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 811-10153
Oppenheimer Select Managers Series - QM Active Balanced Fund
------------------------------------------------------------
(Exact name of registrant as specified in charter)
6803 SOUTH TUCSON WAY, CENTENNIAL, COLORADO 80112-3924
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(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: November 30
Date of reporting period: December 1, 2002 - May 31, 2003
ITEM 1. REPORTS TO STOCKHOLDERS.
STATEMENT OF INVESTMENTS May 31, 2003 / Unaudited
Market Value
Shares See Note 1
- ----------------------------------------------------------------
Common Stocks--64.1%
- ----------------------------------------------------------------
Consumer Discretionary--9.2%
- ----------------------------------------------------------------
Auto Components--0.2%
American Axle & Manufacturing
Holdings, Inc. 1 400 $ 10,000
- ----------------------------------------------------------------
Gentex Corp. 1 100 3,114
- ----------------------------------------------------------------
Stoneridge, Inc. 1 100 1,178
------------
14,292
- ----------------------------------------------------------------
Automobiles--0.4%
Ford Motor Co. 900 9,450
- ----------------------------------------------------------------
General Motors Corp. 500 17,665
------------
27,115
- ----------------------------------------------------------------
Distributors--0.0%
Handleman Co. 1 200 3,648
- ----------------------------------------------------------------
Hotels, Restaurants & Leisure--0.6%
Harrah's Entertainment, Inc. 1 200 8,018
- ----------------------------------------------------------------
Jack in the Box, Inc. 1 200 4,204
- ----------------------------------------------------------------
Mandalay Resort Group 1 700 21,105
- ----------------------------------------------------------------
Papa John's International, Inc. 1 100 2,477
- ----------------------------------------------------------------
Park Place Entertainment Corp. 1 300 2,286
- ----------------------------------------------------------------
Ryan's Family Steak Houses, Inc. 1 400 5,140
------------
43,230
- ----------------------------------------------------------------
Household Durables--0.5%
Harman International Industries, Inc. 200 14,840
- ----------------------------------------------------------------
KB Home 100 6,250
- ----------------------------------------------------------------
Lennar Corp., Cl. B 10 651
- ----------------------------------------------------------------
Ryland Group, Inc. (The) 200 13,020
- ----------------------------------------------------------------
Standard Pacific Corp. 100 3,438
------------
38,199
- ----------------------------------------------------------------
Internet & Catalog Retail--0.8%
Amazon.com, Inc. 1 600 21,564
- ----------------------------------------------------------------
USA Interactive 1 900 34,605
------------
56,169
- ----------------------------------------------------------------
Leisure Equipment & Products--0.4%
Eastman Kodak Co. 300 9,192
- ----------------------------------------------------------------
Mattel, Inc. 1 500 10,755
- ----------------------------------------------------------------
SCP Pool Corp. 1 300 9,663
------------
29,610
- ----------------------------------------------------------------
Media--3.0%
AOL Time Warner, Inc. 1 1,600 24,352
- ----------------------------------------------------------------
Clear Channel Communications, Inc. 1 400 16,280
- ----------------------------------------------------------------
Comcast Corp., Cl. A 1 226 6,805
- ----------------------------------------------------------------
Courier Corp. 100 4,876
Market Value
Shares See Note 1
- ----------------------------------------------------------------
Media Continued
Disney (Walt) Co. 700 $ 13,755
- ----------------------------------------------------------------
Gannett Co., Inc. 400 31,600
- ----------------------------------------------------------------
Knight-Ridder, Inc. 300 21,132
- ----------------------------------------------------------------
Liberty Media Corp., Cl. A 1 1,800 21,060
- ----------------------------------------------------------------
McGraw-Hill Cos., Inc. (The) 200 12,642
- ----------------------------------------------------------------
Meredith Corp. 300 13,191
- ----------------------------------------------------------------
Pulitzer, Inc. 100 5,028
- ----------------------------------------------------------------
Viacom, Inc., Cl. B 1 1,100 50,072
------------
220,793
- ----------------------------------------------------------------
Multiline Retail--1.3%
99 Cents Only Stores 1 100 3,178
- ----------------------------------------------------------------
BJ's Wholesale Club, Inc. 1 200 3,084
- ----------------------------------------------------------------
Federated Department Stores, Inc. 1 500 16,250
- ----------------------------------------------------------------
Fred's, Inc. 200 7,358
- ----------------------------------------------------------------
Penney (J.C.) Co., Inc. (Holding Co.) 400 6,928
- ----------------------------------------------------------------
Sears Roebuck & Co. 400 11,992
- ----------------------------------------------------------------
Stage Stores, Inc. 1 100 2,442
- ----------------------------------------------------------------
Wal-Mart Stores, Inc. 800 42,088
------------
93,320
- ----------------------------------------------------------------
Specialty Retail--1.9%
Abercrombie & Fitch Co., Cl. A 1 500 14,275
- ----------------------------------------------------------------
AutoZone, Inc. 1 300 25,104
- ----------------------------------------------------------------
Best Buy Co., Inc. 1 200 7,740
- ----------------------------------------------------------------
Home Depot, Inc. 1,400 45,486
- ----------------------------------------------------------------
Lowe's Cos., Inc. 800 33,808
- ----------------------------------------------------------------
PetsMart, Inc. 1 700 12,103
------------
138,516
- ----------------------------------------------------------------
Textiles, Apparel & Luxury Goods--0.1%
Jones Apparel Group, Inc. 1 400 11,744
- ----------------------------------------------------------------
Consumer Staples--5.1%
- ----------------------------------------------------------------
Beverages--1.4%
Anheuser-Busch Cos., Inc. 600 31,578
- ----------------------------------------------------------------
Coca-Cola Co. (The) 400 18,228
- ----------------------------------------------------------------
Pepsi Bottling Group, Inc. (The) 1,200 24,468
- ----------------------------------------------------------------
PepsiCo, Inc. 600 26,520
------------
100,794
- ----------------------------------------------------------------
Food & Staples Retailing--0.7%
Albertson's, Inc. 400 8,348
- ----------------------------------------------------------------
Kroger Co. (The) 1 900 14,445
- ----------------------------------------------------------------
Safeway, Inc. 1 700 13,188
- ----------------------------------------------------------------
Winn-Dixie Stores, Inc. 900 12,726
------------
48,707
5 | OPPENHEIMER SELECT MANAGERS QM ACTIVE BALANCED FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
Market Value
Shares See Note 1
- ----------------------------------------------------------------
Food Products--0.7%
ConAgra Foods, Inc. 100 $ 2,427
- ----------------------------------------------------------------
General Mills, Inc. 100 4,678
