[PHOTO]
================================================================================
Semiannual Report May 31, 2000
Oppenheimer
Quest Global Value Fund, Inc.(SM)
[LOGO] Oppenheimer Funds(R)
The Right Way to Invest
<PAGE>
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REPORT HIGHLIGHTS
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CONTENTS
1 President's Letter
3 An Interview
with Your Fund's
Managers
9 Financial
Statements
28 Officers and Directors
Worldwide, activity in the equity markets for the past six months was dominated
by investors' attitudes toward high-tech sectors, such as technology,
telecommunications and biotech.
The Fund increased its allocation to foreign stocks during the period, in
anticipation of greater capital appreciation from opportunities overseas.
We seek companies that we believe represent low economic risk and may provide
considerable upside potential once investors recognize or reconsider their
worth.
-----------------------------
Cumulative
Total Returns*
For the 6-Month Period
Ended 5/31/00
Class A
Without With
Sales Chg. Sales Chg.
-----------------------------
2.32% -3.56%
Class B
Without With
Sales Chg. Sales Chg.
-----------------------------
2.02% -2.07%
Class C
Without With
Sales Chg. Sales Chg.
-----------------------------
2.01% 1.20%
*See Notes on page 7 for further details.
<PAGE>
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PRESIDENT'S LETTER
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-----------------------------
[PHOTO]
Bridget A. Macaskill
President
Oppenheimer
Quest Global
Value Fund, Inc.
-----------------------------
Dear Shareholder,
The 1990s, although not free of volatility, were distinguished by an overall
bull market. In contrast, the year 2000 has been characterized so far as a
relatively difficult investment environment with high levels of volatility.
As we entered the year, a vital concern weighing on investors' minds was
growing evidence of a trend toward higher inflation. While productivity
improvements and various economic forces helped keep inflation low over the last
decade, the year 2000 has seen upward pressure on wages and some prices. That's
primarily because the U.S. economy has been growing at a vigorous pace, creating
a labor shortage for businesses and high spending levels among consumers. In
response, since the summer of 1999, the Federal Reserve Board raised short-term
interest rates six times through June 30, 2000, in an attempt to forestall
inflationary pressures.
During that period, higher interest rates adversely affected many stocks
and bonds. In a dramatic decline, previously high-flying technology stocks
generally fell to more reasonable valuations. At the same time, long-neglected
value stocks began to attract investor interest. The result: narrowing of the
valuation gap between growth stocks and value stocks. Finally, in the bond
market, higher interest rates caused prices of most fixed income securities to
fall.
At OppenheimerFunds, we were not surprised by these developments, many of
which we anticipated in our recent letters to investors. What did concern us was
that, prior to the April 2000 correction, we began to see disturbing signs that
short-term trading was taking place not just in technology stocks, but also in
mutual funds. Prudent investors will understand our concern: most stock and bond
funds are carefully designed as long-term investments to help individuals and
families progress toward significant financial goals. In general, short-term
trading is risky and may compromise a well planned financial strategy. It may
also result in unforeseen adverse consequences, such as unnecessarily high tax
bills.
1 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
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PRESIDENT'S LETTER
--------------------------------------------------------------------------------
We continue to believe that maintaining a long-term perspective and
practicing diversification are the fundamental drivers of consistent performance
over time. These strategies have helped individual investors, as well as
professional investors, weather declining markets and participate in rising
ones. On the following pages, your portfolio manager discusses the long-term
strategies and particular investment decisions that affected your fund during
the reporting period.
You can remain confident that our portfolio managers will continue to
monitor areas of opportunity in the arenas in which your fund invests, as the
effects of today's changing investment environment take hold. Knowing what's
going on in the world's economies, markets and companies--and making investment
decisions designed to try to take advantage of them over the long term--is
central to what makes OppenheimerFunds The Right Way to Invest.
Sincerely,
/s/ Bridget A. Macaskill
Bridget A. Macaskill
June 21, 2000
These general market views represent opinions of OppenheimerFunds, Inc. and are
not intended to predict or depict performance of any particular fund. Specific
discussion, as it applies to your Fund, is contained in the pages that follow.
Stocks and bonds have different types of investment risks; stocks are subject to
market volatility and bonds are subject to credit and interest rate risks.
2 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
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AN INTERVIEW WITH YOUR FUND'S MANAGERS
--------------------------------------------------------------------------------
---------------------
[PHOTO]
Portfolio Management
Team (l o r)
Elisa Mazen
Richard Glasebrook
---------------------
How did the Fund perform during the six months that ended May 31, 2000?
The first half of fiscal 2000 has been a challenging period for Oppenheimer
Quest Global Value Fund, Inc.(SM) and for equity markets both in the United
States and overseas. The market, which experienced widespread volatility during
this time, was frequently hostile to value stocks. The Fund's performance during
this reporting period reflects the out-of-favor status of value investing.
What happened to markets worldwide during the past six months?
Domestic and international markets began the six-month period with strong gains,
then retreated in the middle months. As the period came to a close, markets were
characterized by considerable day-to-day volatility. The initial rally was led
by enormous gains among technology sectors between December and March, peaking
in February. After that, concerns about stretched valuations in the technology
stocks unleashed a broad selloff worldwide in most markets which had a sizable
technology sector. The effect was particularly pronounced in the United States.
Once the valuations of most price-inflated technology stocks had returned
to more normal levels, markets around the globe began to recover but remained
quite volatile, especially in the United States. The Morgan Stanley Capital
International (MSCI) World Index gained just 5.4% during the six-month
period.(1)
(1). Morgan Stanley Capital International EAFE Index is an unmanaged index of
the performance of securities listed on 20 of the principal stock markets in
Europe, Australia and the Far East, and is widely recognized as a measure of
international stock performance.
3 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
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AN INTERVIEW WITH YOUR FUND'S MANAGERS
--------------------------------------------------------------------------------
-------------------------
"Even after several
weeks of price
declines, we believe
that, overall, the
United States'
equity market is
overvalued."
-------------------------
How did these events affect the Fund?
First, as value investors, we owned few technology stocks during the period.
Prices of technology issues in many markets had become so elevated that we felt
they posed unwarranted economic risk. As investors shied away from technology
stocks beginning in mid-March, the Fund's relatively small allocation to
technology proved to its advantage. When investor interest later shifted toward
"old economy" and less expensive stocks as an alternative to the capricious
technology sector, several of our largest holdings--primarily American
companies--posted strong gains.
Which stocks contributed the most to the Fund's results?
The period brought positive returns for a wide variety of holdings, both in
terms of geography and industry sector. The international companies that
performed well for the Fund included French and Indian telecommunications
companies, a German electronics and engineering company, and an Australian media
concern. In addition, strong performers for the U.S. holdings included two
pharmaceutical businesses that we had purchased during 1999 when their price
earnings ratios were among the lowest in the industry. In our view, both
companies are poised to deliver a strong product line to the market.
What areas of the portfolio detracted from performance?
