHOLD GOODS--0.4%
Antofagasta Holdings plc 175,000 $ 1,083,585
- ------------------------------------------------------------------------------------------------------------------------------
ENERGY--2.3%
- ------------------------------------------------------------------------------------------------------------------------------
Novus Petroleum Ltd. 700,423 1,340,523
---------------------------------------------------------------------------------------------------------------------
Repsol SA 49,000 1,814,324
---------------------------------------------------------------------------------------------------------------------
Suncor, Inc. 18,000 786,688
---------------------------------------------------------------------------------------------------------------------
Total SA, B Shares 22,868 1,828,954
------------
5,770,489
- ------------------------------------------------------------------------------------------------------------------------------
FINANCIAL--26.2%
- ------------------------------------------------------------------------------------------------------------------------------
BANKS--11.5%
Citicorp 100,000 10,925,000
---------------------------------------------------------------------------------------------------------------------
Corporacion Bancaria de Espana SA 45,000 1,754,826
---------------------------------------------------------------------------------------------------------------------
CS Holding AG 17,000 1,811,182
---------------------------------------------------------------------------------------------------------------------
Daiwa Bank Ltd.(2) 317,000 1,838,488
---------------------------------------------------------------------------------------------------------------------
Fokus Bank AS 240,000 1,496,427
---------------------------------------------------------------------------------------------------------------------
Liechtenstein Global Trust AG 2,400 1,208,914
---------------------------------------------------------------------------------------------------------------------
Lloyds TSB Group plc 271,000 1,876,091
---------------------------------------------------------------------------------------------------------------------
Wells Fargo & Co. 26,000 7,400,250
------------
28,311,178
- ------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL--9.5%
American Express Co. 50,000 2,612,500
---------------------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp. 97,000 11,082,250
---------------------------------------------------------------------------------------------------------------------
ING Groep NV 25,790 903,248
---------------------------------------------------------------------------------------------------------------------
Manhattan Card Co. Ltd. 262,000 135,540
---------------------------------------------------------------------------------------------------------------------
Nichiei Co. Ltd. 10,000 702,109
---------------------------------------------------------------------------------------------------------------------
Nikko Securities Co. Ltd. 57,000 530,931
---------------------------------------------------------------------------------------------------------------------
Nordbanken AB 46,000 1,302,039
---------------------------------------------------------------------------------------------------------------------
Shohkoh Fund & Co. 6,000 1,318,102
---------------------------------------------------------------------------------------------------------------------
Transamerica Corp. 61,000 4,841,875
------------
23,428,594
- ------------------------------------------------------------------------------------------------------------------------------
INSURANCE--5.2%
ACE Ltd. 42,500 2,459,688
---------------------------------------------------------------------------------------------------------------------
AXA SA 22,500 1,352,334
---------------------------------------------------------------------------------------------------------------------
EXEL Ltd. 140,000 5,302,500
---------------------------------------------------------------------------------------------------------------------
Fuji Fire & Marine Insurance Co. Ltd.(2) 160,000 708,611
---------------------------------------------------------------------------------------------------------------------
Koelnische Rueckversicherungs AG 2,675 2,044,833
---------------------------------------------------------------------------------------------------------------------
Scor(2) 30,000 1,059,809
------------
12,927,775
- ------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL--11.8%
- ------------------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--1.8%
Inaba Denkisangyo Co. 28,000 622,495
---------------------------------------------------------------------------------------------------------------------
Mitsubishi Electric Corp. 195,000 1,122,363
---------------------------------------------------------------------------------------------------------------------
Schneider SA 18,690 889,295
---------------------------------------------------------------------------------------------------------------------
