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 811-21208
OPPENHEIMER SELECT 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
(Name and address of agent for service)
Registrant's telephone number, including area code: (303) 768-3200
Date of fiscal year end: April 30
Date of reporting period: October 31, 2005
ITEM 1. REPORTS TO STOCKHOLDERS.
TOP HOLDINGS AND ALLOCATIONS
- --------------------------------------------------------------------------------
TOP TEN COMMON STOCK INDUSTRIES
- --------------------------------------------------------------------------------
Software 13.6%
- --------------------------------------------------------------------------------
Aerospace & Defense 9.5
- --------------------------------------------------------------------------------
Oil & Gas 9.1
- --------------------------------------------------------------------------------
Commercial Banks 8.5
- --------------------------------------------------------------------------------
Diversified Financial Services 7.8
- --------------------------------------------------------------------------------
Media 6.3
- --------------------------------------------------------------------------------
Insurance 5.3
- --------------------------------------------------------------------------------
Tobacco 4.9
- --------------------------------------------------------------------------------
Capital Markets 4.8
- --------------------------------------------------------------------------------
Electric Utilities 4.1
Portfolio holdings and allocations are subject to change. Percentages are as of
October 31, 2005, and are based on net assets.
TOP TEN COMMON STOCK HOLDINGS
- --------------------------------------------------------------------------------
Take-Two Interactive Software, Inc. 5.2%
- --------------------------------------------------------------------------------
Honeywell International, Inc. 4.9
- --------------------------------------------------------------------------------
Altria Group, Inc. 4.9
- --------------------------------------------------------------------------------
UBS AG 4.8
- --------------------------------------------------------------------------------
Wells Fargo & Co. 4.7
- --------------------------------------------------------------------------------
BP plc, ADR 4.1
- --------------------------------------------------------------------------------
JPMorgan Chase & Co. 3.9
- --------------------------------------------------------------------------------
Microsoft Corp. 3.9
- --------------------------------------------------------------------------------
Exxon Mobil Corp. 3.9
- --------------------------------------------------------------------------------
Synopsys, Inc. 3.1
Portfolio holdings and allocations are subject to change. Percentages are as of
October 31, 2005, and are based on net assets. For more current Fund holdings,
please visit www.oppenheimerfunds.com.
8 | OPPENHEIMER SELECT VALUE FUND
- --------------------------------------------------------------------------------
SECTOR ALLOCATION
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Financials 30.7%
Commercial Banks 8.6
Diversified Financial Services 8.0
Insurance 5.4
Capital Markets 4.9
Thrifts & Mortgage Finance 3.8
Information Technology 15.4
Industrials 13.7
Energy 11.3
Consumer Discretionary 6.5
Consumer Staples 6.0
Utilities 5.1
Materials 4.8
Health Care 4.6
Telecommunication Services 1.9
Portfolio holdings and allocations are subject to change. Percentages are as of
October 31, 2005, and are based on the total market value of common stocks.
- --------------------------------------------------------------------------------
9 | OPPENHEIMER SELECT VALUE FUND
NOTES
- --------------------------------------------------------------------------------
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.
Please remember this Fund has a limited operating history.
CLASS A shares of the Fund were first offered on 11/26/02. Unless otherwise
noted, Class A returns include the current maximum initial sales charge of
5.75%.
CLASS B shares of the Fund were first publicly offered on 2/27/04. Unless
otherwise noted, Class B returns include the applicable contingent deferred
sales charge of 5% (1-year). 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 2/27/04. 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.
CLASS N shares of the Fund were first publicly offered on 2/27/04. 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 0.75% asset-based sales charge.
10 | OPPENHEIMER SELECT VALUE FUND
CLASS Y shares of the Fund were first publicly offered on 2/27/04. Class Y
shares are offered only to certain institutional investors under special
agreement with the Distributor.
An explanation of the calculation of performance is in the Fund's Statement of
Additional Information.
11 | OPPENHEIMER SELECT VALUE FUND
FUND EXPENSES
- --------------------------------------------------------------------------------
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 October 31, 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
12 | OPPENHEIMER SELECT VALUE FUND
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
(5/1/05) (10/31/05) OCTOBER 31, 2005
- --------------------------------------------------------------------------------
Class A Actual $1,000.00 $1,078.00 $ 6.88
- --------------------------------------------------------------------------------
Class A Hypothetical 1,000.00 1,018.60 6.69
- --------------------------------------------------------------------------------
Class B Actual 1,000.00 1,072.70 11.82
- --------------------------------------------------------------------------------
Class B Hypothetical 1,000.00 1,013.86 11.49
- --------------------------------------------------------------------------------
Class C Actual 1,000.00 1,073.30 11.24
- --------------------------------------------------------------------------------
Class C Hypothetical 1,000.00 1,014.42 10.92
- --------------------------------------------------------------------------------
Class N Actual 1,000.00 1,077.00 8.41
- --------------------------------------------------------------------------------
Class N Hypothetical 1,000.00 1,017.14 8.17
- --------------------------------------------------------------------------------
Class Y Actual 1,000.00 1,080.50 4.68
- --------------------------------------------------------------------------------
Class Y Hypothetical 1,000.00 1,020.72 4.54
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 184/365
(to reflect the one-half year period). Those annualized expense ratios based on
the 6-month period ended October 31, 2005 are as follows:
CLASS EXPENSE RATIOS
- ----------------------------------
Class A 1.31%
- ----------------------------------
Class B 2.25
- ----------------------------------
Class C 2.14
- ----------------------------------
Class N 1.60
- ----------------------------------
Class Y 0.89
The expense ratios reflect voluntary waivers or reimbursements of expenses by
the Fund's Manager and 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.
