<PAGE> 1
SEMIANNUAL REPORT MAY 31, 1999
OPPENHEIMER
QUEST GLOBAL
VALUE FUND, INC.
[PHOTO]
[OPPENHEIMERFUNDS LOGO]
THE RIGHT WAY TO INVEST
<PAGE> 2
CONTENTS
3 President's Letter
5 An Interview
with Your Fund's
Managers
12 Financial
Statements
31 Officers and
Directors
32 Information and
Services
REPORT HIGHLIGHTS
- --------------------------------------------------------------------------------
- - STOCK MARKETS IN JAPAN, LATIN AMERICA AND THE UNITED STATES PROVIDED
ATTRACTIVE RETURNS for the portfolio over the past six months, while the Fund's
European holdings rose modestly.
- - THE CHANGE IN STOCK MARKET SENTIMENT FROM GROWTH TO VALUE BENEFITED THE FUND,
which focuses on quality established businesses selling at reasonable
valuations.
CUMULATIVE TOTAL RETURNS
For the 6-Month Period
Ended 5/31/99
<TABLE>
<CAPTION>
CLASS A
<S> <C>
Without With
Sales Chg.(1) Sales Chg.(2)
- -------------------------------
8.18% 1.96%
- -------------------------------
CLASS B
Without With
Sales Chg.(1) Sales Chg.(2)
- -------------------------------
7.87% 2.87%
- -------------------------------
CLASS C
Without With
Sales Chg.(1) Sales Chg.(2)
- -------------------------------
7.88% 6.88%
- -------------------------------
</TABLE>
Total returns include changes in share price and reinvestment of dividends and
capital gains distributions in a hypothetical investment for the periods shown.
Cumulative total returns are not annualized. IN REVIEWING PERFORMANCE AND
RANKINGS, PLEASE REMEMBER THAT PAST PERFORMANCE DOES NOT GUARANTEE FUTURE
RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT IN THE FUND WILL
FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS
THAN THE ORIGINAL COST. BECAUSE THE STOCK MARKET CAN BE VOLATILE, THE FUND'S
PERFORMANCE MAY BE SUBJECT TO SUBSTANTIAL SHORT-TERM CHANGES. FOR UPDATES ON THE
FUND'S PERFORMANCE, PLEASE CONTACT YOUR FINANCIAL ADVISOR, CALL US AT
1-800-525-7048 OR VISIT OUR WEBSITE, WWW.OPPENHEIMERFUNDS.COM. 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.
1. Includes changes in net asset value per share without deducting any sales
charges.
2. Class A return includes the current maximum initial sales charge of 5.75%.
Class B return includes the applicable contingent deferred sales charge of 5%.
Class C return includes the applicable contingent deferred sales charge of 1%.
Class A shares are subject to an annual 0.25% asset-based sales charge while
Class B and C shares are subject to an annual 0.75% asset-based sales charge. An
explanation of the different performance calculations is in the Fund's
prospectus.
2 Opppenheimer Quest Global Value Fund, Inc.
<PAGE> 3
[PHOTO]
BRIDGET A. MACASKILL
President
Oppenheimer
Quest Global Value
Fund, Inc.
DEAR SHAREHOLDER,
According to popular belief, the last six months have been particularly
favorable for the financial markets.
The truth of the matter is that it's been a long, uphill struggle for the
diversified investor. That's because the stock market's dramatic rise reflects
the performance of the Dow Jones Industrial Average, which has been fueled by
only a small number of large-capitalization growth stocks and technology
companies. In the bond market this year, while many corporate and foreign bonds
have provided relatively attractive returns, the first quarter of 1999 was the
worst quarter in history for U.S. Treasury securities.(1)
Recently, though, signs of change have been emerging that confirm the
importance of a well-diversified portfolio. While investors focusing on
large-cap growth and technology stocks may have achieved superior short-term
returns, they may have also dramatically increased their exposure to potential
risks. If recent economic and market trends persist, previously out-of-favor
stocks may continue to rise.
Specifically, U.S. economic growth has continued to surpass most analysts'
expectations and the breadth of the market's positive performance has begun to
widen. This has raised concerns that inflationary pressures may re-emerge. In
fact, the Federal Reserve Board recently indicated its readiness to raise
short-term interest rates as an inflation-fighting measure. Looking outside of
the United States, many foreign economies also appear to be on the mend. The
impact of these changes, as it applies to your fund, is discussed more fully
inside by your portfolio manager.
(over, please)
1. Foreign investing entails higher expenses and risks, such as foreign currency
fluctuations, economic and political instability, and differences in accounting
standards.
3 Oppenheimer Quest Global Value Fund, Inc.
<PAGE> 4
You may also have wondered about the impact of the Year 2000 problem on your
investments. While we cannot predict the final outcome, we are pleased that many
companies and governments appear to be making progress toward avoiding a major
disruption. For our part, OppenheimerFunds is in the advanced stages of our Y2K
project, and we have successfully participated in industry-wide tests.
Meanwhile, we intend to maintain the disciplined investment approach that
has been helping Oppenheimer funds shareholders for more than 40 years as they
pursue their financial goals. Our longstanding experience has taught us that
while investment fads come and go, prudent diversification remains key to
successful investing. In fact, it is an essential part of what makes
OppenheimerFunds The Right Way to Invest.
Sincerely,
/s/ BRIDGET A. MACASKILL
Bridget A. Macaskill
June 21, 1999
4 Oppenheimer Quest Global Value Fund, Inc.
<PAGE> 5
[PHOTO]
PORTFOLIO MANAGEMENT
TEAM (L TO R)
Richard Glasebrook II
James Sheldon
AN INTERVIEW WITH YOUR FUND'S MANAGERS
HOW DID OPPENHEIMER QUEST GLOBAL VALUE FUND, INC. PERFORM OVER THE SIX-MONTH
PERIOD THAT ENDED MAY 31, 1999?
We are pleased with the Fund's performance, and we attributed the Fund's
positive performance to our stock selection strategy. This strategy positioned
us to benefit from the change in global stock market leadership that occurred
primarily in April and May 1999. During this time, investors shifted assets from
large-capitalization growth stocks to value-oriented and cyclical stocks,
including many of the individual companies in which the Fund invested.
WHAT WAS THE FUND'S STRATEGY OVER THE PAST SIX MONTHS?
