UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-5225
OPPENHEIMER SMALL- & MID- CAP VALUE FUND
--------------------------------
(Exact name of registrant as specified in charter)
6803 SOUTH TUCSON WAY, CENTENNIAL, COLORADO 80112-3924
------------------------------------------------------
(Address of principal executive offices) (Zip code)
Robert G. Zack, Esq.
OppenheimerFunds, Inc.
Two World Financial Center, New York, New York 10281-1008
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(Name and address of agent for service)
Registrant's telephone number, including area code: (303) 768-3200
--------------
Date of fiscal year end: OCTOBER 31
----------
Date of reporting period: NOVEMBER 1, 2004 - APRIL 30, 2005
---------------------------------
ITEM 1. REPORTS TO STOCKHOLDERS.
TOP HOLDINGS AND ALLOCATIONS
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TOP TEN COMMON STOCK INDUSTRIES
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Machinery 7.5%
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Software 5.2
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Electric Utilities 5.0
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Insurance 4.9
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Real Estate 4.4
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Media 4.2
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Oil & Gas 4.1
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Chemicals 3.9
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Hotels, Restaurants & Leisure 3.7
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Textiles, Apparel & Luxury Goods 3.1
Portfolio holdings and allocations are subject to change. Percentages are as of
April 30, 2005, and are based on net assets.
TOP TEN COMMON STOCK HOLDINGS
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UnitedGlobalCom, Inc., Cl. A 2.8%
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AFC Enterprises, Inc. 2.1
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CMS Energy Corp. 2.1
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Marvel Enterprises, Inc. 1.9
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Newcastle Investment Corp. 1.8
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Novell, Inc. 1.7
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NorthStar Realty Finance Corp. 1.7
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AMETEK, Inc. 1.6
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Orbital Sciences Corp. 1.6
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Take-Two Interactive Software, Inc. 1.6
Portfolio holdings and allocations are subject to change. Percentages are as of
April 30, 2005, and are based on net assets.
For more current Fund holdings, please visit www.oppenheimerfunds.com
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9 | OPPENHEIMER SMALL- & MID- CAP VALUE FUND
TOP HOLDINGS AND ALLOCATIONS
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SECTOR ALLOCATION
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Consumer Discretionary 21.4%
Industrials 20.4
Financials 17.7
Information Technology 12.1
Utilities 8.3
Materials 7.0
Energy 5.5
Health Care 4.1
Telecommunication Services 3.5
Portfolio holdings and allocations are subject to change. Percentages are as of
April 30, 2005, and are based on total value of common stocks.
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10 | OPPENHEIMER SMALL- & MID- CAP VALUE FUND
NOTES
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Total returns include changes in share price and reinvestment of dividends and
capital gains distributions in a hypothetical investment for the periods shown.
Cumulative total returns are not annualized. The Fund's total returns shown do
not reflect the deduction of income taxes on an individual's investment. Taxes
may reduce your actual investment returns on income or gains paid by the Fund or
any gains you may realize if you sell your shares. INVESTORS SHOULD CONSIDER THE
FUND'S INVESTMENT OBJECTIVES, RISKS, AND OTHER CHARGES AND EXPENSES CAREFULLY
BEFORE INVESTING. THE FUND'S PROSPECTUS CONTAINS THIS AND OTHER INFORMATION
ABOUT THE FUND, AND MAY BE OBTAINED BY ASKING YOUR FINANCIAL ADVISOR, CALLING US
AT 1.800.525.7048 OR VISITING OUR WEBSITE AT WWW.OPPENHEIMERFUNDS.COM. READ THE
PROSPECTUS CAREFULLY BEFORE INVESTING.
The Fund's investment strategy and focus can change over time. The mention of
specific fund holdings does not constitute a recommendation by OppenheimerFunds,
Inc.
Prior to 4/28/00, the Fund's sub-advisor was OpCap Advisors, Inc., its advisor
until 11/22/95.
CLASS A shares of the Fund were first publicly offered on 1/3/89. Unless
otherwise noted, Class A returns include the current maximum initial sales
charge of 5.75%. Class A shares are subject to a maximum annual 0.25%
asset-based sales charge. The asset-based sales charge is subject to a voluntary
waiver of a portion or all of the charge as described in the Prospectus, and the
Board of Trustees has set the rate at zero.
CLASS B shares of the Fund were first publicly offered on 9/1/93. Unless
otherwise noted, Class B returns include the applicable contingent deferred
sales charges of 5% (1-year) and 2% (5-year). Because Class B shares convert to
Class A shares 72 months after purchase, the "since inception" return for Class
B does not include any contingent deferred sales charges on redemption and uses
Class A performance for the period after conversion. Class B shares are subject
to an annual 0.75% asset-based sales charge.
CLASS C shares of the Fund were first publicly offered on 9/1/93. Unless
otherwise noted, Class C returns include the contingent deferred sales charge of
1% for the 1-year period. Class C shares are subject to an annual 0.75%
asset-based sales charge.
11 | OPPENHEIMER SMALL- & MID- CAP VALUE FUND
NOTES
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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 1-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.
12 | OPPENHEIMER SMALL- & MID- CAP VALUE FUND
FUND EXPENSES
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FUND EXPENSES. As a shareholder of the Fund, you incur two types of costs: (1)
transaction costs, which may include sales charges (loads) on purchase payments,
contingent deferred sales charges on redemptions; and redemption fees, if any;
and (2) ongoing costs, including management fees; distribution and service fees;
and other Fund expenses. These examples are intended to help you understand your
ongoing costs (in dollars) of investing in the Fund and to compare these costs
with the ongoing costs of investing in other mutual funds.
The examples are based on an investment of $1,000.00 invested at the beginning
of the period and held for the entire 6-month period ended April 30, 2005.
ACTUAL EXPENSES. The "actual" lines of the table provide information about
actual account values and actual expenses. You may use the information on this
line for the class of shares you hold, together with the amount you invested, to
estimate the expense that you paid over the period. Simply divide your account
value by $1,000.00 (for example, an $8,600.00 account value divided by $1,000.00
= 8.60), then multiply the result by the number in the "actual" line under the
heading entitled "Expenses Paid During Period" to estimate the expenses you paid
on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES. The "hypothetical" lines of the
table provide information about hypothetical account values and hypothetical
expenses based on the Fund's actual expense ratio for each class of shares, and
an assumed rate of return of 5% per year before expenses, which is not the
Fund's actual return. The hypothetical account values and expenses may not be
used to estimate the actual ending account balance or expenses you paid for the
period. You may use this information to compare the ongoing costs of investing
in the Fund and other funds. To do so, compare this 5% hypothetical example for
the class of shares you hold with the 5% hypothetical examples that appear in
the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as front-end
or contingent deferred sales charges (loads), redemption fees, or a $12.00 fee
imposed annually on accounts valued at less than $500.00 (subject to
13 | OPPENHEIMER SMALL- & MID- CAP VALUE FUND
FUND EXPENSES
- --------------------------------------------------------------------------------
exceptions described in the Statement of Additional Information). Therefore, the
"hypothetical" lines of the table are useful in comparing ongoing costs only,
and will not help you determine the relative total costs of owning different
funds. In addition, if these transactional costs were included, your costs would
have been higher.