- --------------------------------------------------------------------------------
13 | OPPENHEIMER SELECT VALUE FUND
STATEMENT OF INVESTMENTS October 31, 2005 / Unaudited
- --------------------------------------------------------------------------------
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
COMMON STOCKS--97.7%
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY--6.3%
- --------------------------------------------------------------------------------
MEDIA--6.3%
Liberty Global, Inc.,
Series A 41,064 $ 1,017,155
- --------------------------------------------------------------------------------
Liberty Global, Inc.,
Series C 1 43,264 1,026,222
- --------------------------------------------------------------------------------
News Corp., Inc., Cl. A 59,900 853,575
-----------
2,896,952
- --------------------------------------------------------------------------------
CONSUMER STAPLES--5.9%
- --------------------------------------------------------------------------------
BEVERAGES--1.0%
Constellation Brands,
Inc., Cl. A 1 19,100 449,614
- --------------------------------------------------------------------------------
TOBACCO--4.9%
Altria Group, Inc. 29,900 2,243,995
- --------------------------------------------------------------------------------
ENERGY--11.0%
- --------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES--1.9%
Halliburton Co. 13,900 821,490
- --------------------------------------------------------------------------------
Hercules Offshore,
Inc. 1 2,400 52,248
-----------
873,738
- --------------------------------------------------------------------------------
OIL & GAS--9.1%
BP plc, ADR 28,500 1,892,400
- --------------------------------------------------------------------------------
Exxon Mobil Corp. 31,700 1,779,638
- --------------------------------------------------------------------------------
TotalFinaElf SA,
Sponsored ADR 4,000 504,080
-----------
4,176,118
- --------------------------------------------------------------------------------
FINANCIALS--30.1%
- --------------------------------------------------------------------------------
CAPITAL MARKETS--4.8%
UBS AG 25,500 2,184,585
- --------------------------------------------------------------------------------
COMMERCIAL BANKS--8.5%
Bank of America
Corp. 19,064 833,859
- --------------------------------------------------------------------------------
Wachovia Corp. 18,200 919,464
- --------------------------------------------------------------------------------
Wells Fargo & Co. 35,900 2,161,180
-----------
3,914,503
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES--7.8%
Capital One
Financial Corp. 14,200 $ 1,084,170
- --------------------------------------------------------------------------------
JPMorgan
Chase & Co. 49,400 1,809,028
- --------------------------------------------------------------------------------
Lehman Brothers
Holdings, Inc. 5,600 670,152
-----------
3,563,350
- --------------------------------------------------------------------------------
INSURANCE--5.3%
Aspen Insurance
Holdings Ltd. 3,600 87,084
- --------------------------------------------------------------------------------
Genworth Financial,
Inc., Cl. A 44,100 1,397,529
- --------------------------------------------------------------------------------
Phoenix Cos., Inc.
