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 811-3346
--------
OPPENHEIMER SERIES FUND, INC.
-----------------------------
(Exact name of registrant as specified in charter)
6803 SOUTH TUCSON WAY, CENTENNIAL, COLORADO 80112-3924
------------------------------------------------------
(Address of principal executive offices) (Zip code)
Robert G. Zack, Esq.
OppenheimerFunds, Inc.
TWO WORLD FINANCIAL CENTER, NEW YORK, NEW YORK 10281-1008
---------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (303) 768-3200
--------------
Date of fiscal year end: OCTOBER 31
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Date of reporting period: 04/30/2007
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ITEM 1. REPORTS TO STOCKHOLDERS.
TOP HOLDINGS AND ALLOCATIONS
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TOP TEN COMMON STOCK INDUSTRIES
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Aerospace & Defense 9.4%
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Oil & Gas 8.3
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Commercial Banks 8.1
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Media 6.4
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Capital Markets 6.0
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Insurance 5.5
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Food & Staples Retailing 5.1
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Pharmaceuticals 4.7
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Diversified Financial Services 4.5
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Electric Utilities 4.3
Portfolio holdings and allocations are subject to change. Percentages are as of
April 30, 2007, and are based on net assets.
TOP TEN COMMON STOCK HOLDINGS
- --------------------------------------------------------------------------------
Liberty Global, Inc., Series C 5.1%
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UBS AG 5.0
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Exxon Mobil Corp. 4.8
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United Technologies Corp. 4.5
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Wachovia Corp. 4.3
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Costco Wholesale Corp. 4.1
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Boeing Co. 3.9
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Wells Fargo & Co. 3.8
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Everest Re Group Ltd. 3.8
- --------------------------------------------------------------------------------
Exelon Corp. 3.7
Portfolio holdings and allocations are subject to change. Percentages are as of
April 30, 2007, 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 VALUE FUND
TOP HOLDINGS AND ALLOCATIONS
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- --------------------------------------------------------------------------------
SECTOR ALLOCATION
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Financials 30.1%
Commercial Banks 8.7
Capital Markets 6.5
Insurance 6.0
Diversified Financial Services 4.9
Consumer Finance 2.3
Thrifts & Mortgage Finance 1.7
Industrials 15.3
Energy 10.6
Consumer Staples 9.6
Consumer Discretionary 9.1
Health Care 7.4
Utilities 7.2
Information Technology 6.3
Telecommunication Services 2.8
Materials 1.6
Portfolio holdings and allocations are subject to change. Percentages are as of
April 30, 2007, and are based on the total market value of common stocks.
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10 | OPPENHEIMER VALUE FUND
NOTES
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Total returns include changes in share price and reinvestment of dividends and
capital gains distributions in a hypothetical investment for the periods
shown. Cumulative total returns are not annualized. The Fund's total returns
shown do not reflect the deduction of income taxes on an individual's
investment. Taxes may reduce your actual investment returns on income or gains
paid by the Fund or any gains you may realize if you sell your shares. INVESTORS
SHOULD CONSIDER THE FUND'S INVESTMENT OBJECTIVES, RISKS AND OTHER CHARGES AND
EXPENSES CAREFULLY BEFORE INVESTING. THE FUND'S PROSPECTUS CONTAINS THIS AND
OTHER INFORMATION ABOUT THE FUND, AND MAY BE OBTAINED BY ASKING YOUR FINANCIAL
ADVISOR, CALLING US AT 1.800.525.7048 OR VISITING OUR WEBSITE AT
WWW.OPPENHEIMERFUNDS.COM. READ THE PROSPECTUS CAREFULLY BEFORE INVESTING.
The Fund's investment strategy and focus can change over time. The mention of
specific fund holdings does not constitute a recommendation by OppenheimerFunds,
Inc.
CLASS A shares of the Fund were first publicly offered on 9/16/85. 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 10/2/95. 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 return for Class B uses
Class A performance for the period after conversion. Class B shares are subject
to an annual 0.75% asset-based sales charge.
CLASS C shares of the Fund were first publicly offered on 5/1/96. 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 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.
CLASS Y shares of the Fund were first publicly offered on 12/16/96. 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 VALUE FUND
FUND EXPENSES
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FUND EXPENSES. As a shareholder of the Fund, you incur two types of costs: (1)
transaction costs, which may include sales charges (loads) on purchase payments,
contingent deferred sales charges on redemptions; and redemption fees, if any;
and (2) ongoing costs, including management fees; distribution and service fees;
and other Fund expenses. These examples are intended to help you understand your
ongoing costs (in dollars) of investing in the Fund and to compare these costs
with the ongoing costs of investing in other mutual funds.
The examples are based on an investment of $1,000.00 invested at the beginning
of the period and held for the entire 6-month period ended April 30, 2007.
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 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
(11/1/06) (4/30/07) APRIL 30, 2007
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Class A Actual $ 1,000.00 $ 1,137.30 $ 4.78
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Class A Hypothetical 1,000.00 1,020.33 4.52
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Class B Actual 1,000.00 1,132.60 9.29
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Class B Hypothetical 1,000.00 1,016.12 8.79
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Class C Actual 1,000.00 1,132.90 8.97
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Class C Hypothetical 1,000.00 1,016.41 8.48
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Class N Actual 1,000.00 1,135.10 7.06
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Class N Hypothetical 1,000.00 1,018.20 6.68
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Class Y Actual 1,000.00 1,139.20 2.87
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Class Y Hypothetical 1,000.00 1,022.12 2.71
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,
excluding indirect expenses from affiliated fund, based on the 6-month period
ended April 30, 2007 are as follows:
CLASS EXPENSE RATIOS
- ---------------------------
Class A 0.90%
- ---------------------------
Class B 1.75
- ---------------------------
Class C 1.69
- ---------------------------
Class N 1.33
- ---------------------------
Class Y 0.54
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.
