---------------------------------------
Annual Report November 30, 1997
---------------------------------------
OPPENHEIMER
Quest Global
Value Fund, Inc.
[PHOTO OMITTED]
[LOGO]
OppenheimerFunds(SM)
THE RIGHT WAY TO INVEST
<PAGE>
Contents
3 President's Letter
4 Fund Performance
6 An Interview
with the Fund's Managers
11 Statement of
Investments
18 Statement of
Assets & Liabilities
20 Statement of
Operations
21 Statements of
Changes in
Net Assets
22 Financial Highlights
25 Notes to Financial
Statements
31 Report of
Independent
Accountants
32 Federal Income
Tax Information
33 Shareholder Meeting
34 Officers & Directors
36 Information &
Services
Report highlights
- --------------------------------------------------------------------------------
o The U.S. stock market continued to rally despite corrections in March and
October. In fact, the major large-capitalization equity indexes produced their
third consecutive year of 20%+ returns.
o Emerging markets of Southeast Asia declined sharply between July and October,
the result of a currency crisis brought on by a number of economic factors. The
Asian declines produced a ripple effect throughout the world.
- -----------------------------------
Avg Annual Total Returns
- -----------------------------------
For the 1-year period ended
11/30/97 (without sales charges)(1)
Class A
- -----------------------------------
16.24%
- -----------------------------------
Class B
- -----------------------------------
15.61%
- -----------------------------------
Class C
- -----------------------------------
15.64%
- -----------------------------------
Total returns include changes 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.
1. Includes changes 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 Oppenheimer Quest Global Value Fund, Inc.
<PAGE>
[PHOTO OMITTED]
Bridget A. Macaskill
President
Oppenheimer Disciplined
Allocation Fund
Dear shareholder,
- --------------------------------------------------------------------------------
As you are no doubt aware, during the end of October and early November many
stock markets around the world recorded their all-time largest point declines,
followed by subsequent gains and continued volatility, leaving investors
uncertain about what would occur next.
To put those events in focus, let's look at a "snapshot" of the two-week
time period. Sharp declines in the overseas stock markets, particularly in Asia,
triggered a series of sell-offs throughout Europe, Latin America and the United
States. In response, the U.S. stock market, as measured by the Dow Jones
Industrial Average, dropped 554 points on October 27, its largest point decline
in history. However, almost as quickly, the U.S. stock market bounced back over
the succeeding few days, regaining nearly all of its losses.
While no one could have predicted the timing or extent of these
fluctuations, many analysts, including our fund managers here at
OppenheimerFunds, had warned of a correction for several months. We believed
that U.S. valuations were too high, stocks were expensive relative to bonds,
recent corporate earnings were somewhat disappointing and that Federal Reserve
Chairman Alan Greenspan could possibly seek a short-term interest rate hike.
While only one short-term interest rate hike occurred in March of 1997, the
other factors have held true.
We'd like to take this opportunity to remind shareholders that stock market
volatility is a normal and expected part of the business cycle. As Alan
Greenspan suggested, in years to come this period will likely be remembered as a
positive change for a market that was growing too quickly.
For frequent market updates, please visit our website at
www.oppenheimerfunds.com or call 1-800-835-3104 to listen to our recorded
messages. In the meantime, thank you for your confidence in OppenheimerFunds,
The Right Way to Invest. We look forward to helping you reach your investment
goals in the future.
Sincerely,
/s/ Bridget A. Macaskill
Bridget A. Macaskill
December 19, 1997
3 Oppenheimer Quest Global Value Fund, Inc.
<PAGE>
- -----------------------------------
Avg Annual Total Returns
- -----------------------------------
For the Period Ended 12/31/97(1)
Class A
Since
1 year 5 year Inception
- -----------------------------------
8.02% 14.49% 9.98%
- -----------------------------------
Class B
Since
1 year 5 year Inception
- -----------------------------------
9.03% N/A 12.50%
- -----------------------------------
Class C
Since
1 year 5 year Inception
- -----------------------------------
13.05% N/A 12.75%
- -----------------------------------
- -----------------------------------
Cumulative Total Return
- -----------------------------------
For the Period Ended 12/31/97(1)
Class A
5 year
- -----------------------------------
96.72% $19,672(3)
- -----------------------------------
Performance update
- --------------------------------------------------------------------------------
Our strategy of seeking to invest in companies that we believe have solid
fundamentals, while paying careful attention to the price we pay for those
companies, has worked well for the Fund. Oppenheimer Quest Global Value Fund,
Inc.'s Class A shares provided an average annual total return, without sales
charges, of 16.24% for the one-year period ended November 30, 1997.(2)
Growth of $10,000
Over five years
(without sales charges)(3)
[GRAPHIC OMITTED]
[The plot points below were represented by a line graph in the printed
materials.]
MSCI World Index SP
Unit Value Base: Q4 92 = $10,000.00
Q1 Q2 Q3 Q4
-------------------------------------------------------
92 -- -- -- $10,000.00
-------------------------------------------------------
93 $10,806.00 $11,411.31 $11,896.99 $12,039.01
-------------------------------------------------------
94 $12,063.99 $12,374.91 $12,588.38 $12,443.23
-------------------------------------------------------
95 $12,967.92 $13,463.62 $14,157.21 $14,770.40
-------------------------------------------------------
96 $15,311.59 $15,694.15 $15,839.68 $16,502.00
-------------------------------------------------------
97 $16,488.24 $18,903.47 $19,381.07 $18,840.00
-------------------------------------------------------
Oppenheimer Quest Global Value Fund, Inc.
Class A Shares
Unit Value Base: Q4 92 = $10,000.00
Q1 Q2 Q3 Q4
-------------------------------------------------------
92 -- -- -- $10,000.00
-------------------------------------------------------
93 $10,751.13 $11,327.54 $12,104.78 $12,435.11
-------------------------------------------------------
94 $12,516.55 $12,751.85 $13,059.57 $12,829.90
-------------------------------------------------------
95 $13,156.55 $14,365.55 $15,336.45 $15,527.20
-------------------------------------------------------
96 $16,243.87 $16,819.30 $17,134.20 $18,056.75
-------------------------------------------------------
97 $18,484.06 $20,676.49 $21,688.36 $20,872.00
-------------------------------------------------------
1. Total returns include changes in share price and reinvestment of dividends
and capital gains distributions in a hypothetical investment for the periods
shown. 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 for Class A shares was lower prior to 11/24/95, so actual
performance may have been higher. Class B returns include the applicable
contingent deferred sales charge of 5% (1-year) and 2% (since inception on
9/1/93). Class C returns for the one-year result include the contingent deferred
sales charge of 1%. Class C shares have an inception date of 9/1/93. An
explanation of the different performance calculations is in the Fund's
prospectus. Class B and C shares are subject to an annual 0.75% asset-based
sales charge and Class A shares are subject to an annual 0.25% asset-based sales
charge. OppenheimerFunds, Inc. became the Fund's advisor on 11/22/95. The Fund's
subadvisor is OpCap Advisors, which was the Fund's advisor prior to 11/22/95.
The portfolio managers are employed by the Fund's subadvisor.
2. Includes changes in net asset value per share without deducting any sales
charges. Such performance would have been lower if sales charges were taken into
account.
4 Oppenheimer Quest Global Value Fund, Inc.
<PAGE>
Sector Weightings(4)
[The following information was represented by a pie chart in the printed
materials.]
o Financial 26.8%
o Technology 19.5
o Consumer
Cyclical 17.8
o Basic Materials 11.3
o Industrial 10.0
o Consumer
Non-Cyclical 7.8
o Energy 3.6
o Utilities 3.2
Portfolio review
- --------------------------------------------------------------------------------
Oppenheimer Quest Global Value Fund, Inc. is for investors looking for long-term
growth from a portfolio of U.S. and foreign stocks.