(The) 34,200 442,890
- --------------------------------------------------------------------------------
Platinum Underwriters
Holdings Ltd. 17,400 495,726
-----------
2,423,229
- --------------------------------------------------------------------------------
THRIFTS & MORTGAGE FINANCE--3.7%
Commercial Capital
Bancorp, Inc. 29,700 476,982
- --------------------------------------------------------------------------------
Countrywide
Financial Corp. 23,700 752,949
- --------------------------------------------------------------------------------
Freddie Mac 7,500 460,125
-----------
1,690,056
- --------------------------------------------------------------------------------
HEALTH CARE--4.5%
- --------------------------------------------------------------------------------
BIOTECHNOLOGY--0.9%
Wyeth 9,000 401,040
- --------------------------------------------------------------------------------
HEALTH CARE PROVIDERS & SERVICES--0.9%
Manor Care, Inc. 11,200 417,200
- --------------------------------------------------------------------------------
PHARMACEUTICALS--2.7%
Sanofi-Aventis
SA, ADR 22,800 914,736
- --------------------------------------------------------------------------------
Watson
Pharmaceuticals, Inc. 1 9,400 324,864
-----------
1,239,600
14 | OPPENHEIMER SELECT VALUE FUND
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
INDUSTRIALS--13.3%
- --------------------------------------------------------------------------------
AEROSPACE & DEFENSE--9.5%
Honeywell
International, Inc. 65,700 $ 2,246,940
- --------------------------------------------------------------------------------
Orbital Sciences
Corp. 1 79,700 926,911
- --------------------------------------------------------------------------------
Raytheon Co. 8,400 310,380
- --------------------------------------------------------------------------------
United Technologies
Corp. 17,600 902,528
-----------
4,386,759
- --------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES--2.9%
Cendant Corp. 76,300 1,329,146
- --------------------------------------------------------------------------------
DIVERSIFIED CONSUMER SERVICES--0.9%
Corinthian
Colleges, Inc. 1 32,500 404,300
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY--15.1%
- --------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS--0.5%
Hutchinson
Technology, Inc. 1 8,200 203,360
- --------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT--1.0%
ATI Technologies,
Inc. 1 31,700 458,065
- --------------------------------------------------------------------------------
SOFTWARE--13.6%
Compuware Corp. 1 26,200 211,958
- --------------------------------------------------------------------------------
Microsoft Corp. 70,300 1,806,710
- --------------------------------------------------------------------------------
Novell, Inc. 1 57,600 438,912
- --------------------------------------------------------------------------------
Synopsys, Inc. 1 74,700 1,415,565
- --------------------------------------------------------------------------------
Take-Two Interactive
Software, Inc. 1 114,700 2,368,555
-----------
6,241,700
- --------------------------------------------------------------------------------
MATERIALS--4.7%
- --------------------------------------------------------------------------------
CHEMICALS--2.2%
Praxair, Inc. 20,500 1,012,905
- --------------------------------------------------------------------------------
CONSTRUCTION MATERIALS--1.5%
Texas Industries, Inc. 13,400 664,640
- --------------------------------------------------------------------------------
METALS & MINING--1.0%
Phelps Dodge Corp. 3,900 469,834
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES--1.8%
- --------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES--1.8%
IDT Corp., Cl. B 1 33,100 $ 395,214
- --------------------------------------------------------------------------------
Sprint Nextel Corp. 19,500 454,545
-----------
849,759
- --------------------------------------------------------------------------------
UTILITIES--5.0%
- --------------------------------------------------------------------------------
ELECTRIC UTILITIES--4.1%
AES Corp. (The) 1 61,800 982,002
- --------------------------------------------------------------------------------
CMS Energy Corp. 1 25,400 378,714
- --------------------------------------------------------------------------------
Reliant Energy, Inc. 1 41,400 525,780
-----------
1,886,496
- --------------------------------------------------------------------------------
GAS UTILITIES--0.9%
Sempra Energy 8,900 394,270
-----------
Total Common Stocks
(Cost $42,847,799) 44,775,214
PRINCIPAL
AMOUNT
- --------------------------------------------------------------------------------
JOINT REPURCHASE AGREEMENTS--2.2%
- --------------------------------------------------------------------------------
Undivided interest of 0.16% in joint repurchase
agreement (Principal Amount/Value $647,082,000,
with a maturity value of $647,153,179) with UBS
Warburg LLC, 3.96%, dated 10/31/05, to be
repurchased at $1,008,111 on 11/1/05,
collateralized by Federal National
Mortgage Assn., 5%, 10/1/35,
with a value of $661,717,556
(Cost $1,008,000) $1,008,000 1,008,000
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS,
AT VALUE
(COST $43,855,799) 99.9% 45,783,214
- --------------------------------------------------------------------------------
OTHER ASSETS
NET OF LIABILITIES 0.1 29,620
---------------------------
NET ASSETS 100.0% $45,812,834
===========================
FOOTNOTE TO STATEMENT OF INVESTMENTS
1. Non-income producing security.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
15 | OPPENHEIMER SELECT VALUE FUND
STATEMENT OF ASSETS AND LIABILITIES Unaudited
- --------------------------------------------------------------------------------
OCTOBER 31, 2005
- --------------------------------------------------------------------------------
ASSETS
- --------------------------------------------------------------------------------
Investments, at value (cost $43,855,799)--see accompanying
statement of investments $45,783,214
- --------------------------------------------------------------------------------
Cash 25,369
- --------------------------------------------------------------------------------
Receivables and other assets:
Shares of beneficial interest sold 475,900
Investments sold 172,183
Interest and dividends 5,772
Other 874
-----------
Total assets 46,463,312
- --------------------------------------------------------------------------------
LIABILITIES
- --------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 560,424
Shares of beneficial interest redeemed 49,495
Distribution and service plan fees 8,668
Transfer and shareholder servicing agent fees 6,437
Shareholder communications 4,375
Trustees' compensation 805
Other 20,274
-----------
Total liabilities 650,478
- --------------------------------------------------------------------------------
NET ASSETS $45,812,834
===========
- --------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- --------------------------------------------------------------------------------
Par value of shares of beneficial interest $ 2,869
- --------------------------------------------------------------------------------
Additional paid-in capital 41,959,129
- --------------------------------------------------------------------------------
Accumulated net investment income 6,979