- --------------------------------------------------------------------------------
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT PAID DURING
VALUE VALUE 6 MONTHS ENDED
(11/1/04) (4/30/05) APRIL 30, 2005
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Class A Actual $ 1,000.00 $ 1,086.40 $ 6.43
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Class A Hypothetical 1,000.00 1,018.65 6.23
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Class B Actual 1,000.00 1,082.10 10.79
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Class B Hypothetical 1,000.00 1,014.48 10.44
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Class C Actual 1,000.00 1,082.30 10.58
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Class C Hypothetical 1,000.00 1,014.68 10.24
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Class N Actual 1,000.00 1,084.50 8.25
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Class N Hypothetical 1,000.00 1,016.91 7.98
Hypothetical assumes 5% annual return before expenses.
Expenses are equal to the Fund's annualized expense ratio for that class,
multiplied by the average account value over the period, multiplied by 181/365
(to reflect the one-half year period). Those annualized expense ratios based on
the 6-month period ended April 30, 2005 are as follows:
CLASS EXPENSE RATIOS
- ----------------------------
Class A 1.24%
- ----------------------------
Class B 2.08
- ----------------------------
Class C 2.04
- ----------------------------
Class N 1.59
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14 | OPPENHEIMER SMALL- & MID- CAP VALUE FUND
STATEMENT OF INVESTMENTS April 30, 2005 / Unaudited
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VALUE
SHARES SEE NOTE 1
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COMMON STOCKS--97.5%
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CONSUMER DISCRETIONARY--20.8%
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AUTO COMPONENTS--1.0%
Accuride Corp. 1 1,500,000 $ 13,005,000
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DISTRIBUTORS--0.7%
Source Information
Management Co.
(The) 1 800,000 8,376,000
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HOTELS, RESTAURANTS & LEISURE--3.7%
AFC Enterprises, Inc. 1 1,000,000 27,000,000
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Dave & Buster's, Inc. 1 117,000 1,971,450
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Lodgian, Inc. 1 46,200 395,010
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Scientific Games
Corp., Cl. A 1 800,000 17,176,000
---------------
46,542,460
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HOUSEHOLD DURABLES--1.8%
Jarden Corp. 1 367,400 16,411,758
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WCI Communities,
Inc. 1 225,000 6,306,750
---------------
22,718,508
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INTERNET & CATALOG RETAIL--1.6%
ValueVision Media,
Inc., Cl. A 1,2 2,000,000 19,800,000
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LEISURE EQUIPMENT & PRODUCTS--1.9%
Marvel Enterprises,
Inc. 1 1,200,000 23,520,000
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MEDIA--4.2%
Navarre Corp. 1,2 2,150,000 17,200,000
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UnitedGlobalCom,
Inc., Cl. A 1 4,000,000 35,800,000
---------------
53,000,000
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SPECIALTY RETAIL--2.8%
Blockbuster, Inc.,
Cl. A 1,300,000 12,870,000
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Blockbuster, Inc.,
Cl. B 650,000 6,136,000
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Pantry, Inc. (The) 1 500,000 16,010,000
---------------
35,016,000
VALUE
SHARES SEE NOTE 1
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TEXTILES, APPAREL & LUXURY GOODS--3.1%
Fossil, Inc. 1 500,000 $ 11,630,000
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Quicksilver, Inc. 1 600,000 16,530,000
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Warnaco Group,
Inc. (The) 1 500,000 11,230,000
---------------
39,390,000
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ENERGY--5.3%
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ENERGY EQUIPMENT & SERVICES--1.2%
Pride International,
Inc. 1 700,000 15,610,000
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OIL & GAS--4.1%
Energy Partners Ltd. 1 750,000 17,145,000
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KCS Energy, Inc. 400,000 5,616,000
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Parallel Petroleum
Corp. 1 600,000 4,668,000
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Plains Exploration
& Production Co. 1 200,000 6,436,000
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Range Resources
Corp. 550,000 12,457,500
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Warren Resources,
Inc. 1 600,000 5,136,000
---------------
51,458,500
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FINANCIALS--17.3%
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COMMERCIAL BANKS--2.7%
BankAtlantic
Bancorp, Inc. 750,000 12,795,000
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Cullen/Frost
Bankers, Inc. 275,000 11,913,000
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Sterling Financial
Corp. 300,000 9,807,000
---------------
34,515,000
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DIVERSIFIED FINANCIAL SERVICES--2.7%
Affiliated Managers
Group, Inc. 1 300,000 18,759,000
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Apollo Investment
Corp. 950,000 15,067,000
---------------
33,826,000
15 | OPPENHEIMER SMALL- & MID- CAP VALUE FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
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VALUE
SHARES SEE NOTE 1
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INSURANCE--4.9%
Assured Guaranty
Ltd. 900,000 $ 17,154,000
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Everest Re
Group Ltd. 110,000 9,042,000
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Phoenix Cos.,
Inc. (The) 875,000 9,913,750
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Platinum
Underwriters
Holdings Ltd. 550,300 16,288,880
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Protective Life Corp. 225,000 8,604,000
---------------
61,002,630
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REAL ESTATE--4.4%
BioMed Realty
Trust, Inc. 250,000 5,050,000
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Education Realty
Trust, Inc. 1 446,900 7,150,400
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Newcastle
Investment Corp. 750,000 22,117,500
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NorthStar Realty
Finance Corp. 1,2 2,000,000 20,880,000
---------------
55,197,900
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THRIFTS & MORTGAGE FINANCE--2.6%
Bank Mutual Corp. 700,000 7,371,000
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E-LOAN, Inc. 1 1,000,000 2,610,000
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Franklin Bank Corp. 1 600,000 10,086,000
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NewAlliance
Bancshares, Inc. 950,000 12,445,000
---------------
32,512,000
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HEALTH CARE--4.0%
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HEALTH CARE PROVIDERS & SERVICES--1.9%
Manor Care, Inc. 350,000 11,672,500
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Triad Hospitals, Inc. 1 250,000 12,812,500
---------------
24,485,000
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PHARMACEUTICALS--2.1%
Andrx Corp. 1 700,000 13,937,000
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Valeant
Pharmaceuticals
International, Inc. 600,000 12,450,000
---------------
26,387,000
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
INDUSTRIALS--19.9%
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AEROSPACE & DEFENSE--2.8%
BE Aerospace, Inc. 1 1,200,000 $ 14,568,000
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Orbital Sciences