What We Look For
o Companies with high return on invested capital.
o Businesses with strong industry positions and unique products or services.
o Companies with strong balance sheets.
o Management committed to shareholder interests.
Top 10 Stock Holdings(4)
- --------------------------------------------------------------------------------
Freddie Mac 4.6% Du Pont (E.I.)
De Nemours & Co. 3.1%
- --------------------------------------------------------------------------------
Boeing Co. 4.5 Lockheed Martin Corp. 2.8
- --------------------------------------------------------------------------------
Wells Fargo & Co. 4.4 EXEL Ltd. 2.5
- --------------------------------------------------------------------------------
McDonald's Corp. 3.6 Intel Corp. 2.2
- --------------------------------------------------------------------------------
Citicorp 3.4 SAP AG 1.9
- --------------------------------------------------------------------------------
Top 10 Country Holdings(5)
- --------------------------------------------------------------------------------
United States 51.1% Sweden 3.9%
- --------------------------------------------------------------------------------
Japan 9.0 Switzerland 3.1
- --------------------------------------------------------------------------------
Germany 6.1 Canada 3.0
- --------------------------------------------------------------------------------
Great Britain 5.8 The Netherlands 2.3
- --------------------------------------------------------------------------------
France 4.4 Spain 1.9
- --------------------------------------------------------------------------------
3. Results of a hypothetical $10,000 investment in Class A shares on December
31, 1992. The Morgan Stanley Capital International World Index is a broad-based,
unmanaged index of foreign and domestic stocks including reinvestment of net
dividends, and cannot be purchased by investors. Past performance does not
guarantee future results.
4. The Fund's portfolio is subject to change. Percentages are based on total
market value of stock holdings as of November 30, 1997.
5. The Fund's portfolio is subject to change. Percentages are based on total
market value of investments as of November 30, 1997.
5 Oppenheimer Quest Global Value Fund, Inc.
<PAGE>
- --------------------------
"The performance
of stock markets
in different
regions of the
world varied
during 1997."
An interview with your Fund's managers
- --------------------------------------------------------------------------------
How has the Fund performed during the 12-month period ended November 30, 1997?
Oppenheimer Quest Global Value Fund, Inc.'s Class A shares provided an average
annual total return of 16.24% for the one-year period ended November 30,
1997.(1) These results reflect changes in share price, plus reinvested income
distributions, but are calculated before sales charges are considered.
How did the global markets perform during the year?
The performance of stock markets in different regions of the world varied during
1997. Despite corrections in March and October, the U.S. stock market continued
to rally. In fact, the major domestic large-capitalization equity indexes have
produced their third consecutive year of 20%+ returns. We are quite
impressed--and more than a little surprised--with the resiliency shown by the
U.S. market.
On the other hand, the Asian markets did very poorly. In Japan, a prolonged
economic recession, tight fiscal policy and persistent problems in the country's
financial system combined to restrain a rally early in the year and keep stock
prices depressed. The emerging markets of Southeast Asia declined sharply
between July and October, the result of a currency crisis brought on by a number
of economic factors. The Asian declines produced a ripple effect throughout the
world.
European markets provided positive returns, the result of increased
investor confidence in the early stages of an economic recovery. Another major
theme driving Europe's markets has been corporate restructuring, which
(1). lncludes changes in net asset value per share without deducting any sales
charges. Such performance would have been lower if sales charges were taken into
account.
6 Oppenheimer Quest Global Value Fund, Inc.
<PAGE>
[PHOTO OMITTED]
Portfolio Management
Team (l to r)
Richard J. Glasebrook,II
Pierre Daviron
(Fund Managers)
is taking place as companies prepare for the advent of the European Monetary
Union on January 1, 1999. When barriers to trade and commerce are eliminated,
European companies will find themselves competing in one market with 375 million
consumers. These companies are restructuring to compete effectively in that
marketplace and are creating shareholder value as a result.
What types of companies did you focus on?
Our stock-by-stock approach to investing led us to different industries in the
markets in which we participate. In the United States, for example, several of
our holdings happen to be in the banking and insurance industries. That's
because many of the characteristics we look for can be seen in financial
companies. These companies are generally businesses that produce high returns
and free cash flow. In Japan, we focused on exporters, especially those that do
business in the United States. Exporters benefited from a strengthening U.S.
dollar, which makes their goods less expensive in U.S. dollar terms. In Europe,
we have focused on companies that we believe are best positioned to dominate
their industries after the European Monetary Union takes effect. As a result, we
have holdings in a number of leaders among Europe's pharmaceutical, financial
and consumer goods industries.
7 Oppenheimer Quest Global Value Fund, Inc.
<PAGE>
- --------------------------
"European
companies
will find
themselves
competing in
one market..."
An interview with your Fund's managers
- --------------------------------------------------------------------------------
Did the problems in Asia affect the Fund's performance?
We had very limited exposure to the Asian markets that were hardest hit. We did
not own any stocks in Malaysia. We only had one position in the Philippines, one
in Singapore and one in Thailand. They were all very modest positions, and had
little impact on the Fund's performance overall.
What companies contributed to the Fund's performance?
One of our holdings, a Swiss drug company, did well by cutting costs and
restructuring its operations. It spun off a significant number of operations
that were not core businesses, and created substantial value for its
shareholders. In Germany, one of our bank holdings announced a merger with the
second-largest bank in Munich to become the dominant bank in Bavaria. Another of
our holdings, a food, cosmetics and toiletries conglomerate, is refocusing on
its core consumer goods and restructuring its operations. And in Japan,
exporters have done well for the portfolio.
Have you had any disappointing investments in the past year?
Our greatest disappointments have been with companies that have strong
businesses, but depressed stock prices. For example, we own stock in McDonald's
Corp., which is highly visible but has been neglected by investors because of
problems in its domestic business. Yet, its overseas business is growing, so, in
our opinion, its stock price represented an excellent value for the company. The
same is true for Wells Fargo & Co., which has a strong banking franchise but has
experienced difficulties with its merger with First Interstate.
- --------------------------
"...Companies
are restructuring
to compete
effectively
in that
marketplace."
8 Oppenheimer Quest Global Value Fund, Inc.
<PAGE>
- --------------------------
"...Companies
are restructuring
to compete
effectively
in that
marketplace."
What do you look for when making new investments?
First, we invest only in companies that we believe have solid fundamentals to
support their businesses in good and bad economic times. Second, we pay careful
attention to the price we pay for those companies. We look for situations in
which solid companies are selling for less than their fair value.
Perhaps most important, we look for situations with excellent prospects for
the long term. That's because we approach these businesses as owners, not as
traders. In our view, being an owner of high-quality businesses represents The
Right Way to Invest.
