SECURITIES AND EXCHANGE COMMISSION
INVESTMENT COMPANIES
(Address of principal executive offices) (Zip code)
OppenheimerFunds, Inc.
Two World Financial Center, New York, New York 10281-1008
(Name and address of agent for service)
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October 29, 2010 Management Oppenheimer Commentary Select Value Fund and Semiannual Report MANAGEMENT COMMENTARY An Interview with Your Fund’s Portfolio Managers SEMIANNUAL REPORT Listing of Top Holdings Listing of Investments Financial Statements |
Top Ten Common Stock Industries | ||||
Oil, Gas & Consumable Fuels | 10.6 | % | ||
Chemicals | 8.2 | |||
Machinery | 7.2 | |||
Commercial Banks | 6.8 | |||
Media | 5.9 | |||
Insurance | 5.4 | |||
Pharmaceuticals | 4.8 | |||
Capital Markets | 4.5 | |||
Communications Equipment | 4.4 | |||
Computers & Peripherals | 3.2 |
Top Ten Common Stock Holdings | ||||
Celanese Corp., Series A | 4.0 | % | ||
Merck & Co., Inc. | 3.0 | |||
Chevron Corp. | 2.9 | |||
Lear Corp. | 2.9 | |||
Mosaic Co. (The) | 2.8 | |||
Halliburton Co. | 2.7 | |||
JPMorgan Chase & Co. | 2.7 | |||
AerCap Holdings NV | 2.5 | |||
Navistar International Corp. | 2.4 | |||
MetLife, Inc. | 2.4 |
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Beginning | Ending | Expenses | ||||||||||
Account | Account | Paid During | ||||||||||
Value | Value | 6 Months Ended | ||||||||||
May 1, 2010 | October 29, 2010 | October 29, 2010 | ||||||||||
Actual | ||||||||||||
Class A | $ | 1,000.00 | $ | 1,012.20 | $ | 6.80 | ||||||
Class B | 1,000.00 | 1,008.30 | 11.02 | |||||||||
Class C | 1,000.00 | 1,009.00 | 10.83 | |||||||||
Class N | 1,000.00 | 1,011.60 | 8.21 | |||||||||
Class Y | 1,000.00 | 1,015.50 | 4.43 | |||||||||
Hypothetical (5% return before expenses) | ||||||||||||
Class A | 1,000.00 | 1,018.20 | 6.82 | |||||||||
Class B | 1,000.00 | 1,014.01 | 11.06 | |||||||||
Class C | 1,000.00 | 1,014.21 | 10.85 | |||||||||
Class N | 1,000.00 | 1,016.80 | 8.23 | |||||||||
Class Y | 1,000.00 | 1,020.54 | 4.44 |
Class | Expense Ratios | |||
Class A | 1.35 | % | ||
Class B | 2.19 | |||
Class C | 2.15 | |||
Class N | 1.63 | |||
Class Y | 0.88 |
Shares | Value | |||||||
Common Stocks—96.8% | ||||||||
Consumer Discretionary—11.7% | ||||||||
Auto Components—2.9% | ||||||||
Lear Corp.1 | 107,800 | $ | 9,529,520 | |||||
Household Durables—2.0% | ||||||||
Mohawk Industries, Inc.1 | 114,200 | 6,548,228 | ||||||
Media—5.9% | ||||||||
Comcast Corp., Cl. A | 331,402 | 6,820,253 | ||||||
Time Warner Cable, Inc. | 88,527 | 5,123,057 | ||||||
Viacom, Inc., Cl. B | 194,377 | 7,501,008 | ||||||
19,444,318 | ||||||||
Multiline Retail—0.9% | ||||||||
Target Corp. | 60,710 | 3,153,277 | ||||||
Consumer Staples—5.8% | ||||||||
Beverages—2.2% | ||||||||
Molson Coors Brewing Co., Cl. B, Non-Vtg. | 157,325 | 7,430,460 | ||||||
Food & Staples Retailing—1.5% | ||||||||
Walgreen Co. | 141,972 | 4,810,011 | ||||||
Food Products—2.1% | ||||||||
Chiquita Brands International, Inc.1 | 513,988 | 6,820,621 | ||||||
Energy—13.3% | ||||||||
Energy Equipment & Services—2.7% | ||||||||
Halliburton Co. | 284,690 | 9,070,223 | ||||||
Oil, Gas & Consumable Fuels—10.6% | ||||||||
Bill Barrett Corp.1 | 94,400 | 3,563,600 | ||||||
Chevron Corp. | 115,689 | 9,557,068 | ||||||
CONSOL Energy, Inc. | 83,495 | 3,069,276 | ||||||
Exxon Mobil Corp. | 52,749 | 3,506,226 | ||||||
Marathon Oil Corp. | 133,057 | 4,732,837 | ||||||
Noble Energy, Inc. | 48,419 | 3,945,180 | ||||||
Royal Dutch Shell plc, ADR | 58,150 | 3,775,680 | ||||||
Ultra Petroleum Corp.1 | 66,100 | 2,720,015 | ||||||
34,869,882 | ||||||||
Financials—19.4% | ||||||||
Capital Markets—4.5% | ||||||||
E*TRADE Financial Corp.1 | 228,500 | 3,267,550 | ||||||
Goldman Sachs Group, Inc. (The) | 23,210 | 3,735,650 | ||||||
State Street Corp. | 186,780 | 7,799,933 | ||||||
14,803,133 | ||||||||
Commercial Banks—6.8% | ||||||||
CIT Group, Inc.1 | 65,870 | 2,854,147 | ||||||
Comerica, Inc. | 159,907 | 5,721,472 | ||||||
PNC Financial Services Group, Inc. | 96,100 | 5,179,790 | ||||||
U.S. Bancorp | 217,000 | 5,247,060 | ||||||
Wells Fargo & Co. | 126,360 | 3,295,469 | ||||||
22,297,938 | ||||||||
Diversified Financial Services—2.7% | ||||||||
JPMorgan Chase & Co. | 237,188 | 8,925,384 | ||||||
Insurance—5.4% | ||||||||
CNO Financial Group, Inc.1 | 839,700 | 4,567,968 | ||||||
Everest Re Group Ltd. | 65,372 | 5,509,552 | ||||||
MetLife, Inc. | 196,184 | 7,912,101 | ||||||
17,989,621 | ||||||||
Health Care—8.8% | ||||||||
Biotechnology—3.1% | ||||||||
Amgen, Inc.1 | 59,560 | 3,406,236 | ||||||
Gilead Sciences, Inc.1 | 168,140 | 6,670,114 | ||||||
10,076,350 | ||||||||
Health Care Providers & Services—0.9% | ||||||||
Aetna, Inc. | 104,396 | 3,117,265 | ||||||
Pharmaceuticals—4.8% | ||||||||
Merck & Co., Inc. | 276,930 | 10,047,020 | ||||||
Pfizer, Inc. | 327,180 | 5,692,932 | ||||||
15,739,952 |
Shares | Value | |||||||
Industrials—12.3% | ||||||||
Aerospace & Defense—2.5% | ||||||||
AerCap Holdings NV1 | 627,926 | $ | 8,106,525 | |||||
Industrial Conglomerates—2.1% | ||||||||
Tyco International Ltd. | 182,470 | 6,984,952 | ||||||
Machinery—7.2% | ||||||||
Ingersoll-Rand plc | 194,580 | 7,648,940 | ||||||
Navistar International Corp.1 | 166,715 | 8,032,329 | ||||||
Wabash National Corp.1 | 116,840 | 941,730 | ||||||
WABCO Holdings, Inc.1 | 151,550 | 7,034,951 | ||||||