On the domestic front, the detractors varied from McDonald's Corp. and Du Pont
(E.I.) de Nemours & Co. to Wells Fargo Co. The poor results for McDonald's can
be attributed to investors' concerns about slow growth of its overseas
operations and weakness in the euro, the currency introduced into several
European countries in 1999. Since Europe is McDonald's second largest market,
the euro's decline translated to reduced earnings for the company. At DuPont, a
failure to adequately communicate the company's strengths and plans contributed
to skepticism about the stock. For Wells Fargo, the situation might best be
described as "investor misperception." Unlike some other
(2). See Notes on page 7 for further details.
4 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
--------------------------------
Average Annual
Total Returns
For the Periods Ended 6/30/00(2)
Class A Since
1-Year 5-Year Inception
--------------------------------
3.56% 13.34% 10.89%
Class B Since
1-Year 5-Year Inception
--------------------------------
4.94% 13.88% 12.99%
Class C Since
1-Year 5-Year Inception
--------------------------------
8.40% 14.11% 12.88%
Because of ongoing market
volatility, the Fund's
performance is subject to
substantial short-term
fluctuations and current
performance may be less than the
results shown.
--------------------------------
financial concerns, Wells Fargo's business was only minimally impacted by rising
interest rates during the period. Nonetheless, investors shunned the stock.
Overseas, the Fund was hurt by Spanish stocks, retailers in the United
Kingdom and, at least initially, financial stocks in several countries. The Fund
had an above-average emphasis on Spanish stocks but did not own the ones that
performed best. In the U.K., our retail stocks suffered when a giant discount
retailer known as a tough competitor announced its entry into that marketplace.
And our foreign financial stocks were generally overlooked by investors
intensely focused on technology. However, when investor sentiment changed during
the second half of the period, many of the financial stocks rebounded nicely.
What is your outlook for global markets?
At this juncture, we believe that, overall, equities in the United States are
still too pricey, even after several weeks of volatility and general price
declines. We foresee more attractive investment opportunities over seas, in
places such as Japan and Europe. Throughout Europe, lower rates of inflation,
declining unemployment rates and lower taxes are proving beneficial to
businesses and investors. In addition, easier cross-border flow of workers and
capital may contribute to increased mergers, acquisitions and other activities
that could boost stock prices in Europe.
That said, we should point out that we are less concerned about the
prospects for geographic locales than the strengths of individual businesses. We
will be looking to identify new investment opportunities among companies that,
in our view, are undervalued global leaders generating high returns on capital.
We seek companies that we believe represent low economic risk and may provide
considerable upside potential once investors recognize or reconsider their
worth. As always, we will be cautious in putting our cash to work, which is just
one reason why Oppenheimer Quest Global Value Fund, Inc. is an important part of
The Right Way to Invest.
5 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
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AN INTERVIEW WITH YOUR FUND'S MANAGERS
--------------------------------------------------------------------------------
----------------------
Regional Allocation(3)
[PIE GRAPH]
United States/
Canada 44.0%
Europe 39.2
Asia 12.3
Emerging
Europe 2.3
Middle East/
Africa 2.2
----------------------
Top Ten Country Holdings(3)
--------------------------------------------------------------------------------
United States 42.6%
--------------------------------------------------------------------------------
Great Britain 15.6
--------------------------------------------------------------------------------
Japan 10.3
--------------------------------------------------------------------------------
France 6.9
--------------------------------------------------------------------------------
Sweden 6.4
--------------------------------------------------------------------------------
Spain 3.4
--------------------------------------------------------------------------------
Germany 2.6
--------------------------------------------------------------------------------
Israel 2.2
--------------------------------------------------------------------------------
Switzerland 2.0
--------------------------------------------------------------------------------
Canada 1.4
Top Ten Stock Holdings(4)
--------------------------------------------------------------------------------
McDonald's Corp. 3.2%
--------------------------------------------------------------------------------
Freddie Mac 3.2
--------------------------------------------------------------------------------
Wells Fargo Co. 2.9
--------------------------------------------------------------------------------
DuPont (E.I.) de Nemours & Co. 2.5
--------------------------------------------------------------------------------
Shiseido Co., Ltd. 2.5
--------------------------------------------------------------------------------
XL Capital Ltd., Cl. A 2.4
--------------------------------------------------------------------------------
Teva Pharmaceutical Industries Ltd., ADR 2.3
--------------------------------------------------------------------------------
Lloyds TSB group plc 2.1
--------------------------------------------------------------------------------
Novartis AG 2.1
--------------------------------------------------------------------------------
Alcatel SA 2.1
(3). Portfolio is subject to change. Percentages are as of May 31, 2000, and are
based on total market value of investments.
(4). Portfolio is subject to change. Percentages are as of May 31, 2000, and are
based on total market value of common stock.
6 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
--------------------------------------------------------------------------------
NOTES
--------------------------------------------------------------------------------
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. For quarterly
updates on the Fund's performance, please contact your financial advisor, call
us at 1.800.525.7048 or visit our website at www.oppenheimerfunds.com.
OppenheimerFunds, Inc. became the Fund's advisor on 11/22/95. The Fund's
sub-advisor is OpCap Advisors, which was the Fund's advisor prior to 11/22/95.
The portfolio manager is employed by the Fund's sub-advisor.
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. The Fund's total returns shown do
not show the effects of income taxes on an individual's investment. Taxes may
reduce your actual investment returns on income or gains paid by the Fund or any
gains you may realize if you sell your shares.
Class A shares were first publicly offered on 7/2/90. Unless otherwise noted,
Class A returns include the current maximum initial sales charge of 5.75%. Class
A shares are subject to a maximum annual 0.25% asset-based sales charge, which
is currently subject to a voluntary rate reduction.
Class B shares were first publicly offered on 9/1/93. Unless otherwise noted,
Class B returns include the applicable contingent deferred sales charges of 5%
(1-year) and 1% (5-year). Because Class B shares convert to Class A shares 72
months after purchase, the "life of class" return for Class B uses Class A
performance for the period after conversion. Class B shares are subject to an
annual 0.75% asset-based sales charge.
Class C shares were first publicly offered on 9/1/93. Unless otherwise noted,
Class C returns include the contingent deferred sales charge of 1% for the
one-year period. Class C shares are subject to an annual 0.75% asset-based sales
charge.
An explanation of the calculation of performance is in the Fund's Statement of
Additional Information.
