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 811-04797
OPPENHEIMER QUEST CAPITAL VALUE FUND, INC.
------------------------------------------
(Exact name of registrant as specified in charter)
6803 SOUTH TUCSON WAY, CENTENNIAL, COLORADO 80112-3924
------------------------------------------------------
(Address of principal executive offices) (Zip code)
Robert G. Zack, Esq.
OppenheimerFunds, Inc.
Two World Financial Center, New York, New York 10281-1008
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(Name and address of agent for service)
Registrant's telephone number, including area code: (303) 768-3200
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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 8.7%
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Diversified Financial Services 8.2
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Health Care Providers & Services 8.1
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Media 7.8
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Oil & Gas 5.0
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Health Care Equipment & Supplies 4.3
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Energy Equipment & Services 4.0
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Specialty Retail 3.7
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Hotels, Restaurants & Leisure 3.1
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Commercial Services & Supplies 3.0
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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Omnicom Group, Inc. 3.1%
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Oshkosh Truck Corp. 3.0
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Citigroup, Inc. 3.0
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Lamar Advertising Co., Cl. A. 2.8
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Laboratory Corp. of America Holdings 2.8
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Beckman Coulter, Inc. 2.6
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Avon Products, Inc. 2.5
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Eaton Corp. 2.3
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National Oilwell Varco, Inc. 2.2
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BP plc, ADR 2.2
Portfolio holdings and allocations are subject to change. Percentages are as of
April 30, 2005, and are based on net assets.
For up-to-date Top 10 Fund holdings, please visit www.oppenheimerfunds.com
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9 | OPPENHEIMER QUEST CAPITAL VALUE FUND, INC.
TOP HOLDINGS AND ALLOCATIONS
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SECTOR ALLOCATION
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Industrials 22.3%
Health Care 18.0
Consumer Discretionary 16.5
Financials 15.8
Energy 10.2
Information Technology 5.7
Consumer Staples 5.6
Materials 2.9
Utilities 1.9
Telecommunication Services 1.1
Portfolio holdings and allocations are subject to change. Percentages are as of
April 30, 2005, and are based on common stocks.
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10 | OPPENHEIMER QUEST CAPITAL VALUE FUND, INC.
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.
CLASS A (formerly Capital) shares of the Fund were first publicly offered on
2/13/87. Unless otherwise noted, Class A shares total returns reflect the
historical performance of the Class A shares of the Fund (formerly Capital
shares) as adjusted for the fees and expenses of Class A shares in effect as of
3/3/97 (without giving effect to any fee waivers). Unless otherwise noted,
average annual total returns for Class A shares includes the current 5.75%
maximum initial sales charge. Class A shares are subject to a maximum annual
0.25% asset-based sales charge currently. 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 3/3/97. Unless
otherwise noted, Class B returns include the applicable contingent deferred
sales charge of 5% (1-year) and 2% (5-year). Because Class B shares convert to
Class A shares 72 months after purchase, the "10-year" returns for Class B uses
Class A performance for the period after conversion. Class B shares are subject
to a maximum annual 0.75% asset-based sales charge.
CLASS C shares of the Fund were first publicly offered on 3/3/97. 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 QUEST CAPITAL VALUE FUND, INC.
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 QUEST CAPITAL VALUE FUND, INC.
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), or a $12.00 fee imposed annually
on accounts valued at less than $500.00 (subject to exceptions described in
13 | OPPENHEIMER QUEST CAPITAL VALUE FUND, INC.
FUND EXPENSES
- --------------------------------------------------------------------------------
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 $1,060.30 $ 6.82
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Class A Hypothetical 1,000.00 1,018.20 6.68
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Class B Actual 1,000.00 1,055.60 11.27
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Class B Hypothetical 1,000.00 1,013.88 11.04
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Class C Actual 1,000.00 1,055.50 11.37
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Class C Hypothetical 1,000.00 1,013.79 11.15
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Class N Actual 1,000.00 1,057.70 9.02
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Class N Hypothetical 1,000.00 1,016.07 8.84
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 1.33%
- ------------------------------
Class B 2.20
- ------------------------------
Class C 2.22
- ------------------------------
Class N 1.76
The expense ratios reflect voluntary waivers or reimbursements of expenses by
the Fund's Transfer Agent that can be terminated at any time, without advance
notice. The "Financial Highlights" tables in the Fund's financial statements,
included in this report, also show the gross expense ratios, without such
waivers or reimbursements.
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14 | OPPENHEIMER QUEST CAPITAL VALUE FUND, INC.