23,657,950 | ||||||||
Trading Companies & Distributors—0.5% | ||||||||
Aircastle Ltd. | 104,040 | 958,208 | ||||||
Rush Enterprises, Inc., Cl. A1 | 55,340 | 879,353 | ||||||
1,837,561 | ||||||||
Information Technology—9.3% | ||||||||
Communications Equipment—4.4% | ||||||||
Ciena Corp.1 | 422,960 | 5,874,914 | ||||||
Harris Corp. | 108,560 | 4,905,826 | ||||||
QUALCOMM, Inc. | 81,580 | 3,681,705 | ||||||
14,462,445 | ||||||||
Computers & Peripherals—3.2% | ||||||||
Dell, Inc.1 | 478,733 | 6,884,181 | ||||||
Lexmark International, Inc., Cl. A1 | 97,400 | 3,704,122 | ||||||
10,588,303 | ||||||||
Office Electronics—1.7% | ||||||||
Xerox Corp. | 484,600 | 5,669,820 | ||||||
Materials—8.2% | ||||||||
Chemicals—8.2% | ||||||||
Celanese Corp., Series A | 370,935 | 13,223,835 | ||||||
Intrepid Potash, Inc.1 | 139,410 | 4,785,945 | ||||||
Mosaic Co. (The) | 124,250 | 9,090,130 | ||||||
27,099,910 | ||||||||
Telecommunication Services—2.5% | ||||||||
Diversified Telecommunication Services—2.0% | ||||||||
AT&T, Inc. | 228,837 | 6,521,855 | ||||||
Wireless Telecommunication Services—0.5% | ||||||||
Vodafone Group plc, Sponsored ADR | 63,810 | 1,755,413 | ||||||
Utilities—5.5% | ||||||||
Electric Utilities—2.8% | ||||||||
Edison International, Inc. | 176,010 | 6,494,769 | ||||||
Entergy Corp. | 35,060 | 2,613,022 | ||||||
9,107,791 | ||||||||
Multi-Utilities—2.7% | ||||||||
CMS Energy Corp. | 414,018 | 7,609,651 | ||||||
NiSource, Inc. | 85,160 | 1,474,120 | ||||||
9,083,771 | ||||||||
Total Common Stocks (Cost $267,795,410) | 319,502,479 | |||||||
Investment Company—4.0% | ||||||||
Oppenheimer Institutional Money Market Fund, Cl. E, 0.25%2,3 (Cost $13,124,246) | 13,124,246 | 13,124,246 | ||||||
Total Investments, at Value (Cost $280,919,656) | 100.8 | % | 332,626,725 | |||||
Liabilities in Excess of Other Assets | (0.8 | ) | (2,681,268 | ) | ||||
Net Assets | 100.0 | % | $ | 329,945,457 | ||||
* | October 29, 2010 represents the last business day of the Fund’s semiannual period. See Note 1 of the accompanying Notes. | |
1. | Non-income producing security. | |
2. | Is or was an affiliate, as defined in the Investment Company Act of 1940, at or during the period ended October 29, 2010, by virtue of the Fund owning at least 5% of the voting securities of the issuer or as a result of the Fund and the issuer having the same investment adviser. Transactions during the period in which the issuer was an affiliate are as follows: |
Shares | ||||||||||||||||
Shares | Gross | Gross | October 29, | |||||||||||||
April 30, 2010 | Additions | Reductions | 2010 | |||||||||||||
Oppenheimer Institutional Money Market Fund, Cl. E | 8,928,333 | 92,297,307 | 88,101,394 | 13,124,246 |
Value | Income | |||||||
Oppenheimer Institutional Money Market Fund, Cl. E | $ | 13,124,246 | $ | 9,835 |
3. | Rate shown is the 7-day yield as of October 29, 2010. |
1) | Level 1—unadjusted quoted prices in active markets for identical assets or liabilities (including securities actively traded on a securities exchange) | ||
2) | Level 2—inputs other than unadjusted quoted prices that are observable for the asset (such as unadjusted quoted prices for similar assets and market corroborated inputs such as interest rates, prepayment speeds, credit risks, etc.) | ||
3) | Level 3—significant unobservable inputs (including the Manager’s own judgments about assumptions that market participants would use in pricing the asset). |
Level 3— | ||||||||||||||||
Level 1— | Level 2— | Significant | ||||||||||||||
Unadjusted | Other Significant | Unobservable | ||||||||||||||
Quoted Prices | Observable Inputs | Inputs | Value | |||||||||||||
Assets Table | ||||||||||||||||
Investments, at Value: | ||||||||||||||||
Common Stocks | ||||||||||||||||
Consumer Discretionary | $ | 38,675,343 | $ | — | $ | — | $ | 38,675,343 | ||||||||
Consumer Staples | 19,061,092 | — | — | 19,061,092 | ||||||||||||
Energy | 43,940,105 | — | — | 43,940,105 | ||||||||||||
Financials | 64,016,076 | — | — | 64,016,076 | ||||||||||||
Health Care | 28,933,567 | — | — | 28,933,567 | ||||||||||||
Industrials | 40,586,988 | — | — | 40,586,988 | ||||||||||||
Information Technology | 30,720,568 | — | — | 30,720,568 | ||||||||||||
Materials | 27,099,910 | — | — | 27,099,910 | ||||||||||||
Telecommunication Services | 8,277,268 | — | — | 8,277,268 | ||||||||||||
Utilities | 18,191,562 | — | — | 18,191,562 | ||||||||||||
Investment Company | 13,124,246 | — | — | 13,124,246 | ||||||||||||
Total Assets | $ | 332,626,725 | $ | — | $ | — | $ | 332,626,725 | ||||||||
October 29, 20101 | ||||
Assets | ||||
Investments, at value—see accompanying statement of investments: | ||||
Unaffiliated companies (cost $267,795,410) | $ | 319,502,479 | ||
Affiliated companies (cost $13,124,246) | 13,124,246 | |||
332,626,725 | ||||
Receivables and other assets: | ||||
Dividends | 244,074 | |||
Shares of beneficial interest sold | 232,085 | |||
Investments sold | 214,438 | |||
Other | 19,845 | |||
Total assets | 333,337,167 | |||
Liabilities | ||||
Bank overdraft | 14,358 | |||
Payables and other liabilities: | ||||
Investments purchased | 1,810,679 | |||
Dividends | 781,785 | |||
Shares of beneficial interest redeemed | 525,018 | |||
Transfer and shareholder servicing agent fees | 78,657 | |||
Distribution and service plan fees | 67,713 | |||
Shareholder communications | 45,654 | |||
