<PAGE>
[PHOTO]
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Annual Report November 30, 1999
Oppenheimer
Quest Global Value Fund, Inc.
[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
6 Fund Performance
12 Financial
Statements
32 Report of
Independent
Accountants
33 Federal
Income Tax
Information
34 Officers and Directors
35 OppenheimerFunds
Family
Equity markets worldwide showed strong signs of recovery during the period,
while the markets in Japan and the United States provided the most attractive
investment opportunities.
With low inflation and stable interest rates, we look for a continuation of
earnings growth for all kinds of companies.
- ----------------------
Average Annual
Total Returns
For the 1-Year Period
Ended 11/30/99*
Class A
Without With
Sales Chg. Sales Chg.
- ----------------------
21.64% 14.64%
Class B
Without With
Sales Chg. Sales Chg.
- ----------------------
21.05% 16.05%
Class C
Without With
Sales Chg. Sales Chg.
- ----------------------
21.02% 20.02%
- ------------------
Not FDIC Insured.
No Bank Guarantee.
May Lose Value.
- ------------------
*See page 10 for further details.
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PRESIDENT'S LETTER
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- -----------------------------
[PHOTO]
Bridget A. Macaskill
President
Oppenheimer
Quest Global Value Fund, Inc.
- -----------------------------
Dear shareholder,
Whenever a new year begins--let alone a new decade or century--it makes sense to
pause a moment to assess where we've been and where we're going.
In retrospect, U.S. stocks and bonds in 1999 were subject to sudden and
substantial swings in investor sentiment because of economic uncertainty. When
the year began, investors were concerned that growth in the United States might
slow in response to economic weakness overseas. At mid-year, investors were
concerned that the economy was too strong, potentially rekindling inflationary
pressures. Yet, by year end, it became clearer that while the U.S. economy grew
robustly in 1999, inflation remained at low levels. Indeed, investors appeared
more comfortable with the economy after the Federal Reserve Board demonstrated
its inflation-fighting resolve by raising interest rates three times between
June and November.
As is normal in a rising-interest-rate environment, bond prices generally
declined in 1999, led lower by U.S. Treasury bonds. In the stock market, while
most major indices advanced, strong performance was mostly limited to a handful
of large-capitalization growth companies, principally in the technology arena.
Smaller and value-oriented stocks provided particularly lackluster returns and,
overall, foreign stocks out-performed U.S. stocks in 1999.
Looking forward, we expect the U.S. economy to remain on a
moderate-growth, low-inflation course. As recent revisions of 1999's economic
statistics demonstrated, the economy has defied many analysts' forecasts by
growing at a strong rate, which should be positive for the bond market.
Similarly, positive economic forces could help the stock market's performance
broaden to include value-oriented and smaller stocks.
We see particularly compelling opportunities outside of the U.S. market.
Many foreign stocks also ended 1999 more attractively valued than large-cap U.S.
stocks, and economic trends in overseas markets could lead to higher stock
prices. In Europe, corporate restructuring has just begun, giving
1 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
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PRESIDENT'S LETTER
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companies there the same potential for cost-cutting and productivity
improvements that U.S. companies enjoyed 10 years ago. In Japan and Asia,
economic recovery is expected to gain strength, which could allow stocks to
rally from relatively low levels.
Another 1999 trend that should remain in force in 2000 is the growth of
businesses related to the Internet. The rise of e-commerce has been good for
consumers and the economy because of greater price competition, which has helped
keep inflation under control. The Internet has also been good for investors, as
even companies with no earnings have seen their stock prices soar. Clearly,
while the Internet is here to stay, not all "dot-com" companies will survive,
and many of these high-flying Internet stocks will eventually--and perhaps very
suddenly--return to more reasonable levels. The long-term winners are most
likely to be companies that support the Internet's growth with content or
infrastructure.
What else is in store for investors in 2000? While we do not have an
infallible crystal ball, we believe that in almost any investment environment,
consistent success stems from an unwavering focus on fundamental investment
principles such as maintaining a long-term perspective, using diversification to
manage risks, and availing oneself of the services of a knowledgeable financial
advisor. Indeed, these principles serve as the foundation for every investment
we offer, helping to make OppenheimerFunds The Right Way to Invest in 2000 and
beyond.
Sincerely,
/s/ Bridget A. Macaskill
Bridget A. Macaskill
December 21, 1999
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.
2 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
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AN INTERVIEW WITH YOUR FUND'S MANAGERS
- --------------------------------------------------------------------------------
- ---------------------
[PHOTO]
Portfolio Management
Team (l to r)
Richard Glasebrook II
James Sheldon
- ---------------------
Q. How did the Fund perform during the one-year period that ended November 30,
1999?
A. We are pleased to report that, as economies and markets worldwide recovered
from the problems of 1998, Oppenheimer Quest Global Value Fund, Inc. joined in
the rally and delivered very good results. The Fund's Class A shares produced an
average annual total return of 21.64%, without deducting sales charge, for the
one-year period ended November 30, 1999.(1)
To what do you attribute the Fund's success?
We've invested in a fair number of Japanese companies since early in 1999. Japan
was the strongest market in the world during the past year, because the
government and major corporations took action to make business more responsible
and responsive to shareholders. However, because Japan's recovery is in its
beginning phase, we continually monitor our positions.
U.S.-based multinational corporations turned out to be the second area of
strength. The Fund can invest virtually anywhere in the world, so we have
deployed roughly 50% of assets in the United States. Despite the high levels of
the major U.S. market indexes, many good companies remain undervalued, and we
found several large, established U.S. companies with sizable overseas operations
that met our investment criteria. As the worldwide economic picture improved
over the course of the year, many of these companies enjoyed rising revenues and
earnings.
How do you identify these companies?
We are particularly interested in the management of a company, which must be
capable of maximizing shareholder value. We're also looking for established
companies that have a high return on capital and strong competitive positions
within their industries.
1. Includes changes in net asset value per share without deducting any sales
charges. Such performance would have been lower if sales charges were taken into
account.
