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 811-3346
Oppenheimer 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
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(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--92.8%
- --------------------------------------------------------
Consumer Discretionary--19.3%
- --------------------------------------------------------
Hotels, Restaurants & Leisure--1.0%
McDonald's Corp. 138,000 $ 2,359,800
- --------------------------------------------------------
Leisure Equipment & Products--0.5%
Mattel, Inc. 49,100 1,067,434
- --------------------------------------------------------
Media--13.0%
EchoStar Communications
Corp., Cl. A 1 302,600 9,065,896
- --------------------------------------------------------
General Motors
Corp., Cl. H 1 731,500 8,631,700
- --------------------------------------------------------
Liberty Media
Corp., Cl. A 1 1,105,600 12,161,600
-------------
29,859,196
- --------------------------------------------------------
Specialty Retail--1.0%
OfficeMax, Inc. 1 420,700 2,376,955
- --------------------------------------------------------
Textiles & Apparel--3.8%
Nike, Inc., Cl. B 160,600 8,596,918
- --------------------------------------------------------
Consumer Staples--0.8%
- --------------------------------------------------------
Tobacco--0.8%
Altria Group, Inc. 61,500 1,891,740
- --------------------------------------------------------
Energy--6.6%
- --------------------------------------------------------
Energy Equipment & Services--1.1%
Noble Corp. 1 700 21,665
- --------------------------------------------------------
Schlumberger Ltd. 59,000 2,473,870
-------------
2,495,535
- --------------------------------------------------------
Oil & Gas--5.5%
BP plc, ADR 325,000 12,525,500
- --------------------------------------------------------
Financials--26.4%
- --------------------------------------------------------
Banks--8.7%
Bank of New York
Co., Inc. (The) 201,200 5,321,740
- --------------------------------------------------------
Wachovia Corp. 191,400 7,313,394
- --------------------------------------------------------
Wells Fargo Co. 150,000 7,239,000
-------------
19,874,134
- --------------------------------------------------------
Diversified Financials--8.1%
Citigroup, Inc. 186,866 7,334,490
- --------------------------------------------------------
Franklin Resources,
Inc. 163,200 5,692,416
- --------------------------------------------------------
Freddie Mac 57,600 3,335,040
- --------------------------------------------------------
Merrill Lynch &
Co., Inc. 55,000 2,257,750
-------------
18,619,696
Market Value
Shares See Note 1
- --------------------------------------------------------
Insurance--9.6%
American International
Group, Inc. 41,700 $ 2,416,515
- --------------------------------------------------------
Chubb Corp. 132,000 6,981,480
- --------------------------------------------------------
Prudential Financial,
Inc. 232,700 7,439,419
- --------------------------------------------------------
Travelers Property
Casualty Corp.,
Cl. A 3,368 54,663
- --------------------------------------------------------
Travelers Property
Casualty Corp.,
Cl. B 309,320 5,026,450
-------------
21,918,527
- --------------------------------------------------------
Health Care--5.3%
- --------------------------------------------------------
Health Care Providers & Services--4.4%
Aetna, Inc. 185,300 9,227,940
- --------------------------------------------------------
Service Corp.