- ----------------------------------------------------------------
Hain Celestial Group, Inc. 1 200 3,456
- ----------------------------------------------------------------
Heinz (H.J.) Co. 200 6,614
- ----------------------------------------------------------------
International Multifoods Corp. 1 700 14,140
- ----------------------------------------------------------------
Interstate Bakeries Corp. 200 2,596
- ----------------------------------------------------------------
Sara Lee Corp. 800 14,576
- ----------------------------------------------------------------
Tyson Foods, Inc., Cl. A 700 6,650
------------
55,137
- ----------------------------------------------------------------
Household Products--1.7%
Clorox Co. (The) 200 8,932
- ----------------------------------------------------------------
Energizer Holdings, Inc. 1 800 25,424
- ----------------------------------------------------------------
Kimberly-Clark Corp. 700 36,351
- ----------------------------------------------------------------
Procter & Gamble Corp. (The) 600 55,092
------------
125,799
- ----------------------------------------------------------------
Personal Products--0.1%
Avon Products, Inc. 100 6,094
- ----------------------------------------------------------------
Tobacco--0.5%
Altria Group, Inc. 900 37,170
- ----------------------------------------------------------------
Energy--3.5%
- ----------------------------------------------------------------
Energy Equipment & Services--0.3%
FMC Technologies, Inc. 1 400 8,932
- ----------------------------------------------------------------
Gulf Island Fabrication, Inc. 1 100 1,729
- ----------------------------------------------------------------
Nabors Industries Ltd. 1 200 9,016
------------
19,677
- ----------------------------------------------------------------
Oil & Gas--3.2%
Amerada Hess Corp. 200 9,800
- ----------------------------------------------------------------
Anadarko Petroleum Corp. 400 19,712
- ----------------------------------------------------------------
Burlington Resources, Inc. 400 21,316
- ----------------------------------------------------------------
ChevronTexaco Corp. 331 23,481
- ----------------------------------------------------------------
Comstock Resources, Inc. 1 100 1,371
- ----------------------------------------------------------------
Denbury Resources, Inc. 1 500 6,075
- ----------------------------------------------------------------
Devon Energy Corp. 500 26,000
- ----------------------------------------------------------------
Exxon Mobil Corp. 2,700 98,280
- ----------------------------------------------------------------
Marathon Oil Corp. 100 2,573
- ----------------------------------------------------------------
Premcor, Inc. 1 200 4,350
- ----------------------------------------------------------------
Spinnaker Exploration Co. 1 600 15,876
- ----------------------------------------------------------------
Stone Energy Corp. 1 100 4,090
- ----------------------------------------------------------------
Valero Energy Corp. 100 3,750
------------
236,674
Market Value
Shares See Note 1
- ----------------------------------------------------------------
Financials--13.8%
- ----------------------------------------------------------------
Commercial Banks--5.5%
AmSouth Bancorp 300 $ 6,696
- ----------------------------------------------------------------
Bank of America Corp. 800 59,360
- ----------------------------------------------------------------
Bank One Corp. 500 18,680
- ----------------------------------------------------------------
Charter One Financial, Inc. 800 24,368
- ----------------------------------------------------------------
FirstFed Financial Corp. 1 200 6,786
- ----------------------------------------------------------------
FleetBoston Financial Corp. 900 26,613
- ----------------------------------------------------------------
Flushing Financial Corp. 200 4,118
- ----------------------------------------------------------------
Golden West Financial Corp. 200 15,558
- ----------------------------------------------------------------
Greenpoint Financial Corp. 200 10,138
- ----------------------------------------------------------------
Independence Community Bank Corp. 100 2,830
- ----------------------------------------------------------------
National City Corp. 500 16,910
- ----------------------------------------------------------------
Net.B@nk, Inc. 400 5,308
- ----------------------------------------------------------------
New York Community Bancorp, Inc. 800 22,160
- ----------------------------------------------------------------
North Fork Bancorp., Inc. 200 6,614
- ----------------------------------------------------------------
Popular, Inc. 300 11,848
- ----------------------------------------------------------------
Roslyn Bancorp, Inc. 100 1,931
- ----------------------------------------------------------------
Staten Island Bancorp, Inc. 200 3,856
- ----------------------------------------------------------------
U.S. Bancorp 706 16,732
- ----------------------------------------------------------------
Union Planters Corp. 600 19,308
- ----------------------------------------------------------------
UnionBanCal Corp. 200 8,450
- ----------------------------------------------------------------
Wachovia Corp. 1,200 48,216
- ----------------------------------------------------------------
Washington Mutual, Inc. 1,050 42,819
- ----------------------------------------------------------------
Wells Fargo Co. 500 24,150
------------
403,449
- ----------------------------------------------------------------
Diversified Financial Services--4.9%
Capital One Financial Corp. 200 9,634
- ----------------------------------------------------------------
Citigroup, Inc. 2,100 86,142
- ----------------------------------------------------------------
Countrywide Financial Corp. 400 29,460
- ----------------------------------------------------------------
DVI, Inc. 1 400 3,180
- ----------------------------------------------------------------
Fannie Mae 700 51,800
- ----------------------------------------------------------------
Freddie Mac 700 41,867
- ----------------------------------------------------------------
Goldman Sachs Group, Inc. (The) 100 8,150
- ----------------------------------------------------------------
Household International, Inc. 1,000 31,710
- ----------------------------------------------------------------
J.P. Morgan Chase & Co. 1,400 46,004
- ----------------------------------------------------------------
Moody's Corp. 200 10,430
- ----------------------------------------------------------------
Morgan Stanley 300 13,725
- ----------------------------------------------------------------
Principal Financial Group, Inc. (The) 1 700 22,232
------------
354,334
- ----------------------------------------------------------------
Insurance--2.7%
ACE Ltd. 200 7,300
- ----------------------------------------------------------------
Allstate Corp. 300 10,797
- ----------------------------------------------------------------
American International Group, Inc. 615 35,596
- ----------------------------------------------------------------
American Physicians Capital, Inc. 1 300 7,029
6 | OPPENHEIMER SELECT MANAGERS QM ACTIVE BALANCED FUND
Market Value
Shares See Note 1
- ----------------------------------------------------------------
Insurance Continued
AmerUs Group Co. 1 500 $ 13,455
- ----------------------------------------------------------------
Brown & Brown, Inc. 200 7,090
- ----------------------------------------------------------------