3 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
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AN INTERVIEW WITH YOUR FUND'S MANAGERS
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- ---------------------------------
Average Annual
Total Returns
For the Periods Ended 12/31/99(2)
Class A Since
1-Year 5-Year Inception
- ---------------------------------
17.80% 16.32% 11.72%
Class B Since
1-Year 5-Year Inception
- ---------------------------------
19.44% 16.91% 14.41%
Class C Since
1-Year 5-Year Inception
- ---------------------------------
23.41% 17.10% 14.35%
- ---------------------------------
Can you give us a good example?
The Fund benefited from strong results for Boeing Co., the U.S. aircraft
manufacturer, and Minnesota Mining and Manufacturing Co., also known as 3M. Both
saw revenues jump as worldwide recovery led to greater demand for their
products. Telecommunications companies around the world have also been solid
contributors to the Fund's performance.
How did the financial sector fare in the rising-interest-rate environment?
While some of our financial holdings were outstanding, such as Citigroup, Inc.,
others were among our largest disappointments. In a clear case of
misunderstanding, mortgage lender Freddie Mac was punished by investors as U.S.
interest rates rose during 1999. However, rising interest rates aren't
necessarily bad for Freddie Mac's business--the company has consistently hit its
earnings projections, and it has no fundamental problems with its business. We
have high confidence in the company, so the falling price only made the stock
more attractive, and we added to our position.
Did you invest in Europe or Latin America?
As the year began, we felt more positive about Japan than Europe, which was
struggling with the introduction of its new euro currency. Early in the
reporting period, we purchased just a few European stocks when their prices
suggested they were definitely undervalued. More recently, we've grown more
confident about Europe and have begun building that portion of the portfolio
again.
As for Latin America, we see signs that it is regaining strength but have
avoided it (with the exception of a few telecommunications stocks) because we
were unable to find stocks that were undervalued relative to their potential.
What is your outlook for global markets and the portfolio?
Inflationary concerns from a year ago that hurt all but the largest stocks seem
to have abated, so the pressure to raise
2. See page 10 for further details.
4 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
- ----------------------
Regional Allocation(3)
[PIE GRAPH]
United States/
Canada 48.2%
Europe 34.2
Asia 14.2
Middle East/
Africa 1.5
Emerging Europe 1.0
Latin America 0.9
- ----------------------
interest rates may subside for a while. With low inflation and stable interest
rates, we look for a continuation of earnings growth for all kinds of companies.
That, in turn, could lead to price appreciation for many undervalued stocks,
which is one reason why Oppenheimer Quest Global Value Fund, Inc. is an
important part of The Right Way to Invest for those who seek long-term growth of
their capital.
Top Ten Country Holdings(3)
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United States 47.3%
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Japan 10.4
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Great Britain 10.3
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France 7.8
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Germany 4.4
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Sweden 3.9
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Spain 3.5
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Australia 1.9
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Israel 1.5
- --------------------------------------------------------------------------------
Denmark 1.2
Top Ten Stock Holdings(4)
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Freddie Mac 4.3%
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Wells Fargo Co. 4.2
- --------------------------------------------------------------------------------
Citigroup, Inc. 3.5
- --------------------------------------------------------------------------------
Computer Associates International, Inc. 3.5
- --------------------------------------------------------------------------------
McDonald's Corp. 3.0
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XL Capital Ltd., Cl. A 2.9
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Textron, Inc. 2.7
- --------------------------------------------------------------------------------
Boeing Co. 2.5
- --------------------------------------------------------------------------------
Du Pont (E.I.) De Nemours & Co. 2.1
- --------------------------------------------------------------------------------
Nikko Securities Co. Ltd. 2.0
3. Portfolio is subject to change. Percentages are as of November 30, 1999, and
are based on total market value of investments.
4. Portfolio is subject to change. Percentages are as of November 30, 1999, and
are based on total market value of common stock.
5 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
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FUND PERFORMANCE
- --------------------------------------------------------------------------------
How has the Fund performed?
Below is a discussion, by the Manager, of the Fund's performance during its
fiscal year ended November 30, 1999, followed by a graphical comparison of the
Fund's performance to an appropriate broad-based market index.
Management's Discussion of Performance. During the fiscal year that ended
November 30, 1999, Oppenheimer Quest Global Value Fund, Inc. produced positive
returns, reflecting the generally upward trend in worldwide equity markets. The
Fund focuses on selecting individual companies that are inexpensively priced
relative to their fundamental strengths and prospects for growth in share price,
regardless of their industry or geographic region. Despite this
company-by-company approach, the Fund found its most promising opportunities in
specific regions: Japan, the United States and Europe. In particular, the Fund
benefited from a significant increase in investments in Japanese stocks made
early in the year. As that nation's market rebounded throughout the remainder of
the period, the Fund sold stocks that had appreciated in value.
Later in the period, as Europe's newly introduced common currency
stabilized and the continent's rate of economic growth increased, assets were
invested in stocks of European companies. Throughout the period, nearly half of
the Fund's assets were invested in U.S. multinational corporations in a variety
of industries, including a sizable allocation to U.S. financial stocks. Concerns
about inflation and interest rate hikes depressed prices of many of these
financial holdings in mid-year. However, the impact was partially offset by
gains in nonfinancial holdings in the United States and elsewhere, and several
of the largest U.S. financial positions in the portfolio recovered in the final
fiscal quarter. The Fund's portfolio holdings, allocations and management
strategies are subject to change.
6 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
Comparing the Fund's performance to the market. The graphs that follow show the
performance of a hypothetical $10,000 investment in each Class of shares of the
Fund held until November 30, 1999. In the case of Class A shares, performance is
measured since the inception of the class on July 2, 1990. In the case of Class
B and Class C shares, performance is measured from inception of those classes on
September 1, 1993. The Fund's performance reflects the deduction of the maximum
initial sales charge on Class A shares, the applicable contingent deferred sales
charge on Class B and Class C shares, and reinvestments of all dividends and
capital gains distributions.
