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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 811-06105
Oppenheimer Quest International Value Fund, Inc.
(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.
Two World Financial Center, New York, New York 10281-1008
- --------------------------------------------------------------------------------
(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 - November 30, 2003
ITEM 1. REPORTS TO STOCKHOLDERS.
FUND PERFORMANCE DISCUSSION
How has the Fund performed? Below is a discussion by OppenheimerFunds, Inc., of
the Fund's performance during its fiscal year ended November 30, 2003, followed
by a graphical comparison of the Fund's performance to appropriate broad-based
market indices. The Fund's portfolio manager is employed by its sub-advisor,
OpCap Advisors.
Management's Discussion of Fund Performance. Oppenheimer Quest International
Value Fund, Inc. Class A shares returned 24.17% (without sales charge) for the
fiscal year ended November 30, 2003. This compares to a one-year total return of
24.22% for its benchmark index, the MSCI EAFE Index. The Fund emphasized stocks
of established companies believed to be undervalued and having high returns on
capital, strong managements committed to shareholder value, and leading
competitive positions within their industries.
The Fund's intrinsic value methodology, which focuses primarily on
anticipated corporate cash flows, produced returns in line with its benchmark
index, although the lack of exposure to smaller, more aggressive companies
restricted gains. While an overweighting in consumer discretionary and financial
stocks yielded a significant impact on the upside, the Fund's avoidance of the
Japanese banking sector hurt performance as the group rallied on hopes that the
worst of Japan's financial crisis was behind it.
Meaningful individual contributors to Fund performance included German tire
manufacturer Continental AG, which has seen its restructuring efforts boosted by
successes in higher-margin automotive control systems. Meanwhile, French spirits
giant Pernod-Ricard SA turned proceeds from the sale of nonperforming brands
into cash generating assets while paying down its debt ahead of schedule.
Long-time holding SKF AB also advanced, as the Sweden-based manufacturer of
bearings capitalized on industry concentration by offering higher-margin value
added services.
In contrast, Canadian aerospace company Bombardier, Inc. was sold at a loss
on concerns that possible management turnover might derail an ongoing
restructuring. Japanese computer game maker Nintendo Co. Ltd. also declined,
having faced increasing competitive threats to its leadership in the handheld
console segment. Elsewhere, Swiss Reinsurance Co. pulled back amid a market that
rewarded more aggressive insurance stocks.
Country and sector weightings maintained a tracking error range of plus or
minus 10 percentage points relative to Index allocations. Market capitalization
weightings were the result of individual stock selection, though tended toward
stocks of larger, well-established companies. The Fund's holdings, allocations,
management, and strategies are subject to change. Investing in foreign
securities poses additional risks, such as currency fluctuations and higher
expenses.
7 | OPPENHEIMER QUEST INTERNATIONAL VALUE FUND, INC.
FUND PERFORMANCE DISCUSSION
Comparing the Fund's Performance to the Market. The graphs that follow show the
performance of a hypothetical $10,000 investment in each class of shares of the
Fund held until November 30, 2003. In the case of Class A, B and C shares,
performance is measured over a ten-year period. In the case of Class N shares,
performance is measured from inception of the Class on March 1, 2001. The Fund's
performance reflects the deduction of the maximum initial sales charge on Class
A shares, the applicable contingent deferred sales charge on Class B, Class C
and Class N shares, and reinvestments of all dividends and capital gains
distributions.
The Fund's performance is compared to the performance of the Morgan Stanley
Capital International EAFE (Europe, Australasia, Far East) Index which is a free
float-adjusted market capitalization index that is designed to measure developed
market equity performance, excluding the US & Canada. Prior to August 29,
2003, the Fund used a global investment style and compared its performance to
the Morgan Stanley Capital International (MSCI) World Index, an unmanaged index
of issuers listed on the stock exchanges of 20 foreign countries and the United
States. The Fund's performance is also compared to this Index.
Index performance reflects the reinvestment of income but does not consider
the effect of transaction costs, and none of the data in the graphs that follow
shows the effect of taxes. The Fund's performance reflects the effects of Fund
business and operating expenses. While index comparisons may be useful to
provide a benchmark for the Fund's performance, it must be noted that the Fund's
investments are not limited to the investments in the index.
8 | OPPENHEIMER QUEST INTERNATIONAL VALUE FUND, INC.
Class A Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Quest International Value Fund, Inc. (Class A)
MSCI EAFE Index
MSCI World Index
[LINE CHART]
VALUE OF INVESTMENT MSCI EAFE MSCI
DATE IN FUND INDEX WORLD INDEX
11/30/1993 9,425 10,000 10,000
02/28/1994 10,337 11,604 11,042
05/31/1994 10,221 11,516 10,926
08/31/1994 10,618 12,078 11,443
11/30/1994 10,214 11,514 10,968
02/28/1995 10,360 11,117 11,074
05/31/1995 11,260 12,118 12,122
08/31/1995 11,900 12,174 12,448
11/30/1995 12,231 12,424 13,054
02/29/1996 12,687 13,031 13,769
05/31/1996 13,405 13,452 14,347
08/31/1996 13,284 13,171 14,078
11/30/1996 14,262 13,926 15,565
02/28/1997 14,893 13,492 15,687
05/31/1997 15,763 14,509 16,868
08/31/1997 16,542 14,404 17,293
11/30/1997 16,578 13,908 17,587
02/28/1998 17,870 15,623 19,544
05/31/1998 18,984 16,164 20,320
08/31/1998 15,886 14,423 18,007
11/30/1998 18,132 16,241 21,181
02/28/1999 18,264 16,443 22,108
05/31/1999 19,615 16,917 23,071
08/31/1999 20,865 18,177 24,042
11/30/1999 22,055 19,722 25,761
02/29/2000 21,094 20,679 26,332
05/31/2000 22,567 19,865 26,288
08/31/2000 22,767 19,961 27,278
11/30/2000 22,380 17,856 23,862
02/28/2001 22,561 17,102 22,636
05/31/2001 22,575 16,500 22,440
08/31/2001 21,197 15,154 20,428
11/30/2001 20,133 14,487 20,116
02/28/2002 19,547 13,898 19,467
05/31/2002 19,724 14,963 19,694
08/31/2002 17,310 12,929 16,981
11/30/2002 17,160 12,718 17,115
02/28/2003 16,028 11,510 15,526
05/31/2003 18,428 13,176 17,839
08/31/2003 19,110 14,167 18,931
11/30/2003 21,306 15,865 20,497
Average Annual Total Return of Class A Shares of the Fund at 11/30/03
1 Year 17.03% 5 Year 2.06% 10 Year 7.86%
Class B Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Quest International Value Fund, Inc. (Class B)
MSCI EAFE Index
MSCI World Index
[LINE CHART]
VALUE OF INVESTMENT MSCI EAFE MSCI
DATE IN FUND INDEX WORLD INDEX
11/30/1993 10,000 10,000 10,000
02/28/1994 10,961 11,604 11,042
05/31/1994 10,823 11,516 10,926
08/31/1994 11,229 12,078 11,443
11/30/1994 10,784 11,514 10,968
02/28/1995 10,924 11,117 11,074
05/31/1995 11,856 12,118 12,122
08/31/1995 12,510 12,174 12,448
11/30/1995 12,846 12,424 13,054
02/29/1996 13,310 13,031 13,769
05/31/1996 14,044 13,452 14,347
08/31/1996 13,888 13,171 14,078
11/30/1996 14,906 13,926 15,565
02/28/1997 15,542 13,492 15,687
05/31/1997 16,425 14,509 16,868
08/31/1997 17,214 14,404 17,293
11/30/1997 17,233 13,908 17,587
02/28/1998 18,556 15,623 19,544
05/31/1998 19,687 16,164 20,320
08/31/1998 16,453 14,423 18,007
11/30/1998 18,764 16,241 21,181
02/28/1999 18,868 16,443 22,108
05/31/1999 20,241 16,917 23,071
08/31/1999 21,498 18,177 24,042
11/30/1999 22,719 19,722 25,761
02/29/2000 21,729 20,679 26,332
05/31/2000 23,246 19,865 26,288
08/31/2000 23,452 19,961 27,278
11/30/2000 23,053 17,856 23,862
02/28/2001 23,240 17,102 22,636
05/31/2001 23,254 16,500 22,440
08/31/2001 21,835 15,154 20,428
11/30/2001 20,739 14,487 20,116
02/28/2002 20,135 13,898 19,467
05/31/2002 20,318 14,963 19,694
08/31/2002 17,831 12,929 16,981
11/30/2002 17,676 12,718 17,115
02/28/2003 16,510 11,510 15,526
05/31/2003 18,983 13,176 17,839
08/31/2003 19,685 14,167 18,931
11/30/2003 21,948 15,865 20,497
Average Annual Total Return of Class B Shares of the Fund at 11/30/03*
1 Year 18.17% 5 Year 2.35% 10 Year 8.18%
*See Notes on page 11 for further details.
