UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-5225
Oppenheimer Quest Opportunity Value Fund
(Exact name of registrant as specified in charter)
6803 SOUTH TUCSON WAY, CENTENNIAL, COLORADO 80112-3924
(Address of principal executive offices)
(Zip code)
Robert G. Zack, Esq.
OppenheimerFunds, Inc.
498 Seventh Avenue, New York, New York 10018
- --------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (303) 768-3200
--------------
Date of fiscal year end: October 31
Date of reporting period: October 31, 2002 - April 30, 2003
ITEM 1. REPORTS TO STOCKHOLDERS.
April 30, 2003
Oppenheimer
Quest Opportunity
Value Fund SM
Management
Commentaries
and
Semiannual
Report
MANAGEMENT COMMENTARIES
Performance Update
Investment Strategy Discussion
Listing of Top Holdings
SEMIANNUAL REPORT AND FINANCIAL STATEMENTS
Listing of Investments
Financials
[GRAPHIC]
[LOGO]
OppenheimerFunds (R)
The Right Way to Invest
HIGHLIGHTS
Fund Objective
Oppenheimer Quest Opportunity Value Fund SM seeks growth of capital.
Fund News
Beginning on April 16, 2003, Francis A. LeCates, Jr. assumed the day-to-day
management of the Fund's portfolio. Mr. LeCates, portfolio manager of OpCap
Advisors, has been with Oppenheimer Capital, the immediate parent company of the
Fund's Sub-Advisor, for nine years as managing director and is its director of
research.
MANAGEMENT
COMMENTARIES
AND ADDITIONAL
DISCLOSURES
1 Letter to Shareholders
2 An Interview
with Your Fund's
Management Team
25 Trustees and Officers
Listing
28 Privacy Policy
SEMIANNUAL
REPORT AND
FINANCIAL
STATEMENTS
8 Statement of Investments
10 Statement of Assets and Liabilities
12 Statement of Operations
13 Statements
of Changes
in Net Assets
14 Financial Highlights
19 Notes to Financial Statements
Cumulative Total Returns*
For the 6-Month Period
Ended 4/30/03
Without With
Sales Chg. Sales Chg.
- ------------------------------------
Class A 1.35% -4.48%
- ------------------------------------
Class B 0.97 -4.03
- ------------------------------------
Class C 1.01 0.01
- ------------------------------------
Class N 1.22 0.22
- ------------------------------------
Class Y 1.49
- ------------------------------------
Average Annual Total Returns*
For the 1-Year Period
Ended 4/30/03
Without With
Sales Chg. Sales Chg.
- ------------------------------------
Class A -13.40% -18.38%
- ------------------------------------
Class B -14.00 -18.30
- ------------------------------------
Class C -13.98 -14.84
- ------------------------------------
Class N -13.64 -14.49
- ------------------------------------
Class Y -13.15
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.
Past performance does not guarantee future results.
*See Notes on page 7 for further details.
Not part of the semiannual report to Fund shareholders
LETTER TO SHAREHOLDERS
Dear Shareholder,
It is nearly impossible to reflect on the past six months without thinking about
the war with Iraq. We experienced a range of emotions in the days leading up to
the war and especially as the media brought the war into our homes, as never
before.
At OppenheimerFunds, we face the difficult task of looking beyond the war to
see its long-term impact, together with other factors, on the global economy,
the financial markets and, in the end, your investment with us. It's a
responsibility that we take very seriously and becomes our primary focus during
uncertain times like these.
It is our strong belief that investors can be well served by this
professional insight and by the guidance provided by a financial advisor. In
partnership with OppenheimerFunds, your financial advisor can help you navigate
through this volatile and sometimes unpredictable environment. We encourage you
to continue to work closely with your advisor to develop and implement an
investment plan that fits your goals and risk tolerance.
On our end, we continue to be the home to some of the most experienced and
talented investment professionals in the industry. They remain focused on proven
methods that drive informed, intelligent investment decisions. It is an approach
we are proud of and one that has served investors well in a variety of market
conditions.
We've found that in good times and bad, the fundamental principles of
investing remain key for financial success. These principles--investing
according to your goals, diversifying your portfolio and benefiting from the
value of professional investment advice--are simple ideas that have proven
themselves over time, and, we believe, will prove themselves again.
We thank you for your continued confidence in OppenheimerFunds and encourage
you to visit our website, www.oppenheimerfunds.com, or speak with your advisor
for up to date information on your investments and the markets.
Sincerely,
/s/ John V. Murphy
John V. Murphy
May 21, 2003
These general market views represent opinions of OppenheimerFunds, Inc. and are
not intended to predict performance of the securities markets or any particular
fund. Specific information that applies to your Fund is contained in the pages
that follow.
[PHOTO]
John V. Murphy
John V. Murphy
President
Oppenheimer
Quest Opportunity
Value Fund
Not part of the semiannual report to Fund shareholders
1 | OPPENHEIMER QUEST OPPORTUNITY VALUE FUND
AN INTERVIEW WITH YOUR FUND'S MANAGEMENT TEAM
Q
How did Oppenheimer Quest Opportunity Value Fund perform during the six months
that ended April 30, 2003?
A. Due to our defensive slant during the period, the Fund's stock portfolio
underperformed the S&P 500 Index. 1 However, negative returns for the equity
portion of the Fund were partially offset by positive returns from our position
in Treasury securities.
As of April 30, 2003, Oppenheimer Quest Opportunity Value Fund SM Class A
shares earned a 4-star Overall Morningstar Rating TM for the combined three-,
five- and 10-year periods among large value funds. 2
Why did the Fund continue to invest cautiously?
We were concerned about the broad-based weakness in the U.S. economy, and we
were fairly certain that this weakness would constrain corporate earnings. As it
turned out, earnings were indeed lackluster during the period. Some would
attribute this scenario to short-term factors like the war in Iraq and poor U.S.
weather conditions. Certainly, there were a few cases where those factors made a
difference. But, we believed that the greater issue for most companies was the
state of the domestic economy, where business and consumer spending showed
little or no strength. Despite plenty of monetary stimulus and some
1. The Fund's performance is compared to 4.48% return of the S&P 500 Index, an
unmanaged index of equity securities, for the six-month period ended 4/30/03.
2. For each fund with at least a three-year history, Morningstar calculates a
Morningstar Rating(TM) based on a Morningstar Risk-Adjusted Return measure that
accounts for variation in a fund's monthly performance (including the effects of
sales charges, loads, and redemption fees), placing more emphasis on downward
variations and rewarding consistent performance. The top 10% of funds in each
broad asset class receive 5 stars, the next 22.5% receive 4 stars. The Overall
Morningstar Rating for a fund is derived from a weighted average of the
performance figures associated with its three-, five-and ten-year (if
applicable) Morningstar Rating metrics. Oppenheimer Quest Opportunity Value Fund
was rated against the following numbers of U.S.-domiciled Large Value Funds over
the following time period ended 4/30/03: 641 funds in the last three years, 504
funds in the last five years and 172 funds in the last 10 years. With respect to
these Large Value Funds, Oppenheimer Quest Opportunity Value Fund received a
Morningstar Rating of 3 stars, 3 stars and 4 stars for the three-, five- and
10-year periods, respectively. Morningstar Rating is for the A share class only;
other classes may have different performance characteristics. Past performance
is no guarantee of future results.
Not part of the semiannual report to Fund shareholders
2 | OPPENHEIMER QUEST OPPORTUNITY VALUE FUND
fiscal stimulus since 2001, the economy has maintained a doggedly slow place,
stubbornly refusing to gain momentum.
Nonetheless, the market recovered slightly once the war in Iraq became less
of a focus. However, our defensively positioned equity portfolio did not benefit
all that much from the rebound. We were significantly overweighted in financial
services stocks, which underperformed, and underweighted in the information
technology sector, one of the best-performing areas of the market towards the
end of the period.
How did the bond market fare during these six months?
Bonds once again performed well, aided by a 0.5% interest-rate cut in early
November. Corporate bonds outperformed Treasury securities as investors
anticipated better financial results for corporations. Once again, we were not
optimistic about the prospects for corporate America, and thus, remained
defensively positioned. We invested approximately 21% of net assets in an
intermediate-term U.S. Treasury security. This positioning benefited the Fund,
but not as much as an investment in corporate securities might have.
Which stocks had the greatest impact on the Fund's results?