International 1 231,500 782,470
-------------
10,010,410
- --------------------------------------------------------
Pharmaceuticals--0.9%
Pfizer, Inc. 69,160 2,126,670
- --------------------------------------------------------
Industrials--18.5%
- --------------------------------------------------------
Aerospace & Defense--9.7%
Boeing Co. 222,500 6,069,800
- --------------------------------------------------------
Lockheed Martin
Corp. 160,100 8,013,005
- --------------------------------------------------------
Northrop Grumman Corp. 93,300 8,205,735
-------------
22,288,540
- --------------------------------------------------------
Commercial Services & Supplies--4.4%
Cendant Corp. 1 698,600 9,976,008
- --------------------------------------------------------
Industrial Conglomerates--0.5%
Tyco International
Ltd. 73,600 1,148,160
- --------------------------------------------------------
Road & Rail--3.9%
CNF Transportation,
Inc. 295,800 8,974,572
- --------------------------------------------------------
Information Technology--6.5%
- --------------------------------------------------------
Computers & Peripherals--1.7%
Hewlett-Packard
Co. 232,000 3,781,600
- --------------------------------------------------------
Electronic Equipment & Instruments--4.8%
Flextronics International
Ltd. 1 814,500 7,126,875
7 | OPPENHEIMER VALUE FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
Market Value
Shares See Note 1
- --------------------------------------------------------
Electronic Equipment & Instruments Continued
Thermo Electron
Corp. 1 217,000 $ 3,942,890
-------------
11,069,765
- --------------------------------------------------------
Materials--3.6%
- --------------------------------------------------------
Chemicals--0.5%
FMC Corp. 1 53,700 973,044
- --------------------------------------------------------
Monsanto Co. 13,357 232,412
-------------
1,205,456
- --------------------------------------------------------
Metals & Mining--0.5%
Alcoa, Inc. 43,400 995,162
- --------------------------------------------------------
Paper & Forest Products--2.6%
Sappi Ltd.,
Sponsored ADR 482,700 5,961,345
- --------------------------------------------------------
Telecommunication Services--3.0%
- --------------------------------------------------------
Diversified Telecommunication Services--2.0%
Verizon Communi-
cations, Inc. 125,500 4,691,190
- --------------------------------------------------------
Wireless Telecommunication Services--1.0%
Vodafone Group plc,
Sponsored ADR 115,400 2,280,304
- --------------------------------------------------------
Utilities--2.8%
- --------------------------------------------------------
Electric Utilities--2.3%
Dominion Resources,
Inc. 76,300 4,515,434
- --------------------------------------------------------
Pepco Holdings,
Inc. 42,800 735,304
-------------
5,250,738
- --------------------------------------------------------
Multi-Utilities--0.5%
Equitable Resources,
Inc. 30,000 1,152,600
-------------
Total Common Stocks
(Cost $196,791,197) 212,497,955
Principal Market Value
Amount See Note 1
- --------------------------------------------------------
Short-Term Notes--2.3%
Federal Home
Loan Bank,
1.20%, 5/1/03
(Cost $5,200,000) $ 5,200,000 $ 5,200,000
- --------------------------------------------------------
Joint Repurchase Agreements--4.4%
Undivided interest of 14.44% in
joint repurchase agreement (Market
Value $70,406,000) with Zions Bank/
Capital Markets Group, 1.26%, dated
4/30/03, to be repurchased at
$10,168,356 on 5/1/03, collateralized
by U.S. Treasury Nts., 4.625%, 5/15/06,
with a value of $21,007,167 and
U.S. Treasury Bonds, 2%, 11/30/04,
with a value of $50,899,000
(Cost $10,168,000) 10,168,000 10,168,000
- --------------------------------------------------------
Total Investments,
at Value
(Cost $212,159,197) 99.5% 227,865,955
- --------------------------------------------------------
Other Assets
Net of Liabilities 0.5 1,139,429
-----------------------
Net Assets 100.0% $229,005,384
-----------------------
Footnotes to Statement of Investments
1. Non-income producing security.
See accompanying Notes to Financial Statements.