Our strategy remained unchanged. We continued to search the world for
high-quality established businesses that we believed had been overlooked by most
investors. Maintaining this approach helped us identify individual companies
that not only were selling at attractive prices relative to earnings, but that
we believed also had solid long-term outlooks.
5 Oppenheimer Quest Global Value Fund, Inc.
<PAGE> 6
"OVER THE SIX-MONTH REPORTING PERIOD, WE FOUND MORE COMPANIES IN JAPAN AND FEWER
IN EUROPE THAT WE IDENTIFIED AS COMPELLING INVESTMENT OPPORTUNITIES."
AN INTERVIEW WITH YOUR FUND'S MANAGERS
WHICH REGIONS OF THE WORLD OFFERED THE MOST ATTRACTIVE INVESTMENT OPPORTUNITIES?
Over the last six months, we found more companies in Japan and fewer in Europe
that we believed represented truly compelling investment opportunities. As a
result, we selectively added several companies in Japan to the portfolio. We
also sold a similar amount of investments in European companies that had either
met our target prices or appeared less attractive when compared to the new
opportunities. As a result of these changes, the amount of assets allocated to
European companies declined from about 34% of our global portfolio at the start
of the six-month period to about 32% at the end of the period. Conversely, our
allocation to Japanese investments rose from about 6% of our international
portfolio to approximately 11%.
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 1% (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. Class A
shares are subject to an annual 0.25% asset-based sales charge. Class B and C
shares are subject to an annual 0.75% asset-based sales charge. An explanation
of the different performance calculations is in the Fund's prospectus.
6 Oppenheimer Quest Global Value Fund, Inc.
<PAGE> 7
AVG ANNUAL TOTAL RETURNS
For the Periods Ended 6/30/99(1)
<TABLE>
<S> <C> <C>
CLASS A
Since
1 year 5 year Inception
- --------------------------
3.41% 13.90% 11.00%
- --------------------------
CLASS B
Since
1 year 5 year Inception
- --------------------------
4.17% 14.45% 13.45%
- --------------------------
CLASS C
Since
1 year 5 year Inception
- --------------------------
8.23% 14.63% 13.51%
- --------------------------
</TABLE>
WHY DO JAPANESE COMPANIES NOW LOOK ATTRACTIVE?
We have noted with interest that many corporate executives in Japan have begun
to change the way they run their businesses. For the first time since World War
II, some Japanese management teams are restructuring their companies to become
more efficient, productive and profitable. This restructuring process is similar
to the changes implemented by many U.S. companies in the 1980s and many European
companies earlier this decade. Japanese companies are reducing staff, selling
non-core or unprofitable businesses, allocating capital more effectively and
focusing more intently on shareholder value.
Because we take a "bottom up" approach to portfolio management, we evaluate
investment opportunities one company at a time. As portfolio managers, we have
tried to identify those restructuring candidates where management has a credible
plan, and in our opinion, where it is likely that an already-strong business
position will get stronger after restructuring.
HOW HAVE EUROPE AND THE UNITED STATES FARED?
Over the past six months, European stock markets recorded modest gains in local
currency terms. However, due to the exchange rate between the weak euro and the
relatively strong U.S. dollar, most U.S. investors did not benefit. The euro's
relative weakness was primarily the result of Europe's slow rate of economic
growth compared to robust growth in the United States. In addition, political
instability in key nations such as Germany and the war in Kosovo helped make
equity investors cautious.
7 Oppenheimer Quest Global Value Fund, Inc.
<PAGE> 8
AN INTERVIEW WITH YOUR FUND'S MANAGERS
Nonetheless, because of our security selection strategy, we are pleased to have
outperformed the averages in Europe. Furthermore, the Fund's European holdings
contributed positively to performance, even in U.S. dollar terms. Our stock
selection strategy in Europe favored companies that appeared to be on the verge
of converting their industry leadership into strong cash flow growth.
In the United States, stronger-than-expected economic growth during the
first quarter of 1999 caused long-term bond yields to rise which, in turn,
created changes in the leadership of the stock market. Because higher bond
yields effectively reduced the premium investors were willing to pay for highly
valued growth stocks, investors turned their attention to other, more reasonably
valued, market segments. This development strongly benefited many of our
holdings, which are composed primarily of companies chosen for their superior
business characteristics and reasonable valuations.
DID THE FUND HOLD ANY INVESTMENTS IN THE EMERGING MARKETS?
Yes. Our emerging market investments were primarily in Brazil, where the market
fell sharply in January after the devaluation of the local currency. We used the
opportunity to add several attractively priced telecommunications companies to
the portfolio. These stocks provided strong returns when Brazil's economy began
to stabilize and its stock market rebounded. We also established positions in
India, including a leading bank and a telecommunications company that we
regarded as very attractively valued. We expect these companies to benefit as
India's political climate improves.
8 Oppenheimer Quest Global Value Fund, Inc.
<PAGE> 9
WHAT STOCKS CONTRIBUTED MOST TO PERFORMANCE OVER THE PAST SIX MONTHS?
Citigroup, Inc., the global financial services giant, provided attractive
returns when investors realized that its exposure to Latin American and Asian
markets were unlikely to erode future earnings. Shares of Du Pont (E.I.) De
Nemours & Co., the U.S. chemical company, rose when investors became less
concerned about the effects of foreign markets on revenues. Du Pont also
benefited from renewed investor interest in previously out-of-favor cyclical
companies. Finally, Boeing Co.'s stock rebounded after a long period of
underperformance related to management missteps after the company's merger with
former rival McDonnell Douglas. Orders for Boeing aircraft have been relatively
strong, including orders from overseas airlines.
WHAT IS YOUR OUTLOOK FOR GLOBAL STOCKS OVER THE FORESEEABLE FUTURE?
We remain cautiously optimistic. In the United States, we are encouraged by the
recent resurgence of value-oriented and small-cap stocks. We are hopeful that
investors' single-minded focus on large growth companies is past, and that solid
value-oriented companies will receive the attention that we believe they
deserve. Internationally, we continue to believe that Japan holds the key to
higher stock prices worldwide. We are hopeful that recent, long-awaited reforms
will help Japan improve its economy, and that corporate restructuring will
benefit stock prices as it has in the United States and Europe.