Fidelity National Financial, Inc. 312 9,694
- ----------------------------------------------------------------
John Hancock Financial Services, Inc. 1 600 18,150
- ----------------------------------------------------------------
LandAmerica Financial Group, Inc. 100 4,715
- ----------------------------------------------------------------
Loews Corp. 200 9,620
- ----------------------------------------------------------------
MetLife, Inc. 1 900 25,173
- ----------------------------------------------------------------
St. Paul Cos., Inc. 400 14,632
- ----------------------------------------------------------------
Travelers Property Casualty Corp., Cl. A 1,077 17,587
- ----------------------------------------------------------------
Travelers Property Casualty Corp., Cl. B 759 12,273
- ----------------------------------------------------------------
UnumProvident Corp. 500 6,450
------------
199,561
- ----------------------------------------------------------------
Real Estate--0.7%
Boykin Lodging Co. 300 2,421
- ----------------------------------------------------------------
Equity Inns, Inc. 100 714
- ----------------------------------------------------------------
Equity Office Properties Trust 200 5,382
- ----------------------------------------------------------------
Friedman, Billings, Ramsey Group,
Inc., Cl. A 365 4,854
- ----------------------------------------------------------------
Impac Mortgage Holdings, Inc. 700 10,283
- ----------------------------------------------------------------
National Health Investors, Inc. 600 10,170
- ----------------------------------------------------------------
Nationwide Health Properties, Inc. 1,000 15,210
------------
49,034
- ----------------------------------------------------------------
Health Care--10.2%
- ----------------------------------------------------------------
Biotechnology--1.7%
Amgen, Inc. 1 720 46,591
- ----------------------------------------------------------------
Genentech, Inc. 1 800 50,088
- ----------------------------------------------------------------
Wyeth 600 26,310
------------
122,989
- ----------------------------------------------------------------
Health Care Equipment & Supplies--1.4%
Analogic Corp. 100 5,100
- ----------------------------------------------------------------
Bard (C.R.), Inc. 200 14,030
- ----------------------------------------------------------------
Becton, Dickinson & Co. 600 24,000
- ----------------------------------------------------------------
Edwards Lifesciences Corp. 1 200 6,064
- ----------------------------------------------------------------
Fisher Scientific International, Inc. 1 100 3,169
- ----------------------------------------------------------------
Hillenbrand Industries, Inc. 100 5,115
- ----------------------------------------------------------------
Medtronic, Inc. 100 4,873
- ----------------------------------------------------------------
Mentor Corp. 700 14,854
- ----------------------------------------------------------------
Stryker Corp. 300 20,202
- ----------------------------------------------------------------
West Pharmaceutical Services, Inc. 100 2,514
------------
99,921
- ----------------------------------------------------------------
Health Care Providers & Services--1.9%
AdvancePCS, Inc. 1 100 3,321
- ----------------------------------------------------------------
Aetna, Inc. 1 200 11,484
Market Value
Shares See Note 1
- ----------------------------------------------------------------
Health Care Providers & Services Continued
Anthem, Inc. 1 300 $ 22,005
- ----------------------------------------------------------------
Cigna Corp. 300 16,830
- ----------------------------------------------------------------
DaVita, Inc. 1 100 2,425
- ----------------------------------------------------------------
Express Scripts, Inc. 1 300 19,632
- ----------------------------------------------------------------
PacifiCare Health Systems, Inc. 1 200 7,732
- ----------------------------------------------------------------
Renal Care Group, Inc. 1 200 6,796
- ----------------------------------------------------------------
Tenet Healthcare Corp. 1 600 10,014
- ----------------------------------------------------------------
UnitedHealth Group, Inc. 300 28,782
- ----------------------------------------------------------------
Universal Health Services, Inc., Cl. B 1 100 4,541
- ----------------------------------------------------------------
US Oncology, Inc. 1 700 5,985
------------
139,547
- ----------------------------------------------------------------
Pharmaceuticals--5.2%
Abbott Laboratories 500 22,275
- ----------------------------------------------------------------
Allergan, Inc. 400 28,844
- ----------------------------------------------------------------
Bristol-Myers Squibb Co. 1,100 28,160
- ----------------------------------------------------------------
Forest Laboratories, Inc. 1 500 25,250
- ----------------------------------------------------------------
Johnson & Johnson 1,596 86,742
- ----------------------------------------------------------------
Merck & Co., Inc. 1,400 77,812
- ----------------------------------------------------------------
Mylan Laboratories, Inc. 500 14,440
- ----------------------------------------------------------------
Pfizer, Inc. 3,240 100,505
------------
384,028
- ----------------------------------------------------------------
Industrials--6.7%
- ----------------------------------------------------------------
Aerospace & Defense--1.0%
Boeing Co. 200 6,134
- ----------------------------------------------------------------
General Dynamics Corp. 100 6,682
- ----------------------------------------------------------------
Honeywell International, Inc. 300 7,860
- ----------------------------------------------------------------
InVision Technologies, Inc. 1 100 2,365
- ----------------------------------------------------------------
L-3 Communications Holdings, Inc. 1 300 13,005
- ----------------------------------------------------------------
Mercury Computer Systems, Inc. 1 700 15,400
- ----------------------------------------------------------------
United Technologies Corp. 300 20,475
------------
71,921
- ----------------------------------------------------------------
Air Freight & Logistics--0.4%
EGL, Inc. 1 600 9,396
- ----------------------------------------------------------------
FedEx Corp. 200 12,796
United Parcel Service, Inc., Cl. B 100 6,243
------------
28,435
- ----------------------------------------------------------------
Airlines--0.1%
ExpressJet Holdings, Inc. 1 300 3,522
- ----------------------------------------------------------------
JetBlue Airways Corp. 1 200 6,760
------------
10,282
7 | OPPENHEIMER SELECT MANAGERS QM ACTIVE BALANCED FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
Market Value
Shares See Note 1
- ----------------------------------------------------------------
Building Products--0.3%
American Woodmark Corp. 200 $ 9,378
- ----------------------------------------------------------------
Watsco, Inc. 600 9,420
------------
18,798
- ----------------------------------------------------------------
Commercial Services & Supplies--1.7%
Allied Waste Industries, Inc. 1 600 5,928
- ----------------------------------------------------------------
Apollo Group, Inc., Cl. A 1 300 17,526
- ----------------------------------------------------------------
Automatic Data Processing, Inc. 500 17,450
- ----------------------------------------------------------------
Coinstar, Inc. 1 400 8,488