- --------------------------------------------------------------------------------
Accumulated net realized gain on investments 1,916,442
- --------------------------------------------------------------------------------
Net unrealized appreciation on investments 1,927,415
-----------
NET ASSETS $45,812,834
===========
16 | OPPENHEIMER SELECT VALUE FUND
- ---------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
- ---------------------------------------------------------------------------------------------------------
Class A Shares:
Net asset value and redemption price per share (based on net assets of $30,316,670 and
1,890,462 shares of beneficial interest outstanding) $16.04
Maximum offering price per share (net asset value plus sales charge of 5.75% of offering price) $17.02
- ---------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $4,941,104 and 312,728 shares of
beneficial interest outstanding) $15.80
- ---------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $8,607,268 and 544,428 shares of
beneficial interest outstanding) $15.81
- ---------------------------------------------------------------------------------------------------------
Class N Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $1,142,495 and 71,645 shares of
beneficial interest outstanding) $15.95
- ---------------------------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based on net assets of
$805,297 and 49,987 shares of beneficial interest outstanding) $16.11
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
17 | OPPENHEIMER SELECT VALUE FUND
STATEMENT OF OPERATIONS Unaudited
- --------------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED OCTOBER 31, 2005
- --------------------------------------------------------------------------------
INVESTMENT INCOME
- --------------------------------------------------------------------------------
Dividends (net of foreign withholding taxes of $2,136) $ 230,162
- --------------------------------------------------------------------------------
Interest 24,768
- --------------------------------------------------------------------------------
Other income 48
------------
Total investment income 254,978
- --------------------------------------------------------------------------------
EXPENSES
- --------------------------------------------------------------------------------
Management fees 121,926
- --------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 24,661
Class B 17,984
Class C 33,158
Class N 2,500
- --------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 17,138
Class B 5,852
Class C 6,557
Class N 951
Class Y 34
- --------------------------------------------------------------------------------
Shareholder communications:
Class A 3,038
Class B 2,180
Class C 2,540
Class N 152
- --------------------------------------------------------------------------------
Legal, auditing and other professional fees 13,828
- --------------------------------------------------------------------------------
Trustees' compensation 2,596
- --------------------------------------------------------------------------------
Custodian fees and expenses 331
- --------------------------------------------------------------------------------
Other 5,278
------------
Total expenses 260,704
Less reduction to custodian expenses (27)
Less waivers and reimbursements of expenses (1,511)
------------
Net expenses 259,166
- --------------------------------------------------------------------------------
NET INVESTMENT LOSS (4,188)
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
- --------------------------------------------------------------------------------
Net realized gain on investments 1,222,588
- --------------------------------------------------------------------------------
Net change in unrealized appreciation on investments 428,400
- --------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 1,646,800
============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
18 | OPPENHEIMER SELECT VALUE FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
OCTOBER 31, 2005 APRIL 30,
(UNAUDITED) 2005
- --------------------------------------------------------------------------------------------------------------------
OPERATIONS
- --------------------------------------------------------------------------------------------------------------------
Net investment income (loss) $ (4,188) $ 11,390
- --------------------------------------------------------------------------------------------------------------------
Net realized gain 1,222,588 1,135,798
- --------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation 428,400 775,185
---------------------------------
Net increase in net assets resulting from operations 1,646,800 1,922,373
- --------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
- --------------------------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A -- (468,589)
Class B -- (38,753)
Class C -- (92,118)
Class N -- (19,532)
Class Y -- (6,091)
- --------------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
- --------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from beneficial interest transactions:
Class A 16,452,518 5,041,524
Class B 2,638,351 1,961,523
Class C 3,821,296 4,148,679
Class N 316,277 720,725
Class Y 381,113 382,994
- --------------------------------------------------------------------------------------------------------------------
NET ASSETS
- --------------------------------------------------------------------------------------------------------------------
Total increase 25,256,355 13,552,735
- --------------------------------------------------------------------------------------------------------------------
Beginning of period 20,556,479 7,003,744
---------------------------------
End of period (including accumulated net investment income
of $6,979 and $11,167, respectively) $ 45,812,834 $ 20,556,479
=================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
19 | OPPENHEIMER SELECT VALUE FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
OCTOBER 31, 2005 APRIL 30,
CLASS A (UNAUDITED) 2005 2004 2003 1
- --------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- --------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 14.88 $ 13.52 $ 10.17 $ 10.00
- --------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .02 2 .04 2 -- 3 (.03)
Net realized and unrealized gain 1.14 1.84 3.75 .20
-----------------------------------------------------
Total from investment operations 1.16 1.88 3.75 .17
- --------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Distributions from net realized gain -- (.52) (.40) --
- --------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 16.04 $ 14.88 $ 13.52 $ 10.17
=====================================================
- --------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 4 7.80% 13.89% 37.02% 1.70%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $30,317 $12,842 $ 6,706 $ 3,411
- --------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $20,605 $11,568 $ 4,706 $ 3,151
- --------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 5
Net investment income (loss) 0.23% 0.27% (0.04)% (0.85)%
Total expenses 1.31% 1.35% 1.96% 2.60%
Expenses after payments and waivers and
reduction to custodian expenses 1.31% 1.33% 1.50% 2.35%
- --------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 38% 85% 102% 66%
1. For the period from November 26, 2002 (commencement of operations) to April
30, 2003.