8 | OPPENHEIMER VALUE FUND
STATEMENT OF ASSETS AND LIABILITIES Unaudited
April 30, 2003
- --------------------------------------------------------------------------------
Assets
Investments, at value (cost $212,159,197)--
see accompanying statement $227,865,955
- --------------------------------------------------------------------------------
Cash 60,516
- --------------------------------------------------------------------------------
Receivables and other assets:
Investments sold 2,639,762
Shares of capital stock sold 517,752
Interest and dividends 156,557
Other 3,734
--------------
Total assets 231,244,276
- --------------------------------------------------------------------------------
Liabilities
Payables and other liabilities:
Investments purchased 1,843,135
Shares of capital stock redeemed 159,093
Shareholder reports 86,647
Transfer and shareholder servicing agent fees 54,425
Directors' compensation 46,414
Distribution and service plan fees 44,141
Other 5,037
--------------
Total liabilities 2,238,892
- --------------------------------------------------------------------------------
Net Assets $229,005,384
==============
- --------------------------------------------------------------------------------
Composition of Net Assets
Par value of shares of capital stock $ 14,801
- --------------------------------------------------------------------------------
Additional paid-in capital 259,864,918
- --------------------------------------------------------------------------------
Undistributed net investment income 101,574
- --------------------------------------------------------------------------------
Accumulated net realized loss on investment transactions (46,682,667)
- --------------------------------------------------------------------------------
Net unrealized appreciation on investments 15,706,758
--------------
Net Assets $229,005,384
==============
9 | OPPENHEIMER 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 $156,517,797 and
10,069,262 shares of capital stock
outstanding) $15.54
Maximum offering price per share (net asset
value plus sales charge of 5.75% of
offering price) $16.49
- --------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes
applicable contingent deferred
sales charge) and offering price
per share (based on net assets of $48,300,277
and 3,143,074 shares of capital stock
outstanding) $15.37
- --------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes
applicable contingent deferred
sales charge) and offering price
per share (based on net assets of $19,901,129
and 1,312,913 shares of capital stock
outstanding) $15.16
- --------------------------------------------------------------------------------
Class N Shares:
Net asset value, redemption price (excludes
applicable contingent deferred
sales charge) and offering price
per share (based on net assets of $2,804,673
and 182,200 shares of capital stock
outstanding) $15.39
- --------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering
price per share (based on net
assets of $1,481,508 and 93,726 shares of
capital stock outstanding) $15.81
See accompanying Notes to Financial Statements.
10 | OPPENHEIMER VALUE FUND
STATEMENT OF OPERATIONS Unaudited
For the Six Months Ended April 30, 2003
- --------------------------------------------------------------------------------
Investment Income
Dividends (net of foreign withholding taxes of $26,754) $ 1,762,460
- --------------------------------------------------------------------------------
Interest 79,927
-------------
Total investment income 1,842,387
- --------------------------------------------------------------------------------
Expenses
Management fees 673,610
- --------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 181,108
Class B 240,300
Class C 81,524
Class N 4,779
- --------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 206,763
Class B 106,605
Class C 31,752
Class N 4,097
Class Y 7,339
- --------------------------------------------------------------------------------
Accounting service fees 7,500
- --------------------------------------------------------------------------------
Directors' compensation 6,722
- --------------------------------------------------------------------------------
Custodian fees and expenses 1,943
- --------------------------------------------------------------------------------
Other 71,499
-------------
Total expenses 1,625,541
Less reduction to custodian expenses (237)
Less voluntary waiver of transfer and shareholder
servicing agent fees--Class B (27,783)
Less voluntary waiver of transfer and shareholder
servicing agent fees--Class C (3,601)
Less voluntary waiver of transfer and shareholder
servicing agent fees--Class N (746)
Less voluntary waiver of transfer and
shareholder servicing agent fees--Class Y (9,125)
-------------
Net expenses 1,584,049
- --------------------------------------------------------------------------------
Net Investment Income 258,338
- --------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
Net realized loss on investments (including
premiums on options exercised) (2,014,854)
- --------------------------------------------------------------------------------
Net change in unrealized appreciation on investments 12,252,790
-------------
Net realized and unrealized gain 10,237,936
- --------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations $10,496,274
=============
See accompanying Notes to Financial Statements.