- ----------------------------------------------------------------
CSG Systems International, Inc. 1 200 2,644
- ----------------------------------------------------------------
Education Management Corp. 1 100 4,754
- ----------------------------------------------------------------
eFunds Corp. 1 200 2,078
- ----------------------------------------------------------------
H&R Block, Inc. 600 24,564
- ----------------------------------------------------------------
Harland (John H.) Co. 700 17,059
- ----------------------------------------------------------------
MemberWorks, Inc. 1 400 8,800
- ----------------------------------------------------------------
Republic Services, Inc. 1 300 7,173
- ----------------------------------------------------------------
Right Management Consultants, Inc. 1 650 8,444
------------
124,908
- ----------------------------------------------------------------
Construction & Engineering--0.1%
Shaw Group, Inc. (The) 1 600 7,320
- ----------------------------------------------------------------
Electrical Equipment--0.4%
Acuity Brands, Inc. 400 6,628
- ----------------------------------------------------------------
Emerson Electric Co. 100 5,230
- ----------------------------------------------------------------
Genlyte Group, Inc. (The) 1 200 7,598
- ----------------------------------------------------------------
Paxar Corp. 1 300 3,372
- ----------------------------------------------------------------
Tecumseh Products Co., Cl. A 100 3,845
------------
26,673
- ----------------------------------------------------------------
Industrial Conglomerates--2.0%
3M Co. 100 12,647
- ----------------------------------------------------------------
General Electric Co. 3,600 103,320
- ----------------------------------------------------------------
Tyco International Ltd. 1,600 28,320
------------
144,287
- ----------------------------------------------------------------
Machinery--0.4%
Actuant Corp., Cl. A 1 100 4,326
- ----------------------------------------------------------------
Albany International Corp., Cl. A 200 5,324
- ----------------------------------------------------------------
Cascade Corp. 100 1,625
- ----------------------------------------------------------------
Danaher Corp. 100 6,692
- ----------------------------------------------------------------
Deere & Co. 100 4,367
- ----------------------------------------------------------------
Pentair, Inc. 100 3,886
- ----------------------------------------------------------------
Trinity Industries, Inc. 100 1,730
- ----------------------------------------------------------------
Wabash National Corp. 1 100 1,249
------------
29,199
Market Value
Shares See Note 1
- ----------------------------------------------------------------
Road & Rail--0.2%
Burlington Northern Santa Fe Corp. 300 $ 8,853
- ----------------------------------------------------------------
Hunt (J.B.) Transport Services, Inc. 1 100 3,704
- ----------------------------------------------------------------
Roadway Corp. 100 3,700
------------
16,257
- ----------------------------------------------------------------
Trading Companies & Distributors--0.1%
Applied Industrial Technologies, Inc. 100 1,915
- ----------------------------------------------------------------
Grainger (W.W.), Inc. 200 9,340
------------
11,255
- ----------------------------------------------------------------
Information Technology--9.9%
- ----------------------------------------------------------------
Communications Equipment--1.9%
ADTRAN, Inc. 1 200 9,662
- ----------------------------------------------------------------
Avocent Corp. 1 100 2,956
- ----------------------------------------------------------------
Cisco Systems, Inc. 1 5,000 81,400
- ----------------------------------------------------------------
NetScreen Technologies, Inc. 1 500 11,195
- ----------------------------------------------------------------
QUALCOMM, Inc. 1,000 33,580
------------
138,793
- ----------------------------------------------------------------
Computers & Peripherals--2.6%
Dell Computer Corp. 1 1,700 53,193
- ----------------------------------------------------------------
Hewlett-Packard Co. 1,279 24,941
- ----------------------------------------------------------------
Hutchinson Technology, Inc. 1 300 9,057
- ----------------------------------------------------------------
International Business Machines Corp. 800 70,432
- ----------------------------------------------------------------
Lexmark International, Inc., Cl. A 1 400 29,760
- ----------------------------------------------------------------
Western Digital Corp. 1 200 2,504
------------
189,887
- ----------------------------------------------------------------
Electronic Equipment & Instruments--0.1%
Benchmark Electronics, Inc. 1 200 5,688
- ----------------------------------------------------------------
Methode Electronics, Inc., Cl. A 100 1,110
------------
6,798
- ----------------------------------------------------------------
Internet Software & Services--0.3%
Yahoo!, Inc. 1 900 26,865
- ----------------------------------------------------------------
IT Services--0.0%
Keane, Inc. 1 200 2,254
- ----------------------------------------------------------------
Office Electronics--0.1%
Xerox Corp. 1 500 5,465
- ----------------------------------------------------------------
Semiconductors & Semiconductor Equipment--2.6%
Altera Corp. 1 800 15,424
- ----------------------------------------------------------------
Intel Corp. 3,600 75,024
- ----------------------------------------------------------------
Linear Technology Corp. 700 25,452
- ----------------------------------------------------------------
QLogic Corp. 1 600 30,054
- ----------------------------------------------------------------
Texas Instruments, Inc. 2,100 43,050
------------
189,004
8 | OPPENHEIMER SELECT MANAGERS QM ACTIVE BALANCED FUND
Market Value
Shares See Note 1
- ----------------------------------------------------------------
Software--2.3%
Adobe Systems, Inc. 300 $ 10,587
- ----------------------------------------------------------------
Citrix Systems, Inc. 1 200 4,366
- ----------------------------------------------------------------
Microsoft Corp. 4,200 103,362
- ----------------------------------------------------------------
Oracle Corp. 1 3,100 40,331
- ----------------------------------------------------------------
Progress Software Corp. 1 100 2,043
- ----------------------------------------------------------------
Reynolds & Reynolds Co., Cl. A 200 5,920
------------
166,609
- ----------------------------------------------------------------
Materials--1.4%
- ----------------------------------------------------------------
Chemicals--1.1%
Ecolab, Inc. 100 5,375
- ----------------------------------------------------------------
MacDermid, Inc. 400 10,000
- ----------------------------------------------------------------
Monsanto Co. 817 16,381
- ----------------------------------------------------------------
OM Group, Inc. 1 2,200 31,834
- ----------------------------------------------------------------
PPG Industries, Inc. 100 4,863
- ----------------------------------------------------------------
RPM International, Inc. 800 9,944
------------
78,397
- ----------------------------------------------------------------
Containers & Packaging--0.3%
Caraustar Industries, Inc. 1 200 1,540
- ----------------------------------------------------------------
Jarden Corp. 1 200 5,840
- ----------------------------------------------------------------