Providing the largest contributions to performance during the period were
General Motors Corp., Class H, a satellite company, and Household International,
Inc., a consumer finance company. The former was sold to media mogul Rupert
Murdoch (News Corp.) late in the period, and the latter was acquired by HSBC
North America, a U.S. subsidiary of a major international banking and
financial services organization. Both stocks benefited from their respective
transactions. 3
Also benefiting performance was ConocoPhillips. After spiking in February,
the entire oil industry was beaten down by concerns that, following the war with
Iraq, oil prices would fall
[SIDEBAR]
"Bonds once again performed well, aided by a 0.5% interest-rate cut in early
November."
3. The Fund's holdings and allocations are subject to change.
Not part of the semiannual report to Fund shareholders
3 | OPPENHEIMER QUEST OPPORTUNITY VALUE FUND
AN INTERVIEW WITH YOUR FUND'S MANAGEMENT TEAM
sharply. ConocoPhillips escaped this for two reasons. First, the company
announced early in 2003 that it would focus on improving returns on invested
capital and returns on equity. Second, oil refiners are enjoying larger gross
profit margins than they had a year ago, and ConocoPhillips owns the largest of
the U.S. refineries.
The largest-detractors were two financial stocks that were major positions in
the portfolio. Mortgage lender Freddie Mac was hurt by an announcement that it
had been too conservative in reporting past earnings and would issue a positive
restatement in 2003. Since the matter involved derivatives, which have come
under some suspicion of late, the market took a negative view of the
development. Wells Fargo Co. also lost ground during the period due to a number
of factors, including a dispute with the state of California over the company's
mortgage lending license.
Towards the end of the period, on April 16, 2003, Frank LeCates took over the
day-to-day management of the Fund. Could you explain some of the differences
shareholders may see?
Frank manages equities through a bottom-up, long-term approach. Rather than
starting with a favorable outlook for a particular sector or industry, he starts
at the company level, expecting to hold positions for the long-term.
Additionally, shareholders can expect the Fund to be more risk averse in
regards to diversifying individual stock positions and sector weights. While in
the past the Fund tended to concentrate on areas the previous portfolio manager
felt strongly about, Frank will now focus more on diversification.
Average Annual
Total Returns with
Sales Charge
For the Periods Ended 3/31/03 4
Class A
1-Year 5-Year 10-Year
- -------------------------
- -25.33% -3.38% 7.91%
Class B Since
1-Year 5-Year Inception
- -------------------------
- -25.24% -3.10% 7.86%
Class C Since
1-Year 5-Year Inception
- -------------------------
- -22.09% -2.79% 7.71%
Class N Since
1-Year 5-Year Inception
- -------------------------
- -21.76% N/A -12.18%
Class Y Since
1-Year 5-Year Inception
- -------------------------
- -20.56% -1.86% 3.35%
4. See Notes on page 7 for further details.
Not part of the semiannual report to Fund shareholders
4 | OPPENHEIMER QUEST OPPORTUNITY VALUE FUND
As a result of the past management's defensive posture, the Fund's recent
asset allocation was less heavily weighted toward equities than in periods of
the past. We are now reasonably bullish and expect to modestly increase the
Fund's asset allocation to around 75%. In terms of the fixed income portfolio,
things were fairly simple with the Fund owning a limited number of high quality
Treasury bonds and we do not expect any immediate changes.
With the change, what is the new portfolio management team's outlook going
forward?
We are reasonably bullish in our equity outlook, a change from management's
prior position. We believe that many companies have the leverage necessary to
increase earnings for two key reasons. First, due to aggressive cost cutting we
believe many companies have the ability to deliver large earnings gains from
small sales increases. In addition, while many are bearish due to concerns
regarding excess capacity and the lack of pricing ability as a result, we
believe that excess capacity combined with strong productivity means that
companies can grow sales and earnings without having to invest in large capital
expenditure programs. Going forward, we believe the Fund's new outlook will
benefit shareholders and that Oppenheimer Quest Opportunity Value Fund will
continue to be part of The Right Way to Invest.
Not part of the annual report to Fund shareholders
5 | OPPENHEIMER QUEST OPPORTUNITY VALUE FUND
AN INTERVIEW WITH YOUR FUND'S MANAGEMENT TEAM
Top Ten Common Stock Holdings 6
- --------------------------------------------------------------
Freddie Mac 6.1%
- --------------------------------------------------------------
Wells Fargo Co. 5.2
- --------------------------------------------------------------
Alcan, Inc. 4.9
- --------------------------------------------------------------
Citigroup, Inc. 4.2
- --------------------------------------------------------------
General Motors Corp., Cl. H 4.1
- --------------------------------------------------------------
M&T Bank Corp. 3.2
- --------------------------------------------------------------
Pfizer, Inc. 3.0
- --------------------------------------------------------------
Travelers Property Casualty Corp., Cl. A 3.0
- --------------------------------------------------------------
ConocoPhillips 2.9
- --------------------------------------------------------------
HSBC Holdings plc, Sponsored ADR 2.7
For up-to-date Top 10 Fund holdings, please visit www.oppenheimerfunds.com.
Top Five Common Stock Industries 6
- --------------------------------------------------------------
Banks 12.0%
- --------------------------------------------------------------
Diversified Financials 11.4
- --------------------------------------------------------------
Media 6.3
- --------------------------------------------------------------
Oil & Gas 6.0
- --------------------------------------------------------------
Metals & Mining 4.9
Portfolio Allocation 5
[PIE CHART]
o Stocks 75.9%
o Bonds 21.3
o Cash
Equivalents 2.8
5. Portfolio's holdings and allocations are subject to change. Percentages are
as of April 30, 2003, and are based on total market value of investments.
6. Portfolio's holdings and allocations are subject to change. Percentages are
as of April 30, 2003, and are based on net assets.
Not part of the semiannual report to Fund shareholders
6 | OPPENHEIMER QUEST OPPORTUNITY VALUE FUND
NOTES
In reviewing performance and rankings, please remember that past performance
cannot 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
fluctuations, and current performance may be more or less than the results
shown. For updates on the Fund's performance, visit our website at
www.oppenheimerfunds.com.
Total returns include changes in share price and reinvestment of dividends and
capital gains distributions in a hypothetical investment for the periods shown.
Cumulative total returns are not annualized. The Fund's total returns shown do
not reflect the deduction of income taxes on an individual's investment. Taxes
may reduce your actual investment returns on income or gains paid by the Fund or
any gains you may realize if you sell your shares. For more complete information
about the Fund, including charges, expenses and risks, please refer to the
prospectus. To obtain a copy, call your financial advisor, call OppenheimerFunds
Distributor, Inc. at 1.800.CALL OPP (1.800.225.5677) or visit the
OppenheimerFunds website at www.oppenheimerfunds.com. Read the prospectus
carefully before you invest or send money.
OppenheimerFunds, Inc. became the Fund's advisor on 11/22/95. The Fund's
subadvisor is OpCap Advisors, which was the Fund's advisor prior to 11/22/95.
The portfolio manager is employed by the Fund's subadvisor.
Class A shares of the Fund were first publicly offered on 1/3/89. Unless
otherwise noted, Class A returns include the current maximum initial sales
charge of 5.75%. The Fund's maximum sales charge for Class A shares was lower
prior to 11/24/95, so actual performance may have been higher. Class A shares
are subject to a maximum annual 0.25% asset-based sales charge. There is a
voluntary waiver of a portion of the Class A asset-based sales charge as
described in the Prospectus.
Class B shares of the Fund were first publicly offered on 9/1/93. Unless
otherwise noted, Class B returns include the applicable contingent deferred
sales charges of 5% (1-year) and 2% (5-year). Because Class B shares convert to
Class A shares 72 months after purchase, the "since inception" 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. Unless
otherwise noted, Class C returns include the contingent deferred sales charge of
1% for the one-year period. Class C shares are subject to an annual 0.75%
asset-based sales charge.
Class N shares of the Fund were first publicly offered on 3/1/01. Class N shares
are offered only through retirement plans. Unless otherwise noted, Class N
returns include the contingent deferred sales charge of 1% for the one-year
period. Class N shares are subject to an annual 0.25% asset-based sales charge.
Class Y shares of the Fund were first publicly offered on 12/16/96. Class Y
shares are offered only to certain institutional investors under special
agreement with the Distributor.
An explanation of the calculation of performance is in the Fund's Statement of
Additional Information.