9 Oppenheimer Quest Global Value Fund, Inc.
<PAGE> 10
SECTOR WEIGHTINGS(2)
[PIE CHART]
<TABLE>
<S> <C>
- - Financial 30.8%
- - Capital Goods 13.0
- - Technology 12.3
- - Consumer Staples 11.6
- - Consumer Cyclical 8.7
- - Basic Materials 7.3
- - Communication
Services 6.4
- - Healthcare 5.2
- - Transportation 2.7
- - Energy 1.2
- - Utility 0.8
</TABLE>
AN INTERVIEW WITH YOUR FUND'S MANAGERS
Regardless of what happens in the global economy, however, we intend to continue
to evaluate investment opportunities one company at a time. In our view, strict
adherence to our longstanding investment discipline is an important part of what
makes OppenheimerFunds The Right Way to Invest.
<TABLE>
<CAPTION>
TOP 10 COUNTRY HOLDINGS (2)
<S> <C>
- ----------------------------------------------------------
United States 49.0%
- ----------------------------------------------------------
Japan 10.7
- ----------------------------------------------------------
Great Britain 8.8
- ----------------------------------------------------------
France 7.9
- ----------------------------------------------------------
Sweden 3.6
- ----------------------------------------------------------
Germany 3.5
- ----------------------------------------------------------
Australia 2.5
- ----------------------------------------------------------
The Netherlands 2.1
- ----------------------------------------------------------
Brazil 1.6
- ----------------------------------------------------------
Israel 1.5
- ----------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
TOP 10 STOCK HOLDINGS (2)
<S> <C>
- ----------------------------------------------------------
Freddie Mac 5.4%
- ----------------------------------------------------------
Wells Fargo Co. 4.7
- ----------------------------------------------------------
Citigroup, Inc. 4.4
- ----------------------------------------------------------
XL Capital Ltd. 3.6
- ----------------------------------------------------------
Computer Associates International, Inc. 3.4
- ----------------------------------------------------------
McDonald's Corp. 2.7
- ----------------------------------------------------------
Boeing Co. 2.6
- ----------------------------------------------------------
News Corp. Ltd. 2.5
- ----------------------------------------------------------
Du Pont (E.I.) De Nemours & Co. 2.5
- ----------------------------------------------------------
American Home Products Corp. 2.4
- ----------------------------------------------------------
</TABLE>
2. Portfolio is subject to change. Percentages are as of May 31, 1999, and are
based on total market value of investments.
10 Oppenheimer Quest Global Value Fund, Inc.
<PAGE> 11
FINANCIALS
11 Oppenheimer Quest Global Value Fund, Inc.
<PAGE> 12
STATEMENT OF INVESTMENTS May 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
==================================================================================================
<S> <C> <C>
COMMON STOCKS--98.3%
- -------------------------------------------------------------------------------------------------
BASIC MATERIALS--7.2%
- -------------------------------------------------------------------------------------------------
CHEMICALS--5.4%
Du Pont (E.I.) De Nemours & Co.(1) 185,400 $12,132,112
- -------------------------------------------------------------------------------------------------
Hoechst AG 104,100 4,587,955
- -------------------------------------------------------------------------------------------------
Monsanto Co. 233,600 9,694,400
----------
26,414,467
- -------------------------------------------------------------------------------------------------
METALS--1.0%
Alcoa, Inc. 93,400 5,137,000
- -------------------------------------------------------------------------------------------------
PAPER--0.8%
AssiDoman AB 21,750 437,622
- -------------------------------------------------------------------------------------------------
Enso Oyj, R Shares 360,000 3,681,393
---------
4,119,015
- -------------------------------------------------------------------------------------------------
CAPITAL GOODS--12.9%
- -------------------------------------------------------------------------------------------------
AEROSPACE/DEFENSE--2.9%
Boeing Co. 301,900 12,755,275
- -------------------------------------------------------------------------------------------------
Embraer-Empresa Brasileira de Aeronautica SA, Preference 154,600,000 1,603,899
----------
14,359,174
- -------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT--2.1%
Siebe plc 1,216,220 5,544,546
- -------------------------------------------------------------------------------------------------
Siemens AG 71,997 4,848,095
----------
10,392,641
- -------------------------------------------------------------------------------------------------
INDUSTRIAL SERVICES--1.1%
Secom Co. Ltd. 56,000 5,330,243
- -------------------------------------------------------------------------------------------------
MANUFACTURING--6.8%
Canon Sales Co., Inc. 138,000 2,151,895
- -------------------------------------------------------------------------------------------------
Caterpillar, Inc. 203,400 11,161,575
- -------------------------------------------------------------------------------------------------
Minnesota Mining & Manufacturing Co. 104,700 8,978,025
- -------------------------------------------------------------------------------------------------
Societe BIC SA 114,158 6,571,047
- -------------------------------------------------------------------------------------------------
Sodick Co.(2) 600 2,567
- -------------------------------------------------------------------------------------------------
Williams plc 812,800 4,757,135
----------
33,622,244
- -------------------------------------------------------------------------------------------------
COMMUNICATION SERVICES--6.3%
- -------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS: LONG DISTANCE--5.8%
Embratel Participacoes SA, ADR 51,400 706,750
- -------------------------------------------------------------------------------------------------
Ericsson LM, B Shares 184,000 4,925,509
- -------------------------------------------------------------------------------------------------
Fujitsu Ltd.(2) 150,000 2,507,863
- -------------------------------------------------------------------------------------------------
Mahanagar Telephone Nigam Ltd. 362,325 3,279,041
- -------------------------------------------------------------------------------------------------