Owens-Illinois, Inc. 1 200 2,290
- ----------------------------------------------------------------
Pactiv Corp. 1 300 5,865
- ----------------------------------------------------------------
Silgan Holdings, Inc. 1 100 2,549
------------
18,084
- ----------------------------------------------------------------
Metals & Mining--0.0%
United States Steel Corp. 200 3,150
- ----------------------------------------------------------------
Telecommunication Services--2.7%
- ----------------------------------------------------------------
Diversified Telecommunication Services--1.8%
Alltel Corp. 100 4,788
- ----------------------------------------------------------------
BellSouth Corp. 1,800 47,718
- ----------------------------------------------------------------
SBC Communications, Inc. 800 20,368
- ----------------------------------------------------------------
Sprint Corp. (Fon Group) 1,700 23,052
- ----------------------------------------------------------------
Verizon Communications, Inc. 1,000 37,850
------------
133,776
- ----------------------------------------------------------------
Wireless Telecommunication Services--0.9%
AT&T Corp. 1,000 19,490
- ----------------------------------------------------------------
AT&T Wireless Services, Inc. 1 1,386 10,769
- ----------------------------------------------------------------
Nextel Communications, Inc., Cl. A 1 2,100 31,479
------------
61,738
- ----------------------------------------------------------------
Utilities--1.6%
- ----------------------------------------------------------------
Electric Utilities--1.2%
Alliant Energy Corp. 800 15,984
- ----------------------------------------------------------------
CenterPoint Energy, Inc. 200 1,910
- ----------------------------------------------------------------
Cleco Corp. 100 1,740
Market Value
Shares See Note 1
- ----------------------------------------------------------------
Electric Utilities Continued
DTE Energy Co. 100 $ 4,333
- ----------------------------------------------------------------
Edison International 1 700 11,396
- ----------------------------------------------------------------
Exelon Corp. 300 17,190
- ----------------------------------------------------------------
PG&E Corp. 1 700 11,900
- ----------------------------------------------------------------
PPL Corp. 500 20,220
- ----------------------------------------------------------------
TXU Corp. 200 4,048
------------
88,721
- ----------------------------------------------------------------
Gas Utilities--0.4%
Kinder Morgan, Inc. 200 10,210
- ----------------------------------------------------------------
Sempra Energy 700 19,089
------------
29,299
------------
Total Common Stocks (Cost $4,544,705) 4,687,726
Principal
Amount
- ----------------------------------------------------------------
U.S. Government Obligations--21.9%
U.S. Treasury Bonds, 6.50%, 11/15/26 $150,000 194,994
- ----------------------------------------------------------------
U.S. Treasury Nts.:
3.50%, 11/15/06 175,000 185,268
5%, 2/15/11 215,000 244,151
5.25%, 5/15/04 135,000 140,284
5.75%, 11/15/05 755,000 833,774
------------
Total U.S. Government Obligations
(Cost $1,498,495) 1,598,471
- ----------------------------------------------------------------
Short-Term Notes--1.0%
U.S. Treasury Bills,
1.16%, 6/19/03 2 (Cost $74,957) 75,000 74,957
- ----------------------------------------------------------------
Joint Repurchase Agreements--12.7% 3
Undivided interest of 0.27% in joint repurchase agreement
(Market Value $348,378,000) with Banc One Capital Markets,
Inc., 1.23%, dated 5/30/03, to be repurchased at $932,096
on 6/2/03, collateralized by U.S. Treasury Bonds,
3.375%, 4/30/04, with a value of
$355,526,284 (Cost $932,000) 932,000 932,000
- ----------------------------------------------------------------
Total Investments, at Value
(Cost $7,050,157) 99.7% 7,293,154
- ----------------------------------------------------------------
Other Assets Net of Liabilities 0.3 24,931
---------------------
Net Assets 100.0% $ 7,318,085
=====================
Footnotes to Statement of Investments
1. Non-income producing security.
2. Securities with an aggregate market value of $74,957 are held in
collateralized accounts to cover initial margin requirements on open futures
sales contracts. See Note 5 of Notes to Financial Statements.
3. The Fund may have elements of risk due to concentrated investments.
Such concentrations may subject the Fund to additional risks.
See accompanying Notes to Financial Statements.
9 | OPPENHEIMER SELECT MANAGERS QM ACTIVE BALANCED FUND
STATEMENT OF ASSETS AND LIABILITIES Unaudited
May 31, 2003
- -------------------------------------------------------------------------------
Assets
Investments, at value (including $932,000 in repurchase agreements)
(cost $7,050,157)--see accompanying statement $ 7,293,154
- -------------------------------------------------------------------------------
Receivables and other assets:
Shares of beneficial interest sold 26,224
Interest and dividends 11,686
Daily variation on futures contracts 11,240
Other 533
-----------
Total assets 7,342,837
- -------------------------------------------------------------------------------
Liabilities
Bank overdraft 503
- -------------------------------------------------------------------------------
Payables and other liabilities:
Shares of beneficial interest redeemed 10,627
Legal, auditing and other professional fees 7,726
Shareholder reports 2,872
Distribution and service plan fees 1,013
Transfer and shareholder servicing agent fees 823
Trustees' compensation 172
Other 1,016
-----------
Total liabilities 24,752
- -------------------------------------------------------------------------------
Net Assets $ 7,318,085
===========
- -------------------------------------------------------------------------------
Composition of Net Assets
Paid-in capital $ 7,759,948
- -------------------------------------------------------------------------------
Undistributed net investment income 17,341
- -------------------------------------------------------------------------------
Accumulated net realized loss on investment transactions (838,441)
- -------------------------------------------------------------------------------
Net unrealized appreciation on investments 379,237
-----------
Net Assets $ 7,318,085
===========
- -------------------------------------------------------------------------------
Net Asset Value Per Share
Class A Shares:
Net asset value and redemption price per share
(based on net assets of $5,429,193 and 604,863 shares
of beneficial interest outstanding) $8.98
Maximum offering price per share (net asset value plus
sales charge of 5.75% of offering price) $9.53
- -------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price
(excludes applicable contingent deferred
sales charge) and offering price
per share (based on net assets of $655,231 and
73,653 shares of beneficial interest outstanding) $8.90
- -------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes
applicable contingent deferred
sales charge) and offering price
per share (based on net assets of $701,905 and
78,690 shares of beneficial interest outstanding) $8.92
- -------------------------------------------------------------------------------
Class N Shares:
Net asset value, redemption price
(excludes applicable contingent deferred
sales charge) and offering price per share (based
on net assets of $531,756 and 59,310 shares of
beneficial interest outstanding) $8.97
See accompanying Notes to Financial Statements.