9 Oppenheimer Quest Global Value Fund, Inc.
<PAGE>
Financials
- --------------------------------------------------------------------------------
10 Oppenheimer Quest Global Value Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------
Statement of Investments November 30, 1997
- --------------------------------------------------------------------------------
Market Value
Shares See Note 1
================================================================================
Common Stocks--86.9%
- --------------------------------------------------------------------------------
Basic Materials--9.8%
- --------------------------------------------------------------------------------
Chemicals--6.8%
Dainippon Ink & Chemicals, Inc. 420,000 $ 1,480,901
- --------------------------------------------------------------------------------
Du Pont (E.I.) De Nemours & Co. 180,000 10,901,250
- --------------------------------------------------------------------------------
Hercules, Inc. 60,000 2,913,750
- --------------------------------------------------------------------------------
Monsanto Co. 120,000 5,242,500
- --------------------------------------------------------------------------------
Sekisui Chemical Co. 130,000 946,288
- --------------------------------------------------------------------------------
SGL Carbon AG 20,000 2,579,615
- --------------------------------------------------------------------------------
Shin-Etsu Chemical Co.(1) 74,000 1,756,866
- --------------------------------------------------------------------------------
Showa Denko K.K.(1)(2) 750,000 1,110,676
- --------------------------------------------------------------------------------
Solutia, Inc. 18,000 410,625
------------
27,342,471
- --------------------------------------------------------------------------------
Metals--0.8%
Toho Titanium Co.(1) 72,000 614,927
- --------------------------------------------------------------------------------
Usinor SA 123,000 1,933,500
- --------------------------------------------------------------------------------
WMC Ltd. 268,043 859,254
------------
3,407,681
- --------------------------------------------------------------------------------
Paper--2.2%
Aracruz Celulose SA, Sponsored ADR 84,350 1,212,531
- --------------------------------------------------------------------------------
AssiDoman AB 72,000 1,860,387
- --------------------------------------------------------------------------------
Champion International Corp. 110,000 5,891,875
------------
8,964,793
- --------------------------------------------------------------------------------
Consumer Cyclicals--15.5%
- --------------------------------------------------------------------------------
Autos & Housing--3.2%
Calsonic Corp.(1) 142,000 745,465
- --------------------------------------------------------------------------------
Cie Generale de Etablissements Michelin, B Shares 43,643 2,350,893
- --------------------------------------------------------------------------------
Corporacion GEO, SA de CV, Series B(2) 368,916 2,202,618
- --------------------------------------------------------------------------------
Electrolux AB, Series B Free 33,900 2,669,507
- --------------------------------------------------------------------------------
Honda Motor Co. 72,000 2,606,386
- --------------------------------------------------------------------------------
LucasVarity plc 605,086 1,942,012
- --------------------------------------------------------------------------------
Murakami Corp. 77,000 386,131
------------
12,903,012
- --------------------------------------------------------------------------------
Leisure & Entertainment--5.2%
Hagemeyer NV 21,796 983,476
- --------------------------------------------------------------------------------
McDonald's Corp. 260,000 12,610,000
- --------------------------------------------------------------------------------
Time Warner, Inc. 85,000 4,951,250
- --------------------------------------------------------------------------------
Verenigd Bezit VNU 100,000 2,394,425
------------
20,939,151
11 Oppenheimer Quest Global Value Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------
Statement of Investments (Continued)
- --------------------------------------------------------------------------------
Market Value
Shares See Note 1
- --------------------------------------------------------------------------------
Media--1.5%
Benpres Holdings Corp., Sponsored GDR.(2) 241,600 $ 773,120
- --------------------------------------------------------------------------------
Singapore Press Holdings Ltd. 87,000 1,190,933
- --------------------------------------------------------------------------------
Thomson Corp. 69,000 1,737,806
- --------------------------------------------------------------------------------
Wolters Kluwer NV 18,800 2,488,130
------------
6,189,989
- --------------------------------------------------------------------------------
Retail: General--2.7%
adidas AG 25,000 3,529,254
- --------------------------------------------------------------------------------
Cia Tecidos Norte de Minas, Preference 3,650,000 1,233,853
- --------------------------------------------------------------------------------
Circle K Japan Co. Ltd. 19,800 994,460
- --------------------------------------------------------------------------------
La Rinascente SpA, Ordinary 459,000 3,479,586
- --------------------------------------------------------------------------------
Siam Makro Public Co. Ltd. 404,000 464,223
- --------------------------------------------------------------------------------
Yue Yuen Industrial Holdings Ltd. 478,000 1,045,006
------------
10,746,382
- --------------------------------------------------------------------------------
Retail: Specialty--2.9%
Aldeasa SA(2) 60,000 1,253,311
- --------------------------------------------------------------------------------
Dixons Group plc 233,451 2,655,917
- --------------------------------------------------------------------------------
Metro AG(1) 72,000 3,318,689
- --------------------------------------------------------------------------------
Minolta Co. Ltd.(1) 270,000 1,554,946
- --------------------------------------------------------------------------------
Mycal Corp.(1) 75,000 617,042
- --------------------------------------------------------------------------------
Ryohin Keikaku Co. Ltd.(1) 14,000 910,480
- --------------------------------------------------------------------------------
Safeway plc 280,000 1,534,808
------------
11,845,193
- --------------------------------------------------------------------------------
Consumer Non-Cyclicals--6.7%
- --------------------------------------------------------------------------------
Beverages--0.2%
Mikuni Coca-Cola Bottling Ltd. 73,000 972,380
- --------------------------------------------------------------------------------
Food--0.3%
Bompreco SA Supermercados do Nordeste,
Sponsored GDR(3) 50,000 928,485
- --------------------------------------------------------------------------------
Bompreco SA Supermercados do Nordeste,
Sponsored GDR 22,000 408,533
------------
1,337,018
- --------------------------------------------------------------------------------
Healthcare/Drugs--3.7%
Ares-Serono Group, Cl. B 2,000 3,472,008
- --------------------------------------------------------------------------------
Astra AB Free, Series A 120,000 2,082,639
- --------------------------------------------------------------------------------
Gedeon Richter Rt., GDR, Registered S Shares 5,500 516,313
- --------------------------------------------------------------------------------
Gedeon Richter Rt., Sponsored GDR 22,000 2,065,250
- --------------------------------------------------------------------------------
Novartis AG 2,810 4,489,888
- --------------------------------------------------------------------------------
Takeda Chemical Industries Ltd. 74,000 2,162,742
------------
14,788,840
12 Oppenheimer Quest Global Value Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Market Value
Shares See Note 1
- --------------------------------------------------------------------------------
Healthcare/Supplies & Services--2.0%
Becton, Dickinson & Co. 65,000 $ 3,351,563
- --------------------------------------------------------------------------------
Gehe AG 26,000 1,319,289
- --------------------------------------------------------------------------------
SmithKline Beecham plc 360,859 3,352,598
------------
8,023,450
- --------------------------------------------------------------------------------
Household Goods--0.5%
Antofagasta Holdings plc 360,454 2,176,743
- --------------------------------------------------------------------------------
Energy--3.1%
- --------------------------------------------------------------------------------
Oil-Integrated--3.1%
Novus Petroleum Ltd. 706,648 2,151,645
- --------------------------------------------------------------------------------
PanCanadian Petroleum Ltd. 82,500 1,373,616
- --------------------------------------------------------------------------------
Quinenco SA, ADR(2) 75,000 890,625
- --------------------------------------------------------------------------------
Repsol SA(1) 49,000 2,119,363
- --------------------------------------------------------------------------------
Saga Petroleum AS, Cl. A 118,000 2,116,585
- --------------------------------------------------------------------------------