STATEMENT OF INVESTMENTS April 30, 2005 / Unaudited
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VALUE
SHARES SEE NOTE 1
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COMMON STOCKS--88.6%
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CONSUMER DISCRETIONARY--14.6%
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HOTELS, RESTAURANTS & LEISURE--3.1%
Brinker International,
Inc. 1 118,100 $ 3,991,780
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Ruby Tuesday, Inc. 239,700 5,393,250
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Yum! Brands, Inc. 85,300 4,005,688
--------------
13,390,718
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MEDIA--7.8%
Lamar Advertising
Co., Cl. A 1 327,900 12,256,902
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Omnicom Group, Inc. 164,121 13,605,631
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WPP Group plc,
Sponsored ADR 2 154,600 8,365,406
--------------
34,227,939
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SPECIALTY RETAIL--3.7%
Claire's Stores, Inc. 361,000 7,877,020
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Pacific Sunwear of
California, Inc. 1 364,000 8,230,040
--------------
16,107,060
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CONSUMER STAPLES--5.0%
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FOOD & STAPLES RETAILING--1.8%
Wal-Mart Stores, Inc. 159,800 7,532,972
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FOOD PRODUCTS--0.7%
Dean Foods Co. 1 90,500 3,109,580
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PERSONAL PRODUCTS--2.5%
Avon Products, Inc. 274,000 10,981,920
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ENERGY--9.0%
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ENERGY EQUIPMENT & SERVICES--4.0%
Nabors Industries
Ltd. 1 142,800 7,692,636
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National Oilwell
Varco, Inc. 1 241,800 9,609,132
--------------
17,301,768
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OIL & GAS--5.0%
BP plc, ADR 156,700 9,543,030
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ConocoPhillips 23,100 2,422,035
VALUE
SHARES SEE NOTE 1
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OIL & GAS Continued
Delta Petroleum
Corp. 1 311,300 $ 3,480,334
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Exxon Mobil Corp. 116,100 6,621,183
--------------
22,066,582
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FINANCIALS--14.0%
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COMMERCIAL BANKS--2.5%
M&T Bank Corp. 45,300 4,686,285
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Zions Bancorp 87,300 6,113,619
--------------
10,799,904
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CONSUMER FINANCE--0.5%
MoneyGram
International, Inc. 121,700 2,360,980
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DIVERSIFIED FINANCIAL SERVICES--8.2%
American Express Co. 151,400 7,978,780
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Citigroup, Inc. 275,800 12,951,568
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JPMorgan
Chase & Co. 222,500 7,896,525
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Merrill Lynch
& Co., Inc. 127,500 6,876,075
--------------
35,702,948
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INSURANCE--0.6%
Platinum
Underwriters
Holdings Ltd. 89,000 2,634,400
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THRIFTS & MORTGAGE FINANCE--2.2%
MGIC Investment
Corp. 161,400 9,522,600
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HEALTH CARE--15.9%
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BIOTECHNOLOGY--1.3%
Amgen, Inc. 1 96,700 5,628,907
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HEALTH CARE EQUIPMENT & SUPPLIES--4.3%
Beckman Coulter, Inc. 167,400 11,167,254
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Thermo Electron
Corp. 1 163,700 4,089,226
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Waters Corp. 1 91,400 3,622,182
--------------
18,878,662
15 | OPPENHEIMER QUEST CAPITAL VALUE FUND, INC.
STATEMENT OF INVESTMENTS Unaudited / Continued
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VALUE
SHARES SEE NOTE 1
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HEALTH CARE PROVIDERS & SERVICES--8.1%
Community Health
Systems, Inc. 1 242,800 $ 8,850,060
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Covance, Inc. 1 157,500 7,188,300
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DaVita, Inc. 1 178,800 7,205,640
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Laboratory Corp. of
America Holdings 1 243,100 12,033,450
--------------
35,277,450
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PHARMACEUTICALS--2.2%
Barr Pharmaceuticals,
Inc. 1 140,500 7,286,330
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Par Pharmaceutical
Cos., Inc. 1 80,800 2,426,424
--------------
9,712,754
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INDUSTRIALS--19.8%
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AEROSPACE & DEFENSE--2.4%
Alliant Techsystems,
Inc. 1 121,426 8,400,251
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DRS Technologies,
Inc. 1 50,600 2,239,050
--------------
10,639,301
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COMMERCIAL SERVICES & SUPPLIES--3.0%
Aramark Corp., Cl. B 237,400 5,818,674
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Dun & Bradstreet
Corp. 1 114,400 7,143,136
--------------
12,961,810
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CONSTRUCTION & ENGINEERING--1.1%
Dycom Industries,
Inc. 1 211,600 4,921,816
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ELECTRICAL EQUIPMENT--1.2%
AMETEK, Inc. 133,400 5,051,858
- --------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES--1.5%
General Electric Co. 185,100 6,700,620
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MACHINERY--8.7%
Actuant Corp., Cl. A 1 151,100 6,435,349
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Eaton Corp. 171,100 10,035,015
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Gardner Denver, Inc. 1 55,500 2,027,970
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Oshkosh Truck Corp. 175,200 13,166,280
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
MACHINERY Continued
Wabash National
Corp. 239,100 $ 6,097,050
--------------
37,761,664
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ROAD & RAIL--1.9%
Canadian National
Railway Co. 67,850 3,881,699
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Pacer International,
Inc. 1 218,705 4,533,755
--------------
8,415,454
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INFORMATION TECHNOLOGY--5.1%
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ELECTRONIC EQUIPMENT & INSTRUMENTS--2.8%
Amphenol Corp.,
Cl. A 107,300 4,231,912
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Arrow Electronics,
Inc. 1 257,300 6,262,682
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Jabil Circuit, Inc. 1 60,200 1,661,520
--------------
12,156,114
- --------------------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES--1.3%
Digitas, Inc. 1 574,500 5,727,765
- --------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT--1.0%
Texas
Instruments, Inc. 169,000 4,218,240
- --------------------------------------------------------------------------------
MATERIALS--2.6%
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CONTAINERS & PACKAGING--0.8%
Smurfit-Stone
Container Corp. 272,700 3,575,097
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METALS & MINING--1.8%
Inco Ltd. 1 217,400 7,769,876
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TELECOMMUNICATION SERVICES--0.9%
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DIVERSIFIED TELECOMMUNICATION SERVICES--0.9%
Iowa
Telecommunications
Services, Inc. 128,500 2,454,350
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Valor
Communications
Group, Inc. 120,300 1,624,048
--------------
4,078,398
16 | OPPENHEIMER QUEST CAPITAL VALUE FUND, INC.