2. Per share amounts calculated based on the average shares outstanding during
the period.
3. Less than $0.005 per share.
4. Assumes an investment at net asset value 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 return. 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.
5. Annualized for periods of less than one full year.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
20 | OPPENHEIMER SELECT VALUE FUND
SIX MONTHS YEAR
ENDED ENDED
OCTOBER 31, 2005 APRIL 30,
CLASS B (UNAUDITED) 2005 2004 1
- ---------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ---------------------------------------------------------------------------------------------------
Net asset value, beginning of period $14.73 $13.51 $14.19
- ---------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.05) 2 (.09) 2 (.01)
Net realized and unrealized gain (loss) 1.12 1.83 (.67)
------------------------------------
Total from investment operations 1.07 1.74 (.68)
- ---------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Distributions from net realized gain -- (.52) --
- ---------------------------------------------------------------------------------------------------
Net asset value, end of period $15.80 $14.73 $13.51
====================================
- ---------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 7.27% 12.85% (4.79)%
- ---------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ---------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $4,941 $2,121 $ 116
- ---------------------------------------------------------------------------------------------------
Average net assets (in thousands) $3,588 $ 948 $ 44
- ---------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment loss (0.68)% (0.65)% (1.19)%
Total expenses 2.32% 2.73% 5.71%
Expenses after payments and waivers and
reduction to custodian expenses 2.25% 2.25% 2.25%
- ---------------------------------------------------------------------------------------------------
Portfolio turnover rate 38% 85% 102%
1. For the period from February 27, 2004 (inception of offering) to April 30,
2004.
2. Per share amounts calculated based on the average shares outstanding during
the period.
3. Assumes an investment at net asset value 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 return. 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.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
21 | OPPENHEIMER SELECT VALUE FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
OCTOBER 31, 2005 APRIL 30,
CLASS C (UNAUDITED) 2005 2004 1
- ---------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ---------------------------------------------------------------------------------------------------
Net asset value, beginning of period $14.73 $13.52 $14.19
- ---------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (.04) 2 (.10) 2 (.01)
Net realized and unrealized gain (loss) 1.12 1.83 (.66)
------------------------------------
Total from investment operations 1.08 1.73 (.67)
- ---------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Distributions from net realized gain -- (.52) --
- ---------------------------------------------------------------------------------------------------
Net asset value, end of period $15.81 $14.73 $13.52
====================================
- ---------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 7.33% 12.77% (4.72)%
- ---------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ---------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $8,607 $4,439 $ 174
- ---------------------------------------------------------------------------------------------------
Average net assets (in thousands) $6,601 $2,155 $ 51
- ---------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment loss (0.55)% (0.66)% (1.01)%
Total expenses 2.15% 2.47% 5.48%
Expenses after payments and waivers and
reduction to custodian expenses 2.14% 2.25% 2.25%
- ---------------------------------------------------------------------------------------------------
Portfolio turnover rate 38% 85% 102%
1. For the period from February 27, 2004 (inception of offering) to April 30,
2004.
2. Per share amounts calculated based on the average shares outstanding during
the period.
3. Assumes an investment at net asset value 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 return. 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.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
22 | OPPENHEIMER SELECT VALUE FUND
SIX MONTHS YEAR
ENDED ENDED
OCTOBER 31, 2005 APRIL 30,
CLASS N (UNAUDITED) 2005 2004 1
- ---------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ---------------------------------------------------------------------------------------------------
Net asset value, beginning of period $14.81 $13.52 $14.19
- ---------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) -- 2,3 (.02) 2 (.01)
Net realized and unrealized gain (loss) 1.14 1.83 (.66)
------------------------------------
Total from investment operations 1.14 1.81 (.67)
- ---------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Distributions from net realized gain -- (.52) --
- ---------------------------------------------------------------------------------------------------
Net asset value, end of period $15.95 $14.81 $13.52
====================================
- ---------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 4 7.70% 13.37% (4.72)%
- ---------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ---------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $1,143 $ 763 $ 7
- ---------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 995 $ 438 $ 3
- ---------------------------------------------------------------------------------------------------
Ratios to average net assets: 5
Net investment income (loss) 0.03% (0.13)% (0.73)%
Total expenses 1.60% 1.79% 4.96%
Expenses after payments and waivers and
reduction to custodian expenses 1.60% 1.74% 1.75%
- ---------------------------------------------------------------------------------------------------
Portfolio turnover rate 38% 85% 102%
1. For the period from February 27, 2004 (inception of offering) to April 30,
2004.