Trustees’ compensation | 37,012 | |||
Other | 30,834 | |||
Total liabilities | 3,391,710 | |||
Net Assets | $ | 329,945,457 | ||
Composition of Net Assets | ||||
Par value of shares of beneficial interest | $ | 22,150 | ||
Additional paid-in capital | 558,120,433 | |||
Accumulated net investment loss | (1,429,061 | ) | ||
Accumulated net realized loss on investments | (278,475,134 | ) | ||
Net unrealized appreciation on investments | 51,707,069 | |||
Net Assets | $ | 329,945,457 | ||
1. | October 29, 2010 represents the last business day of the Fund’s semiannual period. See Note 1 of the accompanying Notes. |
Net Asset Value Per Share | ||||
Class A Shares: | ||||
Net asset value and redemption price per share (based on net assets of $213,916,010 and 14,266,904 shares of beneficial interest outstanding) | $ | 14.99 | ||
Maximum offering price per share (net asset value plus sales charge of 5.75% of offering price) | $ | 15.90 | ||
Class B Shares: | ||||
Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $19,521,181 and 1,335,184 shares of beneficial interest outstanding) | $ | 14.62 | ||
Class C Shares: | ||||
Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $61,724,818 and 4,216,864 shares of beneficial interest outstanding) | $ | 14.64 | ||
Class N Shares: | ||||
Net asset value, redemption price (excludes applicable contingent deferred sales charge) and offering price per share (based on net assets of $22,114,577 and 1,492,202 shares of beneficial interest outstanding) | $ | 14.82 | ||
Class Y Shares: | ||||
Net asset value, redemption price and offering price per share (based on net assets of $12,668,871 and 839,132 shares of beneficial interest outstanding) | $ | 15.10 |
For the Six Months Ended October 29, 20101 | ||||
Investment Income | ||||
Dividends: | ||||
Unaffiliated companies (net of foreign withholding taxes of $17,489) | $ | 1,790,495 | ||
Affiliated companies | 9,835 | |||
Interest | 52 | |||
Other income | 9,830 | |||
Total investment income | 1,810,212 | |||
Expenses | ||||
Management fees | 1,218,439 | |||
Distribution and service plan fees: | ||||
Class A | 266,464 | |||
Class B | 95,625 | |||
Class C | 308,280 | |||
Class N | 55,811 | |||
Transfer and shareholder servicing agent fees: | ||||
Class A | 330,788 | |||
Class B | 55,388 | |||
Class C | 113,043 | |||
Class N | 45,346 | |||
Class Y | 7,146 | |||
Shareholder communications: | ||||
Class A | 36,234 | |||
Class B | 7,670 | |||
Class C | 11,541 | |||
Class N | 2,257 | |||
Class Y | 714 | |||
Trustees’ compensation | 3,229 | |||
Custodian fees and expenses | 879 | |||
Other | 34,359 | |||
Total expenses | 2,593,213 | |||
Less waivers and reimbursements of expenses | (39,434 | ) | ||
Net expenses | 2,553,779 | |||
Net Investment Loss | (743,567 | ) | ||
Realized and Unrealized Gain (Loss) | ||||
Net realized gain on investments from unaffiliated companies | 5,728,249 | |||
Net change in unrealized appreciation/depreciation on investments | (4,289,470 | ) | ||
Net Increase in Net Assets Resulting from Operations | $ | 695,212 | ||
1. | October 29, 2010 represents the last business day of the Fund’s semiannual period. See Note 1 of the accompanying Notes. |
Six Months | Year | |||||||
Ended | Ended | |||||||
October 29, 20101 | April 30, | |||||||
(Unaudited) | 2010 | |||||||
Operations | ||||||||
Net investment income (loss) | $ | (743,567 | ) | $ | 768,919 | |||
Net realized gain | 5,728,249 | 23,791,591 | ||||||
Net change in unrealized appreciation/depreciation | (4,289,470 | ) | 95,671,334 | |||||
Net increase in net assets resulting from operations | 695,212 | 120,231,844 | ||||||
Dividends and/or Distributions to Shareholders | ||||||||
Dividends from net investment income: | ||||||||
Class A | — | (1,941,184 | ) | |||||
Class B | — | (48,194 | ) | |||||
Class C | — | (186,527 | ) | |||||
Class N | — | (156,619 | ) | |||||
Class Y | — | (129,617 | ) | |||||
— | (2,462,141 | ) | ||||||
Tax return of capital distribution: | ||||||||
Class A | — | (454,771 | ) | |||||
Class B | — | (11,291 | ) | |||||
Class C | — | (43,698 | ) | |||||
Class N | — | (36,692 | ) | |||||
Class Y | — | (30,366 | ) | |||||
— | (576,818 | ) | ||||||
Beneficial Interest Transactions | ||||||||
Net increase (decrease) in net assets resulting from beneficial interest transactions: | ||||||||
Class A | (25,083,638 | ) | (33,250,886 | ) | ||||
Class B | (2,183,730 | ) | (3,655,852 | ) | ||||
Class C | (7,226,217 | ) | (9,808,934 | ) | ||||
Class N | (2,580,840 | ) | (2,097,410 | ) | ||||
Class Y | (2,281,176 | ) | 3,759,827 | |||||
(39,355,601 | ) | (45,053,255 | ) | |||||
Net Assets | ||||||||
Total increase (decrease) | (38,660,389 | ) | 72,139,630 | |||||
Beginning of period | 368,605,846 | 296,466,216 | ||||||
End of period (including accumulated net investment loss of $1,429,061 and $685,494, respectively) | $ | 329,945,457 | $ | 368,605,846 | ||||
1. | October 29, 2010 represents the last business day of the Fund’s semiannual period. See Note 1 of the accompanying Notes. |
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
October 29, 20101 | Year Ended April 30, | |||||||||||||||||||||||
Class A | (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||||