Corp. 1 2,200,000 20,504,000
---------------
35,072,000
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BUILDING PRODUCTS--0.8%
Jacuzzi Brands, Inc. 1 1,100,000 9,955,000
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COMMERCIAL SERVICES & SUPPLIES--0.7%
TeleTech
Holdings, Inc. 1 800,000 8,400,000
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CONSTRUCTION & ENGINEERING--2.2%
Perini Corp. 1 232,700 3,225,222
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Quanta Services,
Inc. 1 1,600,000 12,768,000
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URS Corp. 1 400,000 12,300,000
---------------
28,293,222
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ELECTRICAL EQUIPMENT--1.6%
AMETEK, Inc. 550,000 20,828,500
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MACHINERY--7.5%
Actuant Corp., Cl. A 1 461,500 19,655,285
- --------------------------------------------------------------------------------
Chicago Bridge &
Iron Co. NV 550,000 12,309,000
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Esterline
Technologies Corp. 1 450,000 14,544,000
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Freightcar America,
Inc. 1 75,400 1,463,514
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Gardner Denver, Inc. 1 350,000 12,789,000
- --------------------------------------------------------------------------------
Idex Corp. 325,000 12,106,250
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JLG Industries, Inc. 300,000 6,114,000
- --------------------------------------------------------------------------------
Oshkosh Truck Corp. 200,000 15,030,000
---------------
94,011,049
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MARINE--0.5%
Diana Shipping, Inc. 1 410,000 5,842,500
- --------------------------------------------------------------------------------
ROAD & RAIL--1.8%
Old Dominion
Freight Line, Inc. 1 150,000 4,215,000
- --------------------------------------------------------------------------------
Overnite Corp. 400,000 11,992,000
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Pacer International,
Inc. 1 300,000 6,219,000
---------------
22,426,000
16 | OPPENHEIMER SMALL- & MID- CAP VALUE FUND
VALUE
SHARES SEE NOTE 1
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TRADING COMPANIES & DISTRIBUTORS--2.0%
Hughes Supply, Inc. 550,000 $ 14,355,000
- --------------------------------------------------------------------------------
Interline Brands, Inc. 1 650,000 10,790,000
---------------
25,145,000
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INFORMATION TECHNOLOGY--11.8%
- --------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT--1.5%
Carrier Access Corp. 1 1,500,000 7,905,000
- --------------------------------------------------------------------------------
Polycom, Inc. 1 750,000 11,445,000
---------------
19,350,000
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COMPUTERS & PERIPHERALS--1.0%
Maxtor Corp. 1 2,500,000 12,125,000
- --------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS--0.4%
Lipman Electronic
Engineering Ltd. 150,000 4,363,500
- --------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES--0.4%
24/7 Real Media,
Inc. 1 1,850,014 5,309,540
- --------------------------------------------------------------------------------
IT SERVICES--1.9%
Ceridian Corp. 1 700,000 11,809,000
- --------------------------------------------------------------------------------
CSG Systems
International, Inc. 1 700,000 12,033,000
---------------
23,842,000
- --------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT--1.4%
MEMC Electronic
Materials, Inc. 1 1,500,000 17,595,000
- --------------------------------------------------------------------------------
SOFTWARE--5.2%
Compuware Corp. 1 1,900,000 11,305,000
- --------------------------------------------------------------------------------
Novell, Inc. 1 3,700,000 21,867,000
- --------------------------------------------------------------------------------
Synopsys, Inc. 1 750,000 12,330,000
- --------------------------------------------------------------------------------
Take-Two Interactive
Software, Inc. 1 850,000 20,000,500
---------------
65,502,500
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MATERIALS--6.9%
- --------------------------------------------------------------------------------
CHEMICALS--3.9%
Airgas, Inc. 500,000 10,960,000
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Albemarle Corp. 350,000 12,813,500
- --------------------------------------------------------------------------------
Celanese Corp.,
Series A 1 800,000 11,640,000
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
CHEMICALS Continued
Minerals
Technologies, Inc. 200,000 $ 13,064,000
---------------
48,477,500
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CONTAINERS & PACKAGING--1.2%
Smurfit-Stone
Container Corp. 1,100,000 14,421,000
- --------------------------------------------------------------------------------
METALS & MINING--1.0%
Century
Aluminum Co. 1 550,000 12,815,000
- --------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS--0.8%
Bowater, Inc. 325,000 10,559,250
- --------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES--3.4%
- --------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES--2.5%
IDT Corp., Cl. B 1 1,300,000 18,278,000
- --------------------------------------------------------------------------------
Premiere Global
Services, Inc. 1 1,200,000 12,960,000
---------------
31,238,000
- --------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES--0.9%
SBA
Communications
Corp. 1 1,400,000 11,872,000
- --------------------------------------------------------------------------------
UTILITIES--8.1%
- --------------------------------------------------------------------------------
ELECTRIC UTILITIES--5.0%
AES Corp. (The) 1 800,000 12,864,000
- --------------------------------------------------------------------------------
CMS Energy Corp. 2,000,000 25,840,000
- --------------------------------------------------------------------------------
NRG Energy, Inc. 1 400,000 12,440,000
- --------------------------------------------------------------------------------
Reliant Energy, Inc. 1 1,200,000 12,204,000
---------------
63,348,000
- --------------------------------------------------------------------------------
GAS UTILITIES--1.2%
Southern Union Co. 600,000 14,364,000
- --------------------------------------------------------------------------------
MULTI-UTILITIES & UNREGULATED POWER--1.9%
Equitable
Resources, Inc. 160,000 9,222,400
- --------------------------------------------------------------------------------
Questar Corp. 260,000 15,184,000
---------------
24,406,400
---------------
Total Common Stocks
(Cost $1,131,449,403) 1,225,923,959
17 | OPPENHEIMER SMALL- & MID- CAP VALUE FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------
JOINT REPURCHASE AGREEMENTS--2.4%
- --------------------------------------------------------------------------------
Undivided interest of 2.30% in joint repurchase
agreement (Principal Amount/Value $1,318,039,000,
with a maturity value of $1,318,355,329) with
UBS Warburg LLC, 2.88%, dated 4/29/05, to
be repurchased at $30,363,285 on 5/2/05,
collateralized by Federal National Mortgage
Assn., 5%--6%, 3/1/34--8/1/34,
with a value of $1,345,611,059
(Cost $30,356,000) $ 30,356,000 $ 30,356,000
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS,
AT VALUE
(COST $1,161,805,403) 99.9% 1,256,279,959
- --------------------------------------------------------------------------------
OTHER ASSETS
NET OF LIABILITIES 0.1 1,602,645
------------------------------
NET ASSETS 100.0% $ 1,257,882,604
==============================
FOOTNOTES TO STATEMENT OF INVESTMENTS
1. Non-income producing security.
2. Affiliated company. Represents ownership of at least 5% of the voting
securities of the issuer, and is or was an affiliate, as defined in the
Investment Company Act of 1940, at or during the period ended April 30, 2005.