The performance information for both indices in the graphs begins on 11/30/93
for Class A, Class B and Class C, and 2/28/01 for Class N.
Past performance cannot guarantee future results. Graphs are not drawn to same
scale.
9 | OPPENHEIMER QUEST INTERNATIONAL VALUE FUND, INC.
FUND PERFORMANCE DISCUSSION
Class C Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Quest International Value Fund, Inc. (Class C)
MSCI EAFE Index
MSCI World Index
[LINE CHART]
VALUE OF INVESTMENT MSCI EAFE MSCI
DATE IN FUND INDEX WORLD INDEX
11/30/1993 10,000 10,000 10,000
02/28/1994 10,953 11,604 11,042
05/31/1994 10,823 11,516 10,926
08/31/1994 11,229 12,078 11,443
11/30/1994 10,777 11,514 10,968
02/28/1995 10,907 11,117 11,074
05/31/1995 11,831 12,118 12,122
08/31/1995 12,486 12,174 12,448
11/30/1995 12,814 12,424 13,054
02/29/1996 13,274 13,031 13,769
05/31/1996 14,007 13,452 14,347
08/31/1996 13,860 13,171 14,078
11/30/1996 14,869 13,926 15,565
02/28/1997 15,504 13,492 15,687
05/31/1997 16,397 14,509 16,868
08/31/1997 17,175 14,404 17,293
11/30/1997 17,194 13,908 17,587
02/28/1998 18,517 15,623 19,544
05/31/1998 19,647 16,164 20,320
08/31/1998 16,415 14,423 18,007
11/30/1998 18,725 16,241 21,181
02/28/1999 18,827 16,443 22,108
05/31/1999 20,199 16,917 23,071
08/31/1999 21,456 18,177 24,042
11/30/1999 22,660 19,722 25,761
02/29/2000 21,638 20,679 26,332
05/31/2000 23,116 19,865 26,288
08/31/2000 23,288 19,961 27,278
11/30/2000 22,865 17,856 23,862
02/28/2001 23,015 17,102 22,636
05/31/2001 23,001 16,500 22,440
08/31/2001 21,554 15,154 20,428
11/30/2001 20,455 14,487 20,116
02/28/2002 19,818 13,898 19,467
05/31/2002 19,977 14,963 19,694
08/31/2002 17,504 12,929 16,981
11/30/2002 17,301 12,718 17,115
02/28/2003 16,144 11,510 15,526
05/31/2003 18,516 13,176 17,839
08/31/2003 19,153 14,167 18,931
11/30/2003 21,308 15,865 20,497
Average Annual Total Return of Class C Shares of the Fund at 11/30/03*
1 Year 22.16% 5 Year 2.62% 10 Year 7.86%
Class N Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
Oppenheimer Quest International Value Fund, Inc. (Class N)
MSCI EAFE Index
MSCI World Index
[LINE CHART]
VALUE OF INVESTMENT MSCI EAFE MSCI
DATE IN FUND INDEX WORLD INDEX
03/01/2001 10,000 10,000 10,000
05/31/2001 9,976 9,648 9,913
08/31/2001 9,361 8,861 9,025
11/30/2001 8,902 8,471 8,887
02/28/2002 8,631 8,126 8,600
05/31/2002 8,709 8,749 8,700
08/31/2002 7,642 7,560 7,502
11/30/2002 7,563 7,437 7,561
02/28/2003 7,063 6,730 6,859
05/31/2003 8,112 7,704 7,881
08/31/2003 8,408 8,284 8,363
11/30/2003 9,361 9,277 9,055
Average Annual Total Return of Class N Shares of the Fund at 11/30/03*
1 Year 22.76% Since Inception -2.38%
*See Notes on page 11 for further details.
The performance information for both indices in the graphs begins on 11/30/93
for Class A, Class B and Class C, and 2/28/01 for Class N.
Past performance cannot guarantee future results. Graphs are not drawn to same
scale.
10 | OPPENHEIMER QUEST INTERNATIONAL VALUE FUND, INC.
NOTES
In reviewing performance and rankings, please remember that past performance
cannot guarantee future results. Investment return and principal value of an
investment in the Fund will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than the original cost. Because of ongoing
market volatility, the Fund's performance may be subject to substantial
fluctuations, and current performance may be more or less than the results
shown. For updates on the Fund's performance, visit our website at
www.oppenheimerfunds.com.
Total returns and the ending account values in the graphs include changes in
share price and reinvestment of dividends and capital gains distributions in a
hypothetical investment for the periods shown. The Fund's total returns shown do
not reflect the deduction of income taxes on an individual's investment. Taxes
may reduce your actual investment returns on income or gains paid by the Fund or
any gains you may realize if you sell your shares. For more complete information
about the Fund, including charges, expenses and risks, please refer to the
prospectus. To obtain a copy, call your financial advisor, call OppenheimerFunds
Distributor, Inc. at 1.800.CALL OPP (1.800.225.5677) or visit the
OppenheimerFunds website at www.oppenheimerfunds.com. Read the prospectus
carefully before you invest or send money.
OppenheimerFunds, Inc. became the Fund's advisor on 11/22/95. The Fund's
sub-advisor is OpCap Advisors, which was the Fund's advisor prior to 11/22/95.
The portfolio manager is employed by the Fund's sub-advisor.
Class A shares of the Fund were first publicly offered on 7/2/90. Unless
otherwise noted, Class A returns include the current maximum initial sales
charge of 5.75%. The Fund's maximum sales charge for Class A shares was lower
prior to 11/24/95, so actual performance may have been higher. Class A shares
are subject to a maximum annual 0.25% asset-based sales charge, which is
currently subject to a voluntary rate reduction as described in the Prospectus.
Class B shares of the Fund were first publicly offered on 9/1/93. Unless
otherwise noted, Class B returns include the applicable contingent deferred
sales charges of 5% (1-year) and 2% (5-year). Because Class B shares convert to
Class A shares 72 months after purchase, the "since inception" return for Class
B uses Class A performance for the period after conversion. Class B shares are
subject to an annual 0.75% asset-based sales charge.
Class C shares of the Fund were first publicly offered on 9/1/93. Unless
otherwise noted, Class C returns include the contingent deferred sales charge of
1% for the one-year period. Class C shares are subject to an annual 0.75%
asset-based sales charge.
Class N shares of the Fund were first publicly offered on 3/1/01. Class N shares
are offered only through retirement plans. Unless otherwise noted, Class N
returns include the contingent deferred sales charge of 1% for the one-year
period. Class N shares are subject to an annual 0.25% asset-based sales charge.
An explanation of the calculation of performance is in the Fund's Statement of
Additional Information.
11 | OPPENHEIMER QUEST INTERNATIONAL VALUE FUND, INC.