VALUE
SHARES SEE NOTE 1
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UTILITIES--1.7%
- --------------------------------------------------------------------------------
ELECTRIC UTILITIES--1.7%
Cinergy Corp. 188,300 $ 7,456,680
--------------
Total Common Stocks
(Cost $342,633,103) 386,671,837
PRINCIPAL
AMOUNT
- --------------------------------------------------------------------------------
SHORT-TERM NOTES--11.0%
- --------------------------------------------------------------------------------
American Express
Credit Corp., 2.80%,
5/19/05 $ 6,000,000 5,991,600
- --------------------------------------------------------------------------------
Federal Home Loan Bank:
2.65%, 5/2/05 7,053,000 7,052,481
2.67%, 5/3/05 15,000,000 14,997,775
2.72%, 5/9/05 10,000,000 9,993,956
2.81%, 5/31/05 10,000,000 9,976,583
--------------
Total Short-Term Notes
(Cost $48,012,395) 48,012,395
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Total Investments, at Value
(excluding Investments
Purchased with Cash
Collateral from
Securities Loaned)
(Cost $390,645,498) 434,684,232
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------
INVESTMENTS PURCHASED WITH CASH COLLATERAL
FROM SECURITIES LOANED--0.5%
- --------------------------------------------------------------------------------
JOINT REPURCHASE AGREEMENTS--0.5%
Undivided interest of 0.06% in joint repurchase
agreement (Principal Amount/Value $3,500,000,000,
with a maturity value of $3,501,158,889) with
Nomura Securities, 2.98%, dated 4/29/05, to
be repurchased at $2,009,765 on 5/2/05,
collateralized by U.S. Agency Mortgages,
0%-7%, 1/15/08-3/15/46, with a
value of $3,633,391,066 3
(Cost $2,009,100) $ 2,009,100 $ 2,009,100
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TOTAL INVESTMENTS,
AT VALUE
(COST $392,654,598) 100.1% 436,693,332
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LIABILITIES
IN EXCESS OF
OTHER ASSETS (0.1) (388,029)
------------------------------
NET ASSETS 100.0% $ 436,305,303
==============================
FOOTNOTES TO STATEMENT OF INVESTMENTS
1. Non-income producing security.
2. Partial or fully-loaned security--See Note 6 of Notes to Financial
Statements.
3. The security has been segregated to satisfy the forward commitment to return
the cash collateral received in securities lending transactions upon the
borrower's return of the securities loaned. See Note 6 of Notes to Financial
Statements.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
17 | OPPENHEIMER QUEST CAPITAL VALUE FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES Unaudited
- --------------------------------------------------------------------------------
April 30, 2005
- ------------------------------------------------------------------------------------------------------------------
ASSETS
- ------------------------------------------------------------------------------------------------------------------
Investments, at value (including securities loaned of $1,958,782) (cost $392,654,598)
- --see accompanying statement of investments $ 436,693,332
- ------------------------------------------------------------------------------------------------------------------
Cash 160,189
- ------------------------------------------------------------------------------------------------------------------
Receivables and other assets:
Shares of capital stock sold 1,349,429
Investments sold 563,504
Interest and dividends 318,309
Other 58,772
----------------
Total assets 439,143,535
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LIABILITIES
- ------------------------------------------------------------------------------------------------------------------
Return of collateral for securities loaned 2,009,100
- ------------------------------------------------------------------------------------------------------------------
Payables and other liabilities:
Shares of capital stock redeemed 581,720
Distribution and service plan fees 83,803
Transfer and shareholder servicing agent fees 72,641
Directors' compensation 45,264
Shareholder communications 33,719
Other 11,985
----------------
Total liabilities 2,838,232
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NET ASSETS $ 436,305,303
================
- ------------------------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- ------------------------------------------------------------------------------------------------------------------
Par value of shares of capital stock $ 1,690
- ------------------------------------------------------------------------------------------------------------------
Additional paid-in capital 363,949,699
- ------------------------------------------------------------------------------------------------------------------
Accumulated net investment loss (1,216,731)
- ------------------------------------------------------------------------------------------------------------------
Accumulated net realized gain on investments and foreign currency transactions 29,531,911
- ------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments 44,038,734
----------------
NET ASSETS $ 436,305,303
================
18 | OPPENHEIMER QUEST CAPITAL VALUE FUND, INC.