Not part of the semiannual report to Fund shareholders
7 | OPPENHEIMER QUEST OPPORTUNITY VALUE FUND
STATEMENT OF INVESTMENTS April 30, 2003 / Unaudited
Market Value
Shares See Note 1
- -------------------------------------------------------------------------
Common Stocks--75.4%
- -------------------------------------------------------------------------
Consumer Discretionary--13.5%
- -------------------------------------------------------------------------
Hotels, Restaurants & Leisure--4.4%
Carnival Corp. 1,700,000 $ 46,903,000
- -------------------------------------------------------------------------
Marriott International,
Inc., Cl. A 1,165,800 41,863,878
--------------------
88,766,878
- -------------------------------------------------------------------------
Media--6.3%
AOL Time
Warner, Inc. 1 650,000 8,892,000
- -------------------------------------------------------------------------
Clear Channel
Communications,
Inc. 1 500,000 19,555,000
- -------------------------------------------------------------------------
General Motors
Corp., Cl. H 1 7,010,000 82,718,000
- -------------------------------------------------------------------------
Omnicom Group,
Inc. 270,600 16,750,140
--------------------
127,915,140
- -------------------------------------------------------------------------
Multiline Retail--2.0%
Dollar General
Corp. 2,700,000 39,258,000
- -------------------------------------------------------------------------
Specialty Retail--0.8%
Office Depot, Inc. 1 1,269,000 16,065,540
- -------------------------------------------------------------------------
Consumer Staples--3.2%
- -------------------------------------------------------------------------
Food & Drug Retailing--1.2%
CVS Corp. 967,900 23,432,859
- -------------------------------------------------------------------------
Food Products--1.4%
Kraft Foods,
Inc., Cl. A 950,000 29,355,000
- -------------------------------------------------------------------------
Tobacco--0.6%
Altria Group, Inc. 367,100 11,291,996
- -------------------------------------------------------------------------
Energy--6.0%
- -------------------------------------------------------------------------
Oil & Gas--6.0%
Anadarko Petroleum
Corp. 329,800 14,643,120
- -------------------------------------------------------------------------
BP plc, ADR 839,500 32,354,330
- -------------------------------------------------------------------------
ChevronTexaco
Corp. 230,300 14,465,143
- -------------------------------------------------------------------------
ConocoPhillips 1,181,200 59,414,360
--------------------
120,876,953
Market Value
Shares See Note 1
- -------------------------------------------------------------------------
Financials--27.9%
- -------------------------------------------------------------------------
Banks--12.0%
Bank of New York
Co., Inc. (The) 612,500 $ 16,200,625
- -------------------------------------------------------------------------
HSBC Holdings plc,
Sponsored ADR 996,705 54,509,797
- -------------------------------------------------------------------------
M&T Bank Corp. 775,000 65,464,250
- -------------------------------------------------------------------------
Wells Fargo Co. 2,179,200 105,168,192
--------------------
241,342,864
- -------------------------------------------------------------------------
Diversified Financials--11.4%
Citigroup, Inc. 2,186,333 85,813,570
- -------------------------------------------------------------------------
Fannie Mae 300,000 21,717,000
- -------------------------------------------------------------------------
Freddie Mac 2,129,200 123,280,680
--------------------
230,811,250
- -------------------------------------------------------------------------
Insurance--4.5%
American
International
Group, Inc. 348,700 20,207,165
- -------------------------------------------------------------------------
Travelers Property
Casualty Corp.,
Cl. A 3,674,788 59,641,809
- -------------------------------------------------------------------------
UnumProvident
Corp. 1,033,400 11,884,100
--------------------
91,733,074
- -------------------------------------------------------------------------
Health Care--6.9%
- -------------------------------------------------------------------------
Biotechnology--0.5%
Wyeth 218,200 9,498,246
- -------------------------------------------------------------------------
Health Care Providers & Services--3.4%
McKesson Corp. 1,283,000 35,590,420
- -------------------------------------------------------------------------
Tenet Healthcare
Corp. 1 2,200,000 32,648,000
--------------------
68,238,420
- -------------------------------------------------------------------------
Pharmaceuticals--3.0%
Pfizer, Inc. 1,976,000 60,762,000
- -------------------------------------------------------------------------
Industrials--4.4%
- -------------------------------------------------------------------------
Aerospace & Defense--3.3%
Boeing Co. 1,323,000 36,091,440
- -------------------------------------------------------------------------
General Dynamics
Corp. 500,500 31,066,035
--------------------
67,157,475
8 | OPPENHEIMER QUEST OPPORTUNITY VALUE FUND
Market Value
Shares See Note 1
- -------------------------------------------------------------------------
Industrial Conglomerates--1.1%
Tyco International
Ltd. 1,400,000 $ 21,840,000
- -------------------------------------------------------------------------
Information Technology--3.7%
- -------------------------------------------------------------------------
Communications Equipment--0.4%
JDS Uniphase
Corp. 1 2,697,600 8,713,248
- -------------------------------------------------------------------------
Computers & Peripherals--2.4%
EMC Corp. 1 5,238,000 47,613,420
- -------------------------------------------------------------------------
Semiconductor Equipment & Products--0.1%
Agere Systems,
Inc., Cl. A 1 1,455,900 2,606,061
- -------------------------------------------------------------------------
Software--0.8%
Microsoft Corp. 589,000 15,060,730
- -------------------------------------------------------------------------
Materials--5.7%
- -------------------------------------------------------------------------
Metals & Mining--4.9%
Alcan, Inc. 3,400,000 99,756,000
- -------------------------------------------------------------------------
Paper & Forest Products--0.8%
International Paper
Co. 460,000 16,445,000
- -------------------------------------------------------------------------
Telecommunication Services--0.7%
- -------------------------------------------------------------------------
Diversified Telecommunication Services--0.7%
Alltel Corp. 322,000 15,088,920
- -------------------------------------------------------------------------
Utilities--3.4%
- -------------------------------------------------------------------------
Electric Utilities--2.3%
Exelon Corp. 900,000 47,736,000
- -------------------------------------------------------------------------
Gas Utilities--1.1%
NiSource, Inc. 1,158,000 21,886,200
----------------
Total Common Stocks
(Cost $1,439,434,883) 1,523,251,274
Principal Market Value
Amount See Note 1
- -------------------------------------------------------------------------
U.S. Government Obligations--21.1%
U.S. Treasury Nts.,
5.75%, 11/15/05
(Cost $420,473,816) $388,000,000 $ 426,542,368
- -------------------------------------------------------------------------
Short-Term Notes--2.8%
American Express
Credit Corp.,
1.23%, 5/7/03 37,611,000 37,603,257
- -------------------------------------------------------------------------
Federal Home
Loan Bank:
1.16%, 5/5/03 1,960,000 1,959,748
1.18%, 6/9/03 17,000,000 16,978,268
----------------
Total Short-Term Notes
(Cost $56,541,273) 56,541,273
- -------------------------------------------------------------------------
Total Investments,
at Value
(Cost $1,916,449,972) 99.3% 2,006,334,915
- -------------------------------------------------------------------------
Other Assets
Net of Liabilities 0.7 14,485,987
----------------------------------
Net Assets 100.0% $2,020,820,902
==================================
Footnotes to Statement of Investments
1. Non-income producing security.
See accompanying Notes to Financial Statements.