The aggregate fair value of securities of affiliated companies held by the Fund
as of April 30, 2005 amounts to $57,880,000. Transactions during the period in
which the issuer was an affiliate are as follows:
SHARES GROSS GROSS SHARES
OCTOBER 31, 2004 ADDITIONS REDUCTIONS APRIL 30, 2005
- --------------------------------------------------------------------------------------------------
Navarre Corp. -- 2,900,000 750,000 2,150,000
NorthStar Realty Finance Corp. 1,689,000 311,000 -- 2,000,000
ValueVision Media, Inc., Cl. A 600,000 1,400,000 -- 2,000,000
VALUE DIVIDEND REALIZED
SEE NOTE 1 INCOME LOSS
- --------------------------------------------------------------------------------------------------
Navarre Corp. $ 17,200,000 $ -- $ 4,818,462
NorthStar Realty Finance Corp. 20,880,000 -- --
ValueVision Media, Inc., Cl. A 19,800,000 -- --
---------------------------------------------
$ 57,880,000 $ -- $ 4,818,462
=============================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
18 | OPPENHEIMER SMALL- & MID- CAP VALUE FUND
STATEMENT OF ASSETS AND LIABILITIES Unaudited
- --------------------------------------------------------------------------------
April 30, 2005
- ------------------------------------------------------------------------------------------------
ASSETS
- ------------------------------------------------------------------------------------------------
Investments, at value--see accompanying statement of investments:
Unaffiliated companies (cost $1,099,757,622) $ 1,198,399,959
Affiliated companies (cost $62,047,781) 57,880,000
----------------
1,256,279,959
- ------------------------------------------------------------------------------------------------
Cash 457,026
- ------------------------------------------------------------------------------------------------
Receivables and other assets:
Investments sold 19,642,239
Shares of beneficial interest sold 9,533,266
Interest and dividends 480,354
Other 94,694
----------------
Total assets 1,286,487,538
- ------------------------------------------------------------------------------------------------
LIABILITIES
- ------------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 25,936,385
Shares of beneficial interest redeemed 1,932,176
Distribution and service plan fees 259,242
Transfer and shareholder servicing agent fees 254,952
Shareholder communications 102,293
Trustees' compensation 65,118
Other 54,768
----------------
Total liabilities 28,604,934
- ------------------------------------------------------------------------------------------------
NET ASSETS $ 1,257,882,604
================
- ------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- ------------------------------------------------------------------------------------------------
Par value of shares of beneficial interest $ 438,923
- ------------------------------------------------------------------------------------------------
Additional paid-in capital 1,087,427,446
- ------------------------------------------------------------------------------------------------
Accumulated net investment loss (4,298,994)
- ------------------------------------------------------------------------------------------------
Accumulated net realized gain on investments and foreign currency transactions 79,840,673
- ------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments 94,474,556
----------------
NET ASSETS $ 1,257,882,604
================
19 | OPPENHEIMER SMALL- & MID- CAP VALUE FUND
STATEMENT OF ASSETS AND LIABILITIES Unaudited / Continued
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
- ------------------------------------------------------------------------------------------------
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$787,584,217 and 26,702,716 shares of beneficial interest outstanding) $ 29.49
Maximum offering price per share (net asset value plus sales charge of 5.75% of
offering price) $ 31.29
- ------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $228,145,373
and 8,410,437 shares of beneficial interest outstanding) $ 27.13
- ------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $179,304,124
and 6,619,604 shares of beneficial interest outstanding) $ 27.09
- ------------------------------------------------------------------------------------------------
Class N Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $62,848,890
and 2,159,542 shares of beneficial interest outstanding) $ 29.10
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
20 | OPPENHEIMER SMALL- & MID- CAP VALUE FUND
STATEMENT OF OPERATIONS Unaudited
- --------------------------------------------------------------------------------
For the Six Months Ended April 30, 2005
- --------------------------------------------------------------------------------
INVESTMENT INCOME
- --------------------------------------------------------------------------------
Dividends (net of foreign withholding taxes of $10,231) $ 4,035,697
- --------------------------------------------------------------------------------
Interest 408,564
-----------------
Total investment income 4,444,261
- --------------------------------------------------------------------------------
EXPENSES
- --------------------------------------------------------------------------------
Management fees 4,101,002
- --------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 863,277
Class B 1,126,927
Class C 779,800
Class N 126,192
- --------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 778,069
Class B 326,405
Class C 210,093
Class N 84,046
- --------------------------------------------------------------------------------
Shareholder communications:
Class A 68,921
Class B 45,139
Class C 18,332
Class N 2,367
- --------------------------------------------------------------------------------
Trustees' compensation 29,095
- --------------------------------------------------------------------------------
Custodian fees and expenses 13,450
- --------------------------------------------------------------------------------
Other 131,105
-----------------
Total expenses 8,704,220
Less reduction to custodian expenses (9,227)
-----------------
Net expenses 8,694,993
- --------------------------------------------------------------------------------
NET INVESTMENT LOSS (4,250,732)
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
- --------------------------------------------------------------------------------
Net realized gain (loss) on:
Investments:
Unaffiliated companies 85,039,400
Affiliated companies (4,818,462)
Foreign currency transactions (810)
-----------------
Net realized gain 80,220,128
- --------------------------------------------------------------------------------
Net change in unrealized appreciation on investments (9,374,593)
- --------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 66,594,803
=================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
21 | OPPENHEIMER SMALL- & MID- CAP VALUE FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
APRIL 30, 2005 OCTOBER 31,
(UNAUDITED) 2004
- ----------------------------------------------------------------------------------------------------------------
OPERATIONS
- ----------------------------------------------------------------------------------------------------------------
Net investment loss $ (4,250,732) $ (6,942,526)
- ----------------------------------------------------------------------------------------------------------------
Net realized gain 80,220,128 124,429,362
- ----------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (9,374,593) 14,520,760
----------------------------------
Net increase in net assets resulting from operations 66,594,803 132,007,596
- ----------------------------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
- ----------------------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (61,107,254) (16,996,526)
Class B (22,766,115) (9,005,226)
Class C (14,629,531) (3,905,268)
Class N (4,196,588) (673,503)
- ----------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
- ----------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from beneficial interest transactions:
Class A 264,532,096 152,733,067
Class B 36,241,522 2,246,042
Class C 63,286,788 38,042,967
Class N 28,305,547 22,066,171
- ----------------------------------------------------------------------------------------------------------------
NET ASSETS
- ----------------------------------------------------------------------------------------------------------------
Total increase 356,261,268 316,515,320
- ----------------------------------------------------------------------------------------------------------------
Beginning of period 901,621,336 585,106,016
----------------------------------
End of period (including accumulated net investment loss of
$4,298,994 and $48,262, respectively) $ 1,257,882,604 $ 901,621,336
==================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
22 | OPPENHEIMER SMALL- & MID- CAP VALUE FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
APRIL 30, 2005 OCT. 31,
CLASS A (UNAUDITED) 2004 2003 2002 2001 2000
- -----------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 30.08 $ 26.11 $ 19.18 $ 19.53 $ 21.26 $ 16.82
- -----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.07) 1 (.17) 1 (.04) (.19) (.23) (.16)
Net realized and unrealized gain (loss) 2.66 5.42 6.97 (.09) (.47) 4.60
----------------------------------------------------------------------------------
Total from investment operations 2.59 5.25 6.93 (.28) (.70) 4.44
- -----------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Distributions from net realized gain (3.18) (1.28) -- (.07) (1.03) -- 2
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 29.49 $ 30.08 $ 26.11 $ 19.18 $ 19.53 $ 21.26
==================================================================================
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 8.64% 20.90% 36.13% (1.45)% (3.02)% 26.40%
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 787,584 $ 543,999 $ 330,215 $ 222,029 $ 172,395 $ 157,759
- -----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 711,310 $ 436,617 $ 245,319 $ 231,657 $ 163,007 $ 147,952
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment loss (0.45)% (0.61)% (0.12)% (0.69)% (1.06)% (0.95)%
Total expenses 1.24% 1.35% 1.59% 1.68% 1.86% 1.90%
Expenses after payments and waivers and
reduction to custodian expenses N/A 5 N/A 5 1.56% 1.66% N/A 5,6 N/A 5
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 58% 163% 163% 151% 162% 166%
1. Per share amounts calculated based on the average shares outstanding during
the period.
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%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
23 | OPPENHEIMER SMALL- & MID- CAP VALUE FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
APRIL 30, 2005 OCT. 31,
CLASS B (UNAUDITED) 2004 2003 2002 2001 2000
- -----------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 28.01 $ 24.59 $ 18.20 $ 18.65 $ 20.47 $ 16.28
- -----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.18) 1 (.37) 1 (.17) (.18) (.23) (.33)
Net realized and unrealized gain (loss) 2.48 5.07 6.56 (.20) (.56) 4.52
----------------------------------------------------------------------------------
Total from investment operations 2.30 4.70 6.39 (.38) (.79) 4.19
- -----------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Distributions from net realized gain (3.18) (1.28) -- (.07) (1.03) -- 2
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 27.13 $ 28.01 $ 24.59 $ 18.20 $ 18.65 $ 20.47
==================================================================================
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 8.21% 19.91% 35.11% (2.06)% (3.60)% 25.74%
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 228,146 $ 198,971 $ 171,896 $ 129,885 $ 95,418 $ 83,859
- -----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 227,864 $ 190,251 $ 137,734 $ 134,304 $ 88,235 $ 79,526
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment loss (1.29)% (1.43)% (0.85)% (1.34)% (1.65)% (1.48)%
Total expenses 2.08% 2.18% 2.42% 2.34% 2.45% 2.44%
Expenses after payments and waivers and
reduction to custodian expenses N/A 5 N/A 5 2.29% 2.32% N/A 5,6 N/A 5
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 58% 163% 163% 151% 162% 166%
1. Per share amounts calculated based on the average shares outstanding during
the period.