7 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
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Financials
--------------------------------------------------------------------------------
8 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS May 31, 2000 / Unaudited
--------------------------------------------------------------------------------
Market Value
Shares See Note 1
================================================================================
Common Stocks--95.7%
--------------------------------------------------------------------------------
Basic Materials--4.4%
--------------------------------------------------------------------------------
Chemicals--2.4%
DuPont (E.I.) de Nemours & Co. 250,000 $12,250,000
--------------------------------------------------------------------------------
Paper--2.0%
Buhrmann NV 170,000 5,147,534
--------------------------------------------------------------------------------
Champion International Corp. 72,000 5,256,000
-----------
10,403,534
--------------------------------------------------------------------------------
Capital Goods--15.9%
--------------------------------------------------------------------------------
Aerospace/Defense--1.9%
Boeing Co. 245,000 9,570,313
--------------------------------------------------------------------------------
Electrical Equipment--3.2%
Emerson Electric Co. 38,000 2,242,000
--------------------------------------------------------------------------------
Invensys plc 1,216,220 4,181,133
--------------------------------------------------------------------------------
Siemens AG 69,000 10,059,962
-----------
16,483,095
--------------------------------------------------------------------------------
Industrial Services--1.2%
Rentokil Initial plc 2,070,000 4,641,044
--------------------------------------------------------------------------------
Waste Management, Inc. 81,200 1,654,450
-----------
6,295,494
--------------------------------------------------------------------------------
Manufacturing--9.6%
Canon Sales Co., Inc. 397,500 5,703,622
--------------------------------------------------------------------------------
ITT Industries, Inc. 160,000 5,530,000
--------------------------------------------------------------------------------
Minnesota Mining & Manufacturing Co. 59,000 5,059,250
--------------------------------------------------------------------------------
Shiseido Co. Ltd. 882,000 12,139,531
--------------------------------------------------------------------------------
Societe BIC SA 142,358 6,272,404
--------------------------------------------------------------------------------
Textron, Inc. 104,000 6,526,000
--------------------------------------------------------------------------------
Williams plc 1,471,500 8,357,914
-----------
49,588,721
--------------------------------------------------------------------------------
Communication Services--12.8%
--------------------------------------------------------------------------------
Telecommunications: Long Distance--5.5%
AT&T Corp. 20,000 693,750
--------------------------------------------------------------------------------
British Telecommunications plc 313,800 4,556,693
--------------------------------------------------------------------------------
Fujitsu Ltd. 197,000 5,580,218
--------------------------------------------------------------------------------
Mahanagar Telephone Nigam Ltd., GDR 240,000 2,478,000
--------------------------------------------------------------------------------
Sprint Corp. (Fon Group) 89,000 5,384,500
--------------------------------------------------------------------------------
Telecomunicacoes Brasileiras SA 600,000 52,917
--------------------------------------------------------------------------------
Telefonaktiebolaget LM Ericsson AB, Cl. B 412,000 8,342,394
--------------------------------------------------------------------------------
WorldCom, Inc. 30,000 1,128,750
-----------
28,217,222
9 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS Unaudited / Continued
--------------------------------------------------------------------------------
Market Value
Shares See Note 1
--------------------------------------------------------------------------------
Telephone Utilities--4.9%
Bell Atlantic Corp. 154,000 $ 8,142,750
--------------------------------------------------------------------------------
Tele Norte Leste Participacoes SA (Telemar),
Preference 70,255 1,385
--------------------------------------------------------------------------------
Telecom Italia SpA, RNC Shares 1,097,000 6,765,429
--------------------------------------------------------------------------------
Telefonica SA(1) 279,100 5,694,422
--------------------------------------------------------------------------------
Telekomunikacja Polska SA 645,000 4,498,875
-----------
25,102,861
--------------------------------------------------------------------------------
Telecommunications: Wireless--2.4%
NTT Docomo, Inc. 210 5,421,871
--------------------------------------------------------------------------------
Panafon Hellenic Telecom Co., GDR(1) 472,410 5,692,541
--------------------------------------------------------------------------------
Panafon Hellenic Telecom SA(1) 94,900 1,143,545
--------------------------------------------------------------------------------
Telesp Celular Participacoes SA 40 1
-----------
12,257,958
--------------------------------------------------------------------------------
Consumer Cyclicals--7.3%
--------------------------------------------------------------------------------
Autos & Housing--0.8%
Electrolux AB, Series B Free 230,000 3,878,842
--------------------------------------------------------------------------------
Leisure & Entertainment--0.1%
Carnival Corp. 18,800 509,950
--------------------------------------------------------------------------------
Retail: Specialty--5.8%
Boots Co. plc 913,000 7,601,162
--------------------------------------------------------------------------------
FamilyMart Co. 241,800 9,633,824
--------------------------------------------------------------------------------
Great Universal Stores (The) plc 1,558,000 9,675,926
--------------------------------------------------------------------------------
Hornbach Holding AG 83,233 3,049,016
-----------
29,959,928
--------------------------------------------------------------------------------
Textile/Apparel & Home Furnishings--0.6%
Yue Yuen Industrial Holdings Ltd. 1,676,000 3,301,668
--------------------------------------------------------------------------------
Consumer Staples--8.3%
--------------------------------------------------------------------------------
Beverages--0.3%
Mikuni Coca-Cola Bottling Ltd. 114,000 1,610,346
--------------------------------------------------------------------------------
Entertainment--3.4%
McDonald's Corp. 445,900 15,968,794
--------------------------------------------------------------------------------
News Corp. Ltd., Sponsored ADR, Preference 33,800 1,324,538
-----------
17,293,332
--------------------------------------------------------------------------------
Food--1.7%
Groupe Danone 37,600 8,755,917
--------------------------------------------------------------------------------
Food & Drug Retailers--1.5%
Kroger Co.(1) 386,000 7,671,750
10 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
Market Value
Shares See Note 1
--------------------------------------------------------------------------------
Household Goods--1.4%
Reckitt Benckiser plc 670,742 $ 7,348,751
--------------------------------------------------------------------------------
Energy--2.6%
--------------------------------------------------------------------------------
Energy Services--0.3%
Anadarko Petroleum Corp. 31,800 1,687,388
--------------------------------------------------------------------------------
Oil: Domestic--2.3%
Chevron Corp. 86,000 7,949,625
--------------------------------------------------------------------------------
Tosco Corp. 20,000 612,500
--------------------------------------------------------------------------------
Unocal Corp. 70,000 2,690,625
--------------------------------------------------------------------------------
USX-Marathon Group 15,400 418,688
------------
11,671,438
--------------------------------------------------------------------------------
Financial--23.6%
--------------------------------------------------------------------------------
Banks--13.6%
Banco Popular Espanol SA 265,600 8,448,688
--------------------------------------------------------------------------------