The Fund's performance is compared to the performance of the Morgan
Stanley Capital International (MSCI) World Index, an unmanaged index of issuers
listed on the stock exchanges of 20 foreign countries and the United States. The
index is widely recognized as a measure of global stock market performance.
Index performance reflects the reinvestment of income but does not consider the
effect of transaction costs, and none of the data in the graphs that follow
shows the effect of taxes. The Fund's performance reflects the effects of Fund
business and operating expenses. While index comparisons may be useful to
provide a benchmark for the Fund's performance, it must be noted that the Fund's
investments are not limited to the investments in the index.
7 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
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FUND PERFORMANCE
- --------------------------------------------------------------------------------
Class A Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Quest Global Value Fund, Inc. (Class A) and
the Morgan Stanley Capital International (MSCI) World Index
[LINE GRAPH]
Oppenheimer Quest Global Value Fund, Inc. Class A $30,841
MSCI World Index $27,279
Average Annual Total Return of Class A Shares of the Fund at 11/30/99(1)
1-Year 14.64% 5-Year 15.27% Life 11.25%
Class B Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Quest Global Value Fund, Inc. (Class B) and
the Morgan Stanley Capital International (MSCI) World Index
[LINE GRAPH]
Oppenheimer Quest Global Value Fund, Inc. Class B $24,524
MSCI World Index $22,333
Average Annual Total Return of Class B Shares of the Fund at 11/30/99(1)
1-Year 16.05% 5-Year 15.84% Life 13.73%
8 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
Class C Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Quest Global Value Fund, Inc. (Class C) and
the Morgan Stanley Capital International (MSCI) World Index
[LINE GRAPH]
Oppenheimer Quest Global Value Fund, Inc. Class C $24,524
MSCI World Index $22,280
Average Annual Total Return of Class C Shares of the Fund at 11/30/99(1)
1-Year 20.02% 5-Year 16.03% Life 13.68%
The performance information for MSCI World Index in the graphs begins on 6/30/90
for Class A, and 8/31/93 for both Class B and Class C.
1. See page 10 for further details.
Past performance is not predictive of future performance. Graphs are not drawn
to the same scale.
9 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
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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. Because of ongoing
market volatility, 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
sub-advisor is OpCap Advisors, which was the Fund's advisor prior to 11/22/95.
The portfolio managers are employed by the Fund's sub-advisor.
Total returns and the ending account values in the graphs include changes in
share price and reinvestment of dividends and capital gains distributions in a
hypothetical investment for the periods shown.
Class A shares of the Fund were first publicly offered on 7/2/90. Class A
returns include the current maximum initial sales charge of 5.75%. Class A
shares are subject to an annual 0.25% asset-based sales charge.
Class B shares of the Fund were first publicly offered on 9/1/93. Class B
returns include the applicable contingent deferred sales charge 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 of the Fund were first publicly offered on 9/1/93. Class C
returns include the contingent deferred sales charge of 1% for the 1-year
period. Class 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.
10 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
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Financials
- --------------------------------------------------------------------------------
11 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS November 30, 1999
- --------------------------------------------------------------------------------
Market Value
Shares See Note 1
================================================================================
Common Stocks--94.4%
- --------------------------------------------------------------------------------
Basic Materials--6.0%
- --------------------------------------------------------------------------------
Chemicals--3.8%
Du Pont (E.I.) De Nemours & Co.(1) 185,400 $11,019,712
- --------------------------------------------------------------------------------
Monsanto Co. 233,600 9,855,000
-----------
20,874,712
- --------------------------------------------------------------------------------
Metals--1.1%
Alcoa, Inc. 93,400 6,117,700
- --------------------------------------------------------------------------------
Paper--1.1%
Stora Enso Oyj, R Shares 427,500 6,073,646
- --------------------------------------------------------------------------------
Capital Goods--14.6%
- --------------------------------------------------------------------------------
Aerospace/Defense--2.4%
Boeing Co. 320,000 13,060,000
- --------------------------------------------------------------------------------
Electrical Equipment--2.4%
Invensys plc 1,216,220 5,656,255
- --------------------------------------------------------------------------------
Siemens AG 71,997 7,242,129
-----------
12,898,384
- --------------------------------------------------------------------------------
Manufacturing--9.8%
Canon Sales Co., Inc. 363,500 4,980,183
- --------------------------------------------------------------------------------
Caterpillar, Inc. 188,500 8,741,687
- --------------------------------------------------------------------------------
Minnesota Mining & Manufacturing Co. 104,700 10,005,394
- --------------------------------------------------------------------------------
Shiseido Co. Ltd. 357,000 5,729,608
- --------------------------------------------------------------------------------
Societe BIC SA 114,158 4,482,882
- --------------------------------------------------------------------------------
Sodick Co.(2) 600 3,629
- --------------------------------------------------------------------------------
Textron, Inc. 200,000 14,212,500
- --------------------------------------------------------------------------------
Williams plc 1,112,800 5,755,728
-----------
53,911,611
- --------------------------------------------------------------------------------
Communication Services--9.5%
- --------------------------------------------------------------------------------
Telecommunications: Long Distance--5.3%
Fujitsu Ltd.(2) 150,000 5,313,891
- --------------------------------------------------------------------------------
Mahanagar Telephone Nigam Ltd., GDR(2) 397,325 3,536,192
- --------------------------------------------------------------------------------
Sprint Corp. (Fon Group) 135,000 9,365,625
- --------------------------------------------------------------------------------
Telecomunicacoes Brasileiras SA(2) 77,100,000 4,876,043
- --------------------------------------------------------------------------------
Telefonaktiebolaget LM Ericsson, B Shares 118,000 5,725,797
-----------
28,817,548
- --------------------------------------------------------------------------------
Telephone Utilities--3.2%
Bell Atlantic Corp. 82,200 5,204,288
- --------------------------------------------------------------------------------
Telecom Italia SpA, RNC Shares 880,000 4,740,485
12 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
Market Value
Shares See Note 1
- --------------------------------------------------------------------------------