Suncor Energy, Inc. 50,000 1,649,182
- --------------------------------------------------------------------------------
Total SA, B Shares 22,000 2,310,498
------------
12,611,514
- --------------------------------------------------------------------------------
Financial--23.3%
- --------------------------------------------------------------------------------
Banks--9.7%
Bank Handlowy W Warszawie, GDR(2)(3) 55,100 633,650
- --------------------------------------------------------------------------------
Bank Handlowy W Warszawie, GDR(2) 38,100 448,172
- --------------------------------------------------------------------------------
Bayerische Vereinsbank AG 41,400 2,457,483
- --------------------------------------------------------------------------------
Citicorp 100,000 11,993,750
- --------------------------------------------------------------------------------
Credit Suisse Group 22,000 3,217,394
- --------------------------------------------------------------------------------
Lloyds TSB Group plc 277,736 3,166,775
- --------------------------------------------------------------------------------
Macquarie Bank Ltd. 132,000 979,966
- --------------------------------------------------------------------------------
Wells Fargo & Co. 50,000 15,362,500
- --------------------------------------------------------------------------------
Yasuda Trust & Banking Ltd.(1) 1,100,000 939,471
------------
39,199,161
- --------------------------------------------------------------------------------
Diversified Financial--7.5%
Acom Co. Ltd. 18,875 1,021,949
- --------------------------------------------------------------------------------
American Express Co. 55,000 4,338,125
- --------------------------------------------------------------------------------
Freddie Mac 388,000 16,005,000
- --------------------------------------------------------------------------------
Fletcher Challenge Building 272,000 793,497
- --------------------------------------------------------------------------------
ING Groep NV 36,127 1,468,377
- --------------------------------------------------------------------------------
Manhattan Card Co. Ltd. 1,610,000 541,506
- --------------------------------------------------------------------------------
Nordbanken AB 66,000 2,350,739
- --------------------------------------------------------------------------------
Orix Corp. 25,000 1,678,746
- --------------------------------------------------------------------------------
Shohkoh Fund & Co. 7,500 2,133,203
------------
30,331,142
13 Oppenheimer Quest Global Value Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------
Statement of Investments (Continued)
- --------------------------------------------------------------------------------
Market Value
Shares See Note 1
- --------------------------------------------------------------------------------
Insurance--6.1%
ACE Ltd. 42,500 $ 4,218,125
- --------------------------------------------------------------------------------
AXA SA 42,000 3,047,824
- --------------------------------------------------------------------------------
EXEL Ltd. 140,000 8,610,000
- --------------------------------------------------------------------------------
Fuji Fire & Marine Insurance Co. Ltd.(1) 160,000 362,311
- --------------------------------------------------------------------------------
Koelnische Rueckversicherungs AG 2,675 2,464,454
- --------------------------------------------------------------------------------
Transamerica Corp. 55,000 5,970,938
------------
24,673,652
- --------------------------------------------------------------------------------
Industrial--9.0%
- --------------------------------------------------------------------------------
Electrical Equipment--2.4%
Inaba Denkisangyo Co.(1) 70,000 767,875
- --------------------------------------------------------------------------------
Le Carbone-Lorraine(1) 8,000 2,151,947
- --------------------------------------------------------------------------------
Schneider SA 41,690 2,231,568
- --------------------------------------------------------------------------------
Siebe plc 160,500 2,919,927
- --------------------------------------------------------------------------------
Unican Security Systems Ltd., Cl. B 81,000 1,644,545
------------
9,715,862
- --------------------------------------------------------------------------------
Industrial Materials--1.0%
Holderbank Financiere Glarus AG 1,600 1,394,976
- --------------------------------------------------------------------------------
Kinden Corp. 200 2,272
- --------------------------------------------------------------------------------
Sho-Bond Corp. 40,000 777,277
- --------------------------------------------------------------------------------
Tarkett AG 89,599 2,057,319
------------
4,231,844
- --------------------------------------------------------------------------------
Industrial Services--1.0%
CKD Praha Holding AS(2) 24,200 792,256
- --------------------------------------------------------------------------------
Munters AB(2) 109,600 1,050,437
- --------------------------------------------------------------------------------
Toyo Corp. 37,000 223,232
- --------------------------------------------------------------------------------
Vedior Services 103,880 1,970,006
------------
4,035,931
- --------------------------------------------------------------------------------
Manufacturing--3.9%
Atlas Copco AB, A Shares 115,000 3,529,995
- --------------------------------------------------------------------------------
Graboplast Rt. 5,550 275,350
- --------------------------------------------------------------------------------
Hutchison Whampoa Ltd. 199,000 1,325,758
- --------------------------------------------------------------------------------
Sodick Co.(2) 125,000 479,925
- --------------------------------------------------------------------------------
Tenneco, Inc. 120,000 5,197,500
- --------------------------------------------------------------------------------
Unilever plc 428,000 3,387,151
- --------------------------------------------------------------------------------
Vidrala SA 38,000 1,625,750
------------
15,821,429
14 Oppenheimer Quest Global Value Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Market Value
Shares See Note 1
- --------------------------------------------------------------------------------
Transportation--0.7%
Bombardier, Inc., Cl. B 73,100 $ 1,514,964
- --------------------------------------------------------------------------------
Canadian Pacific Ltd. 50,000 1,410,323
------------
2,925,287
- --------------------------------------------------------------------------------
Technology--16.3%
- --------------------------------------------------------------------------------
Aerospace/Defense--6.3%
Boeing Co. 300,000 15,937,500
- --------------------------------------------------------------------------------
Lockheed Martin Corp. 100,000 9,756,250
------------
25,693,750
- --------------------------------------------------------------------------------
Computer Hardware--0.7%
Canon, Inc. 82,000 1,978,923
- --------------------------------------------------------------------------------
Viglen Technology plc(2) 1,020,000 878,722
------------
2,857,645
- --------------------------------------------------------------------------------
Computer Software/Services--1.7%
SAP AG 23,000 6,702,464
- --------------------------------------------------------------------------------
Electronics--5.9%
ABB AB, A Shares 163,000 2,079,465
- --------------------------------------------------------------------------------
Intel Corp. 100,000 7,762,500
- --------------------------------------------------------------------------------
Kyocera Corp. 22,500 1,085,994
- --------------------------------------------------------------------------------
Nokia AB 71,000 5,700,162
- --------------------------------------------------------------------------------
Omron Corp. 65,000 1,110,284
- --------------------------------------------------------------------------------
Rohm Co. 11,000 1,085,994
- --------------------------------------------------------------------------------
SGS-Thomson Microelectronics NV(2) 28,300 1,995,648
- --------------------------------------------------------------------------------
Sony Corp. 35,000 2,989,226
------------
23,809,273
- --------------------------------------------------------------------------------
Telecommunications/Technology--1.7%
Ericsson Telecomunicacoes SA 55,000,000 1,932,608
- --------------------------------------------------------------------------------
Fujitsu Ltd.(1) 135,000 1,512,635
- --------------------------------------------------------------------------------
Tele-Communications TCI Ventures Group, Cl. A(2) 145,519 3,292,367
------------
6,737,610
15 Oppenheimer Quest Global Value Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------
Statement of Investments (Continued)
- --------------------------------------------------------------------------------
Market Value
Shares See Note 1
- --------------------------------------------------------------------------------
Utilities--2.8%
- --------------------------------------------------------------------------------
Electric Utilities--1.7%
Cie Generale des Eaux 13,509 $ 1,784,880
- --------------------------------------------------------------------------------
Endesa SA(1) 141,000 2,652,171