- -----------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
- -----------------------------------------------------------------------------------------------------------------
Class A Shares:
Net asset value and redemption price per share (based on net assets of $306,163,141
and 11,597,150 shares of capital stock outstanding) $26.40
Maximum offering price per share (net asset value plus sales charge of 5.75% of offering price) $28.01
- -----------------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $74,603,191
and 3,062,051 shares of capital stock outstanding) $24.36
- -----------------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $42,185,176 and 1,729,625 shares
of capital stock outstanding) $24.39
- -----------------------------------------------------------------------------------------------------------------
Class N Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $13,353,795 and 512,757 shares of
capital stock outstanding) $26.04
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
19 | OPPENHEIMER QUEST CAPITAL VALUE FUND, INC.
STATEMENT OF OPERATIONS Unaudited
- --------------------------------------------------------------------------------
For the Six Months Ended April 30, 2005
- --------------------------------------------------------------------------------
INVESTMENT INCOME
- --------------------------------------------------------------------------------
Dividends (net of foreign withholding taxes of $12,626) $ 1,684,609
- --------------------------------------------------------------------------------
Interest 303,295
- --------------------------------------------------------------------------------
Portfolio lending fees 29,004
----------------
Total investment income 2,016,908
- --------------------------------------------------------------------------------
EXPENSES
- --------------------------------------------------------------------------------
Management fees 1,751,302
- --------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 336,696
Class B 349,928
Class C 193,067
Class N 30,570
- --------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 258,871
Class B 99,069
Class C 57,796
Class N 43,578
- --------------------------------------------------------------------------------
Shareholder communications:
Class A 20,396
Class B 12,734
Class C 6,516
Class N 1,418
- --------------------------------------------------------------------------------
Directors' compensation 17,028
- --------------------------------------------------------------------------------
Custodian fees and expenses 9,354
- --------------------------------------------------------------------------------
Other 36,844
----------------
Total expenses 3,225,167
Less reduction to custodian expenses (2,580)
Less waivers and reimbursements of expenses (21,690)
----------------
Net expenses 3,200,897
- --------------------------------------------------------------------------------
NET INVESTMENT LOSS (1,183,989)
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
- --------------------------------------------------------------------------------
Net realized gain on:
Investments 29,656,998
Foreign currency transactions 350
----------------
Net realized gain 29,657,348
- --------------------------------------------------------------------------------
Net change in unrealized appreciation on investments (8,063,287)
- --------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 20,410,072
================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
20 | OPPENHEIMER QUEST CAPITAL VALUE FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
APRIL 30, 2005 OCTOBER 31,
(UNAUDITED) 2004
- --------------------------------------------------------------------------------------------------------------
OPERATIONS
- --------------------------------------------------------------------------------------------------------------
Net investment loss $ (1,183,989) $ (2,056,779)
- --------------------------------------------------------------------------------------------------------------
Net realized gain 29,657,348 35,194,517
- --------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (8,063,287) 7,472,308
------------------------------------
Net increase in net assets resulting from operations 20,410,072 40,610,046
- --------------------------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
- --------------------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (20,204,331) (1,407,511)
Class B (5,452,560) (421,504)
Class C (2,913,204) (234,513)
Class N (840,494) (47,778)
- --------------------------------------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS
- --------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from capital stock transactions:
Class A 59,112,538 31,831,708
Class B 12,517,942 1,735,308
Class C 8,899,567 144,639
Class N 3,076,758 3,167,760
- --------------------------------------------------------------------------------------------------------------
NET ASSETS
- --------------------------------------------------------------------------------------------------------------
Total increase 74,606,288 75,378,155
- --------------------------------------------------------------------------------------------------------------
Beginning of period 361,699,015 286,320,860
------------------------------------
End of period (including accumulated net investment loss of
$1,216,731 and $32,742, respectively) $ 436,305,303 $ 361,699,015
====================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
21 | OPPENHEIMER QUEST CAPITAL VALUE FUND, INC.
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 $ 26.89 $ 23.71 $ 19.07 $ 20.91 $ 33.65 $ 33.66
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.05) 1 (.10) (.09) (.13) (.11) (.25)
Net realized and unrealized gain (loss) 1.64 3.45 4.73 (1.25) (2.59) 6.08
----------------------------------------------------------------------------------------
Total from investment operations 1.59 3.35 4.64 (1.38) (2.70) 5.83
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Distributions from net realized gain (2.08) (.17) -- (.46) (10.04) (5.84)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 26.40 $ 26.89 $ 23.71 $ 19.07 $ 20.91 $ 33.65
========================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 6.03% 14.22% 24.33% (6.90)% (9.91)% 20.63%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 306,163 $252,661 $193,955 $150,161 $154,346 $177,876
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 287,255 $225,711 $165,906 $164,479 $161,187 $181,216
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment loss (0.33)% (0.37)% (0.43)% (0.61)% (0.44)% (0.73)%
Total expenses 1.33% 4 1.40% 4,5 1.56% 4,5 1.71% 4,5 1.67% 4 1.73% 4
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 34% 61% 74% 75% 80% 77%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the redemption of Fund shares.