STATEMENT OF INVESTMENTS November 30, 2003
Market Value
Shares See Note 1
- -----------------------------------------------------------------------------
Common Stocks--98.6%
- -----------------------------------------------------------------------------
Consumer Discretionary--20.3%
- -----------------------------------------------------------------------------
Auto Components--1.5%
Continental AG 141,100 $ 4,904,961
- -----------------------------------------------------------------------------
Automobiles--2.6%
Bayerische Motoren
Werke AG 195,474 8,599,350
- -----------------------------------------------------------------------------
Hotels, Restaurants & Leisure--1.4%
Compass Group plc 786,100 4,725,150
- -----------------------------------------------------------------------------
Household Durables--4.9%
Electrolux AB, Cl. B 10 210
- -----------------------------------------------------------------------------
Matsushita Electric
Industrial Co. 600,500 7,736,537
- -----------------------------------------------------------------------------
Pioneer Corp. 131,100 3,351,717
- -----------------------------------------------------------------------------
Sony Corp. 143,700 4,985,939
--------------
16,074,403
- -----------------------------------------------------------------------------
Leisure Equipment & Products--3.0%
Agfa Gevaert NV 302,010 7,493,802
- -----------------------------------------------------------------------------
Shimano, Inc. 124,000 2,411,614
--------------
9,905,416
- -----------------------------------------------------------------------------
Media--2.6%
EMI Group plc 1,171,100 3,418,963
- -----------------------------------------------------------------------------
Pearson plc 466,500 5,198,969
- -----------------------------------------------------------------------------
Singapore Press
Holdings Ltd. 500 5,656
--------------
8,623,588
- -----------------------------------------------------------------------------
Textiles, Apparel & Luxury Goods--4.3%
Christian Dior SA 68,500 3,824,728
- -----------------------------------------------------------------------------
Luxottica Group SpA 426,300 7,486,236
- -----------------------------------------------------------------------------
Sanyo Shokai Ltd. 472,100 3,060,546
--------------
14,371,510
- -----------------------------------------------------------------------------
Consumer Staples--6.1%
- -----------------------------------------------------------------------------
Beverages--6.1%
Diageo plc 630,200 7,857,909
- -----------------------------------------------------------------------------
Pernod-Ricard SA 115,900 12,316,086
--------------
20,173,995
- -----------------------------------------------------------------------------
Household Products--0.0%
Kao Corp. 500 10,204
- -----------------------------------------------------------------------------
Energy--1.6%
- -----------------------------------------------------------------------------
Oil & Gas--1.6%
BP plc 750,500 5,237,208
Market Value
Shares See Note 1
- -----------------------------------------------------------------------------
Financials--32.7%
- -----------------------------------------------------------------------------
Capital Markets--0.9%
Credit Suisse Group 91,100 $ 3,023,160
- -----------------------------------------------------------------------------
Commercial Banks--17.8%
Banca Nazionale del
Lavoro SpA 1 2,777,200 6,508,254
- -----------------------------------------------------------------------------
Banco Popolare di
Verona e Novara Scrl 380,100 6,269,413
- -----------------------------------------------------------------------------
Bank of East Asia Ltd. 1,913,000 6,010,224
- -----------------------------------------------------------------------------
Barclays plc 964,300 8,499,564
- -----------------------------------------------------------------------------
BNP Paribas SA 68,000 3,831,046
- -----------------------------------------------------------------------------
Credit Agricole SA 425,018 9,272,338
- -----------------------------------------------------------------------------
DBS Group
Holdings Ltd. 861,100 6,992,894
- -----------------------------------------------------------------------------
HSBC Holdings plc,
Sponsored ADR 68,500 5,210,795
- -----------------------------------------------------------------------------
Skandinaviska
Enskilda Banken 484,849 6,320,407
--------------
58,914,935
- -----------------------------------------------------------------------------
Diversified Financial Services--6.6%
Deutsche Boerse AG 263,600 13,286,848
- -----------------------------------------------------------------------------
Hong Kong Exchanges
& Clearing Ltd. 1,670,000 3,419,003
- -----------------------------------------------------------------------------
Nomura
Securities Co. Ltd. 314,000 4,988,678
--------------
21,694,529
- -----------------------------------------------------------------------------
Insurance--7.4%
Aegon NV 755,021 10,064,430
- -----------------------------------------------------------------------------
Axa SA 255,900 4,917,160
- -----------------------------------------------------------------------------
Promina Group Ltd. 1,396,100 3,343,821
- -----------------------------------------------------------------------------
Swiss Reinsurance Co. 101,913 6,330,392
--------------
24,655,803
- -----------------------------------------------------------------------------
Health Care--6.4%
- -----------------------------------------------------------------------------
Health Care Equipment & Supplies--0.0%
Terumo Corp. 200 3,583
- -----------------------------------------------------------------------------
Pharmaceuticals--6.4%
Novartis AG 261,938 11,063,094
- -----------------------------------------------------------------------------
Sanofi-Synthelabo SA 103,600 7,016,471
- -----------------------------------------------------------------------------
Takeda Chemical
Industries Ltd. 83,000 3,182,980
--------------
21,262,545
12 | OPPENHEIMER QUEST INTERNATIONAL VALUE FUND, INC.
Market Value
Shares See Note 1
- -----------------------------------------------------------------------------
Industrials--4.9%
- -----------------------------------------------------------------------------
Machinery--4.9%
Komatsu Ltd. 298,000 $ 1,697,882
- -----------------------------------------------------------------------------
Schindler Holding AG 1 16,810 3,835,970
- -----------------------------------------------------------------------------
SKF AB, B Shares 291,000 10,648,549
------------
16,182,401
- -----------------------------------------------------------------------------
Information Technology--11.9%
- -----------------------------------------------------------------------------
Communications Equipment--2.8%
Nokia Oyj,
Sponsored ADR 518,900 9,329,822
- -----------------------------------------------------------------------------
Computers & Peripherals--0.8%
NEC Corp. 1 368,000 2,667,933
- -----------------------------------------------------------------------------
Office Electronics--2.4%
Canon, Inc. 127,400 5,886,085
- -----------------------------------------------------------------------------
Ricoh Co. Ltd. 118,000 2,152,703
------------
8,038,788
- -----------------------------------------------------------------------------
Software--5.9%
Dassault Systemes SA 188,600 8,416,766
- -----------------------------------------------------------------------------
Nintendo Co. Ltd. 81,000 6,996,530
- -----------------------------------------------------------------------------
Sage Group plc (The) 1,296,000 4,039,928
------------
19,453,224
- -----------------------------------------------------------------------------
Materials--3.9%
- -----------------------------------------------------------------------------
Chemicals--1.2%
Akzo Nobel NV 117,300 4,069,182
- -----------------------------------------------------------------------------
Metals & Mining--2.7%
Boehler-Uddeholm
AG 1 33,080 2,138,486
- -----------------------------------------------------------------------------
Rio Tinto plc 288,026 6,880,572
------------
9,019,058
- -----------------------------------------------------------------------------
Telecommunication Services--7.9%
- -----------------------------------------------------------------------------
Diversified Telecommunication Services--3.9%
Deutsche
Telekom AG 1 481,700 7,945,215
- -----------------------------------------------------------------------------
Nippon Telegraph
& Telephone Corp. 1,057 5,066,883
------------
13,012,098
- -----------------------------------------------------------------------------
Wireless Telecommunication Services--4.0%
NTT Docomo, Inc. 2,000 4,309,715
- -----------------------------------------------------------------------------
Vodafone Group plc 3,810,222 8,748,270
------------
13,057,985
Market Value
Shares See Note 1
- -----------------------------------------------------------------------------
Utilities--2.9%
- -----------------------------------------------------------------------------
Electric Utilities--1.9%
E.ON AG 112,500 $ 6,351,611
- -----------------------------------------------------------------------------
Gas Utilities--1.0%
Tokyo Gas Co. Ltd. 949,000 3,249,406
------------
Total Common Stocks
(Cost $285,851,722) 326,611,848
Principal
Amount
- -----------------------------------------------------------------------------
Short-Term Notes--2.7%
Federal Home
Loan Bank, 0.94%,
12/1/03
(Cost $9,000,000) $9,000,000 9,000,000
- -----------------------------------------------------------------------------
Total Investments,
at Value
(Cost $294,851,722) 101.3% 335,611,848
- -----------------------------------------------------------------------------
Liabilities in Excess
of Other Assets (1.3) (4,399,052)
-----------------------------
Net Assets 100.0% $331,212,796
=============================
Footnote to Statement of Investments
1. Non-income producing security.
Distribution of investments representing geographic holdings, as a percentage
of total investments at value, is as follows:
Geographic Holdings Market Value Percent
- --------------------------------------------
Japan $ 61,758,935 18.4%
Great Britain 59,817,328 17.8
France 49,594,595 14.8
Germany 41,087,985 12.3
Switzerland 24,252,616 7.2
Italy 20,263,903 6.0
Sweden 16,969,166 5.1
The Netherlands 14,133,612 4.2
Hong Kong 9,429,227 2.8
Finland 9,329,822 2.8
United States 9,000,000 2.7
Belgium 7,493,802 2.2
Singapore 6,998,550 2.1
Australia 3,343,821 1.0
Austria 2,138,486 0.6
-----------------------
Total $335,611,848 100.0%
=======================
See accompanying Notes to Financial Statements.