- --------------------------------------------------------------------------------
Hongkong Electric Holdings Ltd. 298,000 1,008,073
- --------------------------------------------------------------------------------
Tokyo Electric Power Corp. 78,000 1,399,569
------------
6,844,693
- --------------------------------------------------------------------------------
Gas Utilities--0.7%
Precision Drilling Corp.(2) 102,100 2,643,177
- --------------------------------------------------------------------------------
Telephone Utilities--0.4%
Telecom Italia Mobile SpA 830,000 1,815,572
------------
Total Common Stocks (Cost $267,266,526) 350,287,109
Face
Amount
================================================================================
Other Securities--0.4%
- --------------------------------------------------------------------------------
Viglen Technology plc Loan Nts., 3/1/98(2)(4) 831,300 1,404,232
(Cost $1,178,139)
Units
================================================================================
Rights, Warrants and Certificates--0.0%
- --------------------------------------------------------------------------------
Benpres Holdings Corp., Sponsored GDR Rts.,
Exp. 12/97 (Cost $0) 241,600 --
Face
Amount
================================================================================
Short-Term Notes--12.7%(5)
- --------------------------------------------------------------------------------
Federal Farm Credit Bank, 5.45%, 12/9/97 $11,000,000 10,986,678
- --------------------------------------------------------------------------------
Federal Farm Credit Bank, 5.46%, 12/18/97 6,690,000 6,672,751
- --------------------------------------------------------------------------------
Federal Home Loan Bank, 5.44%, 12/8/97 7,285,000 7,277,294
- --------------------------------------------------------------------------------
Federal Home Loan Bank, 5.60%, 12/1/97 20,000,000 20,000,000
- --------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp., 5.63%, 12/1/97 3,800,000 3,800,000
- --------------------------------------------------------------------------------
Student Loan Marketing Assn., 5.45%, 12/5/97 2,915,000 2,913,235
------------
Total Short-Term Notes (Cost $51,649,958) 51,649,958
- --------------------------------------------------------------------------------
Total Investments, at Value (Cost $320,094,623) 99.6% 403,341,299
- --------------------------------------------------------------------------------
Other Assets Net of Liabilities 0.4 1,520,500
----------- ------------
Net Assets 100.0% $404,861,799
=========== ============
16 Oppenheimer Quest Global Value Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Distribution of investments by country of issue, as a percentage of total
investments at value, is as follows:
Country Market Value Percent
- -------------------------------------------------------------------------------
United States $206,367,325 51.1%
- -------------------------------------------------------------------------------
Japan 36,408,574 9.0
- -------------------------------------------------------------------------------
Germany 24,428,567 6.1
- -------------------------------------------------------------------------------
Great Britain 23,418,885 5.8
- -------------------------------------------------------------------------------
France 17,806,759 4.4
- -------------------------------------------------------------------------------
Sweden 15,623,169 3.9
- -------------------------------------------------------------------------------
Switzerland 12,574,266 3.1
- -------------------------------------------------------------------------------
Canada 11,973,612 3.0
- -------------------------------------------------------------------------------
The Netherlands 9,304,414 2.3
- -------------------------------------------------------------------------------
Spain 7,650,595 1.9
- -------------------------------------------------------------------------------
Brazil 5,716,010 1.4
- -------------------------------------------------------------------------------
Finland 5,700,162 1.4
- -------------------------------------------------------------------------------
Italy 5,295,159 1.3
- -------------------------------------------------------------------------------
Australia 3,990,865 1.0
- -------------------------------------------------------------------------------
Hong Kong 3,920,342 1.0
- -------------------------------------------------------------------------------
Hungary 2,856,913 0.7
- -------------------------------------------------------------------------------
Mexico 2,202,618 0.6
- -------------------------------------------------------------------------------
Norway 2,116,585 0.5
- -------------------------------------------------------------------------------
Singapore 1,190,936 0.3
- -------------------------------------------------------------------------------
Poland 1,081,822 0.3
- -------------------------------------------------------------------------------
Chile 890,625 0.2
- -------------------------------------------------------------------------------
New Zealand 793,497 0.2
- -------------------------------------------------------------------------------
Czech Republic 792,256 0.2
- -------------------------------------------------------------------------------
Philippines 773,120 0.2
- -------------------------------------------------------------------------------
Thailand 464,223 0.1
------------ -----
Total $403,341,299 100.0%
============ =====
1. Loaned security--See Note 7 of Notes to Financial Statements.
2. Non-income producing security.
3. Represents securities sold under Rule 144A, which are exempt from
registration under the Securities Act of 1933, as amended. These securities have
been determined to be liquid under guidelines established by the Board of
Directors. These securities amount to $1,562,135 or 0.39% of the Fund's net
assets as of November 30, 1997.
4. Identifies issues considered to be illiquid or restricted--See Note 6 of
Notes to Financial Statements.
5. Short-term notes are generally traded on a discount basis; the interest rate
is the discount rate received by the Fund at the time of purchase.
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
17 Oppenheimer Quest Global Value Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities November 30, 1997
- --------------------------------------------------------------------------------
================================================================================
Assets
Investments, at value (cost $320,094,623) $403,341,299
- -------------------------------------------------------------------------------
Cash 13,301
- --------------------------------------------------------------------------------
Collateral for securities loaned--Note 7 11,887,896
- --------------------------------------------------------------------------------
Cash--foreign currencies 82,623
- --------------------------------------------------------------------------------
Receivables:
Interest and dividends 508,334
Investments sold 811,691
Shares of capital stock sold 788,564
- -------------------------------------------------------------------------------
Other 2,669
------------
Total assets 417,436,377
===============================================================================
Liabilities
Return of collateral for securities loaned--Note 7 11,887,896
- -------------------------------------------------------------------------------
Payables and other liabilities:
Shares of capital stock redeemed 374,791
Transfer and shareholder servicing agent fees 25,919
Distribution and service plan fees 169,303
Other 116,669
------------
Total liabilities 12,574,578
===============================================================================
Net Assets $404,861,799
============
===============================================================================
Composition of Net Assets
Par value of shares of capital stock $ 220,377
- -------------------------------------------------------------------------------
Additional paid-in capital 305,106,076
- --------------------------------------------------------------------------------
Overdistributed net investment income (165,139)
- --------------------------------------------------------------------------------
Accumulated net realized gain on investments and
foreign currency transactions 16,486,331
- --------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of
assets and liabilities denominated in foreign currencies 83,214,154
------------
Net assets $404,861,799
============
18 Oppenheimer Quest Global Value Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
Net Asset Value Per Share
Class A Shares:
Net asset value and redemption price per share (based on net
assets of $267,636,193 and 14,469,717 shares of capital stock
outstanding) $18.50
Maximum offering price per share (net asset value plus sales
charge of 5.75% of offering price) $19.63
- --------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable
contingent deferred sales charge) and offering price per
share (based on net assets of $98,457,003 and 5,427,392 shares
of capital stock outstanding) $18.14
- --------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable
contingent deferred sales charge) and offering price per
share (based on net assets of $38,768,603 and 2,140,599 shares
of capital stock outstanding) $18.11
See accompanying Notes to Financial Statements.