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%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
24 | OPPENHEIMER SMALL- & MID- CAP VALUE FUND
SIX MONTHS YEAR
ENDED ENDED
APRIL 30, 2005 OCT. 31,
CLASS C (UNAUDITED) 2004 2003 2002 2001 2000
- -----------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 27.97 $ 24.55 $ 18.17 $ 18.62 $ 20.44 $ 16.25
- -----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.18) 1 (.37) 1 (.13) (.10) (.19) (.33)
Net realized and unrealized gain (loss) 2.48 5.07 6.51 (.28) (.60) 4.52
----------------------------------------------------------------------------------
Total from investment operations 2.30 4.70 6.38 (.38) (.79) 4.19
- -----------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Distributions from net realized gain (3.18) (1.28) -- (.07) (1.03) -- 2
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 27.09 $ 27.97 $ 24.55 $ 18.17 $ 18.62 $ 20.44
==================================================================================
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 8.23% 19.95% 35.11% (2.06)% (3.61)% 25.79%
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 179,304 $ 122,329 $ 71,779 $ 46,360 $ 26,604 $ 22,173
- -----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 157,836 $ 96,555 $ 53,649 $ 45,455 $ 24,134 $ 20,521
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment loss (1.26)% (1.42)% (0.85)% (1.33)% (1.64)% (1.49)%
Total expenses 2.04% 2.16% 2.40% 2.33% 2.45% 2.44%
Expenses after payments and waivers and
reduction to custodian expenses N/A 5 N/A 5 2.30% 2.31% N/A 5,6 N/A 5
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 58% 163% 163% 151% 162% 166%
1. Per share amounts calculated based on the average shares outstanding during
the period.
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%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
25 | OPPENHEIMER SMALL- & MID- CAP VALUE FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
APRIL 30, 2005 OCT. 31,
CLASS N (UNAUDITED) 2004 2003 2002 2001 1
- ---------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 29.77 $ 25.98 $ 19.13 $ 19.51 $ 19.58
- ---------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.12) 2 (.26) 2 (.11) (.27) (.04)
Net realized and unrealized gain (loss) 2.63 5.33 6.96 (.04) (.03)
---------------------------------------------------------------------
Total from investment operations 2.51 5.07 6.85 (.31) (.07)
- ---------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Distributions from net realized gain (3.18) (1.28) -- (.07) --
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 29.10 $29.77 $ 25.98 $ 19.13 $ 19.51
=====================================================================
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 8.45% 20.29% 35.81% (1.61)% (0.36)%
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ---------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 62,849 $ 36,322 $ 11,216 $ 4,558 $ 409
- ---------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 51,100 $ 21,951 $ 6,722 $ 2,882 $ 106
- ---------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment loss (0.81)% (0.93)% (0.36)% (0.78)% (1.14)%
Total expenses 1.59% 1.70% 2.01% 1.82% 2.01%
Expenses after payments and waivers and
reduction to custodian expenses N/A 5 1.66% 1.80% 1.80% N/A 5,6
- ---------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 58% 163% 163% 151% 162%
1. For the period from March 1, 2001 (inception of offering) to October 31,
2001.
2. Per share amounts calculated based on the average shares outstanding during
the period.
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%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
26 | OPPENHEIMER SMALL- & MID- CAP VALUE FUND
NOTES TO FINANCIAL STATEMENTS Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Small Cap Value Fund (the Fund), a series of Oppenheimer Quest For
Value Funds, is an open-end management investment company registered under the
Investment Company Act of 1940, as amended. The Fund's investment objective is
to seek capital appreciation. Effective June 24, 2005, the Fund changed its name
to Oppenheimer Small- & Mid- Cap Value Fund. The Fund's investment advisor is
OppenheimerFunds, Inc. (the Manager).
The Fund offers Class A, Class B, Class C and Class N shares. Class A
shares are sold at their offering price, which is normally net asset value plus
a front-end sales charge. Class B, Class C and Class N shares are sold without a
front-end sales charge but may be subject to a contingent deferred sales charge
(CDSC). Class N shares are sold only through retirement plans. Retirement plans
that offer Class N shares may impose charges on those accounts. All classes of
shares have identical rights and voting privileges with respect to the Fund in
general and exclusive voting rights on matters that affect that class alone.
Earnings, net assets and net asset value per share may differ due to each class
having its own expenses, such as transfer and shareholder servicing agent fees
and shareholder communications, directly attributable to that class. Class 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. The Fund calculates the net asset value of its shares as
of the close of The New York Stock Exchange (the Exchange), normally 4:00 P.M.
Eastern time, on each day the Exchange is open for business. 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.
Corporate, government and municipal debt instruments having a remaining maturity
in excess of sixty days and all mortgage-backed securities will be valued at the
mean between the "bid" and "asked" prices. Futures contracts traded on a
commodities or futures exchange will be valued at the final settlement price or
official closing price on the principal exchange as reported by such principal
exchange at its trading session ending at, or most recently prior to, the time
when the Fund's assets are valued. Securities may be valued primarily using
dealer-supplied valuations or a portfolio pricing service authorized by the
Board of Trustees. Securities (including restricted securities) for which market
quotations are not readily available are valued at their fair value. Foreign and
27 | OPPENHEIMER SMALL- & MID- CAP VALUE FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
domestic securities whose values have been materially affected by what the
Manager identifies as a significant event occurring before the Fund's assets are
valued but after the close of their respective exchanges will be fair valued.
Fair value is determined in good faith using consistently applied procedures
under the supervision of the Board of Trustees. Short-term "money market type"
debt securities with remaining maturities of sixty days or less are valued at
amortized cost (which approximates market value).
- --------------------------------------------------------------------------------
FOREIGN CURRENCY TRANSLATION. The Fund's accounting records are maintained in
U.S. dollars. The values of securities denominated in foreign currencies and
amounts related to the purchase and sale of foreign securities and foreign
investment income are translated into U.S. dollars as of the close of The New
York Stock Exchange (the Exchange), normally 4:00 P.M. Eastern time, on each day
the Exchange is open for business. Foreign exchange rates may be valued
primarily using dealer supplied valuations or a portfolio pricing service
authorized by the Board of Trustees.
Reported net realized foreign exchange gains or losses arise from sales of
portfolio securities, sales and maturities of short-term securities, sales of
foreign currencies, currency gains or losses realized between the trade and
settlement dates on securities transactions, and the difference between the
amounts of dividends, interest, and foreign withholding taxes recorded on the
Fund's books and the U.S. dollar equivalent of the amounts actually received or
paid. Net unrealized foreign exchange gains and losses arise from changes in the
values of assets and liabilities, including investments in securities at fiscal
period end, resulting from changes in exchange rates.
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.
- --------------------------------------------------------------------------------
JOINT REPURCHASE AGREEMENTS. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the Fund, along with other affiliated funds
advised by the Manager, may transfer uninvested cash balances into joint trading
accounts on a daily basis. These balances are invested in one or more repurchase
agreements. 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. 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 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.