2. Per share amounts calculated based on the average shares outstanding during
the period.
3. Less than $0.005 per share.
4. Assumes an investment at net asset value 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 return. 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.
5. Annualized for periods of less than one full year.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
23 | OPPENHEIMER SELECT VALUE FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
OCTOBER 31, 2005 APRIL 30,
CLASS Y (UNAUDITED) 2005 2004 1
- ---------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ---------------------------------------------------------------------------------------------------
Net asset value, beginning of period $14.91 $13.53 $14.19
- ---------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .05 2 .06 2 .01
Net realized and unrealized gain (loss) 1.15 1.84 (.67)
------------------------------------
Total from investment operations 1.20 1.90 (.66)
- ---------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Distributions from net realized gain -- (.52) --
- ---------------------------------------------------------------------------------------------------
Net asset value, end of period $16.11 $14.91 $13.53
====================================
- ---------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3 8.05% 14.03% (4.65)%
- ---------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ---------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 805 $ 392 $ 1
- ---------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 597 $ 175 $ 1
- ---------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income 0.67% 0.42% 0.26%
Total expenses 0.89% 1.18% 4.47%
Expenses after payments and waivers and
reduction to custodian expenses 0.89% 1.18% 1.25%
- ---------------------------------------------------------------------------------------------------
Portfolio turnover rate 38% 85% 102%
1. For the period from February 27, 2004 (inception of offering) to April 30,
2004.
2. Per share amounts calculated based on the average shares outstanding during
the period.
3. Assumes an investment at net asset value 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 return. 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.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
24 | OPPENHEIMER SELECT VALUE FUND
NOTES TO FINANCIAL STATEMENTS Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Select Value Fund (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 over the
long-term. The Fund's investment advisor is OppenheimerFunds, Inc. (the
Manager).
The Fund offers Class A, Class B, Class C, Class N and Class Y shares.
Class A shares are sold at their offering price, which is normally net asset
value plus a front-end sales charge. Class B, Class C and Class N shares are
sold without a front-end sales charge but may be subject to a contingent
deferred sales charge (CDSC). Class N shares are sold only through retirement
plans. Retirement plans that offer Class N shares may impose charges on those
accounts. Class Y shares are sold to certain institutional investors without
either a front-end sales charge or a CDSC, however, the institutional investor
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. No such plan has been adopted for
Class Y shares. Class B shares will automatically convert to Class A shares six
years after the date of purchase.
The following is a summary of significant accounting policies consistently
followed by the Fund.
- --------------------------------------------------------------------------------
SECURITIES VALUATION. 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 may be
valued primarily using dealer-supplied valuations or a portfolio pricing service
authorized by the Board of Trustees. Securities listed or traded on National
Stock Exchanges or other domestic exchanges are valued based on the last sale
price of the security traded on that exchange prior to the time when the Fund's
assets are valued. Securities traded on NASDAQ are valued based on the closing
price provided by NASDAQ prior to the time when the Fund's assets are valued. In
the absence of a sale, the security is valued at the last sale price on the
prior trading day, if it is within the spread of the closing "bid" and "asked"
prices, and if not, at the closing bid price. Securities traded on foreign
exchanges are valued based on the last sale price on the principal exchange on
which the security is traded, in the country that is identified by the portfolio
pricing service, prior to the time when the Fund's assets are valued. In the
absence of a sale, the security is valued at the official closing price on the
principal exchange. 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
25 | OPPENHEIMER SELECT VALUE FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
such principal exchange at its trading session ending 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
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
26 | OPPENHEIMER SELECT VALUE FUND
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 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.
- --------------------------------------------------------------------------------
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.