10 | OPPENHEIMER SELECT MANAGERS QM ACTIVE BALANCED FUND
STATEMENT OF OPERATIONS Unaudited
For the Six Months Ended May 31, 2003
- -------------------------------------------------------------------------------------------
Investment Income
Interest $ 43,175
- -------------------------------------------------------------------------------------------
Dividends (net of foreign withholding taxes of $13) 33,992
----------
Total investment income 77,167
- -------------------------------------------------------------------------------------------
Expenses
Management fees 30,382
- -------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 1,149
Class B 2,662
Class C 2,877
Class N 1,094
- -------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 2,313
Class B 1,750
Class C 1,564
Class N 969
Class Y 8
- -------------------------------------------------------------------------------------------
Legal, auditing and other professional fees 6,681
- -------------------------------------------------------------------------------------------
Shareholder reports 3,542
- -------------------------------------------------------------------------------------------
Trustees' compensation 2,446
- -------------------------------------------------------------------------------------------
Custodian fees and expenses 298
- -------------------------------------------------------------------------------------------
Other 1,543
----------
Total expenses 59,278
Less voluntary reimbursement of expenses (4,750)
Less voluntary waiver of transfer and shareholder servicing agent fees--Class B (990)
Less voluntary waiver of transfer and shareholder servicing agent fees--Class C (598)
Less voluntary waiver of transfer and shareholder servicing agent fees--Class N (207)
Less voluntary waiver of transfer and shareholder servicing agent fees--Class Y (5)
----------
Net expenses 52,728
- -------------------------------------------------------------------------------------------
Net Investment Income 24,439
- -------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
Net realized loss on:
Investments (134,709)
Closing of futures contracts (52,382)
----------
Net realized loss (187,091)
- -------------------------------------------------------------------------------------------
Net change in unrealized appreciation on:
Investments 496,032
Futures contracts 97,277
----------
Net unrealized appreciation 593,309
- -------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations $ 430,657
==========
See accompanying Notes to Financial Statements.
11 | OPPENHEIMER SELECT MANAGERS QM ACTIVE BALANCED FUND
STATEMENTS OF CHANGES IN NET ASSETS
Six Months Year
Ended Ended
May 31, 2003 November 30,
(Unaudited) 2002
- --------------------------------------------------------------------------------------------------------------------------------
Operations
Net investment income $ 24,439 $ 54,560
- --------------------------------------------------------------------------------------------------------------------------------
Net realized loss (187,091) (418,376)
- --------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) 593,309 (118,544)
--------------------------
Net increase (decrease) in net assets resulting from operations 430,657 (482,360)
- --------------------------------------------------------------------------------------------------------------------------------
Dividends and/or Distributions to Shareholders
Dividends from net investment income:
Class A (51,591) (49,625)
Class B (1,161) (947)
Class C -- (3,716)
Class N (2,086) (358)
Class Y (5) (12)
- --------------------------------------------------------------------------------------------------------------------------------
Beneficial Interest Transactions
Net increase (decrease) in net assets resulting from beneficial interest
transactions:
Class A 264,566 534,329
Class B 161,949 376,649
Class C 138,518 207,640
Class N 180,767 284,637
Class Y (886) --
- --------------------------------------------------------------------------------------------------------------------------------
Net Assets
Total increase 1,120,728 866,237
- --------------------------------------------------------------------------------------------------------------------------------
Beginning of period 6,197,357 5,331,120
--------------------------
End of period [including undistributed net investment income of $17,341 and $47,740, respectively $ 7,318,085 $ 6,197,357
==========================
See accompanying Notes to Financial Statements.
12 | OPPENHEIMER SELECT MANAGERS QM ACTIVE BALANCED FUND
FINANCIAL HIGHLIGHTS
Six Months Year
Ended Ended
May 31, 2003 Nov. 30,
Class A (Unaudited) 2002 2001 1
- --------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $8.55 $9.44 $10.00
- --------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .04 .09 .09
Net realized and unrealized gain (loss) .48 (.88) (.65)
-------------------------------
Total from investment operations .52 (.79) (.56)
- --------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.09) (.10) --
- --------------------------------------------------------------------------
Net asset value, end of period $8.98 $8.55 $9.44
===============================
- --------------------------------------------------------------------------
Total Return, at Net Asset Value 2 6.17% (8.49)% (5.60)%
- --------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $5,429 $4,898 $4,829
- --------------------------------------------------------------------------
Average net assets (in thousands) $4,866 $4,744 $4,739
- --------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 0.91% 1.08% 1.19%
Expenses, gross 1.55% 1.51% 1.53%
Expenses, net 1.41% 4 1.41% 4,5 1.51% 4,5
- --------------------------------------------------------------------------
Portfolio turnover rate 30% 73% 32%
1. For the period from February 16, 2001 (inception of offering) to November 30,
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. Net of voluntary reimbursement of expenses.
5. Net of voluntary waiver of transfer agent fees.
See accompanying Notes to Financial Statements.
13 | OPPENHEIMER SELECT MANAGERS QM ACTIVE BALANCED FUND
FINANCIAL HIGHLIGHTS Continued
Six Months Year
Ended Ended
May 31, 2003 Nov. 30,
Class B (Unaudited) 2002 2001 1
- -------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $ 8.44 $ 9.37 $10.00
- -------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .01 .07 .01
Net realized and unrealized gain (loss) .47 (.92) (.64)
-------------------------------
Total from investment operations .48 (.85) (.63)
- --------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.02) (.08) --
- -------------------------------------------------------------------------
Net asset value, end of period $8.90 $8.44 $9.37
==============================
- -------------------------------------------------------------------------
Total Return, at Net Asset Value 2 5.72% (9.11)% (6.30)%
- -------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $655 $455 $100
- -------------------------------------------------------------------------
Average net assets (in thousands) $535 $255 $ 32
- -------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 0.16% 0.28% 0.50%
Expenses, gross 3.06% 2.75% 2.44%
Expenses, net 2.54% 4,5 2.64% 4,5 2.17% 4,5
- -------------------------------------------------------------------------
Portfolio turnover rate 30% 73% 32%
1. For the period from February 16, 2001 (inception of offering) to November 30,
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. Net of voluntary waiver of transfer agent fees.
5. Net of voluntary reimbursement of expenses.
See accompanying Notes to Financial Statements.