Per Share Operating Data | ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 14.81 | $ | 10.44 | $ | 17.84 | $ | 20.44 | $ | 17.06 | $ | 14.88 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)2 | (.02 | ) | .06 | .17 | .21 | .13 | 3 | .09 | ||||||||||||||||
Net realized and unrealized gain (loss) | .20 | 4.45 | (7.38 | ) | (2.16 | ) | 3.80 | 2.69 | ||||||||||||||||
Total from investment operations | .18 | 4.51 | (7.21 | ) | (1.95 | ) | 3.93 | 2.78 | ||||||||||||||||
Dividends and/or distributions to shareholders: | ||||||||||||||||||||||||
Dividends from net investment income | — | (.11 | ) | (.19 | ) | (.10 | ) | (.09 | ) | (.03 | ) | |||||||||||||
Tax return of capital distribution | — | (.03 | ) | — | — | — | — | |||||||||||||||||
Distributions from net realized gain | — | — | — | (.55 | ) | (.46 | ) | (.57 | ) | |||||||||||||||
Total dividends and/or distributions to shareholders | — | (.14 | ) | (.19 | ) | (.65 | ) | (.55 | ) | (.60 | ) | |||||||||||||
Net asset value, end of period | $ | 14.99 | $ | 14.81 | $ | 10.44 | $ | 17.84 | $ | 20.44 | $ | 17.06 | ||||||||||||
Total Return, at Net Asset Value4 | 1.22 | % | 43.30 | % | (40.33 | )% | (9.70 | )% | 23.29 | % | 18.92 | % | ||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 213,916 | $ | 238,398 | $ | 194,937 | $ | 436,757 | $ | 208,402 | $ | 73,716 | ||||||||||||
Average net assets (in thousands) | $ | 212,132 | $ | 227,571 | $ | 287,473 | $ | 389,036 | $ | 121,668 | $ | 34,760 | ||||||||||||
Ratios to average net assets:5 | �� | |||||||||||||||||||||||
Net investment income (loss) | (0.25 | )% | 0.42 | % | 1.29 | % | 1.10 | % | 0.70 | %3 | 0.56 | % | ||||||||||||
Total expenses | 1.35 | %6 | 1.35 | %6 | 1.28 | %6 | 1.16 | %6 | 1.20 | %6 | 1.30 | % | ||||||||||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses | 1.35 | % | 1.35 | % | 1.27 | % | 1.16 | % | 1.20 | % | 1.30 | % | ||||||||||||
Portfolio turnover rate | 45 | % | 120 | % | 194 | % | 138 | % | 107 | % | 79 | % |
1. | October 29, 2010 represents the last business day of the Fund’s semiannual period. See Note 1 of the accompanying Notes. | |
2. | Per share amounts calculated based on the average shares outstanding during the period. | |
3. | Net investment income per share and the net investment income ratio include $.05 and 0.28%, respectively, resulting from a special dividend from Ashland, Inc. in October 2006. | |
4. | Assumes an initial investment at net asset value on the business day before the first day of the fiscal period, 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 return. Total returns are not annualized for periods less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. | |
5. | Annualized for periods less than one full year. | |
6. | Total expenses including indirect expenses from affiliated fund were as follows: |
Six Months Ended October 29, 2010 | 1.35 | % | ||
Year Ended April 30, 2010 | 1.35 | % | ||
Year Ended April 30, 2009 | 1.28 | % | ||
Year Ended April 30, 2008 | 1.16 | % | ||
Year Ended April 30, 2007 | 1.20 | % |
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
October 29, 20101 | Year Ended April 30, | |||||||||||||||||||||||
Class B | (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||||
Per Share Operating Data | ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 14.50 | $ | 10.23 | $ | 17.37 | $ | 19.99 | $ | 16.75 | $ | 14.73 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)2 | (.07 | ) | (.05 | ) | .06 | .04 | (.03 | )3 | (.06 | ) | ||||||||||||||
Net realized and unrealized gain (loss) | .19 | 4.36 | (7.16 | ) | (2.11 | ) | 3.73 | 2.65 | ||||||||||||||||
Total from investment operations | .12 | 4.31 | (7.10 | ) | (2.07 | ) | 3.70 | 2.59 | ||||||||||||||||
Dividends and/or distributions to shareholders: | ||||||||||||||||||||||||
Dividends from net investment income | — | (.03 | ) | (.04 | ) | — | — | — | ||||||||||||||||
Tax return of capital distribution | — | (.01 | ) | — | — | — | — | |||||||||||||||||
Distributions from net realized gain | — | — | — | (.55 | ) | (.46 | ) | (.57 | ) | |||||||||||||||
Total dividends and/or distributions to shareholders | — | (.04 | ) | (.04 | ) | (.55 | ) | (.46 | ) | (.57 | ) | |||||||||||||
Net asset value, end of period | $ | 14.62 | $ | 14.50 | $ | 10.23 | $ | 17.37 | $ | 19.99 | $ | 16.75 | ||||||||||||
Total Return, at Net Asset Value4 | 0.83 | % | 42.13 | % | (40.85 | )% | (10.51 | )% | 22.27 | % | 17.79 | % | ||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 19,521 | $ | 21,708 | $ | 18,270 | $ | 39,163 | $ | 30,500 | $ | 13,040 | ||||||||||||
Average net assets (in thousands) | $ | 18,957 | $ | 21,006 | $ | 25,561 | $ | 39,218 | $ | 19,762 | $ | 5,924 | ||||||||||||
Ratios to average net assets:5 | ||||||||||||||||||||||||
Net investment income (loss) | (1.07 | )% | (0.40 | )% | 0.44 | % | 0.20 | % | (0.16 | )%3 | (0.39 | )% | ||||||||||||
Total expenses | 2.42 | %6 | 2.44 | %6 | 2.26 | %6 | 2.03 | %6 | 2.07 | %6 | 2.27 | % | ||||||||||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses | 2.19 | % | 2.18 | % | 2.13 | % | 2.03 | % | 2.07 | % | 2.24 | % | ||||||||||||
Portfolio turnover rate | 45 | % | 120 | % | 194 | % | 138 | % | 107 | % | 79 | % |
1. | October 29, 2010 represents the last business day of the Fund’s semiannual period. See Note 1 of the accompanying Notes. | |
2. | Per share amounts calculated based on the average shares outstanding during the period. | |