9 | OPPENHEIMER QUEST OPPORTUNITY VALUE FUND
STATEMENT OF ASSETS AND LIABILITIES Unaudited
April 30, 2003
- --------------------------------------------------------------------------------
Assets
Investments, at value (cost $1,916,449,972)--
see accompanying statement $ 2,006,334,915
- --------------------------------------------------------------------------------
Receivables and other assets:
Investments sold 63,017,198
Interest and dividends 11,522,995
Shares of beneficial interest sold 916,943
Other 26,609
----------------
Total assets 2,081,818,660
- --------------------------------------------------------------------------------
Liabilities
Bank overdraft 18,210,471
- --------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 34,012,116
Shares of beneficial interest redeemed 7,109,668
Transfer and shareholder servicing agent fees 460,058
Distribution and service plan fees 403,358
Shareholder reports 374,991
Trustees' compensation 325,447
Other 101,649
----------------
Total liabilities 60,997,758
- --------------------------------------------------------------------------------
Net Assets $2,020,820,902
----------------
- --------------------------------------------------------------------------------
Composition of Net Assets
Par value of shares of beneficial interest $ 767,300
- --------------------------------------------------------------------------------
Additional paid-in capital 2,113,507,985
- --------------------------------------------------------------------------------
Overdistributed net investment income (312,708)
- --------------------------------------------------------------------------------
Accumulated net realized loss on investment transactions (183,026,618)
- --------------------------------------------------------------------------------
Net unrealized appreciation on investments 89,884,943
----------------
Net Assets $2,020,820,902
----------------
10 | OPPENHEIMER QUEST OPPORTUNITY VALUE FUND
- ------------------------------------------------------------------------------
Net Asset Value Per Share
Class A Shares:
Net asset value and redemption price per
share (based on net assets of
$1,270,375,880 and 47,923,765 shares of
beneficial interest outstanding) $26.51
Maximum offering price per share (net
asset value plus sales charge of
5.75% of offering price) $28.13
- ------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable
contingent deferred sales charge) and offering price per
share (based on net assets of $512,882,157 and 19,693,550
shares of beneficial interest outstanding) $26.04
- ------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes
applicable contingent deferred
sales charge) and offering price per share
(based on net assets of $192,529,953
and 7,411,363 shares of beneficial interest outstanding) $25.98
- ------------------------------------------------------------------------------
Class N Shares:
Net asset value, redemption price (excludes applicable
contingent deferred sales charge) and offering price
per share (based on net assets of $17,429,609
and 662,640 shares of beneficial interest outstanding) $26.30
- ------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and
offering price per share (based on net
assets of $27,603,303 and 1,038,635 shares
of beneficial interest outstanding) $26.58
See accompanying Notes to Financial Statements.
11 | OPPENHEIMER QUEST OPPORTUNITY VALUE FUND
STATEMENT OF OPERATIONS Unaudited
For the Six Months Ended April 30, 2003
- ------------------------------------------------------------------------------
Investment Income
Dividends (net of foreign withholding taxes of $153,000) $ 14,322,710
- ------------------------------------------------------------------------------
Interest 5,844,782
--------------
Total investment income 20,167,492
- ------------------------------------------------------------------------------
Expenses
Management fees 8,997,437
- ------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 1,682,816
Class B 2,943,776
Class C 966,965
Class N 38,946
- ------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 1,699,583
Class B 890,777
Class C 256,718
Class N 64,694
Class Y 58,601
- ------------------------------------------------------------------------------
Shareholder reports 323,480
- ------------------------------------------------------------------------------
Trustees' compensation 16,680
- ------------------------------------------------------------------------------
Custodian fees and expenses 8,119
- ------------------------------------------------------------------------------
Other 170,407
--------------
Total expenses 18,118,999
Less reduction to custodian expenses (4,535)
Less voluntary waiver of transfer and shareholder
servicing agent fees--Class N (42,330)
Less voluntary waiver of transfer and shareholder
servicing agent fees--Class Y (21,989)
--------------
Net expenses 18,050,145
- ------------------------------------------------------------------------------
Net Investment Income 2,117,347
- ------------------------------------------------------------------------------
Realized and Unrealized Gain
Net realized gain on investments 11,238,606
- ------------------------------------------------------------------------------
Net change in unrealized appreciation on investments 8,236,287
--------------
Net realized and unrealized gain 19,474,893
- ------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations $21,592,240
--------------
See accompanying Notes to Financial Statements.
12 | OPPENHEIMER QUEST OPPORTUNITY VALUE FUND
STATEMENTS OF CHANGES IN NET ASSETS
Six Months Year
Ended Ended
April 30, 2003 October 31,
(Unaudited) 2002
- -------------------------------------------------------------------------------------------------------------
Operations
Net investment income $ 2,117,347 $ 13,152,268
- -------------------------------------------------------------------------------------------------------------
Net realized gain (loss) 11,238,606 (167,047,784)
- -------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) 8,236,287 (240,811,400)
--------------------------------------------
Net increase (decrease) in net assets
resulting from operations 21,592,240 (394,706,916)
- -------------------------------------------------------------------------------------------------------------
Dividends and/or Distributions to Shareholders
Dividends from net investment income:
Class A (11,712,393) (15,901,977)
Class B -- (6,149,541)
Class C (389,823) (1,540,507)
Class N (132,979) (56,109)
Class Y (317,784) (378,333)
- -------------------------------------------------------------------------------------------------------------
Beneficial Interest Transactions
Net increase (decrease) in net assets resulting from beneficial interest
transactions:
Class A 84,077,968 117,293,913
Class B (182,667,245) (314,532,059)
Class C (12,174,290) (13,709,069)
Class N 2,471,136 14,922,973
Class Y 2,889,649 (18,471,746)
- -------------------------------------------------------------------------------------------------------------
Net Assets
Total decrease (96,363,521) (633,229,371)
- -------------------------------------------------------------------------------------------------------------
Beginning of period 2,117,184,423 2,750,413,794
--------------------------------------------
End of period [including
undistributed (overdistributed) net
investment income of $(312,708) and
$10,122,924, respectively] $2,020,820,902 $2,117,184,423
============================================
See accompanying Notes to Financial Statements.
13 | OPPENHEIMER QUEST OPPORTUNITY VALUE FUND
FINANCIAL HIGHLIGHTS
Six Months Year
Ended Ended
April 30, 2003 Oct. 31,
Class A (Unaudited) 2002 2001 2000 1999 1998
- -----------------------------------------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $ 26.41 $ 31.30 $ 36.04 $ 39.96 $ 36.44 $ 35.62
- -----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .05 .24 .33 .59 .22 .31
Net realized and unrealized gain (loss) .31 (4.74) (1.19) .34 5.46 1.72
-------------------------------------------------------------------------------------
Total from investment operations .36 (4.50) (.86) .93 5.68 2.03
- -----------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.26) (.39) (.58) (.20) (.31) (.18)
Distributions from net realized gain -- -- (3.30) (4.65) (1.85) (1.03)
-------------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.26) (.39) (3.88) (4.85) (2.16) (1.21)
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $26.51 $26.41 $31.30 $36.04 $39.96 $36.44
=====================================================================================
- -----------------------------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 1 1.35% (14.60)% (2.79)% 2.82% 16.31% 5.83%
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period
(in thousands) $1,270,376 $1,181,014 $1,285,953 $1,325,552 $1,820,497 $2,026,959
- -----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $1,211,524 $1,300,422 $1,348,895 $1,486,116 $1,894,250 $2,070,927
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income 0.48% 0.82% 1.01% 1.42% 0.50% 0.85%
Expenses 1.50% 1.52% 1.51% 1.53% 1.57% 1.54% 3
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 30% 73% 42% 63% 47% 45%
1. Assumes an investment 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 returns. Total returns are not annualized for periods of less than one
full year.
2. Annualized for periods of less than one full year.
3. Expense ratio has been calculated without adjustment for the reduction to
custodian expenses.
See accompanying Notes to Financial Statements.
14 | OPPENHEIMER QUEST OPPORTUNITY VALUE FUND
Six Months Year
Ended Ended
April 30, 2003 Oct. 31,
Class B (Unaudited) 2002 2001 2000 1999 1998
- ----------------------------------------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $ 25.79 $ 30.56 $ 35.25 $ 39.19 $ 35.79 $ 35.05
- ----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.05) .03 .15 .32 (.02) .13
Net realized and unrealized gain (loss) .30 (4.63) (1.20) .39 5.41 1.68
------------------------------------------------------------------------------------
Total from investment operations .25 (4.60) (1.05) .71 5.39 1.81
- ----------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- (.17) (.34) -- (.14) (.04)
Distributions from net realized gain -- -- (3.30) (4.65) (1.85) (1.03)
------------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders -- (.17) (3.64) (4.65) (1.99) (1.07)
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $26.04 $25.79 $30.56 $35.25 $39.19 $35.79
====================================================================================
- ----------------------------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 1 0.97% (15.16)% (3.40)% 2.23% 15.72% 5.29%
- ----------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period
(in thousands) $512,882 $693,380 $1,157,671 $1,393,095 $1,969,529 $1,996,142
- ----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $592,640 $981,593 $1,326,222 $1,585,561 $1,986,358 $1,976,134
- ----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income (loss) (0.23)% 0.17% 0.42% 0.82% (0.03)% 0.35%
Expenses 2.24% 2.17% 2.11% 2.13% 2.10% 2.04% 3
- ----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 30% 73% 42% 63% 47% 45%
1. Assumes an investment 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 returns. Total returns are not annualized for periods of less than one
full year.
