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 Small Cap 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
Small Cap
Value Fund
Management
Commentaries
and
Semiannual
Report
[GRAPHIC]
MANAGEMENT COMMENTARIES
Performance Update
Investment Strategy Discussion
Listing of Top Holdings
SEMIANNUAL REPORT AND FINANCIAL STATEMENTS
Listing of Investments
Financials
"We evaluate investment opportunities one company at a time, conducting
extensive research into each company's business fundamentals, including its
earnings prospects and the valuation of its stock."
[LOGO]
Oppenheimer Funds(R)
The Right Way to invest
HIGHLIGHTS
Fund Objective
Oppenheimer Small Cap Value Fund seeks capital appreciation.
Fund Highlight
The Fund Class A shares are ranked in the top 30% (118/459) of all funds in the
Lipper Small-Cap Core category, over the one-year period ended April 30, 2003,
according to Lipper, Inc. 1
MANAGEMENT
COMMENTARIES
AND ADDITIONAL
DISCLOSURES
1 Letter to Shareholders
2 Interview with
Your Fund's
Managers
26 Trustees and Officers Listing
28 Privacy Policy Notice
SEMIANNUAL
REPORT AND
FINANCIAL
STATEMENTS
7 Statement of Investments
11 Statement of Assets and Liabilities
13 Statement of Operations
14 Statements
of Changes
in Net Assets
15 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 4.12% -1.87%
- ----------------------------------
Class B 3.74 -1.26
- ----------------------------------
Class C 3.74 2.74
- ----------------------------------
Class N 4.03 3.03
- ----------------------------------
Average Annual Total Returns*
For the 1-Year Period
Ended 4/30/03
Without With
Sales Chg. Sales Chg.
- ----------------------------------
Class A -17.10% -21.87%
- ----------------------------------
Class B -17.66 -21.78
- ----------------------------------
Class C -17.69 -18.51
- ----------------------------------
Class N -17.26 -18.08
1. Lipper, Inc. Lipper rankings are based on total returns, but do not consider
sales charges. The Fund's Class A shares ranked 111/226 and 44/60 for the five-
and 10-year periods ended 4/30/03. Lipper ranking is for the Class A share class
only; other classes may have different performance characteristics. Rankings are
relative peer group ratings and do not necessarily mean that the Fund had high
total returns. Past performance is no guarantee of future results.
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 6 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
[PHOTO]
John V. Murphy
John V. Murphy
President
Oppenheimer
Small Cap Value Fund
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.
Not part of the semiannual report to Fund shareholders
1 | OPPENHEIMER SMALL CAP VALUE FUND
AN INTERVIEW WITH YOUR FUND'S MANAGERS
Q
How did Oppenheimer Small Cap Value Fund perform during the six-month period
that ended April 30, 2003?
A. The Fund's total return of 4.12% was behind the 7.55% total
return provided by its benchmark index, the Russell 2000 Index. 2
The Fund underperformed its benchmark during the reporting period, due in part
to an underweight allocation to technology stocks, which hurt performance as
tech stocks were strong performers overall. However, many of the beaten-down
tech stocks that rallied did not meet the Fund's investment criteria.
What market conditions influenced small-cap value stocks?
It is important to understand that the Fund is not managed according to
macroeconomic or market trends. Instead, we evaluate investment opportunities
one company at a time, conducting extensive research into each company's
business fundamentals, including its earnings prospects and the valuation of its
stock. Within that context, we attempt to find the most compelling opportunities
within each of the industry groups that comprise the Russell 2000 Value Index.
With that said, the investment environment was challenging during the
reporting period. Additional allegations of corporate malfeasance and escalating
tensions leading to the war in Iraq kept investor confidence at relatively low
levels. At the same time, a continued lack of corporate spending and a slowdown
in the consumer sector contributed to a persistently weak U.S. economy. In this
environment, investors preferred investments they considered relatively stable,
such as high-quality bonds, to riskier assets, such as small-cap stocks.
[SIDEBAR]
Portfolio Management
Team
John Damian
Chris Leavy
2. The Fund's performance (Class A shares at NAV) is compared to the Russell
2000 Index, an unmanaged index of equity securities, which measures the
performance of the 2,000 smallest companies in the Russell 3000 Index.
Not part of the semiannual report to Fund shareholders
2 | OPPENHEIMER SMALL CAP VALUE FUND
What industry groups and stocks contributed most to the Fund's performance?
The Fund's holdings within the materials and processing group provided the
most significant positive contribution to performance during the reporting
period. A number of stocks in this group performed well when supply-and-demand
influences drove the prices of many basic materials higher. For example, one of
the Fund's holdings, a gold and copper producer, benefited from higher gold
prices and improving business fundamentals among customers that use copper as a
raw material. 3
The Fund also received strong results from the energy sector, where our
research led us to a number of natural gas producers and oil refiners. At the
same time, our stock selection strategy identified relatively few opportunities
among oil services companies. Oil refiners generally benefited from the effects
on prices of steady customer demand and reduced refining capacity. Natural gas
producers enjoyed higher prices as North American wells became depleted and
relatively few new ones were drilled to replace them.
Among consumer companies, toy manufacturer Hasbro, Inc. is in the midst of
a multi-year turnaround, which was aided during the reporting period by
favorable renegotiation of the terms governing a key licensing agreement.
What industry groups and stocks detracted most from the Fund's performance?