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13 | OPPENHEIMER VALUE FUND
STATEMENT OF INVESTMENTS April 30, 2007 / Unaudited
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VALUE
SHARES SEE NOTE 1
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COMMON STOCKS--92.1%
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CONSUMER DISCRETIONARY--8.4%
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MEDIA--6.4%
Liberty Global, Inc.,
Series C 1 4,135,308 $ 138,160,640
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News Corp., Inc., Cl. A 1,608,200 36,007,598
-----------------
174,168,238
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SPECIALTY RETAIL--2.0%
Office Depot, Inc. 1 1,598,730 53,749,303
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CONSUMER STAPLES--8.8%
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FOOD & STAPLES RETAILING--5.1%
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Costco
Wholesale Corp. 2,051,252 109,885,570
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SUPERVALU, Inc. 621,420 28,523,178
-----------------
138,408,748
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FOOD PRODUCTS--0.9%
ConAgra Foods, Inc. 1,008,001 24,776,665
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TOBACCO--2.8%
Altria Group, Inc. 1,108,000 76,363,360
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ENERGY--9.8%
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ENERGY EQUIPMENT & SERVICES--1.5%
Halliburton Co. 1,293,400 41,091,318
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OIL & GAS--8.3%
Exxon Mobil Corp. 1,648,200 130,834,116
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Murphy Oil Corp. 488,300 27,071,352
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Petroleo Brasileiro
SA, ADR 256,600 25,975,618
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Total SA,
Sponsored ADR 543,100 40,021,039
-----------------
223,902,125
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FINANCIALS--27.8%
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CAPITAL MARKETS--6.0%
E*TRADE
Financial Corp. 1 1,248,641 27,569,993
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UBS AG 2,093,950 135,897,355
-----------------
163,467,348
VALUE
SHARES SEE NOTE 1
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COMMERCIAL BANKS--8.1%
Wachovia Corp. 2,095,000 $ 116,356,300
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Wells Fargo & Co. 2,847,820 102,208,260
-----------------
218,564,560
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CONSUMER FINANCE--2.1%
American Express Co. 329,800 20,008,966
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Capital One
Financial Corp. 499,234 37,073,117
-----------------
57,082,083
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DIVERSIFIED FINANCIAL SERVICES--4.5%
Bank of America
Corp. 1,041,178 52,995,960
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Citigroup, Inc. 1,279,900 68,628,238
-----------------
121,624,198
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INSURANCE--5.5%
Everest Re Group Ltd. 1,012,100 101,857,744
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Genworth
Financial, Inc., Cl. A 687,600 25,090,524
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Platinum
Underwriters
Holdings Ltd. 685,570 23,460,205
-----------------
150,408,473
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THRIFTS & MORTGAGE FINANCE--1.6%
Freddie Mac 656,103 42,502,352
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HEALTH CARE--6.8%
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BIOTECHNOLOGY--0.2%
Vanda
Pharmaceuticals, Inc. 1 287,400 6,181,974
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HEALTH CARE PROVIDERS & SERVICES--1.9%
Medco Health
Solutions, Inc. 1 348,306 27,174,834
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WellPoint, Inc. 1 317,680 25,087,190
-----------------
52,262,024
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PHARMACEUTICALS--4.7%
Novartis AG, ADR 976,375 56,717,624
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Sanofi-Aventis
SA, ADR 1,508,455 69,177,746
-----------------
125,895,370
14 | OPPENHEIMER VALUE FUND
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
INDUSTRIALS--14.1%
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AEROSPACE & DEFENSE--9.4%
Alliant
Techsystems, Inc. 1 302,610 $ 28,182,069
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Boeing Co. 1,145,600 106,540,800
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United
Technologies Corp. 1,804,800 121,156,224
-----------------
255,879,093
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INDUSTRIAL CONGLOMERATES--2.0%
Siemens AG,
Sponsored ADR 456,200 55,186,514
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MACHINERY--2.7%
Navistar
International Corp. 1 1,304,503 72,439,052
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INFORMATION TECHNOLOGY--5.8%
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COMMUNICATIONS EQUIPMENT--1.0%
Cisco Systems, Inc. 1 1,018,400 27,232,016
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SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT--1.1%
Texas Instruments,
Inc. 836,173 28,739,266
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SOFTWARE--3.7%
Microsoft Corp. 928,900 27,811,266
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Novell, Inc. 1 4,134,834 30,184,288
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Take-Two Interactive
Software, Inc. 1 2,258,125 43,288,256
-----------------
101,283,810
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MATERIALS--1.5%
- --------------------------------------------------------------------------------
CHEMICALS--1.5%
Lubrizol Corp. (The) 688,240 41,253,106
VALUE
SHARES SEE NOTE 1
- --------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES--2.5%
- --------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES--2.5%
Verizon
Communications, Inc. 1,802,700 $ 68,827,086
- --------------------------------------------------------------------------------
UTILITIES--6.6%
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ELECTRIC UTILITIES--4.3%
Exelon Corp. 1,314,517 99,127,727
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Reliant Energy, Inc. 1 795,130 17,707,545
-----------------
116,835,272
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ENERGY TRADERS--0.5%
Dynegy, Inc., Cl. A 1 1,498,010 14,096,274
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MULTI-UTILITIES & UNREGULATED POWER--1.8%
CMS Energy Corp. 1,527,800 28,294,856
- --------------------------------------------------------------------------------
Sempra Energy 315,230 20,010,800
-----------------
48,305,656
-----------------
Total Common Stocks
(Cost $2,131,937,894) 2,500,525,284
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INVESTMENTS IN AFFILIATED COMPANIES--6.2%
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Oppenheimer Institutional Money
Market Fund, Cl. E,
5.21% 2,3
(Cost $167,661,771) 167,661,771 167,661,771
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS,
AT VALUE
(COST $2,299,599,665) 98.3% 2,668,187,055
- --------------------------------------------------------------------------------
OTHER ASSETS
NET OF LIABILITIES 1.7 44,901,372
---------------------------------
NET ASSETS 100.0% $ 2,713,088,427
=================================
15 | OPPENHEIMER VALUE FUND
STATEMENT OF INVESTMENTS Unaudited / Continued
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FOOTNOTES TO STATEMENT OF INVESTMENTS