13 | OPPENHEIMER QUEST INTERNATIONAL VALUE FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES November 30, 2003
- -----------------------------------------------------------------------------------------------
Assets
Investments, at value (cost $294,851,722)--see accompanying statement $335,611,848
- -----------------------------------------------------------------------------------------------
Cash 360,284
- -----------------------------------------------------------------------------------------------
Unrealized appreciation on foreign currency contracts 1,257
- -----------------------------------------------------------------------------------------------
Receivables and other assets:
Investments sold 8,183,832
Interest and dividends 692,972
Shares of capital stock sold 501,856
Other 74,075
--------------
Total assets 345,426,124
- -----------------------------------------------------------------------------------------------
Liabilities
Unrealized depreciation on foreign currency contracts 18,060
- -----------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 12,902,962
Shares of capital stock redeemed 952,136
Distribution and service plan fees 134,972
Transfer and shareholder servicing agent fees 69,221
Shareholder reports 59,642
Directors' compensation 49,940
Other 26,395
--------------
Total liabilities 14,213,328
- -----------------------------------------------------------------------------------------------
Net Assets $331,212,796
==============
- -----------------------------------------------------------------------------------------------
Composition of Net Assets
Par value of shares of capital stock $ 215,141
- -----------------------------------------------------------------------------------------------
Additional paid-in capital 334,232,580
- -----------------------------------------------------------------------------------------------
Accumulated net investment loss (47,092)
- -----------------------------------------------------------------------------------------------
Accumulated net realized loss on investments and foreign currency transactions (43,937,483)
- -----------------------------------------------------------------------------------------------
Net unrealized appreciation on investments and translation of assets
and liabilities denominated in foreign currencies 40,749,650
--------------
Net Assets $331,212,796
==============
14 | OPPENHEIMER QUEST INTERNATIONAL VALUE FUND, INC.
- -----------------------------------------------------------------------------------------------
Net Asset Value Per Share
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$245,348,871 and 15,704,162 shares of capital stock outstanding) $15.62
Maximum offering price per share (net asset value plus sales charge
of 5.75% of offering price) $16.57
- -----------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $52,458,649
and 3,550,459 shares of capital stock outstanding) $14.78
- -----------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $31,076,181
and 2,109,416 shares of capital stock outstanding) $14.73
- -----------------------------------------------------------------------------------------------
Class N Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $2,329,095
and 150,039 shares of capital stock outstanding) $15.52
See accompanying Notes to Financial Statements.
15 | OPPENHEIMER QUEST INTERNATIONAL VALUE FUND, INC.
STATEMENT OF OPERATIONS For the Year Ended November 30, 2003
- -----------------------------------------------------------------------------------------------
Investment Income
Dividends (net of foreign withholding taxes of $505,534) $ 5,955,057
- -----------------------------------------------------------------------------------------------
Interest 72,272
-------------
Total investment income 6,027,329
- -----------------------------------------------------------------------------------------------
Expenses
Management fees 2,154,717
- -----------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 521,077
Class B 554,125
Class C 269,388
Class N 8,168
- -----------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 502,395
Class B 214,389
Class C 102,431
Class N 7,467
- -----------------------------------------------------------------------------------------------
Administrative fees 718,239
- -----------------------------------------------------------------------------------------------
Shareholder reports 93,629
- -----------------------------------------------------------------------------------------------
Directors' compensation 23,909
- -----------------------------------------------------------------------------------------------
Custodian fees and expenses 21,801
- -----------------------------------------------------------------------------------------------
Other 84,781
-------------
Total expenses 5,276,516
Less reduction to custodian expenses (838)
Less voluntary waiver of transfer and shareholder servicing agent fees--Class A (3,683)
Less voluntary waiver of transfer and shareholder servicing agent fees--Class B (18,987)
Less voluntary waiver of transfer and shareholder servicing agent fees--Class C (8,562)
Less voluntary waiver of transfer and shareholder servicing agent fees--Class N (1,914)
-------------
Net expenses 5,242,532
- -----------------------------------------------------------------------------------------------
Net Investment Income 784,797
- -----------------------------------------------------------------------------------------------
Realized and Unrealized Gain
Net realized gain on:
Investments 7,556,643
Foreign currency transactions 14,775,923
-------------
Net realized gain 22,332,566
- -----------------------------------------------------------------------------------------------
Net change in unrealized appreciation on:
Investments 25,037,604
Translation of assets and liabilities denominated in foreign currencies 15,587,202
-------------
Net change in unrealized appreciation 40,624,806
- -----------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations $63,742,169
=============
See accompanying Notes to Financial Statements.
16 | OPPENHEIMER QUEST INTERNATIONAL VALUE FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
Year Ended November 30, 2003 2002
- -----------------------------------------------------------------------------------------------------------------
Operations
Net investment income (loss) $ 784,797 $ (521,364)
- -----------------------------------------------------------------------------------------------------------------
Net realized gain (loss) 22,332,566 (55,344,923)
- -----------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation 40,624,806 (16,633)
------------------------------
Net increase (decrease) in net assets resulting from operations 63,742,169 (55,882,920)
- -----------------------------------------------------------------------------------------------------------------
Capital Stock Transactions
Net increase (decrease) in net assets resulting from capital stock transactions:
Class A 7,457,176 (12,002,972)
Class B (23,417,899) (14,897,108)
Class C (1,075,505) (6,710,033)
Class N 769,358 807,780
- -----------------------------------------------------------------------------------------------------------------
Net Assets
Total increase (decrease) 47,475,299 (88,685,253)
- -----------------------------------------------------------------------------------------------------------------
Beginning of period 283,737,497 372,422,750
------------------------------
End of period [including accumulated net investment
loss of $47,092 and $46,895, respectively] $331,212,796 $283,737,497
==============================
See accompanying Notes to Financial Statements.
17 | OPPENHEIMER QUEST INTERNATIONAL VALUE FUND, INC.
FINANCIAL HIGHLIGHTS
Class A Year Ended November 30, 2003 2002 2001 2000 1999
- -------------------------------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $12.58 $14.76 $17.93 $22.05 $19.37
- -------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .06 .02 .02 .10 (.02)
Net realized and unrealized gain (loss) 2.98 (2.20) (1.62) .24 3.90
---------------------------------------------------------------------
Total from investment operations 3.04 (2.18) (1.60) .34 3.88
- -------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- -- -- (.22) --
Dividends in excess of net investment income -- -- -- -- (.09)
Distributions from net realized gain -- -- (1.57) (4.24) (1.11)
---------------------------------------------------------------------
Total dividends and/or distributions
to shareholders -- -- (1.57) (4.46) (1.20)
- -------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $15.62 $12.58 $14.76 $17.93 $22.05
=====================================================================
- -------------------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 1 24.17% (14.77)% (10.04)% 1.47% 21.64%
- -------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $245,349 $191,096 $238,882 $285,836 $346,067
- -------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $203,459 $216,977 $269,338 $325,539 $318,701
- -------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 2
Net investment income (loss) 0.51% 0.09% 0.12% 0.47% (0.11)%
Total expenses 1.59% 3,4 1.66% 3,4 1.71% 3 1.70% 3 1.75% 3
- -------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 150% 75% 71% 104% 78%
<FN>
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. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the redemption of Fund shares.
2. Annualized for periods of less than one full year.
3. Reduction to custodian expenses less than 0.01%.
4. Voluntary waiver of transfer agent fees less than 0.01%.
</FN>
See accompanying Notes to Financial Statements.
18 | OPPENHEIMER QUEST INTERNATIONAL VALUE FUND, INC.