Siebe plc 120,000 1,911,512
------------
4,545,665
</TABLE>
7 Oppenheimer Quest Global Value Fund, Inc.
<PAGE> 8
STATEMENT OF INVESTMENTS (Continued)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL MATERIALS--2.0%
Aoki Marine Co. Ltd. 72,000 $ 392,267
---------------------------------------------------------------------------------------------------------------------
Bridon plc 524,856 903,965
---------------------------------------------------------------------------------------------------------------------
Holderbank Financiere Glarus AG 2,100 1,517,362
---------------------------------------------------------------------------------------------------------------------
Kinden Corp. 35,200 491,810
---------------------------------------------------------------------------------------------------------------------
Kondor Wessels Groep NV 14,400 558,608
---------------------------------------------------------------------------------------------------------------------
Maeda Corp.(2) 70,000 544,991
---------------------------------------------------------------------------------------------------------------------
NBM-Amstelland NV 28,001 579,643
------------
4,988,646
- ------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL SERVICES--1.6%
Donnelley (R.R.) & Sons Co. 80,000 2,680,000
---------------------------------------------------------------------------------------------------------------------
Nagahori Corp.(2) 65,000 371,836
---------------------------------------------------------------------------------------------------------------------
Toyo Corp. 77,000 791,652
------------
3,843,488
- ------------------------------------------------------------------------------------------------------------------------------
MANUFACTURING--6.4%
Aeon Credit Service Co. Ltd. 12,000 682,249
---------------------------------------------------------------------------------------------------------------------
Alfa SA, Cl. A 225,000 1,004,650
---------------------------------------------------------------------------------------------------------------------
Atlas Copco AB, A Shares 115,000 2,638,341
---------------------------------------------------------------------------------------------------------------------
Cofinec SA, Sponsored GDR(1) 14,000 374,500
---------------------------------------------------------------------------------------------------------------------
IRO AB 33,500 386,775
---------------------------------------------------------------------------------------------------------------------
Japan Synthetic Rubber Co. 109,000 726,028
---------------------------------------------------------------------------------------------------------------------
Kalmar Industries 48,000 811,614
---------------------------------------------------------------------------------------------------------------------
Schweizerische Industrie Gesellschaft Holding AG 350 843,878
---------------------------------------------------------------------------------------------------------------------
Sodick Co.(1) 100,000 922,671
---------------------------------------------------------------------------------------------------------------------
Tenneco, Inc. 120,000 6,120,000
---------------------------------------------------------------------------------------------------------------------
Vidrala SA 23,000 1,403,089
------------
15,913,795
- ------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY--16.7%
- ------------------------------------------------------------------------------------------------------------------------------
AEROSPACE/DEFENSE--5.8%
Lockheed Martin Corp. 35,000 3,171,875
---------------------------------------------------------------------------------------------------------------------
McDonnell Douglas Corp. 210,000 11,103,750
------------
14,275,625
- ------------------------------------------------------------------------------------------------------------------------------
COMPUTER HARDWARE--1.0%
Canon, Inc. 116,000 2,446,396
- ------------------------------------------------------------------------------------------------------------------------------
COMPUTER SOFTWARE--1.1%
Konami Co. Ltd.(2) 23,000 786,204
---------------------------------------------------------------------------------------------------------------------
SAP AG 13,750 1,896,421
------------
2,682,625
- ------------------------------------------------------------------------------------------------------------------------------
ELECTRONICS--8.2%
ABB AB, A Shares 17,400 2,014,108
---------------------------------------------------------------------------------------------------------------------
CAE, Inc. 170,000 1,305,581
---------------------------------------------------------------------------------------------------------------------
Intel Corp. 60,000 7,612,500
---------------------------------------------------------------------------------------------------------------------
Kyocera Corp. 40,000 2,572,934
---------------------------------------------------------------------------------------------------------------------
Nokia AB 71,000 3,935,329
---------------------------------------------------------------------------------------------------------------------
Omron Corp. 65,000 1,239,455
---------------------------------------------------------------------------------------------------------------------
Rohm Co. 11,000 676,625
---------------------------------------------------------------------------------------------------------------------