14 | OPPENHEIMER SELECT MANAGERS QM ACTIVE BALANCED FUND
Six Months Year
Ended Ended
May 31, 2003 Nov. 30,
Class C (Unaudited) 2002 2001 1
- ---------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $8.44 $ 9.38 $10.00
- ---------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .01 .05 .01
Net realized and unrealized gain (loss) .47 (.90) (.63)
--------------------------------
Total from investment operations .48 (.85) (.62)
- ---------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income -- (.09) --
- ---------------------------------------------------------------------------
Net asset value, end of period $8.92 $8.44 $ 9.38
================================
- ---------------------------------------------------------------------------
Total Return, at Net Asset Value 2 5.69% (9.12)% (6.20)%
- ---------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $702 $521 $363
- ---------------------------------------------------------------------------
Average net assets (in thousands) $578 $467 $ 68
- ---------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 0.16% 0.29% 0.46%
Expenses, gross 2.94% 2.67% 2.43%
Expenses, net 2.56% 4,5 2.56% 4,5 2.04% 4,5
- ---------------------------------------------------------------------------
Portfolio turnover rate 30% 73% 32%
1. For the period from February 16, 2001 (inception of offering) to November 30,
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. Net of voluntary waiver of transfer agent fees.
5. Net of voluntary reimbursement of expenses.
See accompanying Notes to Financial Statements.
15 | OPPENHEIMER SELECT MANAGERS QM ACTIVE BALANCED FUND
FINANCIAL HIGHLIGHTS Continued
Six Months Year
Ended Ended
May 31, 2003 Nov. 30,
CLASS N (Unaudited) 2002 2001 1
- --------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $8.52 $ 9.41 $ 9.75
- --------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .03 .07 .04
Net realized and unrealized gain (loss) .47 (.87) (.38)
--------------------------------------
Total from investment operations .50 (.80) (.34)
- --------------------------------------------------------------------------------
Dividends and/or distributions to
shareholders:
Dividends from net investment income (.05) (.09) --
- --------------------------------------------------------------------------------
Net asset value, end of period $8.97 $8.52 $9.41
======================================
- --------------------------------------------------------------------------------
Total Return, at Net Asset Value 2 5.98% (8.60)% (3.49)%
- --------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $532 $322 $38
- --------------------------------------------------------------------------------
Average net assets (in thousands) $440 $147 $24
- --------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 0.65% 0.76% 0.84%
Expenses, gross 2.34% 2.22% 1.94%
Expenses, net 2.08% 4,5 2.12% 4,5 1.79% 4,5
- --------------------------------------------------------------------------------
Portfolio turnover rate 30% 73% 32%
1. For the period from March 1, 2001 (inception of offering) to November 30,
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. Net of voluntary waiver of transfer agent fees.
5. Net of voluntary reimbursement of expenses.
See accompanying Notes to Financial Statements.
16 | OPPENHEIMER SELECT MANAGERS QM ACTIVE BALANCED FUND
Period Year
Ended Ended
May 14, 2003 1 Nov. 30,
CLASS Y (Unaudited) 2002 2001 2
- ---------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $8.57 $ 9.46 $10.00
- ---------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .04 .11 .11
Net realized and unrealized gain (loss) .30 (.88) (.65)
---------------------------------
Total from investment operations .34 (.77) (.54)
- ---------------------------------------------------------------------------
Dividends and/or distributions to
shareholders:
Dividends from net investment income (.05) (.12) --
- ---------------------------------------------------------------------------
Net asset value, end of period $8.86 $8.57 $9.46
=================================
- ---------------------------------------------------------------------------
Total Return, at Net Asset Value 3 3.38% (8.27)% (5.40)%
- ---------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $-- $1 $1
- ---------------------------------------------------------------------------
Average net assets (in thousands) $ 1 $1 $1
- ---------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income 0.80% 1.24% 1.39%
Expenses, gross 3.00% 88.03% 501.51%
Expenses, net 1.86% 5,6 1.54% 5,6 1.28% 5,6
- ---------------------------------------------------------------------------
Portfolio turnover rate 30% 73% 32%
1. Class Y shares were redeemed on May 15, 2003.
2. For the period from February 16, 2001 (inception of offering) to November 30,
2001.
3. 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.
4. Annualized for periods of less than one full year.
5. Net of voluntary waiver of transfer agent fees.
6. Net of voluntary reimbursement of expenses.
See accompanying Notes to Financial Statements.
17 | OPPENHEIMER SELECT MANAGERS QM ACTIVE BALANCED FUND
NOTES TO FINANCIAL STATEMENTS Unaudited
- --------------------------------------------------------------------------------
1. Significant Accounting Policies
Oppenheimer Select Managers QM Active Balanced Fund (the Fund), a series of
Oppenheimer Select Managers, 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 income and long-term growth of capital. The
Fund's investment advisor is OppenheimerFunds, Inc. (the Manager). The Manager
has entered into a sub-advisory agreement with The Prudential Investment Corp.
(the Sub-Advisor).
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. As of May 16, 2003, the Fund no longer offered
Class Y shares.
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).
- --------------------------------------------------------------------------------
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.
18 | OPPENHEIMER SELECT MANAGERS QM ACTIVE BALANCED FUND
As of May 31, 2003, the Fund had available for federal income tax purposes
an estimated unused capital loss carryforward of $799,478. 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 May 31, 2003, the Fund did not use carryforward to offset capital
gains realized. During the year ended November 30, 2002, the Fund did not use
carryforward to offset capital gains realized.
As of November 30, 2002, the Fund had available for federal income tax purposes
unused capital loss carryforwards as follows:
Expiring
--------------------------
2009 $ 197,620
2010 412,104
----------
Total $609,724
==========
- --------------------------------------------------------------------------------
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.
The tax character of distributions paid during the six months ended May 31,
2003 and the year ended November 30, 2002 was as follows:
Six Months Ended Year Ended
May 31, 2003 November 30, 2002
--------------------------------------------------------------------------
Distributions paid from:
Ordinary income $54,843 $54,658
- --------------------------------------------------------------------------------
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.