11 | OPPENHEIMER VALUE FUND
STATEMENTS OF CHANGES IN NET ASSETS
Six Months Year
Ended Ended
April 30, 2003 October 31,
(Unaudited) 2002
- --------------------------------------------------------------------------------
Operations
Net investment income $ 258,338 $ 361,047
- --------------------------------------------------------------------------------
Net realized loss (2,014,854) (27,141,607)
- --------------------------------------------------------------------------------
Net change in unrealized appreciation 12,252,790 10,745,185
--------------------------
Net increase (decrease) in net assets
resulting from operations 10,496,274 (16,035,375)
- --------------------------------------------------------------------------------
Dividends and/or Distributions to Shareholders
Dividends from net investment income:
Class A (328,372) (135,466)
Class B -- --
Class C -- --
Class N (4,026) (43)
Class Y (1,634) (3,575)
- --------------------------------------------------------------------------------
Capital Stock Transactions
Net increase (decrease) in net assets
resulting from capital stock
transactions:
Class A 7,745,871 (14,210,177)
Class B (1,207,877) (6,150,602)
Class C 5,830,961 4,299,663
Class N 1,514,103 1,286,579
Class Y 332,469 563,632
- --------------------------------------------------------------------------------
Net Assets
Total increase (decrease) 24,377,769 (30,385,364)
- --------------------------------------------------------------------------------
Beginning of period 204,627,615 235,012,979
---------------------------
End of period [including undistributed net
investment income of $101,574 and $177,268,
respectively] $229,005,384 $204,627,615
===========================
See accompanying Notes to Financial Statements.
12 | OPPENHEIMER 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 $ 14.78 $ 15.93 $ 17.06 $ 20.69 $ 20.91 $ 23.31
- -------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .03 .07 .03 .16 .17 .16
Net realized and unrealized gain (loss) .76 (1.21) (.98) (.65) .64 .32
--------------------------------------------------------------
Total from investment operations .79 (1.14) (.95) (.49) .81 .48
- -------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.03) (.01) (.18) (.16) (.17) (.12)
Distributions from net realized gain -- -- -- (2.98) (.86) (2.76)
--------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.03) (.01) (.18) (3.14) (1.03) (2.88)
- -------------------------------------------------------------------------------------------------------------
Net asset value, end of period $15.54 $14.78 $15.93 $17.06 $20.69 $20.91
==============================================================
- -------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 1 5.38% (7.15)% (5.60)% (2.60)% 3.60% 2.24%
- -------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $156,518 $141,563 $166,285 $181,566 $392,483 $456,264
- -------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $149,374 $166,319 $181,631 $234,840 $448,884 $442,138
- -------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income 0.48% 0.38% 0.19% 0.66% 0.68% 0.84%
Expenses 1.23% 1.22% 1.26% 1.17% 1.02% 0.98% 3
- -------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 67% 150% 336% 86% 135% 106%
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.
13 | OPPENHEIMER 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 $ 14.64 $ 15.89 $ 16.99 $ 20.58 $ 20.83 $ 23.32
- -------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.03) (.10) (.11) (.05) (.03) .02
Net realized and unrealized gain (loss) .76 (1.15) (.97) (.56) .66 .30
--------------------------------------------------------------
Total from investment operations .73 (1.25) (1.08) (.61) .63 .32
- -------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- -- (.02) -- (.02) (.05)
Distributions from net realized gain -- -- -- (2.98) (.86) (2.76)
--------------------------------------------------------------
Total dividends and/or distributions
to shareholders -- -- (.02) (2.98) (.88) (2.81)
- -------------------------------------------------------------------------------------------------------------
Net asset value, end of period $15.37 $14.64 $15.89 $16.99 $20.58 $20.83
==============================================================
- -------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 1 4.99% (7.87)% (6.34)% (3.28)% 2.79% 1.47%
- -------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $48,300 $47,323 $57,584 $64,287 $102,736 $123,260
- -------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $48,464 $56,200 $65,115 $79,239 $123,616 $110,240
- -------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income (loss) (0.31)% (0.40)% (0.57)% (0.14)% (0.08)% 0.08%
Expenses, gross 2.15% 2.01% 2.01% 1.93% 1.77% 1.73% 3
Expenses, net 2.03% 4,5 2.01% 4,6 2.01% 4 1.93% 4 1.77% 4 1.73%
- -------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 67% 150% 336% 86% 135% 106%
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.
6. Voluntary waiver of transfer agent fees less than 0.01%.
See accompanying Notes to Financial Statements.