3. | Net investment income per share and the net investment income ratio include $.05 and 0.28%, respectively, resulting from a special dividend from Ashland, Inc. in October 2006. | |
4. | Assumes an initial investment at net asset value on the business day before the first day of the fiscal period, 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 return. Total returns are not annualized for periods less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. | |
5. | Annualized for periods less than one full year. | |
6. | Total expenses including indirect expenses from affiliated fund were as follows: |
Six Months Ended October 29, 2010 | 2.42 | % | ||
Year Ended April 30, 2010 | 2.44 | % | ||
Year Ended April 30, 2009 | 2.26 | % | ||
Year Ended April 30, 2008 | 2.03 | % | ||
Year Ended April 30, 2007 | 2.07 | % |
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
October 29, 20101 | Year Ended April 30, | |||||||||||||||||||||||
Class C | (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||||
Per Share Operating Data | ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 14.51 | $ | 10.25 | $ | 17.40 | $ | 20.03 | $ | 16.77 | $ | 14.73 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)2 | (.07 | ) | (.05 | ) | .06 | .06 | (.01 | )3 | (.04 | ) | ||||||||||||||
Net realized and unrealized gain (loss) | .20 | 4.36 | (7.16 | ) | (2.12 | ) | 3.73 | 2.65 | ||||||||||||||||
Total from investment operations | .13 | 4.31 | (7.10 | ) | (2.06 | ) | 3.72 | 2.61 | ||||||||||||||||
Dividends and/or distributions to shareholders: | ||||||||||||||||||||||||
Dividends from net investment income | — | (.04 | ) | (.05 | ) | (.02 | ) | — | 4 | — | ||||||||||||||
Tax return of capital distribution | — | (.01 | ) | — | — | — | — | |||||||||||||||||
Distributions from net realized gain | — | — | — | (.55 | ) | (.46 | ) | (.57 | ) | |||||||||||||||
Total dividends and/or distributions to shareholders | — | (.05 | ) | (.05 | ) | (.57 | ) | (.46 | ) | (.57 | ) | |||||||||||||
Net asset value, end of period | $ | 14.64 | $ | 14.51 | $ | 10.25 | $ | 17.40 | $ | 20.03 | $ | 16.77 | ||||||||||||
Total Return, at Net Asset Value5 | 0.90 | % | 42.04 | % | (40.75 | )% | (10.45 | )% | 22.38 | % | 17.93 | % | ||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 61,725 | $ | 68,923 | $ | 56,636 | $ | 127,070 | $ | 54,058 | $ | 19,090 | ||||||||||||
Average net assets (in thousands) | $ | 61,167 | $ | 65,325 | $ | 82,391 | $ | 105,695 | $ | 31,599 | $ | 9,872 | ||||||||||||
Ratios to average net assets:6 | �� | |||||||||||||||||||||||
Net investment income (loss) | (1.05 | )% | (0.37 | )% | 0.51 | % | 0.35 | % | (0.08 | )%3 | (0.27 | )% | ||||||||||||
Total expenses | 2.17 | %7 | 2.19 | %7 | 2.08 | %7 | 1.94 | %7 | 1.99 | %7 | 2.13 | % | ||||||||||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses | 2.15 | % | 2.14 | % | 2.04 | % | 1.94 | % | 1.99 | % | 2.13 | % | ||||||||||||
Portfolio turnover rate | 45 | % | 120 | % | 194 | % | 138 | % | 107 | % | 79 | % |
1. | October 29, 2010 represents the last business day of the Fund’s semiannual period. See Note 1 of the accompanying Notes. | |
2. | Per share amounts calculated based on the average shares outstanding during the period. | |
3. | Net investment income per share and the net investment income ratio include $.05 and 0.28%, respectively, resulting from a special dividend from Ashland, Inc. in October 2006. | |
4. | Less than $0.005 per share. | |
5. | Assumes an initial investment at net asset value on the business day before the first day of the fiscal period, 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 return. Total returns are not annualized for periods less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. | |
6. | Annualized for periods less than one full year. | |
7. | Total expenses including indirect expenses from affiliated fund were as follows: |
Six Months Ended October 29, 2010 | 2.17 | % | ||
Year Ended April 30, 2010 | 2.19 | % | ||
Year Ended April 30, 2009 | 2.08 | % | ||
Year Ended April 30, 2008 | 1.94 | % | ||
Year Ended April 30, 2007 | 1.99 | % |
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
October 29, 20101 | Year Ended April 30, | |||||||||||||||||||||||
Class N | (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||||
Per Share Operating Data | ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 14.65 | $ | 10.35 | $ | 17.67 | $ | 20.29 | $ | 16.96 | $ | 14.81 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)2 | (.04 | ) | .02 | .13 | .16 | .08 | 3 | .04 | ||||||||||||||||
Net realized and unrealized gain (loss) | .21 | 4.39 | (7.29 | ) | (2.16 | ) | 3.78 | 2.68 | ||||||||||||||||
Total from investment operations | .17 | 4.41 | (7.16 | ) | (2.00 | ) | 3.86 | 2.72 | ||||||||||||||||
Dividends and/or distributions to shareholders: | ||||||||||||||||||||||||
Dividends from net investment income | — | (.09 | ) | (.16 | ) | (.07 | ) | (.07 | ) | — | ||||||||||||||
Tax return of capital distribution | — | (.02 | ) | — | — | — | — | |||||||||||||||||
Distributions from net realized gain | — | — | — | (.55 | ) | (.46 | ) | (.57 | ) | |||||||||||||||
Total dividends and/or distributions to shareholders | — | (.11 | ) | (.16 | ) | (.62 | ) | (.53 | ) | (.57 | ) | |||||||||||||
Net asset value, end of period | $ | 14.82 | $ | 14.65 | $ | 10.35 | $ | 17.67 | $ | 20.29 | $ | 16.96 | ||||||||||||