As previously mentioned, the Fund's relatively light exposure to technology
stocks during the reporting period accounted for most of its underperformance
relative to the benchmark. In addition, some individual technology stocks were a
drag on performance. For example, Titan Corp., a technology-oriented defense
contractor, was hurt by the departure of a key executive, and we sold the Fund's
position shortly thereafter.
[SIDEBAR]
"The Fund's holdings within the materials and processing group provided the most
significant positive contribution to performance during the reporting period."
3. The Fund's holdings and allocations are subject to change.
Not part of the semiannual report to Fund shareholders
3 | OPPENHEIMER SMALL CAP VALUE FUND
AN INTERVIEW WITH YOUR FUND'S MANAGERS
Where is the Fund currently finding attractive investment opportunities?
We have continued to add value through our stock selection process within each
of the benchmark's industry groups. For example, in the energy sector, we
continue to favor natural gas producers over oil producers. As the war in Iraq
winds down, oil prices have moderated. However, natural gas prices have remained
steady in response to prevailing supply-and-demand imbalances.
In the consumer area, we continue to prefer companies that, in our view,
are likely to have strong earnings and stocks selling at attractive valuations.
Fund holdings meeting these criteria include casual-dining restaurant chain Ruby
Tuesday, Inc., which has benefited from Americans' growing preference for
inexpensive and convenient dining alternatives. Casual Male Retail Group, Inc.,
owners of the Big & Tall men's clothing stores, appears poised to benefit from a
new management team's efforts to cut costs and boost sales. We believe that
investments like these, which we identify using a bottom-up approach to stock
selection, help make Oppenheimer Small Cap Value Fund part of The Right Way to
Invest.
Average Annual
Total Returns with
Sales Charge
For the Periods Ended 3/31/03 4
Class A
1-Year 5-Year 10-Year
- --------------------------
- -25.77% -3.03% 5.58%
Class B Since
1-Year 5-Year Inception
- --------------------------
- -25.69% -2.79% 5.67%
Class C Since
1-Year 5-Year Inception
- --------------------------
- -22.55% -2.43% 5.44%
Class N Since
1-Year 5-Year Inception
- --------------------------
- -22.19% N/A -2.15%
4. See Notes on page 6 for further details.
Not part of the semiannual report to Fund shareholders
4 | OPPENHEIMER SMALL CAP VALUE FUND
Top Ten Common Stock Holdings 6
- --------------------------------------------------------------
DRS Technologies, Inc. 3.6%
- --------------------------------------------------------------
CNF Transportation, Inc. 2.9
- --------------------------------------------------------------
Equitable Resources, Inc. 2.5
- --------------------------------------------------------------
Bunge Ltd. 2.4
- --------------------------------------------------------------
Hasbro, Inc. 2.3
- --------------------------------------------------------------
iShares Russell 2000 Value Index Fund 2.3
- --------------------------------------------------------------
Casual Male Retail Group, Inc. 2.2
- --------------------------------------------------------------
Quicksilver, Inc. 2.0
- --------------------------------------------------------------
Ventas, Inc. 2.0
- --------------------------------------------------------------
Ruby Tuesday, Inc. 2.0
For up-to-date Top 10 Fund holdings, please visit www.oppenheimerfunds.com.
Top Five Common Stock Industries 6
- --------------------------------------------------------------
Banks 6.2%
- --------------------------------------------------------------
Real Estate 5.8
- --------------------------------------------------------------
Diversified Financials 5.8
- --------------------------------------------------------------
Specialty Retail 5.4
- --------------------------------------------------------------
Machinery 5.3
Sector Allocation 5
[PIE CHART]
o Financials 24.4%
o Consumer Discretionary 18.8
o Industrials 18.7
o Materials 8.3
o Information Technology 7.8
o Health Care 5.7
o Consumer
Staples 5.6
o Utilities 5.6
o Energy 5.1
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 common stock
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
5 | OPPENHEIMER SMALL CAP 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.
Prior to 4/28/00, the Fund's sub-advisor was OpCap Advisors, Inc., its advisor
until 11/22/95.
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%. 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 does not include any contingent deferred sales charges on redemption and 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.