1. Non-income producing security.
2. Rate shown is the 7-day yield as of April 30, 2007.
3. Is or was an affiliate, as defined in the Investment Company Act of 1940, at
or during the period ended April 30, 2007, by virtue of the Fund owning at least
5% of the voting securities of the issuer or as a result of the Fund and the
issuer having the same investment advisor. Transactions during the period in
which the issuer was an affiliate are as follows:
SHARES SHARES
OCTOBER 31, GROSS GROSS APRIL 30,
2006 ADDITIONS REDUCTIONS 2007
- ----------------------------------------------------------------------------------------------------------------
Oppenheimer Institutional
Money Market Fund, Cl. E, 5.21% 112,899,057 689,879,708 635,116,994 167,661,771
VALUE DIVIDEND
SEE NOTE 1 INCOME
- ----------------------------------------------------------------------------------------------------------------
Oppenheimer Institutional
Money Market Fund, Cl. E, 5.21% $ 167,661,771 $ 2,886,588
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
16 | OPPENHEIMER VALUE FUND
STATEMENT OF ASSETS AND LIABILITIES Unaudited
- --------------------------------------------------------------------------------
April 30, 2007
- ---------------------------------------------------------------------------------------------------------
ASSETS
- ---------------------------------------------------------------------------------------------------------
Investments, at value--see accompanying statement of
investments:
Unaffiliated companies (cost $2,131,937,894) $ 2,500,525,284
Affiliated companies (cost $167,661,771) 167,661,771
----------------
2,668,187,055
- ---------------------------------------------------------------------------------------------------------
Cash 131,405
- ---------------------------------------------------------------------------------------------------------
Receivables and other assets:
Investments sold 73,408,640
Shares of capital stock sold 5,736,746
Interest and dividends 2,953,900
Other 73,133
----------------
Total assets 2,750,490,879
- ---------------------------------------------------------------------------------------------------------
LIABILITIES
- ---------------------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 32,749,747
Shares of capital stock redeemed 3,519,875
Distribution and service plan fees 410,489
Transfer and shareholder servicing agent fees 330,812
Directors' compensation 234,944
Shareholder communications 124,418
Other 32,167
----------------
Total liabilities 37,402,452
- ---------------------------------------------------------------------------------------------------------
NET ASSETS $ 2,713,088,427
================
- ---------------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- ---------------------------------------------------------------------------------------------------------
Par value of shares of capital stock $ 95,520
- ---------------------------------------------------------------------------------------------------------
Additional paid-in capital 2,161,763,403
- ---------------------------------------------------------------------------------------------------------
Accumulated net investment income 7,482,149
- ---------------------------------------------------------------------------------------------------------
Accumulated net realized gain on investments 175,159,965
- ---------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments 368,587,390
----------------
NET ASSETS $ 2,713,088,427
================
17 | OPPENHEIMER VALUE FUND
STATEMENT OF ASSETS AND LIABILITIES Unaudited / Continued
- --------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
- ----------------------------------------------------------------------------------------------------------
Class A Shares:
Net asset value and redemption price per share (based on net assets of $1,484,927,903
and 52,145,264 shares of capital stock outstanding) $ 28.48
Maximum offering price per share (net asset value plus sales charge of 5.75% of offering price) $ 30.22
- ----------------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $163,312,261 and 5,887,723 shares
of capital stock outstanding) $ 27.74
- ----------------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $281,352,634 and 10,290,738 shares
of capital stock outstanding) $ 27.34
- ----------------------------------------------------------------------------------------------------------
Class N Shares:
Net asset value, redemption price (excludes applicable contingent deferred sales charge)
and offering price per share (based on net assets of $161,348,860 and 5,775,311 shares
of capital stock outstanding) $ 27.94
- ----------------------------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based on net assets
of $622,146,769 and 21,420,784 shares of capital stock outstanding) $ 29.04
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
18 | OPPENHEIMER VALUE FUND
STATEMENT OF OPERATIONS Unaudited
- --------------------------------------------------------------------------------
For the Six Months Ended April 30, 2007
- ---------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
- ---------------------------------------------------------------------------------------------------------
Dividends:
Unaffiliated companies (net of foreign withholding taxes of $977,289) $ 19,946,361
Affiliated companies 2,886,588
- ---------------------------------------------------------------------------------------------------------
Interest 28,424
--------------
Total investment income 22,861,373
- ---------------------------------------------------------------------------------------------------------
EXPENSES
- ---------------------------------------------------------------------------------------------------------
Management fees 5,748,201
- ---------------------------------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 1,668,823
Class B 758,939
Class C 1,293,633
Class N 348,535
- ---------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 1,069,545
Class B 175,126
Class C 237,076
Class N 243,934
Class Y 130,790
- ---------------------------------------------------------------------------------------------------------
Shareholder communications:
Class A 101,110
Class B 29,123
Class C 22,740
Class N 4,414
Class Y 521
- ---------------------------------------------------------------------------------------------------------
Directors' compensation 110,830
- ---------------------------------------------------------------------------------------------------------