28 | OPPENHEIMER SMALL- & MID- CAP VALUE FUND
- --------------------------------------------------------------------------------
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.
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.
As of April 30, 2005, the Fund had no estimated unused capital loss
carryforward available for federal income tax purposes. During the year ended
October 31, 2004, the Fund did not utilize capital loss carryforward to offset
capital gains realized in that fiscal year.
- --------------------------------------------------------------------------------
TRUSTEES' COMPENSATION. The Fund has adopted an unfunded retirement plan for the
Fund's independent trustees. Benefits are based on years of service and fees
paid to each trustee during the years of service. During the six months ended
April 30, 2005, the Fund's projected benefit obligations were increased by
$11,795 and payments of $799 were made to retired trustees, resulting in an
accumulated liability of $53,570 as of April 30, 2005.
The Board of Trustees has adopted a deferred compensation plan for
independent trustees that enables trustees to elect to defer receipt of all or a
portion of the annual compensation they are entitled to receive from the Fund.
For purposes of determining the amount owed to the Trustee under the plan,
deferred amounts are treated as though equal dollar amounts had been invested in
shares of the Fund or in other Oppenheimer funds selected by the Trustee. The
Fund purchases shares of the funds selected for deferral by the Trustee in
amounts equal to his or her deemed investment, resulting in a Fund asset equal
to the deferred compensation liability. Such assets are included as a component
of "Other" within the asset section of the Statement of Assets and Liabilities.
Deferral of trustees' fees under the plan will not affect the net assets of the
Fund, and will not materially affect the Fund's assets, liabilities or net
investment income per share. 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
29 | OPPENHEIMER SMALL- & MID- CAP VALUE FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
the fair market value of the securities received. Interest income, which
includes accretion of discount and amortization of premium, is accrued as
earned.
- --------------------------------------------------------------------------------
CUSTODIAN FEES. Custodian Fees and Expenses in the Statement of Operations may
include interest expense incurred by the Fund on any cash overdrafts of its
custodian account during the period. Such cash overdrafts may result from the
effects of failed trades in portfolio securities and from cash outflows
resulting from unanticipated shareholder redemption activity. The Fund pays
interest to its custodian on such cash overdrafts at a rate equal to the Federal
Funds Rate plus 0.50%. The Reduction to Custodian Expenses line item, if
applicable, represents earnings on cash balances maintained by the Fund during
the period. Such interest expense and other custodian fees may be paid with
these earnings.
- --------------------------------------------------------------------------------
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 U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of income and expenses during the reporting
period. Actual results could differ from those estimates.
- --------------------------------------------------------------------------------
2. SHARES OF BENEFICIAL INTEREST
The Fund has authorized an unlimited number of $0.01 par value shares of
beneficial interest of each class. Transactions in shares of beneficial interest
were as follows:
SIX MONTHS ENDED APRIL 30, 2005 YEAR ENDED OCTOBER 31, 2004
SHARES AMOUNT SHARES AMOUNT
- --------------------------------------------------------------------------------------------------
CLASS A
Sold 10,201,043 $ 315,895,410 8,776,725 $ 247,299,487
Dividends and/or
distributions reinvested 1,967,398 57,900,523 633,321 16,346,018
Redeemed (3,549,371) (109,263,837) 1 (3,975,589) (110,912,438) 2
---------------------------------------------------------------------
Net increase 8,619,070 $ 264,532,096 5,434,457 $ 152,733,067
=====================================================================
- --------------------------------------------------------------------------------------------------
CLASS B
Sold 1,678,810 $ 47,998,518 2,234,686 $ 58,583,041
Dividends and/or
distributions reinvested 780,886 21,201,072 344,832 8,348,406
Redeemed (1,152,548) (32,958,068) 1 (2,467,247) (64,682,405) 2
---------------------------------------------------------------------
Net increase 1,307,148 $ 36,241,522 112,271 $ 2,249,042
=====================================================================
30 | OPPENHEIMER SMALL- & MID- CAP VALUE FUND
SIX MONTHS ENDED APRIL 30, 2005 YEAR ENDED OCTOBER 31, 2004
SHARES AMOUNT SHARES AMOUNT
- --------------------------------------------------------------------------------------------------
CLASS C
Sold 2,388,485 $ 67,927,792 2,120,967 $ 55,844,893
Dividends and/or
distributions reinvested 473,749 12,843,349 146,833 3,549,968
Redeemed (616,461) (17,484,353) 1 (817,988) (21,351,894) 2
---------------------------------------------------------------------
Net increase 2,245,773 $ 63,286,788 1,449,812 $ 38,042,967
=====================================================================
- --------------------------------------------------------------------------------------------------
CLASS N
Sold 1,046,866 $ 31,777,733 942,361 $ 26,412,337
Dividends and/or
distributions reinvested 130,919 3,807,139 24,717 634,506
Redeemed (238,332) (7,279,325) 1 (178,716) (4,980,672) 2
---------------------------------------------------------------------
Net increase 939,453 $ 28,305,547 788,362 $ 22,066,171
=====================================================================
1. Net of redemption fees of $19,328, $6,192, $4,289 and $1,389 for Class A,
Class B, Class C and Class N, respectively.
2. Net of redemption fees of $7,733, $3,369, $1,710 and $389 for Class A, Class
B, Class C and Class N, respectively.
- --------------------------------------------------------------------------------
3. PURCHASES AND SALES OF SECURITIES
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations, for the six months ended April 30, 2005, were
$929,825,338 and $641,824,714, 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 0.80% of the first $400 million of average annual net assets of
the Fund, 0.75% of the next $400 million and 0.60% of average annual net assets
in excess of $800 million.
- --------------------------------------------------------------------------------
ADMINISTRATION SERVICES. The Fund pays the Manager a fee of $1,500 per year for
preparing and filing the Fund's tax returns.
- --------------------------------------------------------------------------------
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 six months ended April 30, 2005, the Fund paid
$1,353,304 to OFS for services to the Fund.
- --------------------------------------------------------------------------------
DISTRIBUTION AND SERVICE PLAN (12b-1) FEES. Under its General Distributor's
Agreement with the Fund, OppenheimerFunds Distributor, Inc. (the Distributor)
acts as the Fund's principal underwriter in the continuous public offering of
the Fund's classes of shares.
- --------------------------------------------------------------------------------
SERVICE PLAN FOR CLASS A SHARES. The Fund has adopted a Service Plan for Class A
shares. Under the Plan, the Fund pays a service fee to the Distributor of 0.25%
of the average annual net assets of Class A shares. The Distributor currently
uses all of those fees to pay dealers, brokers, banks and other financial
institutions quarterly for providing personal services and maintenance of
accounts of their customers that hold Class A shares. Under
31 | OPPENHEIMER SMALL- & MID- CAP VALUE FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued
the Plan, the Fund may also pay an asset-based sales charge to the Distributor.
Beginning January 1, 2003, the Board of Trustees set the annual asset-based
sales charge rate at zero. Fees incurred by the Fund under the Plan are detailed
in the Statement of Operations.
- --------------------------------------------------------------------------------
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 to compensate the Distributor for its services in connection with the
distribution of those shares and servicing accounts. Under the plans, the Fund
pays the Distributor an annual asset-based sales charge of 0.75% on Class B and
Class C shares and 0.25% on Class N shares. The Distributor also receives a
service fee of 0.25% per year under each plan. If either the Class B, Class C or
Class N plan is terminated by the Fund or by the shareholders of a class, the
Board of Trustees and its independent trustees must determine whether the
Distributor shall be entitled to payment from the Fund of all or a portion of
the service fee and/or asset-based sales charge in respect to shares sold prior
to the effective date of such termination. The Distributor's aggregate
uncompensated expenses under the plan at April 30, 2005 for Class B, Class C and
Class N shares were $1,972,728, $1,946,135 and $452,381, respectively. Fees
incurred by the Fund under the plans are detailed in the Statement of
Operations.