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
6 | OPPENHEIMER SMALL CAP VALUE FUND
STATEMENT OF INVESTMENTS April 30, 2003 / Unaudited
Market Value
Shares See Note 1
- ------------------------------------------------------------------------
Common Stocks--94.4%
- ------------------------------------------------------------------------
Consumer Discretionary--17.7%
- ------------------------------------------------------------------------
Auto Components--0.4%
American Axle &
Manufacturing
Holdings, Inc. 1 60,000 $ 1,495,200
- ------------------------------------------------------------------------
Hotels, Restaurants & Leisure--2.6%
Argosy Gaming Co. 1 100,000 2,037,000
- ------------------------------------------------------------------------
Rare Hospitality
International, Inc. 1 25,000 728,250
- ------------------------------------------------------------------------
Ruby Tuesday, Inc. 410,000 8,077,000
------------
10,842,250
- ------------------------------------------------------------------------
Household Durables--0.8%
WCI Communities,
Inc. 1 226,000 3,125,580
- ------------------------------------------------------------------------
Leisure Equipment & Products--2.3%
Hasbro, Inc. 600,000 9,600,000
- ------------------------------------------------------------------------
Media--1.4%
Regal Entertainment
Group 300,000 5,880,000
- ------------------------------------------------------------------------
Specialty Retail--5.4%
Casual Male Retail
Group, Inc. 1,2 2,050,000 9,081,500
- ------------------------------------------------------------------------
Foot Locker, Inc. 100,000 1,100,000
- ------------------------------------------------------------------------
Genesco, Inc. 1 100,000 1,500,000
- ------------------------------------------------------------------------
OfficeMax, Inc. 1 400,000 2,260,000
- ------------------------------------------------------------------------
Too, Inc. 1 150,000 2,784,000
- ------------------------------------------------------------------------
Tuesday Morning
Corp. 1 225,000 5,260,500
------------
21,986,000
- ------------------------------------------------------------------------
Textiles & Apparel--4.8%
Columbia
Sportswear Co. 1 125,000 6,001,250
- ------------------------------------------------------------------------
Quicksilver, Inc. 1 255,000 8,313,000
- ------------------------------------------------------------------------
Reebok
International Ltd. 1 175,000 5,435,500
------------
19,749,750
- ------------------------------------------------------------------------
Consumer Staples--5.3%
- ------------------------------------------------------------------------
Beverages--2.0%
Adolph Coors Co.,
Cl. B 80,000 4,282,400
- ------------------------------------------------------------------------
Cott Corp. 1 225,000 4,128,750
------------
8,411,150
Market Value
Shares See Note 1
- ------------------------------------------------------------------------
Food Products--2.4%
Bunge Ltd. 355,000 $ 9,943,550
- ------------------------------------------------------------------------
Tobacco--0.9%
Universal Corp. 90,000 3,514,500
- ------------------------------------------------------------------------
Energy--4.8%
- ------------------------------------------------------------------------
Energy Equipment & Services--3.8%
FMC Technologies,
Inc. 1 180,000 3,387,600
- ------------------------------------------------------------------------
Maverick Tube
Corp. 1 400,000 7,116,000
- ------------------------------------------------------------------------
Rowan Cos., Inc. 245,000 5,022,500
------------
15,526,100
- ------------------------------------------------------------------------
Oil & Gas--1.0%
Frontier Oil Corp. 255,000 4,314,600
- ------------------------------------------------------------------------
Financials--23.0%
- ------------------------------------------------------------------------
Banks--6.2%
Cullen/Frost
Bankers, Inc. 185,000 6,066,150
- ------------------------------------------------------------------------
Dime Community
Bancshares, Inc. 225,000 5,188,500
- ------------------------------------------------------------------------
First Republic Bank 1 91,000 2,284,100
- ------------------------------------------------------------------------
Independence
Community
Bank Corp. 115,000 3,007,250
- ------------------------------------------------------------------------
Pacific Northwest
Bancorp 105,000 2,956,800
- ------------------------------------------------------------------------
Webster Financial
Corp. 160,000 6,006,400
------------
25,509,200
- ------------------------------------------------------------------------
Diversified Financials--5.8%
Affiliated Managers
Group, Inc. 1 115,000 5,325,650
- ------------------------------------------------------------------------
Doral Financial
Corp. 120,000 4,801,200
- ------------------------------------------------------------------------
Gabelli Asset
Management, Inc. 1 11,000 343,860
- ------------------------------------------------------------------------
iShares Russell
2000 Value Index
Fund 80,000 9,267,200
- ------------------------------------------------------------------------
Providian
Financial Corp. 1 525,000 3,869,250
------------
23,607,160
7 | OPPENHEIMER SMALL CAP VALUE FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
Market Value
Shares See Note 1
- ------------------------------------------------------------------------
Insurance--5.2%
Everest Re
Group Ltd. 90,000 $ 6,268,500
- ------------------------------------------------------------------------
IPC Holdings Ltd. 180,000 6,183,000
- ------------------------------------------------------------------------
RenaissanceRe
Holdings Ltd. 30,000 1,328,700
- ------------------------------------------------------------------------
StanCorp Financial
Group, Inc. 141,500 7,598,550
------------
21,378,750
- ------------------------------------------------------------------------
Real Estate--5.8%
Alexandria Real
Estate Equities, Inc. 100,000 4,230,000
- ------------------------------------------------------------------------
CarrAmerica Realty
Corp. 155,000 4,042,400
- ------------------------------------------------------------------------
IStar Financial, Inc. 250,000 7,482,500
- ------------------------------------------------------------------------
Ventas, Inc. 630,000 8,190,000
------------
23,944,900
- ------------------------------------------------------------------------
Health Care--5.4%
- ------------------------------------------------------------------------
Health Care Equipment & Supplies--1.9%
Beckman
Coulter, Inc. 35,000 1,360,450
- ------------------------------------------------------------------------
Fisher Scientific
International, Inc. 1 225,000 6,482,250
------------
7,842,700