Custodian fees and expenses 7,955
- ---------------------------------------------------------------------------------------------------------
Accounting service fees 7,500
- ---------------------------------------------------------------------------------------------------------
Other 96,835
--------------
Total expenses 12,055,630
Less reduction to custodian expenses (1,888)
Less waivers and reimbursements of expenses (63,243)
--------------
Net expenses 11,990,499
- ---------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 10,870,874
- ---------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
- ---------------------------------------------------------------------------------------------------------
Net realized gain on investments 178,130,086
- ---------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation on investments 128,786,597
- ---------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 317,787,557
==============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
19 | OPPENHEIMER VALUE FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
APRIL 30, 2007 OCTOBER 31,
(UNAUDITED) 2006
- ----------------------------------------------------------------------------------------------------------
OPERATIONS
- ----------------------------------------------------------------------------------------------------------
Net investment income $ 10,870,874 $ 16,113,044
- ----------------------------------------------------------------------------------------------------------
Net realized gain 178,130,086 84,152,807
- ----------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation 128,786,597 154,457,168
----------------------------------
Net increase in net assets resulting from operations 317,787,557 254,723,019
- ----------------------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
- ----------------------------------------------------------------------------------------------------------
Dividends from net investment income:
Class A (10,342,422) (6,280,289)
Class B -- --
Class C (301,643) (257,682)
Class N (550,852) (403,059)
Class Y (4,974,836) (1,646,648)
----------------------------------
(16,169,753) (8,587,678)
- ----------------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (42,823,796) (37,624,988)
Class B (4,983,146) (5,717,096)
Class C (8,531,829) (7,961,584)
Class N (4,238,631) (3,484,148)
Class Y (14,646,074) (7,335,784)
----------------------------------
(75,223,476) (62,123,600)
- ----------------------------------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS
- ----------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from capital stock transactions:
Class A 77,576,490 339,532,658
Class B 2,167,915 7,356,215
Class C 9,614,976 56,840,156
Class N 25,497,363 35,703,304
Class Y 140,884,089 256,201,657
----------------------------------
255,740,833 695,633,990
- ----------------------------------------------------------------------------------------------------------
NET ASSETS
- ----------------------------------------------------------------------------------------------------------
Total increase 482,135,161 879,645,731
- ----------------------------------------------------------------------------------------------------------
Beginning of period 2,230,953,266 1,351,307,535
----------------------------------
End of period (including accumulated net investment
income of $7,482,149 and $12,781,028, respectively) $ 2,713,088,427 $ 2,230,953,266
==================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
20 | OPPENHEIMER VALUE FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
APRIL 30, 2007 OCT. 31,
CLASS A (UNAUDITED) 2006 2005 2004 2003 2002
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 26.08 $ 23.79 $ 21.15 $ 18.46 $ 14.78 $ 15.93
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .13 1 .25 1 .19 1 .13 1 .04 .07
Net realized and unrealized gain (loss) 3.34 3.24 2.75 2.61 3.67 (1.21)
-----------------------------------------------------------------------------------
Total from investment operations 3.47 3.49 2.94 2.74 3.71 (1.14)
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.21) (.17) (.11) (.05) (.03) (.01)
Distributions from net realized gain (.86) (1.03) (.19) -- -- --
-----------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (1.07) (1.20) (.30) (.05) (.03) (.01)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 28.48 $ 26.08 $ 23.79 $ 21.15 $ 18.46 $ 14.78
===================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 13.73% 15.20% 13.99% 14.85% 25.18% (7.15)%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 1,484,928 $ 1,282,691 $ 835,793 $ 378,785 $ 215,019 $ 141,563
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 1,369,936 $ 1,052,054 $ 600,426 $ 303,560 $ 166,143 $ 166,319
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 0.98% 1.03% 0.83% 0.66% 0.37% 0.38%
Total expenses 0.91% 4 0.93% 4 0.99% 1.07% 1.22% 1.22%
Expenses after payments, waivers and/or
reimbursements and reduction
to custodian expenses 0.90% 0.93% 0.99% 1.07% 1.22% 1.22%
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 70% 101% 72% 85% 117% 150%
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. Expenses including indirect expenses from affiliated fund were as follows:
Six Months Ended April 30, 2007 0.91%
Year Ended October 31, 2006 0.93
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
21 | OPPENHEIMER VALUE FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
APRIL 30, 2007 OCT. 31,
CLASS B (UNAUDITED) 2006 2005 2004 2003 2002
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 25.33 $ 23.17 $ 20.68 $ 18.18 $ 14.64 $ 15.89
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .02 1 .04 1 (.01) 1 (.05) 1 (.06) (.10)
Net realized and unrealized gain (loss) 3.25 3.15 2.69 2.55 3.60 (1.15)
----------------------------------------------------------------------------------
Total from investment operations 3.27 3.19 2.68 2.50 3.54 (1.25)
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to
shareholders:
Dividends from net investment income -- -- -- -- -- --
Distributions from net realized gain (.86) (1.03) (.19) -- -- --
----------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.86) (1.03) (.19) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 27.74 $ 25.33 $ 23.17 $ 20.68 $ 18.18 $ 14.64
==================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 13.26% 14.19% 13.02% 13.75% 24.18% (7.87)%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 163,312 $ 147,034 $ 127,258 $ 85,683 $ 60,858 $ 47,323