2. Annualized for periods of less than one full year.
3. Expense ratio has been calculated without adjustment for the reduction to
custodian expenses.
See accompanying Notes to Financial Statements.
15 | OPPENHEIMER QUEST OPPORTUNITY VALUE FUND
FINANCIAL HIGHLIGHTS Continued
Six Months Year
Ended Ended
April 30, 2003 Oct. 31,
Class C (Unaudited) 2002 2001 2000 1999 1998
- -----------------------------------------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $ 25.77 $ 30.55 $ 35.24 $ 39.17 $ 35.75 $ 35.01
- -----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.03) .05 .14 .35 (.01) .13
Net realized and unrealized gain (loss) .29 (4.65) (1.18) .37 5.40 1.68
-------------------------------------------------------------------------------------
Total from investment operations .26 (4.60) (1.04) .72 5.39 1.81
- -----------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.05) (.18) (.35) -- (.12) (.04)
Distributions from net realized gain -- -- (3.30) (4.65) (1.85) (1.03)
-------------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.05) (.18) (3.65) (4.65) (1.97) (1.07)
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $25.98 $25.77 $30.55 $35.24 $39.17 $35.75
=====================================================================================
- -----------------------------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 1 1.01% (15.16)% (3.37)% 2.26% 15.74% 5.29%
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period
(in thousands) $192,530 $203,490 $257,556 $287,103 $428,182 $475,510
- -----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $194,936 $245,055 $280,327 $336,213 $448,383 $487,222
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income (loss) (0.21)% 0.18% 0.41% 0.86% (0.02)% 0.35%
Expenses 2.21% 2.16% 2.11% 2.08% 2.08% 2.04% 3
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 30% 73% 42% 63% 47% 45%
1. Assumes an investment 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 returns. Total returns are not annualized for periods of less than one
full year.
2. Annualized for periods of less than one full year.
3. Expense ratio has been calculated without adjustment for the reduction to
custodian expenses.
See accompanying Notes to Financial Statements.
16 | OPPENHEIMER QUEST OPPORTUNITY VALUE FUND
Six Months Year
Ended Ended
April 30, 2003 Oct. 31,
Class N (Unaudited) 2002 2001 1
- -------------------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $ 26.21 $ 31.26 $ 33.48
- -------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .06 .49 .03
Net realized and unrealized gain (loss) .26 (5.02) (2.25)
-----------------------------------------------
Total from investment operations .32 (4.53) (2.22)
- -------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.23) (.52) --
Distributions from net realized gain -- -- --
-----------------------------------------------
Total dividends and/or distributions to shareholders (.23) (.52) --
- -------------------------------------------------------------------------------------------------------------
Net asset value, end of period $26.30 $26.21 $31.26
===============================================
- -------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 2 1.22% (14.78)% (6.63)%
- -------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $17,430 $14,843 $2,292
- -------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $15,722 $10,295 $ 646
- -------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 0.24% 0.55% 0.47%
Expenses, gross 2.27% 1.76% 1.63%
Expenses, net 1.73% 4,5 1.76% 4,6 1.63% 4
- -------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 30% 73% 42%
1. For the period from March 1, 2001 (inception of offering) to October 31,
2001.
2. Assumes an 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.
3. Annualized for periods of less than one full year.
4. Reduction to custodian expenses less than 0.01%.
5. Net of voluntary waiver of transfer agent fees.
6. Voluntary waiver of transfer agent fees less than 0.01%.
See accompanying Notes to Financial Statements.
17 | OPPENHEIMER QUEST OPPORTUNITY VALUE FUND
FINANCIAL HIGHLIGHTS Continued
Six Months Year
Ended Ended
April 30, 2003 Oct. 31,
Class Y (Unaudited) 2002 2001 2000 1999 1998
- -----------------------------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $ 26.53 $ 31.40 $ 36.21 $ 40.17 $ 36.64 $ 35.77
- -----------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .08 .56 .45 .71 .35 .48
Net realized and unrealized gain (loss) .31 (4.99) (1.21) .39 5.48 1.74
-------------------------------------------------------------------------
Total from investment operations .39 (4.43) (.76) 1.10 5.83 2.22
- -----------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.34) (.44) (.75) (.41) (.45) (.32)
Distributions from net realized gain -- -- (3.30) (4.65) (1.85) (1.03)
-------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.34) (.44) (4.05) (5.06) (2.30) (1.35)
- -----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $26.58 $26.53 $31.40 $36.21 $40.17 $36.64
=========================================================================
- -----------------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 1 1.49% (14.34)% (2.48)% 3.30% 16.74% 6.38%
- -----------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $27,603 $24,458 $46,942 $39,945 $54,692 $22,843
- -----------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $25,137 $28,726 $45,797 $43,926 $41,178 $20,347
- -----------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income 0.74% 1.17% 1.32% 1.87% 0.98% 1.39%
Expenses, gross 1.41% 1.34% 1.17% 1.07% 1.14% 1.00% 3
Expenses, net 1.23% 4,5 1.23% 4,5 1.17% 4 1.07% 4 1.14% 4 1.00%
- -----------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 30% 73% 42% 63% 47% 45%
1. Assumes an investment 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 returns. Total returns are not annualized for periods of less than one
full year.
2. Annualized for periods of less than one full year.
3. Expense ratio has been calculated without adjustment for the reduction to
custodian expenses.
4. Reduction to custodian expenses less than 0.01%.
5. Net of voluntary waiver of transfer agent fees.
See accompanying Notes to Financial Statements.
18 | OPPENHEIMER QUEST OPPORTUNITY VALUE FUND
NOTES TO FINANCIAL STATEMENTS Unaudited
- --------------------------------------------------------------------------------
1. Significant Accounting Policies
Oppenheimer Quest Opportunity Value Fund (the Fund), a series of Oppenheimer
Quest For Value Funds, is an open-end management investment company registered
under the Investment Company Act of 1940, as amended. The Fund's investment
objective is to seek growth of capital. 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, Class C, Class N and Class Y shares. Class
A shares are sold at their offering price, which is normally net asset value
plus a front-end sales charge. Class B, Class C and Class N shares are sold
without a front-end sales charge but may be subject to a contingent deferred
sales charge (CDSC). Class N shares are sold only through retirement plans.
Retirement plans that offer Class N shares may impose charges on those
accounts. Class Y shares are sold to certain institutional investors without
either a front-end sales charge or a CDSC. All classes of shares have identical
rights and voting privileges. Earnings, net assets and net asset value per
share may differ by minor amounts due to each class having its own expenses
directly attributable to that class. Classes A, B, C and N have separate
distribution and/or service plans. No such plan has been adopted for Class Y
shares. Class B shares will automatically convert to Class A shares six years
after the date of purchase.
The following is a summary of significant accounting policies consistently
followed by the Fund.
- --------------------------------------------------------------------------------
Securities Valuation. Securities listed or traded on National Stock Exchanges
or other domestic or foreign exchanges are valued based on the last sale price
of the security traded on that exchange prior to the time when the Fund's
assets are valued. In the absence of a sale, the security is valued at the last
sale price on the prior trading day, if it is within the spread of the closing
bid and asked prices, and if not, at the closing bid price. Securities
(including restricted securities) for which quotations are not readily
available are valued primarily using dealer-supplied valuations, a portfolio
pricing service authorized by the Board of Trustees, or at their fair value.
Fair value is determined in good faith under consistently applied procedures
under the supervision of the Board of Trustees. Short-term "money market type"
debt securities with remaining maturities of sixty days or less are valued at
amortized cost (which approximates market value).
- --------------------------------------------------------------------------------
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 capital loss
19 | OPPENHEIMER QUEST OPPORTUNITY VALUE FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
1. Significant Accounting Policies Continued
carryforwards, if any, to shareholders. Therefore, no federal income or excise
tax provision is required.
As of April 30, 2003, the Fund had available for federal income tax purposes
an estimated unused capital loss carryforward of $171,239,109. This estimated
capital loss carryforward represents the carryforward as of the end of the last
fiscal year, increased for losses deferred under tax accounting rules for the
current fiscal year and is increased or decreased by capital losses or gains
realized in the first six months of the current fiscal year. During the six
months ended April 30, 2003, the Fund used $11,238,606 of carryforward to
offset capital gains realized. During the year ended October 31, 2002, the Fund
did not use carryforward to offset capital gains realized.