MCI WorldCom, Inc.(2) 114,000 9,846,750
</TABLE>
12 Oppenheimer Quest Global Value Fund, Inc.
<PAGE> 13
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
==================================================================================================
<S> <C> <C>
TELECOMMUNICATIONS: LONG DISTANCE(CONTINUED)
Nokia Oyj 30,450 $ 2,171,414
- -------------------------------------------------------------------------------------------------
Telecom Italia SpA 219,700 2,269,645
- -------------------------------------------------------------------------------------------------
Telecomunicacoes Brasileiras SA 66,100,000 3,123,995
----------
28,830,967
- -------------------------------------------------------------------------------------------------
TELEPHONE UTILITIES--0.5%
Telecom Italia SPA, RNC shares 472,000 2,571,287
- -------------------------------------------------------------------------------------------------
CONSUMER CYCLICALS--8.7%
- -------------------------------------------------------------------------------------------------
AUTOS & HOUSING--0.9%
Electrolux AB, Series B Free 230,000 4,466,761
- -------------------------------------------------------------------------------------------------
LEISURE & ENTERTAINMENT--2.6%
EMI Group plc 740,000 5,223,351
- -------------------------------------------------------------------------------------------------
Nintendo Co. Ltd. 47,000 5,523,919
- -------------------------------------------------------------------------------------------------
Scandic Hotels AB(2) 199,200 1,940,110
----------
12,687,380
- -------------------------------------------------------------------------------------------------
MEDIA--2.9%
News Corp. Ltd., Sponsored ADR, Preference 409,000 12,448,938
- -------------------------------------------------------------------------------------------------
Reed International plc 270,000 1,968,551
----------
14,417,489
- -------------------------------------------------------------------------------------------------
RETAIL: SPECIALTY--1.6%
Aldeasa SA 10,750 323,160
- -------------------------------------------------------------------------------------------------
The Great Universal Stores plc 686,700 7,328,462
---------
7,651,622
- -------------------------------------------------------------------------------------------------
TEXTILE/APPAREL & HOME FURNISHINGS--0.7%
Yue Yuen Industrial Holdings Ltd. 1,473,000 3,305,206
- -------------------------------------------------------------------------------------------------
CONSUMER STAPLES--11.7%
- -------------------------------------------------------------------------------------------------
BEVERAGES--1.5%
Diageo plc 466,119 4,903,465
- -------------------------------------------------------------------------------------------------
Mikuni Coca-Cola Bottling Ltd. 114,000 2,358,881
---------
7,262,346
- -------------------------------------------------------------------------------------------------
BROADCASTING--2.1%
Canal Plus 16,900 4,903,662
- -------------------------------------------------------------------------------------------------
Chancellor Media Corp.(2) 103,500 5,259,094
----------
10,162,756
- -------------------------------------------------------------------------------------------------
ENTERTAINMENT--2.7%
McDonald's Corp. 340,900 13,124,650
- -------------------------------------------------------------------------------------------------
FOOD--1.8%
Ajinomoto Co., Inc. 199,000 2,128,025
- -------------------------------------------------------------------------------------------------
Groupe Danone 24,000 6,625,002
----------
8,753,027
</TABLE>
13 Oppenheimer Quest Global Value Fund, Inc.
<PAGE> 14
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
==================================================================================================
<S> <C> <C>
FOOD & DRUG RETAILERS--1.2%
Carrefour SA 46,230 $ 6,081,006
- -------------------------------------------------------------------------------------------------
HOUSEHOLD GOODS--2.4%
Kao Corp. 237,000 6,512,497
- -------------------------------------------------------------------------------------------------
Reckitt & Colman plc 466,632 5,207,955
----------
11,720,452
- -------------------------------------------------------------------------------------------------
ENERGY--1.2%
- -------------------------------------------------------------------------------------------------
ENERGY SERVICES--0.6%
Stolt Comex Seaway SA(2) 263,900 2,935,888
- -------------------------------------------------------------------------------------------------
OIL: INTERNATIONAL--0.6%
Petroleo Brasileiro SA, ADR 195,000 2,742,324
- -------------------------------------------------------------------------------------------------
FINANCIAL--29.6%
- -------------------------------------------------------------------------------------------------
BANKS--11.3%
Banco Popular Espanol SA 70,000 5,130,822
- -------------------------------------------------------------------------------------------------
Bank Austria AG 109,160 5,604,229
- -------------------------------------------------------------------------------------------------
Banque Nationale de Paris 49,763 4,204,253
- -------------------------------------------------------------------------------------------------
Bayerische Hypo-Und Vereinsbank 74,000 3,953,880
- -------------------------------------------------------------------------------------------------
Empresa Nacional de Comercio Redito e
Participacoes SA, Preference(3) 3,050,000 2,461
- -------------------------------------------------------------------------------------------------
Skandinaviska Enskilda Banken Group 480,000 5,822,710
- -------------------------------------------------------------------------------------------------
State Bank of India, GDR 275,900 2,834,873
- -------------------------------------------------------------------------------------------------
Unidanmark AS, A Shares 70,400 4,953,758
- -------------------------------------------------------------------------------------------------
Wells Fargo Co. 576,600 23,064,000
----------
55,570,986
- -------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL--13.8%
Aiful Corp. 35,500 3,173,315
- -------------------------------------------------------------------------------------------------
Citigroup, Inc. 328,000 21,730,000
- -------------------------------------------------------------------------------------------------
Freddie Mac 454,100 26,479,706
- -------------------------------------------------------------------------------------------------
Household International, Inc. 63,000 2,732,625
- -------------------------------------------------------------------------------------------------
ING Groep NV 92,262 4,944,104
- -------------------------------------------------------------------------------------------------
Nikko Securities Co. Ltd. 702,200 3,068,710
- -------------------------------------------------------------------------------------------------
Takefuji Corp. 70,000 6,170,335
----------
68,298,795
- -------------------------------------------------------------------------------------------------
INSURANCE--4.5%
Scor 85,306 4,549,049
- -------------------------------------------------------------------------------------------------