3. Annualized for periods of less than one full year.
4. Reduction to custodian expenses less than 0.01%.
5. Voluntary waiver of transfer agent fees less than 0.01%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
22 | OPPENHEIMER QUEST CAPITAL VALUE FUND, INC.
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 $ 25.07 $ 22.31 $ 18.09 $ 19.99 $ 32.77 $ 33.07
- -----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.15) 1 (.29) (.22) (.19) .05 (.34)
Net realized and unrealized gain (loss) 1.52 3.22 4.44 (1.25) (2.79) 5.88
------------------------------------------------------------------------------------
Total from investment operations 1.37 2.93 4.22 (1.44) (2.74) 5.54
- -----------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Distributions from net realized gain (2.08) (.17) -- (.46) (10.04) (5.84)
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 24.36 $ 25.07 $ 22.31 $ 18.09 $ 19.99 $ 32.77
====================================================================================
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 5.56% 13.22% 23.33% (7.53)% (10.48)% 20.02%
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 74,603 $ 64,069 $ 55,449 $ 42,010 $ 34,278 $ 17,429
- -----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 70,751 $ 60,460 $ 46,785 $ 42,900 $ 27,144 $ 15,719
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment loss (1.21)% (1.26)% (1.23)% (1.30)% (1.13)% (1.26)%
Total expenses 2.20% 2.30% 2.43% 2.41% 2.26% 2.27%
Expenses after payments and waivers and
reduction to custodian expenses N/A 4 N/A 4 2.36% N/A 4,5 N/A 4 N/A 4
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 34% 61% 74% 75% 80% 77%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the redemption of Fund shares.
3. Annualized for periods of less than one full year.
4. Reduction to custodian expenses less than 0.01%.
5. Voluntary waiver of transfer agent fees less than 0.01%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
23 | OPPENHEIMER QUEST CAPITAL VALUE FUND, INC.
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
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 $ 25.10 $ 22.34 $ 18.11 $ 20.01 $ 32.80 $ 33.09
- -----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (.15) 1 (.29) (.14) (.13) .11 (.38)
Net realized and unrealized gain (loss) 1.52 3.22 4.37 (1.31) (2.86) 5.93
------------------------------------------------------------------------------------
Total from investment operations 1.37 2.93 4.23 (1.44) (2.75) 5.55
- -----------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Distributions from net realized gain (2.08) (.17) -- (.46) (10.04) (5.84)
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 24.39 $ 25.10 $ 22.34 $ 18.11 $ 20.01 $ 32.80
====================================================================================
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 5.55% 13.20% 23.36% (7.52)% (10.50)% 20.05%
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 42,185 $ 34,414 $ 30,510 $ 16,979 $ 10,272 $ 5,053
- -----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 39,034 $ 32,051 $ 20,901 $ 15,323 $ 7,898 $ 4,969
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment loss (1.22)% (1.26)% (1.24)% (1.30)% (1.13)% (1.25)%
Total expenses 2.22% 2.31% 2.43% 2.41% 2.26% 2.27%
Expenses after payments and waivers and
reduction to custodian expenses N/A 4 N/A 4 2.36% N/A 4,5 N/A 4 N/A 4
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 34% 61% 74% 75% 80% 77%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Assumes an investment on the business day before the first day of the fiscal
period, with all dividends and distributions reinvested in additional shares on
the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods of less than one
full year. Returns do not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the redemption of Fund shares.
3. Annualized for periods of less than one full year.
4. Reduction to custodian expenses less than 0.01%.
5. Voluntary waiver of transfer agent fees less than 0.01%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
24 | OPPENHEIMER QUEST CAPITAL VALUE FUND, INC.
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 $ 26.61 $ 23.56 $ 19.00 $ 20.88 $ 23.25
- ----------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.10) 2 (.19) (.15) (.17) (.03)
Net realized and unrealized gain (loss) 1.61 3.41 4.71 (1.25) (2.34)
----------------------------------------------------------------------
Total from investment operations 1.51 3.22 4.56 (1.42) (2.37)
- ----------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Distributions from net realized gain (2.08) (.17) -- (.46) --
- ----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 26.04 $26.61 $ 23.56 $ 19.00 $ 20.88
======================================================================
- ----------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 5.77% 13.75% 24.00% (7.10)% (10.19)%
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ----------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 13,354 $ 10,554 $ 6,408 $ 2,983 $ 187
- ----------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 12,358 $ 8,724 $ 4,218 $ 1,475 $ 38
- ----------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment loss (0.77)% (0.78)% (0.75)% (0.88)% (0.96)%
Total expenses 2.12% 2.20% 1.97% 1.87% 1.75%
Expenses after payments and waivers and
reduction to custodian expenses 1.76% 1.81% 1.87% N/A 5,6 N/A 5
- ----------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 34% 61% 74% 75% 80%
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.