Unican Security Systems Ltd., Cl. B 44,000 914,166
------------
20,270,698
</TABLE>
8 Oppenheimer Quest Global Value Fund, Inc.
<PAGE> 9
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
TELECOMMUNICATIONS-
TECHNOLOGY--0.6%
Korea Mobile Telecommunications Corp. 290 $ 290,826
---------------------------------------------------------------------------------------------------------------------
SPT Telecom AS(1) 10,000 1,130,068
------------
1,420,894
- ------------------------------------------------------------------------------------------------------------------------------
UTILITIES--2.1%
- ------------------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES--1.2%
Cie Generale des Eaux 10,808 1,332,727
---------------------------------------------------------------------------------------------------------------------
Kyushu Electric Power Co. 78,000 1,631,282
------------
2,964,009
- ------------------------------------------------------------------------------------------------------------------------------
TELEPHONE UTILITIES--0.9%
Telecom Italia Mobile SpA 830,000 1,106,725
---------------------------------------------------------------------------------------------------------------------
Telecom Italia SpA 550,000 1,011,109
------------
2,117,834
------------
Total Common Stocks (Cost $173,745,694) 230,370,842
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $190,912,207) 100.3% 247,581,955
------------ ------------
LIABILITIES IN EXCESS OF OTHER ASSETS (0.3) (798,235)
------------ ------------
NET ASSETS 100.0% $246,783,720
============ ============
</TABLE>
9 Oppenheimer Quest Global Value Fund, Inc.
<PAGE> 10
STATEMENT OF INVESTMENTS (Continued)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
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 $117,283,612 47.4%
- -----------------------------------------------------------------------------------------------------------------------------
Japan 30,956,106 12.5
- -----------------------------------------------------------------------------------------------------------------------------
Great Britain 13,416,783 5.4
- -----------------------------------------------------------------------------------------------------------------------------
Sweden 10,400,375 4.2
- -----------------------------------------------------------------------------------------------------------------------------
Switzerland 9,975,759 4.0
- -----------------------------------------------------------------------------------------------------------------------------
Germany 9,371,524 3.8
- -----------------------------------------------------------------------------------------------------------------------------
France 7,922,169 3.2
- -----------------------------------------------------------------------------------------------------------------------------
The Netherlands 5,165,735 2.1
- -----------------------------------------------------------------------------------------------------------------------------
Finland 5,058,884 2.0
- -----------------------------------------------------------------------------------------------------------------------------
Spain 4,972,238 2.0
- -----------------------------------------------------------------------------------------------------------------------------
Brazil 4,531,955 1.8
- -----------------------------------------------------------------------------------------------------------------------------
Italy 3,969,417 1.6
- -----------------------------------------------------------------------------------------------------------------------------
Canada 3,794,643 1.5
- -----------------------------------------------------------------------------------------------------------------------------
Australia 3,042,976 1.2
- -----------------------------------------------------------------------------------------------------------------------------
Hong Kong 2,899,096 1.2
- -----------------------------------------------------------------------------------------------------------------------------
Supranational 2,528,438 1.0
- -----------------------------------------------------------------------------------------------------------------------------
Mexico 2,042,044 0.8
- -----------------------------------------------------------------------------------------------------------------------------
Ecuador 1,812,000 0.7
- -----------------------------------------------------------------------------------------------------------------------------
Thailand 1,755,800 0.7
- -----------------------------------------------------------------------------------------------------------------------------
Singapore 1,643,938 0.7
- -----------------------------------------------------------------------------------------------------------------------------
Norway 1,496,427 0.6
- -----------------------------------------------------------------------------------------------------------------------------
Czech Republic 1,130,068 0.5
- -----------------------------------------------------------------------------------------------------------------------------
Hungary 1,127,500 0.5
- -----------------------------------------------------------------------------------------------------------------------------
Austria 562,448 0.2
- -----------------------------------------------------------------------------------------------------------------------------
Korea, Republic of (South) 370,975 0.2
- -----------------------------------------------------------------------------------------------------------------------------
Indonesia 351,045 0.2
- -----------------------------------------------------------------------------------------------------------------------------
Total $247,581,955 100.0%
============ ======
</TABLE>
1. Non-income producing security.
2. Loaned security--See Note 6 of Notes to Financial Statements.
See accompanying Notes to Financial Statements.