Telephone Utilities Continued
Telefonica SA 360,000 $ 7,496,169
- --------------------------------------------------------------------------------
Telefonica SA, Bonus Shares(2) 7,200 149,923
-----------
17,590,865
- --------------------------------------------------------------------------------
Telecommunications: Wireless--1.0%
Panafon Hellenic Telecom Co., GDR(2) 472,410 5,621,679
- --------------------------------------------------------------------------------
Consumer Cyclicals--6.4%
- --------------------------------------------------------------------------------
Autos & Housing--0.8%
Electrolux AB, Series B Free 230,000 4,491,236
- --------------------------------------------------------------------------------
Leisure & Entertainment--1.8%
EMI Group plc 910,000 7,471,435
- --------------------------------------------------------------------------------
Scandic Hotels AB 257,100 2,268,263
-----------
9,739,698
- --------------------------------------------------------------------------------
Media--1.1%
Reed International plc 970,000 6,063,807
- --------------------------------------------------------------------------------
Retail: Specialty--1.9%
FamilyMart Co. 38,800 2,433,899
- --------------------------------------------------------------------------------
Great Universal Stores (The) plc 1,235,100 8,271,840
-----------
10,705,739
- --------------------------------------------------------------------------------
Textile/Apparel & Home Furnishings--0.8%
Yue Yuen Industrial Holdings Ltd. 1,676,000 4,208,127
- --------------------------------------------------------------------------------
Consumer Staples--11.7%
- --------------------------------------------------------------------------------
Beverages--1.4%
Diageo plc 592,000 5,355,549
- --------------------------------------------------------------------------------
Mikuni Coca-Cola Bottling Ltd. 114,000 2,128,610
-----------
7,484,159
- --------------------------------------------------------------------------------
Broadcasting--2.5%
AMFM, Inc.(2) 85,000 6,008,438
- --------------------------------------------------------------------------------
Canal Plus 91,000 7,522,651
-----------
13,531,089
- --------------------------------------------------------------------------------
Entertainment--2.8%
McDonald's Corp. 340,900 15,340,500
- --------------------------------------------------------------------------------
Food--1.6%
Groupe Danone 37,600 8,719,029
- --------------------------------------------------------------------------------
Food & Drug Retailers--1.1%
Carrefour SA 8,800 1,532,905
- --------------------------------------------------------------------------------
Kroger Co.(2) 200,000 4,262,500
-----------
5,795,405
13 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
Market Value
Shares See Note 1
- --------------------------------------------------------------------------------
Household Goods--2.3%
Kao Corp. 237,000 $ 7,027,548
- --------------------------------------------------------------------------------
Reckitt & Colman plc 466,632 5,678,085
-----------
12,705,633
- --------------------------------------------------------------------------------
Energy--1.1%
- --------------------------------------------------------------------------------
Energy Services--0.1%
Anadarko Petroleum Corp. 16,800 506,100
- --------------------------------------------------------------------------------
Oil: Domestic--1.0%
Enterprise Oil plc 770,000 5,518,706
- --------------------------------------------------------------------------------
Financial--26.8%
- --------------------------------------------------------------------------------
Banks--12.4%
Banco Popular Espanol SA 85,000 5,494,653
- --------------------------------------------------------------------------------
Bank Austria AG 109,160 5,771,542
- --------------------------------------------------------------------------------
Banque Nationale de Paris 58,800 5,387,721
- --------------------------------------------------------------------------------
Bayerische Hypo-Und Vereinsbank 118,000 7,295,192
- --------------------------------------------------------------------------------
Skandinaviska Enskilda Banken (SEB) 835,250 7,958,505
- --------------------------------------------------------------------------------
Societe Generale 23,100 4,977,509
- --------------------------------------------------------------------------------
State Bank of India, GDR 206,100 2,529,878
- --------------------------------------------------------------------------------
Unidanmark AS, A Shares 88,000 6,670,457
- --------------------------------------------------------------------------------
Wells Fargo Co. 470,000 21,855,000
-----------
67,940,457
- --------------------------------------------------------------------------------
Diversified Financial--10.9%
Citigroup, Inc. 340,000 18,317,500
- --------------------------------------------------------------------------------
Freddie Mac 454,100 22,421,188
- --------------------------------------------------------------------------------
Household International, Inc.(1) 63,000 2,492,438
- --------------------------------------------------------------------------------
Nichiei Co. Ltd. 126,700 3,112,169
- --------------------------------------------------------------------------------
Nikko Securities Co. Ltd. 848,500 10,545,530
- --------------------------------------------------------------------------------
Shohkoh Fund & Co. 5,540 2,987,268
-----------
59,876,093
- --------------------------------------------------------------------------------
Insurance--3.5%
Scor 97,480 4,436,498
- --------------------------------------------------------------------------------
XL Capital Ltd., Cl. A 290,720 14,826,720
-----------
19,263,218
- --------------------------------------------------------------------------------
Healthcare--4.0%
- --------------------------------------------------------------------------------
Healthcare/Drugs--2.9%
American Home Products Corp. 144,800 7,529,600
- --------------------------------------------------------------------------------
Gedeon Richter Ltd., GDR(2),(4) 500 25,875
- --------------------------------------------------------------------------------
Teva Pharmaceutical Industries Ltd., ADR 147,000 8,066,625
-----------
15,622,100
14 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
Market Value
Shares See Note 1
- --------------------------------------------------------------------------------
Healthcare/Supplies & Services--1.1%
Smith & Nephew plc 1,789,052 $ 6,197,495
- --------------------------------------------------------------------------------
Technology--9.8%
- --------------------------------------------------------------------------------
Computer Hardware--2.6%
Canon, Inc. 134,000 3,934,041
- --------------------------------------------------------------------------------
Compaq Computer Corp.(1) 426,100 10,412,819
------------
14,346,860
- --------------------------------------------------------------------------------
Computer Software--3.3%
Computer Associates International, Inc. 275,000 17,875,000
- --------------------------------------------------------------------------------
Communications Equipment--1.0%
Alcatel 28,600 5,543,488
- --------------------------------------------------------------------------------
Electronics--2.9%
Intel Corp. 100,000 7,668,750
- --------------------------------------------------------------------------------
Sony Corp. 45,300 8,378,627