Class B Year Ended November 30, 2003 2002 2001 2000 1999
- -------------------------------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $12.00 $14.18 $17.38 $21.50 $18.92
- -------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.15) (.11) (.08) (.02) (.13)
Net realized and unrealized gain (loss) 2.93 (2.07) (1.55) .25 3.82
---------------------------------------------------------------------
Total from investment operations 2.78 (2.18) (1.63) .23 3.69
- -------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- -- -- (.11) --
Dividends in excess of net investment income -- -- -- -- -- 1
Distributions from net realized gain -- -- (1.57) (4.24) (1.11)
---------------------------------------------------------------------
Total dividends and/or distributions
to shareholders -- -- (1.57) (4.35) (1.11)
- -------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $14.78 $12.00 $14.18 $17.38 $21.50
=====================================================================
- -------------------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 2 23.17% (15.37)% (10.57)% 0.91% 21.05%
- -------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $52,459 $65,144 $ 93,590 $114,765 $143,632
- -------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $55,378 $79,996 $105,464 $128,686 $134,690
- -------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment loss (0.31)% (0.63)% (0.48)% (0.09)% (0.61)%
Total expenses 2.47% 2.36% 2.31% 2.24% 2.25%
Expenses after expense reimbursement or fee
waiver and reduction to custodian expenses 2.44% N/A 4,5 N/A 4 N/A 4 N/A 4
- -------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 150% 75% 71% 104% 78%
<FN>
1. Less than $0.005 per share.
2. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the redemption of Fund shares.
3. Annualized for periods of less than one full year.
4. Reduction to custodian expenses less than 0.01%.
5. Voluntary waiver of transfer agent fees less than 0.01%.
</FN>
See accompanying Notes to Financial Statements.
19 | OPPENHEIMER QUEST INTERNATIONAL VALUE FUND, INC.
FINANCIAL HIGHLIGHTS Continued
Class C Year Ended November 30, 2003 2002 2001 2000 1999
- -------------------------------------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $11.96 $14.14 $17.33 $21.46 $18.89
- -------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.05) (.12) (.07) (.02) (.12)
Net realized and unrealized gain (loss) 2.82 (2.06) (1.55) .25 3.80
---------------------------------------------------------------------
Total from investment operations 2.77 (2.18) (1.62) .23 3.68
- -------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- -- -- (.12) --
Dividends in excess of net investment income -- -- -- -- -- 1
Distributions from net realized gain -- -- (1.57) (4.24) (1.11)
---------------------------------------------------------------------
Total dividends and/or distributions
to shareholders -- -- (1.57) (4.36) (1.11)
- -------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $14.73 $11.96 $14.14 $17.33 $21.46
=====================================================================
- -------------------------------------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 2 23.16% (15.42)% (10.54)% 0.91% 21.02%
- -------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $31,076 $26,361 $39,429 $45,179 $57,925
- -------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $26,952 $33,801 $42,552 $51,539 $52,348
- -------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment loss (0.33)% (0.63)% (0.48)% (0.10)% (0.61)%
Total expenses 2.46% 2.37% 2.31% 2.24% 2.25%
Expenses after expense reimbursement or fee
waiver and reduction to custodian expenses 2.43% N/A 4,5 N/A 4 N/A 4 N/A 4
- -------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 150% 75% 71% 104% 78%
<FN>
1. Less than $0.005 per share.
2. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the redemption of Fund shares.
3. Annualized for periods of less than one full year.
4. Reduction to custodian expenses less than 0.01%.
5. Voluntary waiver of transfer agent fees less than 0.01%.
</FN>
See accompanying Notes to Financial Statements.
20 | OPPENHEIMER QUEST INTERNATIONAL VALUE FUND, INC.
Class N Year Ended November 30, 2003 2002 2001 1
- -------------------------------------------------------------------------------------------
Per Share Operating Data
Net asset value, beginning of period $12.54 $14.76 $16.58
- -------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .01 (.01) -- 2
Net realized and unrealized gain (loss) 2.97 (2.21) (1.82)
---------------------------------------
Total from investment operations 2.98 (2.22) (1.82)
- -------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income -- -- --
Dividends in excess of net investment income -- -- --
Distributions from net realized gain -- -- --
---------------------------------------
Total dividends and/or distributions
to shareholders -- -- --
- -------------------------------------------------------------------------------------------
Net asset value, end of period $15.52 $12.54 $14.76
=======================================
- -------------------------------------------------------------------------------------------
Total Return, at Net Asset Value 3 23.76% (15.04)% (10.98)%
- -------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $2,329 $1,137 $522
- -------------------------------------------------------------------------------------------
Average net assets (in thousands) $1,637 $1,058 $275
- -------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income (loss) 0.17% (0.02)% (0.05)%
Total expenses 2.04% 1.90% 1.81%
Expenses after expense reimbursement or fee
waiver and reduction to custodian expenses 1.92% N/A 5,6 N/A 5
- -------------------------------------------------------------------------------------------
Portfolio turnover rate 150% 75% 71%
<FN>
1. For the period from March 1, 2001 (inception of offering) to November 30,
2001.
2. Less than $0.005 per share.
3. 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. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the redemption of Fund shares.
4. Annualized for periods of less than one full year.
5. Reduction to custodian expenses less than 0.01%.
6. Voluntary waiver of transfer agent fees less than 0.01%.
</FN>
See accompanying Notes to Financial Statements.
21 | OPPENHEIMER QUEST INTERNATIONAL VALUE FUND, INC.
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1. Significant Accounting Policies
Oppenheimer Quest International Value Fund, Inc. (the Fund), formerly
Oppenheimer Quest Global Value Fund, Inc., 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 capital appreciation. The
Fund's investment advisor is OppenheimerFunds, Inc. (the Manager). The Manager
has entered into a sub-advisory agreement with OpCap Advisors.
The Fund offers Class A, Class B, Class C and Class N shares. Class A shares
are sold at their offering price, which is normally net asset value plus a
front-end sales charge. Class B, Class C and Class N shares are sold without a
front-end sales charge but may be subject to a contingent deferred sales charge
(CDSC). Class N shares are sold only through retirement plans. Retirement plans
that offer Class N shares may impose charges on those accounts. All classes of
shares have identical rights and voting privileges. Earnings, net assets and
net asset value per share may differ by minor amounts due to each class having
its own expenses directly attributable to that class. Classes A, B, C and N
have separate distribution and/or service plans. Class B shares will
automatically convert to Class A shares six years after the date of purchase.
The Fund assesses a 2% fee on the proceeds of fund shares that are redeemed
(either by selling or exchanging to another Oppenheimer fund) within 30 days of
their purchase. The fee, which is retained by the Fund, is accounted for as an
addition to paid-in capital.
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. Securities traded on NASDAQ are valued based on the closing
price provided by NASDAQ 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 using 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 Fund's accounting records 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.
22 | OPPENHEIMER QUEST INTERNATIONAL VALUE FUND, INC.
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.
- --------------------------------------------------------------------------------
Allocation of Income, Expenses, Gains and Losses. Income, expenses (other than
those attributable to a specific class), gains and losses are allocated on a
daily basis 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 comply with provisions of the Internal
Revenue Code applicable to regulated investment companies and to distribute
substantially all of its investment company 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.
The tax components of capital shown in the table below represent distribution
requirements the Fund must satisfy under the income tax regulations, losses the
Fund may be able to offset against income and gains realized in future years
and unrealized appreciation or depreciation of securities and other investments
for federal income tax purposes.
Net Unrealized
Appreciation
Based on Cost of
Undistributed Undistributed Accumulated Securities and Other
Net Investment Long-Term Loss Investments for Federal
Income Gains Carryforward 1,2,3 Income Tax Purposes
--------------------------------------------------------------------------
$-- $-- $43,073,298 $39,885,463
1. As of November 30, 2003, the Fund had $42,936,952 of net capital loss
carryforward available to offset future realized capital gains, if any, and
thereby reduce future taxable gain distributions. As of November 30, 2003,
details of the capital loss carryforward were as follows:
Expiring
-----------------------
2010 $42,936,952
2. During the fiscal year November 30, 2003, the Fund utilized $20,399,474 of
capital loss carryforward to offset capital gains realized in that fiscal year.
During the fiscal year November 30, 2002, the Fund did not utilize any capital
loss carryforwards.