19 | OPPENHEIMER SELECT MANAGERS QM ACTIVE BALANCED FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
2. Shares of Beneficial Interest
The Fund has authorized an unlimited number of no par value shares of
beneficial interest of each class. Transactions in shares of beneficial
interest were as follows:
Six Months Ended May 31, 2003 1 Year Ended November 30, 2002
Shares Amount Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Class A
Sold 46,503 $ 381,594 86,940 $ 763,888
Dividends and/or distributions reinvested 777 6,446 88 829
Redeemed (15,119) (123,474) (26,054) (230,388)
---------------------------------------------------------------
Net increase 32,161 $ 264,566 60,974 $ 534,329
===============================================================
- -----------------------------------------------------------------------------------------------------------------------------------
Class B
Sold 20,666 $ 169,778 54,765 $ 476,135
Dividends and/or distributions reinvested 127 1,046 100 938
Redeemed (1,091) (8,875) (11,601) (100,424)
---------------------------------------------------------------
Net increase 19,702 $ 161,949 43,264 $ 376,649
===============================================================
- -----------------------------------------------------------------------------------------------------------------------------------
Class C
Sold 24,101 $ 197,131 34,916 $ 305,372
Dividends and/or distributions reinvested -- -- 398 3,706
Redeemed (7,200) (58,613) (12,182) (101,438)
---------------------------------------------------------------
Net increase 16,901 $ 138,518 23,132 $ 207,640
===============================================================
- -----------------------------------------------------------------------------------------------------------------------------------
Class N
Sold 30,907 $ 257,027 34,605 $ 291,806
Dividends and/or distributions reinvested 251 2,080 37 348
Redeemed (9,613) (78,340) (920) (7,517)
---------------------------------------------------------------
Net increase 21,545 $ 180,767 33,722 $ 284,637
===============================================================
- -----------------------------------------------------------------------------------------------------------------------------------
Class Y
Sold -- $ -- -- $ --
Dividends and/or distributions reinvested -- -- -- --
Redeemed (100) (886) -- --
---------------------------------------------------------------
Net decrease (100) $ (886) -- $ --
===============================================================
1. For the period from December 1, 2002 to May 15, 2003 for Class Y shares.
- --------------------------------------------------------------------------------
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 May 31, 2003, were
$2,063,085 and $1,722,974, 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 which provides for a fee at an
annual rate of 0.95% of the first $300 million of average annual net assets of
the Fund and 0.90% of average annual net assets in excess of $300 million. The
Manager has voluntarily undertaken to assume certain Fund expenses. The Manager
reserves the right to amend or terminate that expense assumption at any time.
20 | OPPENHEIMER SELECT MANAGERS QM ACTIVE BALANCED FUND
- --------------------------------------------------------------------------------
Sub-Advisor Fees. The Manager retains The Prudential Investment Corporation
(the Sub-Advisor) to provide the day-to-day portfolio management of the Fund.
For the six months ended May 31, 2003, the Manager paid $13,938 to the
Sub-Advisor for 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 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
on Class A Retained by Advanced by Advanced by Advanced by Advanced by
Six Months Ended Shares Distributor Distributor 1 Distributor 1 Distributor 1 Distributor 1
- ------------------------------------------------------------------------------------------------------------------------------------
May 31, 2003 $6,195 $3,270 $381 $4,472 $1,626 $2,417
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 Deferred Contingent Deferred Contingent Deferred Contingent Deferred
Sales Charges Sales Charges Sales Charges Sales Charges
Retained by Retained by Retained by Retained by
Six Months Ended Distributor Distributor Distributor Distributor
- ------------------------------------------------------------------------------------------------------------------------------------
May 31, 2003 $-- $159 $44 $370
- --------------------------------------------------------------------------------
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 May 31, 2003, payments
under the Class A Plan totaled $1,149, all of which were paid by the
Distributor to recipients, and included $60 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.
21 | OPPENHEIMER SELECT MANAGERS QM ACTIVE BALANCED 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 May 31,
2003, were as follows:
Distributor's Aggregate
Distributor's Aggregate Unreimbursed
Total Payments Amount Retained Unreimbursed Expenses Expenses as % of
Under Plan by Distributor Under Plan Net Assets of Class
- -----------------------------------------------------------------------------------------------------------------------------
Class B Plan $2,662 $2,393 $51,400 7.84%
Class C Plan 2,877 1,475 37,792 5.38
Class N Plan 1,094 983 26,792 5.04
- --------------------------------------------------------------------------------
5. Futures Contracts
A futures contract is a commitment to buy or sell a specific amount of a
commodity or financial instrument at a particular price on a stipulated future
date at a negotiated price. Futures contracts are traded on a commodity
exchange. The Fund may buy and sell futures contracts that relate to broadly
based securities indices "financial futures" or debt securities "interest rate
futures" in order to gain exposure to or to seek to protect against changes in
market value of stock and bonds or interest rates. The Fund may also buy or
write put or call options on these futures contracts.
The Fund generally sells futures contracts to hedge against increases in
interest rates and decreases in market value of portfolio securities. The Fund
may also purchase futures contracts to gain exposure to market changes as it
may be more efficient or cost effective than actually buying fixed income
securities.
Upon entering into a futures contract, the Fund is required to deposit
either cash or securities (initial margin) in an amount equal to a certain
percentage of the contract value. Subsequent payments (variation margin) are
made or received by the Fund each day. The variation margin payments are equal
to the daily changes in the contract value and are recorded as unrealized gains
and losses. The Fund recognizes a realized gain or loss when the contract is
closed or expires.
Securities held in collateralized accounts to cover initial margin
requirements on open futures contracts are noted in the Statement of
Investments. The Statement of Assets and Liabilities reflects a receivable
and/or payable for the daily mark to market for variation margin. Realized
gains and losses are reported on the Statement of Operations as closing and
expiration of futures contracts.
Risks of entering into futures contracts (and related options) include the
possibility that there may be an illiquid market and that a change in the value
of the contract or option may not correlate with changes in the value of the
underlying securities.
As of May 31, 2003, the Fund had outstanding futures contracts as follows:
Expiration Number of Valuation as of Unrealized
Contract Description Date Contracts May 31, 2003 Appreciation
- -----------------------------------------------------------------------------------------------------------------------------------
Contracts to Purchase
Standard & Poor's 500 E-Mini 6/20/03 16 $770,600 $136,240
- --------------------------------------------------------------------------------
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 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
22 | OPPENHEIMER SELECT MANAGERS QM ACTIVE BALANCED FUND
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 May 31, 2003.
- --------------------------------------------------------------------------------
7. Fund Reorganization
In April, 2003, the Board of Trustees approved the reorganization of
Oppenheimer Select Managers QM Active Balanced Fund with and into Oppenheimer
Multiple Strategies Fund. Shareholders of Oppenheimer Select Managers QM Active
Balanced Fund will be asked to approve a reorganization whereby shareholders
would receive shares of Oppenheimer Multiple Strategies Fund. If shareholder
approval is received, it is expected that the reorganization will occur during
the third quarter of calendar 2003.
23 | OPPENHEIMER SELECT MANAGERS QM ACTIVE BALANCED 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 May 31, 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)