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.
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
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)