10 Oppenheimer Quest Global Value Fund, Inc.
<PAGE> 11
STATEMENT OF ASSETS AND LIABILITIES November 30, 1996
<TABLE>
==============================================================================================================================
<S> <C>
ASSETS
Investments, at value (cost $190,912,207)--see accompanying statement $247,581,955
----------------------------------------------------------------------------------------------------------------------
Collateral for securities loaned--Note 6 11,244,569
----------------------------------------------------------------------------------------------------------------------
Receivables:
Investments sold 1,036,427
Shares of capital stock sold 388,133
Interest and dividends 331,645
----------------------------------------------------------------------------------------------------------------------
Other 44,487
------------
Total assets 260,627,216
==============================================================================================================================
LIABILITIES
Bank overdraft 243,086
----------------------------------------------------------------------------------------------------------------------
Return of collateral for securities loaned--Note 6 11,244,569
----------------------------------------------------------------------------------------------------------------------
Unrealized depreciation on forward foreign currency exchange contracts--Note 5 445
----------------------------------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 1,833,630
Shares of capital stock redeemed 272,950
Distribution and service plan fees 99,332
Shareholder reports 90,556
Transfer and shareholder servicing agent fees 6,057
Directors' fees 5,098
Other 47,773
------------
Total liabilities 13,843,496
==============================================================================================================================
NET ASSETS $246,783,720
============
==============================================================================================================================
COMPOSITION OF
NET ASSETS
Par value of shares of capital stock $ 150,214
----------------------------------------------------------------------------------------------------------------------
Additional paid-in capital 182,178,894
----------------------------------------------------------------------------------------------------------------------
Overdistributed net investment income (147,118)
----------------------------------------------------------------------------------------------------------------------
Accumulated net realized gain on investment transactions 7,941,027
----------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of assets and liabilities
denominated in foreign currencies 56,660,703
------------
Net assets $246,783,720
============
==============================================================================================================================
NET ASSET VALUE
PER SHARE
Class A Shares:
Net asset value and redemption price per share (based on net assets of $191,999,854
and 11,648,467 shares of capital stock outstanding) $16.48
Maximum offering price per share (net asset value plus sales charge of 5.75% of offering price) $17.49
----------------------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price and offering price per share (based on net assets
of $38,634,382 and 2,377,524 shares of capital stock outstanding) $16.25
----------------------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price and offering price per share (based on net assets
of $16,149,484 and 995,458 shares of capital stock outstanding) $16.22
</TABLE>
See accompanying Notes to Financial Statements.
11 Oppenheimer Quest Global Value Fund, Inc.
<PAGE> 12
STATEMENT OF OPERATIONS For the Year Ended November 30, 1996
<TABLE>
============================================================================================================================
<S> <C>
INVESTMENT INCOME
Dividends (net of foreign withholding taxes of $268,593) $3,730,645
---------------------------------------------------------------------------------------------------------------------
Interest (net of foreign withholding taxes of $410) 720,147
---------------------------------------------------------------------------------------------------------------------
Lending fees--Note 6 57,587
-----------
Total income 4,508,379
============================================================================================================================
EXPENSES
Management fees--Note 4 1,591,600
---------------------------------------------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 872,871
Class B 272,933
Class C 101,197
---------------------------------------------------------------------------------------------------------------------
Administrative fees--Note 4 540,533
---------------------------------------------------------------------------------------------------------------------
Custodian fees and expenses 241,266
---------------------------------------------------------------------------------------------------------------------
Shareholder reports 192,410
---------------------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 168,484
---------------------------------------------------------------------------------------------------------------------
Registration and filing fees:
Class A 79,212
Class B 14,356
Class C 5,728
---------------------------------------------------------------------------------------------------------------------
Legal and auditing fees 57,472
---------------------------------------------------------------------------------------------------------------------
Directors' fees and expenses 26,272
---------------------------------------------------------------------------------------------------------------------
Other 33,540
-----------
Total expenses 4,197,874
============================================================================================================================
NET INVESTMENT INCOME 310,505
============================================================================================================================
REALIZED AND UNREALIZED
GAIN (LOSS)
Net realized gain (loss) on:
Investments 8,221,005
Foreign currency transactions (249,904)
-----------
Net realized gain 7,971,101
---------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments 26,311,881
Translation of assets and liabilities denominated in foreign currencies (1,804,682)
-----------
Net change 24,507,199
-----------
Net realized and unrealized gain 32,478,300
============================================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $32,788,805
===========
</TABLE>
See accompanying Notes to Financial Statements.