As of October 31, 2002, the Fund had available for federal income tax purposes
unused capital loss carryforwards as follows:
Expiring
----------------------
2009 $ 11,666,725
2010 170,810,990
------------
Total $182,477,715
============
- --------------------------------------------------------------------------------
Trustees' Compensation. The Fund has adopted an unfunded retirement plan for
the Fund's independent trustees. Benefits are based on years of service and
fees paid to each trustee during the years of service. During the six months
ended April 30, 2003, the Fund's projected benefit obligations were decreased
by $7,610 and payments of $8,954 were made to retired trustees, resulting in an
accumulated liability of $324,215 as of April 30, 2003.
The Board of Trustees has adopted a deferred compensation plan for
independent trustees that enables trustees to elect to defer receipt of all or
a portion of the annual compensation they are entitled to receive from the
Fund. Under the plan, the compensation deferred is invested by the Fund in the
fund(s) selected by the trustee. Deferral of trustees' fees under the plan will
not affect the net assets of the Fund, and will not materially affect the
Fund's assets, liabilities or net investment income per share.
- --------------------------------------------------------------------------------
Dividends and Distributions to Shareholders. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations,
are recorded on the ex-dividend date.
- --------------------------------------------------------------------------------
Classification of Dividends and Distributions to Shareholders. Net investment
income (loss) and net realized gain (loss) may differ for financial statement
and tax purposes. The character of dividends and distributions made during the
fiscal year from net investment income or net realized gains may differ from
their ultimate characterization for federal income tax purposes. Also, due to
timing of dividends and distributions, the fiscal year in which amounts are
distributed may differ from the fiscal year in which the income or net realized
gain was recorded by the Fund.
20 | OPPENHEIMER QUEST OPPORTUNITY VALUE FUND
The tax character of distributions paid during the six months ended April 30,
2003 and the year ended October 31, 2002 was as follows:
Six Months Ended Year Ended
April 30, 2003 October 31, 2002
---------------------------------------------------------------
Distributions paid from:
Ordinary income $12,552,979 $24,026,467
Long-term capital gain -- --
Return of capital -- --
---------------------------------
Total $12,552,979 $24,026,467
=================================
- --------------------------------------------------------------------------------
Investment Income. Dividend income is recorded on the ex-dividend date or upon
ex-dividend notification in the case of certain foreign dividends where the
ex-dividend date may have passed. Non-cash dividends included in dividend
income, if any, are recorded at the fair market value of the securities
received. Interest income, which includes accretion of discount and
amortization of premium, is accrued as earned.
- --------------------------------------------------------------------------------
Security Transactions. Security transactions are recorded on the trade date.
Realized gains and losses on securities sold are determined on the basis of
identified cost.
- --------------------------------------------------------------------------------
Other. The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts
of assets and liabilities and disclosure of contingent assets and liabilities
at the date of the financial statements and the reported amounts of income and
expenses during the reporting period. Actual results could differ from those
estimates.
- --------------------------------------------------------------------------------
2. Shares of Beneficial Interest
The Fund has authorized an unlimited number of $.01 par value shares of
beneficial interest of each class. Transactions in shares of beneficial
interest were as follows:
Six Months Ended April 30, 2003 Year Ended October 31, 2002
Shares Amount Shares Amount
- ------------------------------------------------------------------------------------------------------
Class A
Sold 8,752,232 $ 226,875,316 14,738,098 $ 441,197,976
Dividends and/or
distributions reinvested 414,018 10,892,837 463,238 14,754,127
Redeemed (5,957,617) (153,690,185) (11,574,654) (338,658,190)
--------------------------------------------------------------------------
Net increase 3,208,633 $ 84,077,968 3,626,682 $ 117,293,913
==========================================================================
- ------------------------------------------------------------------------------------------------------
Class B
Sold 1,003,510 $ 25,538,774 2,934,475 $ 87,327,724
Dividends and/or
distributions reinvested -- -- 178,950 5,599,347
Redeemed (8,192,005) (208,206,019) (14,116,397) (407,459,130)
--------------------------------------------------------------------------
Net decrease (7,188,495) $(182,667,245) (11,002,972) $(314,532,059)
==========================================================================
21 | OPPENHEIMER QUEST OPPORTUNITY VALUE FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
2. Shares of Beneficial Interest Continued
Six Months Ended April 30, 2003 Year Ended October 31, 2002
Shares Amount Shares Amount
- -------------------------------------------------------------------------------------------------------
Class C
Sold 461,809 $ 11,758,922 1,336,866 $ 39,503,632
Dividends and/or
distributions reinvested 13,425 347,059 43,323 1,354,281
Redeemed (959,139) (24,280,271) (1,916,590) (54,566,982)
---------------------------------------------------------------------------
Net decrease (483,905) $(12,174,290) (536,401) $(13,709,069)
===========================================================================
- -------------------------------------------------------------------------------------------------------
Class N
Sold 162,091 $ 4,161,259 587,227 $ 17,677,458
Dividends and/or
distributions reinvested 5,090 132,970 1,771 56,093
Redeemed (70,783) (1,823,093) (96,091) (2,810,578)
---------------------------------------------------------------------------
Net increase 96,398 $ 2,471,136 492,907 $ 14,922,973
===========================================================================
- -------------------------------------------------------------------------------------------------------
Class Y
Sold 226,909 $ 5,747,401 415,522 $ 12,503,449
Dividends and/or
distributions reinvested 12,055 317,784 11,852 378,332
Redeemed (122,201) (3,175,536) (1,000,613) (31,353,527)
---------------------------------------------------------------------------
Net increase (decrease) 116,763 $ 2,889,649 (573,239) $(18,471,746)
===========================================================================
- --------------------------------------------------------------------------------
3. Purchases and Sales of Securities
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations, for the six months ended April 30, 2003, were
$605,756,749 and $563,983,205, respectively.
- --------------------------------------------------------------------------------
4. Fees and Other Transactions with Affiliates
Management Fees. Management fees paid to the Manager were in accordance with
the investment advisory agreement with the Fund the agreement provides for an
annual fee of 1.00% of the first $400 million of average annual net assets of
the Fund, 0.90% of the next $400 million, 0.85% of the next $2.2 billion, 0.75%
of the next $1 billion and 0.65% of average annual net assets in excess of $4
billion.
- --------------------------------------------------------------------------------
Sub-Advisor Fees. The Manager retains OpCap Advisors (the Sub-Advisor) to
provide the day-to-day portfolio management of the Fund. For the six months
ended April 30, 2003, the Manager paid $3,059,455 to the Sub-Advisor for its
services to the Fund.
- --------------------------------------------------------------------------------
Transfer Agent Fees. OppenheimerFunds Services (OFS), a division of the
Manager, acts as the transfer and shareholder servicing agent for the Fund. The
Fund pays OFS a $19.75 per account fee.
Additionally, Class Y shares are subject to minimum fees of $5,000 for
assets of less than $10 million and $10,000 for assets of $10 million or more.
The Class Y shares are
22 | OPPENHEIMER QUEST OPPORTUNITY VALUE FUND
subject to the minimum fees in the event that the per account fee does not
equal or exceed the applicable minimum fees. OFS may voluntarily waive the
minimum fees.
OFS has voluntarily agreed to limit transfer and shareholder servicing agent
fees up to an annual rate of 0.35% of average annual net assets for all
classes. This undertaking may be amended or withdrawn at any time.
- --------------------------------------------------------------------------------
Distribution and Service Plan (12b-1) Fees. Under its General Distributor's
Agreement with the Manager, OppenheimerFunds Distributor, Inc. (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.
Aggregate Class A Concessions Concessions Concessions Concessions
Front-End Front-End on Class A on Class B on Class C on Class N
Sales Charges Sales Charges Shares Shares Shares Shares
Six Months on Class A Retained by Advanced by Advanced by Advanced by Advanced by
Ended Shares Distributor Distributor 1 Distributor 1 Distributor 1 Distributor 1
- ----------------------------------------------------------------------------------------------------------------------
April 30, 2003 $729,978 $205,082 $154,906 $735,870 $87,139 $37,304
1. The Distributor advances concession payments to dealers for certain sales of
Class A shares and for sales of Class B, Class C and Class N shares from its own
resources at the time of sale.