Banque Nationale de Paris 73,000 6,549,994
--------------------------------------------------------------------------------
Empresa Nacional de Comercio Redito e
Participacoes SA, Preference(1),(2) 3,050,000 7,853
--------------------------------------------------------------------------------
FleetBoston Financial Corp. 90,000 3,403,125
--------------------------------------------------------------------------------
Lloyds TSB Group plc 963,400 10,425,556
--------------------------------------------------------------------------------
M&T Bank Corp. 16,000 6,920,000
--------------------------------------------------------------------------------
Nordic Baltic Holding AB(1) 1,117,952 7,151,671
--------------------------------------------------------------------------------
Royal Bank of Scotland Group plc (The) 330,600 5,435,626
--------------------------------------------------------------------------------
Skandinaviska Enskilda Banken (SEB) 390,000 4,240,541
--------------------------------------------------------------------------------
State Bank of India, GDR 316,100 2,773,778
--------------------------------------------------------------------------------
Wells Fargo Co. 320,000 14,480,000
------------
69,836,832
--------------------------------------------------------------------------------
Diversified Financial--7.1%
Citigroup, Inc. 100,000 6,218,750
--------------------------------------------------------------------------------
Freddie Mac 349,100 15,534,950
--------------------------------------------------------------------------------
Household International, Inc. 165,000 7,755,000
--------------------------------------------------------------------------------
John Hancock Financial Services, Inc.(1) 54,000 1,204,875
--------------------------------------------------------------------------------
Nikko Securities Co. Ltd. 636,000 5,894,850
------------
36,608,425
--------------------------------------------------------------------------------
Insurance--2.9%
Scor 70,780 2,888,220
--------------------------------------------------------------------------------
XL Capital Ltd., Cl. A 198,719 11,823,840
------------
14,712,060
--------------------------------------------------------------------------------
Healthcare--11.1%
--------------------------------------------------------------------------------
Healthcare/Drugs--10.2%
American Home Products Corp. 162,800 8,770,850
11 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS Unaudited / Continued
--------------------------------------------------------------------------------
Market Value
Shares See Note 1
--------------------------------------------------------------------------------
Healthcare/Drugs Continued
Astra Zeneca Group plc 126,000 $ 5,263,397
--------------------------------------------------------------------------------
Bristol-Myers Squibb Co. 33,300 1,833,581
--------------------------------------------------------------------------------
Gedeon Richter Ltd., GDR(3) 500 29,125
--------------------------------------------------------------------------------
Novartis AG 6,950 10,209,735
--------------------------------------------------------------------------------
Pharmacia Corp.(1) 169,920 8,709,979
--------------------------------------------------------------------------------
Pharmacia Corp. 121,100 6,289,631
--------------------------------------------------------------------------------
Teva Pharmaceutical Industries Ltd., ADR 210,000 11,313,750
-------------
52,420,048
--------------------------------------------------------------------------------
Healthcare/Supplies & Services--0.9%
Smith & Nephew plc 1,789,052 4,759,891
--------------------------------------------------------------------------------
Technology--8.1%
--------------------------------------------------------------------------------
Computer Hardware--1.7%
Canon, Inc. 134,000 6,172,649
--------------------------------------------------------------------------------
Compaq Computer Corp. 16,100 422,625
--------------------------------------------------------------------------------
Dell Computer Corp.(1) 13,200 569,250
--------------------------------------------------------------------------------
International Business Machines Corp. 13,000 1,395,063
-------------
8,559,587
--------------------------------------------------------------------------------
Computer Services--0.2%
Unisys Corp.(1) 37,000 1,003,625
--------------------------------------------------------------------------------
Computer Software--2.8%
Amadeus Global Travel Distribution SA(1) 300,800 2,781,250
--------------------------------------------------------------------------------
Computer Associates International, Inc. 182,000 9,373,000
--------------------------------------------------------------------------------
Electronic Data Systems Corp. 20,000 1,286,250
--------------------------------------------------------------------------------
Sabre Holdings Corp. 28,906 831,048
-------------
14,271,548
--------------------------------------------------------------------------------
Communications Equipment--3.2%
Alcatel SA 185,000 10,174,042
--------------------------------------------------------------------------------
Vodafone Group plc 1,400,000 6,382,369
-------------
16,556,411
--------------------------------------------------------------------------------
Electronics--0.2%
Intel Corp. 4,000 498,750
--------------------------------------------------------------------------------
Solectron Corp.(1) 11,700 386,831
-------------
885,581
--------------------------------------------------------------------------------
Transportation--1.6%
--------------------------------------------------------------------------------
Air Transportation--0.2%
AMR Corp.(1) 40,000 1,140,000
--------------------------------------------------------------------------------
Railroads & Truckers--1.4%
Canadian Pacific Ltd. 293,700 6,961,574
-------------
Total Common Stocks (Cost $465,784,148) 491,574,090
12 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
<TABLE>
<CAPTION>
Market Value
Shares See Note 1
==============================================================================================
<S> <C> <C>
Rights, Warrants and Certificates--0.0%
----------------------------------------------------------------------------------------------
Tele Norte Leste Participacoes SA (Telemar) Rts., Exp. 6/9/00 762 $ 1
----------------------------------------------------------------------------------------------
Viglen Technology plc Litigation Notes(1) 510,000 --
----------------------------------------------------------------------------------------------
Total Rights, Warrants and Certificates (Cost $0) 1
------------
Principal
Amount
==============================================================================================
Short-Term Notes--2.5%
----------------------------------------------------------------------------------------------
Federal Home Loan Bank, 6.30%, 6/1/00 (Cost $12,776,000) $ 12,776,000 12,776,000
----------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $478,560,148) 98.2% 504,350,091
----------------------------------------------------------------------------------------------
Other Assets Net of Liabilities 1.8 9,437,667
-----------------------------
Net Assets 100.0% $513,787,758
=============================
</TABLE>
Footnotes to Statement of Investments
(1). Non-income-producing security.
(2). Identifies issues considered to be illiquid or restricted - See Note 6 of
Notes to Financial Statements.
(3). Represents a security 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 $29,125 of the Fund's net assets as of May
31, 2000.
Distribution of investments representing geographic diversification, as a
percentage of total investments at value, is as follows:
Geographic Diversification Market Value Percent
--------------------------------------------------------------------------------
United States $ 214,864,125 42.6%
Great Britain 78,629,463 15.6
Japan 52,156,912 10.3
France 34,640,577 6.9
Sweden 32,323,427 6.4
Spain 16,924,360 3.4
Germany 13,108,978 2.6
Israel 11,313,750 2.2
Switzerland 10,209,735 2.0
Canada 6,961,574 1.4
Greece 6,836,086 1.4
Italy 6,765,429 1.3
India 5,251,778 1.0
The Netherlands 5,147,534 1.0
Poland 4,498,875 0.9
Hong Kong 3,301,668 0.7
Australia 1,324,538 0.3
Brazil 62,157 0.0
Hungary 29,125 0.0
----------------------------
Total $504,350,091 100.0%
============================
See accompanying Notes to Financial Statements.