14 | OPPENHEIMER 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 $ 14.44 $ 15.67 $ 16.77 $ 20.35 $ 20.60 $ 23.07
- -------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .03 (.01) (.08) (.04) (.02) .01
Net realized and unrealized gain (loss) .69 (1.22) (.99) (.56) .65 .31
--------------------------------------------------------------
Total from investment operations .72 (1.23) (1.07) (.60) .63 .32
- -------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- -- (.03) -- (.02) (.03)
Distributions from net realized gain -- -- -- (2.98) (.86) (2.76)
--------------------------------------------------------------
Total dividends and/or distributions
to shareholders -- -- (.03) (2.98) (.88) (2.79)
- -------------------------------------------------------------------------------------------------------------
Net asset value, end of period $15.16 $14.44 $15.67 $16.77 $20.35 $20.60
==============================================================
- -------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 1 4.99% (7.85)% (6.38)% (3.27)% 2.82% 1.47%
- -------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $19,901 $13,466 $10,494 $ 9,849 $14,582 $18,204
- -------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $16,474 $12,977 $11,088 $11,975 $17,746 $15,355
- -------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income (loss) (0.37)% (0.41)% (0.56)% (0.14)% (0.07)% 0.06%
Expenses, gross 2.10% 2.00% 2.01% 1.93% 1.77% 1.73% 3
Expenses, net 2.06% 4,5 2.00% 4,6 2.01% 4 1.93% 4 1.77% 4 1.73%
- -------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 67% 150% 336% 86% 135% 106%
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.
6. Voluntary waiver of transfer agent fees less than 0.01%.
See accompanying Notes to Financial Statements.
15 | OPPENHEIMER 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 $ 14.68 $ 15.90 $ 18.08
- --------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .03 .05 (.02)
Net realized and unrealized gain (loss) .73 (1.22) (2.16)
----------------------------------
Total from investment operations .76 (1.17) (2.18)
- --------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.05) (.05) --
Distributions from net realized gain -- -- --
----------------------------------
Total dividends and/or distributions
to shareholders (.05) (.05) --
- --------------------------------------------------------------------------------
Net asset value, end of period $15.39 $14.68 $15.90
==================================
- --------------------------------------------------------------------------------
Total Return, at Net Asset Value 2 5.16% (7.41)% (12.06)%
- --------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $2,805 $1,201 $12
- --------------------------------------------------------------------------------
Average net assets (in thousands) $1,936 $ 508 $ 5
- --------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income (loss) 0.04% 0.00% (0.45)%
Expenses, gross 1.64% 1.49% 1.61%
Expenses, net 1.56% 4,5 1.49% 4,6 1.61% 4
- --------------------------------------------------------------------------------
Portfolio turnover rate 67% 150% 336%
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.
16 | OPPENHEIMER VALUE FUND
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 $ 14.96 $ 16.20 $ 17.07 $ 20.72 $ 20.97 $ 23.34
- --------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.91) .06 1.10 1 .17 1 .22 .22
Net realized and unrealized gain (loss) 1.78 (1.21) 1 (.97) 1 (.63) 1 .64 .34
---------------------------------------------------------------
Total from investment operations .87 (1.15) (.87) (.46) .86 .56
- --------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.02) (.09) -- (.21) (.25) (.17)
Distributions from net realized gain -- -- -- (2.98) (.86) (2.76)
---------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.02) (.09) -- (3.19) (1.11) (2.93)
- --------------------------------------------------------------------------------------------------------------
Net asset value, end of period $15.81 $14.96 $16.20 $17.07 $20.72 $20.97
===============================================================
- --------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 2 5.84% (7.18)% (5.10)% (2.42)% 3.81% 2.63%
- --------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $1,482 $1,074 $638 $ 1 $76,571 $136,729
- --------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $1,226 $ 955 $155 $48,714 $95,765 $118,010
- --------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 1.27% 0.33% 0.62% 1.06% 0.90% 1.19%
Expenses, gross 1.92% 3.77% 1.20% 0.97% 0.76% 0.62% 4
Expenses, net 0.42% 5,6 1.23% 5,6 0.83% 5,6 0.97% 5 0.76% 5 0.62%
- --------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 67% 150% 336% 86% 135% 106%
1. Per share amounts calculated based on the average shares outstanding during
the period.
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.