12 Oppenheimer Quest Global Value Fund, Inc.
<PAGE> 13
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED NOVEMBER 30,
1996 1995
===============================================================================================================================
<S> <C> <C>
OPERATIONS
Net investment income $ 310,505 $ 1,205,062
------------------------------------------------------------------------------------------------------------------------
Net realized gain 7,971,101 15,002,765
------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation 24,507,199 14,748,932
------------ ------------
Net increase in net assets resulting from operations 32,788,805 30,956,759
===============================================================================================================================
DIVIDENDS AND
DISTRIBUTIONS TO
SHAREHOLDERS
Dividends from net investment income:
Class A (1,335,495) --
Class B (79,285) --
Class C (18,174) --
------------------------------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (12,615,414) (12,831,716)
Class B (1,413,588) (896,679)
Class C (405,576) (212,761)
===============================================================================================================================
CAPITAL STOCK
TRANSACTIONS
Net increase (decrease) in net assets resulting from capital stock
transactions--Note 2:
Class A 17,211,738 (1,357,869)
Class B 18,976,456 5,163,787
Class C 10,628,255 1,497,862
===============================================================================================================================
NET ASSETS
Total increase 63,737,722 22,319,383
------------------------------------------------------------------------------------------------------------------------
Beginning of period 183,045,998 160,726,615
------------ ------------
End of period [including undistributed (overdistributed) net
investment income of $(147,118) and $1,181,343, respectively] $246,783,720 $183,045,998
============ ============
</TABLE>
See accompanying Notes to Financial Statements.
13 Oppenheimer Quest Global Value Fund, Inc.
<PAGE> 14
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A
------------------------------------------------------------------
YEAR ENDED NOVEMBER 30,
1996 1995(2) 1994 1993 1992
<S> <C> <C> <C> <C> <C>
========================================================================================================================
PER SHARE OPERATING DATA:
Net asset value, beginning of period $ 15.49 $ 14.16 $ 13.54 $ 12.30 $ 11.25
- ------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .03 .11(3) .01(3) --(3) .12(3)
Net realized and unrealized gain (loss) 2.33 2.45 1.10 2.26 .93
--------- --------- -------- -------- ---------
Total income (loss) from investment operations 2.36 2.56 1.11 2.26 1.05
- ------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.13) -- -- (.12) --
Distributions from net realized gain (1.24) (1.23) (.49) (.90) --
--------- --------- -------- -------- ---------
Total dividends and distributions to shareholders (1.37) (1.23) (.49) (1.02) --
- ------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 16.48 $ 15.49 $ 14.16 $ 13.54 $ 12.30
========= ========= ======== ======== =========
========================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(4) 16.60% 19.75% 8.37% 19.72% 9.33
========================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $192,000 $161,693 $148,044 $135,616 $111,207
- ------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $174,838 $154,288 $148,461 $125,158 $125,786
- ------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) 0.19% 0.77% 0.05%(5) 0.04%(5) 0.72%(5)
Expenses 1.88% 1.88% 1.92%(5) 1.76%(5) 1.76%(5)
- ------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(7) 47.8% 76.0% 70.0% 46.0% 62.0%
Average brokerage commission rate(8) $ 0.0045 -- -- -- --
</TABLE>
1. For the period from September 1, 1993 (inception of offering) to
November 30, 1993.
2. On November 22, 1995, OppenheimerFunds, Inc. became the investment
adviser to the Fund.
3. Based on average shares outstanding for the period.
4. Assumes a hypothetical initial investment on the business day before
the first day of the fiscal period (or inception of offering), with all
dividends and distributions reinvested in additional shares on the
reinvestment date, and redemption at the net asset value calculated on
the last business day of the fiscal period. Sales charges are not
reflected in the total returns. Total returns are not annualized for
periods of less than one full year.
5. During the periods noted above, the former Adviser 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 expenses to average net assets for Class A would have been