3. As of November 30, 2003, the Fund had $52,431 of post-October losses
available to offset future realized capital gains, if any. Such losses, if
unutilized, will expire in 2012. Additionally, the Fund had $83,915 of
post-October foreign currency losses which were deferred.
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. Accordingly,
the following amounts have been reclassified for November 30, 2003. Net assets
of the Fund were unaffected by the reclassifications.
23 | OPPENHEIMER QUEST INTERNATIONAL VALUE FUND, INC.
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. Significant Accounting Policies Continued
Reduction Reduction to Reduction to
to Paid-in Accumulated Net Accumulated Net Realized
Capital Investment Income Loss on Investments
---------------------------------------------------------
$491,091 $784,994 $1,276,085
No distributions were paid during the years ended November 30, 2003 and
November 30, 2002.
The aggregate cost of securities and other investments and the composition of
unrealized appreciation and depreciation of securities and other investments
for federal income tax purposes as of November 30, 2003 are noted below. The
primary difference between book and tax appreciation or depreciation of
securities and other investments, if applicable, is attributable to the tax
deferral of losses or tax realization of financial statement unrealized gain or
loss.
Federal tax cost of securities $295,732,712
Federal tax cost of other investments 3,586,722
------------
Total federal tax cost $299,319,434
============
Gross unrealized appreciation $ 43,674,601
Gross unrealized depreciation (3,789,138)
------------
Net unrealized appreciation $ 39,885,463
============
- --------------------------------------------------------------------------------
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 year ended
November 30, 2003, the Fund's projected benefit obligations were increased by
$1,422 and payments of $1,222 were made to retired directors, resulting in an
accumulated liability of $47,093 as of November 30, 2003.
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, deferred amounts are treated as though equal dollar
amounts had been invested in shares of the Fund or are invested in other
Oppenheimer funds 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.
Amounts will be deferred until distributed in accordance to the Plan.
- --------------------------------------------------------------------------------
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. Income and capital gain distributions, if
any, are declared and paid annually.
- --------------------------------------------------------------------------------
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
24 | OPPENHEIMER QUEST INTERNATIONAL VALUE FUND, INC.
the fair market value of the securities received. Interest income, which
includes accretion of discount and amortization of premium, is accrued as
earned.
- --------------------------------------------------------------------------------
Expense Offset Arrangement. The reduction of custodian fees represents earnings
on cash balances maintained by the Fund.
- --------------------------------------------------------------------------------
Security Transactions. Security transactions are recorded on the trade date.
Realized gains and losses on securities sold are determined on the basis of
identified cost.
- --------------------------------------------------------------------------------
Other. The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts
of assets and liabilities and disclosure of contingent assets and liabilities
at the date of the financial statements and the reported amounts of income and
expenses during the reporting period. Actual results could differ from those
estimates.
- --------------------------------------------------------------------------------
2. Shares of Capital Stock
The Fund has authorized 100 million shares of $0.01 par value capital stock in
the aggregate to be apportioned among each class of shares. Transactions in
shares of capital stock were as follows:
Year Ended November 30, 2003 Year Ended November 30, 2002
Shares Amount Shares Amount
- -------------------------------------------------------------------------------------------------
Class A
Sold 8,676,830 $ 110,860,888 5,615,835 $ 74,957,354
Redeemed (8,165,976) (103,403,712) (6,603,328) (86,960,326)
---------------------------------------------------------------------
Net increase (decrease) 510,854 $ 7,457,176 (987,493) $(12,002,972)
=====================================================================
- -------------------------------------------------------------------------------------------------
Class B
Sold 706,097 $ 8,800,023 789,659 $ 10,548,463
Redeemed (2,585,927) (32,217,922) (1,959,335) (25,445,571)
---------------------------------------------------------------------
Net decrease (1,879,830) $ (23,417,899) (1,169,676) $(14,897,108)
=====================================================================
- -------------------------------------------------------------------------------------------------
Class C
Sold 499,414 $ 6,222,943 545,413 $ 7,274,366
Redeemed (593,850) (7,298,448) (1,130,158) (13,984,399)
---------------------------------------------------------------------
Net decrease (94,436) $ (1,075,505) (584,745) $ (6,710,033)
=====================================================================
- -------------------------------------------------------------------------------------------------
Class N
Sold 116,973 $ 1,569,327 119,359 $ 1,683,121
Redeemed (57,645) (799,969) (64,029) (875,341)
---------------------------------------------------------------------
Net increase 59,328 $ 769,358 55,330 $ 807,780
=====================================================================
25 | OPPENHEIMER QUEST INTERNATIONAL VALUE FUND, INC.
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
3. Purchases and Sales of Securities
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations, for the year ended November 30, 2003, were
$421,926,003 and $440,176,945, 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 0.75% of the first $400 million of average annual net assets of
the Fund, 0.70% of the next $400 million, and 0.65% of average annual net
assets in excess of $800 million. Effective January 1, 2004, the investment
advisory agreement with the Fund will provide for a fee at an annual rate of
0.75% of the first $400 million of average annual net assets of the Fund, 0.65%
of the next $400 million, 0.60% of the next $400 million and 0.55% of average
annual net assets in excess of $1.2 billion.
- --------------------------------------------------------------------------------
Administration Fees. Administration fees paid to the Manager were in accordance
with the administration agreement with the Fund which provides for a fee of
0.25% of the average annual net assets of the Fund. During the year ended
November 30, 2003, the Fund paid $718,239 to the Manager for administration
services.
- --------------------------------------------------------------------------------
Sub-Advisor Fees. The Manager retains OpCap Advisors (the Sub-Advisor) to
provide the day-to-day portfolio management of the Fund. For the year ended
November 30, 2003, the Manager paid $775,368 to the Sub-Advisor for its
services to the Fund.
- --------------------------------------------------------------------------------
Transfer Agent Fees. OppenheimerFunds Services (OFS), a division of the
Manager, acts as the transfer and shareholder servicing agent for the Fund. The
Fund pays OFS a per account fee. For the year ended November 30, 2003, the Fund
paid $761,475 to OFS for services to the Fund.
OFS has voluntarily agreed to limit transfer and shareholder servicing agent
fees for all classes, up to an annual rate of 0.35% of average net assets per
class. This undertaking may be amended or withdrawn at any time.
- --------------------------------------------------------------------------------
Distribution and Service Plan (12b-1) Fees. Under its General Distributor's
Agreement with the Manager, OppenheimerFunds Distributor, Inc. (the
Distributor) acts as the Fund's principal underwriter in the continuous public
offering of the different classes of shares of the Fund.
The compensation paid to (or retained by) the Distributor from the sale of
shares or on the redemption of shares is shown in the table below for the
period indicated.
Aggregate Class A Concessions Concessions Concessions Concessions
Front-End Front-End on Class A on Class B on Class C on Class N
Sales Charges Sales Charges Shares Shares Shares Shares
on Class A Retained by Advanced by Advanced by Advanced by Advanced by
Year Ended Shares Distributor Distributor 1 Distributor 1 Distributor 1 Distributor 1
- ----------------------------------------------------------------------------------------------------------------
November 30, 2003 $287,037 $62,411 $94,479 $193,078 $41,273 $10,353
<FN>
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.
</FN>
26 | OPPENHEIMER QUEST INTERNATIONAL VALUE FUND, INC.
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
Year Ended Distributor Distributor Distributor Distributor
- --------------------------------------------------------------------------------
November 30, 2003 $2,075 $135,211 $4,371 $5,382
- --------------------------------------------------------------------------------
Distribution and Service Plan for Class A Shares. The Fund has adopted a
Distribution and Service Plan for Class A shares. Under the plan the Fund paid
an asset-based sales charge to the Distributor at an annual rate equal to 0.15%
of average annual net assets representing Class A shares purchased before
September 1, 1993 and 0.10% of average annual net assets representing Class A
shares purchased on or before December 31, 2002. Beginning January 1, 2003, the
Board of Directors set the annual rate at zero for all Class A shares. The Fund
also pays a service fee to the Distributor of 0.25% of the average annual net
assets of Class A shares. For the year ended November 30, 2003, expense under
the Class A plan totaled $521,077, all of which were paid by the Distributor to
recipients, which included $6,534 retained by the Distributor and $23,957 which
was paid to an affiliate of the Manager.