------------
16,047,377
- --------------------------------------------------------------------------------
Transportation--2.4%
- --------------------------------------------------------------------------------
Air Transportation--1.5%
UAL Corp.(2) 119,700 8,229,375
- --------------------------------------------------------------------------------
Railroads & Truckers--0.9%
Canadian Pacific Ltd.(2) 218,000 4,720,793
- --------------------------------------------------------------------------------
Utilities--2.1%
- --------------------------------------------------------------------------------
Electric Utilities--2.1%
Iberdrola SA 410,000 5,713,553
- --------------------------------------------------------------------------------
Veba AG 116,100 5,697,759
------------
11,411,312
------------
Total Common Stocks (Cost $438,345,052) 516,848,941
================================================================================
Preferred Stocks--2.6%
- --------------------------------------------------------------------------------
Empresa Nacional de Comercio Redito
e Participacoes SA, Preference(2),(3) 3,050,000 2,858
- --------------------------------------------------------------------------------
Hornbach Holding AG 83,233 3,804,852
- --------------------------------------------------------------------------------
News Corp. Ltd., Sponsored ADR, Preference 340,000 10,518,750
------------
Total Preferred Stocks (Cost $14,400,636) 14,326,460
Units
================================================================================
Rights, Warrants and Certificates--0.1%
- --------------------------------------------------------------------------------
Skandinaviska Enskilda Banken (SEB),
Cl. A, Exp. 12/20/99 613,250 634,819
- --------------------------------------------------------------------------------
Viglen Technology plc Litigation Notes(2) 510,000 --
------------
Total Rights, Warrants and Certificates (Cost $0) 634,819
15 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS Continued
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Face Market Value
Amount See Note 1
===============================================================================================
<S> <C> <C>
Short-Term Notes--2.2%
- -----------------------------------------------------------------------------------------------
Federal Home Loan Bank, 5.57%, 12/1/99(5) (Cost $11,735,000) $11,735,000 $ 11,735,000
- -----------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $464,480,688) 99.3% 543,545,220
- -----------------------------------------------------------------------------------------------
Other Assets Net of Liabilities 0.7 4,078,660
-------------------------------
Net Assets 100.0% $ 547,623,880
===============================
</TABLE>
FOOTNOTES TO STATEMENT OF INVESTMENTS
Distribution of investments representing geographic diversification, as a
percentage of total investments at value, is as follows:
Geographic Diversification Market Value Percent
- --------------------------------------------------------------------------------
United States $257,062,834 47.3%
Japan 56,575,004 10.4
Great Britain 55,968,900 10.3
France 42,602,682 7.8
Germany 24,039,931 4.4
Sweden 21,078,620 3.9
Spain 18,854,299 3.5
Australia 10,518,750 1.9
Israel 8,066,625 1.5
Denmark 6,670,457 1.2
Finland 6,073,646 1.1
India 6,066,070 1.1
Austria 5,771,542 1.1
Greece 5,621,679 1.0
Brazil 4,878,901 0.9
Italy 4,740,485 0.9
Canada 4,720,793 0.9
Hong Kong 4,208,127 0.8
Hungary 25,875 0.0
-------------------------------
Total $543,545,220 100.0%
===============================
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. Represents securities sold under Rule 144A, which are exempt from
registration under the Securities Act of 1933, as amended. These securities have
been determined to be liquid under guidelines established by the Board of
Directors. These securities amount to $25,875 of the Fund's net assets as of
November 30, 1999.
5. Short-term notes are generally traded on a discount basis; the interest rate
is the discount rate received by the Fund at the time of purchase.
See accompanying Notes to Financial Statements.
16 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES November 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
==========================================================================================
<S> <C>
Assets
- ------------------------------------------------------------------------------------------
Investments, at value (cost $464,480,688)--see accompanying statement $543,545,220
- ------------------------------------------------------------------------------------------
Receivables and other assets:
Investments sold 6,607,447
Dividends 883,366
Shares of capital stock sold 260,566
Other 32,113
------------
Total assets 551,328,712
==========================================================================================
Liabilities
- ------------------------------------------------------------------------------------------
Bank overdraft 379,237
- ------------------------------------------------------------------------------------------
Unrealized depreciation on foreign currency
exchange contracts 478,167
- ------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 1,806,518
Shares of capital stock redeemed 553,834
Distribution and service plan fees 223,484
Transfer and shareholder servicing agent fees 62,937
Directors' compensation 41,438
Other 159,217
------------
Total liabilities 3,704,832
==========================================================================================
Net Assets $547,623,880
============
==========================================================================================
Composition of Net Assets
- ------------------------------------------------------------------------------------------
Par value of shares of capital stock $ 250,738
- ------------------------------------------------------------------------------------------
Additional paid-in capital 358,959,932
- ------------------------------------------------------------------------------------------
Undistributed net investment income 3,902,758
- ------------------------------------------------------------------------------------------
Accumulated net realized gain on investments and
foreign currency transactions 105,936,359
- ------------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of assets and
liabilities denominated in foreign currencies 78,574,093
------------
Net assets $547,623,880
============
</TABLE>
17 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES Continued
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
==========================================================================================
Net Asset Value Per Share
- ------------------------------------------------------------------------------------------
<S> <C>
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$346,066,931 and 15,692,412 shares of capital stock outstanding) $22.05
Maximum offering price per share (net asset value plus sales charge of
5.75% of offering price) $23.40
- ------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales
charge) and offering price per share (based on net assets of $143,632,362 and
6,681,867 shares of capital stock outstanding) $21.50
- ------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales
charge) and offering price per share (based on net assets of $57,924,587 and
2,699,474 shares of capital stock outstanding) $21.46
</TABLE>
See accompanying Notes to Financial Statements.