XL Capital Ltd. 290,720 17,679,410
----------
22,228,459
</TABLE>
14 Oppenheimer Quest Global Value Fund, Inc.
<PAGE> 15
<TABLE>
<CAPTION>
MARKET VALUE
SHARES SEE NOTE 1
==================================================================================================
<S> <C> <C>
HEALTHCARE--5.2%
- -------------------------------------------------------------------------------------------------
HEALTHCARE/DRUGS--4.2%
American Home Products Corp. 200,000 $ 11,525,000
- -------------------------------------------------------------------------------------------------
Gedeon Richter Rt., GDR, Registered S Shares 52,500 1,942,500
- -------------------------------------------------------------------------------------------------
Teva Pharmaceutical Industries Ltd., ADR 147,000 7,221,375
----------
20,688,875
- -------------------------------------------------------------------------------------------------
HEALTHCARE/SUPPLIES & SERVICES--1.0%
Smith & Nephew plc 1,789,052 4,959,531
- -------------------------------------------------------------------------------------------------
TECHNOLOGY--12.1%
- -------------------------------------------------------------------------------------------------
COMPUTER HARDWARE--2.5%
Canon, Inc. 94,000 2,372,951
- -------------------------------------------------------------------------------------------------
Compaq Computer Corp. 426,100 10,093,244
----------
12,466,195
- -------------------------------------------------------------------------------------------------
COMPUTER SERVICES--0.5%
Fujitsu Support & Service, Inc. 22,000 2,549,246
- -------------------------------------------------------------------------------------------------
Synstar plc(2) 85,000 162,764
---------
2,712,010
- -------------------------------------------------------------------------------------------------
COMPUTER SOFTWARE--3.7%
Cadence Design Systems, Inc.(2) 120,600 1,552,725
- -------------------------------------------------------------------------------------------------
Computer Associates International, Inc. 350,000 16,559,375
----------
18,112,100
- -------------------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT--1.2%
Alcatel 49,802 5,936,391
- -------------------------------------------------------------------------------------------------
ELECTRONICS--4.2%
Intel Corp. 129,000 6,974,063
- -------------------------------------------------------------------------------------------------
Rohm Co. 18,900 2,476,303
- -------------------------------------------------------------------------------------------------
Royal Philips Electronics NV 60,600 5,211,700
- -------------------------------------------------------------------------------------------------
Sony Corp. 65,700 6,177,387
----------
20,839,453
- -------------------------------------------------------------------------------------------------
TRANSPORTATION--2.6%
- -------------------------------------------------------------------------------------------------
AIR TRANSPORTATION--1.6%
UAL Corp.(2) 119,700 8,049,825
- -------------------------------------------------------------------------------------------------
RAILROADS & TRUCKERS--1.0%
Canadian Pacific Ltd. 218,000 5,005,989
- -------------------------------------------------------------------------------------------------
UTILITIES--0.8%
- -------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES--0.8%
Veba AG 66,525 3,777,075
-----------
Total Common Stocks (Cost $412,369,829) 484,733,629
</TABLE>
15 Oppenheimer Quest Global Value Fund, Inc.
<PAGE> 16
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
FACE MARKET VALUE
AMOUNT SEE NOTE 1
======================================================================================================
<S> <C> <C>
SHORT-TERM NOTES--1.1%
- ------------------------------------------------------------------------------------------------------
Federal Home Loan Bank, 4.68%, 6/1/99(4) (Cost $5,555,000) $5,555,000 $ 5,555,000
- ------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $417,924,829) 99.4% 490,288,629
- ------------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 0.6% 2,997,479
------- ------------
NET ASSETS 100.0% $493,286,108
======= ============
</TABLE>
Distribution of investments representing geographic diversification, as a
percentage of total investments at value, is as follows:
<TABLE>
<CAPTION>
GEOGRAPHIC DIVERSIFICATION MARKET VALUE PERCENT
- -----------------------------------------------------------------------------------
<S> <C> <C>
United States $240,083,853 49.0%
- -----------------------------------------------------------------------------------
Japan 52,504,137 10.7
- -----------------------------------------------------------------------------------
Great Britain 42,991,648 8.8
- -----------------------------------------------------------------------------------
France 38,870,410 7.9
- -----------------------------------------------------------------------------------
Sweden 17,592,712 3.6
- -----------------------------------------------------------------------------------
Germany 17,167,006 3.5
- -----------------------------------------------------------------------------------
Australia 12,448,938 2.5
- -----------------------------------------------------------------------------------
The Netherlands 10,155,804 2.1
- -----------------------------------------------------------------------------------
Brazil 8,179,429 1.6
- -----------------------------------------------------------------------------------
Israel 7,221,375 1.5
- -----------------------------------------------------------------------------------
India 6,113,914 1.3
- -----------------------------------------------------------------------------------
Finland 5,852,807 1.2
- -----------------------------------------------------------------------------------
Austria 5,604,229 1.1
- -----------------------------------------------------------------------------------
Spain 5,453,982 1.1
- -----------------------------------------------------------------------------------
Canada 5,005,989 1.0
- -----------------------------------------------------------------------------------
Denmark 4,953,758 1.0
- -----------------------------------------------------------------------------------
Italy 4,840,932 1.0
- -----------------------------------------------------------------------------------
Hong Kong 3,305,206 0.7
- -----------------------------------------------------------------------------------
Hungary 1,942,500 0.4
--------- ----
Total $490,288,629 100.0%
============ ======
</TABLE>
1. A sufficient amount of securities has been designated to cover outstanding
foreign currency exchange contracts. See Note 5 of Notes to Financial
Statements.
2. Non-income producing security.
3. Identifies issues considered to be illiquid or restricted--See Note 6 of
Notes to Financial Statements.
4. 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.
16 Oppenheimer Quest Global Value Fund, Inc.
<PAGE> 17
STATEMENT OF ASSETS AND LIABILITIES May 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
=====================================================================================================
<S> <C>
ASSETS
Investments, at value (cost $417,924,829)--see accompanying statement $490,288,629
- -----------------------------------------------------------------------------------------------------
Cash 716,707
- -----------------------------------------------------------------------------------------------------
Cash--foreign currencies (cost $3,581,273) 3,581,273
- -----------------------------------------------------------------------------------------------------
Unrealized appreciation on foreign currency
exchange contracts--Note 5 531
- -----------------------------------------------------------------------------------------------------
Receivables and other assets:
Interest and dividends 1,791,043
Shares of capital stock sold 1,449,952
Investments sold 888,224
Other 43,333
-----------
Total assets 498,759,692
====================================================================================================
LIABILITIES
Unrealized depreciation on foreign currency
exchange contracts--Note 5 197,273
- ----------------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 3,921,576
Shares of capital stock redeemed 907,925
Distribution and service plan fees 212,014
Shareholder reports 94,762
Transfer and shareholder servicing agent fees 60,128
Directors' compensation--Note 1 32,396
Custodian fees 22,276
Other 25,234
------------
Total liabilities 5,473,584
====================================================================================================
NET ASSETS $493,286,108
============
- ----------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
Par value of shares of capital stock $ 253,778
- ----------------------------------------------------------------------------------------------------
Additional paid-in capital 365,242,599
- ----------------------------------------------------------------------------------------------------
Overdistributed net investment income (2,172,399)
- ----------------------------------------------------------------------------------------------------
Accumulated net realized gain on investments and foreign currency transactions 57,818,687
- ----------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of assets
and liabilities denominated in foreign currencies 72,143,443
------------
Net assets $493,286,108
============
</TABLE>
17 Oppenheimer Quest Global Value Fund, Inc.
<PAGE> 18
STATEMENT OF ASSETS AND LIABILITIES (Unaudited) (Continued)
<TABLE>
======================================================================================================
<S> <C>
NET ASSET VALUE PER SHARE
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$311,548,741 and 15,888,329 shares of capital stock outstanding) $19.61
Maximum offering price per share (net asset value plus sales charge of 5.75% of offering
price) $20.81
- -------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales
charge) and offering price per share (based on net assets of $131,456,016 and
6,860,612 shares of capital stock outstanding) $19.16
- --------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales
charge) and offering price per share (based on net assets of $50,281,351 and
2,628,877 shares of capital stock outstanding) $19.13
</TABLE>
See accompanying Notes to Financial Statements.