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 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
27 | OPPENHEIMER SELECT VALUE FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
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 $0.001 par value shares of
beneficial interest of each class. Transactions in shares of beneficial interest
were as follows:
SIX MONTHS ENDED OCTOBER 31, 2005 YEAR ENDED APRIL 30, 2005
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------------
CLASS A
Sold 1,161,997 $18,591,431 825,365 $11,967,549
Dividends and/or
distributions reinvested -- -- 14,341 214,552
Redeemed (134,720) (2,138,913) (472,397) (7,140,577)
----------------------------------------------------------------
Net increase 1,027,277 $16,452,518 367,309 $ 5,041,524
================================================================
- ---------------------------------------------------------------------------------------------------
CLASS B
Sold 196,926 $ 3,083,750 152,451 $ 2,217,211
Dividends and/or
distributions reinvested -- -- 2,497 37,084
Redeemed (28,203) (445,399) (19,498) (292,772)
----------------------------------------------------------------
Net increase 168,723 $ 2,638,351 135,450 $ 1,961,523
================================================================
- ---------------------------------------------------------------------------------------------------
CLASS C
Sold 261,945 $ 4,117,846 300,926 $ 4,332,793
Dividends and/or
distributions reinvested -- -- 5,998 89,076
Redeemed (18,893) (296,550) (18,455) (273,190)
----------------------------------------------------------------
Net increase 243,052 $ 3,821,296 288,469 $ 4,148,679
================================================================
28 | OPPENHEIMER SELECT VALUE FUND
SIX MONTHS ENDED OCTOBER 31, 2005 YEAR ENDED APRIL 30, 2005
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------------
CLASS N
Sold 22,172 $ 348,672 49,756 $ 702,114
Dividends and/or
distributions reinvested -- -- 1,275 19,002
Redeemed (2,025) (32,395) (26) (391)
----------------------------------------------------------------
Net increase 20,147 $ 316,277 51,005 $ 720,725
================================================================
- ---------------------------------------------------------------------------------------------------
CLASS Y
Sold 29,919 $ 478,984 26,606 $ 388,568
Dividends and/or
distributions reinvested -- -- 404 6,054
Redeemed (6,239) (97,871) (773) (11,628)
----------------------------------------------------------------
Net increase 23,680 $ 381,113 26,237 $ 382,994
================================================================
- --------------------------------------------------------------------------------
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 October 31, 2005, were as
follows:
PURCHASES SALES
- --------------------------------------------------------------------------------
Investment securities $35,001,595 $12,041,718
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
MANAGEMENT FEES. Management fees paid to the Manager were in accordance with the
investment advisory agreement with the Fund which provides for a fee at an
annual rate of 0.75% of the first $200 million of average annual net assets of
the Fund, 0.72% of the next $200 million, 0.69% of the next $200 million, 0.66%
of the next $200 million, and 0.60% of average annual net assets in excess of
$800 million.
- --------------------------------------------------------------------------------
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 October 31, 2005, the Fund paid
$26,918 to OFS for services to the Fund.
Additionally, Class Y shares are subject to minimum fees of $10,000 per
annum for assets of $10 million or more. The Class Y shares are subject to the
minimum fees in the event that the per account fee does not equal or exceed the
applicable minimum fees. OFS may voluntarily waive the minimum fees.
- --------------------------------------------------------------------------------
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. It reimburses the Distributor for a portion of its costs incurred for
services provided to accounts that hold Class A shares. Reimbursement is made
quarterly at an annual rate
29 | OPPENHEIMER SELECT VALUE FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued
of up to 0.25% of the average annual net assets of Class A shares of the Fund.
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. Any
unreimbursed expenses the Distributor incurs with respect to Class A shares in
any fiscal year cannot be recovered in subsequent years. 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 October 31, 2005 for Class B, Class C
and Class N shares were $55,216, $86,026 and $9,600, 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
- -----------------------------------------------------------------------------------------------------------------
October 31, 2005 $46,749 $ -- $867 $712 $486
- --------------------------------------------------------------------------------
WAIVERS AND REIMBURSEMENTS OF EXPENSES. Effective February 27, 2004, the Manager
has voluntarily undertaken to reimburse the Fund for total expenses exceeding
the following limits: 1.50% for Class A shares, 2.25% for Class B shares, 2.25%
for Class C shares, 1.75% for Class N shares and 1.25% for Class Y shares.
During the six months ended October 31, 2005, the Manager reimbursed the Fund
$1,179 and $261 for Class B and Class C shares, respectively. That voluntary
undertaking may be revised or terminated by the Manager at any time without
notice to shareholders.
30 | OPPENHEIMER SELECT VALUE FUND
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 October 31, 2005, OFS waived $71 for Class B shares.
This undertaking may be amended or withdrawn at any time.
- --------------------------------------------------------------------------------
5. 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") excluding 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.
31 | OPPENHEIMER SELECT VALUE FUND
REPORT OF SHAREHOLDER MEETING Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
On September 26, 2005, a shareholder meeting of the Oppenheimer Select Value
Fund was held at which the eleven Trustees identified below were elected
(Proposal No. 1) and the sub-proposals in (Proposal No. 2) were approved as
described in the Fund's proxy statement for that meeting. The following is a
report of the votes cast:
- --------------------------------------------------------------------------------
PROPOSAL NO.1:
NOMINEE FOR WITHHELD TOTAL
- --------------------------------------------------------------------------------
TRUSTEES
Matthew P. Fink 1,121,187.637 13,571.670 1,134,759.307
Robert G. Galli 1,073,691.455 61,067.852 1,134,759.307
Phillip A. Griffiths 1,113,619.076 21,140.231 1,134,759.307
Mary F. Miller 1,120,616.244 14,143.063 1,134,759.307
Joel W. Motley 1,082,665.123 52,094.184 1,134,759.307
John V. Murphy 1,119,639.786 15,119.521 1,134,759.307
Kenneth A. Randall 1,110,666.118 24,093.189 1,134,759.307
Russell S. Reynolds, Jr. 1,110,666.118 24,093.189 1,134,759.307
Joseph M. Wikler 1,120,920.224 13,839.083 1,134,759.307
Peter I. Wold 1,120,920.224 13,839.083 1,134,759.307
Clayton K. Yeutter 1,112,213.968 22,545.339 1,134,759.307
- --------------------------------------------------------------------------------
PROPOSAL NO. 2:
BROKER
FOR AGAINST ABSTAIN NON-VOTE TOTAL
- --------------------------------------------------------------------------------
2C: Proposal to re-classify the policy on Investing in Other Investment
Companies
872,426.143 36,793.795 32,171.369 193,368.000 1,134,759.307
2F: Proposal to change the policy on Senior Securities
872,827.963 33,588.734 34,974.610 193,368.000 1,134,759.307
32 | OPPENHEIMER SELECT 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 the 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.