- --------------------------------------------------------------------------------
Distribution and Service Plans for Class B, Class C and Class N Shares. The
Fund has adopted Distribution and Service Plans for Class B, Class C and Class
N shares. Under the plans, the Fund pays the Distributor an annual asset-based
sales charge of 0.75% per year on Class B shares and on Class C shares and the
Fund pays the Distributor an annual asset-based sales charge of 0.25% per year
on Class N shares. The Distributor also receives a service fee of 0.25% per
year under each plan.
Distribution fees paid to the Distributor for the year ended November 30, 2003,
were as follows:
Distributor's
Distributor's Aggregate
Aggregate Uncompensated
Uncompensated Expenses as %
Total Payments Amount Retained Expenses of Net Assets
Under Plan by Distributor Under Plan of Class
- ------------------------------------------------------------------------------
Class B Plan $554,125 $400,789 $473,211 0.90%
Class C Plan 269,388 41,215 963,336 3.10
Class N Plan 8,168 6,234 44,827 1.92
- --------------------------------------------------------------------------------
5. Foreign Currency Contracts
A foreign currency contract is a commitment to purchase or sell a foreign
currency at a future date, at a negotiated rate. The Fund may enter into
foreign currency contracts to settle specific purchases or sales of securities
denominated in a foreign currency and for protection from adverse exchange rate
fluctuation. Risks to the Fund include the potential inability of the
counterparty to meet the terms of the contract.
27 | OPPENHEIMER QUEST INTERNATIONAL VALUE FUND, INC.
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
5. Foreign Currency Contracts Continued
The net U.S. dollar value of foreign currency underlying all contractual
commitments held by the Fund and the resulting unrealized appreciation or
depreciation are determined using prevailing foreign currency exchange rates.
Unrealized appreciation and depreciation on foreign currency contracts are
reported in the Statement of Assets and Liabilities as a receivable or payable
and in the Statement of Operations with the change in unrealized appreciation
or depreciation.
The Fund may realize a gain or loss upon the closing or settlement of the
foreign transaction. Contracts closed or settled with the same broker are
recorded as net realized gain or loss. Such realized gains and losses are
reported with all other foreign currency gains and losses in the Statement of
Operations.
As of November 30, 2003, the Fund had outstanding foreign currency contracts as
follows:
Contract Valuation
Expiration Amount as of Unrealized Unrealized
Contract Description Dates (000s) Nov. 30, 2003 Appreciation Depreciation
- --------------------------------------------------------------------------------------------------
Contracts to Purchase
Euro [EUR] 12/1/03 307EUR $ 367,615 $ 1,257 $ --
Contracts to Sell
Japanese Yen [JPY] 12/1/03 352,557JPY 3,219,108 -- 18,060
-----------------------
Total unrealized appreciation
and depreciation $ 1,257 $ 18,060
=======================
- --------------------------------------------------------------------------------
6. Borrowing and Lending Arrangements
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 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 year
ended or at November 30, 2003.
28 | OPPENHEIMER QUEST INTERNATIONAL VALUE FUND, INC.
INDEPENDENT AUDITORS' REPORT
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Board of Directors and Shareholders of
Oppenheimer Quest International Value Fund, Inc.:
We have audited the accompanying statement of assets and liabilities of
Oppenheimer Quest International Value Fund, Inc., formerly Oppenheimer Quest
Global Value Fund, Inc., including the statement of investments, as of November
30, 2003, and the related statement of operations for the year then ended, the
statements of changes in net assets for each of the two years in the period
then ended, and the financial highlights for each of the four years in the
period then ended. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits. The financial highlights for the year ended November 30, 1999, were
audited by other auditors whose report dated December 21, 1999, expressed an
unqualified opinion on this information.
We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures
included confirmation of securities owned as of November 30, 2003, by
correspondence with the custodian and brokers or by other appropriate auditing
procedures where replies from brokers were not received. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Oppenheimer Quest Inter- national Value Fund, Inc. as of November 30, 2003, the
results of its operations for the year then ended, the changes in its net
assets for each of the two years in the period then ended, and the financial
highlights for each of the four years in the period then ended, in conformity
with accounting principles generally accepted in the United States of America.
KPMG LLP
Denver, Colorado
December 19, 2003
29 | OPPENHEIMER QUEST INTERNATIONAL VALUE FUND, INC.
FEDERAL INCOME TAX INFORMATION Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
In early 2004, if applicable, shareholders of record will receive information
regarding all dividends and distributions paid to them by the Fund during
calendar year 2003. Regulations of the U.S. Treasury Department require the
Fund to report this information to the Internal Revenue Service.
A portion, if any, of the dividends paid by the Fund during the fiscal year
ended November 30, 2003 which are not designated as capital gain distributions
are eligible for lower individual income tax rates to the extent that the Fund
has received qualified dividend income as stipulated by recent tax legislation.
$6,460,591 of the Fund's fiscal year taxable income may be eligible for the
lower individual income tax rates. In early 2004, shareholders of record will
receive information regarding the percentage of distributions that are eligible
for lower individual income tax rates.
The foregoing information is presented to assist shareholders in reporting
distributions received from the Fund to the Internal Revenue Service. Because
of the complexity of the federal regulations which may affect your individual
tax return and the many variations in state and local tax regulations, we
recommend that you consult your tax advisor for specific guidance.
PORTFOLIO PROXY VOTING
POLICIES AND PROCEDURES Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which
the Fund votes proxies relating to securities ("portfolio proxies") held by the
Fund. A description of the Fund's Portfolio Proxy Voting Policies and
Procedures is available (i) without charge, upon request, by calling the Fund
toll-free at 1.800.225.5677, (ii) on the Fund's website at
www.oppenheimerfunds.com, and (iii) on the SEC's website at www.sec.gov. In
addition, the Fund will be required to file new Form N-PX, with its complete
proxy voting record for the 12 months ended June 30th, no later than August
31st of each year. The first such filing is due no later than August 31, 2004,
for the twelve months ended June 30, 2004. Once filed, the Fund's Form N-PX
filing will be available (i) without charge, upon request, by calling the Fund
toll-free at 1.800.225.5677, and (ii) on the SEC's website at www.sec.gov.
30 | OPPENHEIMER QUEST INTERNATIONAL VALUE FUND, INC.
DIRECTORS AND OFFICERS Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------
Name, Position(s) Held with Principal Occupation(s) During Past 5 Years; Other Trusteeships/Directorships Held
Fund, Length of Service, Age by Director; Number of Portfolios in Fund Complex Currently Overseen by Director
INDEPENDENT The address of each Director in the chart below is 6803 S. Tucson Way,
DIRECTORS Centennial, CO 80112-3924. Each Director serves for an indefinite term, until
his or her resignation, retirement, death or removal.
Thomas W. Courtney, Principal of Courtney Associates, Inc. (venture capital firm); former General
Chairman of the Partner of Trivest Venture Fund (private venture capital fund); former President
Board of Directors, of Investment Counseling Federated Investors, Inc.; Trustee of the following
Director (since 1990) open-end investment companies: Cash Assets Trust, PIMCO ADVISORS VIT, Tax Free
Age: 70 Trust of Arizona and 4 funds for the Hawaiian Tax Free Trust. Oversees 10
portfolios in the OppenheimerFunds complex.
Paul Y. Clinton, Principal of Clinton Management Associates, a financial and venture capital
Director (since 1990) consulting firm; Trustee of the following open-end investment companies: Trustee
Age: 71 of Capital Cash Management Trust, Prime Cash Fund, PIMCO ADVISORS VIT and
Narragansett Insured Tax-Free Income Fund. Oversees 10 portfolios in the
OppenheimerFunds complex.
Robert G. Galli, A trustee or director of other Oppenheimer funds. Oversees 35 portfolios in the
Director (since 1998) OppenheimerFunds complex.