18 Oppenheimer Quest Global Value Fund, Inc.
<PAGE> 19
STATEMENT OF OPERATIONS For the Six Months Ended May 31, 1999 (Unaudited)
<TABLE>
==================================================================================
<S> <C>
INVESTMENT INCOME
Dividends (net of foreign withholding taxes of $267,015) $ 4,304,401
- ----------------------------------------------------------------------------------
Interest 443,505
---------
Total income 4,747,906
- ----------------------------------------------------------------------------------
EXPENSES
Management fees--Note 4 1,797,325
- ----------------------------------------------------------------------------------
Distribution and service plan fees--Note 4:
Class A 761,831
Class B 649,981
Class C 251,497
- ----------------------------------------------------------------------------------
Administrative fees--Note 4 606,285
- ----------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 4 359,678
- ----------------------------------------------------------------------------------
Shareholder reports 112,755
- ----------------------------------------------------------------------------------
Custodian fees and expenses 33,885
- ----------------------------------------------------------------------------------
Registration and filing fees 32,796
- ----------------------------------------------------------------------------------
Directors' compensation--Note 1 29,256
- ----------------------------------------------------------------------------------
Legal, auditing and other professional fees 18,683
- ----------------------------------------------------------------------------------
Other 63,553
---------
Total expenses 4,717,525
Less expenses paid indirectly--Note 4 (2,818)
---------
Net expenses 4,714,707
- ----------------------------------------------------------------------------------
NET INVESTMENT INCOME 33,199
- ----------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments 60,784,390
Foreign currency transactions (2,460,884)
----------
Net realized gain 58,323,506
- ----------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments (12,261,454)
Translation of assets and liabilities denominated
in foreign currencies (8,718,638)
-----------
Net change (20,980,092)
----------
Net realized and unrealized gain 37,343,414
- ----------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 37,376,613
============
See accompanying Notes to Financial Statements.
</TABLE>
19 Oppenheimer Quest Global Value Fund, Inc.
<PAGE> 20
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
MAY 31, 1999 NOVEMBER 30,
(UNAUDITED) 1998
=====================================================================================================
<S> <C> <C>
OPERATIONS
Net investment income (loss) $ 33,199 $ (405,890)
- -----------------------------------------------------------------------------------------------------
Net realized gain 58,323,506 27,310,462
- -----------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation (20,980,092) 9,909,381
----------- ---------
Net increase in net assets resulting from operations 37,376,613 36,813,953
=====================================================================================================
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income:
Class A (1,314,897) (373,535)
Class B (32,741) --
Class C (8,255) --
- -----------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (16,895,584) (10,969,004)
Class B (7,564,602) (4,151,937)
Class C (2,976,679) (1,648,947)
=====================================================================================================
CAPITAL STOCK TRANSACTIONS
Net increase (decrease) in net assets
resulting from capital stock transactions--Note 2:
Class A 10,315,512 14,728,260
Class B 219,706 25,981,560
Class C (1,560,073) 10,484,959
=====================================================================================================
NET ASSETS
Total increase 17,559,000 70,865,309
- -----------------------------------------------------------------------------------------------------
Beginning of period 475,727,108 404,861,799
----------- -----------
End of period (including overdistributed net investment
income of $2,172,399 and $849,705, respectively) $493,286,108 $475,727,108
============ ============
</TABLE>
See accompanying Notes to Financial Statements.
20 Oppenheimer Quest Global Value Fund, Inc.
<PAGE> 21
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A
--------------------------------------------------------------------
SIX MONTHS
ENDED
MAY 31,
1999 YEAR ENDED NOVEMBER 30,
(UNAUDITED) 1998 1997 1996 1995(1) 1994
===========================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA
Net asset value, beginning of period $19.37 $18.50 $16.48 $15.49 $14.16 $13.54
- ---------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .02 .03 .03 .03 .11(2) .01(2)
Net realized and unrealized gain 1.42 1.63 2.55 2.33 2.45 1.10
----- ----- ----- ----- ----- -----
Total income from
investment operations 1.44 1.66 2.58 2.36 2.56 1.11
- ---------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income (.09) (.03) (.01) (.13) -- --
Distributions from net realized gain (1.11) (.76) (.55) (1.24) (1.23) (.49)
----- ---- ---- ----- ----- ----
Total dividends and distributions to shareholders (1.20) (.79) (.56) (1.37) (1.23) (.49)
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $19.61 $19.37 $18.50 $16.48 $15.49 $14.16
====== ====== ====== ====== ====== ======
===========================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(4) 8.18% 9.38% 16.24% 16.60% 19.75% 8.37%
===========================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(in thousands) $311,549 $295,596 $267,636 $192,000 $161,693 $148,044
- ---------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $305,649 $291,554 $233,020 $174,838 $154,288 $148,461
- ---------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) 0.20%(5) 0.09% 0.17% 0.19% 0.77% 0.05%(6)
Expenses(7) 1.76%(5) 1.76% 1.73% 1.88% 1.88% 1.92%(6)
- ---------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(8) 51% 59% 32% 48% 76% 70%
</TABLE>
1. On November 22, 1995, OppenheimerFunds, Inc. became the investment advisor to
the Fund.
2. Based on average shares outstanding for the period.
3. Less than $0.005 per share.
4. Assumes a $1,000 hypothetical initial investment on the business day before
the first day of the fiscal period (or inception of offering), with all
dividends and distributions reinvested in additional shares on the reinvestment
date, and redemption at the net asset value calculated on the last business day
of the fiscal period. Sales charges are not reflected in the total returns.
Total returns are not annualized for periods of less than one full year.