See accompanying Notes to Financial Statements.
17 | OPPENHEIMER VALUE FUND
NOTES TO FINANCIAL STATEMENTS Unaudited
- --------------------------------------------------------------------------------
1. Significant Accounting Policies
Oppenheimer Value Fund (the Fund), a series of Oppenheimer Series Fund, Inc.
(the Company), is registered under the Investment Company Act of 1940, as
amended, as an open-end management investment company. The Fund's investment
objective is to seek long-term growth of capital by investing primarily in
common stocks with low price-earnings ratios and better-than-anticipated
earnings. The Fund's investment advisor is OppenheimerFunds, Inc. (the
Manager).
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 Directors, or at their fair value.
Fair value is determined in good faith under consistently applied procedures
under the supervision of the Board of Directors. 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.
18 | OPPENHEIMER VALUE FUND
- --------------------------------------------------------------------------------
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 $43,808,574. 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
unused capital loss carryforwards as follows:
Expiring
----------------------
2008 $ 9,239,162
2009 5,386,519
2010 27,168,039
-----------
Total $41,793,720
===========
- --------------------------------------------------------------------------------
Directors' Compensation. The Fund has adopted an unfunded retirement plan for
the Fund's independent directors. Benefits are based on years of service and
fees paid to each director during the years of service. During the six months
ended April 30, 2003, the Fund's projected benefit obligations were increased
by $2,745 and payments of $3,614 were made to retired directors, resulting in
an accumulated liability of $45,730 as of April 30, 2003.
19 | OPPENHEIMER VALUE FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
1. Significant Accounting Policies Continued
The Board of Directors has adopted a deferred compensation plan for
independent directors that enables directors to elect to defer receipt of all
or a portion of 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 director. Deferral of directors' fees under the plan
will not affect the net assets of the Fund, and will not materially affect the
Fund's assets, liabilities or net 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 $334,032 $ 139,084
Long-term capital gain -- --
Return of capital -- --
----------------------------
Total $334,032 $139,084
============================
- --------------------------------------------------------------------------------
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.
20 | OPPENHEIMER VALUE FUND
- --------------------------------------------------------------------------------
2. Shares of Capital Stock
The Fund has authorized 600 million shares of $0.001 par value capital stock of
each class. Transactions in shares of capital stock were as follows:
Six Months Ended April 30, 2003 Year Ended October 31, 2002
Shares Amount Shares Amount
- ----------------------------------------------------------------------------------------
Class A
Sold 1,927,502 $ 29,318,107 1,908,060 $ 31,560,410
Dividends and/or
distributions reinvested 20,386 312,728 7,395 129,115
Redeemed (1,454,880) (21,884,964) (2,777,138) (45,899,702)
-----------------------------------------------------------
Net increase (decrease) 493,008 $ 7,745,871 (861,683) $(14,210,177)
===========================================================
- ---------------------------------------------------------------------------------------
Class B
Sold 644,593 $ 9,687,942 849,996 $ 13,980,805
Dividends and/or
distributions reinvested -- -- -- --
Redeemed (733,954) (10,895,819) (1,241,241) (20,131,407)
-----------------------------------------------------------
Net decrease (89,361) $ (1,207,877) (391,245) $ (6,150,602)
===========================================================
- ---------------------------------------------------------------------------------------
Class C
Sold 1,246,278 $ 18,506,805 508,463 $ 8,150,546
Dividends and/or
distributions reinvested -- -- -- --
Redeemed (865,838) (12,675,844) (245,484) (3,850,883)
-----------------------------------------------------------
Net increase 380,440 $ 5,830,961 262,979 $ 4,299,663
===========================================================
- ---------------------------------------------------------------------------------------
Class N
Sold 146,555 $ 2,183,264 91,314 $ 1,447,129
Dividends and/or
distributions reinvested 264 4,022 2 40
Redeemed (46,476) (673,183) (10,222) (160,590)
-----------------------------------------------------------
Net increase 100,343 $ 1,514,103 81,094 $ 1,286,579
===========================================================
- ---------------------------------------------------------------------------------------
Class Y
Sold 28,791 $ 435,926 46,172 $ 771,487
Dividends and/or
distributions reinvested 105 1,632 201 3,570
Redeemed (6,951) (105,089) (13,958) (211,425)
-----------------------------------------------------------
Net increase 21,945 $ 332,469 32,415 $ 563,632
===========================================================
- --------------------------------------------------------------------------------
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
$148,714,617 and $136,189,196, respectively.