Age: 70
Lacy B. Herrmann, Chairman and Chief Executive Officer of Aquila Management Corporation, the
Director (since 1996) sponsoring organization and manager, administrator and/or sub-adviser to the
Age: 74 following open-end investment companies, and Chairman of the Board of Trustees
and President of each: Churchill Cash Reserves Trust, Aquila-Cascadia Equity
Fund, Cash Assets Trust, Prime Cash Fund, Narragansett Insured Tax-Free Income
Fund, Tax-Free Fund For Utah, Churchill Tax-Free Fund of Kentucky, Tax-Free Fund
of Colorado, Tax-Free Trust of Oregon, Tax-Free Trust of Arizona, Hawaiian
Tax-Free Trust, and Aquila Rocky Mountain Equity Fund and PIMCO ADVISORS VIT;
Vice President, Director, Secretary, and formerly Treasurer of Aquila
Distributors, Inc., distributor of the above funds; President and Chairman of
the Board of Trustees of Capital Cash Management Trust ("CCMT"), and an Officer
and Trustee/Director of its predecessors; President and Director of STCM
Management Company, Inc., sponsor and adviser to CCMT; Chairman, President and a
Director of InCap Management Corporation, formerly sub-adviser and administrator
of Prime Cash Fund and Short Term Asset Reserves; Trustee Emeritus of Brown
University. Oversees 10 portfolios in the OppenheimerFunds complex.
Brian Wruble, Special Limited Partner (since January 1999) of Odyssey Investment Partners, LLC
Director (since 2001) (private equity investment); General Partner (since September 1996) of Odyssey
Age: 60 Partners, L.P. (hedge fund in distribution since 1/1/97); Board of Governing
Trustees (since August 1990) of The Jackson Laboratory (non-profit); Trustee
(since May 1992) of Institute for Advanced Study (educational institute);
formerly Trustee (May 2000 - 2002) of Research Foundation of AIMR (investment
research, non-profit); Governor, Jerome Levy Economics Institute of Bard College
(economics research) (August 1990-September 2001); Director of Ray & Berendtson,
Inc. (executive search firm) (May 2000-April 2002). Oversees 10 portfolios in
the OppenheimerFunds complex.
31 | OPPENHEIMER QUEST INTERNATIONAL VALUE FUND, INC.
DIRECTORS AND OFFICERS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------
OFFICERS The address of the Officers in the chart below is as follows: for Messrs.
Murphy and Zack, Two World Financial Center, 225 Liberty Street, New York, NY
10281-1008, for Mr. Wixted, 6803 S. Tucson Way, Centennial, CO 80112-3924. Each
Officer serves for an annual term or until his or her earlier resignation,
death or removal.
John V. Murphy, Chairman, Chief Executive Officer and director (since June 2001) and President
President (since 2001) (since September 2000) of the Manager; President and a director or trustee of
Age: 54 other Oppenheimer funds; President and a director (since July 2001) of
Oppenheimer Acquisition Corp. (the Manager's parent holding company) and of
Oppenheimer Partnership Holdings, Inc. (a holding company subsidiary of the
Manager); a director (since November 2001) of OppenheimerFunds Distributor, Inc.
(a subsidiary of the Manager); Chairman and a director (since July 2001) of
Shareholder Services, Inc. and of Shareholder Financial Services, Inc. (transfer
agent subsidiaries of the Manager); President and a director (since July 2001)
of OppenheimerFunds Legacy Program (a charitable trust program established by
the Manager); a director of the investment advisory subsidiaries of the Manager:
OFI Institutional Asset Management, Inc. and Centennial Asset Management
Corporation (since November 2001), HarbourView Asset Management Corporation and
OFI Private Investments, Inc. (since July 2001); President (since November 1,
2001) and a director (since July 2001) of Oppenheimer Real Asset Management,
Inc.; a director (since November 2001) of Trinity Investment Management Corp.
and Tremont Advisers, Inc. (Investment advisory affiliates of the Manager);
Executive Vice President (since February 1997) of Massachusetts Mutual Life
Insurance Company (the Manager's parent company); a director (since June 1995)
of DLB Acquisition Corporation (a holding company that owns the shares of David
L. Babson & Company, Inc.); formerly, Chief Operating Officer (September
2000-June 2001) of the Manager; President and trustee (November 1999-November
2001) of MML Series Investment Fund and MassMutual Institutional Funds (open-end
investment companies); a director (September 1999-August 2000) of C.M. Life
Insurance Company; President, Chief Executive Officer and director (September
1999-August 2000) of MML Bay State Life Insurance Company; a director (June
1989-June 1998) of Emerald Isle Bancorp and Hibernia Savings Bank (a
wholly-owned subsidiary of Emerald Isle Bancorp). Oversees 72 portfolios as
Trustee/Officer and 10 portfolios as Officer in the OppenheimerFunds complex.
Brian W. Wixted, Senior Vice President and Treasurer (since March 1999) of the Manager; Treasurer
Treasurer (since 1999) (since March 1999) of HarbourView Asset Management Corporation, Shareholder
Age: 44 Services, Inc., Oppenheimer Real Asset Management Corporation, Shareholder
Financial Services, Inc., Oppenheimer Partnership Holdings, Inc., OFI Private
Investments, Inc. (since March 2000), OppenheimerFunds International Ltd. and
OppenheimerFunds plc (since May 2000) and OFI Institutional Asset Management,
Inc. (since November 2000) (offshore fund management subsidiaries of the
Manager); Treasurer and Chief Financial Officer (since May 2000) of Oppenheimer
Trust Company (a trust company subsidiary of the Manager); Assistant Treasurer
(since March 1999) of Oppenheimer Acquisition Corp. and OppenheimerFunds Legacy
Program (since April 2000); formerly Principal and Chief Operating Officer
(March 1995-March 1999), Bankers Trust Company-Mutual Fund Services Division. An
officer of 82 portfolios in the OppenheimerFunds complex.
32 | OPPENHEIMER QUEST INTERNATIONAL VALUE FUND, INC.
Robert G. Zack, Senior Vice President (since May 1985) and General Counsel (since February 2002)
Secretary (since 2001) of the Manager; General Counsel and a director (since November 2001) of
Age: 55 OppenheimerFunds Distributor, Inc.; Senior Vice President and General Counsel
(since November 2001) of HarbourView Asset Management Corporation; Vice
President and a director (since November 2000) of Oppenheimer Partnership
Holdings, Inc.; Senior Vice President, General Counsel and a director (since
November 2001) of Shareholder Services, Inc., Shareholder Financial Services,
Inc., OFI Private Investments, Inc., Oppenheimer Trust Company and OFI
Institutional Asset Management, Inc.; General Counsel (since November 2001) of
Centennial Asset Management Corporation; a director (since November 2001) of
Oppenheimer Real Asset Management, Inc.; Assistant Secretary and a director
(since November 2001) of OppenheimerFunds International Ltd.; Vice President
(since November 2001) of OppenheimerFunds Legacy Program; Secretary (since
November 2001) of Oppenheimer Acquisition Corp.; formerly Acting General Counsel
(November 2001-February 2002) and Associate General Counsel (May 1981-October
2001) of the Manager; Assistant Secretary of Shareholder Services, Inc. (May
1985-November 2001), Shareholder Financial Services, Inc. (November
1989-November 2001); OppenheimerFunds International Ltd. and OppenheimerFunds
plc (October 1997-November 2001). An officer of 82 portfolios in the
OppenheimerFunds complex.
The Fund's Statement of Additional Information contains additional information
about the Fund's Directors and is available without charge upon request.
33 | OPPENHEIMER QUEST INTERNATIONAL VALUE FUND, INC.
ITEM 2. CODE OF ETHICS
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
The Board of Directors of the Fund has determined that the
Fund does not have an audit committee financial expert serving on its Audit
Committee. In this regard, no member of the Audit Committee was identified as
having all of the technical attributes identified in Instruction 2(b) to Item 3
of Form N-CSR to qualify as an "audit committee financial expert," whether
through the type of specialized education or experience described in that
Instruction. The Board has concluded that while the members of the Audit
Committee collectively have the necessary attributes and experience required to
serve effectively as an Audit Committee, no single member possesses all of the
required technical attributes through the particular methods of education or
experience set forth in the Instructions to be designated as an audit committee
financial expert.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES - NOT REQUIRED
ITEM 5. NOT APPLICABLE
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 November 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.
(A) EXHIBIT ATTACHED HERETO. (ATTACH CODE OF ETHICS AS EXHIBIT)
(B) EXHIBITS ATTACHED HERETO. (ATTACH CERTIFICATIONS AS EXHIBITS)