18 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS For the Year Ended November 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
===========================================================================================
<S> <C>
Investment Income
- -------------------------------------------------------------------------------------------
Dividends (net of foreign withholding taxes of $374,952) $ 7,630,840
- -------------------------------------------------------------------------------------------
Interest 673,602
-------------
Total income 8,304,442
===========================================================================================
Expenses
- -------------------------------------------------------------------------------------------
Management fees 3,738,803
- -------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 1,592,815
Class B 1,346,496
Class C 523,303
- -------------------------------------------------------------------------------------------
Administrative fees 1,263,857
- -------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees 713,846
- -------------------------------------------------------------------------------------------
Shareholder reports 198,548
- -------------------------------------------------------------------------------------------
Custodian fees and expenses 76,658
- -------------------------------------------------------------------------------------------
Directors' compensation 48,521
- -------------------------------------------------------------------------------------------
Other 290,443
-------------
Total expenses 9,793,290
Less expenses paid indirectly (5,304)
-------------
Net expenses 9,787,986
===========================================================================================
Net Investment Loss (1,483,544)
===========================================================================================
Realized and Unrealized Gain (Loss)
- -------------------------------------------------------------------------------------------
Net realized gain (loss) on:
Investments 118,590,397
Foreign currency transactions (4,557,167)
-------------
Net realized gain 114,033,230
- -------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation on:
Investments (9,159,669)
Translation of assets and liabilities denominated in foreign currencies (5,389,773)
-------------
Net change (14,549,442)
-------------
Net realized and unrealized gain 99,483,788
===========================================================================================
Net Increase in Net Assets Resulting from Operations $ 98,000,244
=============
</TABLE>
See accompanying Notes to Financial Statements.
19 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended November 30, 1999 1998
=========================================================================================================
<S> <C> <C>
Operations
- ---------------------------------------------------------------------------------------------------------
Net investment loss $ (1,483,544) $ (405,890)
- ---------------------------------------------------------------------------------------------------------
Net realized gain 114,033,230 27,310,462
- ---------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation or depreciation (14,549,442) 9,909,381
---------------------------------
Net increase in net assets resulting from operations 98,000,244 36,813,953
=========================================================================================================
Dividends and/or Distributions to Shareholders
- ---------------------------------------------------------------------------------------------------------
Dividends from net investment income:
Class A (1,314,909) (373,535)
Class B (32,740) --
Class C (8,255) --
- ---------------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (16,895,725) (10,969,004)
Class B (7,564,606) (4,151,937)
Class C (2,976,675) (1,648,947)
=========================================================================================================
Capital Stock Transactions
- ---------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
capital stock transactions:
Class A 6,173,092 14,728,260
Class B (3,420,684) 25,981,560
Class C (62,970) 10,484,959
=========================================================================================================
Net Assets
- ---------------------------------------------------------------------------------------------------------
Total increase 71,896,772 70,865,309
- ---------------------------------------------------------------------------------------------------------
Beginning of period 475,727,108 404,861,799
---------------------------------
End of period [including undistributed (overdistributed)
net investment income of $3,902,758 and $(849,705), respectively] $ 547,623,880 $ 475,727,108
=================================
</TABLE>
See accompanying Notes to Financial Statements.
20 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class A Year Ended November 30, 1999 1998 1997 1996 1995(1)
==============================================================================================================================
<S> <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
- ------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.02) .03 .03 .03 .112
Net realized and unrealized gain 3.90 1.63 2.55 2.33 2.45
------------------------------------------------------------------------
Total income from investment operations 3.88 1.66 2.58 2.36 2.56
- ------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income -- (.03) (.01) (.13) --
Dividends in excess of net investment income (.09) -- -- -- --
Distributions from net realized gain (1.11) (.76) (.55) (1.24) (1.23)
------------------------------------------------------------------------
Total dividends and distributions
to shareholders (1.20) (.79) (.56) (1.37) (1.23)
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 22.05 $ 19.37 $ 18.50 $ 16.48 $ 15.49
========================================================================
==============================================================================================================================
Total Return, at Net Asset Value(3) 21.64% 9.38% 16.24% 16.60% 19.75%
==============================================================================================================================
Ratios/Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $346,067 $295,596 $267,636 $192,000 $161,693
- ------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $318,701 $291,554 $233,020 $174,838 $154,288
- ------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(4)
Net investment income (loss) (0.11)% 0.09% 0.17% 0.19% 0.77%
Expenses 1.75% 1.76%(5) 1.73%(5) 1.88%(5) 1.88%(5)
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 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 of less than one full year.
4. Annualized for periods of 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 November 30, 1999, were $384,802,742 and $408,661,598, respectively.
See accompanying Notes to Financial Statements.
21 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class B Year Ended November 30, 1999 1998 1997 1996 1995(1)
=========================================================================================================================
<S> <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
- -------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.13) (.06) (.04) -- .022
Net realized and unrealized gain 3.82 1.60 2.48 2.26 2.44
-----------------------------------------------------------------------
Total income from investment operations 3.69 1.54 2.44 2.26 2.46
- -------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income -- -- -- (.07) --
Dividends in excess of net investment income --(7) -- -- -- --
Distributions from net realized gain (1.11) (.76) (.55) (1.24) (1.23)
Total dividends and distributions
to shareholders (1.11) (.76) (.55) (1.31) (1.23)
- -------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 21.50 $ 18.92 $ 18.14 $ 16.25 $ 15.30
=======================================================================
=========================================================================================================================
Total Return, at Net Asset Value(3) 21.05% 8.89% 15.61% 16.03% 19.12%
=========================================================================================================================
Ratios/Supplemental Data
- -------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $143,632 $129,071 $98,457 $38,634 $16,980
- -------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $134,690 $118,617 $67,317 $27,351 $13,908
- -------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(4)
Net investment income (loss) (0.61)% (0.41)% (0.34)% (0.03)% 0.16%
Expenses 2.25% 2.27%(5) 2.24%(5) 2.41%(5) 2.47%(5)
- -------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 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 of less than one full year.
4. Annualized for periods of 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 November 30, 1999, were $384,802,742 and $408,661,598, respectively.
7. Less than $0.005 per share.
See accompanying Notes to Financial Statements.