Class A Class B Class C Class N
Contingent Contingent Contingent Contingent
Deferred Deferred Deferred Deferred
Sales Charges Sales Charges Sales Charges Sales Charges
Retained by Retained by Retained by Retained by
Six Months Ended Distributor Distributor Distributor Distributor
- ----------------------------------------------------------------------------------------------------------
April 30, 2003 $7,904 $946,740 $13,928 $9,897
- --------------------------------------------------------------------------------
Class A Distribution and Service Plan Fees. The Fund has adopted a Distribution
and Service Plan for Class A shares. Under the plan the Fund paid an
asset-based sales charge to the Distributor at an annual rate equal to 0.15% of
average annual net assets representing Class A shares purchased before
September 1, 1993 and 0.10% of average annual net assets representing Class A
shares purchased on or after that date. Effective January 1, 2003, the Board of
Trustees has voluntarily reduced the asset-based sales charge in all Class A
shares to zero. The Fund also pays a service fee to the Distributor of 0.25% of
the average annual net assets of Class A shares. For the six months ended April
30, 2003, payments under the Class A plan totaled $1,682,816, all of which were
paid by the Distributor to recipients, and included $90,015 paid to an
affiliate of the Manager.
- --------------------------------------------------------------------------------
Distribution and Service Plans for Class B, Class C and Class N Shares. The
Fund has adopted Distribution and Service Plans for Class B, Class C and Class
N shares. Under the plans, the Fund pays the Distributor an annual asset-based
sales charge of 0.75% per year on Class B shares and on Class C shares and the
Fund pays the Distributor an annual asset-based sales charge of 0.25% per year
on Class N shares. The Distributor also receives a service fee of 0.25% per
year under each plan.
23 | OPPENHEIMER QUEST OPPORTUNITY VALUE FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
4. Fees and Other Transactions with Affiliates Continued
Distribution fees paid to the Distributor for the six months ended April 30,
2003, were as follows:
Distributor's
Distributor's Aggregate
Aggregate Unreimbursed
Unreimbursed Expenses as %
Total Payments Amount Retained Expenses of Net Assets
Under Plan by Distributor Under Plan of Class
- -------------------------------------------------------------------------------------------------------
Class B Plan $2,943,776 $2,222,046 $3,748,378 0.73%
Class C Plan 966,965 121,824 5,848,555 3.04
Class N Plan 38,946 33,732 392,183 2.25
- --------------------------------------------------------------------------------
5. Borrowing and Lending Arrangements
Bank Borrowings. The Fund had the ability to borrow from banks for temporary or
emergency purposes. Asset coverage for borrowings must be at least 300%. The
Fund and other Oppenheimer funds participated in a $400 million unsecured line
of credit from a bank, for liquidity purposes. Under that line of credit, each
fund was charged interest on its borrowings at a rate equal to the Federal
Funds rate plus 0.45%. The Fund paid a commitment fee on its pro rata share of
the average unutilized amount of the credit facility at a rate of 0.08% per
annum. The credit facility was terminated on November 12, 2002, when the Fund
entered into the interfund borrowing and lending arrangements described below.
The Fund had no outstanding borrowings under the credit facility through
November 12, 2002.
- --------------------------------------------------------------------------------
Interfund Borrowing and Lending Arrangements. Commencing November 12, 2002, the
Fund entered into an "interfund borrowing and lending arrangement" with other
funds in the Oppenheimer funds complex, to allow funds to borrow for liquidity
purposes. The arrangement was initiated pursuant to exemptive relief granted by
the Securities and Exchange Commission to allow these affiliated funds to lend
money to, and borrow money from, each other, in an attempt to reduce borrowing
costs below those of bank loan facilities. Under the arrangement the Fund may
lend money to other Oppenheimer funds and may borrow from other Oppenheimer
funds at a rate set by the Fund's Board of Trustees, based upon a
recommendation by the investment manager. The Fund's borrowings, if any, are
subject to asset coverage requirements under the Investment Company Act and the
provisions of the SEC order and other applicable regulations. If the Fund
borrows money, there is a risk that the loan could be called on one day's
notice, in which case the Fund might have to borrow from a bank at higher rates
if a loan were not available from another Oppenheimer fund. If the Fund lends
money to another fund, it will be subject to the risk that the other fund might
not repay the loan in a timely manner, or at all.
The Fund had no interfund borrowings or loans outstanding during the six
months ended or at April 30, 2003.
24 | OPPENHEIMER QUEST OPPORTUNITY VALUE FUND
OPPENHEIMER QUEST OPPORTUNITY VALUE FUND SM
A Series of Oppenheimer Quest For Value Funds
- --------------------------------------------------------------------------------
Trustees and Officers Thomas W. Courtney, Chairman
John V. Murphy, President
Paul Y. Clinton, Trustee
Robert G. Galli, Trustee
Lacy B. Herrmann, Trustee
Brian Wruble, Trustee
Robert G. Zack, Secretary
Brian W. Wixted, Treasurer
- --------------------------------------------------------------------------------
Investment Advisor OppenheimerFunds, Inc.
- --------------------------------------------------------------------------------
Sub-Advisor OpCap Advisors
- --------------------------------------------------------------------------------
Distributor OppenheimerFunds Distributor, Inc.
- --------------------------------------------------------------------------------
Transfer and Shareholder OppenheimerFunds Services
Servicing Agent
- --------------------------------------------------------------------------------
Independent Auditors KPMG LLP
- --------------------------------------------------------------------------------
Legal Counsel Mayer Brown Rowe & Maw
The financial statements included herein
have been taken from the records of the Fund
without examination of those records by the
independent auditors.
(C)Copyright 2003 OppenheimerFunds, Inc. All rights reserved.
Not part of the semiannual report to Fund shareholders
25 | OPPENHEIMER QUEST OPPORTUNITY VALUE FUND
OPPENHEIMERFUNDS FAMILY
- -------------------------------------------------------------------------------------------------------
Global Equity Developing Markets Fund Global Fund
International Small Company Fund Quest Global Value Fund, Inc.
International Growth Fund Global Opportunities Fund 1
- -------------------------------------------------------------------------------------------------------
Equity Stock Stock & Bond
Emerging Technologies Fund Quest Opportunity Value Fund
Emerging Growth Fund Total Return Fund, Inc.
Enterprise Fund Quest Balanced Value Fund
Discovery Fund Capital Income Fund
Main Street Small Cap Fund(R) Multiple Strategies Fund
Small Cap Value Fund Disciplined Allocation Fund
MidCap Fund Convertible Securities Fund
Main Street Opportunity Fund(R) Specialty
Growth Fund Real Asset Fund(R)
Capital Appreciation Fund Gold & Special Minerals Fund
Main Street Fund(R) 2 Tremont Market Neutral Fund, LLC 3
Value Fund Tremont Opportunity Fund, LLC 3
Quest Capital Value Fund, Inc.
Quest Value Fund, Inc.
Trinity Large Cap Growth Fund
Trinity Core Fund
Trinity Value Fund
- -------------------------------------------------------------------------------------------------------
Income Taxable Rochester Division
International Bond Fund California Municipal Fund 5
High Yield Fund New Jersey Municipal Fund 5
Champion Income Fund AMT-Free New York Municipals 5,6
Strategic Income Fund Municipal Bond Fund
Bond Fund Limited Term Municipal Fund
Total Return Bond Fund Rochester National Municipals
Senior Floating Rate Fund Rochester Fund Municipals
U.S. Government Trust Limited Term New York Municipal Fund
Limited-Term Government Fund Pennsylvania Municipal Fund 5
Capital Preservation Fund 4
- -------------------------------------------------------------------------------------------------------
Select Managers Stock Stock & Bond
Mercury Advisors Focus Growth Fund QM Active Balanced Fund 4
Gartmore Millennium Growth Fund II
Jennison Growth Fund
Salomon Brothers All Cap Fund
Mercury Advisors S&P 500(R) Index Fund 4
- -------------------------------------------------------------------------------------------------------
Money Market 7 Money Market Fund, Inc. Cash Reserves
1. The Fund's name changed from Oppenheimer Global Growth & Income Fund on
6/1/03.
2. The Fund's name changed from Oppenheimer Main Street Growth & Income Fund(R)
on 4/30/03.
3. Special investor qualification and minimum investment requirements apply. See
the prospectus for details.
4. Available only through qualified retirement plans.
5. Available to investors only in certain states.
6. The Fund's name changed from Oppenheimer New York Municipal Fund on 1/22/03.
7. 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.