25 | OPPENHEIMER QUEST CAPITAL VALUE FUND, INC.
NOTES TO FINANCIAL STATEMENTS Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Quest Capital Value Fund, Inc. (the Fund) is registered under the
Investment Company Act of 1940, as amended, as an open-end management investment
company. The Fund's investment objective is to seek capital appreciation. The
Fund's investment advisor is OppenheimerFunds, Inc. (the Manager). Effective
January 1, 2005, Oppenheimer Capital LLC (the Sub-Advisor) replaced OpCap
Advisors as the Fund's Sub-Advisor, and assumed its responsibility for providing
day-to-day portfolio management for the Fund. Oppenheimer Capital LLC is the
parent company of OpCap Advisors.
The Fund offers Class A, Class B, Class C and Class N shares. Class A
shares are sold at their offering price, which is normally net asset value plus
a front-end sales charge. Class B, Class C and Class N shares are sold without a
front-end sales charge but may be subject to a contingent deferred sales charge
(CDSC). Class N shares are sold only through retirement plans. Retirement plans
that offer Class N shares may impose charges on those accounts. All classes of
shares have identical rights and voting privileges 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 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 Directors. 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 end-
26 | OPPENHEIMER QUEST CAPITAL VALUE FUND, INC.
ing at, or most recently prior to, the time when the Fund's assets are valued.
Securities (including restricted securities) for which market quotations are not
readily available are valued at their fair value. Foreign and 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 Directors. Short-term "money market type" debt
securities with remaining maturities of sixty days or less are valued at
amortized cost (which approximates market value).
- --------------------------------------------------------------------------------
FOREIGN CURRENCY TRANSLATION. The Fund's accounting records are maintained in
U.S. dollars. 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 Directors.
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.
- --------------------------------------------------------------------------------
ALLOCATION OF INCOME, EXPENSES, GAINS AND LOSSES. Income, expenses (other than
those attributable to a specific class), gains and losses are allocated on a
daily basis to each class of shares based upon the relative proportion of net
assets represented by such class. Operating expenses directly attributable to a
specific class are charged against the operations of that class.
- --------------------------------------------------------------------------------
FEDERAL TAXES. The Fund intends to comply with provisions of the Internal
Revenue Code applicable to regulated investment companies and to distribute
substantially all of its investment company taxable income, including any net
realized gain on investments not offset by capital loss carryforwards, if any,
to shareholders, therefore, no federal income or excise tax provision is
required.
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
27 | OPPENHEIMER QUEST CAPITAL VALUE FUND, INC.
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
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 any capital loss carryforward.
- --------------------------------------------------------------------------------
DIRECTORS' COMPENSATION. The Fund has adopted an unfunded retirement plan for
the Fund's independent directors. Benefits are based on years of service and
fees paid to each director during the years of service. During the six months
ended April 30, 2005, the Fund's projected benefit obligations were increased by
$3,719 and payments of $604 were made to retired directors, resulting in an
accumulated liability of $31,003 as of April 30, 2005.
The Board of Directors has adopted a deferred compensation plan for
independent directors that enables directors to elect to defer receipt of all or
a portion of the annual compensation they are entitled to receive from the Fund.
For purposes of determining the amount owed to the Director 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 Director. The
Fund purchases shares of the funds selected for deferral by the Director 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 directors' fees under the plan will not affect the net assets of the
Fund, and will not materially affect the Fund's assets, liabilities or net
investment income per share. Amounts will be deferred until distributed in
accordance to the Plan.
- --------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations,
are recorded on the ex-dividend date. Income and capital gain distributions, if
any, are declared and paid annually.
- --------------------------------------------------------------------------------
INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date or upon
ex-dividend notification in the case of certain foreign dividends where the
ex-dividend date may have passed. Non-cash dividends included in dividend
income, if any, are recorded at 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
28 | OPPENHEIMER QUEST CAPITAL VALUE FUND, INC.