- ------------------------------------------------------------------------
Health Care Providers & Services--3.5%
Andrx Corp. 1 80,000 1,291,200
- ------------------------------------------------------------------------
Coventry Health
Care, Inc. 1 30,000 1,224,600
- ------------------------------------------------------------------------
Omnicare, Inc. 300,000 7,956,000
- ------------------------------------------------------------------------
Universal Health
Services, Inc., Cl. B 1 100,000 3,867,000
------------
14,338,800
- ------------------------------------------------------------------------
Industrials--17.7%
- ------------------------------------------------------------------------
Aerospace & Defense--4.9%
DRS Technologies,
Inc. 1 525,000 14,705,250
- ------------------------------------------------------------------------
Orbital Sciences
Corp. 1 931,900 5,200,002
------------
19,905,252
Market Value
Shares See Note 1
- ------------------------------------------------------------------------
Commercial Services & Supplies--2.9%
BISYS Group,
Inc. (The) 1 275,000 $ 4,642,000
- ------------------------------------------------------------------------
Danka Business
Systems plc,
Sponsored ADR 1 1,151,500 4,479,335
- ------------------------------------------------------------------------
Pittston Brink's
Group 200,000 2,550,000
------------
11,671,335
- ------------------------------------------------------------------------
Construction & Engineering--1.3%
EMCOR Group, Inc. 1 105,000 5,362,350
- ------------------------------------------------------------------------
Machinery--5.3%
Actuant Corp.,
Cl. A 1 70,000 2,597,000
- ------------------------------------------------------------------------
AGCO Corp. 1 225,000 4,097,250
- ------------------------------------------------------------------------
Albany
International
Corp., Cl. A 125,000 2,967,500
- ------------------------------------------------------------------------
Harsco Corp. 120,000 4,136,400
- ------------------------------------------------------------------------
Oshkosh Truck
Corp. 30,000 1,680,000
- ------------------------------------------------------------------------
Pentair, Inc. 100,000 3,854,000
- ------------------------------------------------------------------------
Timken Co. 140,000 2,478,000
------------
21,810,150
- ------------------------------------------------------------------------
Road & Rail--3.3%
CNF Transportation,
Inc. 390,000 11,832,600
- ------------------------------------------------------------------------
Landstar System,
Inc. 1 30,000 1,863,900
------------
13,696,500
- ------------------------------------------------------------------------
Information Technology--7.4%
- ------------------------------------------------------------------------
Communications Equipment--0.5%
Polycom, Inc. 1 200,000 1,964,000
- ------------------------------------------------------------------------
Computers & Peripherals--2.0%
Electronics for
Imaging, Inc. 1 200,000 3,840,000
- ------------------------------------------------------------------------
Maxtor Corp. 1 400,000 2,200,000
- ------------------------------------------------------------------------
Pinnacle Systems,
Inc. 1 220,000 2,079,000
------------
8,119,000
8 | OPPENHEIMER SMALL CAP VALUE FUND
Market Value
Shares See Note 1
- ------------------------------------------------------------------------
Electronic Equipment & Instruments--1.6%
Flextronics
International Ltd. 1 560,000 $ 4,900,000
- ------------------------------------------------------------------------
Planar Systems,
Inc. 1 100,000 1,759,000
------------
6,659,000
- ------------------------------------------------------------------------
Internet Software & Services--0.8%
S1 Corp. 1 715,000 3,146,000
- ------------------------------------------------------------------------
Semiconductor Equipment & Products--1.7%
Brooks
Automation, Inc. 1 500,000 4,235,000
- ------------------------------------------------------------------------
Fairchild
Semiconductor
International,
Inc., Cl. A 1 220,000 2,611,400
------------
6,846,400
- ------------------------------------------------------------------------
Software--0.8%
Autodesk, Inc. 225,000 3,501,000
- ------------------------------------------------------------------------
Materials--7.9%
- ------------------------------------------------------------------------
Chemicals--2.2%
FMC Corp. 1 206,000 3,732,720
- ------------------------------------------------------------------------
Georgia Gulf Corp. 225,000 5,085,000
------------
8,817,720
- ------------------------------------------------------------------------
Construction Materials--1.2%
Lafarge North
America, Inc. 160,000 5,096,000
- ------------------------------------------------------------------------
Containers & Packaging--1.0%
Packaging Corp.
of America 1 228,000 4,288,680
- ------------------------------------------------------------------------
Metals & Mining--1.0%
Freeport-McMoRan
Copper & Gold,
Inc., Cl. B 225,000 3,894,750
- ------------------------------------------------------------------------
Paper & Forest Products--2.5%
Rayonier, Inc. 105,000 5,287,800
- ------------------------------------------------------------------------
Sappi Ltd.,
Sponsored ADR 400,000 4,940,000
------------
10,227,800
Market Value
Shares See Note 1
- ------------------------------------------------------------------------
Utilities--5.2%
- ------------------------------------------------------------------------
Electric Utilities--2.1%
Opticnet, Inc. 1,3 9,350 $ --
- ------------------------------------------------------------------------
PNM Resources,
Inc. 100,000 2,219,000
- ------------------------------------------------------------------------
Puget Energy, Inc. 200,000 4,224,000
- ------------------------------------------------------------------------
Reliant
Resources, Inc. 1 385,000 2,163,700
------------
8,606,700
- ------------------------------------------------------------------------
Gas Utilities--0.3%
Southwestern
Energy Co. 1 105,200 1,400,212
- ------------------------------------------------------------------------
Multi-Utilities--2.8%
Equitable
Resources, Inc. 270,000 10,373,400
- ------------------------------------------------------------------------
Vectren Corp. 50,000 1,162,500
------------
11,535,900
------------
Total Common Stocks
(Cost $362,124,214) 387,558,939
Principal
Amount
- ------------------------------------------------------------------------
Joint Repurchase Agreements--5.7%
Undivided interest of 7.03% in joint repurchase
agreement (Market Value $332,883,000) with Banc
One Capital Markets, Inc., 1.26%, dated 4/30/03,
to be repurchased at $23,409,819 on 5/1/03,
collateralized by U.S. Treasury Nts.,
4.875%--5.875%, 11/15/04--2/15/12,
with a value of $327,261,153 and U.S.