19 Oppenheimer Quest Global Value Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------
Statement of Operations For the Year Ended November 30, 1997
- --------------------------------------------------------------------------------
===============================================================================
Investment Income
Dividends (net of foreign withholding taxes of $169,293) $ 4,077,642
- -------------------------------------------------------------------------------
Interest 2,066,755
- -------------------------------------------------------------------------------
Security lending fees--Note 7 63,122
------------
Total income 6,207,519
===============================================================================
Expenses
Management fees--Note 4 2,448,836
- -------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 1,163,838
Class B 671,438
Class C 266,690
- -------------------------------------------------------------------------------
Administrative fees--Note 4 816,450
- -------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 290,796
- -------------------------------------------------------------------------------
Registration and filing fees:
Class A 55,067
Class B 32,139
Class C 13,326
- -------------------------------------------------------------------------------
Shareholder reports 97,548
- -------------------------------------------------------------------------------
Custodian fees and expenses 176,431
- -------------------------------------------------------------------------------
Legal and auditing fees 43,295
- -------------------------------------------------------------------------------
Directors' fees and expenses 17,380
- -------------------------------------------------------------------------------
Other 34,656
------------
Total expenses 6,127,890
===============================================================================
Net Investment Income 79,629
===============================================================================
Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investments 21,556,604
Foreign currency transactions (5,029,385)
------------
Net realized gain 16,527,219
- -------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments 32,894,431
Translation of assets and liabilities denominated
in foreign currencies (6,340,980)
------------
Net change 26,553,451
------------
Net realized and unrealized gain 43,080,670
===============================================================================
Net Increase in Net Assets Resulting from Operations $ 43,160,299
============
See accompanying Notes to Financial Statements
20 Oppenheimer Quest Global Value Fund, Inc.
<PAGE>
- -------------------------------------------------------------------------------
Statements of Changes in Net Assets
- -------------------------------------------------------------------------------
Year Ended November 30,
1997 1996
===============================================================================
Operations
Net investment income $ 79,629 $ 310,505
- -------------------------------------------------------------------------------
Net realized gain 16,527,219 7,971,101
- -------------------------------------------------------------------------------
Net change in unrealized appreciation or
depreciation 26,553,451 24,507,199
------------ ------------
Net increase in net assets resulting from
operations 43,160,299 32,788,805
===============================================================================
Dividends and Distributions to Shareholders
Dividends from net investment income:
Class A (67,908) (1,335,495)
Class B -- (79,285)
Class C -- (18,174)
- -------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (6,430,679) (12,615,414)
Class B (1,344,536) (1,413,588)
Class C (546,226) (405,576)
===============================================================================
Capital Stock Transactions
Net increase in net assets resulting from
capital stock transactions--Note 2:
Class A 49,561,888 17,211,738
Class B 53,533,310 18,976,456
Class C 20,211,931 10,628,255
===============================================================================
Net Assets
Total increase 158,078,079 63,737,722
- -------------------------------------------------------------------------------
Beginning of period 246,783,720 183,045,998
------------ ------------
End of period (including overdistributed net
investment income of $165,139 and $147,118,
respectively) $404,861,799 $246,783,720
============ ============
See accompanying Notes to Financial Statements.
21 Oppenheimer Quest Global Value Fund, Inc.
<PAGE>
- -------------------------------------------------------------------------------
Financial Highlights
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class A
-------------------------------------------------------------------------
Year Ended November 30,
1997 1996 1995(2) 1994
============================================================================================================================
<S> <C> <C> <C> <C>
Per Share Operating Data:
Net asset value, beginning of period $16.48 $15.49 $14.16 $13.54
- ----------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .03 .03 .11(3) .01(3)
Net realized and unrealized gain (loss) 2.55 2.33 2.45 1.10
------ ------ ------ ------
Total income (loss) from investment
operations 2.58 2.36 2.56 1.11
- ----------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.01) (.13) -- --
Distributions from net realized gain (.55) (1.24) (1.23) (.49)
------ ------ ------ ------
Total dividends and distributions
to shareholders (.56) (1.37) (1.23) (.49)
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $18.50 $16.48 $15.49 $14.16
====== ====== ====== ======
============================================================================================================================
Total Return, at Net Asset Value(4) 16.24% 16.60% 19.75% 8.37%
============================================================================================================================
Ratios/Supplemental Data:
Net assets, end of period (in thousands) $267,636 $192,000 $161,693 $148,044
- ----------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $233,020 $174,838 $154,288 $148,461
- ----------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) 0.17% 0.19% 0.77% 0.05%(5)
Expenses 1.73% 1.88% 1.88% 1.92%(5)
- ----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(7) 32.0% 47.8% 76.0% 70.0%
Average brokerage commission rate(8) $0.0069 $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 advisor 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.
22 Oppenheimer Quest Global Value Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class B
- ------------ --------------------------------------------------------------------------------
Year Ended November 30,
1993 1997 1996 1995(2) 1994 1993(1)
=====================================================================================================
<S> <C> <C> <C> <C> <C>
$12.30 $16.25 $15.30 $14.07 $13.52 $13.75
- -----------------------------------------------------------------------------------------------------
--(3) (.04) -- .02(3) (.06)(3) (.02)(3)
2.26 2.48 2.26 2.44 1.10 (.21)
------ ------ ------ ------ ------ ------
2.26 2.44 2.26 2.46 1.04 (.23)
- -----------------------------------------------------------------------------------------------------
(.12) -- (.07) -- -- --
(.90) (.55) (1.24) (1.23) (.49) --
------ ------ ------ ------ ------ ------
(1.02) (.55) (1.31) (1.23) (.49) --
- -----------------------------------------------------------------------------------------------------
$13.54 $18.14 $16.25 $15.30 $14.07 $13.52
====== ====== ====== ====== ====== ======
=====================================================================================================
19.72% 15.61% 16.03% 19.12% 7.84% (1.67)%
=====================================================================================================
$135,616 $98,457 $38,634 $16,980 $10,268 $1,676
- -----------------------------------------------------------------------------------------------------
$125,158 $67,317 $27,351 $13,908 $5,982 $1,015
- -----------------------------------------------------------------------------------------------------
0.04%(5) (0.34)% (0.03)% 0.16% (0.44)%(5) (0.76)%(5)(6)
1.76%(5) 2.24% 2.41% 2.47% 2.50%(5) 2.26%(5)(6)
- -----------------------------------------------------------------------------------------------------
46.0% 32.0% 47.8% 76.0% 70.0% 46.0%
-- $0.0069 $0.0045 -- -- --
</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 expenses to
average net assets for Class A would have been 0.04% and 1.93%, respectively,
for the year ended November 30, 1994 and (0.11)% and 1.91%, respectively, for
the year ended November 30, 1993. The ratios of net investment income (loss) to
average net assets and the ratios of 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 1, 1993 (inception of
offering) to November 30, 1993.
6. Annualized.
23 Oppenheimer Quest Global Value Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class C
------------------------------------------------------------------------
Year Ended November 30,
1997 1996 1995(2) 1994 1993(1)
============================================================================================================================
<S> <C> <C> <C> <C> <C>
Per Share Operating Data:
Net asset value, beginning of period $16.22 $15.26 $14.06 $13.52 $13.75
- ----------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.03) (.04) --(3) (.08)(3) (.02)(3)
Net realized and unrealized gain (loss) 2.47 2.29 2.43 1.11 (.21)
------ ------ ------ ------ ------
Total income (loss) from investment
operations 2.44 2.25 2.43 1.03 (.23)
- ----------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income -- (.05) -- -- --
Distributions from net realized gain (.55) (1.24) (1.23) (.49) --
------ ------ ------ ------ ------
Total dividends and distributions
to shareholders (.55) (1.29) (1.23) (.49) --
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $18.11 $16.22 $15.26 $14.06 $13.52
====== ====== ====== ====== ======
============================================================================================================================
Total Return, at Net Asset Value(4) 15.64% 16.04% 18.90% 7.77% (1.67)%
============================================================================================================================
Ratios/Supplemental Data:
Net assets, end of period (in thousands) $38,769 $16,149 $4,373 $2,415 $244
- ----------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $26,735 $10,152 $3,834 $1,150 $200
- ----------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) (0.34)% (0.07)% 0.03% (0.59)%(5) (0.69)%(5)(6)
Expenses 2.24% 2.43% 2.60% 2.66%(5) 2.26%(5)(6)
- ----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(7) 32.0% 47.8% 76.0% 70.0% 46.0%
Average brokerage commission rate(8) $0.0069 $0.0045 -- -- --
</TABLE>
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, 1997 were $167,141,953 and $91,345,072, 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. Generally, non-U.S. commissions are lower than U.S.
commissions when expressed as cents per share but higher when expressed as a
percentage of transactions because of the lower per-share prices of many
non-U.S. securities. See accompanying Notes to Financial Statements.