33 | OPPENHEIMER SELECT 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. AUDIT COMMITTEE OF LISTED REGISTRANTS
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS.
Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES 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 FUND'S GOVERNANCE COMMITTEE PROVISIONS WITH RESPECT TO NOMINATIONS OF
DIRECTORS/TRUSTEES TO THE RESPECTIVE BOARDS
1. The Fund's Governance Committee (the "Committee") will evaluate potential
Board candidates to assess their qualifications. The Committee shall have
the authority, upon approval of the Board, to retain an executive search
firm to assist in this effort. The Committee may consider recommendations
by business and personal contacts of current Board members and by
executive search firms which the Committee may engage from time to time
and may also consider shareholder recommendations. The Committee may
consider the advice and recommendation of the Funds' investment manager
and its affiliates in making the selection.
2. The Committee shall screen candidates for Board membership. The Committee
has not established specific qualifications that it believes must be met
by a trustee nominee. In evaluating trustee nominees, the Committee
considers, among other things, an individual's
background, skills, and experience; whether the individual is an
"interested person" as defined in the Investment Company Act of 1940; and
whether the individual would be deemed an "audit committee financial
expert" within the meaning of applicable SEC rules. The Committee also
considers whether the individual's background, skills, and experience will
complement the background, skills, and experience of other nominees and
will contribute to the Board. There are no differences in the manner in
which the Committee evaluates nominees for trustees based on whether the
nominee is recommended by a shareholder.
3. The Committee may consider nominations from shareholders for the Board at
such times as the Committee meets to consider new nominees for the Board.
The Committee shall have the sole discretion to determine the candidates
to present to the Board and, in such cases where required, to
shareholders. Recommendations for trustee nominees should, at a minimum,
be accompanied by the following:
o the name, address, and business, educational, and/or other pertinent
background of the person being recommended;
o a statement concerning whether the person is an "interested person"
as defined in the Investment Company Act of 1940;
o any other information that the Funds would be required to include in
a proxy statement concerning the person if he or she was nominated;
and
o the name and address of the person submitting the recommendation
and, if that person is a shareholder, the period for which that
person held Fund shares.
The recommendation also can include any additional information which the
person submitting it believes would assist the Committee in evaluating the
recommendation.
4. Shareholders should note that a person who owns securities issued by
Massachusetts Mutual Life Insurance Company (the parent company of the
Funds' investment adviser) would be deemed an "interested person" under
the Investment Company Act of 1940. In addition, certain other
relationships with Massachusetts Mutual Life Insurance Company or its
subsidiaries, with registered broker-dealers, or with the Funds' outside
legal counsel may cause a person to be deemed an "interested person."
5. Before the Committee decides to nominate an individual as a trustee,
Committee members and other directors customarily interview the individual
in person. In addition, the individual customarily is asked to complete a
detailed questionnaire which is designed to elicit information which must
be disclosed under SEC and stock exchange rules and to determine whether
the individual is subject to any statutory disqualification from serving
as a trustee of a registered investment company.
ITEM 11. CONTROLS AND PROCEDURES.
Based on their evaluation of the 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 October 31, 2005, the registrant's principal executive
officer and principal financial officer found the registrant's disclosure
controls and procedures to provide reasonable assurances that information
required to be disclosed by the 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.
There have been no changes in the registrant's internal controls over financial
reporting that occurred during the registrant's second fiscal quarter of the
period covered by this report that have materially affected, or are reasonably
likely to materially affect, the registrant's internal control over financial
reporting.
ITEM 12. EXHIBITS.
(a) (1) Not applicable to semiannual reports.
(2) Exhibits attached hereto.
(3) Not applicable.
(b) Exhibit attached hereto.
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 Select Value Fund
By: /s/ John V. Murphy
------------------
John V. Murphy
Principal Executive Officer
Date: December 20, 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: December 20, 2005
By: /s/ Brian W. Wixted
-------------------
Brian W. Wixted
Principal Financial Officer
Date: December 20, 2005