Treasury Bonds, 2.125%, 8/31/04,
with a value of $12,489,849
(Cost $23,409,000) $23,409,000 23,409,000
- ------------------------------------------------------------------------
Total Investments,
at Value
(Cost $385,533,214) 100.1% 410,967,939
- ------------------------------------------------------------------------
Liabilities
in Excess of
Other Assets (0.1) (569,209)
---------------------------------
Net Assets 100.0% $ 410,398,730
=================================
9 | OPPENHEIMER SMALL CAP VALUE FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
Footnotes to Statement of Investments
1. Non-income producing security.
2. Affiliated company. Represents ownership of at least 5% of the voting
securities of the issuer, and is or was an affiliate, as defined in the
Investment Company Act of 1940, at or during the period ended April 30, 2003.
The aggregate fair value of securities of affiliated companies held by the Fund
as of April 30, 2003 amounts to $9,081,500. Transactions during the period in
which the issuer was an affiliate are as follows:
Shares Shares
October 31, Gross Gross April 30, Unrealized
2002 Additions Reductions 2003 Depreciation
- -----------------------------------------------------------------------------------------------------------
Stocks and/or Warrants
Casual Male Retail Group, Inc. -- 2,050,000 -- 2,050,000 $511,586
3. Identifies issues considered to be illiquid or restricted--See Note 6 of
Notes to Financial Statements.
See accompanying Notes to Financial Statements.
10 | OPPENHEIMER SMALL CAP VALUE FUND
STATEMENT OF ASSETS AND LIABILITIES Unaudited
April 30, 2003
- ----------------------------------------------------------------------------
Assets
Investments, at value--see accompanying statement:
Unaffiliated companies (cost $376,963,300) $ 401,886,439
Affiliated companies (cost $8,569,914) 9,081,500
----------------
410,967,939
- ----------------------------------------------------------------------------
Cash 65,903
- ----------------------------------------------------------------------------
Receivables and other assets:
Investments sold 6,882,871
Shares of beneficial interest sold 744,844
Interest and dividends 240,531
Other 8,865
----------------
Total assets 418,910,953
- ----------------------------------------------------------------------------
Liabilities
Payables and other liabilities:
Investments purchased 7,534,522
Shares of beneficial interest redeemed 610,296
Shareholder reports 134,447
Transfer and shareholder servicing agent fees 111,418
Distribution and service plan fees 83,434
Trustees' compensation 29,504
Other 8,602
----------------
Total liabilities 8,512,223
- ----------------------------------------------------------------------------
Net Assets $410,398,730
================
- ----------------------------------------------------------------------------
Composition of Net Assets
Par value of shares of beneficial interest $ 210,776
- ----------------------------------------------------------------------------
Additional paid-in capital 415,350,390
- ----------------------------------------------------------------------------
Accumulated net investment loss (1,145,303)
- ----------------------------------------------------------------------------
Accumulated net realized loss on investments and
foreign currency transactions (29,451,858)
- ----------------------------------------------------------------------------
Net unrealized appreciation on investments 25,434,725
----------------
Net Assets $410,398,730
================
11 | OPPENHEIMER SMALL CAP VALUE FUND
STATEMENT OF ASSETS AND LIABILITIES Unaudited / Continued
- -------------------------------------------------------------------------------------
Net Asset Value Per Share
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$224,626,837 and 11,249,525 shares of beneficial interest outstanding) $19.97
Maximum offering price per share (net asset value plus sales charge of
5.75% of offering price) $21.19
- -------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $129,592,666
and 6,864,550 shares of beneficial interest outstanding) $18.88
- -------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $50,052,091
and 2,655,590 shares of beneficial interest outstanding) $18.85
- -------------------------------------------------------------------------------------
Class N Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $6,127,136
and 307,952 shares of beneficial interest outstanding) $19.90
See accompanying Notes to Financial Statements.
12 | OPPENHEIMER SMALL CAP VALUE FUND
STATEMENT OF OPERATIONS Unaudited
For the Six Months Ended April 30, 2003
- ------------------------------------------------------------------------------------------
Investment Income
Dividends (net of foreign withholding taxes of $4,540) $ 2,662,814
- ------------------------------------------------------------------------------------------
Interest 104,392
---------------
Total investment income 2,767,206
- ------------------------------------------------------------------------------------------
Expenses
Management fees 1,671,302
- ------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 305,168
Class B 627,405
Class C 232,643
Class N 12,630
- ------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 438,437
Class B 316,514
Class C 112,254
Class N 15,710
- ------------------------------------------------------------------------------------------
Shareholder reports 209,137
- ------------------------------------------------------------------------------------------
Trustees' compensation 11,683
- ------------------------------------------------------------------------------------------
Custodian fees and expenses 4,145
- ------------------------------------------------------------------------------------------
Other 144,665
---------------
Total expenses 4,101,693
Less reduction to custodian expenses (774)
Less voluntary waiver of transfer and shareholder servicing agent fees--Class A (61,799)
Less voluntary waiver of transfer and shareholder servicing agent fees--Class B (115,837)
Less voluntary waiver of transfer and shareholder servicing agent fees--Class C (34,331)
Less voluntary waiver of transfer and shareholder servicing agent fees--Class N (7,034)
---------------
Net expenses 3,881,918
- ------------------------------------------------------------------------------------------
Net Investment Loss (1,114,712)
- ------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
Net realized loss on:
Investments (10,219,143)
Foreign currency transactions (19)
---------------
Net realized loss (10,219,162)
- ------------------------------------------------------------------------------------------
Net change in unrealized appreciation on investments 26,143,001
---------------
Net realized and unrealized gain 15,923,839
- ------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations $14,809,127
===============
See accompanying Notes to Financial Statements.