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 CAPITAL STOCK
The Fund has authorized one billion shares of $0.0001 par value capital stock in
the aggregate to be apportioned among each class of shares. Transactions in
shares of capital stock were as follows:
SIX MONTHS ENDED APRIL 30, 2005 YEAR ENDED OCTOBER 31, 2004
SHARES AMOUNT SHARES AMOUNT
- ------------------------------------------------------------------------------------------
CLASS A
Sold 3,124,722 $ 84,406,288 2,915,233 $ 75,259,490
Dividends and/or
distributions reinvested 685,235 17,829,822 49,931 1,200,855
Redeemed (1,608,442) (43,123,572) (1,750,878) (44,628,637)
--------------------------------------------------------------
Net increase 2,201,515 $ 59,112,538 1,214,286 $ 31,831,708
==============================================================
- ------------------------------------------------------------------------------------------
CLASS B
Sold 701,886 $ 17,652,834 778,873 $ 18,762,947
Dividends and/or
distributions reinvested 211,881 5,104,216 17,259 390,238
Redeemed (407,060) (10,239,108) (725,869) (17,417,877)
--------------------------------------------------------------
Net increase 506,707 $ 12,517,942 70,263 $ 1,735,308
==============================================================
- ------------------------------------------------------------------------------------------
CLASS C
Sold 421,027 $ 10,584,279 495,377 $ 11,909,650
Dividends and/or
distributions reinvested 110,035 2,654,057 8,074 182,716
Redeemed (172,562) (4,338,769) (498,192) (11,947,727)
--------------------------------------------------------------
Net increase 358,500 $ 8,899,567 5,259 $ 144,639
==============================================================
- ------------------------------------------------------------------------------------------
CLASS N
Sold 149,540 $ 4,017,829 208,517 $ 5,296,582
Dividends and/or
distributions reinvested 32,272 829,719 1,999 47,770
Redeemed (65,703) (1,770,790) (85,885) (2,176,592)
--------------------------------------------------------------
Net increase 116,109 $ 3,076,758 124,631 $ 3,167,760
==============================================================
29 | OPPENHEIMER QUEST CAPITAL VALUE FUND, INC.
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
3. PURCHASES AND SALES OF SECURITIES
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations, for the six months ended April 30, 2005, were
$160,413,602 and $131,676,497, 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. Effective January 1, 2005, the Fund
provides for a fee of 0.85% of the first $400 million of average annual net
assets of the Fund, 0.80% of the next $400 million, 0.75% of the next $400
million, 065% of the next $400 million, 0.60% of the next $400 million and 0.50%
of average annual net assets in excess of $2 billion. From January 1, 2004 thru
December 31, 2004, the annual advisory rate was 0.90% of the first $400 million
of average annual net assets of the Fund, 0.85% of the next $400 million, 0.80%
of the next $400 million, 0.70% of the next $400 million, 0.65% of the next $400
million and 0.60% of average annual net assets in excess of $2 billion.
- --------------------------------------------------------------------------------
ADMINISTRATION SERVICES. The Fund pays the Manager a fee of $1,500 per year for
preparing and filing the Fund's tax returns.
- --------------------------------------------------------------------------------
SUB-ADVISOR FEES. The Manager retains Oppenheimer Capital LLC (the
"Sub-Advisor") to provide the day-to-day portfolio management of the Fund. Under
the Sub-Advisory Agreement, the Manager pays the Sub-Advisor an annual fee in
monthly installments, based on the average daily net assets of the Fund. The fee
paid to the Sub-Advisor under the Sub-Advisory agreement is paid by the Manager,
not by the Fund. The fee is calculated as a percentage of the fee the Fund pays
the Manager. The rate is 40% of the advisory fee collected by the Manager based
on the net assets of the Fund as of February 28, 1997, and remaining 120 days
later, plus 30% of the fee collected by the Manager on assets in excess of that
amount. In each case the fee is calculated after any waivers of the Manager's
fee from the Fund. For the six months ended April 30, 2005, the Manager paid
$445,847 and $334,091 to the Sub-Advisor and OpCap Advisors, respectively for
their services to the Fund. The sub-advisory agreement between the Manager and
OpCap Advisors was terminated on December 31, 2004.
- --------------------------------------------------------------------------------
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
$437,069 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.
- --------------------------------------------------------------------------------
DISTRIBUTION AND SERVICE PLAN FOR CLASS A SHARES. The Fund has adopted a
Distribution and Service Plan for Class A shares. Under the Plan, the Fund pays
a service fee to the
30 | OPPENHEIMER QUEST CAPITAL VALUE FUND, INC.
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 the
Plan, the Fund may also pay an asset-based sales charge to the Distributor.
Beginning January 1, 2003, the Board of Directors has 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 Directors and its independent directors 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 $889,572, $435,943 and $164,798, 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 $191,495 $2,438 $52,939 $2,661 $1,506
- --------------------------------------------------------------------------------
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. During the six months ended April 30, 2005,
OFS waived $21,690 for Class N shares. This undertaking may be amended or
withdrawn at any time.
31 | OPPENHEIMER QUEST CAPITAL VALUE FUND, INC.
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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.
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. SECURITIES LENDING
The Fund lends portfolio securities from time to time in order to earn
additional income. In return, the Fund receives collateral in the form of US
Treasury obligations or cash, against the loaned securities and maintains
collateral in an amount not less than 100% of the market value of the loaned
securities during the period of the loan. The market value of the loaned
securities is determined at the close of business of the funds and any
additional required collateral is delivered to the Fund on the next business
day. If the borrower defaults on its obligation to return the securities loaned
because of insolvency or other reasons, the Fund could experience delays and
cost in recovering the securities loaned or in gaining access to the collateral.