- --------------------------------------------------------------------------------
SALES CHARGES. Front-end sales charges and contingent deferred sales charges
(CDSC) do not represent expenses of the Fund. They are deducted from the
proceeds of sales of Fund shares prior to investment or from redemption proceeds
prior to remittance, as applicable. The sales charges retained by the
Distributor from the sale of shares and the CDSC retained by the Distributor on
the redemption of shares is shown in the table below for the period indicated.
CLASS A CLASS B CLASS C CLASS N
CLASS A CONTINGENT CONTINGENT CONTINGENT CONTINGENT
FRONT-END DEFERRED DEFERRED DEFERRED DEFERRED
SALES CHARGES SALES CHARGES SALES CHARGES SALES CHARGES SALES CHARGES
SIX MONTHS RETAINED BY RETAINED BY RETAINED BY RETAINED BY RETAINED BY
ENDED DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR DISTRIBUTOR
- -----------------------------------------------------------------------------------------------
April 30, 2005 $ 570,300 $ 10,793 $ 173,836 $ 14,614 $ 7,422
- --------------------------------------------------------------------------------
WAIVERS AND REIMBURSEMENTS OF EXPENSES. OFS has voluntarily agreed to limit
transfer and shareholder servicing agent fees for all classes to 0.35% of
average annual net assets per class. This undertaking may be amended or
withdrawn at any time.
- --------------------------------------------------------------------------------
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.
32 | OPPENHEIMER SMALL- & MID- CAP VALUE FUND
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 gains or losses. Such realized gains and losses are
reported with all other foreign currency gains and losses in the Statement of
Operations.
As of April 30, 2005, the Fund had no outstanding foreign currency
contracts.
- --------------------------------------------------------------------------------
6. LITIGATION
A consolidated amended complaint has been filed as putative derivative and class
actions against the Manager, OFS and the Distributor, as well as 51 of the
Oppenheimer funds (as "Nominal Defendants") including the Fund, 30 present and
former Directors or Trustees and 8 present and former officers of the funds.
This complaint, initially filed in the U.S. District Court for the Southern
District of New York on January 10, 2005 and amended on March 4, 2005,
consolidates into a single action and amends six individual previously-filed
putative derivative and class action complaints. Like those prior complaints,
the complaint alleges that the Manager charged excessive fees for distribution
and other costs, improperly used assets of the funds in the form of directed
brokerage commissions and 12b-1 fees to pay brokers to promote sales of the
funds, and failed to properly disclose the use of assets of the funds to make
those payments in violation of the Investment Company Act of 1940 and the
Investment Advisers Act of 1940. Also, like those prior complaints, the
complaint further alleges that by permitting and/or participating in those
actions, the Directors/Trustees and the Officers breached their fiduciary duties
to shareholders of the funds under the Investment Company Act of 1940 and at
common law. The complaint seeks unspecified compensatory and punitive damages,
rescission of the funds' investment advisory agreements, an accounting of all
fees paid, and an award of attorneys' fees and litigation expenses.
The defendants believe that the allegations contained in the Complaints
are without merit and that they have meritorious defenses against the claims
asserted. The defendants intend to defend these lawsuits vigorously and to
contest any claimed liability. The defendants believe that it is premature to
render any opinion as to the likelihood of an outcome unfavorable to them and
that no estimate can yet be made with any degree of certainty as to the amount
or range of any potential loss.
33 | OPPENHEIMER SMALL- & MID- CAP VALUE FUND
PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES;
UPDATES TO STATEMENTS OF INVESTMENTS 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
1.800.525.7048, (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 is required to
file 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 Fund's voting record is
available (i) without charge, upon request, by calling the Fund toll-free at
1.800.525.7048, and (ii) in Form N-PX filing on the SEC's website at
www.sec.gov.
The Fund files its complete schedule of portfolio holdings with the SEC
for the first quarter and the third quarter of each fiscal year on Form N-Q. The
Fund's Form N-Q filings are available on the SEC's website at www.sec.gov. Those
forms may be reviewed and copied at the SEC's Public Reference Room in
Washington D.C. Information on the operation of the Public Reference Room may be
obtained by calling 1-800-SEC-0330.
34 | OPPENHEIMER SMALL- & MID- CAP VALUE FUND
BOARD APPROVAL OF THE FUND'S INVESTMENT
ADVISORY AGREEMENT Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Each year, the Board of Trustees (the "Board"), including a majority of the
independent Trustees, is required to determine whether to renew the advisory
agreement. The Investment Company Act of 1940, as amended, requires that the
Board request and evaluate, and that the Manager provide, such information as
may be reasonably necessary to evaluate the terms of the advisory agreement. The
Board employs an independent consultant to prepare a report that provides
information, including comparative information, that the Board requests for this
purpose. In addition, the Board receives information throughout the year
regarding Fund services, fees, expenses and performance.
NATURE AND EXTENT OF SERVICES. In considering the renewal of the Fund's
advisory agreement for the current year, the Board evaluated the nature and
extent of the services provided by the Manager and its affiliates. The Manager
provides the Fund with office space, facilities and equipment; administrative,
accounting, clerical, legal and compliance personnel; securities trading
services; oversight of third party service providers and the services of the
portfolio managers and the Manager's investment team, who provide research,
analysis and other advisory services in regard to the Fund's investments.
QUALITY OF SERVICES. The Board also considered the quality of the services
provided and the quality of the Manager's resources that are available to the
Fund. The Board noted that the Manager has had over forty years of experience as
an investment adviser and that its assets under management rank it among the top
mutual fund managers in the United States. The Board evaluated the Manager's
administrative, accounting, legal and compliance services and information the
Board received regarding the experience and professional qualifications of the
Manager's personnel and the size and functions of its staff. The Board members
also considered their experiences as directors or trustees of the Fund and other
funds advised by the Manager. The Board received and reviewed information
regarding the quality of services provided by affiliates of the Manager, which
it also reviews at other times during the year in connection with the renewal of
the Fund's service agreements. The Board noted that the relatively low
redemption rate for funds advised by the Manager provided an indication of
shareholder satisfaction with the overall level of services provided by the
Manager.
PORTFOLIO MANAGEMENT SERVICES AND PERFORMANCE. In its evaluation of the
quality of the portfolio management services provided, the Board considered the
experience of Christopher Leavy and John Damian and the Manager's Value
investment team and analysts. Messrs. Leavy and Damian have had over 12 and 7
years of experience, respectively, managing equity investments. Messrs. Leavy
and Damian have been the persons primarily responsible for the day-to-day
management of the Fund's portfolio since 2001. Mr. Leavy has been a Senior Vice
President of the Manager since September 2000 and was a
35 | OPPENHEIMER SMALL- & MID- CAP VALUE FUND
BOARD APPROVAL OF THE FUND'S INVESTMENT
ADVISORY AGREEMENT Unaudited / Continued
- --------------------------------------------------------------------------------
portfolio manager at Morgan Stanley Dean Witter Investment Management from 1997
through September 2000. He is a portfolio manager of 11 portfolios and three
other accounts in the OppenheimerFunds complex. Mr. Damian has been a Vice
President of the Manager since September 2001 and was Senior Analyst/Director
for Citigroup Asset Management from November 1999 through September 2001 and
Senior Research Analyst for Pzena Investment Management from October 1997
through November 1999. He is a portfolio manager of two portfolios in the
OppenheimerFunds complex.