13 | OPPENHEIMER SMALL CAP VALUE FUND
STATEMENTS OF CHANGES IN NET ASSETS
Six Months Year
Ended Ended
April 30, 2003 October 31,
(Unaudited) 2002
- ---------------------------------------------------------------------------------------------------------
Operations
Net investment loss $ (1,114,712) $ (4,023,327)
- ---------------------------------------------------------------------------------------------------------
Net realized loss (10,219,162) (18,661,880)
- ---------------------------------------------------------------------------------------------------------
Net change in unrealized
appreciation (depreciation) 26,143,001 (9,851,435)
------------------------------------
Net increase (decrease) in net assets
resulting from operations 14,809,127 (32,536,642)
- ---------------------------------------------------------------------------------------------------------
Dividends and/or Distributions to Shareholders
Distributions from net realized gain:
Class A -- (680,554)
Class B -- (388,655)
Class C -- (109,996)
Class N -- (3,973)
- ---------------------------------------------------------------------------------------------------------
Beneficial Interest Transactions
Net increase (decrease) in net assets resulting from
beneficial interest transactions:
Class A (5,741,881) 65,028,767
Class B (4,802,807) 46,660,317
Class C 1,978,108 25,340,589
Class N 1,324,112 4,695,770
- ---------------------------------------------------------------------------------------------------------
Net Assets
Total increase 7,566,659 108,005,623
- ---------------------------------------------------------------------------------------------------------
Beginning of period 402,832,071 294,826,448
------------------------------------
End of period [including accumulated net investment loss of
$1,145,303 and $30,591, respectively] $410,398,730 $402,832,071
====================================
See accompanying Notes to Financial Statements.
14 | OPPENHEIMER SMALL CAP 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 $ 19.18 $ 19.53 $ 21.26 $ 16.82 $ 17.29 $ 22.26
- ---------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.02) (.19) (.23) (.16) (.10) (.09)
Net realized and unrealized gain (loss) .81 (.09) (.47) 4.60 .18 (3.02)
----------------------------------------------------------------------------
Total from investment operations .79 (.28) (.70) 4.44 .08 (3.11)
- ---------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Distributions from net realized gain -- (.07) (1.03) -- 1 (.54) (1.86)
Distributions in excess of net realized gain -- -- -- -- (.01) --
----------------------------------------------------------------------------
Total dividends and/or
distributions to shareholders -- (.07) (1.03) -- (.55) (1.86)
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $19.97 $19.18 $19.53 $21.26 $16.82 $17.29
============================================================================
- ---------------------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 2 4.12% (1.45)% (3.02)% 26.40% 0.38% (15.05)%
- ---------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $224,627 $222,029 $172,395 $157,759 $151,059 $183,567
- ---------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $218,677 $231,657 $163,007 $147,952 $170,205 $201,952
- ---------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment loss (0.26)% (0.69)% (1.06)% (0.95)% (0.60)% (0.42)%
Expenses, gross 1.72% 1.68% 1.86% 1.90% 1.96% 1.80% 4
Expenses, net 1.66% 5,6 1.66% 5,6 1.86% 5,7 1.90% 5 1.96% 5 1.80%
- ---------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 71% 151% 162% 166% 87% 65%
1. Less than $0.005 per share.
2. 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.
3. Annualized for periods of less than one full year.
4. Expense ratio has been calculated without adjustment for the reduction to
custodian expenses.
5. Reduction to custodian expenses less than 0.01%.
6. Net of voluntary waiver of transfer agent fees.
7. Voluntary waiver of transfer agent fees less than 0.01%.
See accompanying Notes to Financial Statements.
15 | OPPENHEIMER SMALL CAP VALUE FUND
FINANCIAL HIGHLIGHTS Continued
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 $ 18.20 $ 18.65 $ 20.47 $ 16.28 $ 16.84 $ 21.83
- ---------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.10) (.18) (.23) (.33) (.22) (.12)
Net realized and unrealized gain (loss) .78 (.20) (.56) 4.52 .21 (3.01)
-----------------------------------------------------------------------------
Total from investment operations .68 (.38) (.79) 4.19 (.01) (3.13)
- ---------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Distributions from net realized gain -- (.07) (1.03) -- 1 (.54) (1.86)
Distributions in excess of net realized gain -- -- -- -- (.01) --
-----------------------------------------------------------------------------
Total dividends and/or
distributions to shareholders -- (.07) (1.03) -- (.55) (1.86)
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $18.88 $18.20 $18.65 $20.47 $16.28 $16.84
==============================================================================
- ---------------------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 2 3.74% (2.06)% (3.60)% 25.74% (0.16)% (15.47)%
- ---------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $129,593 $129,885 $95,418 $83,859 $82,949 $98,041
- ---------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $126,520 $134,304 $88,235 $79,526 $94,863 $97,818
- ---------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment loss (0.95)% (1.34)% (1.65)% (1.48)% (1.10)% (0.92)%
Expenses, gross 2.54% 2.34% 2.45% 2.44% 2.45% 2.31% 4
Expenses, net 2.36% 5,6 2.32% 5,6 2.45% 5,7 2.44% 5 2.45% 5 2.31%
- ---------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 71% 151% 162% 166% 87% 65%
1. Less than $0.005 per share.
2. 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.
3. Annualized for periods of less than one full year.
4. Expense ratio has been calculated without adjustment for the reduction to
custodian expenses.
5. Reduction to custodian expenses less than 0.01%.
6. Net of voluntary waiver of transfer agent fees.
7. Voluntary waiver of transfer agent fees less than 0.01%.
See accompanying Notes to Financial Statements.