Total Return, at Net Asset Value4 | 1.16 | % | 42.71 | % | (40.45 | )% | (10.01 | )% | 22.98 | % | 18.58 | % | ||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 22,114 | $ | 24,641 | $ | 18,999 | $ | 27,334 | $ | 9,542 | $ | 2,701 | ||||||||||||
Average net assets (in thousands) | $ | 22,150 | $ | 23,087 | $ | 21,963 | $ | 18,182 | $ | 5,150 | $ | 1,289 | ||||||||||||
Ratios to average net assets:5 | ||||||||||||||||||||||||
Net investment income (loss) | (0.52 | )% | 0.13 | % | 1.06 | % | 0.87 | % | 0.45 | %3 | 0.24 | % | ||||||||||||
Total expenses | 1.69 | %6 | 1.71 | %6 | 1.70 | %6 | 1.47 | %6 | 1.47 | %6 | 1.63 | % | ||||||||||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses | 1.63 | % | 1.63 | % | 1.60 | % | 1.47 | % | 1.46 | % | 1.63 | % | ||||||||||||
Portfolio turnover rate | 45 | % | 120 | % | 194 | % | 138 | % | 107 | % | 79 | % |
1. | October 29, 2010 represents the last business day of the Fund’s semiannual period. See Note 1 of the accompanying Notes. | |
2. | Per share amounts calculated based on the average shares outstanding during the period. | |
3. | Net investment income per share and the net investment income ratio include $.05 and 0.28%, respectively, resulting from a special dividend from Ashland, Inc. in October 2006. | |
4. | Assumes an initial investment at net asset value on the business day before the first day of the fiscal period, 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 return. Total returns are not annualized for periods less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. | |
5. | Annualized for periods less than one full year. | |
6. | Total expenses including indirect expenses from affiliated fund were as follows: |
Six Months Ended October 29, 2010 | 1.69 | % | ||
Year Ended April 30, 2010 | 1.71 | % | ||
Year Ended April 30, 2009 | 1.70 | % | ||
Year Ended April 30, 2008 | 1.47 | % | ||
Year Ended April 30, 2007 | 1.47 | % |
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
October 29, 20101 | Year Ended April 30, | |||||||||||||||||||||||
Class Y | (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||||
Per Share Operating Data | ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 14.87 | $ | 10.48 | $ | 17.97 | $ | 20.57 | $ | 17.13 | $ | 14.91 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income2 | .01 | .13 | .18 | .28 | .21 | 3 | .14 | |||||||||||||||||
Net realized and unrealized gain (loss) | .22 | 4.46 | (7.41 | ) | (2.18 | ) | 3.84 | 2.71 | ||||||||||||||||
Total from investment operations | .23 | 4.59 | (7.23 | ) | (1.90 | ) | 4.05 | 2.85 | ||||||||||||||||
Dividends and/or distributions to shareholders: | ||||||||||||||||||||||||
Dividends from net investment income | — | (.16 | ) | (.26 | ) | (.15 | ) | (.15 | ) | (.06 | ) | |||||||||||||
Tax return of capital distribution | — | (.04 | ) | — | — | — | — | |||||||||||||||||
Distributions from net realized gain | — | — | — | (.55 | ) | (.46 | ) | (.57 | ) | |||||||||||||||
Total dividends and/or distributions to shareholders | — | (.20 | ) | (.26 | ) | (.70 | ) | (.61 | ) | (.63 | ) | |||||||||||||
Net asset value, end of period | $ | 15.10 | $ | 14.87 | $ | 10.48 | $ | 17.97 | $ | 20.57 | $ | 17.13 | ||||||||||||
Total Return, at Net Asset Value4 | 1.55 | % | 43.99 | % | (40.10 | )% | (9.44 | )% | 23.88 | % | 19.36 | % | ||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 12,669 | $ | 14,936 | $ | 7,624 | $ | 19,173 | $ | 5,932 | $ | 1,859 | ||||||||||||
Average net assets (in thousands) | $ | 12,748 | $ | 10,902 | $ | 30,650 | $ | 14,768 | $ | 2,577 | $ | 968 | ||||||||||||
Ratios to average net assets:5 | ||||||||||||||||||||||||
Net investment income | 0.18 | % | 0.96 | % | 1.47 | % | 1.49 | % | 1.15 | %3 | 0.89 | % | ||||||||||||
Total expenses | 0.88 | %6 | 0.73 | %6 | 1.02 | %6 | 0.83 | %6 | 0.77 | %6 | 0.97 | % | ||||||||||||
Expenses after payments, waivers and/or reimbursements and reduction to custodian expenses | 0.88 | % | 0.73 | % | 0.96 | % | 0.83 | % | 0.77 | % | 0.97 | % | ||||||||||||
Portfolio turnover rate | 45 | % | 120 | % | 194 | % | 138 | % | 107 | % | 79 | % |
1. | October 29, 2010 represents the last business day of the Fund’s semiannual period. See Note 1 of the accompanying Notes. | |
2. | Per share amounts calculated based on the average shares outstanding during the period. | |
3. | Net investment income per share and the net investment income ratio include $.05 and 0.28%, respectively, resulting from a special dividend from Ashland, Inc. in October 2006. | |
4. | Assumes an initial investment at net asset value on the business day before the first day of the fiscal period, 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 return. Total returns are not annualized for periods less than one full year. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. | |
5. | Annualized for periods less than one full year. | |
6. | Total expenses including indirect expenses from affiliated fund were as follows: |
Six Months Ended October 29, 2010 | 0.88 | % | ||
Year Ended April 30, 2010 | 0.73 | % | ||
Year Ended April 30, 2009 | 1.02 | % | ||
Year Ended April 30, 2008 | 0.83 | % | ||
Year Ended April 30, 2007 | 0.77 | % |
Expiring | ||||
2017 | $ | 135,033,417 | ||
2018 | 143,870,433 | |||
Total | $ | 278,903,850 | ||
Federal tax cost of securities | $ | 287,657,535 | ||