13 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES Unaudited
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
May 31, 2000
================================================================================================
<S> <C>
Assets
------------------------------------------------------------------------------------------------
Investments, at value (cost $478,560,148)--see accompanying statement $ 504,350,091
------------------------------------------------------------------------------------------------
Cash--foreign currencies (cost $2,744,147) 2,735,332
------------------------------------------------------------------------------------------------
Receivables and other assets:
Investments sold 8,513,842
Shares of capital stock sold 2,079,508
Interest 1,619,974
Other 34,898
-------------
Total assets 519,333,645
================================================================================================
Liabilities
------------------------------------------------------------------------------------------------
Bank overdraft 33,618
------------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 2,729,460
Shares of capital stock redeemed 2,289,121
Distribution and service plan fees 214,132
Transfer and shareholder servicing agent fees 54,220
Directors' compensation 46,187
Other 179,149
-------------
Total liabilities 5,545,887
================================================================================================
Net Assets $ 513,787,758
=============
================================================================================================
Composition of Net Assets
------------------------------------------------------------------------------------------------
Par value of shares of capital stock $ 287,133
------------------------------------------------------------------------------------------------
Additional paid-in capital 424,925,432
------------------------------------------------------------------------------------------------
Overdistributed net investment income (519,845)
------------------------------------------------------------------------------------------------
Accumulated net realized gain on investments and
foreign currency transactions 63,345,421
------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of assets and
liabilities denominated in foreign currencies 25,749,617
-------------
Net Assets $ 513,787,758
=============
================================================================================================
Net Asset Value Per Share
------------------------------------------------------------------------------------------------
Class A Shares:
Net asset value and redempton price per share (based on net assets of
$332,274,962 and 18,375,263 shares of capital stock outstanding) $18.08
Maximum offering price per share (net asset value plus sales charge of
5.75% of offering price) $19.18
------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $129,600,250
and 7,375,633 shares of capital stock outstanding) $17.57
------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $51,912,546
and 2,962,410 shares of capital stock outstanding) $17.52
See accompanying Notes to Financial Statements.
</TABLE>
14 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF OPERATIONS Unaudited
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Six Months Ended May 31, 2000
=======================================================================================
<S> <C>
Investment Income
---------------------------------------------------------------------------------------
Dividends (net of foreign withholding taxes of $216,591) $ 4,531,371
---------------------------------------------------------------------------------------
Interest 593,186
------------
Total income 5,124,557
=======================================================================================
Expenses
---------------------------------------------------------------------------------------
Management fees 1,950,419
---------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 776,778
Class B 676,486
Class C 273,106
---------------------------------------------------------------------------------------
Administrative fees 660,847
---------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees 321,984
---------------------------------------------------------------------------------------
Shareholder reports 125,514
---------------------------------------------------------------------------------------
Custodian fees and expenses 47,044
---------------------------------------------------------------------------------------
Directors' compensation 15,215
---------------------------------------------------------------------------------------
Other 189,071
------------
Total expenses 5,036,464
Less expenses paid indirectly (5,686)
------------
Net expenses 5,030,778
=======================================================================================
Net Investment Income 93,779
=======================================================================================
Realized and Unrealized Gain (Loss)
---------------------------------------------------------------------------------------
Net realized gain (loss) on:
Investments 70,265,388
Foreign currency transactions (6,506,271)
------------
Net realized gain 63,759,117
---------------------------------------------------------------------------------------
Net change in unrealized depreciation on:
Investments (44,109,134)
Translation of assets and liabilities denominated in foreign currencies (8,715,342)
------------
Net change (52,824,476)
------------
Net realized and unrealized gain 10,934,641
=======================================================================================
Net Increase in Net Assets Resulting from Operations $ 11,028,420
============
</TABLE>
See accompanying Notes to Financial Statements.
15 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
--------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended
May 31, 2000 Year Ended
(Unaudited) November 30, 1999
===========================================================================================================
<S> <C> <C>
Operations
-----------------------------------------------------------------------------------------------------------
Net investment income (loss) $ 93,779 $ (1,483,544)
-----------------------------------------------------------------------------------------------------------
Net realized gain 63,759,117 114,033,230
-----------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation (52,824,476) (14,549,442)
------------- -------------
Net increase in net assets resulting from operations 11,028,420 98,000,244
===========================================================================================================
Dividends and/or Distributions to Shareholders
-----------------------------------------------------------------------------------------------------------
Dividends from net investment income:
Class A (3,437,033) (1,314,909)
Class B (751,073) (32,740)
Class C (328,276) (8,255)
-----------------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (66,722,711) (16,895,725)
Class B (28,190,497) (7,564,606)
Class C (11,436,847) (2,976,675)
===========================================================================================================
Capital Stock Transactions
-----------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from capital stock
transactions:
Class A 48,900,961 6,173,092
Class B 12,325,001 (3,420,684)
Class C 4,775,933 (62,970)
===========================================================================================================
Net Assets
-----------------------------------------------------------------------------------------------------------
Total increase (decrease) (33,836,122) 71,896,772
-----------------------------------------------------------------------------------------------------------
Beginning of period 547,623,880 475,727,108
--------------------------------
End of period [including undistributed (overdistributed) net investment
income of $(519,845) and $3,902,758, respectively] $ 513,787,758 $ 547,623,880
================================
</TABLE>
See accompanying Notes to Financial Statements
16 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Year
Ended Ended
May 31,2000 November 30,
Class A (Unaudited) 1999 1998 1997 1996 1995(1)
==============================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Data
------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 22.05 $ 19.37 $ 18.50 $ 16.48 $ 15.49 $ 14.16
------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .03 (.02) .03 .03 .03 .11(2)
Net realized and unrealized gain .46 3.90 1.63 2.55 2.33 2.45
---------------------------------------------------------------------------
Total income from
investment operations .49 3.88 1.66 2.58 2.36 2.56
------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.22) (.09) (.03) (.01) (.13) --
Distributions from net realized gain (4.24) (1.11) (.76) (.55) (1.24) (1.23)
---------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (4.46) (1.20) (.79) (.56) (1.37) (1.23)
------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 18.08 $ 22.05 $ 19.37 $ 18.50 $ 16.48 $ 15.49
===========================================================================
==============================================================================================================================
Total Return, at Net Asset Value(3) 2.32% 21.64% 9.38% 16.24% 16.60% 19.75%
------------------------------------------------------------------------------------------------------------------------------
==============================================================================================================================
Ratios/Supplemental Data
------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $332,275 $346,067 $295,596 $267,636 $192,000 $161,693
------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $338,531 $318,701 $291,554 $233,020 $174,838 $154,288
------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(4)
Net investment income (loss) 0.24% (0.11)% 0.09% 0.17% 0.19% 0.77%
Expenses 1.71% 1.75% 1.76%(5) 1.73%(5) 1.88%(5) 1.88%(5)
------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 58% 78% 59% 32% 48% 76%
</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). 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 less than one full year.
(4). Annualized for periods less than one full year.
(5). Expense ratio reflects the effect of expenses paid indirectly by the Fund.
(6). 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, 2000, were $293,987,122 and $346,477,934, respectively.
See accompanying Notes to Financial Statements.