22 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
<TABLE>
<CAPTION>
Class C Year Ended November 30, 1999 1998 1997 1996 1995(1)
=========================================================================================================================
<S> <C> <C> <C> <C> <C>
Per Share Operating Data
- -------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 18.89 $ 18.11 $ 16.22 $ 15.26 $ 14.06
- -------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.12) (.06) (.03) (.04) --(2)
Net realized and unrealized gain 3.80 1.60 2.47 2.29 2.43
-----------------------------------------------------------------------
Total income from investment operations 3.68 1.54 2.44 2.25 2.43
- -------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Dividends from net investment income -- -- -- (.05) --
Dividends in excess of net investment income --(7) -- -- -- --
Distributions from net realized gain (1.11) (.76) (.55) (1.24) (1.23)
Total dividends and distributions
to shareholders (1.11) (.76) (.55) (1.29) (1.23)
- -------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 21.46 $ 18.89 $ 18.11 $ 16.22 $ 15.26
=======================================================================
=========================================================================================================================
Total Return, at Net Asset Value(3) 21.02% 8.90% 15.64% 16.04% 18.90%
=========================================================================================================================
Ratios/Supplemental Data
- -------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $57,925 $51,060 $38,769 $16,149 $ 4,373
- -------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $52,348 $47,322 $26,735 $10,152 $ 3,834
- -------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(4)
Net investment income (loss) (0.61)% (0.41)% (0.34)% (0.07)% 0.03%
Expenses 2.25% 2.27%(5) 2.24%(5) 2.43%(5) 2.60%(5)
- -------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(6) 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 of less than one full year.
4. Annualized for periods of 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 November 30, 1999, were $384,802,742 and $408,661,598, respectively.
7. Less than $0.005 per share.
See accompanying Notes to Financial Statements.
23 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1. Significant Accounting Policies
Oppenheimer Quest Global Value Fund, Inc. (the Fund) is registered under the
Investment Company Act of 1940, as amended, as a diversified, open-end
management investment company. The Fund's investment objective is to seek
long-term capital appreciation. 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. 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 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. 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.
Options are valued based upon the last sale price on the principal exchange on
which the option is traded or, in the absence of any transactions that day, the
value is based upon the last sale price on the prior trading date if it is
within the spread between the closing bid and asked prices. If the last sale
price is outside the spread, the closing bid is used.
24 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
- --------------------------------------------------------------------------------
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, 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 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 year ended
November 30, 1999, a provision of $28,082 was made for the Fund's projected
benefit obligations, resulting in an accumulated liability of $40,519 as of
November 30, 1999.
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 Directors in shares of one or more
Oppenheimer funds selected by the Director. The amount paid to the Director
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 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.
25 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
================================================================================
1. Significant Accounting Policies Continued
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.
The Fund adjusts the classification of distributions to shareholders to
reflect the differences between financial statement amounts and distributions
determined in accordance with income tax regulations. Accordingly, during the
year ended November 30, 1999, amounts have been reclassified to reflect a
decrease in overdistributed net investment income of $7,591,911. Accumulated net
realized gain on investments was decreased by the same amount.
- --------------------------------------------------------------------------------
Expense Offset Arrangements. Expenses paid indirectly represent a reduction of
custodian fees for earnings on cash balances maintained by the Fund.
- --------------------------------------------------------------------------------
Other. Investment transactions are accounted for as of trade date and dividend
income is recorded on the ex-dividend date. Foreign dividend income is often
recorded on the payable 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.
26 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
================================================================================
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>
Year Ended November 30, 1999 Year Ended November 30, 1998
Shares Amount Shares Amount
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Sold 5,264,971 $ 104,706,651 4,910,696 $ 93,437,975
Dividends and/or
distributions reinvested 1,009,192 17,630,591 626,544 10,983,313
Redeemed (5,838,408) (116,164,150) (4,750,300) (89,693,028)
---------------------------------------------------------------
Net increase 435,755 $ 6,173,092 786,940 $ 14,728,260
===============================================================
- --------------------------------------------------------------------------------------------------
Class B
Sold 1,058,547 $ 20,637,480 2,090,654 $ 38,937,146
Dividends and/or
distributions reinvested 419,286 7,173,983 227,806 3,918,313
Redeemed (1,618,065) (31,232,147) (923,753) (16,873,899)
---------------------------------------------------------------
Net increase (decrease) (140,232) $ (3,420,684) 1,394,707 $ 25,981,560
===============================================================
- --------------------------------------------------------------------------------------------------
Class C
Sold 690,079 $ 13,533,154 1,153,408 $ 21,397,342
Dividends and/or
distributions reinvested 158,684 2,710,338 88,697 1,522,922
Redeemed (852,684) (16,306,462) (679,309) (12,435,305)
---------------------------------------------------------------
Net increase (decrease) (3,921) $ (62,970) 562,796 $ 10,484,959
===============================================================
</TABLE>
================================================================================
3. Unrealized Gains and Losses on Securities
As of November 30, 1999, net unrealized appreciation on securities of
$79,064,532 was composed of gross appreciation of $105,287,482, and gross
depreciation of $26,222,950.
27 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
================================================================================
4. Management 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 year ended November 30, 1999, was
0.74% of the average annual net assets for each class of shares.
- --------------------------------------------------------------------------------
Sub-Advisor Fees. The Manager pays OpCap Advisors (the Sub-Advisor) based on the
fee schedule set forth in the Prospectus. For the year ended November 30, 1999,
the Manager paid $1,259,293 to the Sub-Advisor.
- --------------------------------------------------------------------------------
Administration Fees. 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%.
- --------------------------------------------------------------------------------
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 year ended November 30, 1999, the Fund paid OFS $697,923.
- --------------------------------------------------------------------------------
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
Sales Charges Sales Charges Shares Shares Shares
on Class A Retained by Advanced by Advanced by Advanced by
Year Ended Shares Distributor Distributor(1) Distributor(1) Distributor(1)
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
November 30, 1999 $460,274 $107,903 $135,081 $542,206 $99,471
</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
Sales Charges Sales Charges Sales Charges
Year Ended Retained by Distributor Retained by Distributor Retained by Distributor
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
November 30, 1999 $5,644 $330,241 $13,842
</TABLE>
28 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
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.