21 Oppenheimer Quest Global Value Fund, Inc.
<PAGE> 22
FINANCIAL HIGHLIGHTS (Continued)
<TABLE>
<CAPTION>
CLASS B
----------------------------------------------------------------------
SIX MONTHS
ENDED
MAY 31,
1999 YEAR ENDED NOVEMBER 30,
(UNAUDITED) 1998 1997 1996 1995(1) 1994
============================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA
Net asset value, beginning of period $18.92 $18.14 $16.25 $15.30 $14.07 $13.52
- ----------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.03) (.06) (.04) -- .02(2) (.06)(2)
Net realized and unrealized gain 1.38 1.60 2.48 2.26 2.44 1.10
----- ----- ----- ----- ----- ----
Total income from
investment operations 1.35 1.54 2.44 2.26 2.46 1.04
- ----------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from
net investment income --(3) -- -- (.07) -- --
Distributions from net realized gain (1.11) (.76) (.55) (1.24) (1.23) (.49)
------ ----- ----- ----- ----- -----
Total dividends and
distributions to shareholders (1.11) (.76) (.55) (1.31) (1.23) (.49)
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $19.16 $18.92 $18.14 $16.25 $15.30 $14.07
====== ====== ====== ====== ====== ======
============================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(4) 7.87% 8.89% 15.61% 16.03% 19.12% 7.84%
============================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(in thousands) $131,456 $129,071 $98,457 $38,634 $16,980 $10,268
- ----------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $130,367 $118,617 $67,317 $27,351 $13,908 $ 5,982
- ----------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) (0.31)%(5) (0.41)% (0.34)% (0.03)% 0.16% (0.44)%(6)
Expenses(7) 2.26%(5) 2.27% 2.24% 2.41% 2.47% 2.50%(6)
- ----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(8) 51% 59% 32% 48% 76% 70%
</TABLE>
5. Annualized.
6. 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. 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.
22 Oppenheimer Quest Global Value Fund, Inc.
<PAGE> 23
<TABLE>
<CAPTION>
CLASS C
-----------------------------------------------------------------------------
SIX MONTHS
ENDED
MAY 31,
1999 YEAR ENDED NOVEMBER 30,
(UNAUDITED) 1998 1997 1996 1995(1) 1994
==========================================================================================================================
PER SHARE OPERATING DATA
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $18.89 $18.11 $16.22 $15.26 $14.06 $13.52
- --------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.03) (.06) (.03) (.04) --(2) (.08)(2)
Net realized and unrealized gain 1.38 1.60 2.47 2.29 2.43 1.11
---- ---- ---- ---- ---- ----
Total income from
investment operations 1.35 1.54 2.44 2.25 2.43 1.03
- --------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income --(3) -- -- (.05) -- --
Distributions from net realized gain (1.11) (.76) (.55) (1.24) (1.23) (.49)
----- ---- ---- ----- ----- ----
Total dividends and distributions
to shareholders (1.11) (.76) (.55) (1.29) (1.23) (.49)
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $19.13 $18.89 $18.11 $16.22 $15.26 $14.06
====== ====== ====== ====== ====== ======
==========================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE(4) 7.88% 8.90% 15.64% 16.04% 18.90% 7.77%
==========================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(in thousands) $50,281 $51,060 $38,769 $16,149 $4,373 $2,415
- --------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $50,432 $47,322 $26,735 $10,152 $3,834 $1,150
- --------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income (loss) (.31)%(5) (0.41)% (0.34)% (0.07)% 0.03% (0.59)%(6)
Expenses(7) 2.26%(5) 2.27% 2.24% 2.43% 2.60% 2.66%(6)
- --------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(8) 51% 59% 32% 48% 76% 70%
</TABLE>
7. Beginning in fiscal 1995, the expense ratio reflects the effect of gross
expenses paid indirectly by the Fund. Prior year expenses have not been
adjusted.
8. The lesser of purchases or sales of portfolio securities for a
period, divided by the monthly average of the market value of portfolio
securities owned during the period. Securities with a maturity or expiration
date at the time of acquisition of one year or less are excluded from the
calculation. Purchases and sales of investment securities (excluding short-term
securities) for the period ended May 31, 1999 were $239,677,587 and
$247,028,250, respectively.
See accompanying Notes to Financial Statements.
23 Oppenheimer Quest Global Value Fund, Inc.
<PAGE> 24
NOTES TO FINANCIAL STATEMENTS(Unaudited)
================================================================================
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. 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. Foreign currency exchange contracts are valued based on the
closing prices of the foreign 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.
24 Oppenheimer Quest Global Value Fund, Inc.
<PAGE> 25
================================================================================
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.
- --------------------------------------------------------------------------------
DIRECTORS' COMPENSATION. The Fund has adopted a nonfunded retirement plan for
the Fund's independent directors. Benefits are based on years of service and
fees paid to each director during the years of service. During the six months
ended May 31, 1999, a provision of $19,580 was made for the Fund's projected
benefit obligations, resulting in an accumulated liability of $32,017 as of May
31, 1999.
- --------------------------------------------------------------------------------
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.
25 Oppenheimer Quest Global Value Fund, Inc.
<PAGE> 26
NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued)
================================================================================
1. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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>
SIX MONTHS ENDED MAY 31, 1999 YEAR ENDED NOVEMBER 30, 1998
----------------------------- ------------------------------
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A:
Sold 2,873,171 $ 54,366,957 4,910,696 $ 93,437,975
Dividends and
distributions reinvested 1,009,187 17,630,486 626,544 10,983,313
Redeemed (3,250,686) (61,681,931) (4,750,300) (89,693,028)
------------ ------------ ------------ ------------
Net increase 631,672 $ 10,315,512 786,940 $ 14,728,260
============ ============ ============ ============
- ---------------------------------------------------------------------------------------------------------------------------
Class B:
Sold 557,609 $ 10,404,708 2,090,654 $ 38,937,146
Dividends and
distributions reinvested 419,286 7,173,981 227,806 3,918,313
Redeemed (938,382) (17,358,983) (923,753) (16,873,899)
------------ ------------ ------------ ------------
Net increase 38,513 $ 219,706 1,394,707 $ 25,981,560
============ ============ ============ ============
- ---------------------------------------------------------------------------------------------------------------------------
Class C:
Sold 312,744 $ 5,797,118 1,153,408 $ 21,397,342
Dividends and
distributions reinvested 158,685 2,710,342 88,697 1,522,922
Redeemed (545,947) (10,067,533) (679,309) (12,435,305)
------------ ------------ ------------ ------------
Net increase (decrease) (74,518) $ (1,560,073) 562,796 $ 10,484,959
============ ============ ============ ============
</TABLE>
26 Oppenheimer Quest Global Value Fund, Inc.
<PAGE> 27
================================================================================
3. UNREALIZED GAINS AND LOSSES ON INVESTMENTS
As of May 31, 1999, net unrealized appreciation on investments of $72,363,800
was composed of gross appreciation of $88,025,877, and gross depreciation of
$15,662,077.