Gross unrealized appreciation | $ | 48,332,561 | ||
Gross unrealized depreciation | (3,363,371 | ) | ||
Net unrealized appreciation | $ | 44,969,190 | ||
Projected Benefit Obligations Increased (Decreased) | $ | — | ||
Payments Made to Retired Trustees | — | |||
Accumulated Liability as of October 29, 2010 | 21,255 |
Six Months Ended October 29, 2010 | Year Ended April 30, 2010 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Class A | ||||||||||||||||
Sold | 1,051,150 | $ | 14,623,196 | 3,240,705 | $ | 42,471,824 | ||||||||||
Dividends and/or distributions reinvested | — | — | 160,219 | 2,193,220 | ||||||||||||
Redeemed | (2,886,325 | ) | (39,706,834 | ) | (5,964,624 | ) | (77,915,930 | ) | ||||||||
Net decrease | (1,835,175 | ) | $ | (25,083,638 | ) | (2,563,700 | ) | $ | (33,250,886 | ) | ||||||
Class B | ||||||||||||||||
Sold | 74,466 | $ | 1,010,427 | 282,901 | $ | 3,627,260 | ||||||||||
Dividends and/or distributions reinvested | — | — | 4,224 | 56,813 | ||||||||||||
Redeemed | (236,818 | ) | (3,194,157 | ) | (574,769 | ) | (7,339,925 | ) | ||||||||
Net decrease | (162,352 | ) | $ | (2,183,730 | ) | (287,644 | ) | $ | (3,655,852 | ) | ||||||
Class C | ||||||||||||||||
Sold | 242,090 | $ | 3,289,672 | 821,132 | $ | 10,490,272 | ||||||||||
Dividends and/or distributions reinvested | — | — | 14,886 | 200,368 | ||||||||||||
Redeemed | (774,746 | ) | (10,515,889 | ) | (1,612,892 | ) | (20,499,574 | ) | ||||||||
Net decrease | (532,656 | ) | $ | (7,226,217 | ) | (776,874 | ) | $ | (9,808,934 | ) | ||||||
Six Months Ended October 29, 2010 | Year Ended April 30, 2010 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Class N | ||||||||||||||||
Sold | 181,327 | $ | 2,509,429 | 476,828 | $ | 6,174,985 | ||||||||||
Dividends and/or distributions reinvested | — | — | 12,913 | 175,239 | ||||||||||||
Redeemed | (370,636 | ) | (5,090,269 | ) | (644,724 | ) | (8,447,634 | ) | ||||||||
Net decrease | (189,309 | ) | $ | (2,580,840 | ) | (154,983 | ) | $ | (2,097,410 | ) | ||||||
Class Y | ||||||||||||||||
Sold | 81,212 | $ | 1,137,350 | 532,327 | $ | 7,098,530 | ||||||||||
Dividends and/or distributions reinvested | — | — | 11,537 | 158,232 | ||||||||||||
Redeemed | (246,264 | ) | (3,418,526 | ) | (267,474 | ) | (3,496,935 | ) | ||||||||
Net increase (decrease) | (165,052 | ) | $ | (2,281,176 | ) | 276,390 | $ | 3,759,827 | ||||||||
Purchases | Sales | |||||||
Investment securities | $ | 143,582,250 | $ | 175,961,156 |
Fee Schedule | ||||
Up to $200 million | 0.75 | % | ||
Next $200 million | 0.72 | |||
Next $200 million | 0.69 | |||
Next $200 million | 0.66 | |||
Over $800 million | 0.60 |
30 | OPPENHEIMER SELECT VALUE FUND
Class B | $ | 29,809 | ||
Class C | 1,165,950 | |||
Class N | 314,143 |
31 | OPPENHEIMER SELECT VALUE FUND
Class A | Class B | Class C | Class N | |||||||||||||||||
Class A | Contingent | Contingent | Contingent | Contingent | ||||||||||||||||
Front-End | Deferred | Deferred | Deferred | Deferred | ||||||||||||||||
Sales Charges | Sales Charges | Sales Charges | Sales Charges | Sales Charges | ||||||||||||||||
Retained by | Retained by | Retained by | Retained by | Retained by | ||||||||||||||||
Six Months Ended | Distributor | Distributor | Distributor | Distributor | Distributor | |||||||||||||||
October 29, 2010 | $ | 29,704 | $ | 300 | $ | 16,719 | $ | 1,913 | $ | 187 | ||||||||||
Class B | $ | 22,120 | ||
Class C | 6,094 | |||
Class N | 6,691 |
32 | OPPENHEIMER SELECT VALUE FUND
33 | OPPENHEIMER SELECT VALUE FUND
Derivatives | ||||
Not Accounted for as | Investments from | |||
Hedging Instruments | unaffiliated companies* | |||
Equity contracts | $ | (63,916 | ) |
*Includes purchased option contracts, purchased swaption contracts and written option contracts exercised, if any. |
34 | OPPENHEIMER SELECT VALUE FUND
35 | OPPENHEIMER SELECT VALUE FUND
36 | OPPENHEIMER SELECT VALUE FUND
37 | OPPENHEIMER SELECT VALUE FUND
38 | OPPENHEIMER SELECT VALUE FUND
39 | OPPENHEIMER SELECT VALUE FUND
40 | OPPENHEIMER SELECT VALUE FUND
Trustees and Officers | Brian F. Wruble, Chairman of the Board of Trustees and Trustee | |
David K. Downes, Trustee | ||
Matthew P. Fink, Trustee | ||
Phillip A. Griffiths, Trustee | ||
Mary F. Miller, Trustee | ||
Joel W. Motley, Trustee | ||
Mary Ann Tynan, Trustee | ||
Joseph M. Wikler, Trustee | ||
Peter I. Wold, Trustee | ||
William F. Glavin, Jr., President and Principal Executive Officer | ||
John Damian, Vice President and Portfolio Manager | ||
Mitch Williams, Vice President and Portfolio Manager | ||
Thomas W. Keffer, Vice President and Chief Business Officer | ||
Mark S. Vandehey, Vice President and Chief Compliance Officer | ||
Brian W. Wixted, Treasurer and Principal Financial & Accounting Officer | ||
Robert G. Zack, Secretary | ||
Manager | OppenheimerFunds, Inc. | |
Distributor | OppenheimerFunds Distributor, Inc. | |
Transfer and Shareholder | OppenheimerFunds Services | |
Servicing Agent | ||
Independent | KPMG llp | |
Registered Public | ||
Accounting Firm | ||
Legal Counsel | Kramer Levin Naftalis & Frankel LLP | |
The financial statements included herein have been taken from the records of the Fund without examination of those records by the independent registered public accounting firm. |
41 | OPPENHEIMER SELECT VALUE FUND
• | Applications or other forms | |