24 Oppenheimer Quest Global Value Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements
- --------------------------------------------------------------------------------
================================================================================
1. Significant Accounting Policies
Oppenheimer Quest Global Value Fund, Inc. (the Fund) 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
long-term capital appreciation through pursuit of a global investment strategy
primarily involving equity securities. The Fund's investment advisor 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 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 that class and exclusive voting rights with respect to
matters affecting that 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 an
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.
25 Oppenheimer Quest Global Value Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
================================================================================
1. Significant Accounting Policies(continued)
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 foreign 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.
- --------------------------------------------------------------------------------
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 its ultimate characterization for federal income tax purposes. Also, due to
timing of dividend distributions, the fiscal year in which amounts are
distributed may differ from the fiscal year in which the income or realized gain
was recorded by the Fund.
The Fund adjusts the classification of distributions to shareholders
to reflect the differences between financial statement amounts and distributions
determined in accordance with income tax regulations. Accordingly, during the
year ended November 30, 1997, amounts have been reclassified to reflect an
increase in accumulated net realized gain on investments of $339,526, an
increase in overdistributed net investment income of $29,742, and a decrease in
paid-in capital of $309,784.
26 Oppenheimer Quest Global Value Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
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, 1997 Year Ended November 30, 1996
---------------------------- ----------------------------
Shares Amount Shares Amount
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 5,472,340 $97,919,431 2,539,864 $38,385,735
Dividends and distributions
reinvested 402,738 6,322,991 950,833 13,558,877
Redeemed (3,053,828) (54,680,534) (2,280,780) (34,723,874)
---------- ------------ ---------- ------------
Net increase 2,821,250 $49,561,888 1,209,917 $17,211,738
========== ============ ========== ============
- -----------------------------------------------------------------------------------------------
Class B:
Sold 3,404,941 $59,914,611 1,411,432 $21,229,261
Dividends and distributions
reinvested 80,637 1,247,453 99,401 1,404,541
Redeemed (435,710) (7,628,754) (243,157) (3,657,346)
---------- ------------ ---------- ------------
Net increase 3,049,868 $53,533,310 1,267,676 $18,976,456
========== ============ ========== ============
- -----------------------------------------------------------------------------------------------
Class C:
Sold 1,522,007 $26,737,430 807,869 $12,121,286
Dividends and distributions
reinvested 31,126 480,587 29,254 412,482
Redeemed (407,992) (7,006,086) (128,191) (1,905,513)
---------- ------------ ---------- ------------
Net increase 1,145,141 $20,211,931 708,932 $10,628,255
========== ============ ========== ============
</TABLE>
================================================================================
3. Unrealized Gains and Losses on Investments
At November 30, 1997, net unrealized appreciation on investments of $83,246,676
was composed of gross appreciation of $98,760,265, and gross depreciation of
$15,513,589.
27 Oppenheimer Quest Global Value Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------
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% of the first
$400 million of average annual net assets, 0.70% of the next $400 million and
0.65% of average annual net assets in excess of $800 million.
The Manager pays OpCap Advisors (the Sub-Advisor) based on the fee
schedule set forth in the Prospectus. For the year ended November 30, 1997, the
Manager paid $1,163,959 to the Sub-Advisor. On February 13, 1997, PIMCO Advisors
L.P. signed a definitive agreement with Oppenheimer Group, Inc. and its
subsidiary Oppenheimer Financial Corp. for PIMCO Advisors L.P. and its
affiliate, Thomson Advisory Group, Inc., to acquire the one-third managing
general partner interest in Oppenheimer Capital (the parent of OpCap Advisors)
and the 1.0% general interest in Oppenheimer Capital L.P.
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, 1997, commissions (sales charges
paid by investors) on sales of Class A shares totaled $1,030,743, of which
$297,948 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 $2,024,540 and $236,179, respectively, of which $117,193
and $2,812, respectively, was paid to an affiliated broker/dealer. During the
year ended November 30, 1997, OFDI received contingent deferred sales charges of
$109,830 and $14,818, 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, 1997, the Fund paid
OFS $263,207.
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 shareholder 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.
28 Oppenheimer Quest Global Value Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
During the year ended November 30, 1997, OFDI paid $190,803 to an affiliated
broker/dealer as compensation for Class A personal service and maintenance
expenses and retained $308,247 as compensation for Class A sales commissions and
service fee advances, as well as financing costs.
The Fund has adopted Distribution and Service Plans for Class B and
Class C shares to compensate OFDI for its 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
for its services rendered in distributing Class B and Class C shares. OFDI also
receives a service fee of 0.25% per year to compensate dealers for providing
personal services for accounts that hold Class B and C shares. Each fee is
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, 1997, OFDI paid $21,209 and $16,035, respectively, to an affiliated
broker/dealer as reimbursement for Class B and Class C personal service and
maintenance expenses and retained $584,762 and $160,673, respectively, as
reimbursement for Class B and Class C sales commissions and service fee
advances, as well as financing costs. If either Plan is terminated by the Fund,
the Board of Directors may allow the Fund to continue payments of the
asset-based sales charge to OFDI for distributing shares before the Plan was
terminated. At November 30, 1997, OFDI had incurred unreimbursed expenses of
$2,571,819 for Class B and $434,070 for Class C.
================================================================================
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.
29 Oppenheimer Quest Global Value Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
================================================================================
6. Illiquid and Restricted Securities
At November 30, 1997, investments in securities included issues that are
illiquid or restricted. Restricted securities are often purchased in private
placement transactions, are not registered under the Securities Act of 1933, may
have contractual restrictions on resale, and are valued under methods approved
by the Board of Directors as reflecting fair value. A security may be considered
illiquid if it lacks a readily available market or if its valuation has not
changed for a certain period of time. The Fund intends to invest no more than
10% of its net assets (determined at the time of purchase and reviewed
periodically) in illiquid or restricted securities. Certain restricted
securities, eligible for resale to qualified institutional investors, are not
subject to that limit. The aggregate value of illiquid or restricted securities
subject to this limitation at November 30, 1997 was $1,404,232, which represents
0.35% of the Fund's net assets. Information concerning restricted securities is
as follows:
Cost Valuation Per Unit
Security Acquisition Dates Per Unit As of Nov. 30, 1997
- --------------------------------------------------------------------------------
Viglen Technology
plc Loan Nts.,
3/1/98 6/22/95-5/23/96 $1.42 $1.69
================================================================================
7. 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 Fund did not always loan securities on the total
number of shares held as of November 30, 1997. The collateral is invested by the
custodian in money market instruments approved by the Manager. As of November
30, 1997, the Fund had on loan securities valued at $11,223,026. Cash of
$10,984,296 was received as collateral for the loans, and has been invested in
approved instruments. U.S. Treasury bonds valued at $903,600 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.
================================================================================
8. Bank Borrowings
The Fund may borrow from a bank for temporary or emergency purposes including,
without limitation, funding of shareholder redemptions provided asset coverage
for borrowings exceeds 300%. The Fund has entered into an agreement which
enables it to participate with other Oppenheimer funds in an unsecured line of
credit with a bank, which permits borrowings up to $400 million, collectively.