================================================================================
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 Fund's
management fee for the six months ended May 31, 1999 was 0.74% of average annual
net assets for each class of shares.
The Manager pays OpCap Advisors (the Sub-Advisor) based on the
fee schedule set forth in the Prospectus. For the six months ended May 31, 1999,
the Manager paid $812,451 to the Sub-Advisor.
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 six months ended May 31, 1999, commissions (sales charges
paid by investors) on sales of Class A shares totaled $405,796, of which
$124,164 was retained by OppenheimerFunds Distributor, Inc. (OFDI), a subsidiary
of the Manager, as general distributor, and by an affiliated broker/dealer.
Sales charges advanced to broker/dealers by OFDI on sales of the Fund's Class A,
Class B and Class C shares totaled $55,252, $280,178 and $43,213, respectively.
Amounts paid to an affiliated broker/dealer for Class B and Class C shares were
$27,635 and $1,140, respectively. During the six months ended May 31, 1999, OFDI
received contingent deferred sales charges of $190,238 and $8,055, 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
Oppenheimer funds. The Fund pays OFS an annual maintenance fee of $18.00 for
each Fund shareholder account and reimburses OFS for its out-of-pocket expenses.
During the six months ended May 31, 1999, the Fund paid OFS $347,426.
Expenses paid indirectly represent a reduction of custodian fees
for earnings on cash balances maintained by the Fund.
27 Oppenheimer Quest Global Value Fund, Inc.
<PAGE> 28
NOTES TO FINANCIAL STATEMENTS(Unaudited) (Continued)
================================================================================
4. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES(CONTINUED)
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. Each fee is 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 compensate itself for its other expenditures under the Plan. During
the six months ended May 31, 1999, OFDI paid $19,816 to an affiliated
broker/dealer as compensation for Class A personal service and maintenance
expenses and retained $252,430 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 or Class C shares,
determined as of the close of each regular business day. During the six months
ended May 31, 1999, OFDI paid $5,429 and $2,290, respectively, to an affiliated
broker/dealer as compensation for Class B and Class C personal service and
maintenance expenses and retained $522,575 and $92,624, respectively, as
compensation 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. As of May
31, 1999, OFDI had incurred excess distribution and servicing costs of
$2,570,632 for Class B and $498,295 for Class C.
28 Oppenheimer Quest Global Value Fund, Inc.
<PAGE> 29
================================================================================
5. FOREIGN CURRENCY CONTRACTS
A foreign currency exchange contract is a commitment to purchase or sell a
foreign currency at a future date, at a negotiated rate. The Fund may enter into
foreign currency exchange contracts for operational purposes and to seek to
protect against adverse exchange rate fluctuation. Risks to the Fund include the
potential inability of the counterparty to meet the terms of the contract.
The net U.S. dollar value of foreign currency underlying all
contractual commitments held by the Fund and the resulting unrealized
appreciation or depreciation are determined using foreign currency exchange
rates as provided by a reliable bank, dealer or pricing service. Unrealized
appreciation and depreciation on foreign currency contracts are reported in the
Statement of Assets and Liabilities.
The Fund may realize a gain or loss upon the closing or
settlement of the foreign currency transactions. Realized gains and losses are
reported with all other foreign currency gains and losses in the Statement of
Operations.
Securities denominated in foreign currency to cover net exposure
on outstanding foreign currency contracts are noted in the Statement of
Investments where applicable.
As of May 31, 1999, the Fund had outstanding foreign currency contracts as
follows:
<TABLE>
<CAPTION>
EXPIRATION CONTRACT VALUATION AS OF UNREALIZED UNREALIZED
CONTRACT DESCRIPTION DATES AMOUNTS (000S) MAY 31, 1999 APPRECIATION DEPRECIATION
- ---------------------------------------------------------------------------------------------------------------
CONTRACTS TO PURCHASE
- ---------------------
<S> <C> <C> <C> <C> <C>
British Pound Sterling (GPB) 6/2/99 1,306 GPB $ 2,093,342 $526 $ --
Euro (EUR) 6/1/99 409 EUR 427,657 5 --
--- --------
531 --
--- --------
CONTRACTS TO SELL
- -----------------
Euro (EUR) 6/1/99 1,807 EUR 1,889,597 -- 2,553
Japanese Yen (JPY) 8/19/99 1,245,054 JPY 10,412,807 -- 184,808
Japanese Yen (JPY) 6/1/99 279,465 JPY 2,313,066 -- 9,912
--- --------
-- 197,273
--- --------
Total Unrealized Appreciation and Depreciation $531 $197,273
==== ========
</TABLE>
29 Oppenheimer Quest Global Value Fund, Inc.
<PAGE> 30
NOTES TO FINANCIAL STATEMENTS(Unaudited) (Continued)
================================================================================
6. ILLIQUID AND RESTRICTED SECURITIES
As of May 31, 1999, 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 as of May 31, 1999 was $2,461.
================================================================================
7. 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 six months
ended May 31, 1999.
30 Oppenheimer Quest Global Value Fund, Inc.
<PAGE> 31
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
Robert G. Galli, Director
Lacy B. Herrmann, Director
George Loft, Director
Robert C. Doll, Jr., Vice President
Brian W. Wixted, 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 SHAREHOLDER OppenheimerFunds Services
SERVICING AGENT
================================================================================
CUSTODIAN OF Citibank, N.A.
PORTFOLIO SECURITIES
================================================================================
INDEPENDENT ACCOUNTANTS PricewaterhouseCoopers LLP
The financial statements included herein have been
taken from the records of the Fund without
examination of the independent accountants. This is
a copy of a report to shareholders of Oppenheimer
Quest Global Value Fund, Inc. This report must be
preceded or accompanied by a Prospectus of
Oppenheimer Quest Global Value Fund, Inc. For
material information concerning the Fund, see the
Prospectus. Shares of Oppenheimer funds are not
deposits or obligations of any bank, are not
guaranteed by any bank, are not insured by the FDIC
or any other agency, and involve investment risks,
including the possible loss of the principal amount
invested.
31 Oppenheimer Quest Global Value Fund, Inc.
<PAGE> 32
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R9O254.001.0599 July 30, 1999