- --------------------------------------------------------------------------------
Class A Service Plan Fees. Under the Class A service plan, the Distributor
currently uses the fees it receives from the Fund to pay brokers, dealers and
other financial institutions. The Class A service plan permits reimbursements to
the Distributor at a rate of up to 0.25% of average annual net assets of Class A
shares. 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 fiscal year ended November 30, 1999, payments under
the Class A plan totaled $1,592,815, all of which was paid by the Distributor to
recipients. That included $41,709 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 from the Fund under the plans. If
either the Class B or the Class C 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 carry-forward of distribution expenses, to
be recovered from asset-based sales charges in subsequent fiscal periods.
29 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
================================================================================
4. Management Fees and Other Transactions with Affiliates Continued
Distribution fees paid to the Distributor for the year ended November 30, 1999,
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 $1,346,496 $1,071,447 $2,284,669 1.59%
Class C Plan 523,303 178,672 554,458 0.96
</TABLE>
================================================================================
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 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 to cover net exposure on outstanding foreign currency contracts
are noted in the Statement of Investments where applicable.
As of November 30, 1999, the Fund had outstanding foreign currency contracts as
follows:
<TABLE>
<CAPTION>
Contract Valuation as of Unrealized
Contract Description Expiration Date Amount (000s) November 30, 1999 Depreciation
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Contracts to Sell
Japanese Yen (JPY) 12/8/99 JPY 2,030,053 $19,895,667 $478,167
========
</TABLE>
30 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
================================================================================
6. Illiquid or Restricted Securities
As of November 30, 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 also 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 or restricted securities. Certain restricted
securities, eligible for resale to qualified institutional investors, are not
subject to that limitation. The aggregate value of illiquid or restricted
securities subject to this limitation as of November 30, 1999, was $2,858.
================================================================================
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 year ended November 30,
1999.
31 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Board of Directors and Shareholders of
Oppenheimer Quest Global Value Fund, Inc.
In our opinion, the accompanying statement of assets and liabilities, including
the statement of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Oppenheimer Quest Global Value
Fund, Inc. (the Fund) at November 30, 1999, and the results of its operations
for the year then ended, the changes in its net assets for each of the two years
in the period then ended and the financial highlights for each of the five years
in the period then ended, in conformity with generally accepted accounting
principles. These financial statements and financial highlights (hereafter
referred to as financial statements) are the responsibility of the Fund's
management; our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these financial
statements in accordance with generally accepted auditing standards, which
require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at November 30, 1999, by correspondence with the
custodian and brokers, provide a reasonable basis for the opinion expressed
above.
PricewaterhouseCoopers LLP
Denver, Colorado
December 21, 1999
32 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
- --------------------------------------------------------------------------------
FEDERAL INCOME TAX INFORMATION Unaudited
- --------------------------------------------------------------------------------
================================================================================
In early 2000 shareholders will receive information regarding all dividends and
distributions paid to them by the Fund during calendar year 1999. Regulations of
the U.S. Treasury Department require the Fund to report this information to the
Internal Revenue Service.
Distributions of $1.1972, $1.1156 and $1.1140 per share were paid to Class
A, Class B and Class C shareholders, respectively, on December 16, 1998, of
which $1.1109 was designated as a "capital gain distribution" for federal income
tax purposes. Whether received in stock or in cash, the capital gain
distribution should be treated by shareholders as a gain from the sale of
capital assets held for more than one year (long-term capital gains).
Dividends paid by the Fund during the fiscal year ended November 30, 1999,
which are not designated as capital gain distributions should be multiplied by
7.15% to arrive at the net amount eligible for the corporate dividend-received
deduction.
The foregoing information is presented to assist shareholders in reporting
distributions received from the Fund to the Internal Revenue Service. Because of
the complexity of the federal regulations which may affect your individual tax
return and the many variations in state and local tax regulations, we recommend
that you consult your tax advisor for specific guidance.
33 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
- --------------------------------------------------------------------------------
OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
- --------------------------------------------------------------------------------
================================================================================
Officers and Directors Bridget A. Macaskill, Chairman of the Board of
Directors and President
Paul Y. Clinton, Director
Thomas W. Courtney, Director
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 G. Zack, Assistant Secretary
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
================================================================================
Investment Advisor OppenheimerFunds, Inc.
================================================================================
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
================================================================================
Legal Counsel Mayer, Brown & Platt
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.
34 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.
Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc., Two
World Trade Center, New York, NY 10048-0203.
(C) Copyright 1999 OppenheimerFunds, Inc. All rights reserved.
35 OPPENHEIMER QUEST GLOBAL VALUE FUND, INC.
<PAGE>
THIS PAGE INTENTIONALLY LEFT BLANK
<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
www.oppenheimerfunds.com
--------------------------------------------------------------------------
General Information
Mon-Fri 8:30am-9pm ET, Sat 10am-4pm ET
1.800.525.7048
--------------------------------------------------------------------------
Telephone Transactions
Mon-Fri 8:30am-9pm ET, Sat 10am-4pm ET
1.800.852.8457
--------------------------------------------------------------------------
PhoneLink
24-hr automated information and automated transactions
1.800.533.3310
--------------------------------------------------------------------------
Telecommunications Device for the Deaf (TDD)
Mon-Fri 8:30am-7pm ET
1.800.843.4461
--------------------------------------------------------------------------
OppenheimerFunds Information Hotline
24 hours a day, timely and insightful messages on the economy and issues
that may affect your investments 1.800.835.3104
--------------------------------------------------------------------------
Transfer and Shareholder Servicing Agent
OppenheimerFunds Services
P.O. Box 5270, Denver, CO 80217-5270
- --------------------------------------------------------------------------------
[LOGO] Oppenheimer Funds(R)
Distributor, Inc.
RA0254.001.1199 January 28, 2000