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 153,348 $ 136,256 $ 109,545 $ 77,341 $ 51,476 $ 56,200
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income (loss) 0.13% 0.19% (0.03)% (0.24)% (0.44)% (0.40)%
Total expenses 1.76% 4 1.81% 4 1.87% 1.98% 2.14% 2.01%
Expenses after payments, waivers and/or
reimbursements and reduction to custodian
expenses 1.75% 1.81% 1.87% 1.98% 2.05% 2.01%
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 70% 101% 72% 85% 117% 150%
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. Expenses including indirect expenses from affiliated fund were as follows:
Six Months Ended April 30, 2007 1.76%
Year Ended October 31, 2006 1.81
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
22 | OPPENHEIMER VALUE FUND
SIX MONTHS YEAR
ENDED ENDED
APRIL 30, 2007 OCT. 31,
CLASS C (UNAUDITED) 2006 2005 2004 2003 2002
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 25.00 $ 22.89 $ 20.41 $ 17.93 $ 14.44 $ 15.67
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .02 1 .06 1 .01 1 (.03) 1 .03 (.01)
Net realized and unrealized gain (loss) 3.21 3.11 2.66 2.51 3.46 (1.22)
----------------------------------------------------------------------------------
Total from investment operations 3.23 3.17 2.67 2.48 3.49 (1.23)
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.03) (.03) -- -- -- --
Distributions from net realized gain (.86) (1.03) (.19) -- -- --
----------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.89) (1.06) (.19) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 27.34 $ 25.00 $ 22.89 $ 20.41 $ 17.93 $ 14.44
==================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 13.29% 14.31% 13.14% 13.83% 24.17% (7.85)%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 281,352 $ 247,730 $ 170,710 $ 79,501 $ 32,625 $ 13,466
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 261,161 $ 212,087 $ 124,605 $ 61,387 $ 21,366 $ 12,977
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income (loss) 0.19% 0.25% 0.04% (0.17)% (0.49)% (0.41)%
Total expenses 1.69% 4 1.72% 4 1.77% 1.89% 2.07% 2.00%
Expenses after payments, waivers and/or
reimbursements and reduction
to custodian expenses 1.69% 1.71% 1.77% 1.89% 2.07% 2.00%
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 70% 101% 72% 85% 117% 150%
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. Expenses including indirect expenses from affiliated fund were as follows:
Six Months Ended April 30, 2007 1.69%
Year Ended October 31, 2006 1.72
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
23 | OPPENHEIMER VALUE FUND
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
APRIL 30, 2007 OCT. 31,
CLASS N (UNAUDITED) 2006 2005 2004 2003 2002
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 25.56 $ 23.38 $ 20.80 $ 18.25 $ 14.68 $ 15.90
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .07 1 .16 1 .11 1 .06 1 .03 .05
Net realized and unrealized gain (loss) 3.28 3.17 2.72 2.56 3.59 (1.22)
---------------------------------------------------------------------------------
Total from investment operations 3.35 3.33 2.83 2.62 3.62 (1.17)
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to
shareholders:
Dividends from net investment income (.11) (.12) (.06) (.07) (.05) (.05)
Distributions from net realized gain (.86) (1.03) (.19) -- -- --
---------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.97) (1.15) (.25) (.07) (.05) (.05)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 27.94 $ 25.56 $ 23.38 $ 20.80 $ 18.25 $ 14.68
=================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 13.51% 14.73% 13.68% 14.39% 24.70% (7.41)%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 161,349 $ 122,588 $ 76,058 $ 33,100 $ 7,417 $ 1,201
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 140,899 $ 104,142 $ 53,166 $ 23,344 $ 3,275 $ 508
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income (loss) 0.56% 0.66% 0.50% 0.28% (0.03)% 0.00%
Total expenses 1.35% 4 1.33% 4 1.30% 1.45% 1.61% 1.49%
Expenses after payments, waivers and/or
reimbursements and reduction to custodian
expenses 1.33% 1.31% 1.30% 1.45% 1.55% 1.49%
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 70% 101% 72% 85% 117% 150%
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. Expenses including indirect expenses from affiliated fund were as follows:
Six Months Ended April 30, 2007 1.35%
Year Ended October 31, 2006 1.33
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
24 | OPPENHEIMER VALUE FUND
SIX MONTHS YEAR
ENDED ENDED
APRIL 30, 2007 OCT. 31,
CLASS Y (UNAUDITED) 2006 2005 2004 2003 2002
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 26.61 $ 24.23 $ 21.54 $ 18.79 $ 14.96 $ 16.20
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) 1 .18 .33 .26 .24 (1.86) .06
Net realized and unrealized gain (loss) 3.40 3.31 2.81 2.62 5.71 1 (1.21) 1
-----------------------------------------------------------------------------------
Total from investment operations 3.58 3.64 3.07 2.86 3.85 (1.15)
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to
shareholders:
Dividends from net investment income (.29) (.23) (.19) (.11) (.02) (.09)
Distributions from net realized gain (.86) (1.03) (.19) -- -- --
-----------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (1.15) (1.26) (.38) (.11) (.02) (.09)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 29.04 $ 26.61 $ 24.23 $ 21.54 $ 18.79 $ 14.96
===================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2 13.92% 15.58% 14.38% 15.30% 25.78% (7.18)%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 622,147 $ 430,910 $ 141,489 $ 31,914 $ 2,617 $ 1,074
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 525,466 $ 287,929 $ 83,000 $ 8,398 $ 1,558 $ 955
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 1.35% 1.32% 1.10% 1.17% 0.76% 0.33%
Total expenses 0.54% 4 0.57% 4 0.70% 0.61% 1.19% 3.77%
Expenses after payments, waivers and/or
reimbursements and reduction
to custodian expenses 0.54% 0.57% 0.70% 0.61% 0.80% 1.23%
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 70% 101% 72% 85% 117% 150%
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. Expenses including indirect expenses from affiliated fund were as follows:
Six Months Ended April 30, 2007 0.54%
Year Ended October 31, 2006 0.57
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
25 | OPPENHEIMER VALUE FUND
NOTES TO FINANCIAL STATEMENTS Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Value Fund (the Fund), a series of Oppenheimer Series Fund, Inc.