17 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS Continued
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Year
Ended Ended
May 31, 2000 November 30,
Class B (Unaudited) 1999 1998 1997 1996 1995(1)
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Data
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 21.50 $ 18.92 $ 18.14 $ 16.25 $ 15.30 $ 14.07
------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.03) (.13) (.06) (.04) -- .02(2)
Net realized and unrealized gain .45 3.82 1.60 2.48 2.26 2.44
---------------------------------------------------------------------------------
Total income from investment
operations .42 3.69 1.54 2.44 2.26 2.46
------------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.11) --(3) -- -- (.07) --
Distributions from net realized gain (4.24) (1.11) (.76) (.55) (1.24) (1.23)
---------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (4.35) (1.11) (.76) (.55) (1.31) (1.23)
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 17.57 $ 21.50 $ 18.92 $ 18.14 $ 16.25 $ 15.30
=================================================================================
====================================================================================================================================
Total Return, at Net Asset Value(4) 2.02% 21.05% 8.89% 15.61% 16.03% 19.12%
------------------------------------------------------------------------------------------------------------------------------------
====================================================================================================================================
Ratios/Supplemental Data
------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $129,600 $143,632 $129,071 $98,457 $38,634 $16,980
------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $135,155 $134,690 $118,617 $67,317 $27,351 $13,908
------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(5)
Net investment loss (0.33)% (0.61)% (0.41)% (0.34)% (0.03)% (0.16)%(6)
Expenses 2.25% 2.25% 2.27%(6) 2.24%(6) 2.41%(6) 2.47%(6)
------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(7) 58% 78% 59% 32% 48% 76%
</TABLE>
(1). On November 22, 1995, OppenheimerFunds, Inc. became the investment advisor
to the Fund.
(2). Based on the 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.
(5). Annualized for periods of less than one full year.
(6). Expense ratio reflects the effect of expenses paid indirectly by the Fund.
(7). The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities owned
during the period. Securities with a maturity or expiration date at the time of
acquisition of one year or less are excluded from the calculation. Purchases and
sales of investment securities (excluding short-term securities) for the period
ended May 31, 2000, were $293,987,122 and $346,477,934, respectively.
See accompanying Notes to Financial Statements.
18 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS Continued
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Year
Ended Ended
May 31, 2000 November 30,
Class C (Unaudited) 1999 1998 1997 1996 1995(1)
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Data
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 21.46 $ 18.89 $ 18.11 $ 16.22 $ 15.26 $14.06
------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.03) (.12) (.06) (.03) (.04) --(2)
Net realized and unrealized gain .45 3.80 1.60 2.47 2.29 2.43
---------------------------------------------------------------------------------
Total income from investment
operations .42 3.68 1.54 2.44 2.25 2.43
------------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.12) --(3) -- -- (.05) --
Distributions from net realized gain (4.24) (1.11) (.76) (.55) (1.24) (1.23)
---------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (4.36) (1.11) (.76) (.55) (1.29) (1.23)
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 17.52 $ 21.46 $ 18.89 $ 18.11 $ 16.22 $15.26
=================================================================================
====================================================================================================================================
Total Return, at Net Asset Value(4) 2.01% 21.02% 8.90% 15.64% 16.04% 18.90%
------------------------------------------------------------------------------------------------------------------------------------
====================================================================================================================================
Ratios/Supplemental Data
------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $51,913 $57,925 $51,060 $38,769 $16,149 $4,373
------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $54,563 $52,348 $47,322 $26,735 $10,152 $3,834
------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(5)
Net investment loss (0.34)% (0.61)% (0.41)% (0.34)% (0.07)% (0.03)%
Expenses 2.25% 2.25% 2.27%(6) 2.24%(6) 2.43%(6) 2.60%(6)
------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(7) 58% 78% 59% 32% 48% 76%
</TABLE>
(1). On November 22, 1995, OppenheimerFunds, Inc. became the investment advisor
to the Fund.
(2). Based on the 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.
(5). Annualized for periods of less than one full year.
(6). Expense ratio reflects the effect of expenses paid indirectly by the Fund.
(7). The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities owned
during the period. Securities with a maturity or expiration date at the time of
acquisition of one year or less are excluded from the calculation. Purchases and
sales of investment securities (excluding short-term securities) for the period
ended May 31, 2000, were $293,987,122 and $346,477,934, respectively.
See accompanying Notes to Financial Statements.
19 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
--------------------------------------------------------------------------------
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 an 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 Manager has entered into a sub-advisory agreement with OpCap
Advisors.
The Fund offers Class A, Class B and Class C shares. Class A shares are
sold at their offering price, which is normally net asset value plus an initial
sales charge. Class B and Class C shares are sold without an initial sales
charge but may be subject to a contingent deferred sales charge (CDSC). All
classes of shares have identical rights to earnings, assets and voting
privileges, except that each class has its own expenses directly attributable to
that class and exclusive voting rights with respect to matters affecting that
class. Classes A, B and C shares have separate distribution and/or service
plans. Class B shares will automatically convert to Class A shares six years
after the date of purchase. The following is a summary of significant accounting
policies consistently followed by the Fund.
--------------------------------------------------------------------------------
Securities Valuation. Securities for which quotations are readily available are
valued at the last sale price, or if in the absence of a sale, at the last sale
price on the prior trading day if it is within the spread of the closing bid and
asked prices, and if not, at the closing bid price. Securities (including
restricted securities) for which quotations are not readily available are valued
primarily using dealer-supplied valuations, a portfolio pricing service
authorized by the Board of Directors, or at their fair value. Fair value is
determined in good faith under consistently applied procedures under the
supervision of the Board of Directors. Foreign currency 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, dealer
or pricing service. Short-term "money market type" debt securities with
remaining maturities of sixty days or less are valued at cost (or last
determined market value) and adjusted for amortization or accretion to maturity
of any premium or discount.
--------------------------------------------------------------------------------
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.
20 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
================================================================================
1. Significant Accounting Policies Continued
Allocation of Income, Expenses, Gains and Losses. Income, expenses (other than
those attributable to a specific class), gains and losses are allocated daily to
each class of shares based upon the relative proportion of net assets
represented by such class. Operating expenses directly attributable to a
specific class are charged against the operations of that class.
--------------------------------------------------------------------------------
Federal Taxes. The Fund intends to continue to comply with provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income, including any net realized gain on
investments not offset by loss carryovers, to shareholders. Therefore, no
federal income or excise tax provision is required.
--------------------------------------------------------------------------------
Directors' Compensation. The Fund has adopted an unfunded retirement plan for
the Fund's independent Board of 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, 2000, a provision of $4,229 was made for the Fund's
projected benefit obligations, resulting in an accumulated liability of $44,748
as of May 31, 2000.
The Board of Directors has adopted a deferred compensation plan for
independent directors that enables directors to elect to defer receipt of all or
a portion of annual compensation they are entitled to receive from the Fund.
Under the plan, the compensation deferred is periodically adjusted as though an
equivalent amount had been invested for the Board of Directors in shares of one
or more Oppenheimer funds selected by the director. The amount paid to the Board
of Directors under the plan will be determined based upon the performance of the
selected funds. Deferral of directors' fees under the plan will not affect the
net assets of the Fund, and will not materially affect the Fund's assets,
liabilities or net investment income per share.
--------------------------------------------------------------------------------
Dividends and Distributions to Shareholders. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations,
are recorded on the ex-dividend date.
--------------------------------------------------------------------------------
Classification of Distributions to Shareholders. Net investment income (loss)
and net realized gain (loss) may differ for financial statement and tax
purposes. The character of 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.
--------------------------------------------------------------------------------
Expense Offset Arrangements. Expenses paid indirectly represent a reduction of
custodian fees for earnings on cash balances maintained by the Fund.