Not part of the semiannual report to Fund shareholders
26 | OPPENHEIMER QUEST OPPORTUNITY VALUE FUND
1.800.CALL OPP PHONELINK
Call 1.800.CALL OPP (1.800.225.5677) for answers to many of your questions. Our
automated speech recognition system provides you access to all the information
and services you need.
With PhoneLink you can:
o Obtain account balances, share price (NAV) and dividends paid
o Verify your most recent transactions
o Buy, redeem or exchange mutual fund shares
o Create custom lists of your accounts, funds or market indices
o Order duplicate statements or Form 1099 DIV
o Obtain market data (closing market information for Dow Jones Industrial
Average, Nasdaq Composite and S&P 500 Index)
o Speak to a Customer Service Representative 1 by saying "Agent" when prompted
o And more!
Quick list of PhoneLink commands
Say To:
[Account # or Social Security # + PIN] Get dollar and share balances,
NAVs, transaction history or request
transactions
[Fund name, share class] Get current price/dividend information
Balance Hear your balance/list of accounts
History Hear your most recent transactions
Purchase or buy Buy shares
Exchange Exchange shares
Liquidation or redemption Sell shares
Dow Jones or Market Indices Hear closing market information
(Dow Jones Industrial Average, Nasdaq
Composite and S&P 500)
Custom list Create, play or edit custom list of
your accounts, funds or market indices
1. You may speak to a Customer Service Representative during normal business
hours.
Not part of the semiannual report to Fund shareholders
27 | OPPENHEIMER QUEST OPPORTUNITY VALUE FUND
PRIVACY POLICY NOTICE
As an Oppenheimer fund shareholder, you are entitled to know how we protect your
personal information and how we limit its disclosure.
Information Sources
We obtain nonpublic personal information about our shareholders from the
following sources:
o Applications or other forms
o When you create a user ID and password for online account access
o When you enroll in eDocs Direct, our electronic document delivery service
o Your transactions with us, our affiliates or others
o A software program on our website, often referred to as a "cookie," which
indicates which parts of our site you've visited
If you visit www.oppenheimerfunds.com and do not log on to the secure account
information areas, we do not obtain any personal information about you. When you
do log on to a secure area, we do obtain your user ID and password to identify
you. We also use this information to provide you with products and services you
have requested, to inform you about products and services that you may be
interested in and to assist you in other ways.
Protection of Information
We do not disclose any nonpublic personal information (such as names on a
customer list) about current or former customers to anyone, except as permitted
by law.
Disclosure of Information
We send your financial advisor (as designated by you) copies of confirmations,
account statements and other documents reporting activity in your fund accounts.
We may also use details about you and your investments to help us, our financial
service affiliates or firms that jointly market their financial products and
services with ours, to better serve your investment needs or suggest financial
services or educational material that may be of interest to you.
Right of Refusal
We will not disclose your personal information to unaffiliated third parties
(except as permitted by law), unless we first offer you a reasonable opportunity
to refuse or "opt out" of such disclosure.
Security
In the coming months, an Internet browser that supports 128-bit encryption will
be required to view the secure pages of www.oppenheimerfunds.com. These areas
include:
o Account access
o Create a user ID and profile
o User profile
o eDocs Direct, our electronic document delivery service
Not part of the semiannual report to Fund shareholders
28 | OPPENHEIMER QUEST OPPORTUNITY VALUE FUND
To find out if your Internet browser supports 128-bit encryption, or for
instructions on how to upgrade your browser, visit the Help section of
www.oppenheimerfunds.com.
Emails and Encryption
As a security measure, we do not include personal or account information in
nonsecure emails, and we advise you not to send such information to us in
nonsecure emails. Instead, you may take advantage of the secure features of our
website to encrypt your email correspondence. To do this, you will need to use
an Internet browser that supports 128-bit encryption. If you are not sure if
your Internet browser supports 128-bit encryption, or need instructions on how
to upgrade your browser, visit the Help section of www.oppenheimerfunds.com for
assistance.
o All transactions, including redemptions, exchanges and purchases are secured
by Secure Socket Layers (SSL) and encryption. SSL is used to establish a
secure connection between your PC and OppenheimerFunds' server. It transmits
information in an encrypted and scrambled format.
o 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
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.
o You can exit the secure area by either closing your browser, or for added
security, you can use the Log Out of Account Area button before you close
your browser.
Other Security Measures
We maintain physical, electronic and procedural safeguards to protect your
personal account information. Our employees and agents have access to that
information only so that they may offer you products or provide services to you,
for example, when responding to your account questions.
How You Can Help
You can also do your part to keep your account information private, and to
prevent unauthorized transactions. If you obtain a user ID and password for your
account, do not allow it to be used by anyone else. Also, take special
precautions when accessing your account on a computer used by others.
- --------------------------------------------------------------------------------
This joint notice describes the privacy policies of Oppenheimer funds,
OppenheimerFunds Distributor, Inc., the trustee of OppenheimerFunds Individual
Retirement Accounts (IRAs) and the custodian of the OppenheimerFunds 403(b)(7)
tax-sheltered custodial accounts. It applies to all Oppenheimer fund accounts
you presently have, or may open in the future, using your Social Security
number--whether or not you remain a shareholder of our funds. If you have any
questions about these privacy policies, write to us at P.O. Box 5270, Denver, CO
80217-5270, email us by clicking on the Contact Us section of our website at
www.oppenheimerfunds.com or call us at 1.800.CALL OPP (1.800.225.5677).
Not part of the semiannual report to Fund shareholders
29 | OPPENHEIMER QUEST OPPORTUNITY VALUE FUND
INFORMATION AND SERVICES
[GRAPHIC] eDocsDirect
Get This Report Online!
You can quickly view, download and print this report at your convenience. It's
EASY, FAST, CONVENIENT, and FREE! With OppenheimerFunds eDocs Direct, you'll
receive email notification when shareholder reports, prospectuses or prospectus
supplements for your fund(s) become available online, instead of receiving them
through the mail. You'll cut down on paper mail and help reduce fund expenses!
Sign up for eDocs Direct today at
www.oppenheimerfunds.com
Internet
24-hr access to account information and transactions 1
www.oppenheimerfunds.com
- --------------------------------------------------------------------------------
PhoneLink 1 and General Information
24-hr automated information and automated transactions
Representatives also available Mon-Fri 8am-9pm ET
Sat (January-April) 10am-4pm ET
1.800.CALL OPP (1.800.225.5677)
- --------------------------------------------------------------------------------
Written Correspondence and Transaction Requests
OppenheimerFunds Services
P.O. Box 5270, Denver, CO 80217-5270
For Overnight Delivery
OppenheimerFunds Services
10200 East Girard Avenue, Building D
Denver, CO 80231
- --------------------------------------------------------------------------------
Ticker Symbols
Class A: QVOPX Class B: QOPBX Class C: QOPCX Class N: QOPNX Class Y: QOPYX
1. At times the website or PhoneLink may be inaccessible or their transaction
features may be unavailable.
Not part of the semiannual report to Fund shareholders
[LOGO]
OppenheimerFunds (R)
Distributor, Inc.
RS0236.001.0403 June 27, 2003
ITEM 2. CODE OF ETHICS - NOT REQUIRED
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT - NOT REQUIRED
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES - NOT REQUIRED
ITEM 5. RESERVED
ITEM 6. RESERVED
ITEM 7. NOT APPLICABLE
ITEM 8. RESERVED
ITEM 9. CONTROLS AND PROCEDURES
(a) Based on their evaluation of registrant's disclosure controls and
procedures (as defined in rule 30a-2(c) under the Investment Company
Act of 1940 (17 CFR 270.30a-2(c)) as of April 30, 2003, registrant's
principal executive officer and principal financial officer found
registrant's disclosure controls and procedures to be appropriately
designed to ensure that information required to be disclosed by
registrant in the reports that it files under the Securities Exchange
Act of 1934 (a) is accumulated and communicated to registrant's
management, including its principal executive officer and principal
financial officer, to allow timely decisions regarding required
disclosure, and (b) is recorded, processed, summarized and reported,
within the time periods specified in the rules and forms adopted by the
U.S. Securities and Exchange Commission.
(b) There have been no significant changes in registrant's internal
controls or in other factors that could significantly affect
registrant's internal controls subsequent to the date of the most
recent evaluation as indicated, including no significant deficiencies
or material weaknesses that required corrective action.
ITEM 10. EXHIBITS ATTACHED HERETO. (ATTACH CERTIFICATIONS AS EXHIBITS)