(the Company), is registered under the Investment Company Act of 1940, as
amended, as an open-end management investment company. The Fund's investment
objective is to seek long-term growth of capital by investing primarily in
common stocks with low price-earnings ratios and better-than-anticipated
earnings. Realization of current income is a secondary consideration. 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 Directors. 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(R) 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, as 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
26 | OPPENHEIMER VALUE FUND
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. Options are valued daily based upon
the last sale price on the principal exchange on which the option is traded.
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. Investments in open-end registered
investment companies (including affiliated funds) are valued at that fund's net
asset value. 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.
- --------------------------------------------------------------------------------
INVESTMENT IN OPPENHEIMER INSTITUTIONAL MONEY MARKET FUND. The Fund is permitted
to invest daily available cash balances in an affiliated money market fund. The
Fund may invest the available cash in Class E shares of Oppenheimer
Institutional Money Market Fund ("IMMF") which seeks current income and
stability of principal. IMMF is a registered open-end management investment
company, regulated as a money market fund under the Investment Company Act of
1940, as amended. The Manager is also the investment advisor of IMMF. The Fund's
investment in IMMF is included in the Statement of Investments. As a
shareholder, the Fund is subject to its proportional share of IMMF's Class E
expenses, including its management fee. The Manager will waive fees and/or
27 | OPPENHEIMER VALUE FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
reimburse Fund expenses in an amount equal to the indirect management fees
incurred through the Fund's investment in IMMF.
- --------------------------------------------------------------------------------
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 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, 2007, the Fund had available for federal income tax
purposes an estimated capital loss carryforward of zero. This estimated capital
loss carryforward represents carryforward as of the end of the last fiscal year,
increased for losses deferred under tax accounting rules to the current fiscal
year and is increased or decreased by capital losses or gains realized in the
first six months of the current fiscal year. As of April 30, 2007, it is
estimated that the Fund will utilize $237,010 of capital loss carryforward to
offset realized capital gains. During the fiscal year ended October 31, 2006,
the Fund utilized $444,391 of capital loss carryforward to offset capital gains
realized in that fiscal year.
As of October 31, 2006, the Fund had available for federal income tax
purposes straddle losses of $237,010.
- --------------------------------------------------------------------------------
DIRECTORS' COMPENSATION. The Fund has adopted an unfunded retirement plan (the
"Plan") for the Fund's independent directors. Benefits are based on years of
service and fees paid to each director during their period of service. The Plan
was frozen with respect to adding new participants effective December 31, 2006
(the "Freeze Date") and existing Plan Participants as of the Freeze Date will
continue to receive accrued benefits under the Plan. Active independent
directors as of the Freeze Date have each elected a distribution method with
respect to their benefits under the Plan. During the six months ended April 30,
2007, the Fund's projected benefit obligations were increased by $84,228 and
payments of $33,783 were made to retired directors, resulting in an accumulated
liability of $165,790 as of April 30, 2007.
28 | OPPENHEIMER VALUE FUND
The Board of Directors has adopted a compensation deferral 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 compensation deferral 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, to the extent they are not
offset by positive cash balances maintained by the Fund, 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.
- --------------------------------------------------------------------------------
INDEMNIFICATIONS. The Fund's organizational documents provide current and former
directors and officers with a limited indemnification against liabilities
arising in connection with the performance of their duties to the Fund. In the
normal course of business, the Fund may also enter into contracts that provide
general indemnifications. The Fund's maximum exposure under these arrangements
is unknown as this would be dependent on future claims that may be made against
the Fund. The risk of material loss from such claims is considered remote.
29 | OPPENHEIMER VALUE FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
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 600 million shares of $0.001 par value capital stock.