0.04% 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
14 Oppenheimer Quest Global Value Fund, Inc.
<PAGE> 15
<TABLE>
<CAPTION>
CLASS B CLASS C
- ------------------------------------------------ ----------------------------------------------
YEAR ENDED NOVEMBER 30, YEAR ENDED NOVEMBER 30,
1996 1995(2) 1994 1993(1) 1996 1995(2) 1994 1993(1)
<C> <C> <C> <C> <C> <C> <C> <C>
====================================================================================================
$ 15.30 $14.07 $ 13.52 $13.75 $15.26 $14.06 $13.52 $13.75
- ----------------------------------------------------------------------------------------------------
-- .02(3) (.06)(3) (.02)(3) (.04) --(3) (.08)(3) (.02)(3)
2.26 2.44 1.10 (.21) 2.29 2.43 1.11 (.21)
- ------- ------ -------- ------ ------- ------ ----- -------
2.26 2.46 1.04 (.23) 2.25 2.43 1.03 (.23)
- ----------------------------------------------------------------------------------------------------
(.07) -- -- -- (.05) -- -- --
(1.24) (1.23) (.49) -- (1.24) (1.23) (.49) --
- ------- ------ -------- ------ ------- ------ ----- ------
(1.31) (1.23) (.49) -- (1.29) (1.23) (.49) --
- ----------------------------------------------------------------------------------------------------
$ 16.25 $15.30 $ 14.07 $13.52 $16.22 $15.26 $14.06 $13.52
======= ======= ======== ====== ======= ====== ====== =======
====================================================================================================
16.03% 19.12% $ 7.84% (1.67)% 16.04% 18.90% 7.77% (1.67)%
====================================================================================================
$38,634 $16,980 $ 10,268 $1,676 $16,149 $4,373 $2,415 $244
- ----------------------------------------------------------------------------------------------------
$27,351 $13,908 $ 5,982 $1,015 $10,152 $3,834 $1,150 $200
- ----------------------------------------------------------------------------------------------------
(0.03)% 0.16% (0.44)%(5) (0.76)%(5)(6) (0.07)% 0.03% (0.59)%(5) (0.69)%(5)(6)
2.41% 2.47% 2.50%(5) 2.26%(5)(6) 2.43% 2.60% 2.66%(5) 2.26%(5)(6)
- ----------------------------------------------------------------------------------------------------
47.8% 76.0% 70.0% 46.0% 47.8% 76.0% 70.0% 46.0%
$0.0045 -- -- -- $0.0045 -- -- --
</TABLE>
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 1, 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
November 30, 1996 were $119,030,302 and $95,651,350, 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> 16
NOTES TO FINANCIAL STATEMENTS
================================================================================
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's investment
adviser is OppenheimerFunds, Inc. (the Manager). 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 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 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.
-----------------------------------------------------------------------
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> 17
================================================================================
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. 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.
During the year ended November 30, 1996, the Fund
adjusted the classification of net investment income and capital gain
(loss) to reflect the differences between financial statement amounts
and distributions determined in accordance with income tax regulations.
Accordingly, during the year ended November 30, 1996, amounts have been
reclassified to reflect a decrease in paid-in capital of $43,892.
Overdistributed net investment income was decreased by the same amount.
In addition, to properly reflect foreign currency gain in the
components of capital, $249,904 of foreign exchange loss determined
according to U.S. federal income tax rules has been reclassified from
accumulated net realized loss to overdistributed net investment income.
-----------------------------------------------------------------------
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. Transactions in shares of capital stock were as follows:
<TABLE>
<CAPTION>
YEAR ENDED NOVEMBER 30, 1996 YEAR ENDED NOVEMBER 30, 1995
---------------------------- ----------------------------
SHARES AMOUNT SHARES AMOUNT
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 2,539,864 $38,385,735 2,425,486 $ 34,403,115
Dividends and distributions reinvested 950,833 13,558,877 954,313 12,377,445
Redeemed (2,280,780) (34,732,874) (3,393,068) (48,138,429)
---------- ----------- ---------- -----------
Net increase (decrease) 1,209,917 $17,211,738 (13,269) $(1,357,869)
========== =========== ========== ===========
-------------------------------------------------------------------------------------------------------------------------
Class B:
Sold 1,411,432 $21,229,261 516,524 $7,279,837
Dividends and distributions reinvested 99,401 1,404,541 64,705 832,752
Redeemed (243,157) (3,657,346) (201,052) (2,948,802)
---------- ----------- ---------- -----------
Net increase 1,267,676 $18,976,456 380,177 $5,163,787
========== =========== ========== ===========
------------------------------------------------------------------------------------------------------------------------
Class C:
Sold 807,869 $12,121,286 204,655 $2,847,478
Dividends and distributions reinvested 29,254 412,482 16,393 210,815
Redeemed (128,191) (1,905,513) (106,327) (1,560,431)
---------- ----------- ---------- -----------
Net increase 708,932 $10,628,255 114,721 $1,497,862
========== =========== ========== ===========
</TABLE>
===============================================================================
3. UNREALIZED GAINS AND
LOSSES ON INVESTMENTS
At November 30, 1996, net unrealized appreciation on investments of
$56,668,655 was composed of gross appreciation of $63,059,576, and
gross depreciation of $6,390,921.