• | When you create a user ID and password for online account access | |
• | When you enroll in eDocs Direct, our electronic document delivery service | |
• | Your transactions with us, our affiliates or others | |
• | A software program on our website, often referred to as a “cookie,” which indicates which parts of our site you’ve visited | |
• | When you set up challenge questions to reset your password online |
42 | OPPENHEIMER SELECT VALUE FUND
• | All transactions, including redemptions, exchanges and purchases, are secured by SSL and 128-bit encryption. SSL is used to establish a secure connection between your PC and OppenheimerFunds’ server. It transmits information in an encrypted and scrambled format. | |
• | Encryption is achieved through an electronic scrambling technology that uses a “key” to code and then decode the data. Encryption acts like the cable converter box you may have on your television set. It scrambles data with a secret code so that no one can make sense of it while it is being transmitted. When the data reaches its destination, the same software unscrambles the data. | |
• | You can exit the secure area by either closing your browser, or for added security, you can use the Log Out button before you close your browser. |
43 | OPPENHEIMER SELECT VALUE FUND
1. | The Fund’s Governance Committee (the “Committee”) will evaluate potential Board candidates to assess their qualifications. The Committee shall have the authority, upon approval of the Board, to retain an executive search firm to assist in this effort. The |
Committee may consider recommendations by business and personal contacts of current Board members and by executive search firms which the Committee may engage from time to time and may also consider shareholder recommendations. The Committee may consider the advice and recommendation of the Funds’ investment manager and its affiliates in making the selection. | ||
2. | The Committee shall screen candidates for Board membership. The Committee has not established specific qualifications that it believes must be met by a trustee nominee. In evaluating trustee nominees, the Committee considers, among other things, an individual’s background, skills, and experience; whether the individual is an “interested person” as defined in the Investment Company Act of 1940; and whether the individual would be deemed an “audit committee financial expert” within the meaning of applicable SEC rules. The Committee also considers whether the individual’s background, skills, and experience will complement the background, skills, and experience of other nominees and will contribute to the Board. There are no differences in the manner in which the Committee evaluates nominees for trustees based on whether the nominee is recommended by a shareholder. | |
3. | The Committee may consider nominations from shareholders for the Board at such times as the Committee meets to consider new nominees for the Board. The Committee shall have the sole discretion to determine the candidates to present to the Board and, in such cases where required, to shareholders. Recommendations for trustee nominees should, at a minimum, be accompanied by the following: |
• | the name, address, and business, educational, and/or other pertinent background of the person being recommended; | ||
• | a statement concerning whether the person is an “interested person” as defined in the Investment Company Act of 1940; | ||
• | any other information that the Funds would be required to include in a proxy statement concerning the person if he or she was nominated; and | ||
• | the name and address of the person submitting the recommendation and, if that person is a shareholder, the period for which that person held Fund shares. | ||
The recommendation also can include any additional information which the person submitting it believes would assist the Committee in evaluating the recommendation. |
4. | Shareholders should note that a person who owns securities issued by Massachusetts Mutual Life Insurance Company (the parent company of the Funds’ investment adviser) would be deemed an “interested person” under the Investment Company Act of 1940. In addition, certain other relationships with Massachusetts Mutual Life Insurance Company or its subsidiaries, with registered broker-dealers, or with the Funds’ outside legal counsel may cause a person to be deemed an “interested person.” |
5. | Before the Committee decides to nominate an individual as a trustee, Committee members and other directors customarily interview the individual in person. In addition, the individual customarily is asked to complete a detailed questionnaire which is designed to elicit information which must be disclosed under SEC and stock exchange rules and to determine whether the individual is subject to any statutory disqualification from serving as a trustee of a registered investment company. |
(a) | (1) Not applicable to semiannual reports. | |
(2) Exhibits attached hereto. | ||
(3) Not applicable. | ||
(b) | Exhibit attached hereto. |
By: | /s/ William F. Glavin, Jr. | |||
Principal Executive Officer | ||||
Date: | 12/07/2010 |
By: | /s/ William F. Glavin, Jr. | |||
Principal Executive Officer | ||||
Date: | 12/07/2010 |
By: | /s/ Brian W. Wixted | |||
Principal Financial Officer | ||||
Date: | 12/07/2010 |