Transactions in shares of capital stock were as follows:
SIX MONTHS ENDED APRIL 30, 2007 YEAR ENDED OCTOBER 31, 2006
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------
CLASS A
Sold 7,291,870 $ 194,761,206 23,919,621 $ 579,171,413
Dividends and/or
distributions reinvested 1,736,208 44,880,968 1,598,871 37,701,387
Redeemed (6,072,229) (162,065,684) (11,459,357) (277,340,142)
---------------------------------------------------------------
Net increase 2,955,849 $ 77,576,490 14,059,135 $ 339,532,658
===============================================================
- ---------------------------------------------------------------------------------------------
CLASS B
Sold 749,990 $ 19,562,194 2,381,194 $ 56,210,847
Dividends and/or
distributions reinvested 183,722 4,640,816 229,580 5,300,995
Redeemed (851,075) (22,035,095) (2,297,903) (54,155,627)
---------------------------------------------------------------
Net increase 82,637 $ 2,167,915 312,871 $ 7,356,215
===============================================================
- ---------------------------------------------------------------------------------------------
CLASS C
Sold 1,340,938 $ 34,399,950 4,078,571 $ 94,942,821
Dividends and/or
distributions reinvested 283,585 7,061,273 287,974 6,557,164
Redeemed (1,243,422) (31,846,247) (1,913,350) (44,659,829)
---------------------------------------------------------------
Net increase 381,101 $ 9,614,976 2,453,195 $ 56,840,156
===============================================================
- ---------------------------------------------------------------------------------------------
CLASS N
Sold 1,502,988 $ 39,302,035 3,285,579 $ 77,644,333
Dividends and/or
distributions reinvested 174,323 4,427,792 158,150 3,669,069
Redeemed (697,698) (18,232,464) (1,901,403) (45,610,098)
---------------------------------------------------------------
Net increase 979,613 $ 25,497,363 1,542,326 $ 35,703,304
===============================================================
- ---------------------------------------------------------------------------------------------
CLASS Y
Sold 5,981,776 $ 162,739,269 13,353,906 $ 330,058,444
Dividends and/or
distributions reinvested 744,490 19,602,409 366,523 8,792,882
Redeemed (1,498,702) (41,457,589) (3,366,592) (82,649,669)
---------------------------------------------------------------
Net increase 5,227,564 $ 140,884,089 10,353,837 $ 256,201,657
===============================================================
30 | OPPENHEIMER VALUE FUND
- --------------------------------------------------------------------------------
3. PURCHASES AND SALES OF SECURITIES
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations and investments in IMMF, for the six months ended
April 30, 2007, were as follows:
PURCHASES SALES
- ----------------------------------------------------------------------
Investment securities $1,757,571,816 $1,619,699,301
- --------------------------------------------------------------------------------
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 average net assets as shown in the following table:
FEE SCHEDULE
----------------------------------
Up to $300 million 0.625%
Next $100 million 0.500
Over $400 million 0.450
- --------------------------------------------------------------------------------
ACCOUNTING FEES. The Manager acts as the accounting agent for the Fund at an
annual fee of $15,000, plus out-of-pocket costs and expenses reasonably
incurred.
- --------------------------------------------------------------------------------
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, 2007, the Fund paid
$1,833,735 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
periodically at an annual rate 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 periodically 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
periods. Fees incurred by the Fund under the plan are detailed in the Statement
of Operations.
31 | OPPENHEIMER VALUE FUND
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
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4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued
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 determines its
uncompensated expenses under the plan at calendar quarter ends. The
Distributor's aggregate uncompensated expenses under the plan at March 31, 2007
for Class B, Class C and Class N shares were $2,792,500, $2,279,263 and
$1,233,775, 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 following table 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, 2007 $501,369 $9,695 $98,400 $9,763 $3,699
- --------------------------------------------------------------------------------
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, 2007,
OFS waived $8,253 for Class N shares. This undertaking may be amended or
withdrawn at any time.
The Manager will waive fees and/or reimburse Fund expenses in an amount
equal to the indirect management fees incurred through the Fund's investment in
IMMF. During the six months ended April 30, 2007, the Manager waived $54,990 for
IMMF management fees.
32 | OPPENHEIMER VALUE FUND
- --------------------------------------------------------------------------------
5. RECENT ACCOUNTING PRONOUNCEMENTS
In June 2006, the Financial Accounting Standards Board ("FASB") issued FASB
Interpretation No. 48 ("FIN 48"), ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES.
FIN 48 clarifies the accounting for uncertainty in income taxes recognized in an
enterprise's financial statements in accordance with FASB Statement No. 109,
ACCOUNTING FOR INCOME TAXES. FIN 48 requires the evaluation of tax positions
taken in the course of preparing the Fund's tax returns to determine whether it
is "more-likely-than-not" that tax positions taken in the Fund's tax return will
be ultimately sustained. A tax liability and expense must be recorded in respect
of any tax position that, in Management's judgment, will not be fully realized.
FIN 48 is effective for fiscal years beginning after December 15, 2006. As of
April 30, 2007, the Manager has evaluated the implications of FIN 48 and does
not currently anticipate a material impact to the Fund's financial statements.
The Manager will continue to monitor the Fund's tax positions prospectively for
potential future impacts.
In September 2006, the FASB issued Statement of Financial Accounting
Standards ("SFAS") No. 157, FAIR VALUE MEASUREMENTS. This standard establishes a
single authoritative definition of fair value, sets out a framework for
measuring fair value and expands disclosures about fair value measurements. SFAS
No. 157 applies to fair value measurements already required or permitted by
existing standards. SFAS No. 157 is effective for financial statements issued
for fiscal years beginning after November 15, 2007, and interim periods within
those fiscal years. As of April 30, 2007, the Manager does not believe the
adoption of SFAS No. 157 will materially impact the financial statement amounts;
however, additional disclosures may be required about the inputs used to develop
the measurements and the effect of certain of the measurements on changes in net
assets for the period.
33 | OPPENHEIMER 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.
34 | OPPENHEIMER VALUE FUND
BOARD APPROVAL OF THE FUND'S INVESTMENT
ADVISORY AGREEMENT Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Each year, the Board of Directors (the "Board"), including a majority of the
independent Directors, is required to determine whether to renew the Fund's
investment advisory agreement (the "Agreement"). The Investment Company Act of
1940, as amended, requires that the Board request and evaluate, and that the
Manager provide, such information as may be reasonably necessary to evaluate the
terms of the Agreement. The Board employs an independent consultant to prepare a
report that provides information, including comparative information that the
Board requests for that purpose. In addition, the Board receives information
throughout the year regarding Fund services, fees, expenses and performance.