21 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
--------------------------------------------------------------------------------
================================================================================
1. Significant Accounting Policies Continued
Other. Investment transactions are accounted for as of trade date and dividend
income is recorded on the ex-dividend date. Certain dividends from foreign
securities will be recorded as soon as the Fund is informed of the dividend if
such information is obtained subsequent to the ex-dividend date. Realized gains
and losses on investments and unrealized appreciation and depreciation are
determined on an identified cost basis, which is the same basis used for federal
income tax purposes.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of income and expenses during the reporting
period. Actual results could differ from those estimates.
================================================================================
2. Capital Stock
The Fund has authorized 100 million shares of $0.01 par value capital stock in
the aggregate to be apportioned among each class of shares. Transactions in
shares of capital stock were as follows:
<TABLE>
<CAPTION>
Six Months Ended May 31, 2000 Year Ended November 30, 1999
Shares Amount Shares Amount
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Sold 9,902,074 $ 176,754,528 5,264,971 $ 104,706,651
Dividends and/or distributions reinvested 3,701,269 66,548,832 1,009,192 17,630,591
Redeemed (10,920,492) (194,402,399) (5,838,408) (116,164,150)
------------------------------------------------------------------
Net increase 2,682,851 $ 48,900,961 435,755 $ 6,173,092
==================================================================
-----------------------------------------------------------------------------------------------------------------
Class B
Sold 603,411 $ 10,515,017 1,058,547 $ 20,637,480
Dividends and/or distributions reinvested 1,560,642 27,342,452 419,286 7,173,983
Redeemed (1,470,287) (25,532,468) (1,618,065) (31,232,147)
------------------------------------------------------------------
Net increase (decrease) 693,766 $ 12,325,001 (140,232) $ (3,420,684)
==================================================================
-----------------------------------------------------------------------------------------------------------------
Class C
Sold 398,981 $ 6,920,853 690,079 $ 13,533,154
Dividends and/or distributions reinvested 601,673 10,511,240 158,684 2,710,338
Redeemed (737,718) (12,656,160) (852,684) (16,306,462)
------------------------------------------------------------------
Net increase (decrease) 262,936 $ 4,775,933 (3,921) $ (62,970)
==================================================================
</TABLE>
================================================================================
3. Unrealized Gains and Losses on Securities
As of May 31, 2000, net unrealized appreciation on securities of $25,789,943 was
composed of gross appreciation of $56,876,796, and gross depreciation of
$31,086,853.
22 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
================================================================================
4. Fees and Other Transactions with Affiliates
Management Fees. Management fees paid to the Manager were in accordance with the
Investment advisory agreement with the Fund which provides for a fee of 0.75% of
the first $400 million of average annual net assets of the Fund, 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, 2000 was
0.74% of the average annual net assets for each class of shares, annualized for
periods of less than one full year.
--------------------------------------------------------------------------------
Sub-Advisor Fees. 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, 2000,
the Manager paid $880,330 to the Sub-Advisor.
--------------------------------------------------------------------------------
Administration Fees. Under a separate administration agreement, the Manager
provides administrative services to the Fund and handles its business affairs at
a fee of 0.25% of the Fund's average daily net assets.
--------------------------------------------------------------------------------
Transfer Agent Fees. OppenheimerFunds Services (OFS), a division of the Manager,
is the transfer and shareholder servicing agent for the Fund and other
Oppenheimer funds. The Fund pays OFS an annual maintenance fee of $18.00 for
each Fund shareholder account and reimburses OFS for its out-of-pocket expenses.
During the six months ended May 31, 2000, the Fund paid OFS $329,836.
--------------------------------------------------------------------------------
Distribution and Service Plan Fees. Under its General Distributor's Agreement
with the Manager, the Distributor acts as the Fund's principal underwriter in
the continuous public offering of the different classes of shares of the Fund.
The compensation paid to (or retained by) the Distributor from the sale of
shares or on the redemption of shares is shown in the table below for the period
indicated.
<TABLE>
<CAPTION>
Aggregate Class A Commissions Commissions Commissions
Front-End Front-End on Class A on Class B on Class C
Six Sales Charges Sales Charges Shares Shares Shares
Months on Class A Retained by Advanced by Advanced by Advanced by
Ended Shares Distributor Distributor(1) Distributor(1) Distributor(1)
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
May 31, 2000 $280,679 $44,986 $179,961 $225,883 $46,775
</TABLE>
(1). The Distributor advances commission payments to dealers for certain sales
of Class A shares and for sales of Class B and Class C shares from its own
resources at the time of sale.
<TABLE>
<CAPTION>
Class A Class B Class C
Contingent Deferred Contingent Deferred Contingent Deferred
Six Months Sales Charges Sales Charges Sales Charges
Ended Retained by Distributor Retained by Distributor Retained by Distributor
--------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
May 31, 2000 $21,672 $193,809 $10,740
</TABLE>
The Fund has adopted Distribution and Service Plans for Class A , Class B and
Class C shares under Rule 12b-1 of the Investment Company Act. Under those plans
the Fund pays the Distributor for all or a portion of its costs incurred in
connection with the distribution and/or servicing of the shares of the
particular class.
23 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
--------------------------------------------------------------------------------
================================================================================
4. Fees and Other Transactions with Affiliates Continued
Class A Distribution and Service Plan Fees. Under the plan the Fund pays an
asset-based sales charge to the Distributor at an annual rate of 0.20% of
average annual net assets of Class A shares of the Fund (the Board of Trustees
can set this rate up to 0.25%). Effective January 1, 2000, the asset-based
charge rate for Class A shares has been voluntarily reduced from 0.25% to 0.20%
of average annual net assets representing Class A shares. The Fund also pays a
service fee to the Distributor of 0.20% of the average annual net assets of
Class A shares. The Distributor currently uses the fees it receives from the
Fund to pay brokers, dealers, banks and other financial institutions. The
Distributor makes payments to plan recipients quarterly at an annual rate not to
exceed 0.25% of the average annual net assets consisting of Class A shares of
the Fund. For the six months ended May 31, 2000, payments under the Class A Plan
totaled $776,778, all of which was paid by the Distributor to recipients. That
included $21,282 paid to an affiliate of the Distributor's parent company. Any
unreimbursed expenses the Distributor incurs with respect to Class A shares in
any fiscal year cannot be recovered in subsequent years.
--------------------------------------------------------------------------------
Class B and Class C Distribution and Service Plan Fees. Under each plan, service
fees and distribution fees are computed on the average of the net asset value of
shares in the respective class, determined as of the close of each regular
business day during the period. The Class B and Class C plans provide for the
Distributor to be compensated at a flat rate, whether the Distributor's
distribution expenses are more or less than the amounts paid by the Fund under
the plan during the period for which the fee is paid.
The Distributor retains the asset-based sales charge on Class B shares.
The Distributor retains the asset-based sales charge on Class C shares during
the first year the shares are outstanding. The asset-based sales charges on
Class B and Class C shares allow investors to buy shares without a front-end
sales charge while allowing the Distributor to compensate dealers that sell
those shares.