17 Oppenheimer Quest Global Value Fund, Inc.
<PAGE> 18
NOTES TO FINANCIAL STATEMENTS (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-Adviser) based on
the fee schedule set forth in the Prospectus. For the period ended
November 30, 1996, the Manager paid $820,179 to the Sub-Adviser. The
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 year ended November 30, 1996, commissions (sales
charges paid by investors) on sales of Class A shares totaled $408,775,
of which $201,003 was retained by OppenheimerFunds Distributor, Inc.
(OFDI), a subsidiary of the Manager, as general distributor, and by
affiliated broker/dealers. Sales charges advanced to broker/dealers by
OFDI on sales of the Fund's Class B and Class C shares totaled $662,161
and $100,103, of which $15,072 and $2,973, respectively, was paid to an
affiliated broker/dealer. During the year ended November 30, 1996, OFDI
received contingent deferred sales charges of $57,426 and $2,235,
respectively, upon redemption of Class B and Class C 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. The Fund pays OFS an annual
maintenance fee of $14.85 for each Fund shareholder account and
reimburses OFS for its out-of-pocket expenses. During the year ended
November 30, 1996, the Fund paid OFS $213,105.
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 year ended November 30,
1996, OFDI paid $2,212 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 and Class C
shares, as compensation for sales commissions paid from its own
resources at the time of sale and associated financing costs. 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 year ended November 30, 1996, OFDI retained $234,056 and $63,112,
respectively, as compensation for Class B and Class C sales commissions
and service fee advances, as well as 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. At November 30,
1996, OFDI had incurred unreimbursed expenses of $505,284 for Class B
and $115,873 for Class C.
18 Oppenheimer Quest Global Value Fund, Inc.
<PAGE> 19
===============================================================================
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. Risks include
the potential inability of the counterparty to meet the terms of the
contract and unanticipated movements in the value of a foreign currency
relative to the U.S. dollar.
At November 30, 1996, the Fund had outstanding forward contracts to
purchase foreign currencies as follows:
<TABLE>
<CAPTION>
CONTRACT AMOUNT VALUATION AS OF UNREALIZED
CONTRACTS TO BUY EXPIRATION DATE (000S) NOV. 30, 1996 DEPRECIATION
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Indonesian Rupiah (IDR) 12/5/96 815,222 IDR $347,643 $445
======== =====
</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 income 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 November 30, 1996, the Fund
had on loan securities valued at $10,674,624. Cash of $10,382,319 was
received as collateral for the loans, and has been invested in the
approved instruments identified below. U.S. Treasury Bonds valued at
$862,250 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 NOV. 30, 1996
-------------------------------------------------------------------------------------------------
<S> <C>
Provident: Temp Fund $ 4,926,836
-------------------------------------------------------------------------------------------------
Seven Seas Series Prime Money Market Portfolio 2,229,763
-------------------------------------------------------------------------------------------------
Federated Treasury 1,877,557
-------------------------------------------------------------------------------------------------
Dreyfus Government Cash 1,254,670
-------------------------------------------------------------------------------------------------
U.S. Treasury Bonds 862,250
-------------------------------------------------------------------------------------------------
Dreyfus Treasury 93,493
-----------
$11,244,569
===========
</TABLE>
19 Oppenheimer Quest Global Value Fund, Inc.
<PAGE> 20
REPORT OF INDEPENDENT ACCOUNTANTS
================================================================================
To the Board of Directors and Shareholders of
Oppenheimer Quest Global Value Fund, Inc.