Cash collateral is invested in cash equivalents. The Fund retains a portion of
the interest earned from the collateral. The Fund also continues to receive
interest or dividends paid on the securities loaned. As of April 30, 2005, the
Fund had on loan securities valued at $1,958,782. Collateral of $2,009,100 was
received for the loans, all of which was received in cash and subsequently
invested in approved instruments.
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7. 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-
32 | OPPENHEIMER QUEST CAPITAL VALUE FUND, INC.
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 QUEST CAPITAL VALUE FUND, INC.
PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES;
UPDATES TO STATEMENTS OF INVESTMENTS Unaudited
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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
http://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 QUEST CAPITAL VALUE FUND, INC.
BOARD APPROVAL OF THE FUND'S INVESTMENT
ADVISORY AGREEMENT Unaudited
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Each year, the Board of Directors (the "Board"), including a majority of the
independent Directors, is required to determine whether to renew the advisory
and sub-advisory agreements. The Investment Company Act of 1940, as amended,
requires that the Board request and evaluate, and that the Manager and
sub-adviser provide, such information as may be reasonably necessary to evaluate
the terms of the advisory and sub-advisory agreements. 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 and sub-advisory agreement for the current year, the Board
evaluated the nature and extent of the services provided by the Manager, OpCap
Advisors the Fund's former sub-adviser ("OpCap"), a subsidiary of Oppenheimer
Capital LLC ("Oppenheimer Capital"), and each of their 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. Until January 1, 2005,
OpCap provided the Fund with the services of the portfolio manager and OpCap's
investment team, who provided 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 and OpCap'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.
The Board also considered the quality of the services provided by OpCap.
OpCap had served as the Fund's investment adviser from the Fund's inception in
April 1980 until February 1997, when the Manager became the Fund's investment
adviser and OpCap was retained as the Fund's sub-adviser. Oppenheimer Capital,
the parent company of OpCap,
35 | OPPENHEIMER QUEST CAPITAL VALUE FUND, INC.
BOARD APPROVAL OF THE FUND'S INVESTMENT
ADVISORY AGREEMENT Unaudited / Continued
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has been an equity investment manager since its inception in 1969 and as of
September 2004 had over $24 billion in assets under management.
PORTFOLIO MANAGEMENT SERVICES AND PERFORMANCE. In its evaluation of the
quality of the portfolio management services provided, the Board considered the
experience of Louis P. Goldstein and the Manager's Small/Mid-Cap investment team
and analysts. Mr. Goldstein has had over 22 years of experience managing equity
investments. Mr. Goldstein has been primarily responsible for the day-to-day
management of the Fund's portfolio since February 1999 and is a Managing
Director of Oppenheimer Capital.
The Board also 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 multi-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-, three-, and five-year performance was better than
its peer group average. However its ten-year performance was slightly below its
peer group average.
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 multi-cap value funds and other funds with comparable assets levels
and distribution features. The Board noted that the Fund's contractual and
actual management fees and its total expenses were 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. The Board noted that the
Manager, not the Fund, pays the sub-advisory fee under the terms of the sub-
advisory agreement.
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, OpCap and Oppenheimer Capital have received
and may receive as a result of their relationship with the Fund, including
compensation paid to affiliates and research provided in connection with
permissible brokerage arrangements (soft dollar arrangements).
36 | OPPENHEIMER QUEST CAPITAL VALUE FUND, INC.
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, however the
Fund is not yet approaching its last management fee breakpoint.
CHANGES TO MANAGEMENT ARRANGEMENTS. Following discussion of the roles of
OpCap and its parent company Oppenheimer Capital in the management of the Fund's
portfolio investments, the Board and the Manager concluded that it was in the
best interests of the Fund and its shareholders for Oppenheimer Capital to
advise the Fund directly, rather than through its OpCap subsidiary. In addition,
the Board requested and the Manager agreed to a revised breakpoint schedule that
provides for a lower management fee, at an annual rate of 0.85% of the first
$400 million of average annual net assets of the Fund, 0.80% of the next $400
million, 0.75% of the next $400 million, 065% of the next $400 million, 0.60% of
the next $400 million and 0.50% of average annual net assets in excess of $2
billion.
CONCLUSIONS. The above factors, and the changes to the management
arrangements, were also considered by the independent Directors meeting
separately from the full Board, assisted by experienced counsel to the Fund.
Fund counsel is independent of the Manager and Oppenheimer Capital 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 Directors,
concluded that the nature, extent and quality of the services provided to the
Fund by the Manager, and to be provided by Oppenheimer Capital, 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,
and the revised fee structure adopted by the Board and the Manager are
reasonable in relation to the services provided. Accordingly, the Board elected
to continue the investment advisory agreement for another year and to approve
the sub-advisory agreement between the Manager and Oppenheimer Capital, which
became effective on January 1, 2005. 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.
OpCap and Oppenheimer Capital are not affiliated with the Manager.
37 | OPPENHEIMER QUEST CAPITAL VALUE FUND, INC.
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
directors. 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 directors 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 Directors 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 Directors of
the named Registrant, c/o the Secretary of the Registrant.
The Committee's process for identifying and evaluating nominees for
directors 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 Quest Capital Value Fund, Inc.
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