16 | OPPENHEIMER SMALL CAP VALUE FUND
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 $ 18.17 $ 18.62 $ 20.44 $ 16.25 $ 16.81 $ 21.79
- ---------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.08) (.10) (.19) (.33) (.25) (.13)
Net realized and unrealized gain (loss) .76 (.28) (.60) 4.52 .24 (2.99)
---------------------------------------------------------------------------
Total from investment operations .68 (.38) (.79) 4.19 (.01) (3.12)
- ---------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Distributions from net realized gain -- (.07) (1.03) -- 1 (.54) (1.86)
Distributions in excess of net realized gain -- -- -- -- (.01) --
---------------------------------------------------------------------------
Total dividends and/or
distributions to shareholders -- (.07) (1.03) -- (.55) (1.86)
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $18.85 $18.17 $18.62 $20.44 $16.25 $16.81
===========================================================================
- ---------------------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 2 3.74% (2.06)% (3.61)% 25.79% (0.16)% (15.45)%
- ---------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $50,052 $46,360 $26,604 $22,173 $20,959 $26,707
- ---------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $46,934 $45,455 $24,134 $20,521 $24,964 $28,647
- ---------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment loss (0.97)% (1.33)% (1.64)% (1.49)% (1.10)% (0.92)%
Expenses, gross 2.52% 2.33% 2.45% 2.44% 2.45% 2.31% 4
Expenses, net 2.37% 5,6 2.31% 5,6 2.45% 5,7 2.44% 5 2.45% 5 2.31%
- ---------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 71% 151% 162% 166% 87% 65%
1. Less than $0.005 per share.
2. 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.
3. Annualized for periods of less than one full year.
4. Expense ratio has been calculated without adjustment for the reduction to
custodian expenses.
5. Reduction to custodian expenses less than 0.01%.
6. Net of voluntary waiver of transfer agent fees.
7. Voluntary waiver of transfer agent fees less than 0.01%.
See accompanying Notes to Financial Statements.
17 | OPPENHEIMER SMALL CAP VALUE FUND
FINANCIAL HIGHLIGHTS Continued
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 $ 19.13 $ 19.51 $ 19.58
- ---------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.06) (.27) (.04)
Net realized and unrealized gain (loss) .83 (.04) (.03)
-------------------------------------------------
Total from investment operations .77 (.31) (.07)
- ---------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Distributions from net realized gain -- (.07) --
Distributions in excess of net realized gain -- -- --
-------------------------------------------------
Total dividends and/or distributions to shareholders -- (.07) --
- ---------------------------------------------------------------------------------------------------------------
Net asset value, end of period $19.90 $19.13 $19.51
-------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 2 4.03% (1.61)% (0.36)%
- ---------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $6,127 $4,558 $409
- ---------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $5,103 $2,882 $106
- ---------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment loss (0.47)% (0.78)% (1.14)%
Expenses, gross 2.16% 1.82% 2.01%
Expenses, net 1.88% 4,5 1.80% 4,5 2.01% 4,6
- ---------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 71% 151% 162%
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.
18 | OPPENHEIMER SMALL CAP VALUE FUND
NOTES TO FINANCIAL STATEMENTS Unaudited
- --------------------------------------------------------------------------------
1. Significant Accounting Policies
Oppenheimer Small Cap 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 capital appreciation. The Fund's investment advisor is OppenheimerFunds,
Inc. (the Manager).
The Fund offers Class A, Class B, Class C and Class N 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. 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. 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).
- --------------------------------------------------------------------------------
Foreign Currency Translation. The accounting records of the Fund are maintained
in U.S. dollars. Prices of securities denominated in foreign currencies are
translated into U.S. dollars at the closing rates of exchange. Amounts related
to the purchase and sale of foreign securities and investment income are
translated at the rates of exchange prevailing on the respective dates of such
transactions.
The effect of changes in foreign currency exchange rates on investments is
separately identified from the fluctuations arising from changes in market
values of securities held and reported with all other foreign currency gains and
losses in the Fund's Statement of Operations.
19 | OPPENHEIMER SMALL CAP VALUE FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
1. Significant Accounting Policies Continued
Joint Repurchase Agreements. The Fund, along with other affiliated funds of the
Manager, may transfer uninvested cash balances into one or more joint repurchase
agreement accounts. These balances are invested in one or more repurchase
agreements, secured by U.S. government securities. Securities pledged as
collateral for repurchase agreements are held by a custodian bank until the
agreements mature. Each agreement requires that the market value of the
collateral be sufficient to cover payments of interest and principal; however,
in the event of default by the other party to the agreement, retention of the
collateral may be subject to legal proceedings.
- --------------------------------------------------------------------------------
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 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 $28,422,366. 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 did not use 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
an unused capital loss carryforward as follows:
Expiring
----------------------
2010 $18,203,203
- --------------------------------------------------------------------------------
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 $498
and payments of $745 were made to retired trustees, resulting in an accumulated
liability of $29,350 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
20 | OPPENHEIMER SMALL CAP VALUE FUND
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 primarily because of the recognition of certain foreign
currency gains (losses) as ordinary income (loss) for 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.
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 $-- $ --
Long-term capital gain -- 1,183,178
Return of capital -- --
----------------------------------------
Total $-- $1,183,178
========================================
- --------------------------------------------------------------------------------
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.