The Distributor's actual expenses in selling Class B and Class C shares
may be more than the payments it receives from the contingent deferred sales
charges collected on redeemed shares and asset-based sales charges from the Fund
under the plans. If any plan is terminated by the Fund, the Board of Directors
may allow the Fund to continue payments of the asset-based sales charge to the
Distributor for distributing shares before the plan was terminated. The plans
allow for the carryforward of distribution expenses, to be recovered from
asset-based sales charges in subsequent fiscal periods.
24 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
Distribution fees paid to the Distributor for the six months ended May 31, 2000,
were as follows:
<TABLE>
<CAPTION>
Distributor's Distributor's
Aggregate Unreimbursed
Unreimbursed Expenses as %
Total Payments Amount Retained Expenses of Net Assets
Under Plan by Distributor Under Plan of Class
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class B Plan $676,486 $531,968 $1,850,858 1.43%
Class C Plan 273,106 52,319 600,291 1.16
</TABLE>
================================================================================
5. Foreign Currency Contracts
A foreign currency contract is a commitment to purchase or sell a foreign
currency at a future date, at a negotiated rate. The Fund may enter into foreign
currency contracts for operational purposes and to seek to protect against
adverse exchange rate fluctuations. 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.
================================================================================
6. Illiquid Securities
As of May 31, 2000, investments in securities included issues that are illiquid.
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 15% of its net assets (determined at the time of purchase
and reviewed periodically) in illiquid securities. The aggregate value of
illiquid securities subject to this limitation as of May 31, 2000, was $7,853.
25 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
--------------------------------------------------------------------------------
================================================================================
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 0.45%. Borrowings are payable 30 days after such
loan is executed. The Fund also pays a commitment fee equal to its pro rata
share of the average unutilized amount of the credit facility at a rate of 0.08%
per annum.
The Fund had no borrowings outstanding during the six months ended May 31, 2000.
26 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
--------------------------------------------------------------------------------
SHAREHOLDER MEETING Unaudited
--------------------------------------------------------------------------------
================================================================================
On March 17, 2000, a shareholder meeting was held to approve a new sub-advisory
agreement between the Manager and the Sub-Advisor as described in the Fund's
proxy statement for that meeting. The following is a report of the votes cast:
Withheld/
For Against Abstain Total
--------------------------------------------------------------------------------
15,250,363 153,761 354,769 15,758,893
27 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
Robert G. Galli, Director
Lacy B. Herrmann, Director
George Loft, Director
O. Leonard Darling, Vice President
Andrew J. Donohue, Secretary
Brian W. Wixted, Treasurer
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Robert G. Zack, Assistant Secretary
================================================================================
Investment Advisor OppenheimerFunds, Inc.
================================================================================
Sub-Advisor OpCap Advisors
================================================================================
Distributor OppenheimerFunds Distributor, Inc.
================================================================================
Transfer and OppenheimerFunds Services
Shareholder Servicing
Agent
================================================================================
Custodian of Portfolio Citibank, N.A.
Securities
================================================================================
Independent Auditors KPMG LLP
================================================================================
Legal Counsel Mayer, Brown & Platt
The financial statements included herein have
been taken from the records of the Fund without
examination of those records by the independent
auditors.
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.
Oppenheimer funds are distributed by
OppenheimerFunds Distributor, Inc Two World Trade
Center, New York, NY 10048-0203.
(C)Copyright 2000 OppenheimerFunds, Inc. All
rights reserved.
28 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
--------------------------------------------------------------------------------
OPPENHEIMERFUNDS FAMILY
--------------------------------------------------------------------------------
<TABLE>
=================================================================================================================
<S> <C> <C>
Global Equity
-----------------------------------------------------------------------------------------------------------------
Developing Markets Fund Global Fund
International Small Company Fund Quest Global Value Fund
Europe Fund Global Growth & Income Fund
International Growth Fund
=================================================================================================================
Equity
-----------------------------------------------------------------------------------------------------------------
Stock Stock & Bond
Enterprise Fund(1) Main Street(R) Growth & Income Fund
Discovery Fund Quest Opportunity Value Fund
Main Street(R) Small Cap Fund Total Return Fund
Quest Small Cap Value Fund Quest Balanced Value Fund
MidCap Fund Capital Income Fund(2)
Capital Appreciation Fund Multiple Strategies Fund
Growth Fund Disciplined Allocation Fund
Disciplined Value Fund Convertible Securities Fund
Quest Value Fund
Trinity Growth Fund Specialty
Trinity Core Fund Real Asset Fund
Trinity Value Fund Gold & Special Minerals Fund
=================================================================================================================
Fixed Income
-----------------------------------------------------------------------------------------------------------------
Taxable Municipal
International Bond Fund California Municipal Fund(3)
World Bond Fund Main Street(R)California Municipal Fund(3)
High Yield Fund Florida Municipal Fund(3)
Champion Income Fund New Jersey Municipal Fund(3)
Strategic Income Fund New York Municipal Fund(3)
Bond Fund Pennsylvania Municipal Fund(3)
Senior Floating Rate Fund Municipal Bond Fund
U.S. Government Trust Insured Municipal Fund
Limited-Term Government Fund Intermediate Municipal Fund
Rochester Division
Rochester Fund Municipals
Limited Term New York Municipal Fund
=================================================================================================================
Money Market(4)
-----------------------------------------------------------------------------------------------------------------
Money Market Fund Cash Reserves
</TABLE>
(1). Effective July 1, 1999, this fund is closed to new investors. See
prospectus for details.
(2). On 4/1/99, the Fund's name was changed from "Oppenheimer Equity Income
Fund."
(3). Available to investors only in certain states.
(4). An investment in money market funds is neither insured nor guaranteed by
the Federal Deposit Insurance Corporation or any other government agency.
Although these funds may seek to preserve the value of your investment at $1.00
per share, it is possible to lose money by investing in these funds.
29 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
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30 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
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31 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
--------------------------------------------------------------------------------
INFORMATION AND SERVICES
--------------------------------------------------------------------------------
As an Oppenheimer fund shareholder, you can benefit from special services
designed to make investing simple. Whether it's automatic investment
plans, timely market updates, or immediate account access, you can count
on us whenever you need assistance. So call us today, or visit our
website--we're here to help.
--------------------------------------------------------------------------------
Internet
24-hr access to account information and transactions(1)
www.oppenheimerfunds.com
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General Information
Mon-Fri 8:00am-9pm ET, Sat 10am-4pm ET
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Telephone Transactions
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24 hours a day, timely and insightful messages on the
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OppenheimerFunds Services
P.O. Box 5270, Denver, CO 80217-5270
--------------------------------------------------------------------------
Ticker Symbols Class A: QVGLX Class B: QGLBX Class C: QGLCX
--------------------------------------------------------------------------------
(1). At times this website may be inaccessible or its transaction feature may be
unavailable.
[LOGO] OppenheimerFunds(R)
Distributor, Inc.
RS0254.001.0500 July 28, 2000