The Board reviewed information, prepared by the Manager and by the
independent consultant, comparing the Fund's historical performance to relevant
market indices and to the performance of other small-cap value funds (including
both funds advised by the Manager and funds advised by other investment
advisers). The Board also receives and reviews comparative performance
information regarding the Fund and other funds at each Board meeting. The Board
noted that the Fund's one- and three-year performance was better than its peer
group average. However its five-year performance was below its peer group
average and its ten-year performance was disappointing.
MANAGEMENT FEES AND EXPENSES. The Board also reviewed information,
including comparative information, regarding the fees paid to the Manager and
its affiliates and the other expenses borne by the Fund. The independent
consultant provided comparative data in regard to the fees and expenses of the
Fund, other small-cap value funds and other funds with comparable assets levels
and distribution features. The Board noted that the Fund's contractual
management fees and its total expenses are slightly lower than its peer group
average. However the Fund's actual management fee was slightly higher than its
peer group average. In addition, the Board evaluated the comparability of the
fees charged and the services provided to the Fund to the fees charged and
services provided to other types of entities advised by the Manager.
PROFITABILITY OF THE MANAGER AND AFFILIATES. The Board also reviewed
information regarding the cost of services provided by the Manager and its
affiliates and the Manager's profitability. The Board considered that the
Manager must be able to pay and retain experienced professional personnel at
competitive rates to provide services to the Fund and that maintaining the
financial viability of the Manager is important in order for the Manager to
continue to provide significant services to the Fund and its shareholders. In
addition the Board considered information that was provided regarding the direct
and indirect benefits the Manager receives as a result of its relationship with
the Fund, including compensation paid to the Manager's affiliates and research
provided to the Manager in connection with permissible brokerage arrangements
(soft dollar arrangements).
36 | OPPENHEIMER SMALL- & MID- CAP VALUE FUND
ECONOMIES OF SCALE. The Board reviewed the extent to which the Manager may
realize economies of scale in managing and supporting the Fund and the current
level of Fund assets in relation to the Fund's breakpoint schedule for its
management fees. The Board noted that the fund has recently experienced
significant asset growth and that, based on current asset levels, the Fund has
passed its last management fee breakpoint.
CONCLUSIONS. These factors were also considered by the independent
Trustees meeting separately from the full Board, assisted by experienced counsel
to the Fund. Fund counsel is independent of the Manager within the meaning and
intent of the Securities and Exchange Commission Rules. The Board was aware that
there are alternatives to retaining the Manager.
Based on its review of the information it received and its evaluations
described above, the Board, including a majority of the independent Trustees,
concluded that the nature, extent and quality of the services provided to the
Fund by the Manager are a benefit to the Fund and in the best interest of the
Fund's shareholders and that the amount and structure of the compensation
received by the Manager and its affiliates are reasonable in relation to the
services provided. Accordingly, the Board elected to continue the advisory
agreement for another year. In arriving at this decision, the Board did not
single out any factor or factors as being more important than others, but
considered all of the factors together. The Board judged the terms and
conditions of the advisory agreement, including the management fee, in light of
all of the surrounding circumstances.
37 | OPPENHEIMER SMALL- & MID- CAP VALUE FUND
ITEM 2. CODE OF ETHICS
Not applicable to semiannual reports.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
Not applicable to semiannual reports.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
Not applicable to semiannual reports.
ITEM 5. NOT APPLICABLE
ITEM 6. SCHEDULE OF INVESTMENTS
Not applicable
ITEM 7. DISCLOSURE OF PROXY POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT
INVESTMENT COMPANIES
Not applicable
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT COMPANIES
Not applicable
ITEM 9. PURCHASE OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS
Not applicable
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
The Board is responsible for approving nominees for election as
trustees. To assist in this task, the Board has designated the Audit Committee
as the nominating committee for the Board. It reviews and recommends nominees to
the Board. The Committee is comprised entirely of disinterested trustees as
defined in Section 2(a)(19) of the Investment Company Act of 1940.
The Audit Committee charter describes the responsibilities of the
Committee in nominating candidates for election as independent Trustees of the
Registrant. The Registrant's Board has adopted a written charter for the
Committee. A current copy of the Audit Committee charter is available to
shareholders on the OppenheimerFunds website at WWW.OPPENHEIMERFUNDS.COM.
Under the current policy, if the Board determines that a vacancy
exists or is likely to exist on the Board, the Audit Committee of the Board will
consider candidates for Board membership including recommended by Registrant
shareholders. The Audit Committee will consider nominees recommended by
independent Board members or recommended by any other Board members including
Board members affiliated with the Registrant's investment advisors.
The Committee may, upon Board approval, retain an executive search firm to
assist in screening potential candidates. Upon Board approval, the Audit
Committee may also use the services of legal, financial, or other external
counsel that it deems necessary or desirable in the screening process.
Shareholders wishing to submit a nominee for election to the Board may do so by
mailing their submission to the offices of OppenheimerFunds, Inc., 6803 South
Tucson Way, Centennial, CO 80112, to the attention of the Board of Trustees of
the named Registrant, c/o the Secretary of the Registrant.
The Committee's process for identifying and evaluating nominees for
trustees includes a number of factors. In screening candidates for board
membership, whether the candidate is suggested by Board members, shareholders or
others, the Committee considers the candidate's professional experience,
soundness of judgment, integrity, ability to make independent, analytical
inquiries, collegiality, willingness and ability to devote the time required to
perform Board activities adequately, ability to represent the interests of all
shareholders of the Registrant, and diversity relative to the board's
composition. Candidates are expected to provide a mix of attributes, experience,
perspective and skills necessary to effectively advance the interests of
shareholders.
ITEM 11. CONTROLS AND PROCEDURES
(a) Based on their evaluation of registrant's disclosure controls and
procedures (as defined in rule 30a-3(c) under the Investment
Company Act of 1940 (17 CFR 270.30a-3(c)) as of April 30, 2005,
registrant's principal executive officer and principal financial
officer found registrant's disclosure controls and procedures to
provide reasonable assurances 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 changes in registrant's internal controls over
financial reporting that occurred during the registrant's last
fiscal quarter that has materially affected, or is reasonably
likely to materially affect, the registrant's internal control
over financial reporting.
ITEM 12. EXHIBITS.
(A) EXHIBIT ATTACHED HERETO. (ATTACH CODE OF ETHICS AS EXHIBIT)(NOT
APPLICABLE TO SEMIANNUAL REPORTS)
(B) EXHIBITS ATTACHED HERETO. (ATTACH CERTIFICATIONS AS EXHIBITS)
(C) EXHIBITS ATTACHED HERETO. (ATTACH PORTFOLIO PROXY VOTING POLICIES AND
PROCEDURES AS REQUIRED BY ITEM 7)
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Oppenheimer Small- & Mid- Cap Value Fund
By: /S/ JOHN V. MURPHY
----------------------------
John V. Murphy
Principal Executive Officer
Date: June 15, 2005
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /S/ JOHN V. MURPHY
----------------------------
John V. Murphy
Principal Executive Officer
Date: June 15, 2005
By: /S/ BRIAN W. WIXTED
----------------------------
Brian W. Wixted
Chief Financial Officer
Date: June 15, 2005