21 | OPPENHEIMER VALUE FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
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 which provides for a fee of
0.625% of the first $300 million of average annual net assets of the Fund,
0.50% of the next $100 million, and 0.45% of average annual net assets in
excess of $400 million.
- --------------------------------------------------------------------------------
Accounting Fees. The Manager acts as the accounting agent for the Fund at an
annual fee of $15,000, plus out-of-pocket costs and expenses reasonably
incurred.
- --------------------------------------------------------------------------------
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 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 $205,574 $85,223 $12,365 $171,522 $52,712 $13,850
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 $2,163 $104,265 $2,025 $2,943
- --------------------------------------------------------------------------------
Service Plan for Class A Shares. The Fund has adopted a Service Plan for Class
A Shares. It reimburses the Distributor for a portion of its costs incurred for
services provided to accounts that hold Class A shares. Reimbursement is made
quarterly at an annual rate of up to 0.25% of the average annual net assets of
Class A shares of the Fund. For the six months ended April 30, 2003, payments
under the Class A Plan totaled $181,108, all of
22 | OPPENHEIMER VALUE FUND
which were paid by the Distributor to recipients, and included $60,917 paid to
an affiliate of the Manager. Any unreimbursed expenses the Distributor incurs
with respect to Class A shares in any fiscal year cannot be recovered in
subsequent years.
- --------------------------------------------------------------------------------
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 $240,300 $183,422 $2,253,100 4.66%
Class C Plan 81,524 32,271 445,523 2.24
Class N Plan 4,779 4,326 42,030 1.50
- --------------------------------------------------------------------------------
5. Option Activity
The Fund may buy and sell put and call options, or write put and covered call
options on portfolio securities in order to produce incremental earnings or
protect against changes in the value of portfolio securities.
The Fund generally purchases put options or writes covered call options to
hedge against adverse movements in the value of portfolio holdings. When an
option is written, the Fund receives a premium and becomes obligated to sell or
purchase the underlying security at a fixed price, upon exercise of the option.
Options are valued daily based upon the last sale price on the principal
exchange on which the option is traded and unrealized appreciation or
depreciation is recorded. The Fund will realize a gain or loss upon the
expiration or closing of the option transaction. When an option is exercised,
the proceeds on sales for a written call option, the purchase cost for a
written put option, or the cost of the security for a purchased put or call
option is adjusted by the amount of premium received or paid.
Securities designated to cover outstanding call options are noted in the
Statement of Investments where applicable. Shares subject to call, expiration
date, exercise price, premium received and market value are detailed in a note
to the Statement of Investments. Options written are reported as a liability in
the Statement of Assets and Liabilities. Realized gains and losses are reported
in the Statement of Operations.
The risk in writing a call option is that the Fund gives up the opportunity
for profit if the market price of the security increases and the option is
exercised. The risk in writing a put option is that the Fund may incur a loss
if the market price of the security decreases
23 | OPPENHEIMER VALUE FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
5. Option Activity Continued
and the option is exercised. The risk in buying an option is that the Fund pays
a premium whether or not the option is exercised. The Fund also has the
additional risk of not being able to enter into a closing transaction if a
liquid secondary market does not exist.
Written option activity for the six months ended April 30, 2003 was as follows:
Call Options
-------------------------
Number of Amount of
Contracts Premiums
----------------------------------------------------------------
Options outstanding as of
October 31, 2002 14 $ 742
Options written 1,511 72,602
Options exercised (1,525) (73,344)
-----------------------
Options outstanding as of
April 30, 2003 -- $ --
=======================
- --------------------------------------------------------------------------------
6. Borrowing and Lending Arrangements
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 Directors, 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 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)