Interest is charged to each fund, based on its borrowings, at a rate equal to
the Federal Funds Rate plus 0.35%. Borrowings are payable 30 days after such
loan is executed. The Fund also pays a commitment fee equal to its pro rata
share of the average unutilized amount of the credit facility at a rate of
0.0575% per annum.
The Fund had no borrowings outstanding during the year ended
November 30, 1997.
30 Oppenheimer Quest Global Value Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------
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, 1997, 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 five years in the
period then ended, 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, 1997 by correspondence with the custodian and the application of
alternative auditing procedures where securities purchased had not been
received, provide a reasonable basis for the opinion expressed above.
Price Waterhouse LLP
Denver, Colorado
December 19, 1997
31 Oppenheimer Quest Global Value Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------
Federal Income Tax Information (Unaudited)
- --------------------------------------------------------------------------------
================================================================================
In early 1998, shareholders will receive information regarding all dividends and
distributions paid to them by the Fund during calendar year 1997. Regulations of
the U.S. Treasury Department require the Fund to report this information to the
Internal Revenue Service.
Distributions of $0.5569, $0.5513 and $0.5513 per share were paid to
Class A, Class B and Class C shareholders, respectively, on December 18, 1996,
of which, for each class of shares, $0.2990 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,
1997 which are not designated as capital gain distributions should be multiplied
by 63.35% to arrive at the net amount eligible for the corporate
dividend-received deduction.
The foregoing information is presented to assist shareholders in
reporting distributions received from the Fund to the Internal Revenue Service.
Because of the complexity of the federal regulations which may affect your
individual tax return and the many variations in state and local tax
regulations, we recommend that you consult your tax advisor for specific
guidance.
32 Oppenheimer Quest Global Value Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------
Shareholder Meeting (Unaudited)
- --------------------------------------------------------------------------------
================================================================================
On May 29, 1997, a special shareholder meeting was held at which the selection
of Price Waterhouse LLP as the independent accountants of the Fund for the
fiscal year beginning December 1, 1996 was ratified (Proposal No. 1), the
proposed changes to certain of the Fund's fundamental investment policies,
including changes to the investment objective were approved (Proposal No. 2),
the Investment Advisory Agreement between the Fund and OppenheimerFunds, Inc.
was approved (Proposal No. 3), the Subadvisory Agreement between
OppenheimerFunds, Inc. and OpCap Advisors was approved (Proposal No. 4), the
Fund's Class A 12b-1 Distribution and Service Plan was approved by Class A
shareholders (Proposal No. 5), the Fund's Class B 12b-1 Distribution and Service
Plan was approved by Class B shareholders (Proposal No. 6), the Fund's Class C
12b-1 Distribution and Service Plan was approved by Class C shareholders
(Proposal No. 7) and an Administrative Agreement between the Fund and
OppenheimerFunds, Inc. was approved (Proposal No. 8) as described in the Fund's
proxy statement for that meeting. The following is a report of the votes cast:
<TABLE>
<CAPTION>
Withheld/ Broker
Proposal For Against Abstain Non-Votes Total
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Proposal No. 1 7,696,691.277 295,174.800 438,834.311 6,752,254 8,430,700.388
Proposal No. 2 7,296,847.814 606,622.518 614,344.603 6,752,254 8,517,814.935
Proposal No. 3 7,426,790.926 481,323.949 604,384.513 6,752,254 8,512,499.388
Proposal No. 4 7,391,733.444 433,102.169 687,661.775 6,752,254 8,512,497.388
Proposal No. 5 5,373,832.775 399,798.166 487,644.867 4,997,280 6,261,275.808
Proposal No. 6 7,361,988.776 442,050.997 659,746.162 1,239,426 8,463,785.935
Proposal No. 7 1,306,267.973 120,458.336 161,725.622 515,548 1,588,451.931
Proposal No. 8 634,438.134 18,794.161 14,829.901 6,752,254 668,062.196
</TABLE>
33 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
================================================================================
Distributor OppenheimerFunds Distributor, Inc.
================================================================================
Transfer and OppenheimerFunds Services
Shareholder
Servicing Agent
================================================================================
Custodian of State Street Bank and Trust Company
Portfolio Securities
================================================================================
Independent Price Waterhouse LLP
Accountants
================================================================================
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.
34 Oppenheimer Quest Global Value Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------
OppenheimerFunds Family
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
=============================================================================================
Real Asset Funds
- ---------------------------------------------------------------------------------------------
<S> <C> <C>
Real Asset Fund Gold & Special Minerals Fund
=============================================================================================
Stock Funds
- ---------------------------------------------------------------------------------------------
Developing Markets Fund Discovery Fund Growth Fund
International Small Quest Small Cap Value Fund Global Fund
Company Fund MidCap Fund Quest Global Value Fund
Enterprise Fund Capital Appreciation Fund(1) Disciplined Value Fund
International Growth Fund Quest Capital Value Fund Quest Value Fund
=============================================================================================
Stock & Bond Funds
- ---------------------------------------------------------------------------------------------
Main Street Income & Quest Growth & Income Disciplined Allocation Fund
Growth Fund Value Fund Multiple Strategies Fund(2)
Quest Opportunity Value Fund Global Growth & Income Fund Bond Fund for Growth
Total Return Fund Equity Income Fund
=============================================================================================
Bond Funds
- ---------------------------------------------------------------------------------------------
International Bond Fund Champion Income Fund U.S. Government Trust
High Yield Fund Strategic Income Fund Limited-Term Government Fund
Bond Fund
=============================================================================================
Municipal Funds
- ---------------------------------------------------------------------------------------------
California Municipal Fund(3) Pennsylvania Municipal Fund(3) Rochester Division:
Florida Municipal Fund(3) Municipal Bond Fund Rochester Fund Municipals
New Jersey Municipal Fund(3) Insured Municipal Fund Limited Term New York
New York Municipal Fund(3) Intermediate Municipal Fund Municipal Fund
=============================================================================================
Money Market Funds(4)
- ---------------------------------------------------------------------------------------------
Money Market Fund Cash Reserves
=============================================================================================
LifeSpan
- ---------------------------------------------------------------------------------------------
Growth Fund Balanced Fund Income Fund
</TABLE>
1. On 12/18/96, the Fund's name was changed from "Target Fund."
2. On 3/16/97, the Fund's name was changed from "Asset Allocation Fund."
3. Available only to investors in certain states.
4. 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 1998 OppenheimerFunds, Inc. All rights reserved.
35 Oppenheimer Quest Global Value Fund, Inc.
<PAGE>
Internet
24-hr access to account
information
- -----------------------------
www.oppenheimerfunds.com
- -----------------------------
General Information
Mon-Fri 8:30am-9pm ET
Sat 10am-4pm ET
- -----------------------------
1-800-525-7048
- -----------------------------
Account Transactions
Mon-Fri 8:30am-9pm ET
Sat 10am-4pm ET
- -----------------------------
1-800-852-8457
- -----------------------------
PhoneLink
24-hr automated information
and automated transactions
- -----------------------------
1-800-533-3310
- -----------------------------
Telecommunication Device
for the Deaf (TDD)
Mon-Fri 8:30am-2pm 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
- -----------------------------
Information and services
- --------------------------------------------------------------------------------
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, or visit us at our website at
www.oppenheimerfunds.com--we're here to help.
[LOGO] OppenheimerFunds(SM)
Distributor, Inc.
RA0254.001.1197 January 29, 1998