In our opinion, the accompanying statement of assets and liabilities,
including the statement of investments, and the related statements of
operations and of changes in net assets and the financial highlights
present fairly, in all material respects, the financial position of
Oppenheimer Quest Global Value Fund, Inc. (the Fund), at November 30,
1996, the results of its operations for the year then ended, the changes
in its net assets for each of the two years in the period then ended and
the financial highlights for the periods indicated, in conformity with
generally accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as financial statements) are
the responsibility of the Fund's management; our responsibility is to
express an opinion on these financial statements based on our audits. We
conducted our audits of these financial statements in accordance with
generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting
principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that
our audits, which included confirmation of securities at November 30,
1996 by correspondence with the custodian and brokers and the
application of alternative auditing procedures where confirmations from
brokers were not received, provide a reasonable basis for the opinion
expressed above.
Price Waterhouse LLP
Denver, Colorado
December 20, 1996
20 Oppenheimer Quest Global Value Fund, Inc.
<PAGE> 21
FEDERAL INCOME TAX INFORMATION (Unaudited)
================================================================================
In early 1997 shareholders will receive information regarding all
dividends and distributions paid to them by the Fund during calendar
year 1996. Regulations of the U.S. Treasury Department require the Fund
to report this information to the Internal Revenue Service.
Distributions of $1.36869, $1.30712 and $1.29316 per share were
paid to Class A, Class B and Class C shareholders, respectively, on
December 27, 1995, of which, for each class of shares, $1.0821 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 November
30, 1996 which are not designated as capital gain distributions should
be multiplied by 36.54% 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 adviser
for specific guidance.
21 Oppenheimer Quest Global Value Fund, Inc.
<PAGE> 22
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 ADVISER
OppenheimerFunds, Inc.
================================================================================
SUB-ADVISER
OpCap Advisors
================================================================================
DISTRIBUTOR
OppenheimerFunds Distributor, Inc.
================================================================================
TRANSFER AND SHAREHOLDER
SERVICING AGENT
OppenheimerFunds Services
================================================================================
CUSTODIAN OF
PORTFOLIO SECURITIES
State Street Bank and Trust Company
================================================================================
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
================================================================================
LEGAL COUNSEL
Gordon Altman Butowsky Weitzen Shalov & Wein
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.
22 Oppenheimer Quest Global Value Fund, Inc.
<PAGE> 23
OPPENHEIMERFUNDS FAMILY
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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 comfortable
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 3 million
shareholder accounts and more than $55 billion under OppenheimerFunds'
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 telephone.(1) For more
information on Oppenheimer funds, please contact your financial adviser
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.
<TABLE>
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<S> <C>
STOCK FUNDS Developing Markets Fund Growth Fund
Global Emerging Growth Fund Global Fund
Enterprise Fund(2) Quest Global Value Fund
International Growth Fund Disciplined Value Fund
Discovery Fund Oppenheimer Fund
Quest Small Cap Value Fund Value Stock Fund
Gold & Special Minerals Fund Quest Value Fund
Capital Appreciation Fund(3)
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STOCK & BOND FUNDS
Equity Income Fund Main Street Income & Growth Fund
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
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BOND FUNDS International Bond Fund Bond Fund
High Yield Fund U.S. Government Trust
Champion Income Fund Limited-Term Government Fund
Strategic Income Fund
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MUNICIPAL FUNDS California Municipal Fund(4) Insured Municipal Fund
Florida Municipal Fund(4) Intermediate Municipal Fund
New Jersey Municipal Fund(4)
New York Municipal Fund(4) Rochester Division
Pennsylvania Municipal Fund(4) Rochester Fund Municipals
Municipal Bond Fund Limited Term New York Municipal Fund
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MONEY MARKET FUNDS(5)
Money Market Fund Cash Reserves
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LIFESPAN Growth Fund Income Fund
Balanced Fund
</TABLE>
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 new investors.
3. On 12/18/96, the Fund's name was changed from "Target Fund."
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.
23 Oppenheimer Quest Global Value Fund, Inc.
<PAGE> 24
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
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
RA0254.001.1196 January 31, 1997
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CUSTOMER SERVICE REPRESENTATIVE
OPPENHEIMERFUNDS SERVICES
"HOW MAY I HELP YOU?"
As an Oppenheimer fund 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 funds' transfer agent,
OppenheimerFunds Services, with their Award of Excellence in 1993.
So call us today--we're here to help.
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OppenheimerFunds Distributor, Inc.
P.O. Box 5270
Denver, CO 80217-5270
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