The Manager and the independent consultant provided information to the
Board on the following factors: (i) the nature, quality and extent of the
Manager's services, (ii) the investment performance of the Fund and the Manager,
(iii) the fees and expenses of the Fund, including comparative expense
information, (iv) the profitability of the Manager and its affiliates, including
an analysis of the cost of providing services by the Manager and its affiliates,
(v) the extent to which economies of scale are realized as the Fund grows and
whether fee levels reflect these economies of scale for Fund investors and (vi)
other benefits to the Manager from its relationship with the Fund. The Board was
aware that there are alternatives to retaining the Manager.
NATURE AND EXTENT OF SERVICES. The Board considered information about the
nature and extent of the services provided to the Fund and information regarding
the Manager's key personnel who provide such services. The Manager's duties
include providing the Fund with the services of the portfolio manager and the
Manager's investment team, who provide research, analysis and other advisory
services in regard to the Fund's investments; securities trading services;
oversight of third party service providers; monitoring compliance with
applicable Fund policies and procedures and adherence to the Fund's investment
restrictions. The Manager is responsible for providing certain administrative
services to the Fund as well. Those services include providing and supervising
all administrative and clerical personnel who are necessary in order to provide
effective corporate administration for the Fund; compiling and maintaining
records with respect to the Fund's operations; preparing and filing reports
required by the Securities and Exchange Commission; preparing periodic reports
regarding the operations of the Fund for its shareholders; preparing proxy
materials for shareholder meetings; and preparing the registration statements
required by Federal and state securities laws for the sale of the Fund's shares.
The Manager also provides the Fund with office space, facilities and equipment.
35 | OPPENHEIMER VALUE FUND
BOARD APPROVAL OF THE FUND'S INVESTMENT
ADVISORY AGREEMENT Unaudited / Continued
- --------------------------------------------------------------------------------
QUALITY OF SERVICES. The Board also considered the quality of the services
provided and the quality of the Manager's resources that are available to the
Fund. The Board took account of the fact 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 has received regarding the experience and
professional qualifications of the Manager's personnel and the size and
functions of its staff. In its evaluation of the quality of the portfolio
management services provided, the Board considered the experience of Chris Leavy
and the Manager's Value investment team and analysts. The Board members also
considered their experiences with the Manager and its officers and other
personnel through their service on the boards of the Fund and other funds
advised by the Manager. The Board considered information regarding the quality
of services provided by affiliates of the Manager, which its members have become
knowledgeable about in connection with the renewal of the Fund's service
agreements. In light of the foregoing, the Board concluded that the Fund
benefits from the services provided under the Agreement and from the Manager's
experience, reputation, personnel, operations, and resources.
INVESTMENT PERFORMANCE OF THE MANAGER AND THE FUND. During the year, the
Manager provided information on the investment performance of the Fund and the
Manager at each Board meeting, including comparative performance information.
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 retail front-end load and no-load
large-cap value funds advised by the Manager and by other investment advisers.
The Board noted that the Fund's one-year and ten-year performance were below its
peer group median. However its three-year and five-year performance were better
than its peer group median.
MANAGEMENT FEES AND EXPENSES. The Board reviewed the fees paid to the
Manager and its affiliates and the other expenses borne by the Fund. The Board
also evaluated the comparability of the fees charged and the services provided
to the Fund to the fees and services for other clients or accounts advised by
the Manager. The independent consultant provided comparative data in regard to
the fees and expenses of the Fund, other large-cap value funds and other funds
with comparable asset levels and distribution features. The Board noted that the
Fund's contractual and actual management fees and total expenses are lower than
its peer group median.
36 | OPPENHEIMER VALUE FUND
ECONOMIES OF SCALE. The Board reviewed the extent to which the Manager may
realize economies of scale in managing and supporting the Fund, the extent to
which those economies of scale benefit the Fund's shareholders and the current
level of Fund assets in relation to the Fund's breakpoint schedule for its
management fees. The Board also noted the Fund's breakpoints, which are intended
to share economies of scale that may exist as the Fund grows with its
shareholders.
BENEFITS TO THE MANAGER. The Board considered information regarding the
Manager's costs in serving as the Fund's investment adviser, including the costs
associated with the personnel and systems necessary to manage the Fund, and
information regarding the Manager's profitability from its relationship with the
Fund. 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 to considering the profits
realized by the Manager, the Board considered information regarding the direct
and indirect benefits the Manager receives as a result of its relationship with
the Fund, including compensation paid to the Manager's affiliates for services
provided and research provided to the Manager in connection with permissible
brokerage arrangements (soft dollar arrangements).
CONCLUSIONS. These factors were also considered by the independent
Directors meeting separately from the full Board, assisted by experienced
counsel to the Fund and the independent Directors. Fund counsel is independent
of the Manager within the meaning and intent of the Securities and Exchange
Commission Rules.
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 are a benefit to the Fund and in the best interest of the
Fund's shareholders and that the amount and structure of the compensation
received by the Manager and its affiliates are reasonable in relation to the
services provided. Accordingly, the Board elected to continue the Agreement for
another year. In arriving at this decision, the Board did not single out any
factor or factors as being more important than others, but considered all of the
factors together. The Board judged the terms and conditions of the Agreement,
including the management fee, in light of all of the surrounding circumstances.
37 | OPPENHEIMER 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 04/30/2007, 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 Series Fund, Inc.
By: /s/ John V. Murphy
---------------------------
John V. Murphy
Principal Executive Officer
Date: 06/12/2007
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: 06/12/2007
By: /s/ Brian W. Wixted
---------------------------
Brian W. Wixted
Principal Financial Officer
Date: 06/12/2007