21 | OPPENHEIMER SMALL CAP VALUE FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
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 2,779,739 $ 52,983,015 7,897,143 $ 173,016,763
Dividends and/or
distributions reinvested -- -- 31,174 657,161
Redeemed (3,107,055) (58,724,896) (5,179,234) (108,645,157)
----------------------------------------------------------------------
Net increase (decrease) (327,316) $(5,741,881) 2,749,083 $ 65,028,767
======================================================================
- ------------------------------------------------------------------------------------------------------
Class B
Sold 959,697 $ 17,322,204 5,081,569 $ 107,197,590
Dividends and/or
distributions reinvested -- -- 17,890 359,961
Redeemed (1,233,637) (22,125,011) (3,076,759) (60,897,234)
----------------------------------------------------------------------
Net increase (decrease) (273,940) $(4,802,807) 2,022,700 $ 46,660,317
======================================================================
- ------------------------------------------------------------------------------------------------------
Class C
Sold 852,649 $ 15,396,521 2,319,208 $ 48,865,275
Dividends and/or
distributions reinvested -- -- 5,008 100,623
Redeemed (748,997) (13,418,413) (1,201,029) (23,625,309)
----------------------------------------------------------------------
Net increase 103,652 $ 1,978,108 1,123,187 $ 25,340,589
======================================================================
- ------------------------------------------------------------------------------------------------------
Class N
Sold 114,907 $ 2,181,206 268,260 $ 5,721,300
Dividends and/or
distributions reinvested -- -- 188 3,969
Redeemed (45,196) (857,094) (51,183) (1,029,499)
----------------------------------------------------------------------
Net increase 69,711 $ 1,324,112 217,265 $ 4,695,770
======================================================================
- --------------------------------------------------------------------------------
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
$271,844,706 and $280,132,576, 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 provides for an annual fee of 0.85%
of the first $400 million of average annual net assets of the Fund, 0.75% of the
next $400 million and 0.60% of average annual net assets in excess of $800
million.
22 | OPPENHEIMER SMALL CAP VALUE 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.
OFS has voluntarily agreed to limit transfer and shareholder servicing
agent fees for all classes, up to an annual rate of 0.35% of average net assets
per class. 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 $364,380 $106,425 $36,199 $411,854 $65,215 $15,324
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
Six Months Retained by Retained by Retained by Retained by
Ended Distributor Distributor Distributor Distributor
- ------------------------------------------------------------------------------------------------------------
April 30, 2003 $4,428 $215,637 $7,189 $2,822
- --------------------------------------------------------------------------------
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 $305,168, all of which were paid by the
Distributor to recipients, and included $18,555 paid to an affiliate of the
Manager.
23 | OPPENHEIMER SMALL CAP VALUE FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
4. Fees and Other Transactions with Affiliates Continued
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.
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 $627,405 $507,276 $2,899,637 2.24%
Class C Plan 232,643 88,299 852,148 1.70
Class N Plan 12,630 11,221 121,209 1.98
- --------------------------------------------------------------------------------
5. Foreign Currency Contracts
A foreign currency contract is a commitment to purchase or sell a foreign
currency at a future date, at a negotiated rate. The Fund may enter into foreign
currency contracts for operational purposes and to seek to protect against
adverse exchange rate fluctuations. Risks to the Fund include the potential
inability of the counterparty to meet the terms of the contract.
The net U.S. dollar value of foreign currency underlying all contractual
commitments held by the Fund and the resulting unrealized appreciation or
depreciation are determined using foreign currency exchange rates as provided by
a reliable bank, dealer or pricing service. Unrealized appreciation and
depreciation on foreign currency contracts are reported in the Statement of
Assets and Liabilities as a receivable or payable and in the Statement of
Operations with the change in unrealized appreciation or depreciation.
The Fund may realize a gain or loss upon the closing or settlement of the
foreign currency transactions. Such realized gains and losses are reported with
all other foreign currency gains and losses in the Statement of Operations.
- --------------------------------------------------------------------------------
6. Illiquid or Restricted Securities
As of April 30, 2003, investments in securities included issues that are
illiquid or restricted. Restricted securities are often purchased in private
placement transactions, are not registered under the Securities Act of 1933, may
have contractual restrictions on resale, and are valued under methods approved
by the Board of Trustees as reflecting fair value. A security may also be
considered illiquid if it lacks a readily available market or if its valuation
has not changed for a certain period of time. The Fund intends to invest no more
than 15% of its net assets (determined at the time of purchase and reviewed
periodically)
24 | OPPENHEIMER SMALL CAP VALUE FUND
in illiquid or restricted securities. Certain restricted securities, eligible
for resale to qualified institutional investors, are not subject to that
limitation. The aggregate value of illiquid or restricted securities subject to
this limitation as of April 30, 2003 was zero. Information concerning restricted
securities is as follows:
Valuation Unrealized
Acquisition as of Appreciation
Security Date Cost April 30, 2003 (Depreciation)
- ------------------------------------------------------------------------------------------------------
Stocks and/or Warrants
Opticnet, Inc. 10/26/00 $-- $-- $--
- --------------------------------------------------------------------------------
7. 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.
25 | OPPENHEIMER SMALL CAP VALUE FUND
OPPENHEIMER SMALL CAP VALUE FUND
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.
- --------------------------------------------------------------------------------
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
26 | OPPENHEIMER SMALL CAP 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
27 | OPPENHEIMER SMALL CAP 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 SMALL CAP 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 SMALL CAP 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: QVSCX Class B: QSCBX Class C: QSCCX Class N: QSCNX
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]
Oppenheimer Funds(R)
Distributor, Inc.
RS0251.001.0403 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)